Visteon Investor's
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Visteon Investor’s Day March 12, 2013 1 Agenda – Morning Session Time Agenda Item 9am Arrive at CTC‐Move to CR606 ‐ Visteon Update: Tim Leuliette ‐ YFV Overview: Dan Linder 10:15am Break 10:30am ‐ China Market Overview: Ma ZhenGang ‐ Panel Q&A: Tim Leuliette, Jeff Stafeil, Dan Linder, Ma ZhenGang, Scott Deitz 11:15am Product Showroom and Lab Tour 12:00PM Depart for Lunch ‐ Hongqiao Hilton 2 Agenda – Afternoon Session Time Agenda Item 1:00PM Depart for Songjiang Plant 1:45PM Arrive at Songjiang Plant 2:00PM ‐ YFVE Presentation: Decio Mendao ‐ Q&A 2:30PM Plant Tour 3:00PM Wrap Up/Final Comments: Tim Leuliette 3:30PM Return to Hotel 5:30PM Transport to Dinner Venue 6:00PM Dinner @ Grand Salon 8:30PM Return to Hotel 3 YFV Overview March 12, 2013 4 Yanfeng Visteon History • Joint venture established in 1994 between Ford and SAIC (Shanghai Automotive Industrial Company) – Both companies had a long history in the automotive industry – Ford brought technology and international management practices, while SAIC brought the customer base and local market knowledge – SAIC partnered with VW (1985) and GM (1997) in OEM business • Equity Transferred – Ford transferred equity to Visteon as part of spinoff in 2000 – SAIC transferred equity to HASCO as part of public listing in 2009 • YFV has become one of the largest suppliers in China YFV has a long and unique history with outstanding recognition in China 5 SAIC Organization Structure State Owned: 74% Public: 26% 60.1% OEMs Service & Trade other HASCO •Functional parts •Sales •Interior & exterior trim •Logistics •Electric and Electronics •IT •Hot worked parts •Car Rental •Metal forming & tooling •Financing •New energy SAIC’s Automotive business is well established in China 6 Partnerships are a Key to Success International Partners China OEM Partners DETC Great Partners Create Strong, Successful Relationships 7 YFV Organization • 50:50 JV between Visteon YFJCI 1997 and SAIC (HASCO) 50% Seating “The Parent Company” 50% 50% YFV 2002 • Technology JV’s with 60% Electronics international partners YF Key 2004 • Interior subsidiaries and 50% Safety JV’s with OEM’s to expand outside of Shanghai YFPO 2007 50% Exterior DETC 20% 12.5% 25% 50% 99% 75% 40% 75% 50% 80% 51% 80% 80% 60% 50% YFV YFV Dongfeng YFV YFV YFV YFV YFV YFV YFV YFV Chongqing Beijing Visteon Jinqiao Tooling Hefei Jiqiang Nanjing NJ FEM Zhejiang India 2001 2002 2003 2004 2006 2007 2008 2010 2010 2011 2011 A complex set of JV relationships that have developed over 18 years 8 YFV Organization Depth Shanghai Operations Level 0: Parent Company Headquarters Interiors Technical Center Level 1: Tier 1 YFJCI YFV YF Key YFPO YFV YFV Subsidiaries Seating Electronics Safety Exterior Interiors Tooling 9 Operations 1 Operations 2 Operations 6 Operations 24 Operations Level 2: Tier 2 Subs 28 Operations 6 Operations 8 Operations 7 Operations Level X3: Tier 3 Subs Tier 3’s will be collapsed into Tier 2 3 Operations YFV is both an operating and holding company with many subsidiaries 9 Yanfeng Visteon Electronics Organization • Formed in 1994 at 75:25 JV between Ford and Shanghai 50% 50% Auto Instrumentation Co. • Integrated into YFV in 2002 • Acquisitions in 2004 expanded presence in audio and cluster 40% 60% 长安集 团 一汽集团 29% ChangAn Group FAW Group 100% 82% 100% 58% 70% 65% Technology Co.Shaoxing Betung Songjiang Topower Xuzhou Chongqing Xugang Changchun Xugang 2011 2004 1996 2004 2004 2004 10 Market and Sales Summary Independent Enterprises 6 Big Groups SAIC FAW Dongfeng BAIC Chang’an GAIC Chery BYD Geely Great Wall JAC Volvo Brilliance Hawtai Beiben SVW FAW-VW DPCA BBAC CA Ford GQ Honda Geely 1% Chery 1% Other 9% Hyundai 1% SGM FAW-Car DF Nissan BJ Hyundai GQ Toyota DYK 1% CA Mazda DPCA 2% SVW DF Nissan 3% 33% JAC 2% CAFM 4% SGMW FAW-Toyota DF Honda BAIC CA Suzuki GAC SAC 4% Export 11% SAC Haima DF YD Kia BQ FOTON Chang’an GQ FIAT SGM 28% Total Revenue(2012): RMB 45.3 B FAW Tianjin CA PSA GQ Mitsubishi 11 SAIC Vehicle Companies • SAIC Group is a strong parent to support the growth of HASCO and YFV Largest vehicle producer in China Significant self brand activities 50% 50%50.1% 100% Significant footprint expansion plans 2012 China Vehicle Market Share 2012 China Passenger Car Market by OEM-Group by OEM [1,000] SAIC 23.1% 1,364 1,323 1,280 DongFeng 15.9% FAW 13.7% ChangAn 10.1% 200 BAIC 8.8% 12 Data Source: China Association of Automotive Manufacturers (CAAM) Five Business Systems Interior System Seating System Electronics System Exterior System Safety System • Cockpit • Seats • Driver • Bumpers • Steering Wheels • Instrument Panels • Trim Covers Information • Body Trim • Air Bags • Door Panels • Mechanisms • Entertainment • Rear Closures • Seat Belts • Console • Foam Pads • Center Stack • Fenders Electronics Five Strong Product Lines with Global Technology Partners 13 YFV Product Diversity 2012 Revenue Safety 4% Tool 1% Exterior 6% Electronics Interiors 8% 42% Seating 39% Total Revenue RMB 45.3 Billion (Approximately $7.2 Billion USD and includes Tier 1 Unconsolidated Subsidiaries) 14 YFV Market Position InteriorsSeating Exterior Electronics Safety Instrument Door Steering Panel Panel Seats Bumper Audio Cluster Wheel Airbag YFV Market #1 #1 #1 #1 #1 #3 #1 #3 Position Mobis Magna JCI JJ Mold Hangshen Continental TRW JCI Hanil Ehwa Lear Tongyang Dessay Denso Autoliv Major Competitors CK GSK GSK Mobis Panasonic SDE Takata Faurecia Boshoku Boshoku Hanil Autonet Nippon Seiki TG Strong market positions in all major product lines 15 YFV Global Footprint Russelsheim, Germany Symbol Business System Facilities Michigan, USA Changchun Seating 40 Kalol, India Shenyang Beijing Interiors 36 Baotou Dalian Langfang Baoding Yantai Exteriors 14 Xuzhou Yancheng Zhengzhou Yizheng Electronics 7 Nanjing Nantong Shi‘yan Hefei Shanghai Wuhu Ningbo Safety 2 Wuhan Hangzhou Cixi Chongqing Shaoxing Chengdu Tooling 1 Changsha Taizhou Zhuzhou Fuzhou Total 100 Liuzhou Guangzhou Dongguan Extensive Footprint: 100 Facilities with 30,000 Employees 16 YFV Technical Centers Interior System Seating System Electronics System Exterior System Safety System • Full Service Supplier • Globally Integrated • Full Design and • Structure Design • R&D / Product (from Styling to Production) Technical Centers Engineering Capability • CAE Verification Engineering • System Integration • Safety Testing • Advanced Application • New tech center • Crash Simulation Software • World Class Testing • Acoustic and NVH under construction • Lifecycle Testing Facilities Testing • World Class Testing Facilities 740 Employees 500 Employees 500 Employees 270 Employees 180 Employees Technical Centers Provide Superior Capability and Value to Customer 17 YFV Revenue Growth Total Revenue RMB in Billions $7.2B 27% Compound Annual Growth Rate Successful Partnerships and Products Fuel Strong Growth 18 Employee Engagement Employee engagement and development has been key to YFV’s growth 19 Customer Recognition 2012 Excellent Innovation Gold Award 2012 Best Quality Award / Excellent Development Award 2012 Excellent Supplier Award 2012 Best Quality Award 2012 Excellent Supplier Award 2012 Excellent Supplier Award 2012 Best Partner Award 2012 Excellent Supplier Award 2012 Excellent Production Line Award 2012 Excellent Supplier Award 2012 Best Supplier Award 20 YFV Strategic Initiatives • Expand domestic footprint to support growth of core customers • Expand customer base with local China OEMs. Continued diversification with select Chinese (and Japanese) OEMs. • Support OEM’s growth plans in China and abroad via cooperation with our business partners • Strengthen technical capability in all business segments; enhance tooling and equipment as a competitive advantage • Continue focus on development of new employees and YFV culture Maintain Domestic Leadership while expanding footprint outside of China 21 YFV Going Forward – Market Outlook Passenger Car Sales Key Customer Sales Unit (000) Unit (000) 21675 20108 Customer 2012 2017 18229 16347 14643 SGM 1,364 1,919 13239 SVW 1,280 1,940 CFA (Ford) 419 771 CMA (Mazda) 68 246 SAIC 200 425 Total 2,918 5301 2012 2013F 2014F 2015F 2016F 2017F • China OEM’s average share @ 33% • SVW and SGM in the top 3 market position through 2017. • Passenger vehicles average 69% of total market • CMA and SAIC more than doubling sales by 2017 • More stable year over year growth • CFA improved market position Source: CAAM, YFV 5 year volume forecast 2013Q1 version Source: IHS China Feb13 22 SGM and SVW Expansion 新疆 沈阳 Xinjiang Shenyang 烟台 Yantai 仪征 Yizheng 上海 武汉 上海 南京 Wuhan Nanjing Shanghai Shanghai 宁波 Ningbo SGM and SVW adding new manufacturing bases and expanding existing plants 23 9 SAIC and Ford Expansion 南京 南京 Nanjing 临港 Nanjing Lingang 重庆 Chongqing 杭州 Hangzhou Ford and SAIC to add capacity at existing facilities, new facility for Ford 24 YFV Footprint Growth 2012 ~2014 Changchun Shenyang Beijing Yantai Yancheng Wuhan Nantong Yizheng Chongqing Liudong Nanjing Ningbo Interiors Dongguan Seating Exteriors Songjiang Electronics Kangqiao Safety Anting Summary • YFV is one of the largest and most successful automotive suppliers in China • Strong customer relationships with market leading OEMs will continue to fuel the growth of the company • Strong five year outlook will maintain domestic market leadership • Investment in the business critical to supporting customer growth plans both domestically and abroad • YFV approaching its 20 years of development. 26 Forward-Looking Information This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform