Financial Overview

(in million dollars)

	FY2010	FY2009	Rate of change (%)	Factors
Sales
Overall	7,466	6,685	11.7	-
Climate	3,300	2,535	30.2	+ Higher production volumes in all regions - Closure of facilities in Springfield, Ohio, Basildon and Belfast, UK
Electronics	2,146	1,972	8.8	+Higher production volumes in all regions -Closure of facilities in Landsdale, Pennsylvania
Interiors	2,159	2,113	2.2	+Higher production volumes in all regions -Exit of North American interiors operations -Closure of  facility in Enfield, UK

2011 consolidated sales expected to increase by approximately $100 million.

Emerged from Chapter 11 and Reorganization

On October 1, 2010, the Company announced that it has completed its reorganization and emerged from the U.S. Chapter 11 process. In Maｙ 2009, the company and certain of its affiliates voluntarily filed for Chapter 11 in the U.S. The new Visteon is focused on four strong product lines – climate, electronics, interiors and lighting. (From a press release on October 1, 2010)

Contracts
-The Company announced that it will supply its electronics and climate systems for the 2011 Ford Fiesta. The electronics include the audio head unit, instrumental cluster and several multi-function displays consolidating driver information, audio and entertainment controls into one center panel. The company also provides a wide range of climate products including the compressor, condenser, fluid transport lines, and the heating, ventilation and air conditioning unit. (From a press release on July 13, 2010)

-The Company developed an electric air conditioning compressor for hybrid and electric vehicles. It supplies the product for the BMW　ActiveHybrid 7. In conventional vehicles, a compressor is driven by the engine with a belt; therefore it can operate only when the engine is running. An electric compressor can operate independently, thus enabling the cabin to be cooled when the engine is off. (From a press release on November 8, 2010)

<Key product launches in 2011>
-Audi A6: Radiator, Low Temperature Radiator
-Chevrolet Camaro Convertible: Headlamp Projector, Center High-Mounted Stop Lamp, Premium Audio-8 Channel Amplifier and Speaker Assembly, A/C Lines
-Fisker Karma: Hybrid Powertrain Control Module, Head lamps, Infotainment Head Unit, Amplifier and Premium Speakers
-Ford C-Max (NA): Audio Head Unit, Multi-Function Display, Dual Zone Electronic Automatic Temperature Controls, Compressor, HVAC module, A/C Lines, Internal Heat Exchanger, Head lamps (EU)
-Ford Escape/Kuga (Vertrek Concept Vehicle): Compressor, HVAC module, A/C lines with metal seal fittings (Industry first), Internal heat exchanger, Climate controls, Multi-function display
-Ford Ranger (T6): Climate system (HVAC, Compressor, A/C lines, Engine induction system, Powertrain cooling, Climate controls), Audio head unit
-Hyundai i-30: Cockpit module, HVAC, Compressor, A/C lines, Powertrain cooling, Climate controls
-Hyundai Veloster Coupe: Cockpit module, Door Trim
-Kia Optima Hybrid: Electric compressor, HVAC module, A/C lines, Condenser, Radiator
-Mahindra W201: HVAC module, Audio and Infotainment, Head units, Head lamps, Tail lamps
-Citroen DS5 Coupe: Soft instrument panel, Head lamp

-Tesla Model S: Head and rear lamps, Center High-Mounted Stop Lamp, Side marker, Fog lamps, HVAC module, A/C lines, Condenser

Joint venture
-Russian automotive components supplier OAO Zavod Avtopribor and the Company have established a joint venture "OOO Visteon Avtopribor Electronics", which is based in Vladimir, approximately 170 kilometers east of Moscow in Russia. Visteon Avtopribor Electronics will supply vehicle electronics solutions including audio, infotainment, driver information and controls electronics. The new company will serve Russian vehicle manufacturers such as AVTOVAZ, GAZ and Sollers, as well as Ford and other global automakers located in Russia. Avtopribor develops and manufactures wiper systems, instrument clusters, transmitters and gauges and other components for vehicle manufacturers with production facilities in the country. (From a press release on August 26, 2010)

Divestitures

-The Company sold its radar system business to Autoliv. Autoliv radar specialists have worked together with the Visteon team over the past few years. This partnership has resulted in Blind Spot and Rear Cross Traffic Detection Systems. (From a press release on March 4, 2010)

