Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2023 Earnings Presentation
20 slides from Autoliv's earnings presentation, Apr 21, 2023
Slide 1: More Lives Saved – More Life Lived: Q1 2023 Earnings Call Presentation
More Life Lived More Lives Saved – More Life Lived Earnings Call Presentation 1st Quarter 2023 April 21, 2023 April 21, 2023 ALV – Q1-2023 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: Q1'23 Key Highlights
Q1’23 Key Highlights Strong sales growth and outperformance ▪ Strong sales increase supported by launches and price increases − Executing on our strong order book − Outperforming LVP significantly in all regions ▪ Challenging operational environment, especially in Europe − Inflation pressure from la
Slide 4: Adjusted Operating Margin Progression
Adjusted Operating Margin* Progression Gradual improvement quarter by quarter ‒ expect similar quarterly pattern as in 2022 Adjusted Operating Margin* % Sequential margins improvement expected from: ▪ Gradually increasing cost compensations through price 10% Full year increases and other recoveries
Slide 5: Sales Growth and Regional Sales Split
Q1’23 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q1´23 US$ (Millions) % China 18% Europe 29% Japan Asia 9% 38% Rest of Asia 11% Americas 33% 21% Organic growth* (*) Non-US GAAP measure. 5 April 21, 2023 ALV – Q1-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Right
Slide 6: Organic Sales Growth - Outperforming Global LVP by 15pp
Q1’23 Organic Sales* Growth - Outperforming Global LVP by 15pp Outperformance - Organic growth* vs. LVP** (Percentage points) CHINA EUROPE +14pp +16pp JAPAN +17pp AMERICAS +7pp Rest of ASIA +12pp (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ Apr
Slide 7: Financial Overview
Q1’23 Financial Overview Strong sales and profit development Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 17% $63 $116 $2,493 $131 $2,124 5.3% Adj. Op. Margin* $68 $70 3.2% Adj. Op. Margin* Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Q1´23 -$
Slide 8: Key Model Launches
Q1’23 Key Model Launches 8 April 21, 2023 ALV – Q1-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 9: Financial Overview
Q1’23 Financial Overview (US$ Millions unless specified) Q1’23 Q1’22 Sales $2,493 $2,124 Gross Profit $379 15.2% $288 13.6% Adj. Operating Income1 $131 5.3% $68 3.2% EPS (assuming dilution) $0.86 $0.94 Adj. RoCE1,2 13% 7.4% Adj. RoE1,2 12% 6.1% Operating cash flow -$46 $70 Dividend paid per share $0
Slide 10: Adj. Operating Income Bridge
Q1’23 Adj. Operating Income* Bridge vs. prior year $63 US$ Millions A result of our actions, including: • price increases • cost saving activities • higher volumes • lower premium freight This was partly offset by substantial inflationary pressure from labor cost, logistics and utilities (*) Non-US
Slide 11: Cash Flow
Cash Flow Capex and D&A Temporary negative WC development due to strong sales in March (US$ Millions unless specified) Q1´23 Q1’22 2022 2021 Net Income $74 $83 $425 $437 Depreciation & Amortization 92 95 363 394 Other, net3 -10 -91 -133 -15 Change in operating WC -202 -18 58 -63 Operating cash flow
Slide 12: Debt Leverage Ratio
Debt Leverage Ratio* Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ Millions 3.0 $2,000 2.5 $1,500 2.0 1.6x 1.5 $1,000 0.5-1.5x 1.0 Long-Term Long-Term Target: 1.0x Range $500 0.5 0.0 Net Debt EBITDA Q1´20 Q1´21 Q1´22 Q1´23 ▪ Our Net Debt* increased by $298M from Q4’22 ▪ EBITDA LTM in
Slide 13: Autoliv's First Green Bond
Autoliv’s First Green Bond ▪ € 500 million Green Bond issued using Autoliv’s Sustainable Financing Framework ▪ Framework aligned with the ICMA Green Bond Principles ▪ Carries a coupon of 4.25% ▪ Eligible use of proceeds categories: − Clean Transportation − Renewable Energy − Energy Efficiency − De-c
Slide 14: Refinancing - Strong Liquidity Position
Refinancing - Strong Liquidity Position Debt Maturities* US$ Millions ▪ Significant liquidity cushion with $1.8 billion in cash and unutilized credit facilities as of March 31 ▪ Average interest rate for debt portfolio of around 4.7% ▪ Credit rating from S&P Global: BBB (stable) ▪ None of the credit
Slide 15: Light Vehicle Production Outlook
Light Vehicle Production Outlook Light Vehicle Sales LTM (Million units) North America, Production in the region is projected to increase by more than 5% in 2023. However, due to recessionary fears and increasing inventory levels, most notably among the US manufacturers, the forecast for second half
Slide 16: Full Year 2023 Indications
Full Year 2023 Indications Full year indication LVP growth ~3% Organic sales increase1 Around 15% FX Around negative 1% Adjusted Operating margin1 ~8.5 to 9% Tax rate2 Around 32% Operating Cash flow2 Around $900 million Capex, net % of sales Around 6% (1) Non-US GAAP measures. Adjusted Operating mar
Slide 17: Welcome to Autoliv Investor Day 2023
Welcome to Autoliv Investor Day 2023 June 12, 2023, Autoliv Technical Center Auburn Hills (Detroit), Michigan Focus areas ▪ Our journey towards our targets ▪ Medium- and long-term growth opportunities ▪ Product, technology and innovation opportunities for future mobility ▪ Opportunities in automatio
Slide 18: Saving More Lives
Saving More Lives Saving More Lives 18 April 21, 2023 ALV – Q1-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 19: Q1'23 Product Volumes
Q1´23 Product Volumes Autoliv Quantities Delivered Q1´23 vs. PY** (%) (Millions unless specified) Seatbelts 36.2 10% ▪ Pretensioners (of which) 23.9 14% ▪ Active Seatbelts (of which) 1.3 4% Frontal Airbags 15.4 12% ▪ Knee Airbags (of which) 1.7 9% Side Airbags 29.7 23% ▪ Chest (Thorax) 15.8 23% ▪ He
Slide 20: Date Presentation Name
Date Presentation Name Copyright Autoliv Inc., All Rights Reserved Public