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) January 12, 2016
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 1-15827 | 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. |
Senior executives of Visteon Corporation (the “Company”) are expected to make a presentation on January 12, 2016 to investors and security analysts at Deutsche Bank’s 2016 Global Auto Industry Conference in Detroit, Mich., which will include a discussion of the Company’s strategy, financial profile and related matters, including certain financial information. 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 2016 Global Auto Industry Conference to be held on January 12, 2016. | |
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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: January 12, 2016 | By: | /s/ Jeffrey M. Stafeil | ||||
| Jeffrey M. Stafeil | ||||||
| Executive Vice President | ||||||
| and Chief Financial Officer | ||||||
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EXHIBIT INDEX
| Exhibit |
Description |
Page | ||
| 99.1 | Presentation slides from the Company’s webcast presentation at the 2016 Global Auto Industry Conference to be held on January 12, 2016. | |||
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January 2016 Visteon Corporation Deutsche Bank Global Auto Industry Conference Exhibit 99.1
Agenda Updates Since the Baird / Barclays Conferences Long-Term Plan and Strategic Imperatives Capital Return Program 2015 and 2016 Full-Year Guidance Page
Updates Since the Baird / Barclays Conferences Received the vast majority of the Korean withholding tax refund relating to the HVCC transaction in early 2016 ~$250 million in total net proceeds Completed $500 Million Accelerated Share Repurchase (ASR) Program During Q4 2015 Increasing 2015 and 2016 Guidance Increasing lifetime backlog Visteon Has Continued to Deliver on Our Commitments Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Page
Increasing 2015 and 2016 Targets Increasing 2015 and 2016 Guidance – 12/31/2015 Backlog of $15.2 Billion, up 8% vs. the Beginning of the Year Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Prior Updated Sales $3.05-$3.10B $3.10B Adj. EBITDA $265-285M $285-295M Adj. FCF $135-165M $180-200M FY 2015 Guidance FY 2016 Guidance Prior Updated Sales $3.2B $3.2B Adj. EBITDA ~9.5% margin $305-335M Adj. FCF N/A $110-150M Lifetime Backlog Over Time 8% Increase (Dollars in Billions) Page
FY 2015 New Business Wins and Rewins Lifetime Revenue $4.3 Average Annual Lifetime Revenue Memo: (Dollars in Billions) Visteon Won $1.35 Billion in New and Rewin Business During 2015 – Equating to $4.3 Billion in Lifetime Revenue Consolidated Wins and Rewins Customer Breakdown (FY 2015) N/A Page Please see appendix for important disclosures regarding “Forward Looking Information“ Excludes ex-JCI business. N/A (1)
Balanced Sales Profile By Product Please see important disclosures regarding “Forward Looking Information“ Diverse Product, Regional and Customer Sales Profile Visteon Electronics 2015E Sales Breakdown By Mfg. Region By Customer Infotainment11% Connectivity & Telematics 7% HUD <1% Page
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. Please see appendix for important disclosures regarding “Forward Looking Information“ Page
Instrument Clusters Head-Up Displays Telematics Cockpit Domain Controllers Information Displays Audio Infotainment Please see appendix for important disclosures regarding “Forward Looking Information“ Broadest Portfolio in the Industry Singularly Focused on Cockpit Electronics Page Audio Information Displays Instrument Clusters Cockpit Domain Controllers Head-Up Displays Infotainment Telematics Electronics
Focused on Three Strategic Imperatives – Strengthen the Core, Move Selectively to Adjacent Products, Deliver Cost Efficiencies Audio Head-Up Displays Information Displays Infotainment Instrument Clusters Telematics Cockpit Domain Controllers (SmartCoreTM) 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 Strengthen the Core Move Selectively to Adjacent Products Deliver Cost Efficiencies Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Page Strategic Imperatives
