Autoliv, Inc. · NYSE:ALV
Autoliv — JP Morgan Auto Conference 2021
26 slides from Autoliv's conference presentation, August 2021
Slide 1: Autoliv JP Morgan Auto Conference
Autoliv JP Morgan Auto Conference August 2021 1 Autoliv August 2021 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 t
Slide 3: Q2´21 Highlights
Q2´21 Highlights Solid growth despite global LVP affected by semi-conductor shortages ▪ Market developments − Resource bottlenecks in global supply chains hamper industry growth more than expected − Volatile LVP creating operational challenges and inefficiencies ▪ Strong organic sales growth − Stron
Slide 4: Q2´21 Financial Highlights
Q2´21 Financial Highlights Strong recovery from last year despite lower than expected LVP Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 93% $337 $191 $2,022 8.2% Adj. Op. Margin* $63 $166 -16% Adj. Op. Margin* Q2´20 Q2´21 Q2´20 Q2´21 $
Slide 5: Q2'21 Sales Growth
Q2’21 Sales Growth Outperforming global LVP by more than 30 percentage points Regional Organic Growth* vs. LVP** EUROPE ALV LVP JAPAN 136% 98% ALV LVP 71% 52% AMERICAS ALV LVP 181% CHINA 159% ALV LVP 0% REST OF ASIA -5% ALV LVP 80% 99% (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) acco
Slide 6: Q2´21 Financial Overview
Q2´21 Financial Overview (US $ Millions unless specified) Q2’21 Q2’20 Q2’19 Sales $2,022 $1,048 $2,155 Gross Profit $384 19.0% $14 1.4% $400 18.6% Adj. Operating Income1 $166 8.2% -$172 -16.4% $183 8.5% EPS (assuming dilution) $1.19 -$2.00 $1.25 Adj. RoCE1,2 18% -18% 20% Adj. RoE1,2 16% -24% 24% Ope
Slide 7: Q2´21 Adj. Operating Profit Bridge
Q2´21 Adj. Operating Profit* Bridge vs. Prior Year 25 pp $ (millions) 424 M $166M ~39% leverage (excl. FX, raw mtrl and gov. support) on higher sales as a result of improved productivity and effects from structural efficiency programs -8M -$172M -13M -25M -40M (*) Non-US GAAP measures exclude costs
Slide 8: Operational Leverage ~28% vs. prior Quarter
Operational Leverage ~28% vs. prior Quarter Adjusted Operating income* Headwinds & Tailwinds Operational Leverage $ (millions) $237M - Neg • ~8% lower LVP -10M Δ -$62M • Volatile LVP Δ Sales : -$220 M $166M + Pos • Productivity in labor • Headcount reduction >2,000 ~28% decremental margin excl. RM (
Slide 9: Cash Flow
Cash Flow Capex and D&A (US$ Millions unless Q2’21 Q2’20 Q2’19 LTM 2020 2019 specified) Net Income $105 -$174 $109 $550 $188 $463 Depreciation & 100 87 86 394 371 351 Amortization EC antitrust payment - - -203 - - -203 Other, net -16 -85 4 89 13 -17 Change in operating -125 44 -17 37 277 47 WC Opera
Slide 10: Leverage Ratio
Leverage Ratio In line with long-term target Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x $2,000 3.0 2.5 $1,500 2.0 $1,000 1.5 1.1x 0.5-1.5x $500 Long-Term Target: 1.0x Long-Term Q1´19 Q2´19 Q3´19 Q4´19 Q1´20 Q2´20 Q3´20 Q4´20 Q1´21 Q2´21 1.0 Range Net Debt EBITDA 0.5 ▪ Our Net Debt* in
Slide 11: Headwinds from Raw Material
Headwinds from Raw Material IHS Markit: U.S. hot-rolled sheet steel Several key raw material prices have continued to increase significantly in the quarter ▪ Cost Mitigation ▪ Raw material prices impact on our cost base is mitigated through: ▪ Negotiations with suppliers ▪ Consolidation of supply ba
Slide 12: Light Vehicle Production Outlook
Light Vehicle Production Outlook Uncertainty prevails FY21: Light Vehicle Sales LTM (Million units) North American The auto industry has struggled to meet consumer demand in recent months due to a global shortage of semiconductors. Production is expected to remain volatile because of the semiconduct
Slide 13: Full year 2021 indications from July 16, 2021
