Slide 1: 1st Quarter Financial Results
Earnings Conference call Webcast 1st Quarter Financial Results April 29, 2016 Saving More Lives Copyright Autoliv Inc., All Rights Reserved
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
Slide 3: Q1'16 Highlights
Q1’16 Highlights Record sales and operating profit, both better than expected Financial Performance • Organic sales* growth 14.7%, >13pp better than LVP** • Operating margin* 9.1%, 20bps better YoY** • EPS* $1.66, ~17% better YoY** • RoCE* ~23%, RoE* ~16% • Operating cash flow $201M Shareholder
Slide 4: Enhancing our Growth and System Capability
Enhancing our Growth and System Capability Autoliv and Nissin Kogyo form a Joint Venture Overview • Closed March 31, 2016 • Strengthens our product portfolio towards autonomous driving - technology and knowledge in brake control and brake apply • Manufacturing footprint in Japan, China and US - in
Slide 5: Strong Volume Growth
Strong Volume Growth Unit growth exceeds LVP* in all product areas Autoliv Quantities Delivered Q1’16 vs. PY (Millions unless specified) Seatbelts 38.0 4% • Pretensioners (of which) 17.5 17% • Active Seatbelts (of which) 0.9 19% Frontal Airbags 12.8 8% • Knee Airbags (of which) 1.4 7% Side Airbags 2
Slide 6: Strong Performing Models
Strong Performing Models Contributing to overall net organic sales* growth in Q1’16 Q1’16 Active Safety organic sales* growth ~39%, Autoliv Electronics products on all of these models except the Toyota Prius (*) Non-US GAAP measure. ALV Q1’16 Earnings Release Presentation - 6 Copyright Autoliv Inc.,
Slide 7: China Market Update
China Market Update Light vehicle production appears to have stabilized Market • Solid start in Q1’16 with an increase in LVP* of 4.9% and an increase in LV sales** 5.9%, both are likely boosted by incentives • LV Inventories** increased in Q1’16, seem to be trending in-line with seasonal effects
Slide 8: Overall Market Conditions
Overall Market Conditions Macro environment remains mixed Asia FY’16 LVP * Vehicles (Mil’s) • China sales** recovery continues, LVP* increase Region YoY Chg. China 24.1 +6% ~8% for Q2’16 YoY Japan 8.7 +2% • Japan LVP increase ~5% for Q2’16 YoY RoA 12.5 +1% • RoA LVP increase ~1% for Q2’16 YoY Nort
Slide 9: Q1 Financial Overview
Q1 Financial Overview Record sales, operating income and cash flow for Q1 (US$ Million’s unless specified) 2016 2015 Sales $2,430 $2,174 Gross Profit $501 20.6% $423 19.5% Operating Income* $222 9.1% $193 8.9% EPS* (assuming dilution) $1.66 $1.42 RoCE* 23% 22% RoE* 16% 15% Operating Cash flow $201 $
Slide 10: Operating Income and Margin Bridge
Operating Income and Margin* Bridge Q1’16 vs. Guidance and Prior Year Q1’16 vs. Guidance (60 bps better) Q1’16 vs. Prior Year (20 bps better) Operating margin* 9.1% despite a 150 bps (~$35M at comparable currency rates) increase in RD&E, net YoY (*) Non-US GAAP measures exclude costs for capacity al
Slide 11: Cash Flow
Cash Flow Investments for growth and shareholder returns (US$ Million’s unless specified) Q1 Q1 FY FY FY FY 2016 2015 LTM* 2015 2014 2013 2012 Net Income 134 36 555 458 469 490 486 Depreciation & Amortization 85 74 331 319 305 286 273 Other, net 3 (20) 22 0 42 43 10 Change in operating WC ** (21) (6
Slide 12: Segment Reporting
Segment Reporting Q1 Organic Operating Margin (%) CapEx (%) D&A (%) Sales 2016 2015 2016 2015 2016 2015 Growth* (%) Passive Safety *** 12.7 9.6 3.5 3.7 6.6 3.4 3.4 Airbags 15.9 Seatbelts 6.3 Electronics *** 27.0 2.6 2.5 3.6 3.3 3.2 3.0 Passive Safety Electronics 19.7 Active Safety 38.6 Autoliv* 14.7
Slide 13: Looking Ahead: Q2'16 Guidance
Looking Ahead Q2’16 Guidance* Sales • YoY organic sales** increase ~10% - Mainly related to strong growth in all major regions and Active Safety • YoY acquisition effect ~6% • Sequential consolidated sales increase >8% - Mainly due to the acquisition effects from ANBS Operating Margin** ~8.5% •
Slide 14: Looking Ahead: FY'16 Indication
Looking Ahead FY’16 Indication* Sales • YoY organic sales** increase >7% - Mainly related to strong growth in Europe, North America, China and Active Safety • YoY acquisition effect ~5% • YoY currency translation effect ~(1)% - Primarily due to the continued strong US$ Operating Margin** >9% • Y
Slide 15: Financial Outlook
Financial Outlook* Q2’16 FY’16 Sales Organic** ~10% >7% Acquisitions ~6% ~5% Fx*** ~(1)% ~(1)% Consolidated Sales, net ~15% >11% Operating Margin** ~8.5% >9% Exchange rates*** Q2 2016 FY 2016 EUR / US$ 1.1242 1.1202 US$ / JPY 109.46 110.78 US$ / KRW 1154 1165 US$ / MXN 17.56 17.69 US$ / CNY 6.49 6.5
Slide 16: Thank You!
Thank You! ALV Q1’16 Earnings Release Presentation - 16 Copyright Autoliv Inc., All Rights Reserved