Good morning. I’m Bob Krakowiak, Vice President, Treasurer and Investor Relations for Visteon. Welcome to our first quarter 2016 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’d 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 details. Presentation materials for today’s call were posted on the investors section of Visteon’s website this morning. Please visit www.visteon.com/earnings to download the material if you have not already done so. Our Form 10-Q was filed earlier this morning with the news release. Joining us today are Sachin Lawande, President and Chief Executive Officer; and Bill Robertson, Interim Chief Financial Officer. We have scheduled the meeting for an hour and will open the lines to your questions after Sachin and Bill’s remarks. Please limit your questions to one question and one follow-up. We appreciate your interest in our company and again thank you for joining us. Now, I will turn it over to Sachin.

Thanks, Bob, and good morning, everyone. Earlier this morning, we released strong results for the first quarter. Our company continues to execute well and I’m pleased with our continued progress on our key metrics during the quarter. On page 2, let me briefly cover our first quarter consolidated 2016 results, which include our other operations. Sales were $802 million; adjusted EBITDA was $89 million, with a margin of 11.1%; adjusted free cash flow was negative $28 million; our adjusted earnings per share was $1.22; our balance sheet is strong, with cash and debt of $808 million and $382 million, respectively. Looking at our first quarter 2016 results for our ongoing electronics business, we had sales of $793 million, adjusted EBITDA was $94 million with a margin of 11.9%, and adjusted free cash flow was negative $22 million. In addition, we won new business in the quarter totaling $1.2 billion in lifetime sales. This increases our business backlog as of March 31 to $15.6 billion, an increase of $400 million since the start of the year and an increase of $1.1 billion over the last nine months. We had several key accomplishments during the quarter. Our year over year sales increase from volume and new business, net of currency, was 4.4% versus the industry vehicle production growth rate of 1.3%. We achieved electronics EBITDA margins of 11.9% as compared to 10.8% for the same quarter last year, and signed a definitive agreement to acquire AllGo Systems. In addition, we paid a special cash distribution to our shareholders of $43.40 a share. Finally, we received a net $340 million in withholding tax proceeds from the HVCC transaction and committed $500 million of capital to buy back our shares. Based on the strong first quarter performance and despite some headwinds that are appearing…

Thanks, Sachin. On slide 14, we present our key financial results for first quarter 2016 versus the comparable period in 2015. 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 appendix on pages 25 through 33. As we have also explained previously, we have reclassified the majority of our climate and interiors business as discontinued operations in our financial statements. As a result, our income statement has been adjusted to exclude both climate and interior-specific income and expense. Climate and interior’s 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 for consolidated Visteon. Sales for the first quarter of 2016 were $802 million, $14 million lower than first quarter 2015. The year over year decrease is more than explained by the sale of the German interiors facility in the fourth quarter of last year. Sales for our core electronics business increased by $12 million versus last year, reflecting higher production volumes and the impact of new business wins, which more offset unfavorable currency. Adjusted EBITDA was $89 million in the quarter compared to $78 million for the same period last year. Adjusted EBITDA for electronics was $94 million, $10 million higher than first quarter 2015. The $10 million year over year increase largely reflects increased production volumes, including the impact of new business. Adjusted free cash flow was an outflow of $28 million in the quarter.…

Thanks, Bill. Moving to slide 21, in closing, I want to reiterate that we are very pleased with our performance in the first quarter. We delivered strong sales growth which outpaced industry production volumes and grew our backlog to $15.6 billion, a $1.1 billion increase in the last nine months. And we achieved the highest quarterly adjusted EBITDA margin since our acquisition of JCI’s electronics business in mid 2014. We also continued to reward our shareholders by substantially completing our previously announced $2.75 billion capital return to shareholders. Visteon has been committed to driving shareholder value and that focus will continue in the years to come. I’m really proud of the work that everyone at Visteon has done during the quarter to drive our vision and mission and I’m confident that we have the right team in place to execute our strategy. I see significant long term opportunity for our employees, customers and shareholders as we continue to drive strong growth by investing in our core products and by expanding our customer and geographic footprint. Thanks for joining us today. Now, I would like to open the call for any questions.