Offerings Across All Products in Cockpit Electronics Instrument Clusters Telematics Audio Infotainment Information Displays Offerings Across All Products * Do not offer cockpit domain controllers today but have potential to enter the market in the future. Cockpit Domain Controllers * * * Head-Up Displays Please see appendix for important disclosures regarding “Forward Looking Information“ Visteon: One of Two Cockpit Electronics Suppliers with Offerings Across All Products and the Only Pure Play Page
2016 Consumer Electronics Show (CES) More than 1,000 total visitors (mostly pre-scheduled) 37 vehicle manufacturers represented Nearly 500 individual customers 84 investors 25,000 social media impressions 20 media briefings with publications such as Wall Street Journal, Forbes, Washington Post, Reuters, Associated Press, New York Times, Automotive News and Motor Trend Page As of 1/9/16 Visteon is Transforming the Vehicle Cockpit Experience
Examples of Visteon Content at 2016 Detroit Auto Show Page Ford Fusion 4” multi-functional display Chevrolet Cruze Wireless charging Infiniti Q60 Audio auxiliary box Lincoln Continental Reconfigurable cluster Hyundai 2016 Ioniq (AE) Cluster Please see appendix for important disclosures regarding “Forward Looking Information“ Kia 2016 Niro(DE) Cluster
Strategy Recap Page Strengthen the Core Move Selectively to Adjacent Products Drive to 12% Adjusted EBITDA Margins Sales Progression (Dollars in Billions) Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Drive to 12% EBITDA Margin 7% CAGR (2015-2020) 9% CAGR (2018-2020)
January 2016 Capital Return Update
Capital Return Update Announced $1.75 Billion Special Cash Distribution to Shareholders Visteon’s board of directors declared a special cash distribution in the amount of $43.40 per share on Dec. 10, 2015 Record date of Jan. 15, 2016 Expected ex-dividend date of Jan. 25, 2016 (as set by the NYSE) (1) Expected to be treated primarily as a return of capital for U.S. federal income tax purposes. Anticipate that less than $250 million of the distribution will be characterized as a dividend Authorized $500 Million Additional Share Repurchase Program The board authorized a share repurchase program of up to $500 million through Dec. 31, 2016 Since HVCC Closing Last June, We Have Returned / Committed to Return $2.25 Billion and Authorized Another $500 Million for Share Repurchases Please see appendix for important disclosures regarding “Forward Looking Information“ (1) Shareholders of record on the record date, who sell their shares prior to the ex-dividend date, are not entitled to the special cash distribution. (2) Additionally, Visteon has already completed $500 million ASR program as of December 31, 2015. Page
Share Repurchase History Since the fourth quarter of 2012, we have repurchased 14.8 million shares at an average price of $87.65 Share Repurchase History Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Page We Have Repurchased 14.8 Million Shares for Approximately $1.3 Billion – We Have Authorized an Additional $500 Million Program Through the End of 2016 Launch Date Shares Repurchased Settlement Price Amount Q4 2012 1.0M $49.72 $50M March 2013 2.2M $56.58 $125M August 2013 1.7M $74.54 $125M May 2014 5.2M $96.72 $500M June 2015 4.8M $104.79 $500M Total 14.8M $87.65 $1,300M
Capital Structure Even after a $2.75 billion capital return and spending another ~$275 million in 2015 and 2016 on legacy disposals and reorganization, Visteon retains a substantial net cash position versus our peer group Visteon is in a Net Cash Position vs. a Net Debt Position for Key Competitors – Opportunity for Additional Share Buybacks and Selective Acquisitions Going Forward Note:Competitor leverage statistics as of 9/30/2015, except for Continental AG and Valeo which are based on 6/30/2015. (per Capital IQ). Visteon Net Cash 9/30/15 Cash and ST Investments $2,920 Berlin Transaction (1) (180) HVCC IT Separation (45) HVCC India (50) Korea W/H Tax Refund 250 Visteon Capital Return (2,250) Adjusted Cash $645 9/30/15 Debt 382 Adjusted Net Cash $263 Visteon Leverage LTM Adjusted EBITDA (2) $269 Debt / EBITDA 1.4x (Net Cash) / EBITDA (1.0x) Transaction fully hedged. Excludes $9 million of Adjusted EBITDA related to the Other product group. (Dollars in Millions) Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Page $141 paid in Q4 2015 Received in early 2016
