Accelerating Value Creation 2012 Annual Report Our Family of Businesses Halla Visteon Climate Control Corp. Halla Visteon Climate Control (HVCC) is a full-line supplier of automotive climate systems and components, and the world’s second largest provider of such products. HVCC supplies global automakers with compressors; heating ventilation and air HVCCHVCC conditioning; fluid transport; powertrain cooling; and electric vehicle and hybrid battery cooling solutions. With 33 manufacturing sites supported by five global technical centers in 18 countries, HVCC employs approximately 11,000 people. HVCC is 70 percent owned by Visteon and is traded on the Korea Stock Exchange (HCC, KS: 018880). Visteon Electronics Visteon Electronics is a global provider of innovative electronic components and systems for the vehicle cockpit, a rapidly growing market, including audio and infotainment systems, instrument clusters, displays, climate controls and decorative control panels. Dedicated to enhancing the overall driving experience, Visteon Electronics is supported by 16 manufacturing plants, four global technical centers and 11 regional customer centers with nearly 5,000 employees in its consolidated operations. Visteon Interiors Visteon Interiors designs and manufactures high-quality instrument panels, door and trim panels, floor consoles and cockpit modules for global vehicle manufacturers. With its global presence in instrument panel and door panel production, the business has a significant track record of providing cutting-edge technology and innovation, supported by eight technical centers around the world. With more than 5,000 employees in its consolidated operations, Visteon Interiors supports customers from 18 manufacturing sites and five just-in-time assembly operations. Yanfeng Visteon Yanfeng Visteon Automotive Trim Systems Co., Ltd. (YFV) is one of the largest and most successful automotive suppliers in China, manufacturing interior, seating, electronic, exterior and safety systems for the global market. YFV has a strong market position in all of its major product lines, including instrument panels, door panels, seats, bumpers, audio, consoles, steering wheels, instrument clusters and air bags. The business is supported by more than 100 facilities and 30,000 employees. YFV is a 50 percent-owned and non-consolidated China-based partnership between Visteon and Shanghai Automotive Industrial Company’s automotive components group, Huayu Automotive Systems Co., Ltd. Letter from the Chairman isteon Shareholders: brought an unsurpassed passion for customers, a 2012 proved to be a robust approach to seeing and year of accelerating pursuing paths to unlocking progress and a value, and a heightened effort meaningful move forward as to engage employees in we work to create and deliver meaningful ways. We say improved value to our “thank you” to the employees customers and you, the of Visteon, as they are the owners of Visteon. ones who come to work each day focused on safely doing Most importantly, a compelling the right things to advance the Visteon strategic plan was business. developed, communicated and is being implemented. This On behalf of the board of approach is already delivering directors, thank you for your expected results. Fully persistence and passion implemented, the plan will regarding Visteon’s result in a leaner Visteon, one performance. I am confident sharply focused on the that 2013 will be a year of businesses and global markets further achievement at that will drive our performance Visteon. I am confident that 2013 and accretive returns. will be a year of further The foundation of our strategy Sincerely, achievement at Visteon. is industrial logic – an approach that identifies, evaluates and pursues value creation in a way that has Francis M. Scricco favorable near- and long-term Chairman, Board of Directors outcomes. Visteon President and CEO Tim Leuliette is the right person to lead us. He is proven and highly respected for his leadership skills, industry experience, communication acumen and insights into global markets, especially Asia. Tim has 1 Letter from the Chairman Letter from the President and CEO question was asked by well- Halla Visteon Climate meaning shareholders filled Control Corp., a powerful with profound frustration Korea-based enterprise regarding past performance providing customers with and a passionate desire for common, best-in-class future improvement. engineering, manufacturing and quality processes. In September of last year, we • Selling our non-core lighting answered that question with business for $72 million. clarity and powerful conviction, putting forth a strategic plan • Addressing U.S. pension and outlining first steps, while liabilities and reducing our also