[Operator Instructions] And your first question comes from the line of Brian Johnson with Barclays.

This is actually [Steven] Johnson. Just wanted to touch base on slide 9 here, it looks like you’re definitely stepping up your engagements with some Japanese customers. I’m just wondering what the strategic rationale is, what’s your thinking behind such emphasis on Japan and Japanese customers [indiscernible] most opportunities for Visteon moving forward? Any color you could provide there would be helpful.

So we have a significant amount of business today with Japanese OEMs, with customers such as Malta, Nissan and Mitsubishi. So we think that that’s the market that is very good for us today and also going into the future. As you know, with all of these new technologies especially in infotainment and our new SmartCore platform have opened up, Japan is one of the areas where we believe there is a lot of interest in looking at these technologies and that was further validated by the response that we saw with our tech shows. We had over, I think, about six technology shows in Japan with 400 plus attendees, so pretty good response.

And is that part of a function of the, call it, local supply base just not up to speed so to speak on more advanced cockpit electronics and infotainment devices or there is another reason for the overall emphasis on Japanese customers?

I think it’s two-fold. One, as far as Visteon is concerned, we’ve been in Japan for a long time. So it’s not like Visteon is new to the OEMs there and vice versa. So that’s one thing. The second is exactly what you referred to, which is some of the new technologies whether it is smartphone integration or this domain integration through hypervisor are now and it’s new and it’s very evolving and it’s a challenge for the entire industry, including the domestic suppliers in Japan. We do see by the way a slight opening for non-Japanese suppliers in traditional, what used to be considered as traditional Japanese supplier domains. So we see that the market over there is opening up and we want to be looking at the opportunities that that would present very closely.

And then just touching on the SmartCore technology, I believe we last had an update back in January I think at some electronics show, but just trying to gain a sense for what attraction is there with unpenetrated customers or even current customers. I know back at our conference in November, you prepared a nice slide that listed all your current customers for those potential opportunities and also unpenetrated customers, just want to know if you can give us an update on how that SmartCore technology is progressing with customers?

So this quarter, or I should say the first quarter was a very busy quarter for us from a business development perspective and especially with respect to SmartCore. We met with over six different OEMs across Japan, Europe and Asia, specifically now talking about SmartCore and this concept of domain integration is very exciting and interesting and we had really good discussions with all of them. That doesn’t mean that all of these OEMs will translate or convert into Visteon customers, but we are in fairly advanced stages of discussions with a couple of those, which we expect to be making a decision, I would say, in the second or third quarter of this year. But the fact remains that there is a lot of interest in this new technology. And while I fully expect that there will be other solutions that will emerge in the marketplace because the industry necessarily won’t just allow a single source in this space, we are ahead of the competition. So we are getting a lot of interest. There’s a lot of discussions that are happening in this space. Even this week, in China, where we are present at the Beijing Auto Show, where we demonstrated SmartCore, that was one of the product that garnered the most interest and I expect to see also new business opportunities open up in China as a result of that.

Your next question comes from the line of Itay Michaeli with Citi.

This is actually [Justin] on behalf of Itay. So I just wanted to touch real quickly upon the backlog, the $1.2 billion that you quoted. Can you give us some color maybe on a breakout between existing and new customer split, the location of the business wins and maybe give us a sense of what product lines those came from?

