Autoliv, Inc. · NYSE:ALV
Autoliv — Q2 2023 Earnings Presentation
18 slides from Autoliv's earnings presentation, Jul 21, 2023
Slide 1: More Lives Saved – More Life Lived Earnings Call Presentation
More Life Lived More Lives Saved – More Life Lived Earnings Call Presentation 2nd Quarter 2023 July 21, 2023 July 21, 2023 ALV – Q2-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 2: Safe Harbor Statement
Safe Harbor Statement* This report 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 that A
Slide 3: Q2'23 Key Highlights
Q2’23 Key Highlights Significant steps towards our full year indications ▪ Sales highest since the Veoneer spin-off − Outperforming LVP significantly in all regions due to recent launches and higher safety content ▪ Adjusted operating income* record for a 2nd quarter − Positively impacted by organic
Slide 4: Significant Sequential Improvements since Q1'23
Significant Sequential Improvements since Q1´23 Towards our Full-year Indications Direct Labor Efficiency Index Gross Margin SG&A and RD&E, net Operating Cashflow LTM Sales in relations to Average Headcount % US$ (Millions) and in relations to sales US$ (Millions) 120 1,250 300 11.0% 18% 100 250 10.
Slide 5: Adjusted Operating Margin Progression
Adjusted Operating Margin* Progression Gradual improvement quarter by quarter ‒ expect a back-end loaded H2 Adjusted Operating Margin* % Sequential margin improvement expected from: ▪ Price compensation and other recoveries, especially in the 10% Full year fourth quarter indication 8% 8.5% to 9% ▪ C
Slide 6: Autoliv Accelerates Structural Cost Reductions
Autoliv Accelerates Structural Cost Reductions Simplifying our logistics and geographic footprint to significantly lower our cost base ▪ Continue to actively address our cost base to accelerate the journey towards our medium-term targets ▪ All divisions and functions will be impacted by the optimiza
Slide 7: Q2'23 Sales Growth and Regional Sales Split
Q2’23 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q2´23 US$ (Millions) % China 19% Europe 28% Japan Asia 8% 37% Rest of Asia 10% Americas 35% 27% Organic growth* (*) Non-US GAAP measure. July 21, 2023 ALV – Q2-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights R
Slide 8: Organic Sales Growth - Outperforming Global LVP by 11pp
Q2’23 Organic Sales* Growth - Outperforming Global LVP by 11pp Outperformance - Organic growth* vs. LVP** (Percentage points) CHINA EUROPE +6pp +23pp JAPAN +22pp AMERICAS +7pp Rest of ASIA +13pp (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ July
Slide 9: Q2'23 Financial Overview
Q2’23 Financial Overview Strong sales and profit development Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 27% $88 $430 $2,635 $212 $379 8.0% Adj. $2,081 Op. Margin* $124 6.0% Adj. Op. Margin* -$51 Q2’22 Q2’23 Q2’22 Q2’23 Q2’22 Q2’23 Q
Slide 10: Q2'23 Key Model Launches
Q2’23 Key Model Launches July 21, 2023 ALV – Q2-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: Q2'23 Financial Overview
Q2’23 Financial Overview (US$ Millions unless specified) Q2’23 Q2’22 Sales $2,635 $2,081 Gross Profit $447 17.0% $326 15.7% Adj. Operating Income1 $212 8.0% $124 6.0% Adj. EPS (assuming dilution) $1.93 $0.90 Adj. RoCE1,2 21% 13% Adj. RoE1,2 25% 12% Operating cash flow $379 -$51 Dividend paid per sha
Slide 12: Q2'23 Adjusted Operating Income Bridge
Q2’23 Adjusted Operating Income* Bridge vs. prior year $88 US$ Millions A result primarily driven by: • price increases • cost saving activities • higher volumes • lower premium freight This was partly offset by substantial inflationary pressure from labor cost, logistics, and utilities (*) Non-US G
Slide 13: Cash Flow
Cash Flow Capex and D&A Reversal of the negative working capital effects from the first quarter (US$ Millions unless specified) Q2´23 Q2’22 2022 2021 Net Income $53 79 $425 $437 Depreciation & Amortization 94 90 363 394 Other, net3 2 19 -133 -15 Change in operating WC 230 -239 58 -63 Operating cash
Slide 14: Debt Leverage Ratio
Debt Leverage Ratio* Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ Millions 3.0 $2,000 2.5 $1,500 2.0 1.3x 1.5 $1,000 0.5-1.5x 1.0 Long-Term Long-Term Target: 1.0x Range $500 0.5 0.0 Net Debt EBITDA Q2´20 Q2'21 Q2´22 Q2´23 ▪ Our Net Debt* decreased by $185M from Q1’23 ▪ EBITDA LTM in
Slide 15: Light Vehicle Production Outlook
Light Vehicle Production Outlook Light Vehicle Sales LTM (Million units) North America - With persistent demand and improving supply chain conditions, most notable among the Japanese manufacturers, S&P Global has revised the LVP outlook for 2023 upwards by 3% to 14.2 million units. However, there is
Slide 16: Full Year 2023 Indications
Full Year 2023 Indications Full year indication LVP growth ~4% Organic sales increase1 Around 15% FX Around positive 1% Adjusted Operating margin1 Around 8.5 to 9% Tax rate2 Around 32% Operating Cash flow2 Around $900 million Capex, net % of sales Around 6% (1) Non-US GAAP excluding effects from cap
Slide 17: Saving More Lives
Saving More Lives Saving More Lives July 21, 2023 ALV – Q2-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 18: Q2'23 Product Volumes
Q2´23 Product Volumes Autoliv Quantities Delivered Q2´23 vs. PY** (%) (Millions unless specified) Seatbelts 37.4 14% ▪ Pretensioners (of which) 24.7 18% ▪ Active Seatbelts (of which) 1.2 -1% Frontal Airbags 15.9 15% ▪ Knee Airbags (of which) 2.0 17% Side Airbags 31.2 29% ▪ Chest (Thorax) 16.6 30% ▪