UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 22, 2014
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 001-15827 | 38-3519512 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| One Village Center Drive, Van Buren Township, Michigan | 48111 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code (800)-VISTEON
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
SECTION 2 – FINANCIAL INFORMATION
| Item 2.02. | Results of Operations and Financial Condition. |
A senior executive of Visteon Corporation (the “Company”) is expected to make a presentation on September 22, 2014 to investors and security analysts at the Citi Global Industrials Conference in Boston, Mass., which will include a discussion of the Company’s strategy, financial profile and related matters. In connection with such presentation, the Company is making available the presentation slides attached hereto as Exhibit 99.1, which are incorporated herein by reference.
The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SECTION 7 – REGULATION FD
| Item 7.01. | Regulation FD Disclosure. |
See “Item 2.02. Results of Operations and Financial Condition” above.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
| Item 9.01. | Financial Statements and Exhibits. |
| Exhibit |
Description | |
| 99.1 | Presentation slides from the Company’s webcast presentation at the Citi Global Industrials Conference in Boston, Mass. to be held on September 22, 2014. | |
- 2 -
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VISTEON CORPORATION | ||||||
| Date: September 22, 2014 | By: | /s/ Peter M. Ziparo | ||||
| Peter M. Ziparo | ||||||
| Vice President and General Counsel | ||||||
- 3 -
EXHIBIT INDEX
| Exhibit |
Description |
Page | ||
| 99.1 | Presentation slides from the Company’s webcast presentation at the Citi Global Industrials Conference in Boston, Mass. to be held on September 22, 2014. | |||
- 4 -
 Strictly Private and Confidential
September 2014
Citi Global Industrials Conference
Exhibit 99.1 |
 Page 2
Recent Highlights
Solid Second-Quarter 2014 Financial Results
(1)
–
Sales
of
$2.0
billion
($1.8
billion
ex.
discontinued
operations,
up
11%
vs.
Q2
2013)
–
Adjusted
EBITDA
of
$193
million;
highest
quarterly
Adjusted
EBITDA
in
Visteon’s
history
(2)
$175 million excluding discontinued operations
–
Adjusted net income of $81 million; Adjusted EPS of $1.71
–
Adjusted
free
cash
flow
of
($18)
million;
includes
an
outflow
of
~$90
million
related
to
calendar-driven
payment
delays
which
positively
impacted
the
first
quarter.
YTD
adjusted
free
cash
flow
is
$46
million
Strong Balance Sheet at June 30, 2014
–
Cash of $1.4 billion (up $417 million Y/Y)
–
Debt of $960 million ($161 million higher Y/Y); Debt / LTM EBITDA of 1.5x
Please see appendix for important disclosures regarding “Forward
Looking
Information“
and
“Use
of
Non-GAAP
Financial
Information”
(1)
Includes
amounts
associated
with
discontinued
operations,
unless
otherwise
noted.
(2)
Based on Adjusted EBITDA, excluding equity income and non-controlling
interests. Creating Value for Shareholders
2014 Guidance
Closed acquisition of JCI Electronics on July 1
Reached agreement to sell majority of Interiors
business
Closed acquisition of Thermal & Emissions
division of Cooper Standard
Agreed to purchase group annuity contract
transferring ~one-third of U.S. pension liability
Preliminary 2015 and 2017 Guidance
2015: Sales of $8.6B and Adj. EBITDA of $800M,
up 13% and 16% Y/Y, respectively
2017: Sales of ~$10B and Adj. EBITDA of ~$1B
2014 midpoint sales of $7.6B
2014 midpoint Adjusted EBITDA of $715M
including disc. ops. and $690M ex. disc. ops. |
 Visteon Regional Sales Well-Positioned with Global Vehicle Production
Page 3
Second-Quarter 2014 Sales Breakdown
21.9 Million Units
Asia
Europe
N. America
S. America
Source: IHS Automotive.
14%
U.S.
Q2 2014 Global Production
Visteon Q2 2014 Sales by Region
Asia
Europe
N. America
S. America
6%
U.S.
5%
U.S.
(1)
Adjusted to include full quarter of JCI Electronics sales.
(1)
$1.8 Billion
(Reported)
$2.1 Billion
(Including JCI)
4%
20%
24%
52%
Global Industry Production
3%
3%
19%
20%
27%
30%
51%
47%
Visteon Sales
Visteon Sales |
 Page 4
Visteon completed the acquisition of the electronics business of
Johnson Controls
(JCI) on July 1
–
Business acquired provides automakers with advanced driver information,
infotainment, connectivity and body electronics products
–
Adds approximately 5,000 new employees across 20 countries, including 1,400
engineers, electronics specialists and designers in Europe, Asia
and N America
Creates one of the world's three largest suppliers of vehicle cockpit
electronics –
Market-leading, innovative technologies and products
–
Diversified regional and customer footprint
–
Global scale / cost efficiency to support new complex global programs
–
Visteon in top tier of companies accelerating connected car technology
Acquired business earned $1.3 billion in sales and $58 million in EBITDA for year
ended September 30, 2013
–
Standalone EBITDA margin of 4.5%
–
2014-2017 expected annual growth of ~3%
Update: JCI Electronics Acquisition
Please see important disclosures regarding “Forward Looking
Information“
and “Use of Non-GAAP Financial Information”
Completed the JCI Electronics Transaction on July 1, 2014
|
 Page 5
The New Visteon
Please
see
important
disclosures
regarding
“Forward
Looking
Information“
and
“Use
of
Non-GAAP
Financial
Information”
Contribute Climate business to
Halla, create HVCC
Increased value of HVCC
ownership
Sell Interiors business
Address Electronics’
strategy
and market position
Monetize YFV, over time….and
at right value
Rightsize corporate functions in
response to actions above
Contributed $800 million toward
share repurchases ($375 million
of additional authorization
remains)
Strengthen balance sheet
–
Pension actions
–
Debt refinancing
2012 Strategic Plan
The New Visteon
Two world-class, high-growth / margin
businesses
Industry-leading technologies and market
positions
Strong balance sheet with net cash position
Committed to driving shareholder value
Visteon is a Dynamic Global Organization Focused on Two Market-Leading
Businesses: Thermal Management and Automotive Cockpit Electronics
World’s #2
automotive
climate company
7% global sales
CAGR from
2013-2017
12%+ Adjusted
EBITDA margins
by 2017
World’s #3 provider
of cockpit electronics
8% annualized
growth in adjusted
sales from 2014-
2017
(2)
–
Visteon: 10%
–
JCI: 3%
Targeting 10%+
Adjusted EBITDA
margins by 2017
Announced
Ongoing
Integrate JCI Electronics
Finalize sale of majority of
Interiors
(1)
Continue to diversify
HVCC customer base
Continue to decentralize
admin functions
2014 Actions
(1)
Represents majority of Interiors business, excluding one European legacy
plant. (2)
CAGR based on 2014 sales adjusted for full-year of JCI Electronics.