Full year 2021 indications from July 16, 2021 Full year indication LVP growth 9% to 11% Exchange rates3 FY’21 Consolidated sales increase, net Around 20 to 22% EUR / US$ 1.1960 Organic sales increase1 Around 16 to 18% US$ / JPY 108.94 Org. sales outperformance vs. LVP Around 7pp US$ / KRW 1131 US$ /
Slide 14: Autoliv Climate Targets
Autoliv Climate Targets ▪ Aims to become carbon neutral in its own operations by 2030 ▪ Aims for net-zero emissions across its supply chain by 2040 ▪ Is committing to the Science Based Targets initiative 14 Autoliv August 2021 Public Copyright Autoliv Inc., All Rights Reserved
Slide 15: Capital Markets Day 2021
Virtual Capital Markets Day 2021 November 16th, 2021 15 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 16: Safety in future mobility
Safety in future mobility 16 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 17: 1 350 000 reasons to do MORE
1 350 000 reasons to do MORE Driver/passengers of 4-wheeled vehicles Motorized 2 and 3-wheelers Europe Eastern Cyclists 5% Mediterranean 9% Pedestrians Americas 2% 48% 10% Others/Unknown 3% 27% South-East 18% 39% WORLD Asia 34% 11% 34% 3% 22% 2% 15% 16% 25% 17% 23% 29% Africa 4% 14% 7% 43% Western 4
Slide 18: A new era of mobility – game changers
A new era of mobility – game changers ELECTRIFICATION CONNECTIVITY AUTOMATION SHARED MOBILITY 18 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 19: Adjacent Opportunities
Adjacent Opportunities High Voltage Disconnect Devices for Electric Vehicles ▪ Market: Many new EVs have batteries with >500 V (ex. Porsche, Audi, Hyundai…..) ▪ Advantages: cost and packaging size for high voltage batteries ▪ Development and Industrialization: ▪ Mersen will bring pyro-switch - fuse
Slide 20: Future crashes "100% ADAS" – Analysing the residuals
Future crashes “100% ADAS” – Analysing the residuale Four scenarios cover 90% of future crashes resulting in severe and fatal injury Most frequent injuries will be on head, thorax, and spine 20 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 21: Occupant protection: Today and Tomorrow
Occupant protection: Today and Tomorrow Standardised ATD position Traditional crash configurations Today New identified crash configurations New seating positions Tomorrow 21 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 22: Reclined Seating Requires Belt in Seat
Electric Car Sensor Reclined Seating Requires Belt in Seat ▪ Benefits − Protection for a diverse population requires increased adaptivity − AEB and real-life safety need additional/reversible pretensioners − Improved comfort and convenience ▪ Belt in Seat 2025 BiS 2025 Std / Premium − Premium – Reve
Slide 23: HMI, User Experience and Driver Monitoring
HMI, User Experiance and Driver Monitoring ▪ Steering Wheel 2025 with HoD, heating, multi-modal HMI and contextual touch pads ▪ Stowable steering wheel to allow for flexibility ▪ Driver monitoring by vital measurements ▪ Multi-functional seat belt for comfort, vital signs and HMI 23 Autoliv August 2
Slide 24: Pedestrians and bicyclists - Countermeasures
Pedestrians and bicyclists - Countermeasures ▪ External airbags to prevent head injuries (30% risk reduction) CAR (40 KM/H) TO CYCLIST (15 KM/H) ▪ Hood lifter to prevent head, chest and upper extremity injuries Reference AEB 24 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 25: PTW Rider Protection With and Without Airbag
PTW Rider Protection With and Without Airbag 46% risk for concussion with unconsiousness 100% risk for 2 or more fractured ribs 12% risk of concussion with unconsiousness 3% risk of 2 or more fractured ribs 25 Autoliv August 2021 Copyright Autoliv Inc., All Rights Reserved
Slide 26: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com