acknowledging that the pension benefits strategic approach is supported outstanding by 25 percent. by attractive “optionality.” • Executing a $50 million share buyback and a $50 By focusing on a clear, value- million bond retirement. creating strategy and concentrating on the Because of the collective fundamentals of our business efforts of Visteon employees, We’ve reinvigorated plan, Visteon delivered $841 we began 2013 as a much million in shareholder value stronger company than a year customer and investor during the final 18 weeks of earlier, with a global, low-cost 2012. For all of 2012 our confidence through manufacturing footprint; a solid results – from positive free cash position; a conservative cash flow to $1.2 billion in new discipline, innovation, debt profile; and a strong business wins – validated our business backlog. We’ve execution and improved, strategic path. reinvigorated customer and investor confidence through more transparent The share price responded, discipline, innovation, rebounding from an August communication. execution and improved, more low of $27.04 to close the year transparent communication. at $53.82, up 99 percent. With our strategic foundation ellow shareholders: Driving these results were and high-priority achievements several focused steps, in place, we are focused on “What is Visteon’s including: the following priorities in 2013: strategy to accelerate much-needed growth • Combining the majority of • Execute share buybacks in total return to Visteon’s climate business supporting two-year, $250 shareholders?” with that of our longtime million outstanding program. partner Halla Climate That was the fundamental Control, creating the world’s • Divesting Visteon Interiors, question greeting me when I second largest automotive which, despite many was selected by the board of climate business. Visteon strengths, does not fit our directors in August 2012 to retains 70 percent long-term value objectives. lead Visteon as CEO. The ownership in the new 2 Letter from the President and CEO • Unlocking the value of Visteon Electronics by focusing on the cockpit electronics segment, where we are well-positioned and growth rates are projected to exceed industry averages. • Further benefiting from our 50 percent investment in Yanfeng Visteon, one of the premier and fastest-growing vehicle suppliers in China. • Aggressively reducing the burden of administrative and fixed costs, especially at the corporate center. As we execute this strategy, Visteon will continue to offer exciting products that help differentiate our customers’ vehicles, improve the driving experience and propel profitable growth. The game- changing e-Bee vehicle concept introduced in 2012 boldly foretells our vision of mobility for 2020 – prompting one customer to call it “the best concept vehicle we have ever seen from a Tier One supplier.” We still have much to do to drive the customer and shareholder value you expect. Along with our board of directors, leadership team and the outstanding Visteon employees around the world, I am committed to delivering measurable value to you and our customers. Timothy D. Leuliette President and CEO 3 Letter from the President and CEO Investor Information This Annual Report can be viewed electronically, along with a variety of other financial materials: our current and periodic reports filed with the SEC; our code of business conduct and ethics for directors, officers and employees; our corporate governance guidelines; and the charters for each of our board committees. Please visit www.visteon.com/investors. You can contact Visteon Investor Relations at (734) 710-2603. Or, send us an email at [email protected]. In addition, you can write to us at: Investor Relations Visteon Corporation One Village Center Drive Van Buren Township, MI 48111 USA Shareholder Communications with the Board of Directors Shareholders interested in communicating directly with a committee chairman or with the non-management directors as a group may do so as described on Visteon’s website at www.visteon.com/investors, or by writing to: Chairman c/o Company Secretary, Visteon Corporation One Village Center Drive Van Buren Township, MI 48111 USA Transfer Agent Our transfer agent and registrar, Computershare, can help registered shareholders with a variety of shareholder-related services. You can call our transfer agent at: (877) 881-5962 (201) 680-6578 (Outside the U.S.) (800) 231-5469 (TDD for hearing-impaired) (201) 680-6610 (TDD outside the U.S.) You can email our transfer agent at [email protected] or write to them at: Visteon Corporation c/o Computershare Shareholder Services P.O. Box 43006 Providence, RI 02940-3006 USA Annual Meeting Visteon shareholders are invited to attend our annual meeting, which will be