Climate
Electronics |
 Visteon’s Two Businesses
Page 6
Halla Visteon Climate Control
majority-owned by Visteon and the world’s
second largest global supplier of automotive
thermal energy management solutions.
Visteon Electronics
one of the world’s top three electronics supplier of
connectivity, infotainment, driver information and
controls products to the global auto industry.
2013 Sales
$4.9B
2013 Sales
$3.0B
(1)
2013 sales, pro forma for full year of JCI Electronics ($1.3 billion) and YFVE
($330 million, $66 million which was already included in 2013 reported sales).
(2)
Comprises HVCC sales as well as non-Halla climate-related operations owned
by Visteon. Visteon owns 70% of HVCC shares. Thermal
Management Electronics
Korea Exchange
(Ticker: 018880)
NYSE (Ticker: VC)
Electronics
2013 Sales: $7.9B
Visteon Comprises Two Separate Businesses –
Thermal Management (HVCC) and Electronics
(2)
(1)
(1) |
 Strictly Private and Confidential
September 2014
Visteon Electronics |
 Page 8
Visteon Electronics Today
#3 provider of cockpit electronics in the world
#2 driver information supplier globally
Balanced Asian, Americas and European footprint
Broad customer profile that includes everything from entry-level vehicles to
high- end German luxury vehicles
Offerings across all major cockpit electronics product lines
Balanced global manufacturing and R&D footprint
Market-leading size and scale of R&D / engineering resources
JCI, YFVE and Base Visteon Electronics Come Together to Create a
World-class
Cockpit Electronics Ecosystems Enterprise with More than $3 Billion in Annual
Sales |
 Page 9
Visteon Today: The #3 Global Electronics Player
Source: IHS Automotive and Visteon estimates.
Post JCI
Please see important disclosures regarding “Forward Looking
Information“ Cockpit Electronics Market Share
Visteon is the #3 Provider of Cockpit Electronics in the World
Others
30%
Pioneer 4%
Bosch 4%
Delphi 5%
Panasonic 5%
Alpine
7%
Harman
8%
Visteon
10%
0%
Denso
10%
Conti
17% |
 Page 10
Visteon Today: Diversified Sales Footprint
By Product
By Region
By Customer
Please see important disclosures regarding “Forward Looking
Information“ Diverse Product, Regional and Customer Sales Profile
Visteon Electronics 2013 Sales Breakdown (Adjusted to Include
JCI) SA
3%
EU
37%
NA
31%
AP
29%
Instrument
Clusters &
Displays
55%
Audio &
Infotainment
26%
Controls
6%
Vehicle
Electronics
13%
Other
11%
Daimler 3%
VW 3%
JLR 3%
Mercedes 4%
Mazda 4%
GM/SGM 5%
PSA 6%
Honda 7%
BMW
8%
Nissan /
Renault
11%
Ford
35% |
 Page 11
Visteon Today: Innovative Technologies / Products
In-Vehicle
Wireless Charging
OpenAir ™
Infotainment
Head Units
Instrument
Clusters
Visteon is Recognized as a Thought and Innovation Leader in the Electronics
Space LightScape ™
Connectivity
Gateway
Rear-Seat
Entertainment Displays
Head-up
Displays
Body Control
Modules
Please see important disclosures regarding “Forward Looking
Information“ |
 Page 12
Visteon Today: Technologies Acquired with JCI
Please see important disclosures regarding “Forward Looking
Information“ Visteon Fusion
Advanced
Infotainment System
Digital Light Processing
Windshield Head-Up Display
Fusion is the integration of the traditional driver
information, infotainment and connectivity with a
focus on seamless Human-Machine-Interaction or
HMI. The concept is to allow multiple domains to
run side by side on a scalable hardware through
multiple operating systems with extended graphics.
This
product
has
an
industry
first
–
taking
multiple,
independent graphics streams and compositing
them to provide the appropriate level of information
to the driver and passenger.
The advanced infotainment system is in production
with Mazda. It is also generating interest with other
OEMs. This product allows drivers to seamlessly
connect their mobile devices to make and receive
calls, send texts, listen to streaming radio, access
social
media,
and
more
-
all
while
safely
navigating
to their destination. The system can be controlled
using natural language voice recognition, the 8"
capacitive touch display or a commander knob.
This global platform features scalability and cost
efficiencies for virtually any region or application.
The convergence of consumer electronics and
automotive has exacerbated the issue of driver
distraction. The DLP powered windshield head-up
display (HUD) improves safety with a powerful,
bright, clear projected image for optimal viewing of
primary information in a complex driving
environment. This technology, and the HUD
product, is expected to grow from 500,000 units
today to over 10 million units in the next six years.
Value
Fuse Infotainment, Cloud and Driver
Information into a single platform for a higher
integration and a seamless driving experience
Reduce complexity with new system partition
across multiple domains allowing parallel work
streams
Incorporates the value of the connected car -
update, maintain, enhance and control the
system by the cloud ensuring safety / security
Value
Competitive functionality including navigation,
natural language voice recognition, Bluetooth
connectivity, a multimedia suite and more
Ability to provide software and map updates
through the dealer or customer accessible
website
Global platform –
used in every region of the
world where they sell Mazda vehicles
Value
Brighter and clearer images when compared to
traditional, TFT, displays
Integration within the instrument panel and with
the instrument cluster
Increased field of view to allow for larger
images and more content to be displayed |
 Page 13
Please see important disclosures regarding “Forward Looking
Information“ Technology That Has Driven Growth in the Computer and
Handheld Device Industries is Creating a Significant Revenue Opportunity in
the Automotive Market The Automobile
The Mobile Phone
The Tablet
3
The Computer
1
2
4
The Consumer Electronics market
continues to change, with new and
innovative technologies coming to market
rapidly
The automotive market is leveraging these
technologies as well as identifying new
opportunities
–
Significant revenue potential for well-
positioned market players
Automobile becoming the “largest mobile
device a consumer will ever purchase”
Connectivity in the automobile is the
largest opportunity for automotive
electronics suppliers
The Future: New Technologies Will Drive Growth |
 Page 14
The Future: Visteon Electronics Poised to Capitalize
Please
see
important
disclosures
regarding
“Forward
Looking
Information“
World’s #3 provider of cockpit electronics
Diversified regional and customer profile
Offerings across all major cockpit electronics products
Balanced global manufacturing and R&D footprint
Market-leading size and scale of R&D resources
Visteon is Positioned to Be an Essential Partner
to Automakers in the New Era of the Connected Vehicle
Visteon Electronics Sales
(1)
Visteon Electronics Advantage
(1)
Represents reported sales in 2013 and estimated reported sales in 2014 and
2017. 2014 sales of $2.4 billion include half a year of JCI
Electronics sales. $1.5
$2.4
$3.8
2013
2014E
2017E |
 Strictly Private and Confidential
September 2014
Halla-Visteon Climate Control (HVCC)
Strictly Private and Confidential |
 Page 16
Halla-Visteon Climate Control (HVCC)
Please see important disclosures regarding “Forward Looking
Information“ HVCC is the #2 Automotive Climate Company in the World
#2 global auto climate company
One of only two “full-line”
suppliers
Facilities in 20 countries
–
35 manufacturing facilities
–
4 global technical centers
New / expanded facilities in China,
Russia and Brazil
In Q1 2013, Visteon
contributed the majority of its
Climate business to Halla
Climate Control Corporation
for cash
–
$410 million gross
proceeds to Visteon
–
Created Halla Visteon
Climate Control Corp.
Climate |
 Page 17
Page 17
Proven Record of Transaction Integration / Success
HVCC has completed several key acquisitions and integrations in recent years
From 2006-2012, acquired or increased ownership in 11 operations
The HVCC transaction, completed in February 2013, added 10 more operations and
significantly bolstered HVCC’s overall market position to #2 in the
world •
Contributed
$1.5
billion
in
2013
revenue
and
6,100
manufacturing
employees
Halla Sales Progression ($B)
Halla Stock Price Performance
HVCC Has Successfully Integrated 21 Operations Since 2006
$1.4
$2.0
$2.0
$1.8
$2.5
$2.9
$3.2
$4.7
2013
2012
2011
2010
2008
2009
2007
2006
2013
2012
2011
2010
2008
2009
2007
2006
2005
2014
0
10,000
20,000
30,000
40,000
50,000
60,000 |
 Page 18
Solid Performance in 2014
2
nd
Quarter
2014 B/(W)
2013
2013
2014
Sales
$1,247
$1,332
Adj. EBITDA
$136
$147
% Margin
10.9%
11.0%
(Dollars in Millions)
7%
8%
Climate
2
nd
Quarter
2014
Sales
and
Adjusted
EBITDA
up
7%
and
8%,
Respectively –
HVCC Share Price Has Increased 42% in 2014
Financial Results –
Climate PG
(1)
HVCC 2014 Stock Price Performance
10 bps
HVCC
+42%
S&P 500
+8%
Please see appendix for important disclosures regarding “Use of Non-GAAP
Financial Information” (1) Represents total Climate product
group. Includes non-HVCC, legacy plants. |
 Page 19
Robust Growth: 7%+ Sales CAGR for HVCC
(Dollars in Millions)
$680 Million 2014-2016 Backlog Helps Drive 7% Sales CAGR Between 2013 and
2017 Building New Plants
Strong Backlog
Please see appendix for important disclosures regarding “Use of Non-GAAP
Financial Information” Winning New Business
Driving Strong Sales Growth
$680 million backlog (incremental new booked business
net of lost business that will launch during the next three
years) with additional incremental awards won during Q1
2014 that will launch in 2016
$1.2 billion in new
business wins and
rewins awarded in
2013:
–
New Wins:
~$350M
–
Gross Rewins:
~$850M
Location
Region
Launch
Overview
Guadalajara
Mexico
Q1 2014
•
New plant
Jiangsu Province
China
Q1 2014
•
New plant
Atibaia
Brazil
Q2 2014
•
New plant
Chongqing
China
Q3 2014
•
Expansion
Queretaro
Mexico
Q3 2014
•
New plant
Gujarat
India
Q4 2014
•
New plant
Togliatti
Russia
Q2 2015
•
Expansion
Daejeon
S. Korea
Q4 2015
•
Expansion |
 Page 20
Driving Higher Margins
Driving 12%+ Adjusted EBITDA Margins by 2017
Please see appendix for important disclosures regarding “Use of Non-GAAP
Financial Information” 150 bps+ in margin enhancements from
2013 through 2017 (200 bps+ since 2012),
driven by:
–
Leveraging fixed costs on growing sales
