Slide 1: Earnings Call Presentation 3rd Quarter 2024
More Lives Saved More Life Lived Earnings Call Presentation 3rd Quarter 2024 October 18, 2024 October 18, 2024 ALV – Q3 2024 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: Q3'24 Key Highlights – Solid Sales Outperformance
Q3’24 Key Highlights – Solid Sales Outperformance ▪ Solid sales outperformance in most regions − Outperformed global LVP by close to 4pp ▪ Settled cost compensation claims with nearly all customers ▪ Profitability virtually flat Year-over-Year, despite lower net sales and costs for a settlement, dri
Slide 4: Q3'24 Light Vehicle Market Development
Q3´24 Light Vehicle Market Development Global LVP almost in-line with expectations, but regional mix substantially more negative Q3´24 LVP Production vs. July Forecast * Customer Call-off Accuracy** Percentage Points % 100% 10 pp Normal COEMs 8 pp 6 pp 4 pp 80% 2 pp 0 pp GOEMs -2 pp 60% -4 pp * Ligh
Slide 5: Continued Significant Sequential Cost Improvements
Continued Significant Sequential Cost Improvements Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM Sales in relations to Average Headcount % US$ -Millions and in relations to sales US$ -Millions 300 11.0% 1,250 140 20% 120 250 10.0% 1,050 18% 100 200 9.0% 850
Slide 6: Q3'24 Financial Overview
Q3’24 Financial Overview Stable sales and profit Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ -Millions US$ -Millions US$ -Millions -2% -2% -$25 $2,596 $2,555 $243 $237 9.4% Adj. Op. Margin* $202 9.3% Adj. Op. Margin* $177 Q3’23 Q3’24 Q3’23 Q3’24 Q3’23 Q3’24 * Non-US GAAP ex
Slide 7: Q3'24 Sales Growth and Regional Sales Split
Q3’24 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q3´24 US$ -Millions % China 19% Asia 39% Americas 33% Japan 9% Rest of Asia 11% Europe 27% -1% Organic growth* * Non-US GAAP measure October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Re
Slide 8: Q3'24 Organic Sales Growth - Outperforming Global LVP by 4pp
Q3’24 Organic Sales* Growth - Outperforming Global LVP by 4pp Outperformance - Organic growth* vs. LVP** EUROPE JAPAN +12pp AMERICAS CHINA +12pp -6pp -1pp Rest of ASIA Americas: Strong growth in South America offset by a weak North American market Europe: Outperformance fueled by product launches an
Slide 9: Q3'24 Key Model Launches
Q3’24 Key Model Launches Nio Onvo L60 Mahindra Thar Roxx Nissan Patrol/Armada Tata Curvv Ford Capri BMW X3 Zeekr 7X Audi A6 e-tron Audi A5 Changan Avatr 15 Alfa Romeo Junior Chery Luxeed R7 October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 10: China Market Update
China Market Update October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: Autoliv – the Leading Automotive Safety Supplier in China
Autoliv – the Leading Automotive Safety Supplier in China Vertical integrated operations with full system development capabilities Autoliv Footprint China; 20% Our Customers 1 Technical Center & 15 Plants Currently serving 68 OEMs GOEM COEM Taoyuan City October 18, 2024 ALV – Q3 2024 Earnings Call a
Slide 12: Significant Shift in China Market – Our Response
Significant Shift in China Market – Our Response ➢ Dynamic Market Development ▪ Chinese automakers are rapidly expanding their market shares in China ▪ Sales of new energy vehicles (NEVs) has surpassed internal combustion engines (ICE) * ▪ China has become the world’s largest vehicle exporter ▪ Perf
Slide 13: Full System Launches Q3'24
Full System Launches Q3´24 October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 14: Expanding Business with Fast Growing Domestic OEMs
Expanding Business with Fast Growing Domestic* OEMs New Order Intake Market Shares Autoliv Market Share COEMs and GOEMs** COEMs share of ALV sales and LVP in China** 75% 50% 50% 40% 40% 50% 30% 30% 20% 20% 25% 10% 10% 0% 0% 0% Total China Domestic OEMs 2021 2022 2023 2024 F2025 2021 2022 2023 2024 F
Slide 15: What Makes Autoliv a Preferred Partner in China?
