Autoliv, Inc. · NYSE:ALV

Autoliv — Investor Day (October 2015)

18 slides from Autoliv's investor day presentation, Oct 2, 2015

  1. Slide 1: Quality

    Quality Svante Mogefors October 2, 2015

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement* This presentation 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 t

  3. Slide 3: A Challenging Automotive Environment

    A Challenging Automotive Environment 3 Copyright Autoliv Inc., All Rights Reserved

  4. Slide 4: Industry Focus on Quality

    Industry Focus on Quality Increases as number of recalls surge Automotive Recalls (NHTSA)  Much lower tolerance from Customers 60 for any quality related issues in vehicles Japan 50 # of Vehicles, Millions  OEMs increasingly sensitive 40 ‒ Recalls decided for reasons which 30 previously would not

  5. Slide 5: Industry Focus on Quality

    Industry Focus on Quality Costs of non-quality issues and non-compliance are now becoming huge Recent example of non-compliance 5 Copyright Autoliv Inc., All Rights Reserved

  6. Slide 6: Our Recall Situation in Safety

    Our Recall Situation in Safety Number of vehicles recalled Industry Restraint Recalls* Autoliv ~1% 50 40 6% # of Vehicles, Millions 3% 30 4% 64% 4% 20 5% Seatbelt 10 Electronics 6% Airbag 0 2010 2011 2012 2013 2014 2015 YTD (*) Recall Databases 6 Copyright Autoliv Inc., All Rights Reserved

  7. Slide 7: Our Commitment to Quality

    Our Commitment to Quality Living Zero Defects our first strategic priority  Q5 rolled out in Nov. 2010 globally  Focused all employees towards the importance of quality  A journey towards zero defects  A common quality language Behavior 7 Copyright Autoliv Inc., All Rights Reserved

  8. Slide 8: Our Approach to Quality

    Our Approach to Quality A journey towards Zero Defects Quality in our Quality in our Quality in our People Products Processes Autoliv Quality Assurance System 8 Copyright Autoliv Inc., All Rights Reserved

  9. Slide 9: Living Zero Defects

    Living Zero Defects Decades of continuous improvement from design to final product Design robust products Buy flawless Product components Manufacture Development Supply flawless products Verify conformity Base Production of products Traceability, Quality Alert System Mistake and Issue Management Pro

  10. Slide 10: How we live Zero Defects every day

    Living Zero Defects How we live Zero Defects every day Design Manufacturing Prevention Learning APDS APS Alert Yokoten ”Tollgates” Similar to Toyota, Quick notification Global system 20 languages to concerned for sharing 10 Copyright Autoliv Inc., All Rights Reserved

  11. Slide 11: Go & See

    Living Zero Defects Built on strong engagement in entire organization ”Go & See” 11 Copyright Autoliv Inc., All Rights Reserved

  12. Slide 12: Workshops a powerful Zero Defects tool

    Living Zero Defects Workshops a powerful Zero Defects tool Step 1 Step 2 Step 3 Step 4 Step 5 Ensure Establish team Anticipate Make Active robustness Solve current and workshop potential Yokoten of all of previous problems plan / structure problems findings corrective actions 12 Copyright Autoliv In

  13. Slide 13: Impact of implementing Zero Defects Workshops

    Living Zero Defects Impact of implementing Zero Defects Workshops R07 10/22/2014 S25 4/27/2015 P10 4 /20/2015 $3 000 $17 500 $6 000 75% $14 000 62% $5 000 60% Monthly Scrap $2 000 $10 500 $4 000 at Zero Defect $1 000 $7 000 $3 000 $2 000 Lines $3 500 $1 000 $0 $- $0 okt-14 dec-14 feb-15 apr-15 jun-1

  14. Slide 14: Living Zero Defects

    Living Zero Defects Zero Defect activities rolled out in all plants in 2015 > 200 ZD lines by July 14 Copyright Autoliv Inc., All Rights Reserved

  15. Slide 15: Our continued journey towards Zero Defects

    Living Zero Defects Our continued journey towards Zero Defects focus on Q5 next steps An individual commitment to behavioral change It starts with me 2010 2015 2020 Tangibles focus, KPIs Intangible behaviors focus Q5 next steps 15 Copyright Autoliv Inc., All Rights Reserved

  16. Slide 16: It is about shaping our behavior and lead by example

    Living Zero Defects It is about shaping our behavior and lead by example  Blame More  Taking shortcuts  Curiosity  “Ticking in the box”  Proactive mindset attitude  Go & see  “Not invented here” attitude  Meet customer needs  Sub-optimization  Respect for standards  Politics  Feedback 

  17. Slide 17: In the end, it is also about pride and achievement

    Living Zero Defects In the end, it is also about pride and achievement We made it happen! Before… It is impossible… After!!! Too difficult… Everything is possible! 17 Copyright Autoliv Inc., All Rights Reserved

  18. Slide 18: Thank you!

    Thank you! Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries 18 Copyright Autoliv Inc., All Rights Reserved

Autoliv — Investor Day (October 2015) on 6ix