So the $1.2 billion of new business, you can imagine that the breakdown of the product mix there reflects fairly closely the product mix that we shared with you on slide 3 in our quarterly sales. So the breakdown still reflects what we currently see in shipping in the business, which is good. One thing I would say is that I’m extremely happy with how our new business wins have developed over not just the last quarter, but over the last nine months since I’ve come here. With over 8% of the backlog growth over that period, I think that’s a really strong statement of our customers’ confidence in Visteon, in our technologies and our products. I would like to remind everybody that if you were to go back a couple of years, the backlog and the new business wins at both Visteon and then JCI was fairly challenged on account of the situation that those two companies found themselves in at the time. And I’m very happy to see that in a short period of time that we have been able to really rebuild confidence in Visteon amongst the customer base and an 8% growth over a three quarter period, I think, is a tremendous accomplishment on part of the team and I’m really happy about that. Now, the question about the breakdown and where we stand with respect to the product mix, I would say that our core products of instrument clusters, displays, head-up displays, SmartCore and also entry and mid infotainment are extremely competitive. We continue to win really good business in these product categories, even infotainment that most people don’t imagine or don’t link to Visteon. We won five new awards over the last nine months. And I’m very confident with the new emphasis that we have put on infotainment with the new platform that we’re developing that we will continue to see more wins which to us is upside. The revenue guidance that we have given you for 2016, 2018, and 2020 does not necessarily count on any significant new product wins in those categories. So I’m pretty happy with where we stand. This is a strong momentum that we are accumulating here and I think the outlook as a result of that for the rest of the year should be pretty good.

If I could also sneak in one more quick question, when I’m thinking about obviously the technology profile that you have for cockpit electronics, how dependent is Visteon on like mid and upper [trim] level mix, so within a given car, the higher mix versus low, how dependent are you guys with regards to your technologies on the mix distribution?

In general, higher trim levels obviously drive more content. That is generally the case and that’s true for cockpit electronics across the board. It’s not just for Visteon; I would say that’s true for all suppliers in this space. So having said that, we have more than other suppliers more products that go across all trim levels, okay, instrument cluster is a very good example of that. The other thing that we are starting to see which is very new and something that I think really adds to our story is for products like the head-up displays are starting to migrate into trim levels that in the past did not carry these products. So combined head-up displays is one of the fastest growing new product segments in the industry and we are extremely well positioned with respect to this particular product segment. So although, in general, we obviously benefit from higher sales at the higher trim levels, we are starting to see a reverse migration of these products into lower trim levels as well. So net-net, I do not look at that as either a benefit or a loss of any form. I think in general the growth numbers that we have talked to you about of the industry as well as for Visteon we are pretty comfortable with that. I think there is a secular long term growth in cockpit electronics that’s occurring across all of the trim levels, which should bode well for the industry.

Your next question comes from the line of Colin Langan with UBS.

This is [Eddie] on for Colin. I had a quick question, I was wondering if you can give an update on your view on connected technology? It looks like a lot more opportunities are opening up in this space, I’m just wondering if you’re getting any traction with customers on your capabilities for over the air update or vehicle to vehicle?

So in general, Eddie, what we see happening is all of the products that we offer or virtually all are affected by the cars getting connected. So it’s not specifically just the telematics product opportunity, but we see that over the air update capabilities affecting instrument clusters, infotainment and other products as well. So the whole industry has to essentially reengineer the products to be able to address this new requirement. Now, along with the good, there is also some concerns and the concerns are largely on account of security. So one of the things that we have done here at Visteon where we will be absolutely at the cutting edge of this industry is that all of our products will be built on very secure condition. As I have indicated in one of the slides in this deck that we have recruited some of the top notch talent to bring this capability in-house. We don’t want to rely on third party solutions because some of the solutions have to be built from the ground up. So the new infotainment platform that we have already started work on, in fact late last year and will be ready by that end of this year to really talk seriously about it to customers will be one of the most secure connected infotainment platforms out there. So to us, it’s a big positive, because it’s creating opportunities, it is dislodging sometimes incumbents who do not have a strong technical solution. And on the other side, the risks that cyber security and others are creating, I think, it also gives us an opportunity to showcase our capabilities and [success] in this area. Now, specifically with respect to telematics, that’s a slightly different story. There the issue is more on account of how the industry…

And then another small question, it looks like your SG&A as a percentage of sales is running a little bit higher than it was last year, do you have any update on your progress at getting this down?