What Makes Autoliv a Preferred Partner in China? ▪ Close development partner with most major OEMs ▪ Substantial efficiency gains from automation & digitalization ▪ Actively sell advanced and differentiated solutions 16,000 160 ▪ Going global with customers and supply base 14,000 140 ▪ Drive collabor
Slide 16: Financials
Financials October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 17: Q3'24 Financial Overview
Q3’24 Financial Overview -US$ Millions unless specified Q3’24 Q3’23 Sales $2,555 $2,596 Gross Profit $459 18.0% $465 17.9% Adj. Operating Income1 $237 9.3% $243 9.4% Adj. EPS -assuming dilution1 $1.84 $1.66 Adj. RoCE1,2 24% 25% Adj. RoE1,2 25% 21% Operating cash flow $177 $202 Dividend paid per shar
Slide 18: Q3'24 Adjusted Operating Income Bridge
Q3´24 Adjusted Operating Income* Bridge vs. prior year -$6 US$ Millions Operations Primarily driven by: ▪ cost saving activities ▪ commercial recoveries Partly offset by • Higher labor cost • Lower sales * Non-US GAAP excluding effects from capacity alignment and antitrust related matters October 18
Slide 19: Cash Flow
Cash Flow Capex and D&A Continued strong performance from higher net income -US$ Millions unless Q3´24 Q3’23 LTM 2023 2022 specified Net Income $139 $134 $632 $489 $425 Depreciation & Amortization 97 95 385 378 363 Other, net2 10 9 -119 -119 -133 Change in operating WC -68 -36 189 235 58 Operating c
Slide 20: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales 35% 30% 25% Since Q1´19 Trade WC has improved by ~$470M 20% 15% 0 10% 5% 0% October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 21: Debt Leverage Ratio
Debt Leverage Ratio* Remains within the Long-term target range Net Debt * / EBITDA* Net Debt* and EBITDA** per the Policy Times US$ Millions 2.0 2,000 Net Debt EBITDA LTM 1.4x 1.5 0.5-1.5x 1,500 Long-Term Target: 1.0x Long-Term 1.0 Range 1,000 0.5 0.0 500 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 Q4´23 Q1´24 Q2
Slide 22: Light Vehicle Production Outlook
Light Vehicle Production Outlook Autoliv expects global LVP to decline by ~3 % in 2024 Global Light Vehicle Production* -Million units 24 -4.0% S&P Global: Light Vehicle Production* 23 Q4´24 FY´24 -0.5% -4.8% Region 22 YoY Chg. Million Units Y-o-Y Chg. 0.1% China -1.6% 28.4 1.1% 21 Japan -9.3% 7.7 -
Slide 23: Business Outlook – Expected Significant Increase in profitability in Q4'24
Business Outlook – Expected Significant Increase in profitability in Q4´24 Compared to the first nine months of this year, we expect for Q4´24 Adjusted Operating Margin* Development % ▪ Higher volumes driven by higher Global LVP according to S&P Global ▪ Normal seasonality from higher engineering in
Slide 24: Full Year 2024 Guidance
Full Year 2024 Guidance Based on global LVP declining ~3% Full year Organic sales Around 1% previous: around 2% Exchange rates increase1 US$/EUR 0.9020 FX Around -1% US$/JPY 144.85 US$/KRW 1334.1 Adjusted Operating Around 9.5 to 10.0% US$/MXN 19.798 margin1 US$/CNY 7.0859 Tax rate2 Around 28% Operat
Slide 25: Q&A
Q&A October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 26: Q3'24 Product Volumes
Q3´24 Product Volumes Autoliv Quantities Delivered Q3’24 vs. PY** -% -Millions unless specified Seatbelts 34.3 -6% ▪ Pretensioners -of which 23.4 -5% ▪ Active Seatbelts -of which 1.3 4% Frontal Airbags 14.4 -9% ▪ Knee Airbags -of which 1.6 -22% Side Airbags 32.1 1% ▪ Chest -Thorax 17.1 0% ▪ Head -Cu
Slide 27: Strong Balance Sheet & Cash flow Supporting Shareholder Returns
Strong Balance Sheet & Cash flow Supporting Shareholder Returns Repurchased 9.1 million shares since the beginning of 2022 for $917 million under current mandate Shareholder Returns US$ Millions Share Repurchases Dividends 600 ~$1.8 billion in direct shareholder 352 $821 million returns over the las
Slide 28: Saving More Lives
Saving More Lives Saving More Lives October 18, 2024 ALV – Q3 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public