transforming the future of mobility- visteon citi 2016 global technology conference

Transforming the future of mobilityCiti 2016 Global Technology ConferenceSeptember 2016

Agenda

• Company overview

• Next-generation infotainment

• Autonomous driving

2

Company overviewCiti 2016 Global Technology Conference

Our Vision:A global leader in automotive cockpit electronics delivering a rich,

connected cockpit experience for all cars from luxury to entry segment.

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.

4 Visteon Corporation proprietary – Citi 2016 Global Technology Conference

Accomplishments and strategic imperatives

2015 Accomplishments 2016 Objectives Forward Looking Focus

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Pure-play electronics company

JCI acquisition synergies

Improved profit, free cash flow

New business backlog - $14.9B

Enhance capital structure

YoY margin improvement

Positive free cash flow

Win record new business

Adjusted EBITDA margin 12+%

Technology-driven sales growth

Optimize capital structure

Visteon Corporation proprietary – Citi 2016 Global Technology Conference

Improve free cash flow

Electronics quarterly adjusted EBITDA(1)

$84

$60 $67

$83

$94

$79

10.8%

7.7%8.7%

10.7%11.9%

10.4%

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Adjusted EBITDA

% Adj. EBITDA Margin

Delivered significant growth in adjusted EBITDA since Q3 2015

(Dollars in Millions)

(1) Electronics product group now includes previous Electronics segment and Corporate costs.


Strong new business wins

Won record $4.3B in new business in 2015 and $2.8B in first half 2016

$1,105 $1,084

$883

$1,218 $1,189

$1,589

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016$2.8 Billion

$2.8 Billion YTD

Asia Pacific44%

Europe26%

North America

28%

South America

2%

(Dollars in Millions)

New business wins by region(Q2 2016 YTD)

New business wins include lifetime revenue

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Consolidated new business wins


Broadest cockpit electronics portfolio in the industry

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Complete cockpit electronics portfolio positions Visteon well for continued growth

Instrumentclusters

Head-updisplays

Telematics Cockpit domain controllers

Informationdisplays

AudioInfotainment


Next-generation infotainment – PhoenixCiti 2016 Global Technology Conference

Phoenix – designed with three goals in mind


App developer friendly Highly secure Fully upgradeable

Rapid application development

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Phoenix infotainment platform designed with app developers in mind

Publish to app store

OEM or Visteonvalidation

OTA app download

Current model for app development App development with Phoenix

Create and test app with SDK and simulator

DevelopmentSystem


• Requires custom development of hardware and software

• Lacks software development kit (SDK) and tools for third-party software development

• Restricted to Tier 1 supplier or OEM• Expensive and time consuming

validation process• Limited number of apps

Open standards-based system architecture

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Leverage latest developments in cyber security and open standards

Native services Browser/ Android

OS QNX/Linux

Hardware

Chromium-based middleware

Secure OS Linux

Secure hardware

Conventional system architecture Phoenix system architecture


Native apps HTML/Android apps

Non-standard proprietary API without SDK

Ad hoc and limited security capability

HTML5 apps

JavaScript API with SDK and simulator

Secure hardware, operating system and HTML5 chromium-based middleware

It’s all about the API…

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Unlocking innovation through open collaboration and developmentVisteon Corporation proprietary – Citi 2016 Global Technology Conference

Application Programming Interface

Software Development Kit

App Store

Extensive JavaScript API

Open standards with W3C

Covers all vehicle functionality

Visteon or OEM-managedSupport Windows, Linux and Mac

Libraries, docs and simulator

No restriction on HTML5 tools

Integrated test and validation

Integrated OTA updates

Most comprehensive cyber security

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Security features built into every layer of platform for maximum protection

InfotainmentUnsecure system

InfotainmentSecure system

*****

Ad hoc security in current systems Phoenix cyber security architecture

***

Secure applications

Secure boot

Authentication and verification

Secure hardware

Secure network

***

***


Secure over-the-air (OTA) updates

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Phoenix supports block and file system updates for secure OTA upgrade

Block and File OTAsecure updates to vehicle

Full, incremental or apps

Phoenix secure OTA update


System

Apps and data

4K

4K4K4K 4K

4K

4K4K4K 4K 4K4K

• Infotainment system contains code withdifferent levels of runtime privileges

• Operating system code must be block-updated for maximum security

• Apps and data can be updated using filesystem level updates

• Phoenix uses in-house technology thatperforms block and file-system OTAupdates

Autonomous drivingCiti 2016 Global Technology Conference

Our evolution to autonomous driving

• Distributed ADAS ECUs• Classical use case programing• Lacking algorithm developer-friendly architecture• Hardware non-fault tolerant• Discrete non-scalable system

• Centralized domain controller• Neural network technology• Open software environment for algorithmic

development• Secure and fail-safe hardware• Scalable toward L3/L4 autonomous driving

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One domain controllerDistribution on multiple ECUs

Today Future


Actuators

ECUs

Sensors

Actuators

Visteon domain controller

Sensors

Our approach to autonomous driving

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Collaborative approach to rapid algorithm development based on neural networks

Fail-safe centralizeddomain hardware

Open frameworkdesigned for algorithmic

developers

Neural networks


Our technology roadmap

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2015Launched domain controller for cockpit

2017Launch next-generation infotainment

2018Launch autonomous driving domain controller platform
