Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2007 Earnings Presentation
23 slides from Autoliv's earnings presentation, Oct 16, 2007
Slide 1: Teleconference Concerning the 1st Quarter Financial Earnings 2007
Teleconference Concerning the 1st Quarter Financial Earnings 2007 The Worldwide leader in Automotive Safety Systems PRIVATE
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that are not statements of historical facts, but instead are forward-looking statements. All forward-looking statements involve risks and uncertainties. Actual results could differ materially from those contained in forward-looking statemen
Slide 3: Sales Trend
Sales Trend US$ million 1 800 Moving 12 month average 1 600 1 400 1 200 1 000 800 600 400 200 0 Q1 Q2Q3 Q4Q1 Q2 Q3Q4 Q1Q2 Q3Q4 Q1Q2 Q3 Q4Q1 Q2Q3 Q4Q1 Q2Q3 Q4 Q1Q2 Q3Q4 Q1 2000 2001 2002 2003 2004 2005 2006 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 3 PRIVATE
Slide 4: Organic Growth vs Vehicle Production
Organic Growth vs Vehicle Production % 20 15 10 5 0 -5 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 2001 2002 2003 2004 2005 2006 2007 Change in Autoliv’s organic sales vs same quarter previous year. Change in Light Vehicle Production in the Triad v
Slide 5: Light Vehicle Production
Light Vehicle Production Units in thousands Q1 ´07 Q1 ´06 Change N. America 3,824 4,144 -7.7% - Detroit 3 * 2,477 2,808 -11.8% - New Domestic 1,347 1,336 0.8% Europe 5,466 5,413 1.0% - W. Europe 4,177 4,259 -1.9% - E. Europe 1,289 1,154 11.7% Japan 2,791 2,737 2.0% Total in the Triad 12,081 12,294 -
Slide 6: Autoliv's Production
Autoliv’s Production Q1 2007 vs Q1 2006 Units in thousands Change Seatbelts 27,972 13% Pretensioners 13,593 16% Frontal airbag 6,507 -1% Side airbag: Chest 5,986 12% Head 5,467 25% Steering wheels 2,772 18% L.V. production in the Triad 12,081 -1.7% Airbags 65% (66%) Seatbelts 35% (34%) (Incl. Steeri
Slide 7: Gross Margin
Gross Margin % 25 21.0 20.0 20.0 20 19.9 17.4 18.2 18.4 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001* 2002 2003 2004 2005 2006 2007 * Excluding Unusual Items in Q3, 2001. AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 7 PRIVATE
Slide 8: Raw Material Cost Impact
Raw Material Cost Impact Q1’07 vs Q1’06 % of impact Other metals 10% Impact in US$ million Steel 10% Zinc 50% Zinc 5 Aluminum Aluminum 3 30% Steel 1 Other metals 1 Total 10 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 8 PRIVATE
Slide 9: Operating Margin
Operating Margin % 12 10 9.0 8 8.1 7.6 7.4 7.2 6 6.9 6.8 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001* 2002 2003 2004 2005 2006 2007 * Excluding Unusual Items in Q3, 2001. AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 9 PRIVATE
Slide 10: Income Statement
Income Statement % of sales (US$ million) Q1 ‘07 Q1 ‘06 Change % Q1 ‘07 Q1 ‘06 Airbags $1,104.3 $1,038.8 6 65.0 66.0 Seatbelts 594.9 529.1 12 35.0 34.0 Total Sales 1,699.2 1,567.9 8 100.0 100.0 COGS (1,361.8) (1,237.9) 10 (80.1) (79.0) Gross profit 337.4 330.0 2 19.9 21.0 SG&A (92.3) (81.7) 13 (5.4)
Slide 11: Return on Capital Employed
Return on Capital Employed % 20 17.7 18 16 16.1 14 15.4 14.6 12 12.5 10 10.4 9.8 8 6 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001* 2002 2003 2004 2005 2006 2007 * Excl. Unusual Items in Q3 and adjusted for new accounting principles. AUTOLIV-AHO/IR/Power/Statu
