Slides
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Visteon Q2 2025 Earnings July 24, 2025
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Q2 2025 in Review 2 *Visteon y/y sales growth (ex. FX and net pricing) compared to production for Visteon customers weighted on Visteon sales contribution. $969 Million Net Sales $134 Million Adjusted EBITDA $67 Million Adjusted FCF (1%) Growth-over-Market* 13.8% Margin $361 Million Net Cash Another quarter of strong financial results and progress towards our long-term goals BALANCE SHEET ENABLES FLEXIBLE CAPITAL ALLOCATION CONTINUED OPERATIONAL DISCIPLINE Launched 21 new products and expanded margins STRATEGIC INITIATIVES DRIVING AWARD LEVELS $2.0 billion of new business wins 4% growth-over-market excluding China ROBUST GROWTH OUTSIDE OF BMS AND CHINA Initiated dividend and closed bolt-on acquisition Reinstating and raising full-year financial guidance and initiating quarterly dividend
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Q2 2025 Sales Performance Q2 Y/Y Sales by Region Growth in cockpit electronics partially offsetting declines in BMS and China (Dollars in millions) (4%) Regional Highlights Europe Sales growth driven by recent launches of cockpit electronics on ICE and EVs, and engineering services acquisitions, resulting in GoM of 8%. Americas Strong cockpit electronics growth partially offsetting declines in BMS and driving GoM of (4%). Rest of Asia Traction with targeted growth automakers and two-wheeler customers, resulting in GoM of 8%. China Sequential growth from new launches and SmartCore upgrade with Geely. Lower Y/Y sales from ongoing market dynamics impact Visteon global GoM by (5%). +8% +8% (30%)Growth-over- Market Q2 2024 Q2 2025 3 $364 $328 $203 $119 $330 $341 $214 $84 Americas Europe RoA China
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Q2 2025 New Business Wins Strong start to the year driven by displays and clusters New Business Win HighlightsYTD New Business Wins SmartCore & Infotainment 1H 2024 1H 2025 Displays Clusters Electrification & Other 53% 12% 29% 6% $3.1B $3.9B 4 CV SmartCore Cockpit domain controller for commercial vehicle platforms with European OEM Digital Cluster Digital cluster for mid-size SUV refresh in India with Korean OEM Strong first-half bookings position us to exceed $6 billion full-year target OLED Display Pillar-to-pillar display for new EV/hybrid platform for luxury German OEM 2W Digital Cluster Digital cluster for global 2W platform for Indian and Asian markets with Japanese OEM 2W = two-wheeler
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Q2 2025 New Product Launches New product launches driven by digitalization and adjacent end markets Audi Q3 25” Panoramic Display Key Q2 2025 Model Launches Volvo Mack Trucks Digital Cluster Commercial Vehicle Volvo Construction SmartCore Commercial Vehicle Polestar 5 SmartCore Electric Vehicle Royal Enfield 350 Cluster & Connected Services Two-Wheeler Audi Q3 Multi-Display Module ICE, Hybrid, & EV Electric Vehicle Volvo EX30 SmartCore 5 21 new product launches across 8 OEMs in passenger, commercial, and two-wheeler markets
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Strategy Progress Update Q2 represents another quarter of proof points supporting long-term growth strategy 6 ✓ Launched 5 new display products including new panoramic display for Audi Q3 ✓ Awarded pillar-to-pillar display with luxury European OEM Displays ✓ Secured $350M SmartCore program for commercial vehicle market as OEM expands offerings ✓ Secured $400M digital cluster conquest win with Honda in two-wheeler marketAdjacent Markets ✓ Strengthened and grew partnership with Hyundai in India ✓ Growing business with Honda in global two-wheeler marketTargeted Growth Customers Strategic Pillars Focus on Fast Growing Tech Domains Deep Product Alignment with Trends Platform-Based Product Development Global Best-Cost Product Delivery Balanced Capital Allocation ✓ Progressed on metal alloy frame molding & back-light unit for displays and camera manufacturing insourcing ✓ Completed 3rd acquisition in last 12 months as we expand and enhance technology capabilitiesVertical Integration and M&A
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Market Outlook and Full-Year Visteon Expectations Reinstating and raising full-year 2025 guidance for all three financial metrics 7 Industry Factors Visteon Dynamics Tariff Assumptions Current tariffs continue as is with USMCA compliant parts exempt Update to Outlook Positive currency and contribution from M&A partially offset by BMS EV Incentive Phase-Out Consumer tax credit ends in September; battery manufacturer credits remain Full-Year Growth-over-Market GoM in mid-single-digit, driven by new product launches, offset by BMS and China H1 Performance Strong Q2 and first half performance providing foundation for full-year outlook H2 Customer Production Primarily based on July S&P forecast with customer production down Y/Y Raising midpoint of full-year sales guidance to $3,775M from $3,750M
