Good morning, I’m Bob Krakowiak, Vice President and Treasurer, Investor Relations for Visteon. Welcome to our Second Quarter 2015 Earnings Call. All lines have been placed on a listen only mode to prevent background noise. As a reminder, this conference is being recorded. Before we begin this morning's call, I would like to remind you this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 statements. Please refer to the slide entitled Forward-Looking Information for further information. Presentation materials for today's call were posted on Visteon's Web site this morning. Please visit www.visteon.com to download the material if you have not already done so. Joining us today are Sachin Lawande, President and Chief Executive Officer; and Jeff Stafeil, Executive Vice President and Chief Financial Officer. We appreciate your interest in our company, and thank you for joining us to review second quarter 2015 results. We have scheduled the meeting for an hour, and we'll open the lines for your questions after Sachin and Jeff's remarks. Please limit your questions to one question and one follow-up. As previously mentioned, a presentation associated with today's call is posted on visteon.com within the Investors section. Also note that our Form 10-Q was filed earlier this morning with the news release. Again, thank you for joining us. And now I will turn it over to Sachin.

Thanks, Bob and good morning everyone. Welcome to our call. It’s a pleasure for me to be leading my first earnings call as Visteon’s CEO. I’m very pleased to be here. A little later in the presentation I’ll share some of my early impressions of Visteon as well as my initial thoughts on where I see the company going in the future. First, let’s review the second quarter results starting on page 2. I’ll cover the highlights and Jeff will provide more details shortly. This was a strong quarter for Visteon capping off a strong first half of 2015. Sales were $812 million for the quarter and 1.63 billion for the first half of the year. Adjusted EBITDA was $60 million for the second quarter and $138 million through the first half. Free cash flow for the first six months was $172 million. The company has a very strong balance sheet with cash of $2.866 billion and debt of $378 million. We also had some noteworthy actions in the second quarter. On June 9, we completed the sale of our ownership interest in HVCC to Hahn and Company and Hankook Tire. That was announced a day before the company appointed me as President and CEO, which took effect on June 29. Also in June, we initiated $500 million accelerated share buyback that will be completed by the end of the year. We’re reaffirming our full year guidance for our core electronics business incorporate. However, based on the strength of our first half results we’ve be believe we’ll be at the high end of a range for both adjusted EBITDA and adjusted free cash flow. As shown at the bottom of this slide, our range for adjusted EBITDA is 245 million to 265 million and the range for adjusted free cash…

Great. Thanks Sachin and good morning everyone. I’ll begin my comments on slide 17 where we present our key financial results for second quarter of 2015 compared to the second quarter of 2014. As we have explained on prior calls, our financial results are impacted by a number of items that make year-over-year comparisons difficult. The adjusted financial information presented on this slide excludes these items and represents how we manage the business internally. As non-GAAP financial measures, this adjusted financial information is reconciled to US GAAP financials in the attached appendix on pages 29 to 33. Additionally, year-over-year comparisons are impacted by the acquisition of Johnson Controls electronics business in July 2014. This transaction resulted in a significant year-over-year increase in sales, adjusted gross margin and adjusted SG&A and adjusted EBITDA. Lastly, in this quarter we have reclassified the majority of our climate business as discontinued operations in our financial statements. As we explained in previous calls, last year we were classified the majority of our interiors business as discontinued operations. As a result, our income statement has been adjusted to exclude both climate and interior specific income and expense. Climate and interiors net profit has been combined and reflected on one line as discontinued operations. The financials on this slide exclude discontinued operations with the exception of free cash flow and adjusted free cash flow. Adjusted EBITDA was 16 million in the quarter compared to 29 million for the same period last year, a 31 million year over year increase reflects the impact of the JCI Electronics acquisition and improved electronics performance partially offset by higher engineering costs. Adjusted free cash flow is 33 million in the quarter, 51 million higher than in the same period last year. Adjusted free cash flow for electronics in corporate only was…

Thank you, Sachin and Jeff. I would now like to turn it over to the operator to open the lines for questions. Again, please limit your question to one question in one follow up.

[Operator Instructions] Your first question comes from the line of Colin Langan with UBS. Please go ahead.

