Slide 1: Earnings Conference Call Webcast: 1st Quarter Financial Results
Earnings Conference call Webcast 1st Quarter Financial Results April 22, 2015 Saving Lives Copyright Autoliv Inc., All Rights Reserved
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
Slide 3: Q1 Highlights
Q1 Highlights Strong start to 2015 Financial Performance • Organic Sales* growth 3.9%, 2pp better than LVP • Operating margin* 8.9%, better than expected • EPS* $1.42, includes $0.07 related to discrete tax items • RoCE* ~ 22%, RoE* ~ 15% • Operating cash flow $84M Capital Structure and Sharehol
Slide 4: Strong Performing Models
Strong Performing Models Contributing to solid organic sales* growth in Q1’15 Mercedes C-Class Ford Transit Mercedes B-Class VW Golf Hyundai Sonata Opel Corsa VW Passat Baojun 730 Land Rover Discovery Sport Active Safety organic sales* growth ~ 31% in Q1’15. (*) Non-US GAAP measure. ALV Q1’15 Earnin
Slide 5: Strong Volume Growth
Strong Volume Growth Unit growth exceeds LVP in essentially all product areas Autoliv Quantities Delivered Q1’15 vs. PY (Millions unless specified) Seatbelts 36.7 2% • Pretensioners (of which) 15.0 2% • Active Seatbelts (of which) 0.7 13% Frontal Airbags 11.8 4% • Knee Airbags (of which) 1.3 3% Side
Slide 6: Market Conditions
Market Conditions The macro environment remains mixed Asia FY’15 LVP * @ Apr. 16, 2015 Region Vehicles (Mil’s) YoY Chg. • China growth remains strong, Q2’15 LVP ~ 9% China 23.3 +7% • Japan LVP is expected to decline for FY’15, Q2 (8)% Japan 8.6 (5)% • RoA LVP growth of 2%, driven by India and Thai
Slide 7: Q1 Financial Overview
Q1 Financial Overview Solid financial performance (US$ Million’s unless specified) 2015 2014 Sales $2,174 $2,296 Gross Profit $423 19.5% $445 19.4% Operating Income* $193 8.9% $198 8.6% EPS* (assuming dilution) $1.42 $1.43 RoCE* 22% 23% RoE* 15% 13% Operating Cash flow $84 $185 Dividend** $0.54 $0.5
Slide 8: Operating Income Bridge: Q1'15 vs. Guidance and Prior Year
Operating Income* Bridge Q1’15 vs. Guidance and Prior Year Q1’15 vs. Guidance (90 bps better) Q1’15 vs. Prior Year (30 bps better) Operating Margin* 8.9%. (*) Non-US GAAP measure, excludes costs for capacity alignments and antitrust matters. ALV Q1’15 Earnings Release Presentation - 8 Copyright Auto
Slide 9: Cash Flow
Cash Flow Investments for growth in CapEx and shareholder returns (US$ Million’s unless specified) Q1 Q1 FY FY FY FY FY 2015 2014 2014 2013 2012 2011 2010 Net Income 36 131 469 490 486 627 596 Depreciation & Amortization 74 74 305 286 273 268 282 Other, net (20) (6) 42 43 10 38 57 Change in operatin
Slide 10: Segment Reporting
Segment Reporting Q1 2015 Organic Operating Margin CapEx D&A Growth * 2015 2014 2015 2014 2015 2014 Passive Safety *** 3.1% 3.5% 8.0% 6.6% 4.1% 3.3% 3.1% Airbags 3.1% Seatbelts 3.3% Electronics *** 7.6% 2.5% 5.3% 3.3% 3.5% 3.0% 2.9% Passive Safety (2.6)% Active Safety 31.4% Autoliv Group **** 3.9% 8
Slide 11: Looking Ahead: Q2'15 Guidance
Looking Ahead Q2’15 Guidance Sales • YoY organic sales* increase ~ 6% mainly related to strong growth in Active Safety and Europe as well North America and China • Sequential consolidated sales increase ~ 5% due to China and North America mainly Operating Margin* ~ 9% • YoY positive effect
Slide 12: Looking Ahead: FY'15 Indication
Looking Ahead FY’15 Indication Sales • YoY organic sales* increase > 6% mainly related to strong growth in Active Safety and Europe as well North America and China • YoY currency translation effect > (8)% primarily due to the strengthening US $ Operating Margin* ~ 9.5% • YoY positive effec
Slide 13: Financial Outlook
Financial Outlook Q2’15 FY’15 Sales Organic* ~6% > 6% Acquisitions / (Divestitures) - - Fx** > (10)% > (8)% Consolidated Sales > (4)% ~ (2)% Operating Margin* ~ 9% ~ 9.5% Exchange rates** Q2 2015 FY 2015 EUR / US$ 1.0754 1.0884 US$ / JPY 120.20 119.90 US$ / KRW 1091 1094 US$ / MXN 14.92 14.94 US$ /
Slide 14: Every year, Autoliv's products save over 30,000 lives
Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries ALV Q1’15 Earnings Release Presentation - 14 Copyright Autoliv Inc., All Rights Reserved