I think that may not be exactly true. I think our SG&A was 6.4%, if I remember right, which is below or at the same level last year, it cannot be higher, because we won’t let it. And we are very focused on this. This is an area where we are putting in tremendous amount of management time and effort to ensure that we are in line with the guidance that we have given you earlier in the year. And I think we are on track to be able to achieve our guided number.

Your next question comes from the line of Matt Stover with SIG.

I just had a question about the potential impact of the earthquakes in Asia are in providing this guidance. And I’m wondering if you could talk about the impact of supply chain thus far, what you’re hearing from suppliers based on system related stock, when this might likely manifest as an issue and I guess just generically is the system being a little bit better prepared in light of what happened in Fukushima a few years ago?

So Matt, what I would first say is that we are extremely thankful that none of our facilities have been affected. That’s the first thing I would say there. Now, with respect to the supply situation, there is an impact and at the same time we are just now really starting to understand the scope of the impact as well as the backup and recovery plans of the suppliers. So this is a very dynamic situation. We are in daily calls both with suppliers and our customers. And so this is a picture that will remain dynamic, I would think, for the next two to three weeks before some clarity will emerge with respect to when and how big would the impact be. I do not expect to see an immediate impact on account of the – just the product that we have in the pipeline, but we will start to probably see some impact in Q2. But I cannot at this point really put a scope and a size on it for you. We will continue to communicate that out as we know more and that’s the best and the most accurate picture I can give you at this point in time.

Does it feel like the system has sort of adapted in light of Fukushima, just it’s not necessarily as big, certainly had been a issue, no doubt there, but is this – do you think – it just feels as disruptive as it was at that time?

It is certainly not at the same level as the last incident, but it is still an issue because there are a few parts that – it’s not just our direct suppliers, but also the sub-suppliers. And sometimes the smaller suppliers may not be in a position to really take the actions necessary. So I would say generally it’s a smaller size of scope as compared to the previous ones. And so hopefully and I’ll just say this very openly really, just hopefully it’s not something that will be of a material impact, but we’ll see more as time goes by.

Your next question comes from the line of Ryan Brinkman with J.P. Morgan.

This is Samik here on behalf of Ryan. Sachin, if I may ask you a strategic question here, when I look at your goal of being a top three player cockpit electronics and I look through the different sub-segments in cockpit electronics, you’re obviously there in the top three in a few of them, but also sort of far away from the top three in a few of those. So just thinking about it, probably like aggressively forcing acquisitions in the ones that you are not top three the way to get there eventually, is it even a target to be top three in each of those segments, maybe if you can sort of share your thoughts on that.

This is a question that we are discussing internally all the time. So let me share with you what we internally here are setting ourselves up to do. So in this industry, as I’m sure you are aware, it’s extremely important to have, from a technology viewpoint, an extremely competitive product, that’s number one. But we also must have really great capabilities in product development and system integration. Safe launch, as it is called, is one of the most important things that drive your future success. And the third is cost. So as has been indicated already on account of the high number of launches that we have executed very well last year and also in this quarter, Visteon’s capabilities in product development and system integration are very strong. On the technology front, it was a mixed bag. We were strong in instrument clusters and are strong in instrument clusters. I would strong in head-up displays, in displays, SmartCore, but with infotainment we were strong in entry and mid, but not in high. And telematics is a different issue. I talked about it earlier. It’s an issue of catching up and staying current with the 4G evolution. So what we are doing here to really get to that top three across the board is really focusing on closing the gap in all of our product segments from a technology viewpoint, strengthening our product development and system integration capabilities. And here let me remind us all that we are probably one of the only tier 1 suppliers that can build and deliver product in Europe, in Japan, in North America, in China and India. And I’ll give you a great example of that. As we speak, we are developing head-up displays in all of these five markets simultaneously. Very few companies…

Secondly, just on the margin delivery here, I mean, I know you called out the seasonality of the margins for 1Q and also some benefit from warranty, but still looking at the margin that you delivered in this quarter, it does seem like when I go back and look at what your mid-term margin expectations were, which were like 12% for the business, it does look like you can get there before even sort of a mid-term time period and probably if you can help where is your expectation for margin now different than what it was and what’s really driving that, is it like higher margin content that you’re now executing on, anything that you can help on that?

