Timothy J. YerdonMay 19, 2016
Citi Car of the Future Symposium
Visteon at a Glance
Page 2
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
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.
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Visteon Sales Balanced Around the GlobeVisteon Sales Balanced Around the Globe
Page 4
2%3%
20%
24%
51%
Global IndustryProduction
Q1 2016 Sales Breakdown
22.9 million units
Asia
Europe
N. America
S. America
Source: IHS Automotive.
Global ProductionGlobal Production Visteon Electronics Q1 2016 Sales BreakdownVisteon Electronics Q1 2016 Sales Breakdown
Asia38%
Europe32%
North America
29%
South America
1% Mazda18%
Nissan8%
Honda 4%Mitsubishi
2%Other Asia
6%Renault
7%JLR5%
PSA3%
Daimler3%
BMW 4%VW 2%
Ford30%
GM8%
• Sales breakdown based on Visteon manufacturing facility region
• Sales breakdown based on OEM headquarter region
$793 Million in Sales
• Sales breakdown based on product
Sales byMfg. Region
Sales byCustomer
Sales byProduct
Instrument Clusters
37%
Information Displays
20%
Infotainment12%
AudioSystems
10%
Telematic Solutions
7%
HUD3%
Other11%
+1.4%
+2.2%
+5.2%
(26.9%)
Q1 2016 Volume
Y/Y Growth
+1.3% Y/Y Increase
+0.6%Other
InstrumentClusters
Head-Up DisplaysTelematics
Cockpit Domain Controllers
InformationDisplays
AudioInfotainment
Singularly Focused on Cockpit Electronics
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One of the Largest Cockpit Electronics Suppliers –and the Only One Focused on Electronics
One of the Largest Cockpit Electronics Suppliers –and the Only One Focused on Electronics
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Key Trends Impacting Auto Electronics
Three Key Trends Expected to Drive Significant Changes in the Automotive IndustryThree Key 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
2020 Cockpit Electronics Total Market Value
Domain ControllerIntegration
Instrument Clusters$7.5B
Instrument Clusters$7.5B
Telematics and Connectivity
$1.4 B
Telematics and Connectivity
$1.4 B
Audio and Infotainment
$17.8 B
Audio and Infotainment
$17.8 B
Information Displays$2.6 B
Information Displays$2.6 B
Head-UpDisplays$0.4 B
Head-UpDisplays$0.4 B
Instrument Clusters$11.9B
Instrument Clusters$11.9B
Telematics and Connectivity
$4.3 B
Telematics and Connectivity
$4.3 B
Audio and Infotainment
$20.0 B
Audio and Infotainment
$20.0 B
Information Displays$4.0 B
Information Displays$4.0 B
Head-UpDisplays$1.76 B
Head-UpDisplays$1.76 B
2015 2020
Strong Global Growth for Automotive Cockpit ElectronicsStrong Global Growth for Automotive Cockpit Electronics
* Source: iHS, Strategy Analytics and Visteon 2016Page 7
Future Connected and Automated Cockpits
Key Enablers for Desired User Experience Connectivity to other vehicles and
infrastructure (V2X) Real-time monitoring of driver for
awareness and HMI Constant connectivity to the cloud Content on the surrounding environment Updated human-machine interface
Electronic Content Required V2X Module Cockpit Vision Processing Secure and Connected
Wireless Gateway Hubs Combiner HUD, Windshield
HUD, Augmented Reality HUD Input (Gesture, Vision, Time of
Flight, Touchpad) Output (Visual Displays
Technologies) Domain Controllers
(Infotainment, HUD, Instrument Cluster)
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Instrument Clusters
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Strengths Visteon is #3 in the market Strong presence in all segments,
including motorcycles Wide range of display technologies and
graphics capabilities
Trends Features for automated driving around
driver awareness and ADAS Simplified user interface with contextual
information Secure Over-the-Air (OTA) software
updates
Head-Up Displays
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Strengths First to market with combiner HUD in
2009 Reusable picture generating unit (PGU)
/ kinematics modules Augmented reality optical solutions
Trends Combiner will be 45% of HUD market
in 2020 Full-color, large image size and high-
resolution Introduction of augmented reality
features
Information Displays
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Strengths Visteon is #1 in the market Designed for high-speed interface
among display, touch sensor and vehicle network
Thin-profile optically bonded flat/curved lens with multi-touch
Trends 20M+ units with optical bonding and
advanced user interfaces by 2020 Curved displays, gesture and haptic
feedback Sleek design, craftsmanship and touch
capability will be keys to consumer appeal
Infotainment
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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
Trends Over-the-Air (OTA) upgrade of all
software Smartphone integration with CarPlay,
Android Auto and Baidu CarLife Integration of ADAS and instrument
cluster
Connected Audio
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Strengths Recognized for quality, speed and
flexibility Superior reception performance Open architectures
Trends Increasing connectivity – smartphone
integration with CarPlay, Android Auto and Baidu CarLife
Multi-modal interfaces Layered security
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Connectivity and Telematics
Strengths Offer a scalable, secure gateway
architecture Support regional telematics service
providers Understand how to connect the cockpit
electronics ecosystem
Trends Integrate telematics, V2X and external
Wi-Fi Multi-access layers (users, dealers,
OEMs, third party) with different privileges
Wi-Fi offloading
SmartCoreTM
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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
Value Proposition Platform for next-generation
instrument clusters and infotainment systems
Integrates traditional driver information, infotainment, ADAS and connectivity with seamless human machine interaction
* Source: Roland Berger Consolidation in Vehicle Electronic Architectures, July 2015.
