Autoliv, Inc. · NYSE:ALV
Autoliv — IPO Roadshow (March 2012)
26 slides from Autoliv's IPO roadshow presentation, Mar 2, 2012
Slide 1: Driven for Life – Senior Notes
Driven for Life Senior Notes Autoliv Inc. March 1, 2012 Copyright Autoliv Inc., All Rights Reserved Filed Pursuant to Rule 433 Registration No. 333-158139 March 23, 2009
Slide 2: Safe Harbor Statement & Important Information
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 (PSLRA). All such statements are based upon our current expectations and various assumptions, and apply only as of the
Slide 3: Remarketing of Senior Notes
Remarketing of Senior Notes Autoliv, Inc., the worldwide leader in automotive safety systems – announced on March 2, 2012 that it intends to remarket its 8% senior notes due 2014, beginning on March 12, 2012 This remarketing provides an opportunity for debt investors to invest in Autoliv, as well as
Slide 4: Table of Contents
Business Overview Financial Performance Table of Contents
Slide 5: Autoliv in Brief
38% 10% 12% Autoliv in Brief Sales and technology leader Sales: US $8.2 billion Fortune 500 company Sales to all major vehicle manufacturers ~80 facilities in 29 countries 20 crash test tracks ~48,000 associates whereof 4,400 in R,D&E Rated BBB+/stable by Standard & Poor’s RoW Japan Europe 31% Ameri
Slide 6: Key Figures Summary
**(US $ Mil’s unless specified) Sales 8,232 7,171 5,121 Operating income Net income EPS * (assuming dilution), US$ 6.65 6.39 0.12 Operating cash flow Net debt/EBITDA *, x 0.0 0.1 1.6 RoE *, % 19.6 22.3 0.5 Dividends paid Headcount (no. of persons) 47,900 43,300 37,900 GLVP * (millions units) 74.8 71
Slide 7: Technology Leadership
8% of all automotive industry safety patents Safety Vent Bag Night Vision System, Pedestrian Hood Fixed-Hub Steering Wheel Anti-Sliding Bag, Adaptive Load Limiter Telematics Curtain Airbag, Anti-Whiplash Seat Side Airbag for Head Protection, Inflatable Tubular Structure Knee Airbag, Seatbelt Load Li
Slide 8: Superior Global Presence
Superior Global Presence – Local Production Seatbelts Airbags Steering wheels Electronics North America Japan Europe South America India China Korea Asia other
Slide 9: Sales by Customer
Sales by Customer -
Slide 10: Product Sales
Product Sales increases in passive and active electronics FAB ~ 17% and SAB ~ 27% in 2011 Seatbelts Airbags Steering Wheels Other Passive Electronics Active Electronics 32% 46% 8% 3% 10% 1% 2010 $7.2B 31% 45% 8% 3% 11% 2% 2011 $8.2B
Slide 11: Market Shares
Market Shares global passive safety market share 0% 20% 40% 60% 80% 100% Driver A/B Passenger A/B Chest A/B Head A/B ECU Seatbelts SW Total Autoliv estimated market share ~ 36%
Slide 12: Table of Contents
Table of Contents Business Overview Financial Performance
Slide 13: Operational execution
Operational execution record sales and strong cash generation in Q4 and FY11 double-digit margins for the consecutive quarter Growth outperformed GLVP for the consecutive quarter Active Safety and Growth Markets • ~ 120% increase in radar and vision volumes in FY11 • organic growth in China was clos
Slide 14: Q4 Financial Overview
Q4 Financial Overview record sales, gross profit and DPS for a 4 quarter strong performance despite commodity headwinds & active safety RD&E investments (**) US GAAP reported, (*) Earnings per share, Dividend per share, Return on Capital Employed, Return on Equity, Global Light Vehicle Production **
Slide 15: FY Financial Overview
( FY Financial Overview record sales, gross profit, EBIT, EPS and DPS strong performance despite commodity headwinds & active safety RD&E investments (**) US GAAP reported, (*) Earnings per share, Dividend per share, Operating cash flow less capital expenditure (net), Return on Capital Employed, Ret
Slide 16: Cash Flow
(*) Non US GAAP and restated for ASC 810-10-45. Cash Flow higher CapEx to support growth initiatives (US $ Mil’s unless specified) Q4 Q4 FY FY FY FY FY Net Income Depreciation & Amortization Other non-cash items (42) (5) Change in operating WC (175) (12) Operating Cash Flow CapEx, net (100) (82) (35
Slide 17: Capital Structure
Capital Structure strong investment grade credit rating gross debt $666M with net cash position $92M Net Debt to Capitalization – N/A Credit Rating Agency Overview S&P Moody’s Long-Term BBB+/stable not rated Short-Term A-2/stable P-2/stable * (*) Leverage Ratio refers to Net debt/EBITDA, Non US GAAP
Slide 18: Net Debt Overview and Debt Maturity Profile
739.2 647.2 400.0 59.2 107.2 43.3 37.5 Net Debt (3) Breakdown 2011 $ MM Net Cash: 92.0 (1) 1. Pre adjustment for $19.1 MM of debt-related derivatives; total debt adjusted for DRD equals $666 MM 2. 2014 maturity post remarketing exercise 3. Net debt is a non GAAP measure (see reconciliation at the en
Slide 19: Dividend Payments
Dividend Payments 0.1 0.2 0.3 0.4 0.5 M US$ $ / share Dividend per share Dividend Payments Dividend Trend per share vs. cash paid 98 99 2000 01 02 03 04 05 06 07 09 2010 11 12
Slide 20: Margin Performance
19.5 11.9 20.4 22.2 21.0 9.2 (2.3) 6.6 12.7 11.0 (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 25.0 % (*) US GAAP Margin* Performance Operating Margin Gross Margin Strong margins trend
Slide 21: Returns Performance
(*) US GAAP reported Operating Income and Net Income % Returns* Performance Strong returns trend 18.9 31.5 27.4 15.7 (6.7) 10.6 24.9 19.2 (3.1) 13.9 (15.0) (5.0) 5.0 15.0 25.0 35.0 Return on Capital Employed Return on Equity
Slide 22: Our Response to the Uncertain Macro Situation
Our Response to the Uncertain Macro Situation flexibility, liquidity and market presence PERSONNEL COST STRUCTURE LIQUIDITY SALES
Slide 23: Financial Outlook
Financial Outlook Q1 2012 FY2012 Sales Organic nearly 5% ~ 7 % Acquisitions 0% 0% Fx* ~ (3%) ~ (3%) Consolidated Sales ~ 2% nearly 4% Operating Margin ** ~ 10% 10-11% (*) 1 Euro = 1.28 US$, 1 US$ = 77 JPY for Q1 & FY2012 (**) Excludes legal costs & other charges related to the on- going anti-trust i
Slide 24: Autoliv – Passive Safety
Autoliv Every year, Autoliv’s products save over 25,000 lives Passive Safety
Slide 25: Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP
Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP In this document we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autoliv’s performance. We believe that these measures assist investors and management in analyzing trends in the Company’s business for
Slide 26: Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP (cont'd)
Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP (cont’d) 2011 Interest Coverage Ratio & Leverage Ratio Interest coverage ratio Leverage ratio Full year 2011 December 31, 2011 Operating income $889.2 Net debt (cash) (3) ($92.0) Amortization of intangibles (1) 18.6 Pension liabilities 193.1 Oper