–
Reducing dependence on Korea
manufacturing base
–
Launching new products
–
Restructuring underperforming facilities,
including non-HVCC legacy
–
Material and manufacturing efficiencies
–
Further administrative shift to low-cost
countries
–
Note: Exchange rate movements may
positively or negatively impact this target
+
Climate Product Group Adjusted EBITDA Margins
10.0%
10.6%
12.0%
2012
2013
2017E |
 Page 21
HVCC: Positioned for Growth
Please see important disclosures regarding “Forward Looking
Information“ #2 automotive climate company in the world
One of only two “full-line”
suppliers
Customer-focused solutions provider with a worldwide presence
Recognized portfolio of innovative products and technologies
Gaining share in growing markets
$680 million backlog supports 7% global sales CAGR through 2017
Driving 12%+ Adjusted EBITDA margins by 2017
A World-Class Global Technology and Innovation Leader,
with a Strong Track Record of Growth |
 Strictly Private and Confidential
August 2014
Second-Quarter 2014 Results
Strictly Private and Confidential |
 Page 23
2014 Financial Results
Please see appendix for important disclosures regarding “Forward
Looking
Information“
and
“Use
of
Non-GAAP
Financial
Information”
Discontinued Operations:
Beginning in Q2
2014, Visteon began reporting the majority of
the Interiors business as discontinued
operations in our financial statements
–
Prior periods have been recast to conform to
this presentation
–
On an annual basis, reduces Visteon sales
by approximately $1 billion
Other Product Group:
Certain interiors
legacy operations still subject to divestiture or
wind-down activities are reflected as the
“Other”
product group in our segment reporting
Full-Year 2014 Guidance has been updated for
five key items:
–
Discontinued
Operations:
Reflects
majority of Interiors product group
–
Sale
of
Interiors:
Expect
sale
of
business
to close by year-end 2014
–
Acquisition
of
JCI
Electronics:
Will
be
consolidated in Visteon Electronics effective
July 1, 2014
–
Acquisition of Thermal & Emissions
(T&E) Division of Cooper Standard:
Consolidated in Q3 2014
–
Pension
Annuitization:
Elimination
of
amortization gain related to certain pension
assets beginning on August 1, 2014
Q2 2014 results and Full-Year 2014 Guidance include the following items:
Q2 2014 Results
Full-Year 2014 Guidance |
 Page 24
First-Half 2014 Key Financials *
First-Half
2013
2014
Sales
$3,196
$3,500
Adjusted Gross Margin
$313
$374
Adjusted SG&A
$140
$159
Adjusted EBITDA
(Ex. Disc Ops)
$292
$336
Adjusted EBITDA
(Incl. Disc Ops)
$304
$363
Adjusted EPS
$3.43
$2.33
Free Cash Flow
$44
$0
Adjusted Free Cash Flow
$97
$46
(Dollars in Millions)
9.8%
4.4%
10.7%
4.5%
* All items above except Sales are non-GAAP measures. Please see appendix
for definitions and important disclosures regarding “Use of Non-GAAP Financial Information”
9.1%
9.6% |
 Page 25
Climate Summary
(Dollars in Millions)
Adjusted EBITDA (excluding Equity Income / NCI)
$125
$136
$114
$139
$117
$147
Please
see
appendix
for
important
disclosures
regarding
“Forward
Looking
Information“
and
“Use
of
Non-GAAP
Financial
Information”
Q2 and YTD 2014 Climate Adjusted EBITDA Both Increased Year-over-Year,
Despite Unfavorable Currency Impacts of $10 Million and $28 Million, Respectively
– Increase Driven by New Business Wins and $12 Million Customer Settlement
in Q2 2014 Sales
Q2
YTD
2014 Actual
$1,332
$2,600
2013 Actual
1,247
2,475
2014 B/(W) 2013
$85
$125
Key Drivers
Volume / Mix
$70
$131
Currency
28
30
Customer Agreements
12
11
Other Changes
(25)
(47)
Total
$85
$125
Adjusted EBITDA
Q2
YTD
2014 Actual
$147
$264
2013 Actual
136
261
2014 B/(W) 2013
$11
$3
Key Drivers
Volume / Mix
$8
$12
Currency
(10)
(28)
Product Development Costs
-
(1)
Customer Agreements
12
11
Business Equation
1
9
Total
$11
$3
Selected Financial Metrics
Year-over-Year Performance
$1,332
$1,268
$1,265
$1,131
$1,247
$1,228
11.0%
9.2%
11.0%
10.1%
10.9%
10.2%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Sales
Adj. EBITDA Margin (ex. Eq. Inc. / NCI) |
 Page 26
Electronics Summary
(Dollars in Millions)
Adjusted EBITDA (excluding Equity Income / NCI)
$26
$30
$27
$38
$57
$50
Please see appendix for important disclosures regarding “Forward Looking
Information“ and “Use of Non-GAAP Financial
Information” Q2 2014 Electronics Adjusted EBITDA was $50 Million, $20
Million Higher than Q2 2013 –
Year-over-Year Increase Largely Explained by Consolidation of YFVE
Sales
Q2
YTD
2014 Actual
$443
$882
2013 Actual
354
719
2014 B/(W) 2013
$89
$163
Key Drivers
Volume / Mix
$16
$14
YFVE Consolidation
79
166
Currency
2
(2)
Customer Agreements
(1)
(1)
Other Changes
(7)
(14)
Total
$89
$163
Adjusted EBITDA
Q2
YTD
2014 Actual
$50
$107
2013 Actual
30
56
2014 B/(W) 2013
$20
$51
Key Drivers
Volume / Mix
$3
$4
YFVE Consolidation
16
43
Currency
4
6
Product Development Costs
(5)
(4)
Customer Agreements
(1)
(1)
Business Equation
3
3
Total
$20
$51
Selected Financial Metrics
Year-over-Year Performance
Sales
Adj. EBITDA Margin (ex. Eq. Inc. / NCI)
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
$443
$439
$396
$340
$354
$365
7.1%
8.5%
7.9%
9.6%
13.0%
11.3% |
 Page 27
2014 Guidance
Please
see
important
disclosures
regarding
“Forward
Looking
Information“
and
“Use of Non-GAAP Financial Information”
Mid-Point of Guidance
Midpoint
Guidance
Product Sales
$7.6 B
Adjusted EBITDA (ex. Eq Inc / NCI)
Including Discontinued Operations
$715 M
Excluding Discontinued Operations
$690 M
Free Cash Flow
(1)
Free Cash Flow
$0 M
Adjusted Free Cash Flow
(ex. Restructuring and Transaction-Related)
$145 M
Adjusted EPS
Including Discontinued Operations
N/A
Excluding Discontinued Operations
(2)
$3.30
(1) Includes amounts associated with discontinued operations.