First of all, I would say that I’m really pleased with how margin has developed in this quarter. I think credit to the team for executing a clean and well-run quarter. Having said that and we have talked about the seasonality of the business with the first quarter and the fourth quarter being stronger than the middle quarters, but on a year over year basis the actions that we have taken will continue to see results in improved margin. However, when we talk about us achieving the levels that we have previously guided and when we might be able to achieve it, what we have said in the past is that the way we would get there is by half of the benefit coming through the cost savings initiatives and the other half from scale. Now, we control the first part of that in the sense that we have a good line of sight on controlling costs in engineering and SG&A and we are already starting to see progress in those directions. But when it comes to scale, this is anybody’s guess is just as good as mine in terms of how the market will develop. Although we are optimistic, we’re also cautious on account of what we have recently seen with respect to the retail environment. And so since this is just the first quarter and it’s a very good first quarter gives us a lot of confidence and hope, but since it’s just one of the quarters, the first quarter, I would rather leave it to that and say we will see how the second quarter develops and the outlook for the market. So far, none of the customers have changed any of their production plans in any significant manner, but we just talked about the earthquake, we have this retail environment that we need to understand better before we can really comment on how the margin may develop beyond what we have guided you at this point.

Your next question comes from the line of Brian Sponheimer with Gabelli.

I just to spend a little more time on your thoughts on the retail environment in North America and potentially when you see softness, is it more of a mix issue where you have a little more exposure on cars than SUVs and trucks or is this something that you think has a little bit more breadth to it where you think the industry itself needs to or you are expecting some significant production cuts in the back half?

So from our viewpoint, Brian, as you know, we look more at the production numbers than the retail sales or sales in general, although we keep close tabs on it, because it’s sort of a leading indicator for us. Having said that, in the first quarter, North America was really strong both in terms of production and sales. And at the level that we are at, I think we would [be vice] to just be cautious in terms of where the outlook for both sales and production may look like for the remainder of the year for North America. We are at the same time more optimistic about the production levels in Asia, which were suppressed in the first quarter. We expect that to rise in the later the year, later part of the year. But the other thing I would like to add here, irrespective of the general sales environment and the production environment, the level of the size that we are, we are driven far more by product launches than the general market condition. So this is something that we have internally been very focused on, which is to try to execute and launch products on time because those product launches drive our revenues and sales. And even in a [flat side] environment, I would expect that we can still drive sales growth on account of the number of product launches that we have in the pipeline and the new business wins that we are getting. As long as we continue to win business at the rate or higher that we have been over the last nine months, I would be a little less concerned of how the retail environment or the production levels are shaping up.

Just regarding the teammates that you brought on, how full do you think that line up is now and are there any specific areas where you think you might want to add some talent, understanding that you’re always looking for the best in the business?

Brian, that’s a really good question and the answer to that obviously isn’t as simple answer in terms of number, but I like to share with you what we’re trying to create here. So as we have been talking about it for the past several quarters now, we want to emerge as a technology leader in this space. This is a great time for a company like Visteon to do exactly that. The technologies are moving at a furious pace across all of our product segments. I’ll give a small example, instrument cluster, which a lot of people think of as perhaps not such a sexy product is getting a lot of attention these days on account of the 3D capabilities that are now emerging in this product category. But that’s the case for us across all products. So what we want to do is to really bring in the kind of capabilities that allow us to achieve this technology eminence in all of the product segments. Now, on top of that, we have to also get into the new areas of ADAS and autonomous driving. So what we will be focused on doing here is that we will continue to bring new talent on board and upgrade existing talent. We are extremely focused on our SG&A cost at the same time. So we’re doing it in a way that is extremely planned and that there shouldn’t be any surprises. So that allows us to invest in this new product platforms that we have been talking about, infotainment and ADAS and so on, at the same time keep our cost under control. And I think this is how we will emerge in the coming quarters as one of the leaders in this industry. Somebody asked a question earlier about how do we get into the top three. You cannot just do that by having a plan. You have to back it up with then the right people, process and tools as I call it to be able to achieve that objective. And so we will be on a continual sort of path improving our capabilities across people, process and tools and we just highlighted the few that we have already – the step that we have taken with respect to people that we are very happy to report and the level and caliber of the people that are coming to Visteon, I think that’s a huge vote of confidence in the culture and in the direction that we’re headed.

