Autoliv, Inc. · NYSE:ALV

Autoliv — Investor Day (October 2015)

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

  1. Slide 1: Sales

    Sales Steve Fredin 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: Sales for Real Life Safety

    Sales for Real Life Safety  Our Growth Drivers  Our Markets  Our Sales Strategy  Our Growth Scenario 3 Copyright Autoliv Inc., All Rights Reserved

  4. Slide 4: Long history of outperforming LVP and Safety Market growth

    Our Growth Drivers Long history of outperforming LVP and Safety Market growth Sales (M $) LVP (M) $12 000 200 CAGR 1997-2015 $10 000 ALV Sales 150  Autoliv sales growth $8 000 ~ 7% CAGR through the cycles $6 000 Global LVP 100  Safety market growth ~ 5% CAGR through the cycles $4 000 50 $2 000  L

  5. Slide 5: Asia excluding Japan going from 7% to 26%

    Our Growth Drivers Asia excluding Japan going from 7% to 26% in last 10 years 2004 2014 RoA China 1% RoA Japan 6% 10% 8% China 16% 33% Europe Americas 28% 57% Europe Japan 7% 34% Americas 5 Copyright Autoliv Inc., All Rights Reserved

  6. Slide 6: Long term megatrends drive steady business growth in Automotive Safety

    Our Growth Drivers Long term megatrends drive steady business growth in Automotive Safety Global Demographic Change, Urbanization Trends, Mobility Government and Public Demand for Improving Traffic Safety 60 Evolving Safety Ratings & Regulations 50 Million Light Vehicles 40 Enabling Technologies 30

  7. Slide 7: Evolving Safety Ratings & Regulation drive Passive and Active Safety

    Our Growth Drivers Evolving Safety Ratings & Regulation drive Passive and Active Safety India Source: NCAP 7 Copyright Autoliv Inc., All Rights Reserved

  8. Slide 8: Increasing demands for faster implementation of Safety Technologies

    Our Growth Drivers Increasing demands for faster implementation of Safety Technologies September 21, 2015 September 11, 2015 New UN Global Goals Road Automakers pledge to make Safety Target requires faster automatic braking standard action on vehicle safety says The commitment by a group of major Gl

  9. Slide 9: Premium Segment leading the deployment of Active Safety

    Our Growth Drivers Premium Segment leading the deployment of Active Safety Sensor Fusion / HMI / Increasing Automation / Actuator Authority Passive Active Premium Mercedes S-Class Volvo V70 Low / Mid VW Golf Suzuki Swift 0 200 400 600 800 1 000 1 200 1 400 CPV Focus on NCAP requirements Source: Auto

  10. Slide 10: Passive Safety driven by increasing penetration in Growth Markets

    Our Growth Drivers Passive Safety driven by increasing penetration in Growth Markets 100% 100% 80% Frontal China 80% Frontal Chest India Chest 60% 60% Head Head 40% 40% 20% 20% 0% 0% 2015 2017 2019 2015 2017 2019 100% 100% 80% Frontal South 80% Frontal Global Chest 60% Chest America 60% Head Head 40

  11. Slide 11: Passive Safety driven by incremental innovation in Developed Markets

    Our Growth Drivers Passive Safety driven by incremental innovation in Developed Markets Adaptable Seatbelt Active Seatbelts (Pre-pretensioning) 11 Copyright Autoliv Inc., All Rights Reserved

  12. Slide 12: Our Markets

    Sales for Real Life Safety  Our Growth Drivers  Our Markets  Our Sales Strategy  Our Growth Scenario 12 Copyright Autoliv Inc., All Rights Reserved

  13. Slide 13: Increasing Content Per Vehicle as markets mature

    Our Markets Increasing Content Per Vehicle as markets mature CPV ($) 500 North America 400 South Korea 300 China Western Europe Eastern Japan Europe 200 Thailand GROWTH Brazil Indonesia MARKETS 100 Population India 0 -10 000 0 10 000 20 000 30 000 40 000 50 000 60 000 Level of economic development (