1. Infotainment2. Instrument Cluster3. Head-Up Display (HUD)4. Advanced Driver Assistance
Systems (ADAS)
Four Separate Domains
1 23 4
Auto China 2016 – Beijing
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Driving Growth in China – 40 Vehicle Manufacturers, 780 OEM CustomersDriving Growth in China – 40 Vehicle Manufacturers, 780 OEM Customers
Bulgaria Software Expansion
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Growing to 850 Employees in 2016 – Meeting the Demand for Increasing Software ContentGrowing to 850 Employees in 2016 – Meeting the Demand for Increasing Software Content
Our Road to the Future
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• Audio• Head-Up Displays• Information Displays• Infotainment• Instrument Clusters• Telematics
• Cockpit DomainControllers (SmartCoreTM)
• Next Generation Safety Applications (e.g. V2X / V2V)
• Vehicle Cyber Security
• Drive Margin Improvement• Achieve SG&A and
Engineering Efficiencies• Improve Free Cash Flow• Optimize Capital Structure
Strengthenthe Core
Move Selectively to Adjacent Products
Deliver CostEfficiencies
www.visteon.com
Visteon Q1 2016 China Domestic Sales
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6.1 6.3 $63
$71
Q1 2015 Q1 2016 Q1 2015 Q1 2016
Q1 2016 China Production Volumes vs. Visteon China Domestic SalesQ1 2016 China Production Volumes vs. Visteon China Domestic Sales
Visteon China Domestic
Sales
China Production Volumes (1)
Visteon’s China Domestic Sales Increased 13%, Outpacing Industry Volume Growth of 4% -Excluding Currency, Visteon’s Volume and New Business Growth Net of Pricing was 17%
Visteon’s China Domestic Sales Increased 13%, Outpacing Industry Volume Growth of 4% -Excluding Currency, Visteon’s Volume and New Business Growth Net of Pricing was 17%
Visteon China Domestic Sales Visteon China domestic sales increased by
13% Y/Y, outpacing the increase in China light vehicle production volumes of 4%– Excluding currency, sales increased 17%
The impact of incremental new business outpaced unfavorable currency and pricing productivity
Visteon China Export Sales (Not Shown on Slide) Visteon China export sales totaled $100 million
in Q1 2016 – Export sales increased by 6% Y/Y (2)
(1) Source: IHS Automotive, April 2016 Forecast. Represents Greater China light vehicle production. (2) 6% increase excludes the impact of intra-company impacts, including transfer pricing.
(Dollars and Production Volumes in Millions)
Visteon Q1 Sales Growth – Global and China
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(Dollars and Production Volumes in Millions)
22.6
22.9
$781
$793
Q1 2015 Q1 2016 Q1 2015 Q1 2016
Global ElectronicsGlobal Electronics
Visteon Electronics
Sales
Global Production
Volumes
Visteon Q1 Electronics Sales up 1.5% Y/Y Compared to 1.3% Global Vehicle Production Growth; China Domestic Sales Up 13% vs. 4% China Vehicle Production Growth
Visteon Q1 Electronics Sales up 1.5% Y/Y Compared to 1.3% Global Vehicle Production Growth; China Domestic Sales Up 13% vs. 4% China Vehicle Production Growth
ChinaChina
6.1 6.3 $63
$71
Q1 2015 Q1 2016 Q1 2015 Q1 2016
Visteon China Domestic
Sales
China Production Volumes (1)
(1) Source: IHS Automotive, April 2016 Forecast. Represents Greater China light vehicle production.
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