(2) Includes estimated purchase accounting impacts related to JCI
Electronics. (3) Discontinued
operations
contributed
$27
million
in
1
half
2014
and
are
expected
to
contribute
$25
million
for
the
full
year.
(3)
st |
 Page 28
Preliminary 2015 Guidance
Please
see
important
disclosures
regarding
“Forward
Looking
Information“
and
“Use of Non-GAAP Financial Information”
2014
Midpoint
Guidance
Preliminary
2015
Guidance
Product Sales
$7.6 B
$8.5-8.7 B
Adjusted EBITDA (ex. Eq Inc / NCI)
Including Discontinued Operations
$715 M
Excluding Discontinued Operations
$690 M
$780-820 M
Preliminary 2015 Adjusted EBITDA Guidance of $780-820 Million
Key Assumptions:
Complete sale of all Interiors operations by year-end 2014
Currency:
–
Korean Won: 1,040
–
Euro: $1.32 |
 Page 29
Preliminary 2015 Guidance vs. 2014 Guidance
$7.6B
$8.6B
2014 Guidance
Volume, Net
New Business,
Currency
and Pricing
2015 Guidance
$0.8B
$0.3B
$715M
$800M
2014 Guidance
2015 Guidance
Add: Volume, Net New Business,
Currency, Net Cost Performance, and
Acquisitions (½
Year of JCI Electronics
and T&E Cooper Standard)
($0.1B)
Remove:
Interiors Operations
That Were Not
Included in Disc Ops
Add: ½
Year
of JCI Electronics and
T&E Cooper Standard
$690M
$115M
($25M)
Remove:
Interiors
Disc Ops
incl.
Disc.
Ops.
ex.
Disc.
Ops
($5M)
Remove:
Interiors Ops
That Were Not
Included in
Disc Ops
Sales
Adjusted EBITDA |
 August 2014
Appendix
Strictly Private and Confidential |
 Page 31
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 uncertainties that
could cause our actual results to differ materially from those expressed in these forward-looking statements,
including, but not limited to:
Caution should be taken not to place undue reliance on our forward-looking
statements, which represent our view only as of the date of this
presentation, and which we assume no obligation to update. The financial results presented herein are preliminary and
unaudited; final financial results will be included in the company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2014. New
business wins and re-wins do not represent firm orders or firm commitments from customers, but are based on various
assumptions, including the timing and duration of product launches, vehicle
productions levels, customer price reductions and currency exchange
rates. conditions within the automotive industry, including (i) the
automotive vehicle production volumes and schedules of our customers, and in
particular Ford's and Hyundai-Kia’s vehicle production volumes, (ii) the financial condition of our customers
and the effects of any restructuring or reorganization plans that may be undertaken
by our customers, including work stoppages at our customers, and (iii)
possible disruptions in the supply of commodities to us or our customers due to financial distress, work
stoppages, natural disasters or civil unrest;
our
ability
to
satisfy
future
capital
and
liquidity
requirements;
including
our
ability
to
access
the
credit
and
capital
markets
at the
times and in the amounts needed and on terms acceptable to us; our ability to
comply with financial and other covenants in our credit agreements; and the
continuation of acceptable supplier payment terms; our ability to execute on
our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated;
our ability to satisfy pension and other post-employment benefit obligations;
our ability to access funds generated by foreign subsidiaries and joint
ventures on a timely and cost effective basis; general
economic
conditions,
including
changes
in
interest
rates
and fuel prices; the timing and expenses related to internal
restructurings, employee reductions, acquisitions or dispositions and the effect of
pension and other post-employment benefit obligations;
increases in raw material and energy costs and our ability to offset or recover
these costs, increases in our warranty, product liability
and
recall
costs
or
the
outcome
of
legal
or
regulatory
proceedings to which we are or may become a party; and
those factors identified in our filings with the SEC (including our Annual Report
on Form 10-K for the fiscal year ended December 31, 2013).
Forward-Looking Information |
 Page 32
Because not all companies use identical calculations, Adjusted Gross Margin,
Adjusted SG&A, Adjusted Equity in Net Income of Non-Consolidated
Affiliates, 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 similarly titled measures of other companies.
In order to provide the forward-looking non-GAAP financial measures for
full-years 2014 and 2015, the Company is providing reconciliations to
the most directly comparable GAAP financial measures on the subsequent
slides. The provision of these comparable GAAP financial measures is
not intended to indicate that the Company is explicitly or implicitly
providing projections on those GAAP financial measures, and actual results for such
measures are likely to vary from those presented. The reconciliations
include all information reasonably available to the Company at the date of
this presentation and the adjustments that management can reasonably
predict. Use of Non-GAAP Financial Information
|
 Page 33
Reconciliation of Non-GAAP Financial Information
Sales
The Company defines Adjusted
Gross Margin as gross margin,
adjusted to eliminate the
impacts of employee
severance, pension
settlements, other non-
operating costs and stock-
based compensation expense.
Adjusted Gross Margin
The Company defines Adjusted
SG&A as SG&A, adjusted to
eliminate the impacts of
employee severance, pension
settlements, other non-
operating costs and stock-
based compensation expense.
