Visteon Announces Second Quarter 2024 Results

Visteon Announces Second Quarter 2024 Results

VAN BUREN TOWNSHIP, Mich., July 25, 2024 - Visteon Corporation (NASDAQ: VC) today reported second quarter financial results. Highlights include:

Visteon reported net sales of $1,014 million compared to $983 millionin the second quarter of the prior year. The increase in net sales was primarily due to strong performance of digital cockpit and electrification products, partially offset by lower customer production, and lower customer recoveries resulting from improved semiconductor supply. Visteon's sales outperformed customer vehicle production volumes by 9%.

Gross margin in the second quarter was $147 million, and net income attributable to Visteon was $71 million or $2.54 per diluted share.Adjusted EBITDA, a non-GAAP measure defined below, was a record $136 million in the second quarter, an increase of $46 million compared to the prior year. The increase in adjusted EBITDA reflects the favorable impact of higher volumes and strong operational performance, lower engineering and SG&A costs, and the non-recurrence of a $15 million recall charge in the prior year. Adjusted EBITDA margin was 13.4% of sales, an increase of 420 basis points compared to the prior year.

For the first six months, cash from operations was $126 million, capital expenditures were $68 million and adjusted free cash flow, a non-GAAP measure defined below, was$62 million. The company ended the second quarter with cash of $508 million and debt of $327 million. Our strong balance sheet, with a net cash position of $181 million, will allow us to balance organic investments, selective M&A, and capital returns to shareholders.

Visteon's products launched on 41 vehicle models, diversified across 17 different OEMs, in the first half of the year. A key second quarter launch included a digital cluster for the Toyota Camry in the North American and Japanese markets. We also launched a center information display for the Mazda MX-30 crossover and a digital cluster for the Porsche Macan SUV. Our momentum in Rest of Asia continues, with launches across various Asian customers in key markets in the region.

The company won $3.1 billion of new business in the first half of the year, including nearly $1.8 billion of display wins. Visteon continues to successfully diversify its customer base, with over $1.8 billion of wins with Rest of Asia OEMs in the first half. Second quarter wins included several significant display wins, including a large, curved OLED display for a luxury vehicle platform for a Japanese OEM and a dual display for a SUV for another Japanese OEM. Visteon also won an audio infotainment and dual display system for a SUV with an Indian OEM.

In light of the reduction of customer vehicle production in the second half and ongoing market dynamics in China, Visteon is updating its full-year 2024 guidance and anticipates sales in the range of $3.85 - $3.95 billion, adjusted EBITDA in the range of $455 - $475 million, and maintaining adjusted free cash flow in the range of $155 - $185 million.

^{[1] Excludes Y/Y impact of currency fluctuations}

Conference Call and Presentation

Today, Thursday, July 25, at 9 a.m. ET, the company will host a conference call for the investment community to discuss the quarter's results and other related items. The conference call is available to the general public via a live audio webcast.

The dial-in numbers to participate in the call are:

• U.S./Canada: 1-888-330-2508
• Outside U.S./Canada: 1-240-789-2735
• Conference ID: 8897485

(Call approximately 10 minutes before the start of the conference.)

The conference call and live audio webcast, related presentation materials and other supplemental information will be accessible in the Investors sectionof Visteon's website.

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Use of Non-GAAP Financial Information

Because not all companies use identical calculations, adjusted EBITDA, adjusted net income, adjusted EPS, free cash flow and adjusted free cash flow used throughout this press release 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 2024, the company provides 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 press release and the adjustments that management can reasonably predict.

Forward-looking Information

_{This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. 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:}

_{•continued and future impacts of the geopolitical conflicts and related supply chain disruptions, including but not limited to the conflicts in the Middle East, Russia and East Asia and the possible imposition of sanctions;}

_{•significant or prolonged shortage of critical components from our suppliers, including but not limited to semiconductors, and particularly those who are our sole or primary sources;}

_{•failure of the Company's joint venture partners to comply with contractual obligations or to exert influence or pressure in China;}

_{•conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (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 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;}

_{•disruptions in information technology systems including, but not limited to, system failure, cyber-attack, malicious computer software (malware including ransomware), unauthorized physical or electronic access, or other natural or man-made incidents or disasters;}

_{•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;}

_{•changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, domestic and foreign, that may tax or otherwise increase the cost of, or otherwise affect, the manufacture, licensing, distribution, sale, ownership or use of our products or assets; 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, 2023, as updated by our subsequent filings with the Securities and Exchange Commission).}

_{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 release, 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 fiscal quarter ended June 30, 2024. 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 production levels, customer price reductions and currency exchange rates.}