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Visteon Q2 2025 Financial Results July 24, 2025
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Q2 2025 Financial Review Strong quarter with continued commercial and operational discipline Capital Allocation Completed engineering services acquisition to enhance domain expertise in User Experience and HMI $50 Million Acquisition 9 Sales Drivers Sales driven by product launches and supported by robust demand $969 Million Net Sales Margin Expansion Normalized margins in the mid-12% range after adjusting for nonrecurring items 13.8% Margin Adj. EBITDA Margin Cash Flow Generation Strong cash generation driven by EBITDA performance and working capital inflow $67 Million Adj. FCF Balance Sheet Maintaining strong balance sheet while continuing to execute on balanced capital allocation strategy $361 Million Net Cash
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Q2 2025 Sales & EBITDA Performance Delivered resilient sales performance and expanded margins by 40 bps Sales Adjusted EBITDA +40 bps ($45) (Dollars in millions) Recoveries 13.8% margin 10.9% margin 14.9% margin 13.4% margin 10 $1,014 $969 Q2 2024 Q2 2025 $136 $134 Q2 2024 Q2 2025 13.8% margin Key Performance Drivers Operational Performance Strong operational execution and efficiencies driving continued margin performance Pricing and Recoveries Annual customer pricing slightly below 2% and lower customer recoveries related to semiconductors Customer Production Volumes Global customer production volumes slightly down with reductions in Europe and Americas Normalized Margins Normalized margins of mid-12% when adjusting for nonrecurring items Market Outperformance Growth-over-market of (1%), 4% ex. China, driven by recently launched programs offset by China and BMS sales headwinds 13.4% margin
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Balance Sheet and Adjusted Free Cash Flow Strong cash generation and balance sheet enables opportunities for capital deployment Cash Conversion Conversion ratio remains strong and aligned to full-year target 40% Debt No material debt maturities until 2027 $310M Net Cash Strong balance sheet supports capital deployment $361M (Dollars in millions) H1 2024 H1 2025 Adjusted EBITDA $238 $263 Trade Working Capital (64) 41 Cash Taxes (31) (49) Interest Payments Received 1 4 Other Changes (14) (88) Capital Expenditures (68) (66) Adjusted FCF $62 $105 11 Strong cash generation driven by robust profitability and ongoing capital efficiencies
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Reinstating & Raising 2025 Full-Year Guidance *At the midpoint of guidance and assuming H1 tariff impact remains the same for H2 (Dollars in millions unless otherwise noted) MSD/HSD Growth-over-Market* $3.65B – $3.85B $175M – $205M ~40% Conversion* $450M – $480M 12.4% Margin* Sales Adj. FCF Adj. EBITDA 12 MSD Growth-over-Market* $3.70B – $3.85B $195M – $225M ~43% Conversion* $475M – $505M 13.0% Margin* Prior Revised Key Assumptions ▪ Full-year sales vs. original guidance benefiting from favorable FX impact and recent acquisition, partially offset by lower BMS sales ▪ Customer production aligned with S&P, down low-single- digit year-over-year ▪ Full-year FCF vs. original guidance benefiting from higher adj. EBITDA ▪ Capex of ~$150 million for the full-year ▪ Full-year adj. EBITDA vs. original guidance benefiting from higher sales, H1 nonrecurring items, and ongoing strong operational performance ▪ H2 margins expected to be in low-12% range, in-line with normalized run-rate, adjusting for lower volume
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Balanced Capital Allocation Remain committed to driving shareholder value through balanced capital allocation priorities (Dollars in millions) 13 Key Uses of Cash Since Investor Day* 2025 Capital Allocation Organic Investments Investing $150M in CapEx to support program launches and ongoing product innovation Active M&A Pipeline Closed $50M acquisition of engineering firm in Q2, with healthy acquisition pipeline Initiating quarterly dividend of $0.275/share highlights confidence in long-term cash generation Reactivating share repurchase program reflects commitment to returning capital to shareholders Capital Returns to Shareholders in Q3 M&A Capex Shareholder Returns Debt Repayment Deployed 2023 – 2025 H1 $648M $39 $105 $176 $328 *Uses of cash between 2023 – 2025 H1
