VAN BUREN TOWNSHIP, Mich., Feb. 16, 2023 — Visteon Corporation (NASDAQ: VC) today reported fourth quarter and full-year 2022 financial results that exceed its previous outlook. Highlights include:

• $1,064 million Q4 net sales; up 35% from prior year
• Net income of $34 million in Q4 or $1.18 per diluted share
• Adjusted EBITDA of $103 million, 9.7% of sales in Q4
• 45 new products launched for the year
• $6 billion in new business wins in 2022 
• $174 million net cash position at year-end

Fourth Quarter Financial Results

For the three months ending December 31, 2022, Visteon reported net sales of $1,064 million, representing a year-over-year growth of 35%, or 43% when excluding the impact of currency, from the prior year. Sales performance was driven by the ramp up of recently launched products, favorable pricing, and customer vehicle production growth. Market out-performance in the quarter represents the 15th consecutive quarter of growth-over-market relative to customer weighted vehicle production.

Gross margin in the fourth quarter was $114 million, and net income attributable to Visteon was $34 million. Adjusted EBITDA, a non-GAAP measure as defined below, was $103 million for the fourth quarter of 2022 or 9.7% of sales, representing a very strong performance despite global semiconductor shortages impacting production throughout the quarter. Adjusted EBITDA benefited from robust sales and the ongoing benefits of cost and commercial discipline.

Full-Year Financial Results

For the year ending December 31, 2022, Visteon reported net sales of $3,756 million, representing year-over-year growth of 35%, or 40% when excluding the impact of currency.

Gross margin in 2022 was $368 million, and net income attributable to Visteon was $124 million.  Adjusted EBITDA was $348 million in 2022 or 9.3% of sales, driven by higher sales while leveraging a lean cost base with modest increases in engineering and other fixed costs. Positive pricing mostly offset the incremental costs caused by the ongoing global semiconductor shortages and other supply chain challenges.   

Cash provided by operations for the 12 months ending December 31, 2022 was $167 million and cash used for capital expenditures was $81 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, was $101 million for the full year.  Adjusted free cash flow benefited from strong adjusted EBITDA and continued capital expenditure discipline, partially offset by an increase in working capital due to an increase in inventory as a result of uneven customer production schedules caused by the semiconductor shortages. 

New Business Wins and Product Launch Highlights

The company won $6 billion of new business in 2022, leveraging its strong, diversified product portfolio that addresses key industry trends. Visteon launched 13 new products in the fourth quarter, resulting in 45 new products in total for 2022, which continues to build the foundation for the company’s sustainable market out-performance. 

Visteon won significant new business throughout the year in all core product lines including conquest wins in SmartCore™  and advanced display programs with global customers. In the fourth quarter, the company continued its success in cockpit domain controllers, with a follow-on SmartCore™ program win with an Indian OEM. Additionally, Visteon won two high volume display programs, including a center infotainment display on a future electric vehicle version of a flagship SUV for a North American OEM and a follow-on multi-display module win for a Japanese OEM.

Robust Growth in 2022 and Strong Outlook for 2023

Visteon's full-year 2023 guidance anticipates sales in the range of $3.95 billion and $4.15 billion, Adjusted EBITDA in the range of $405 million and $445 million, and Adjusted Free Cash Flow in the range of $115 million and $165 million.

Conference Call and Presentation

Today, Thursday, Feb. 16, 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: 1-888-440-4360

Outside U.S./Canada: 1-646-960-0832

Conference ID: 4719410 

(Call approximately 15 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 section of Visteon’s website.

A replay of the conference call will be available through the company’s website or by dialing 1-800-770-2030 (toll-free from the U.S. and Canada) or 1-647-362-9199 (international). The conference ID for the phone replay is 4719410. The phone replay will be available soon after the completion of the call and until 11:59 p.m. ET on Thursday, March 2.

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_{Use of Non-GAAP Financial Information}

_{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 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 2023, the company is providing 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 coronavirus (COVID-19) pandemic on our financial condition and business operations including global supply chain disruptions, market downturns, reduced consumer demand and new government actions or restrictions;}

_{•continued and future impacts related to the conflict between Russia and the Ukraine including supply chain disruptions, reduction in customer demand, and the imposition of sanctions on Russia;}

_{•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, 2022, 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2022. 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.}