January 2016 2015 Financial Update
2015 Financial Update Expect strong full-year 2015 financial results We are increasing 2015 Guidance for Adjusted EBITDA and Adjusted Free Cash Flow to reflect strong operational performance during the fourth quarter We are also increasing lifetime backlog 12/31/15 backlog of $15.2 billion, up 8% vs. start of 2015 (ex. exchange) FY 2015 Guidance (Electronics and Corporate Only) Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Page FY 2015 Guidance Prior Updated Sales $3.05 - $3.10 B $3.10 B Adjusted EBITDA $265 - 285 M $285 - 295 M Adjusted FCF $135 - 165 M $180 - 200 M Increasing FY 2015 Guidance to Reflect Strong Q4 Results Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information”
Backlog (12/31/2015) (Dollars in Billions) Visteon disclosed new definition of backlog at Q3 earnings conference call Backlog now represents cumulative remaining life-of-program booked sales Visteon Backlog: 9/30/2015: $14.6 billion 12/31/2015: $15.2 billion Lifetime booked sales / 2015E sales = ~4.9x ($15.2 billion / $3.1 billion) 8% Increase Visteon Has Updated its Definition of Backlog to Reflect Total Life-of-Program Sales – Backlog at 12/31/2015 of $15.2 Billion Page Please see appendix for important disclosures regarding “Forward Looking Information“
January 2016 2016 Guidance
2016 Guidance (Electronics and Corporate Only) 2016 Guidance Sales $3.2 B Adjusted EBITDA $305-335 M Adjusted Free Cash Flow $110-150 M Other Selected Items: 2016 Guidance Depreciation and Amortization $90 M Tax Expense $65 M Restructuring Expense $20-30 M Capital Spending $80-90 M 2016 Sales and Adjusted EBITDA Guidance of $3.2 Billion and ~$320 Million, Respectively Page Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information”
Adjusted EBITDA: 2016 vs. 2015 Guidance 2016 sales are projected to increase by $100 million year-over-year Increased volumes and new business partially offset by unfavorable currency and customer pricing 2016 Adjusted EBITDA projected to increase to $320 million, or 10% of sales vs. 9.4% in 2015 Increase largely reflects improved performance, driven by SG&A and engineering cost efficiencies Currency is a partial offset Volume / Mix expected to have a minimal impact as the benefit of higher volumes is offset by the phase out of certain non-core business (which requires low levels of engineering – e.g. clocks) Adjusted EBITDA (Mid-point) Sales Commentary 9.4% 10.0% Page Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” (Dollars in Millions)
Adjusted Free Cash Flow: 2016 vs. 2015 Guidance (Dollars in Millions) Specific Items Benefiting 2015 Cash Flow Capitalized Engineering ($10) Tax Refunds Related to Previous Years (15) Subtotal ($25) 2016 Budget Adjusted Free Cash Flow of $130 Million is $60 Million Lower than 2015 – Largely Reflecting Timing-Related Items Page Please see appendix for important disclosures regarding “Forward Looking Information“ and “Use of Non-GAAP Financial Information” Timing Related Items Benefiting 2015 Cash Flow Tax Payments Delayed to 2016 ($20) Warranty Claims (15) Trade Working Capital / Other (20) Subtotal ($55)
January 2016 Closing Thoughts
Page Closing Thoughts 2015 Accomplishments for Continuing Operations Significant year-over-year profit improvement despite unfavorable currency Achieved upper range of targeted synergies related to JCI acquisition Returned $500 million of capital to shareholders Announced $1.75 billion special cash distribution to shareholders and authorized $500 million additional share repurchase program Opportunity to further improve margin and enhance capital structure should drive value in short term Long-term opportunity to drive growth through product focus and customer and geographic expansion Please see appendix for important disclosures regarding “Forward Looking Information“
January 2016 Appendix
