Financial Overview

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Sales	7,439	6,857	8.5	-Climate and Electronics segment's higher production volumes in Asia, North America and Europe. -Consolidation of Yanfeng Visteon Automotive Electronics -Favorable currency translation
Net Income	775	170	355.9	-
Sales by Segment
Climate	4,871	4,286	13.6	-Higher production volumes in Asia, North America and Europe -Favorable currency translation
Electronics	1,455	1,274	14.2	-Higher production volumes in North America and Asia -Consolidation of Yanfeng Visteon Automotive Electronics -Sales increase was partially offset by unfavorable currency translation
Interiors	1,261	1,388	(9.1)	-Production declines due to the weakened economic conditions in Europe -Unfavorable currency translation

Restructuring

<Interiors>
Divestiture of Yanfeng Visteon Automotive Trim Systems
-In December 2013, the Company sold all of its interest in Yanfeng Visteon Automotive Trim Systems Co., Ltd. to its Chinese joint venture partner Huayu Automotive.

Divestiture of its shares in Dongfeng Visteon Automotive Trim Systems
-In June 2013, the Company sold its 20% shares in Dongfeng Visteon Automotive Trim Systems Co., Ltd. for approximately USD 20 million.

Interiors business strategy
-As of Dec. 31, 2013, the Company regards its Interior business as a non-core business. The Company continues to make commitments to this business and intends to divest in the future only under acceptable terms and conditions.

Acquisitions

Bolstering Electronics
-In Jan. 2014, the Company has agreed to purchase the automotive electronics business of Johnson Controls Inc. in a cash transaction valued at USD 265 million. The acquisition is expected to be completed in the second quarter of 2014. Under the terms of the agreement, the Company will acquire Johnson Controls' instrument cluster, infotainment, display, and body electronics products. The transaction involves about 4,800 employees, including about 1,000 engineers at seven research and development centers in Europe, North America and Asia. In the fiscal year ended Sept. 30, 2013, the business to be acquired by Visteon generated approximately USD 1.3 billion in revenue.

-In the fourth quarter of 2013, the Company acquired additional 11% ownership interst in Yanfeng Visteon Automotive Electronics Co., Ltd. (YFVE) for USD 58 million, resulting in a 51% controlling ownership interest in YFVE. On a combined basis following completion of the acquisition of the automotive electronics business of Johnson Controls, the Company expects its electronics business will generate sales of about USD 3 billion.

-The Company has raised its equity stake in its Russian joint venture, Visteon Avtopribor Electronics, from 49 percent to 68.77 percent. This action positions Visteon as a majority shareholder in the Russian cockpit electronics supplier. Established in 2010, Visteon Avtopribor Electronics is a joint venture between Visteon and a Russian automotive supplier, Avtopribor. Visteon Avtopribor Electronics has full manufacturing and product development capabilities and supplies a range of cockpit electronics products to global and local vehicle manufacturers including Ford Motor Co., Renault Nissan, GAZ and AvtoVAZ. Centrally located in Vladimir, Russia, Visteon Avtopribor Electronics employs 190 people. (From a press release on October 31, 2013)

Contracts

-The Company announced that it has launched its first tablet information display on Mazda's new global platform for the "Mazda 3" and "Mazda Axela". This automotive tablet display from Visteon Electronics incorporates a flat, touch-capable, protective surface that provides the durability necessary for the demanding automobile environment. (From a press release on October 30, 2013)

-The Company has been awarded a development and production program for its new infotainment system by a major European car manufacturer, with production launch targeted for the 2015 model year. Visteon's latest infotainment solution is capable of multi-device connectivity to deliver apps and features, stream media, access the Internet and seamlessly integrate both Cloud-based and local content to drivers and passengers via a simple user interface. (From a press release on February 25, 2013)

-The Company partnered with Porsche AG to develop a new advanced instrument cluster for the Porsche Panamera Sport Turismo e-hybrid concept, launched at the 2012 Paris Motor Show. Integrating multiple thin film transistor (TFT) displays with touch-activated functions, Visteon developed and delivered the instrument cluster in only 10 weeks. The cluster incorporates a 12.3 inch central TFT color display with two additional color TFT gauges on either side of the display. The central display incorporates the Sport Turismo's vehicle and driver information, ranging from tachometer and navigation to input from the vehicle's external cameras. (From a press release on January 8, 2013)

Outlook

-The Company has set sales and EBITDA target as follows:

• FY ending Dec., 2014: Sales USD 7,800 million, Adjusted EBITDA USD 680 million *Excluding impact of Interiors exit and Johnson Controls' electronics acquisition
• FY ending Dec., 2017: Sales up to USD 9,700 million, Adjusted EBITDA up to USD 1,000 million