Great, thanks for taking my question. Sachin, what do you feel is the bigger opportunity for Visteon, display has had a lot on clusters than displays in the market opportunity there, but it did seem pretty foolish about the share opportunities [indiscernible]. Do you think that possible how long will that take to improving [indiscernible] pretty strong competitors there.

Good morning, Colin. I think it’s an excellent question because this is the main reason why I have come to Visteon. I see a big transformation occurring in the cockpit electronics where on account of the complexity of the systems there is a drive towards integration. And Visteon has the breadth of product portfolio, the expertise in all aspects of the business including functional safety capabilities coupled with infotainment which is very key to being able to successfully integrate. And as you heard from my comments earlier, we have an underlying integration technology that we call SmartCore which gives us a great opportunity to take the lead in integrating these various functions and features. So I see really good opportunities for us. We have already started to see business in this direction and as I mentioned we will start to see the first shipments starting 2018 and from that point onwards, it will only accelerate. So that’ the view from where we stand today and I’m sure this industry is going to be a very fast moving one and we will provide you with more updates as we go forward here with how we see the technology and the product space evolve.

Okay and my second question is it sounds like you reaffirmed your capital return plan. How are you thinking though about M&A? Do you think it has the right technology today or do you think you’re going to need to do some ballpoint acquisitions or larger acquisitions? And do you actually - are you considering divestiture of getting product that may be are lower growth.

Yeah. Visteon has a tremendous amount of technology and technical competence across the breadth of the products that we currently serve, but as the technology base - especially when it comes to infotainment is evolving very quickly. We will be looking very carefully at what specific technologies that we may need to bring whether developing that in-house or through an inorganic manner and we will be carefully looking at those requirements as well as opportunities out there in the market. I’m very optimistic that we will be in a position to really strengthen our technology base, in infotainment we have very clear vision of where we want to go with it. It is not the same that the industry has traditionally been doing. This is truly approaching an inflection point. The way I look at it is the last 10 years, we as an industry and you know us from my days at Harman. We had been successful in successively increasing the capabilities leveraging more slow, adding more software, but now we’re reaching a point where we have to rethink how these systems need to be build. Security concerns as well as distraction and the amount of features that are coming in are driving slightly different needs than in the past. So we stand at this juncture where we cannot continue to go down the path of what we’ve been doing in the past as an industry, there’s a fundamental shift. Not to mention also the fact that traditional capabilities such as navigation and media are now going to come more and more from the phone. So we stand at that crossroad, I believe Visteon is better equipped today than virtually almost anybody else because some of the legacy technologies in business is going to hold back some of our competitors from doing what we need to do to leapfrog.

Thank you very much, very interesting.

Your next question comes from the line of Matthew Stover with SIG. Please go ahead.

Thanks for taking my call. This is Brendon in for Matt. The balance of the HVCC cash, it says 3 billion on slide 3, but cash flow has 2.664 or 2.755 including the JV sale which is probably a part of it.

Yeah, I’ll reconcile those numbers. Good morning, Brendon. If you look you’ll see a couple of components of our cash flow came in. In the first quarter we actually received the dividend from Hanon which was about $70 million and then you’ll see about 3.4 billion or a little bit more than 3.4 billion in our cash flow statement. To get down to that 2.664 you mentioned, there’s a few deductions, I’ll walk you through those. There’s $377 million Korean withholding tax, you’ll see an asset in our balance sheet to recover a net 200 or 250 or so of that. We gave a range of 200 or 300 over the next few years. There was also 17 million of share tax in Korea and then the amount of cash that Hanon held on their books was 345 million and the account works that netted against debt on the cash flow statement. But it’s still a net $3 billion - with all those factors it’s still a net $3 billion that came in the door with an opportunity to increase that 200 to 300 depending on the outcome of the withholding taxes in Korea.

Okay, great. And the SG&A 8% of sales of looks high, we recognize that there’s going to be some lumpiness in there, but what should we think about that for the full year of 2015. Is it also reasonable to assume that could go down to about 7% in ‘16?

