Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2019 Earnings Presentation
19 slides from Autoliv's earnings presentation, Apr 26, 2019
Slide 1: Earnings Conference Call and Webcast 1st Quarter 2019 Financial Results
Earnings Conference Call and Webcast 1st Quarter 2019 Financial Results April 26, 2019 Autoliv
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 develapments t
Slide 3: Q1'19 Key events
A OS a eae eee Q1719 Key events = Our Q1 performance was in line with our expectations despite the largest global light vehicle production drop ina decade - LVP was weaker than expected in all regions - The weakness in China continues = Continued growth for Autoliv despite the global LVP decline - O
Slide 4: Q1'19 Financial Highlights
(J1°19 Financial Highlights Organic sales growth despite market declines Consolidated Sales Adjusted Operating Income* Earnings per Share $ million $ million $ 2,174 eas 1.82 166 127 gris gig Q118 gig gris gig (*) Non-US GAAP measures exclude costs for capacity alignments and antitrust related matte
Slide 5: Market Conditions Q1'19
a OL Oa “ee Market Conditions Q1°19 7% global LVP decline is the largest quarterly decline in a decade 10- year Light Vehicle Sales LTM** China - Chinese** light vehicle registrations fell by 12%, making it a nine-month long decline - LVP* declined by 14%, which was almost 5 pp lower than expected i
Slide 6: Q1'19 Sales Growth
Q1°19 Sales Growth Sales Bridge $ million 2,300 $39 2,200 2,100 2,000 1,900 1800 = Q118 = Org. growth Currency Acquisition Q119 (**) Non-US GAAP measure. Regional Organic Growth** <ahe LVP* (5)% anf (1.2)% LVP* <1% AMERICAS 127% CHINA —— 4.0)% LVP* (3)% MIN UP* (14)% Iam ) : 5.0% yy, LVP® (1)% é (*)
Slide 7: Q1'19 Key Model Launches
(1719 - Key Model Launches Mazda 3/Axela kX @ VW T-Cross OMA % DS 3 Crossback A OMS Mk Toyota Corolla eX Hyundai Sonata 4 Ram Truck Heavy Duty a0 VW Sagitar Paes a=, Range Rover Evoque mi Porsche 911 46
Slide 8: Q1'19 Financial Overview
1°19 Financial Overview Sales $2,174 $2,241 Gross Profit $379 17.4% $460 20.5% Adj. Operating Income! $166 77% $245 10.9% EPS (assuming dilution) $1.27 $1.82 RoCEle 19% n/a RoE. 22% n/a Operating cash flow $154 $81 Dividend per share $0.62 $0.60 Global LVP3 (annual rate) ~B8M ~94M Autoliv
Slide 9: Adj. Operating Margin Bridge
Adj. Operating Margin* Bridge Q119 vs. Prior Year Operational Headwinds of ~135 bps | = LVP decline has a disproportionate negative impact on mature platforms with normal operating leverage = Combined with new launches with elevated launch cost and initially lower margin profile (135) bps Typical Pr
Slide 10: Capex, net and Cash conversion
600 6% 500 5% 400 4% 300 3% 200 2% 100 1% 0 0% FY'16 FY'17 FY'18 LTM Q1'19 Capex, net Capex, net % of sales D&A % of sales 80% 60% 40% 20% 0% FY'16 FY'17 FY'18 LTM Q1'19 Cash conversion %
Slide 11: EPS development
EPS development Q119 vs. same Quarter Prior Year Earnings per Share Earnings per Share excluding items affecting comparability* $ $ The main negative items impacting EPS were = ~65 cents from lower operating income Sree S185 =~ 5 cents from higher financial net Sie7 $1.20 partly offset by |] | = -8c
Slide 12: Strong Balance Sheet and Prudent Financial Policy
Strong Balance Sheet and Prudent Financial Policy Committed to Maintain “Strong Investment Grade” Rating Supported by High FCF Conversion Net Debt/ EBITDA*® . Y Our net debt was reduced by ~$12m in the quarter vY Our EBITDA LTM decreased by ~$70m from 0418 20 lex Y Dividend paid of $54m - vy EC anti
Slide 13: Market Development
Market Development 2019 Light Vehicle Production Outlook * Very challenging first half year with YoY improvements projected for second half year : g2718 219 FY19 Region YoY YoY Millions YoY = Light Vehicle production in North America is expected to be slightly Chg. Chg. Units Chg. down for FY19 Chin
Slide 14: Financial Outlook 2019
Financial Outlook 2019 Organic sales growth* FX Consolidated sales, net Adjusted Operating margin* Tax rate Operating Cash flow Capex % of sales R,D&E, net % of sales Leverage ratio by year end ~5% ~(2)% ~3% -10.5% ~28% Higher than 2018** Lower than 2018** Lower than 2018** Well within range (*) Non
Slide 15: Focus Areas for 2019
a OL Oa “ee Focus Areas for 2019 = Adapting to Geopolitical challenges - border crossing, tariffs, etc = Effective ramp-up of recent launches = Continue to reduce launch costs = Improve product development efficiency = Implemented hiring freeze = Reduce temporary employees =" Managing raw material p
Slide 16: Welcome to Autoliv Capital Markets Day 2019
Welcome to Autoliv Capital Markets Day 2019 November 19 in Salt Lake Area, Utah Autoliv
Slide 17: autoliv.com
autoliv.com
Slide 18: Q1'19 Product Volumes
Q1´19 Product Volumes ▪ ▪ ▪ ▪ ▪ (*) Light Vehicle Production (LVP) according to IHS @ April 16, 2019, TRIAD (Western Europe, North America, Japan), (**) Prior Year (PY).
Slide 19: Definition of Symbols
Definition of Symbols 4 = Driver and/or Passenger airbags ah = Pedestrian Airbag e . A = Seatbelts @ = Steering Wheel A » Side airbags Of * Head/Inflatable Curtain airbags e * Knee airbag [F] * Pyrotechnical Safety Switch Autoliv