Adjusted SG&A
Adjusted Equity in Net Income of Non-Consolidated Affiliates
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Net sales, products
$1,586
$1,610
$1,484
$1,691
$6,371
$1,718
$1,782
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Gross margin
$150
$163
$135
$190
$638
$179
$194
Less:
Employee severance, pension settlements and other
-
-
-
-
-
-
(1)
YFVE inventory step-up
-
-
-
(4)
(4)
-
-
Subtotal
$0
$0
$0
($4)
($4)
$0
($1)
Adjusted gross margin
$150
$163
$135
$194
$642
$179
$195
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
SG&A
$73
$77
$73
$89
$312
$81
$84
Less:
Employee severance, pension settlements and other
-
-
-
-
-
-
-
Stock-based compensation expense
6
4
4
3
17
3
3
Subtotal
$6
$4
$4
$3
$17
$3
$3
Adjusted SG&A
$67
$73
$69
$86
$295
$78
$81
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Equity in Net Income of Non-Consolidated Affiliates
$44
$42
$48
$79
$213
$2
$11
Less: Equity in gains of non-consolidated affiliates
-
-
-
29
29
-
-
Less: Amortization of gains
-
(3)
(1)
(1)
(5)
-
-
Subtotal
$0
($3)
($1)
$28
$24
$0
$0
Adjusted Equity in NI of Non-Consolidated Affiliates
$44
$45
$49
$51
$189
$2
$11 |
 Page 34
Reconciliation of Non-GAAP Financial Information
(cont’d)
Adjusted EBITDA
Free
Cash
Flow
and
Adjusted
Free
Cash
Flow
(1)
(1)
Includes amounts associated with discontinued operations.
2013
2014
2014 FY Guidance
2015 FY Guidance
2017 FY Guidance
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Low-end
High-end
Low-end
High-end
Mid-point
Adjusted EBITDA (ex. Discontinued Operations)
$143
$149
$126
$164
$582
$161
$175
$675
$705
$780
$820
$1,000
Discontinued Operations
(2)
14
2
4
18
9
18
25
25
-
-
-
Adjusted EBITDA (incl. Discontinued Operations)
$141
$163
$128
$168
$600
$170
$193
$700
$730
$780
$820
$1,000
Adjusted equity in net inc. of non-consol. affiliates
(44)
(45)
(49)
(51)
(189)
(2)
(11)
(10)
(10)
(20)
(20)
(25)
14
20
17
30
81
28
26
115
115
130
130
170
1
1
-
2
4
1
(12)
(10)
(10)
-
-
-
Interest expense, net
10
8
9
11
38
8
6
30
30
35
35
45
Provision for income taxes
(3)
39
18
63
117
31
41
135
135
155
155
205
Depreciation and amortization
60
59
60
56
235
60
61
260
260
290
290
315
Restructuring expense
19
2
10
5
36
1
13
30
30
50
50
-
Equity investment gain
-
-
-
(29)
(29)
-
-
-
-
-
-
-
Gain on YFV Transaction
-
-
-
(465)
(465)
-
-
-
-
-
-
-
Other income and expense
11
(3)
5
14
27
6
37
65
65
30
30
-
Other non-operating costs, net
-
3
1
5
9
-
1
25
25
5
5
-
Stock-based compensation expense
6
4
4
3
17
3
3
15
15
15
15
15
(2)
10
10
11
29
15
10
25
25
-
-
-
-
-
-
-
-
-
173
350
350
-
-
-
Net Income (loss) attributable to Visteon
$69
$65
$43
$513
$690
$19
($155)
($330)
($300)
$90
$130
$275
2013
2014
2014 FY Guidance
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Low-end
High-end
Cash from (used by) operating activities
$122
$36
$21
$133
$312
$96
$31
$300
$340
Less: Capital expenditures
63
51
50
105
269
52
75
320
320
Free cash flow
$59
($15)
($29)
$28
$43
$44
($44)
($20)
$20
Reconciliations to Adjusted Free Cash Flow (ex. Restructuring and
Transaction-Related Cash) Free cash flow
$59
($15)
($29)
$28
$43
$44
($44)
($20)
$20
Exclude: Restructuring cash payments
15
11
14
8
48
10
12
95
95
Exclude: Transaction-related cash
21
6
14
100
141
10
14
50
50
Adjusted free cash flow
$95
$2
($1)
$136
$232
$64
($18)
$125
$165
Noncontrolling interests - Continuing Operations Noncontrolling interests -
Discontinued Operations
Discontinued Operations - Non-EBITDA Items Discontinued Operations -
Loss on Interiors Sale |
 Page 35
Reconciliations of Adjusted Net Income, Earnings per Share
and Adjusted Earnings per Share
(1)
The effect of certain common stock equivalents including warrants,
performance-based share units, and stock options were excluded from the computation of weighted-average diluted shares outstanding as inclusion of such items
would be anti-dilutive.
(1)
2013
2014
2014 FY Guidance
(Dollars and Shares in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
Low-end
High-end
Net income (loss) attributable to Visteon
$69
$65
$43
$513
$690
$19
($155)
($330)
($300)
Average shares outstanding, diluted
51.9
50.5
50.4
49.7
51.1
49.6
46.2
47.0
47.0
Earnings per share
$1.33
$1.29
$0.85
$10.32
$13.50
$0.38
($3.35)
($7.02)
($6.38)
Memo: Items Included in Net income (loss) attributable to Visteon
Restructuring expense
(19)
(2)
(10)
(5)
(36)
(1)
(13)
(30)
(30)
Equity investment gains
-
-
-
29
29
-
-
-
-
Gain on YFV Transaction
-
-
-
465
465
-
-
-
-
Accelerated D&A
-
-
-
-
-
-
(3)
(10)
(10)
Other income and expense
(11)
3
(5)
(14)
(27)
(6)
(37)
(65)
(65)
Other non-operating costs, net
-
(4)
(1)
(5)
(10)
-
(1)
(25)
(25)
Taxes related to YFV transaction
-
-
-
(51)
(51)
-
-
-
-
Subtotal
($30)
($3)
($16)
$419
$370
($7)
($54)
($130)
($130)
Discontinued Ops. -
Restructuring / Other Inc. / (Exp.)
(6)
(3)
-
(2)
(11)
(5)
(9)
(15)
(15)
Discontinued Ops. -
Loss on Interiors Sale
-
-
-
-
-
-
(173)
(350)
(350)
Total
($36)
($6)
($16)
$417
$359
($12)
($236)
($495)
($495)
Memo: Discontinued Operations Net Income Build-up
Discontinued Ops. -
Adjusted EBITDA
(2)
14
2
4
18
9
18
25
25
Discontinued Ops. -
D&A / Interest / Taxes / NCI
7
(8)
(10)
(11)
(22)
(11)
11
-
-
Discontinued Ops. -
Adjusted Net Income
$5
$6
($8)
($7)
($4)
($2)
$29
$25
$25
Discontinued Ops. -
Restructuring / Other Inc. / (Exp.)