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. New business wins, re-wins and backlog 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 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 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, 2014). Forward-Looking Information Page
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-looking non-GAAP financial measures for full-year 2015 and 2016, 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
The Visteon Plan Long-Term Growth Opportunity Short-Term Value Accretion Product Focus & Growth Margin & Cash Flow Improvement Customer & Geographic Extension Capital Structure Transition Strengthen the Core Continue to lead market in next generation cluster, head-up display (“HUD”), connected audio, and display development Enhance infotainment IP around key areas such as media, connectivity, over-the-air software upgrades, advanced cyber security, and artificial intelligence capability Enhance and develop leading telematics control unit (“TCU”) and connectivity solutions Expand product offerings across geographies and customers Increase scale beyond clusters and audio in China Enhance operating leverage by growing size at several large and currently underserved customers Move Selectively to Adjacent Products Deliver on SmartCore program and expand concept to other parts of cockpit and to other customers Drive innovation on next generation safety applications, including V2X/V2V Drive Higher Margins Drive margins to competitor group of 12%+ EBITDA Deliver Cost Efficiencies Achieve 10%+ EBITDA margin (vs. 6.6% in pro forma 2014) SG&A is major focus and ~200bps opp. vs. 2014 PF Engineering spend should be more efficient – 150-200bps opp. vs. 2014 PF Drive Free Cash Flow Drive Adjusted Free Cash Flow improvements Capex of ~2.5% of sales Continue to drive down cash taxes through operational and structural improvements Benefit from EBITDA margin enhancements Focus on minimizing trade working capital and cash taxes as sales grow Optimize Capital Structure Complete remaining $2.25 billion capital return As cash flow improves, stabilize leverage by continuing return of capital to shareholders Complete disposal of legacy businesses Initially, focus M&A on smaller transactions aimed at key technologies Page
Automotive Instrument Cluster Market Global Market Revenue Total market: 2015 $7.0B / 2020 $9.5B / CAGR 6% Page CAGR -7% CAGR 2% CAGR 32% Key Criteria High Full reconfigurable TFT Rich 3D graphics Hybrid gauges + 7”/8” TFT 2.5D or 3D graphics Mid Hybrid gauges + 4” TFT 2D or 2.5D graphics Low Hybrid cluster 2-6 gauges Dot matrix or mono TFT 1-4 gauges Small, segmented LCD 2015 Market Share Source: Visteon 2015 6+6 forecast; IHS July 2015 cluster supplier Main Growth Potential in Mid and High Segments
Automotive Information Display Market Key Criteria High Display behind flat/curved lens Touch screen Optical bonding New display technologies (e.g. OLED) Haptics Entry Poke-through display with or without touch No cover lens Graphics processing optional Global Market Revenue Total market: 2015 $2.5B / 2020 $3.8B / CAGR 9% Page CAGR -15% CAGR 48% Source: Internal analysis based on IHS vehicle forecast and SA report on CID standalone/integrated split 2015 Market Share Premium Segment Driving Innovation in Information Displays
Automotive Head-Up Display Market Key Criteria Augmented Reality W-HUD TFT, laser, or DLP 10°-12°x 3°-5° FOV Luminance 15kcd/m² Electrical tilt W-HUD 4°-10°x 1.5°-3° FOV Luminance 10-15kcd/m² Electrical tilt C-HUD Full color 1.2”, 1.8”, 3.1” TFT 3°-8° x 1.5°-2° FOV Luminance 6-12kcd/m² Kinematics driven combiner Global Market Revenue Total market: 2015 $0.4B / 2020 $1.2B / CAGR 25% Page CAGR 35% CAGR 19% 2015 Market Share Volume Growth in C-HUD while Premium Segment Requires W-HUD
Automotive Audio Market Key Criteria Display Audio 8” color TFT Capacitive touch 2D graphics CarPlay, Android Auto, CarLife Bluetooth, WiFi, USB Audio Low LCD or silver box AM/FM/digital radio USB, Bluetooth Class AB amp Global Market Revenue Total market: 2015 $6.6B / 2020 $8.4B / CAGR 5% Page CAGR -6% CAGR 14% 2015 Market Share Basic Radio Transitioning to Display Audio with Smartphone Integration
