Slide 1: Earnings Call Presentation 1st Quarter 2024
More Lives Saved More Life Lived Earnings Call Presentation 1st Quarter 2024 April 26, 2024 April 26, 2024 ALV – Q1 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 2: Safe Harbor Statement
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 A
Slide 3: Q1'24 Key Highlights
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 safet
Slide 4: Q1'24 Sustainability Highlights
Q1´24 Sustainability Highlights ▪ € 500 million Green Bond issued using Autoliv’s Sustainable Financing Framework − Framework aligned with the ICMA Green Bond Principles − Carries a coupon of 3.625% − Proceeds can be allocated according to the Framework’s Use of Proceeds categories, including decarb
Slide 5: Significant Sequential Cost Improvements
Significant Sequential Cost Improvements Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM Sales in relations to Average Headcount % US$ (Millions) and in relations to sales US$ (Millions) 300 11.0% 1,250 140 20% 120 250 10.0% 1,050 18% 100 200 9.0% 850 80 16% I
Slide 6: Q1'24 Financial Overview
Q1’24 Financial Overview Strong sales and profit development Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) +5% +52% $168 $2,615 $2,493 $199 7.6% Adj. $122 Op. Margin* $131 5.3% Adj. Op. Margin* Q1’23 Q1’24 Q1’23 Q1’24 Q1’23 Q1’24 -$46
Slide 7: Structural Cost Reduction Initiatives
Structural Cost Reduction Initiatives Simplifying our logistics and geographic footprint to significantly lower our cost base Structural Cost Reductions Annual Savings US$ (Millions) ▪ Continue to actively address our cost base to accelerate the journey towards 140 our financial targets 120 ▪ All di
Slide 8: Q1'24 Sales Growth and Regional Sales Split
Q1’24 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q1´24 US$ (Millions) % China 18% Americas 34% Japan Asia 7% 37% Rest of Asia 12% Europe 29% 5% Organic growth* (*) Non-US GAAP measure. April 26, 2024 ALV – Q1 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights R
Slide 9: Q1'24 Organic Sales Growth - Outperforming Global LVP by 6pp
Q1’24 Organic Sales* Growth - Outperforming Global LVP by 6pp Outperformance - Organic growth* vs. LVP** EUROPE JAPAN +6pp AMERICAS CHINA +14pp +1pp +5pp Rest of ASIA +17pp (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ April 2024 April 26, 2024
Slide 10: Q1'24 Key Model Launches
Q1’24 Key Model Launches April 26, 2024 ALV – Q1 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: Q1'24 Financial Overview
Q1’24 Financial Overview (US$ Millions unless specified) Q1’24 Q1’23 Sales $2,615 $2,493 Gross Profit $443 16.9% $379 15.2% Adj. Operating Income1 $199 7.6% $131 5.3% Adj. EPS (assuming dilution) $1.58 $0.90 Adj. RoCE1,2 20% 13% Adj. RoE1,2 21% 12% Operating cash flow $122 -$46 Dividend paid per sha
Slide 12: Q1'24 Adjusted Operating Income Bridge
Q1´24 Adjusted Operating Income* Bridge vs. prior year $68 US$ Millions Operations Primarily driven by: ▪ cost saving activities ▪ higher volumes ▪ commercial recoveries partly offset by inflationary pressure (*) Non-US GAAP excluding effects from capacity alignment and antitrust related matters Apr
Slide 13: Cash Flow
Cash Flow Capex and D&A Strong performance from working capital and higher net income (US$ Millions unless Q1´24 Q1’23 LTM 2023 2022 specified) Net Income $127 $74 $541 $489 $425 Depreciation & Amortization 96 92 381 378 363 Other, net3 14 -10 -96 -119 -133 Change in operating WC -114 -202 323 235 5
Slide 14: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales 35% 30% 25% Since Q1´19 Trade WC has improved by ~$500M 20% 15% 0 10% 5% 0% Trade working capital Linear (Trade working capital) April 26, 2024 ALV – Q1 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 15: Debt Leverage Ratio
Debt Leverage Ratio* Virtually unchanged during the quarter despite higher share repurchases Net Debt * / EBITDA* Net Debt* and EBITDA* per the Policy Times US$ Millions 2.0 2,000 Net Debt EBITDA LTM 1.5 1.3x 0.5-1.5x 1,500 Long-Term Target: 1.0x Long-Term 1.0 Range 1,000 0.5 500 0.0 Q2´22 Q3´22 Q4´
Slide 16: Strong Balance Sheet & Cash flow Supporting Shareholder Returns
Strong Balance Sheet & Cash flow Supporting Shareholder Returns Repurchased 6.5 million shares for $627 million under current mandate Shareholder Returns US$ Millions Share Repurchases Dividends ~$1.5 billion in direct shareholder returns over the last 5 years 471 352 115 217 224 225 224 165 54 0 20
Slide 17: Efficient Balance Sheet to Support Shareholder Returns
Efficient Balance Sheet to Support Shareholder Returns Return on Capital Employed1 Capital Turnover Rate2 % Times 25% 2.75 2.50 20% 5-year 5-year 2.25 average average 15% 2.00 1.75 10% 1.50 5% 1.25 0% 1.00 2019 2020 2021 2022 2023 Q1´24 2019 2020 2021 2022 2023 1) Annualized operating income and inc
Slide 18: Light Vehicle Production Outlook
Light Vehicle Production Outlook Autoliv expects global LVP to decline by ~1 % in 2024 Global Light Vehicle Production* (Million units) 24 -1.0% 23 +2.7% S&P Global: Light Vehicle Production* -2.4% 22 Q2´24 FY´24 -0.9% Region 21 YoY Chg. Million Units Y-o-Y Chg. 20 China 10.9% 28.5 1.6% Japan -1.0%
Slide 19: 2024 Business Outlook
2024 Business Outlook Adjusted Operating Margin* Development % ▪ Expect continued outperformance vs LVP ▪ Continued inflationary pressure – timing of customer compensations 12% ▪ Anticipated margins improvement from: − Call-off stability – direct labor efficiency 10% − Structural initiatives − Autom
Slide 20: Full Year 2024 Guidance
Full Year 2024 Guidance Based on global LVP declining ~1% Full year Organic sales increase1 Around 5% FX Around 0% Exchange rates US$/EUR 0.9221 Adjusted Operating margin1 Around 10.5% US$/JPY 149.76 Tax rate2 Around 28% US$/KRW 1333.5 US$/MXN 17.082 Operating Cash flow3 Around $1.2 billion US$/CNY
Slide 21: Saving More Lives
Saving More Lives Saving More Lives April 26, 2024 ALV – Q1 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 22: Q1'24 Product Volumes
Q1´24 Product Volumes Autoliv Quantities Delivered Q1’24 vs. PY** (%) (Millions unless specified) Seatbelts 36.3 0% ▪ Pretensioners (of which) 24.8 4% ▪ Active Seatbelts (of which) 1.1 -14% Frontal Airbags 15.9 3% ▪ Knee Airbags (of which) 1.9 1% Side Airbags 33.1 11% ▪ Chest (Thorax) 17.5 11% ▪ Hea