Yeah, as we highlighted on our earlier call this year, I think it might have been our year end call. We’ve recognized that our SG&A is higher than it should be. Some of that is from the legacy elements as we’ve shrunk down the business and are now just a core smaller electronics group and still have some elements of legacy on our cost structure. We had brought in some consultants and we’ve formulated benchmarks and we’re in the process of coming up with plans to bring ourselves down closer to benchmarks. Your 7% number that you highlighted I think is probably a stepping stone to where we’d like to be, in the future it would be lower than that number and we’ll continue to work that number down really to the peer group which is stay in probably the 5% to 6% range. It will take us a little bit of time to get there and we’re going to need to probably complete some of the legacy transaction moves. Some of those orphan facilities we have are climate or interiors [ph], but as those things are simplified we do see an opportunity to make some substantial reductions in our SG&A. And I would say also growth will help us as well as we won’t have to add as much resources, so that will be accomplished really in two areas.

Thanks very much.

Your next question comes from the line of Brian Johnson with Barclays. Please go ahead.

Yes, so I want to ask really some questions about SmartCore and then your preliminary views of the evolution of the business as your - as when this kind of tipping point. The first is I guess two questions on SmartCore. One, given the recent publicity around cyber security [indiscernible], how do you see SmartCore fitting in as a solution for cyber security concerns? And I guess second question strategic around SmartCore is, two what extent is there an advantage to having a deep position in current dashboards cockpits versus the people who may be better known for infotainment, but don’t necessarily have that dashboard position.

Right, so as concerns security Brian, you can take a look at it from a couple of perspectives. One, in the current architecture of how we build the systems with all the use that go in, your network security is only as strong or as weak as the weakest element in that network. As you integrate these easy use into a virtualized system you have the potential to now focus on creating a more secured system because it is now a single devise that you have to worry about. Moreover, as we go forward here, this is the second part of the answer that security would be embedded as part of our SmartCore framework. It is already offering a level of security that is quite advanced by ensuring that the domains are not able to sort of transition from one to the other. So there is inherent protection in that sense. Now, to address the question of does it have a benefit to people who have this multiple products such as outsourced at Visteon, it’s extremely important to have AISL capability of certain products within the cockpit would be required as they’re today to have a level of functional safety requirement. Visteon is one of those few suppliers that have within their portfolio ASIL capable solutions as well as infotainment which does not require AISL. We have a unique ability to integrate those two, understanding the requirements of both and then being able to certify to the right level of AISL requirement. So we believe we have what necessary capabilities are that are required to play in the space. We have a head start with the SmartCore development. This development has been going on for at least over two years and there’s a tremendous amount of technology that has been built already into it. So I think we have a head start that I look forward to, to retaining and capitalizing on.

Okay and second question is just around, so the next few years for the current business, the mix of cockpit electronics and kind of I guess what might be described as mid-range infotainment, to what extent is there a sort of risk to some of that rolling off or pricing pressure as you build sort of the 2018 and 2020 backlog around more of these higher end products?

So what we see there as opportunity is essentially this mid-range infotainment solutions which are playing heavily up of the Smartphone connectivity. So in fact we see a growth opportunity here based on where we stand today with Visteon’s footprint in that business. And it is not so much the pricing challenges as much as the technological challenges that we and the rest of the industry have in being able to meet the demands of that segment in the timeframe that you just mentioned. So the way I look at it at this point in time, the pipeline of the business that we are looking at is growing. It is a time horizon - I would say sometime 2018 and beyond where we would start to see shipping systems with the technologies that we have, that I mentioned earlier and the opportunity to grow our infotainment business is significant as compared to where we have it today.

Is sort of is that we just think of that base business as a fairly solid between 2017 and ‘18 or I’m going to guess getting to the issues which probably you discovered as well that JCI came in with negative backlog and I guess to what extent has that been back felt in 2017, 2018 are shaping up well?

Right and we have - we are definitely protecting our business in that time horizon and we have a business that I mentioned that would be launching in 2018 timeframe that would also be infotainment that is an addition to that infotainment business. So net-net I would expect those to be able to grow the business from where we’re at today.

Okay and just to clarify one technical word you used, ALS or what was the certification for this term [ph] you talked about?

Yeah, it is ASIL, A-S-I-L. It’s a functional safety certification that’s required for - for example products like clusters.

Okay and that’s enforced by the NHTSA and the Analog International?