R&D Expenditure

(in million dollars)

	FY2010	FY2009	FY2008
Overall	353	328	434

R&D Structure

-In March 2009, Halla Climate Control (HCC) of Korea, a subsidiary of the Company, opened a testing laboratory in Shanghai, China. The laboratory develops air conditioning systems. (From a press release on Mar 2)

Product Development

Microprocessor in the next-generation MFD platform architecture
The Company has enhanced its capabilities in developing multi-function displays (MFD) for vehicles by incorporating a newly developed microprocessor in its next-generation MFD platform architecture. By incorporating a new Renesas Electronics microprocessor, Visteon can offer vehicle manufactures more cost-effective MFD products. Additional capabilities offered by Visteon's new MFD platform include a decoder for in-vehicle camera applications that accommodate both NTSC and PAL video formats; 2.5 megabytes of additional random-access memory allowing more functions to run faster; and a high-speed serial flash interface designed to accelerate information access and data transfer. With the new microprocessor, Visteon's MFD platform will support Wide Video Graphics Array (WVGA) thin-film transistor displays and complies with industry standards including OpenVG. (From a press release on December 22, 2010)

New metal seal fitting technology
The Company has developed a new metal seal fitting technology that is designed to eliminate refrigerant leakage in vehicle air conditioning systems. The metal seal fitting is specified for mass production beginning in 2011. The product meets requirements for today's R134a refrigerant as well as future refrigerants including R1234yf and R744 systems. (From a press release on March 18, 2010)

Technological Alliance

Together with Mueller-BBM, a German developer of sound management systems, the Company will develop automotive active noise cancellation and engine sound enhancement systems. Visteon is also working with SRS Labs, a US-based firm specializing in audio signal processing, to develop audio post-processing systems for the automotive market. (From a press release on January 8, 2010)

Capital Expenditure

(in million dollars)

	FY2010	FY2009	FY2008
Climate	112	71	133
Electronics	52	40	64
Interiors	33	32	67
Other	-	-	1
Corporate	12	8	29
Total	209	151	294

Investments Outside USA

<Brazil>
-The Company announced that it will make a multi-million dollar investment to expand its interiors and electronics production capacity in Brazil. Most of the investment will go toward expanding and upgrading Visteon's Arbor plant in Guarulhos, which produces instrument panels, consoles and other interior components. Visteon is also expanding its facility in Manaus, which makes electronics products including instrument clusters and audio systems. Visteon will continue investing in Brazil with a goal of increasing its business in the country by 50 percent over the next three years. The company will continue to assemble climate system products in Argentina, where it operates plants in Buenos Aires; Quilmes; and Rio Grande, Tierra del Fuego. The number of employees in Brazil and Argentina is about 2,000, and South America accounted for 6 percent of the company's global revenue in 2009. (From a press release on November 23, 2010)

<Russia>
-The Company has opened an automotive interiors manufacturing facility in Kaluga, Russia. Based in the Kaluga Supplier Park, the new facility manufactures injection molded door panels and other interior components for the new Volkswagen Polo, which is to be sold in the Russian market. Visteon plans to reach full production in the first quarter of 2011. (From a press release on September 8, 2010)

<China>
FAWER Visteon Climate Control System (Changchun) Co., Ltd (FVCC) has moved the Changchun Automotive Development Zone and expanded its manufacturing operation in Changchun, China. The new plant will produce heating, ventilation and air conditioning systems (HVAC) and mechanically assembled aluminum radiators, in addition to brazed aluminum radiators that FVCC currently produces. In 2009, FVCC established a technical collaboration with Japan Climate Systems (JCS), another Visteon joint venture, leading to the introduction of the HVAC product line. In addition, FVCC localized the design of radiators. The Changchun facility has the capacity to produce 1.2 million brazed radiators, 250,000 mechanical radiators and 240,000 HVAC systems annually. FVCC serves a range of automakers such as FAW-Volkswagen, FAW Car, FAW Jiefang, FAW Xiali, FAW Haima, Shanghai Volkswagen, Chang'an Ford, Chery, Geely, and Great Wall. (From a press release on June 22, 2010)