Awards

-Major awards in 2013 are as follow:

Received Company	Awarding Company	Award
The Company	GM	Supplier Quality Excellence Award
Chongqing Xuagang Electronics Co., Ltd. (Joint venture between Yanfeng Visteon and ChangAn Automotive Electronics)	Ford	Q1 Award
The Company's Interiors Pune plant in India	Volkswagen India	Supplier Quality Award
The Company's Interiors	PSA Peugeot Citroen	Excellence in program management
Halla Climate Control, Bhiwad, India	Maruti Suzuki	Gold Award in the Overall Excellence
Visteon Automotive Systems India	Mobis India Ltd.	National Top Performer for Business Development Award
Halla Climate Control, Novy Jicin, the Czech Republic	Volvo	Quality Excellence Award
Halla Climate Control	Automotive News	PACE Award (product innovation category)
Visteon Automotive Systems India	Hyundai	Best Innovation of the Year 2012

R&D Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	325	299	326

R&D Facilities

Climate	Electronics	Interiors
-Daejeon, Korea -Kerpen, Germany -Bhiwadi, India -Hiroshima, Japan	-Michigan, USA -Chelmsford, UK -Shanghai, China -Chennai, India	-Camacari, Brazil -Harnes, France -Berlin, Germany -Igualada, Spain -Pune, India -Yokohama, Japan -Rayong, Thailand

Product Development

Intermediate heat exchanger (IHX) sub-cooled water cooled condenser
-The Company has developed the world's first water cooled condenser integrated with IHX. IHX integrated with under part of condenser cools refrigerant that is already cooled by water cooled condenser, which reduces compressor power consumption by 20%.

Adaptive temperature control with high resolution IR sensor
-Temperature control system using high resolution IR sensor analyzes vehicle occupants information (number of passengers, seating area, height, weight and body heat, etc.) in order to optimize and fully automate the climate controls. This product offers customized passenger thermal comfort and improves fuel efficiency of 3%.

Centrifugal air compressors for fuel stack
-The product provides compressed and pressurized air as needed to the fuel stack to create a hydrogen chemical reaction. Comparing to screw type, centrifugal type compressor improve its performance and fuel efficiency by 17% and 2% respectively. This compact-sized and light-weighted compressor operates at high rotating speeds with low noise.

Capital Expenditure

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Climate	187	152	168
Electronics	46	23	23
Interiors	35	34	41
Corporate	1	9	8
Total	269	218	258

Investments Outside USA

<Brazil>
-Halla Visteon Climate Control Corp. (HVCC) announced plans for a new manufacturing facility in Atibaia, in the state of Sao Paulo, Brazil. The site will assemble heating, ventilation and air conditioning (HVAC) components for automakers in the region. At full production, the new operation is expected to employ nearly 100 hourly and salaried employees. The facility will include 3,000 square meters of manufacturing space, with room for expansion based on business needs. Production is expected to begin in the second quarter of 2014. The new manufacturing facility, HVCC Climatizacoes do Brasil Industria e Comercio Ltda., is the first plant for HVCC in South America. The new Brazil operation expands the number of countries with HVCC operations to 19. (From a press release on December 13, 2013)

<Czech Republic>
-Halla Visteon Climate Control Corp. announced the opening of a new production hall at its Hluk manufacturing facility in the Czech Republic. This expansion will increase Hluk's production capacity for exhaust gas recirculation (EGR) coolers and radiators for European vehicle manufacturers by approximately 20 percent. Employing approximately 430 people, the plant currently supplies radiators, EGRs, condensers and intercoolers to global vehicle manufacturers. When the facility reaches full production next year, employment is expected to increase by about 140 people. The new production hall expands Hluk's capacity by 8,000 square meters to a total of 25,256 square meters. (From a press release on November 8, 2013)

<Thailand>
-Visteon Electronics, a business unit of the Company, officially launched a new automotive electronics production facility in Rayong, Thailand. Visteon Automotive Electronics (Thailand) Limited supplies instrument clusters, audio products and multi-function displays to Ford, Mazda, Nissan and Honda. The 4,700-square meter site, with provisions for future expansion, on the Hemaraj Industrial Estate employs approximately 190 people. The Rayong facility strengthens Visteon Electronics' footprint in Southeast Asia. (From a press release on October 16, 2013)

<Russia>
-Halla Visteon Climate Control Corp. (HVCC) announced the start of manufacturing operations on the premises of an industrial partner in Togliatti, Russia. This is the first time that HVCC set up a manufacturing plant in Russia. The new facility, Halla Visteon Rus LLC, will initially assemble cooling modules and heating, ventilation and air conditioning (HVAC) units for automakers in the country. The number of employees is anticipated to reach nearly 300 over a three-year period. (From a press release on September 3, 2013)