(6)
(3)
-
(2)
(11)
(5)
(9)
(15)
(15)
Discontinued Ops. -
Loss on Interiors Sale
-
-
-
-
-
-
(173)
(350)
(350)
Discontinued Ops. -
Net Income
($1)
$3
($8)
($9)
($15)
($7)
($153)
($340)
($340)
Memo: Adjusted EPS (Including Discontinued Operations)
Net income (loss) attributable to Visteon
$69
$65
$43
$513
$690
$19
($155)
($330)
($300)
Items in net income (loss) attributable to Visteon
(36)
(6)
(16)
417
359
(12)
(236)
(495)
(495)
Adjusted net income (loss)
$105
$71
$59
$96
$331
$31
$81
$165
$195
Average shares outstanding, diluted
51.9
50.5
50.4
49.7
51.1
49.6
47.5
Adjusted earnings per share (inc. Disc. Ops.)
$2.02
$1.41
$1.17
$1.93
$6.48
$0.63
$1.71
Memo: Adjusted EPS (Excluding Discontinued Operations)
Adjusted net income (loss)
$105
$71
$59
$96
$331
$31
$81
$165
$195
Discontinued Ops. -
Adjusted Net Income
5
6
(8)
(7)
(4)
(2)
29
25
25
Adjusted net income (loss) -
ex. Disc. Ops
$100
$65
$67
$103
$335
$33
$52
$140
$170
Average shares outstanding, diluted
51.9
50.5
50.4
49.7
51.1
49.6
47.5
47.0
47.0
Adjusted earnings per share (ex. Disc. Ops.)
$1.93
$1.29
$1.33
$2.07
$6.56
$0.67
$1.09
$2.98
$3.62 |
 Page 36
Adjusted EPS Year-over-Year
(Dollars and Shares in Millions)
Q1
Q2
2014 Actuals
$0.63
$1.71
2013 Actuals
2.02
1.41
2014 B/(W) Than 2013
($1.39)
$0.30
Impact
Impact
1st Quarter
2nd Quarter
Explanation of Change
On EPS
On EPS
2013
2014
B/(W)
2013
2014
B/(W)
One-time Tax Adjustment
($1.04)
-
$54
-
($54)
-
-
-
Equity In Affiliates
(0.81)
(0.61)
44
2
(42)
42
11
(31)
Non-Controlling Interest
(0.27)
0.14
(15)
(29)
(14)
(21)
(14)
7
YFVE Net Income (ex. NCI)
0.33
0.18
-
17
17
-
9
9
Change in Shares
0.03
0.10
Other
0.37
0.50
Total
($1.39)
$0.30
Adjusted EPS |
 Page 37
Cash Flow / Cash / Debt
(1)
(Dollars in Millions)
(1)
Includes amounts associated with discontinued operations.
Q2
2014
Q2 YTD
2014
Adjusted EBITDA (incl. disc. ops.)
$193
$363
Trade Working Capital
(98)
(75)
Dividends from Non-Consolidated JVs
18
18
Cash Taxes
(45)
(70)
Interest Payments
(18)
(21)
Restructuring / Transaction Payments
(26)
(46)
Other Changes
7
(42)
Cash from Operations
$31
$127
Capital Expenditures
(75)
(127)
Free Cash Flow
($44)
$0
Restructuring
12
22
Transaction-Related Professional Fees
14
24
Memo: Adjusted Free Cash Flow
($18)
$46
6/30/14
Cash ex. HVCC
$1,091
HVCC Cash
334
Total Cash
$1,425
Debt ex. HVCC
651
HVCC Debt
309
Total Debt
$960
Net Cash
$465
Visteon Leverage
LTM Adjusted EBITDA
$659
Debt / Adj. EBITDA
1.5x
Net Debt / Adj. EBITDA
N/M
YTD 2014 Adjusted Free Cash Flow
is $46
Million
–
Net Cash Position of $465 Million
Free Cash Flow
Visteon Cash and Debt |
 Adjusted EBITDA by
Product Group Q2 2014 Product Group Adjusted EBITDA
(Dollars in Millions)
Climate
Electronics
Other
Central / Elims
Total
Sales
$1,332
$443
$32
($25)
$1,782
Adjusted EBITDA Build-up
Adjusted Gross Margin
$135
$64
($4)
-
$195
Adjusted SG&A
(37)
(25)
(1)
(18)
(81)
D&A
49
11
1
-
Adjusted EBITDA (ex. Disc. Ops.)
$147
$50
($4)
($18)
$175
%
11.0%
11.3%
(12.5%)
N/M
9.8%
Discontinued Operations
-
-
-
18
18
Adjusted EBITDA (incl. Disc. Ops.)