Also by ETS and also by the automotive OE, so if you don’t have that capabilities you would not be able to get into the cluster business as an example or active safety and there are multiple levels of AISL ranging from B all the way up to D. And if you do not have that capability obviously that blocks you from integrating that functionality into the systems of the future that would use multicore silicone.

Okay, so that’s why it’s important to be in the cockpit because of that AISL and I assume also the relationships with the HMRA engineering staff that is going to be integrated in with the people who just did it through [ph] infotainment center units before.

That’s correct, without AISL you have to have essentially separate devices and not - have the potential to integrate it.

Okay, great. Well, we’re going talk about this more in November. Looking forward to it.

Thank you.

Your next question comes from the line of Ryan Brinkman with JP Morgan. Please go ahead.

Great, good morning, thanks for taking my call.

Good morning Ryan.

One for Sachin may be to start with your comments on page 6, I rather expected that one of your initial impressions of this time would be with a very strong instrument clusters, center information displays, audio head units, connectivity, telematics et cetera. I’m curious now coming from Harman what you think specifically of Visteon’s current infotainment offerings maybe more of the embedded type. My understanding was that Harman didn’t feel that really competed with Visteon at least in embedded infotainment. And whether you think, it makes sense to take Visteon’s infotainment business more in the direction of the strategy that you were pursuing at your former employer. And then just along those lines maybe help us understand what the key differences are between Visteon and Harman’s approach is to infotainment and what kind of investment in either time or money or management focus and attention might be required to really make this down a top tier infotainment competitor along the lines of a Denso or a Harman or whether that even makes sense to pursue. Thanks.

Right and I think that’s the fundamental question that we’ll all be addressing. Internally we’ll be spending a lot of time to understand what’s the best strategy to come up with, but let me give you some ideas, some thoughts that we have at this stage. But to answer the first question which was, how does infotainment capabilities compared with that of say, Harman. Harman obviously came from the very high end of the infotainment market and has strong capabilities with embedded navigation, which has been a legacy from the days in the past where there was no other way to implement navigation other than embedded and it has a lot of capabilities on integrating the features that today you see in high end infotainment systems. With the JCI acquisition what we have here at Visteon is a mid-range infotainment solution that from a connectivity view point, from a USB, from Bluetooth, from even the basin infotainment capabilities is as good as any out there in the market place. So it meets the requirement of the mass market segment of vehicles extremely well. For whatever reason that was not the focus either at JCI or at Visteon from what I can tell and that was really the reason why the business didn’t really grow from where it is at today. It is not necessarily a technology issue in my opinion, but more of a business and focus issue. But now, if you were to look into the future, I don’t believe that we should necessarily chase the systems and the solutions that have evolved over the last few years because I don’t believe that that’s where the industry is going. The things that have fundamentally changed the landscape are the entrance of new technologies and partners driven by the Silicon Valley companies that is changing how an infotainment system would look like going into the future. And so what we are in the process of doing here is to define our solution for the 2018, 2019 timeframe. I think we have a good enough solution to carry us until then as I mentioned earlier, but we need to have a leading platform that integrates all the capabilities that are expected both coming from the Smartphone side as well as some of the new technologies such as HTML5 security and Car2x or V2V as its also called and integrating safety into an integrated device sometimes that has been called as a cockpit domain controller, SmartCore is the underlying capability of the framework, but that’s the direction we will take most likely. This is something still that’s evolving and we will give you more update in the fall timeframe at one of the conferences that we will be participating in.

Okay, thanks for that clear explanation. It’s very helpful and then just last question maybe for Jeff on the new business wins. Looks like 600 million of new wins in the first half looks a lot, can a provide some color on this such as any sort of breakdown by product type or geography. And then also like how to put that in context of the $500 million backlog, I believe these can’t be directly comparable numbers right. The 500 million is what a net new business backlog or is the 600 million may include some sort of ramping [ph] the business here currently on, how to think about that. Thanks.