Slide 12: Return on Equity
Return on Equity % 22 20 ** 18 ** 16.3 16 14 12 12.7 11.9 12.1 10 10.0 8 7.9 6 7.3 4 2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2001* 2002 2003 2004 2005 2006 2007 * Excl. Unusual Items in Q3 and adjusted for new accounting principles. ** Reported, including discr
Slide 13: Key Figures
Key Figures Q1 2007 Q4 2006 Q3 2006 Q2 2006 Q1 2006 Earnings/share (US$) $0.91 $1.27 * $1.48 ** $1.00 $1.13 Return on - equity (%) 12.1 17.2 * 20.6 ** 14.2 16.3 - capital employed (%) 14.6 16.2 12.5 17.7 17.7 Operating working capital (US$ million) 819 724 * 668 ** 568 552 - in % of LTM sales 13.0 1
Slide 14: Cash Flow
Cash Flow US$ million 2004 2005 2006 LTM Q1’07 Q1’06 Net income 326 293 402 380 73 95 Depreciation & amortization 298 309 303 310 80 73 Other non-cash items (12) 6 1) 12 12 0 0 Change in operating WC 68 (129) (157) (191) (63) (29) 1) 2) Cash from operations 680 479 560 511 90 139 4) Capex, net (313)
Slide 15: Headcount in High Cost Countries
Headcount in High Cost Countries Headcount 25 000 +524 -237 -158 20 000 +199 -726 -120 -20 -74 15 000 Temps Employees 10 000 5 000 0 March 31 June 30 Sep. 30 Dec. 31 March 31 2006 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 15 PRIVATE
Slide 16: Dividend Growth Rate >30%
Dividend Growth Rate >30% Cents/Share 40 35 30 25 : 33% R C AG 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2002 2003 2004 2005 2006 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 16 PRIVATE
Slide 17: Share Buybacks (MUSD)
Share Buybacks (MUSD) 40 221 Total amount spent: 960 MUSD 378 960 Total: 24.7 million shares Avg. 144 cost: $38.91 43 30 103 2000 2001 2002 2003 2004 2005 2006 2007 Tot. Share cost US$ 22.68 19.57 20.97 41.97 44.86 55.69 57.95 38.91 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 17 PRIVATE
Slide 18: Awards received for 2006
Awards received for 2006 • Toyota: • Ford: - Global: Global Contribution - Global: 4 World Excellence Award Technology & Development - Taiwan: Quality Performance Excellence Quality Performance Excellence - China: Ford World Excellence Silver Award - Europe: Quality Achievement Cost Management - Aus
Slide 19: Light Vehicle Production: North America
Light Vehicle Production North America Millions -7.7% -1.1% 5 +4.6% +2.9% 4 Total 3 2004 15.8M 2 2005 15.8M 2006 15.3M 1 2007 15.2M 2008 15.3M 0 Q1 Q2 Q3 Q4 Source: CSM, forecast April, 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 19 PRIVATE
Slide 20: Light Vehicle Production: Europe
Light Vehicle Production Europe Millions +6.1% +1.0% -4.8% +4.5% 6 5 4 Total 3 2004 20.3M 2005 20.2M 2 2006 20.8M 2007 21.1M 1 2008 21.4M 0 Q1 Q2 Q3 Q4 Source: JD Power LMC, forecast April, 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 20 PRIVATE
Slide 21: Light Vehicle Production: Japan
Light Vehicle Production Japan Millions 0.9% +2.0% -0.0% -1.1% 3 2,5 2 Total 1,5 2004 9.6M 2005 10.0M 1 2006 10.6M 0,5 2007 10.7M 0 2008 11.0M Q1 Q2 Q3 Q4 Source: CSM, forecast April, 2007 AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 21 PRIVATE
Slide 22: Outlook
Outlook Second Quarter 2007 Organic Sales + 2% FX + 4% Consolidated sales + 6% EBIT-margin as in Q1 Full Year 2007 Organic Sales > 3% EBIT-margin close to 8% AUTOLIV-AHO/IR/Power/Status Report/2007/1Q07 - 22 PRIVATE
Slide 23: Thank you
Thank you The Worldwide leader in Automotive Safety Systems PRIVATE