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Investment Thesis Visteon continues to be a compelling long-term investment opportunity Innovative Product Portfolio Digital Cockpit Electronics Leader Balanced Capital Allocation Competitive Cost Structure Industry leader in digital clusters and cockpit domain controllers Portfolio of advanced displays supported by vertical integration Integrated EV solutions including BMS and power electronics Digital cockpit leader for cars, trucks, and two-wheelers Supporting industry shift to hybrid and electric vehicles Nimble and adaptable to changing environment Strong cash generation provides flexibility and supports future growth No material near-term debt maturities Balanced capital allocation across capex, M&A, and shareholder returns Optimizing spend through platform-based approach Leveraging industry-leading engineering footprint Commercial and operational discipline Industry-leading cockpit and electrification electronics product portfolio with best-in-class cost structure 14
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Earnings Q&A July 24, 2025
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Appendix July 24, 2025
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Forward-Looking Statements 17 This presentation 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: • uncertainties in U.S. policy regarding trade agreements, tariffs or other international trade policies and any response to such actions by foreign countries; • 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 the 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 undue 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, prohibit 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, 2024, 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, 2025. 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.
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Use of Non-GAAP Financial Information 18 • Because not all companies use identical calculations, Adjusted Gross Margin, Adjusted SG&A, 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-year 2025, 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.
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19 Reconciliation of Non-GAAP Financial Information Adjusted Gross Margin The Company defines Adjusted Gross Margin as gross margin, adjusted to eliminate the impacts of stock -based compensation expense, intangibles amortization and other non-operating costs. Adjusted SG&A The Company defines Adjusted SG&A as SG&A, adjusted to eliminate the impacts of stock -based compensation expense, intangibles amortization and other non-operating costs.
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Reconciliation of Non-GAAP Financial Information (cont’d) 20 Adjusted Net Income and Adjusted EPS • The Company defines Adjusted Net Income as net income / (loss) attributable to Visteon adjusted to eliminate the impact of re structuring and impairment expense, and related tax effects and other gains and losses not reflective of the Company's ongoing operations. • The Company defines Adjusted Earnings Per Share as adjusted net income divided by average diluted shares outstanding.
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Reconciliation of Non-GAAP Financial Information (cont’d) 21 Adjusted EBITDA The Company defines Adjusted EBITDA as net income / (loss) attributable to the Company adjusted to eliminate the impact of de preciation and amortization, restructuring and impairment expense, net interest expense, equity in net (income) / loss of non-consolidated affiliates, provision for (benefit from) income taxes, n et income / (loss) attributable to non-controlling interests, non-cash stock-based compensation expense, and other gains and losses not reflective of the Company's ongoing operations.
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Reconciliation of Non-GAAP Financial Information (cont’d) 22 Free Cash Flow and Adjusted Free Cash Flow • The Company defines Free Cash Flow as cash flow from (for) operating activities less capital expenditures. • The Company defines Adjusted Free Cash Flow as cash flow from (for) operating activities less capital expenditures, as furthe r adjusted for restructuring-related payments.
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Reconciliation of Non-GAAP Financial Information (cont’d) 23 Adjusted EBITDA Build-up
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Net Engineering 24
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Financial Results – U.S. GAAP 25
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26 Investor Relations Upcoming Activity Investor Relations Contact: investor@visteon.com Upcoming Activity UBS Earnings Call Back VirtualJuly JPMorgan Auto Conference NYCAugust Raymond James Conference VirtualAugust Visteon-hosted 101 Teach-In VirtualSeptember Deutsche Bank: IAA Cars Conference MunichSeptember Wolfe Detroit Bus Tour DetroitSeptember