$147
$50
($4)
-
$193
61
Page 38 |
 Page 39
Reconciliation of Climate Financial Information
Climate
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
YTD
Product Sales
$1,228
$1,247
$1,131
$1,265
$4,871
$1,268
$1,332
$2,600
Gross Margin
$112
$121
$98
$134
$465
$105
$134
$239
Other Non-Operating
-
-
-
-
-
-
(1)
(1)
Adjusted Gross Margin
$112
$121
$98
$134
$465
$105
$135
$240
% of Sales
9.1%
9.7%
8.7%
10.6%
9.5%
8.3%
10.1%
9.2%
SG&A
Product Line Specific and Allocated SG&A
(36)
(35)
(34)
(41)
(146)
(35)
(37)
(72)
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
Adjusted SG&A
($36)
($35)
($34)
($41)
($146)
($35)
($37)
($72)
Adjusted EBITDA
Adjusted Gross Margin
$112
$121
$98
$134
$465
$105
$135
$240
Adjusted SG&A
(36)
(35)
(34)
(41)
(146)
(35)
(37)
(72)
Exclude D&A
49
50
50
46
195
47
49
96
Adjusted EBITDA (excl. Equity in Affil., NCI)
$125
$136
$114
$139
$514
$117
$147
$264
% of Sales
10.2%
10.9%
10.1%
11.0%
10.6%
9.2%
11.0%
10.2% |
 Page 40
Reconciliation of Electronics Financial Information
Electronics
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
YTD
Product Sales
$365
$354
$340
$396
$1,455
$439
$443
$882
Gross Margin
$37
$41
$37
$45
$160
$73
$64
$137
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
YFVE Inventory Step-Up
-
-
-
(4)
(4)
-
-
-
Adjusted Gross Margin
$37
$41
$37
$49
$164
$73
$64
$137
% of Sales
10.1%
11.6%
10.9%
12.4%
11.3%
16.6%
14.4%
15.5%
SG&A
Product Line Specific and Allocated SG&A
(18)
(18)
(18)
(20)
(74)
(27)
(25)
(52)
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
Adjusted SG&A
($18)
($18)
($18)
($20)
($74)
($27)
($25)
($52)
Adjusted EBITDA
Adjusted Gross Margin
$37
$41
$37
$49
$164
$73
$64
$137
Adjusted SG&A
(18)
(18)
(18)
(20)
(74)
(27)
(25)
(52)
Exclude D&A
7
7
8
9
31
11
11
22
Adjusted EBITDA (excl. Equity in Affil., NCI)
$26
$30
$27
$38
$121
$57
$50
$107
% of Sales
7.1%
8.5%
7.9%
9.6%
8.3%
13.0%
11.3%
12.1% |
 Page 41
Reconciliation of Other Financial Information
Other
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
YTD
Product Sales
$47
$52
$44
$50
$193
$39
$32
$71
Gross Margin
$1
$1
-
$11
$13
$1
($4)
($3)
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
Adjusted Gross Margin
$1
$1
-
$11
$13
$1
($4)
($3)
% of Sales
2.1%
1.9%
0.0%
22.0%
6.7%
2.6%
(12.5%)
(4.2%)
SG&A
Product Line Specific and Allocated SG&A
(4)
(5)
(2)
1
(10)
(2)
(1)
(3)
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
Adjusted SG&A
($4)
($5)
($2)
$1
($10)
($2)
($1)
($3)
Adjusted EBITDA
Adjusted Gross Margin
$1
$1
-
$11
$13
$1
($4)
($3)
Adjusted SG&A
(4)
(5)
(2)
1
(10)
(2)
(1)
(3)
Adjusted D&A
1
1
1
-
3
1
1
2
Adjusted EBITDA (excl. Equity in Affil., NCI)
($2)
($3)
($1)
$12
$6
-
($4)
($4)
% of Sales
(4.3%)
(5.8%)
(2.3%)
24.0%
3.1%
0.0%
(12.5%)
(5.6%) |
 Page 42
Reconciliation of Central (Including Discontinued Ops)
Central (Including Discontinued Operations)
2013
2014
(Dollars in Millions)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1st Qtr
2nd Qtr
YTD
Product Sales
($54)
($43)
($31)
($20)
($148)
($28)
($25)
($53)
Gross Margin
-
-
-
-
-
-
-
-
Adjustments
-
-
-
-
-
-
-
-
Adjusted Gross Margin
-
-
-
-
-
-
-
-
% of Sales
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
SG&A
Product Line Specific and Allocated SG&A
(15)
(19)
(19)
(29)
(82)
(17)
(21)
(38)
Employee Charges / Corp Severance
-
-
-
-
-
-
-
-
Equity Based Incentive Comp
6
4
4
3
17
3
3
6
Adjusted SG&A
($9)
($15)
($15)
($26)
($65)
($14)
($18)
($32)
Adjusted EBITDA
Adjusted Gross Margin
-
-
-
-
-
-
-
-
Adjusted SG&A
(9)
(15)
(15)
(26)
(65)
(14)
(18)
(32)
Exclude D&A
3
1
1
1
6
1
-
1
Adjusted EBITDA (excl. Equity in Affil., NCI)
($6)
($14)
($14)
($25)
($59)
($13)
($18)
($31)
% of Sales
11.1%
32.6%
45.2%
125.0%
39.9%
46.4%
72.0%
58.5%
Discontinued Operations
(2)
14
2
4
18
9
18
27
Adjusted EBITDA (incl. Disc Ops)
($8)
$0
($12)
($21)
($41)
($4)
$0
($4) |
 Page 43
U.S. NOL Overview
U.S. NOL development
–
Pre-emergence NOL of $1.1 billion, of which approximately $120 million can be
used per year beginning in late 2015
–
We anticipate between $100 and $200 million of post-emergence NOLs at the end
of 2014 post the YFV transaction
–
We anticipate the exit of our Interiors business will generate between $150 and
$200 million in additional NOLs
Using Post-Emergence Attributes, Including Foreign Tax Credits, Visteon Could
Shield as Much as $350-$500 Million of Gains Related to a Potential Sale of
HVCC Shares –
In Addition, Visteon Could Shield up to $200 Million of
Additional Gains Related to a Sale of Our Interiors Business
NOLs Excluding Potential NOLS
Related to Interiors Divestiture
U.S. Post-Emergence NOLs ($M)
Low
High
Estimated 12/31/2013 Post-Emergence NOL Balance
$350
$450
YFV Sale Impact
(350)
(350)
Additional NOLs Expected in 2014
100
100
Estimated 12/31/2014 Post-Emergence NOL Balance
$100
$200
Note: Above Balances Exclude Post-Emergence Foreign Tax Credits
Note: Does not include impacts of Interiors divestiture or JCI Electronics
acquisition. |
 Page 44
Second-Quarter 2014 Financial Results –
U.S. GAAP
Second Quarter
(Dollars in Millions)
2013
2014
Product Sales
$1,610
$1,782
Gross Margin
$163
$194
SG&A
$77
$84
Net Income / (Loss)
Attributable to Visteon
$65
($155)
Diluted EPS
$1.29
($3.35)
Cash from Operations
(1)
$36
$31
Capital Expenditures
(1)
$51
$75
(1)
Includes amounts associated with discontinued operations.
|
 www.visteon.com
Page 45 |