Autoliv, Inc. · NYSE:ALV

Autoliv — Investor Day (October 2015)

25 slides from Autoliv's investor day presentation, Oct 2, 2015

1. Slide 1: Passive Safety

   Passive Safety George Chang October 2, 2015

2. 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

3. Slide 3: Passive Safety: The foundation for growth, Building for the future

   Passive Safety  The foundation for growth  Building for the future 3 Copyright Autoliv Inc., All Rights Reserved

4. Slide 4: Growth Drivers

   Growth Drivers Support the future development of our Passive business A Changing World Growing Traffic Injuries* Continouos Innovation Growing LVP (M)* LT need for passive restraints Passive Safety towards AD 70 60 2.4M 50 Million Light vehicles 40 30 1.3M 20 10 0 '02 '04 '06 '08 '10 '12 '14 '16 '18

5. Slide 5: Strong Foundation

   Strong Foundation Strong market position and a balanced footprint aligned to our customers 2014 MARKET SHARE Europe Side Airbags 48% 33% of sales Frontal Airbags 30% China Steering Wheel 30% Seatbelts 40% 16% of sales Japan 2014 EMPLOYEES Americas 7% of sales Cost competitive 34% RoA 74% of sales co

6. Slide 6: Strategy to Stay Ahead

   Strategy to Stay Ahead New operating structure to drive change to deliver more  A changing Passive Safety market ‒ Creates need to deliver with higher efficiency with focus on Q5, speeding up 1P1P and innovate in concert with Active Safety Zero Defects by flawless execution One Product One Process

7. Slide 7: Relentless Focus on Quality

   Relentless Focus on Quality Foundation for saving lives and creating value Autoliv ~%1 Importance of Quality Share  A competitive advantage industry recalls  A matter of life and death in real life safety  Key for our sustainability 7 Copyright Autoliv Inc., All Rights Reserved

8. Slide 8: Relentless Focus on Quality: Our Journey on Quality

   Relentless Focus on Quality Unceasingly strengthen our foundation through continuous improvement Quality Our Journey on Quality issues  Increased focus since 2010 with launch of Q5  Holistic approach ‒ Robust designs ‒ Flawless components and manufacturing ‒ Traceability (in case of recalls) and T

9. Slide 9: Relentless Focus on Quality: Yokoten

   Relentless Focus on Quality Achieving excellence through a global sharing and learning organization Reduction of Global Learning Non-Conforming Events  Across divisions through business processes Yokoten (“Application Across Everywhere”) 2010 2011 2012 2013 2014 0% -10%  Mistakes golden nuggets fo

10. Slide 10: Relentless Focus on Quality: Zero Defect Lines

    Relentless Focus on Quality Zero Defects a growing reality within Autoliv 200 175 Canada Russia Germany 150 Romania 125 USA 100 Spain Turkey 75 Japan 50 Mexico 25 Brazil 0 Zero Defect Lines 10 Copyright Autoliv Inc., All Rights Reserved

11. Slide 11: One Product One Process

    One Product One Process Leverage global scale and efficiency Reduce complexity  Global supply chain Maximize economies of scale  While maintaining some redundancy Benchmarking  Drive global best practice  Self-reinforcing lessons learned 11 Copyright Autoliv Inc., All Rights Reserved

12. Slide 12: One Product One Process: Standardization (Dryer Lid)

    One Product One Process Standardization for global scale and efficiency Spray Dry Dryer Lid Jintan Promontory (Jiangsu) (Utah) 12 Copyright Autoliv Inc., All Rights Reserved

13. Slide 13: One Product One Process: Standardization (Fluid Bed)

    One Product One Process Standardization for global scale and efficiency Spray Dry Fluid Bed Jintan Promontory (Jiangsu) (Utah) 13 Copyright Autoliv Inc., All Rights Reserved

14. Slide 14: One Product One Process: A recent real life application

    One Product One Process A recent real life application Explosion at Tianjin Port on Aug 12th 2015  Import and export of dangerous goods suspended China operation not impacted  Highly localized propellant production Propellant to Japan impacted, successfully backed up from the US due to 1P1P 14 Cop

15. Slide 15: Incremental Innovation

    Incremental Innovation In concert with Active Safety and Autonomous Driving in developed markets Incremental Passive innovation… … ground-breaking Passive innovation 15 Copyright Autoliv Inc., All Rights Reserved

16. Slide 16: Passive Safety: The foundation for growth, Building for the future

    Passive Safety  The foundation for growth  Building for the future 16 Copyright Autoliv Inc., All Rights Reserved

17. Slide 17: Building For the Future - China

    Building For the Future - China Still the global growth engine long term Fatalities per 100,000 vehicles GDP/Capita Population US China US China Vehicles per 1,000 people CPV ($) US China US China US China Source: UN, Autoliv internal 17 Copyright Autoliv Inc., All Rights Reserved

18. Slide 18: Building For the Future - China: The New Normal

    Building For the Future - China “The New Normal”  Economy enters into a new phase ‒ Changing structure; consumption, services and innovation  Uncertainty and fear ‒ Lower growth. Reduced visibility. No longer beating past records  “New normal” here to stay ‒ Not everyone can be a winner  Huge po

19. Slide 19: Building For the Future - China

    Building For the Future - China Still the global growth engine long term China: 30 ’14 -’19 LVP CAGR 4.8%  Market and technology leader in China 25 20 ‒ Proven team on the ground 15 ‒ Engineering resources at China Technical Center 10 ‒ Competitive supply chain 5 0 '02 '04 '06 '08 '10 '12 '14 '16 '

20. Slide 20: Building For the Future – Western Europe

    Building For the Future – Western Europe Footprint optimization, steering wheel on track to recovery Western Europe: 20 ’14 -’19 LVP CAGR 1.6%  Western Europe recovery 15 ‒ LVP volumes not expected to reach 10 pre-2007 levels this side of 2020 5  European operation improvements 0 '02 '04 '06 '08 '

21. Slide 21: Building For the Future – South America

    Building For the Future – South America Continued challenges, recovery program on track South America: 5 ’14 -’19 LVP CAGR 0.3%  Economic challenges in South America 4 ‒ Economy in recession 3 ‒ Increasing tax burden ‒ Significant FX devaluation 2 1 ‒ Customer shutdowns 0  Recovery program on trac

22. Slide 22: Building For the Future – India

    Building For the Future – India The next emerging mega market Fatalities per 100,000 vehicles GDP/Capita Population China India China India Vehicles per 1,000 people CPV ($) China India China India China India Source: UN, IHS, Autoliv internal 22 Copyright Autoliv Inc., All Rights Reserved

23. Slide 23: Building For the Future – India

    Building For the Future – India Established 1994, No 1 position with exposure to growth OEMs 6 India:  Advanced facilities in place 5 ’14 -’19 LVP CAGR 9.1% ‒ India Technical Center/Global Technical Services Center 4 3  Positioned for growth 2 ‒ Supported by expanding LVP market and growing CPV 1

24. Slide 24: Summary

    Summary Continue passive safety market leadership into the future  Growing faster than the market ‒ Leverage strong position in growth markets ‒ Incremental innovation of Passive features in concert with Active Safety in developed markets  Benefit from alignment, global scale & efficiency ‒ Benefi

25. Slide 25: Thank you!

    Thank you! Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries 25 Copyright Autoliv Inc., All Rights Reserved

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