Autoliv : Presentation (2.18 MB)

Earnings Call Presentation

1st Quarter 2024

April 26, 2024

Safe Harbor Statement*

This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "estimates", "expects", "anticipates", "projects", "plans", "intends", "believes", "may", "likely", "might", "would", "should", "could", or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, general economic conditions, including inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain crisis, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; disruptions and impacts relating to the ongoing war between Russia and Ukraine and the hostilities in the Middle East in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy, and other costs; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations, or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

(*) Non-US GAAP reconciliations are disclosed in our regulatory filings available at www.sec.gov or www.autoliv.com

This presentation Includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast April 2024. All rights reserved.

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Q1'24 Key Highlights

Record first quarter sales and broad-based improvements

• Challenging market environment with declining and volatile light vehicle production**
• On track to achieve our full-year guidance
• • Outperformed LVP in all regions as a result of recent launches, pricing and higher safety content
  • Profitability improved significantly Y-o-Y driven by organic growth* and successful execution of cost reductions
  • Strong cash flow improvement driven by improved adjusted operating income* and trade working capital
• Our balance sheet and positive cash flow trend allowed for higher shareholder returns
• • Repurchased shares for $160 million
  • Paid a dividend of $0.68 per share
  • Debt leverage ratio of 1.3 times supports further shareholder returns
• Progressed with our structural cost reduction activities
• • Indirect headcount reduced by around 1,000, or by more than 5%
• Investing in a new steering wheel manufacturing facility in Hefei, China
• FY2024 guidance reconfirmed

(*) Non-US GAAP measures

(**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ April 2024

Significant Sequential Cost Improvements

2023 2024

Q1'24 Organic Sales* Growth - Outperforming Global LVP by 6pp

Outperformance - Organic growth* vs. LVP**

EUROPE

AMERICAS

Rest of ASIA

+17pp

(*) Non-US GAAP measure

(**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ April 2024

Q1'24 Key Model Launches