Automotive Infotainment Market Key Criteria High 10”-12” color LCD with touch 3D graphic OpenGL Multiple user / multiple HMI High-end embedded navigation USB/Bluetooth/WiFi multimedia Cloud apps Mid 8”-10” color LCD with touch 3D graphics OpenGL Embedded navigation USB/Bluetooth multimedia CarPlay, Android Auto, Carlife FOTA Low 7” color LCD with touch Optional embedded navigation USB/Bluetooth multimedia CarPlay, Android Auto, Carlife FOTA Global Market Revenue Total market: 2015 $11.5B / 2020 $16B / CAGR 7% Page CAGR 7% CAGR 6% CAGR 7% 2015 Market Share Mid and Premium Vehicle Segments Drive Infotainment Growth
Automotive Telematics Market Key Criteria Wireless Gateway Multiple access and wireless connections Data caching/Adv FOTA Adv. Security and Smart IP Routing TCU Cellular / Bluetooth / Wi-Fi Remote vehicle functions FOTA node / remote diagnostics Internet connectivity / IP router eCall Emergency call E-Call / ERA-Glonass GPS/GNSS Stolen vehicle tracking Back up battery Global Market Revenue Total market: 2015 $1.4B / 2020 $4.3B / CAGR 29% Page CAGR 27% CAGR 18% CAGR 242% Data Source : Strategy Analytics Metrix / Modified and Tier 1 Market share forecast 2015 2015 Market Share High Penetration Rate Driving Prices Down Dramatically
Focus on integrating camera-based safety features in IC and infotainment Rear camera, surround view, forward collision warning and lane departure warning New “driver monitoring” feature for drowsiness detection Integration using SmartCore™ architecture offers significant cost-reduction opportunity New cost-effective night vision capability Integrated Vision ADAS HMI is critical for usability of cockpit electronics systems OEM customers asking for innovation in this domain Gesture support and new voice capabilities are critical technologies Improved display technologies and capabilities to reduce visual distraction Next-Gen Human Machine Interface Page Advanced Driver Assistance Systems (“ADAS”) and HMI
2016 Full-Year Vehicle Production Volume Outlook IHS full-year 2016 forecast up 3.2% vs. 2015 Driven by higher volumes in all regions, except for South America Note that Ford volumes globally are expected to be up 2.0% Note: Global vehicle production volumes based on IHS December 2015 forecast. 2016 Expected Volume Growth of 3.2% Versus 2015 Page
As of January 11, 2016. Excludes potential impact of currency hedges. (1) Current Spot Rates Have Moved Since 2016 Budgeted Rates Set in November 2015 – The Net Impact of the Currency Changes Results in Minimal Impact on Visteon 2016E EBITDA 2016 FY Impact of Movements in FX Rates (2) Page 2016 Exchange Rate Assumptions
Adjusted EBITDA (Electronics & Corporate Only) Page 2015 / 2016 Guidance Reconciliation
Free Cash Flow and Adjusted Free Cash Flow (Electronics / Corporate Only) Page 2015 / 2016 Guidance Reconciliation (cont’d)
We expect to incur restructuring / integration cash outflows for Electronics and Corporate of $80 million in 2015 and $65 million in 2016 (all payments relate to expenses that are excluded from Adjusted EBITDA) We also expect to incur $364 million in cash outflows related to former Climate / Interiors product lines Largest payment of $180 million relates to legacy European Interiors facility Other costs include IT costs to facilitate the HVCC transition, costs to purchase the Halla India Electronics facility, labor payments, taxes, professional fees, and other charges In early 2016, we also received the vast majority of a roughly $250 million net cash inflow associated with the successful outcome of Korean withholding tax refund relating to the HVCC transaction Restructuring and Transformation Cash Payments / Tax Recovery (1)Visteon agreed to terms to purchase this facility shortly before closing the HVCC transaction. As Visteon has effective control, it will continue to consolidate its financials but the purchase will take place in 2016. (2) Proceeds of $91 million from the Jinqiao disposition are included in Cash from Investing Activities. Page Restructuring / Integration Update
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