Sure. Ryan, the $500 million backlog is actually what we put out annually. We do it - the four year backlog number that it takes out net business or lost business I should say, so it’s net new not taking in vehicle growth or industry growth into mind, but it’s 500 million annual backlog number for four years. That’s the number we post every Deutsche bank conference usually in early January I should say [ph], to give a plug to Deutsche bank, but that’s the conference we generally do it at. The second part of your question is the 600 million. Last year we had a net business win or a business win I should say of about $1.3 billion give or take, that’s about where we set the target up for this year and I’d say we’re on pace to do that. Those things aren’t necessarily evenly divided by quarter, but as we look at the year I think we still are optimistic. Getting to those numbers should allow us to increase our annual backlog further and we’ll update you more on when we get to the end of the year. As far as what we’ve won, I’d say it’s generally in line with our current product mix between clusters and audio et cetera.

Okay, that’s helpful. Thanks a lot.

Operator, we’ve got time for one more question.

Your final question comes from the line of Itay Michaeli with Citi. Please go ahead.

Great, thanks. Good morning everyone and congrats. Jeff just on the guidance, nice to see the upper end of the EBITDA range emphasize, I think if I look at the [indiscernible] second half versus first half, particularly excluding the warranty item in Q2. It does imply bit of a step-down sequentially, I think historically in electronics pre JCI second half used to kind of finish, you’re fairly strong in the fourth quarter. Can you maybe just help us with some of the puts and takes around kind of the sequential margin walking in the business and may to the extent that there might be any conservatives in there.

Sure. Good morning Itay. A couple of things there, as you mentioned we were kind of steering you towards or at least we’re trending towards the higher part of the guidance, but there’s a lot of I’d say distance between now and the year end and our business doesn’t work exactly seasonal, it also can be a little bit lumpy. So we’ve talked about it various periods, the amount of engineering recovery that comes in any particular quarter or warranty heads or other things that can move that quarterly EBITDA a fair amount. As we look at the first half of this year, we had a little bit - especially in the first quarter a bit better currency environment than we’re sitting in now, so that certainly impacts us a little bit on some caution. We also - I would say our business as you know is seasonal such that more of our sales tend to land in the first half of the year than the second and since we have - as an industry as well we have a high amount of fixed cost, so the leverage or the fixed cost absorption in the margin will usually be even better in the first half than it is in the second half. I think we’ll continue to update you as we go forward with the year, but as we sit here today this is the number that given all the uncertainty in the world we thought ranging on the high end of this guidance or still appropriate.

That’s very helpful and just two quick housekeeping follow-ups. First, with the ASR side, just any guidance on share count that gets for Q3 and Q4 and then I think on the tax [indiscernible] the changes and progress you’re making, any kind of targeted mid-term, long-term tax rate for the business?

Yeah, first question on the ASR. We launched that in June, $500 million, the 2% discount on the average price over the time that program is outstanding. So it should end somewhere in the fourth quarter, but have to end by December 31. From a share count perspective, we can’t guess it exactly, but it should be around 40 million shares once that’s all is completed.

40 million?

40 million shares.

Yeah, 40 million shares outstanding.

Yeah, 40 million shares outstanding at 40 million purchased, excuse me. So 40 million outstanding after the ASR is completed.

That’s helpful and then Jeff on the tax rate?

Yeah, the tax rate, we have - we put 33% as our estimate for this year. It still includes some losses and unprofitable locations, that’s something we’re going to be continuing to work on. As you’ve seen we’ve built that number or pushed that number down quite a bit over time. There’s still room to go there and I see better tax strategies around some of our, I’d say just overall better or continuing to utilize our US attributes, should get us I would suspect inside of 30 at some point, but that’s we’re going to continue to monitor and we’ll report on that as we go forward, but it will take a little bit of time. But there’s no reason we shouldn’t start to push down lower and below 30%.

Terrific, that’s very helpful. Thanks everyone.

Well, thank you Sachin and Jeff. I’d like to thank everyone for their participation on today’s call. If you have additional questions, please feel free to contact me at your convenience. Now I’d like to turn it back over to Sachin for some final comments. Sachin?

Thanks, Bob and thank you again for joining us today and for your support and investment in Visteon. We had a good quarter and we look forward to continuing the momentum in the second half. Visteon is well positioned to be an industry leader with the singular focus on cockpit electronics and the connected car. I’m privileged and excited to be leading this company into this next phase of its transformation. I assure you that we’ll bring a very sharp focus on customers, technology and cost every day which I’m confident will drive value for our investors. Look forward to sharing details on our vision and mission with you in the fall. Thanks again and good day.