And one last one, and apologies to Bob for not asking this prior, but with the balance sheet and $400 million plus in net cash and with the understanding that the repo authorizations been exhausted, how do you think about the balance sheet going forward in balancing acquisitions versus even the opportunity for more buy backs here?

The first thing, Brian, I would say is this company has been extremely shareholder friendly when it comes to returning excess capital. And over the last three years, I believe if I’m not mistaken there’s over $3.5 billion of capital that has been returned in the combination of share buyback and cash distribution. So that should give everybody comfort that you have a company here that is focused on value creation for shareholders. That’s number one. Now, the specific question that you asked how do we see it, let me also share with you what our philosophy is with respect to acquisitions. Our philosophy with respect to acquisition is really designed to achieve two objectives. The first objective is to grow our technical expertise in areas of technologies that are critical to our future success, okay. Now, AllGo, which is an acquisition that we have recently made, is a good example of that. Now, these acquisitions tend to be fairly small, you can think of them as bolt-on acquisitions, and we don’t see a need for a high number of them either. But that’s one category of acquisitions. The other category is acquisitions where we can benefit through increase of scale. And here, again, the JCI acquisition is a great example of that where we have shown that we can acquire a fairly large sized acquisition and integrate it and deliver the synergies as we have shown in the past several quarters. We are open to both, but on the latter, we do want to make certain that the acquisition has to be accretive to our financials in the same year and that will continue. We will not do any large acquisition that is not accretive. And so I would like everyone to understand given the cash that we have on our balance sheet that our philosophy of acquisitions hasn’t changed. And with respect to how I feel about the balance sheet and capital allocation strategy, I do recognize that we will need to be looking at this very closely and I will do that once we have a CFO on board, this is going to be one of the things that will be my top priority as we go forward.

Your final question comes from the line of David Leiker with Baird.

This is [Joe] for David. I’ll hold my question to one. I’m listening to NXT’s analyst day side by side to your call, and it’s pretty telling that in the chip space, in the silicon space, automotive is maybe one of the surest growth opportunities for the chip guys. Is that allowing you to do more with your products than you might have otherwise done in the past? And I’m just thinking you might have been fighting tooth and nail to get the silicon guys on your side historically, now they want to be working with you, so how does that change the go-to-market and what you can bring to market from a timing standpoint?

That’s a great question, Joe. And the answer is we absolutely see that dynamic where the automotive is now where the growth of the silicon industry is. I might have said this in the past, automotive represents now I think about 10% of the total silicon market, but it’s growing the fastest within all of the segments in the semiconductor space. So we are getting a lot of attention and that’s certainly helping us. A great example is on how we are able to take advantage of the new silicon capabilities in terms of virtualization, in terms of domain integration and this is extremely good for the automotive industry at large, not just for Visteon, but entire industry. I’ve said this before that silicon content as well as in general cockpit electronics content is growing at a rate that OEMs are not necessarily able to pass that cost on to their customers. So overall, we are extremely focused on driving the cost of the capabilities and features that we are developing down. And one way to do that is to leverage silicon because that is one of the largest cost factors of the overall solution. So we are starting to see now the benefit of the investments that these large silicon suppliers are making specifically for automotive, which was not the case in the past and that will really help in generally broadening and growing the market. And this is where we expect to be at the forefront of hopefully taking advantage of some of that.

Thank you very much, Sachin and Bill. I would like to thank everyone for their participation in today’s call. If you have any additional questions, please feel free to contact me at your convenience. This concludes Visteon’s first quarter 2016 earnings call. You may now disconnect.