  14. Slide 14: LVP in Growth Markets to increase ~22% by 2019

    Our Markets LVP in Growth Markets to increase ~22% by 2019 or CAGR of 5% 2015-2019 CAGR LVP ~97M ~91M Global Market 3.3% ~85M 29 Growth Markets 5.1% 26 24 ~57M RoW + EEU 4.7% Light vehicles millions ~46M China 5.5% 25 28 22 TRIAD 1.0% 9 8 8 Japan (0.6%) 14 15 14 ~39M ~40M WEU 0.6% 16 17 18 North Ame

  15. Slide 15: Global safety market to grow $6B by 2019

    Our Markets Global safety market to grow $6B by 2019 or CAGR of 6%* $31B CAGR 2015-2019 5,7 $25B ELE Active Safety ** 22.8% 2,5 3,9 3,3 Passive Safety Electronics 4.3% 3,0 2,6 US$ (Billions) Steering Wheels 3.5% 7,5 6,5 3.8% Seatbelts PAS Airbags 2.5% 9,7 10,7 LVP 3.3% 2015 2019 (*) Based on August

  16. Slide 16: Growth Markets to increase $3.2B to 2019

    Our Markets Growth Markets to increase $3.2B to 2019 or CAGR of 8%* $31B CAGR 2015-2019 Market LVP 5,8 $25B Growth Other 6.0% 4,6 Markets** 7.7% 5.1% 6,8 China 9.3% 4,8 US$ (Billions) 3,3 Japan 5.2% 2,7 5,9 4.7% 4.6% 1.0% Western Europé 4,9 Developed Markets North America 4.3% 7,6 9,0 Global 5.8% 3.

  17. Slide 17: Brake Control adds $13.5B in 2019

    Our Markets Current market 2015-19 CAGR 6%*, Brake Control adds $13.5B in 2019 50 CAGR Current Safety Market 2015-2019: 6% 2014 MARKET SHARE Brake Control Systems ELE Brake Control 40 ~0%** PAS Additional Systems Market ** US $ (Billions) Active Safety*** 24% 30 Current Electronic PAS Electronics 22

  18. Slide 18: Our Sales Strategy

    Sales for Real Life Safety  Our Growth Drivers  Our Markets  Our Sales Strategy  Our Growth Scenario 18 Copyright Autoliv Inc., All Rights Reserved

  19. Slide 19: Organic sales growth at least in line with our market

    Our Sales Strategy “Organic sales growth at least in line with our market” …and faster than our market including acquisitions  Strategically target right customers  Leverage on product development  Benefit from superior quality  Strengthen China and Active Safety for the long term  Add key buil

  20. Slide 20: Remain close to our well-balanced portfolio of world-class OEMs

    Our Sales Strategy Remain close to our well-balanced portfolio of world-class OEMs Others 100% Local Chinese OEM’s 2% 5% 2% 2% 14% 80% Asian OEMs 3% 4% 5% 11% 60% Other 5% 2014 Chinese OEMs 5% 11% 40% Korean OEMs Japanese OEMs 7% 9% European Volume 7% 20% 8% European Premium D3 0% 2014 2017 20 Copyr

  21. Slide 21: Take on greater role for Passive and Active Safety functions

    Our Sales Strategy Take on greater role for Passive and Active Safety functions and features Autonomous Driving Automated Route Automated Route (Trained) (Destination) Automated Highway Automated City Automated Valet Evasive Driving Driving Parking Maneuvers AEB – Intersection Overtaking AEB – City

  22. Slide 22: Leveraging our products and partnering with OEMs

    Our Sales Strategy Leveraging our products and partnering with OEMs to deliver Real Life Safety Vision Systems Radar Night Vision Seatbelts Airbags AD 22 Copyright Autoliv Inc., All Rights Reserved

  23. Slide 23: Recent major customer launches

    Our Sales Strategy Recent major customer launches exemplifies deployment of our offerings 1. Ford Taurus 4. Honda Pilot Safety function deployment 1 2 3 4 5 6 Driver airbag w. steering wheel Side airbags Knee airbag 2. Audi Q7 Passenger airbag 5. Volvo XC90 Inflatable curtains Seatbelts w. pretensio

  24. Slide 24: Address Industry's Quality Issues by offering a proven solution

    Our Sales Strategy Address Industry’s Quality Issues by offering a proven solution Autoliv ~1%  Focused on offering proven inflator technologies to support our customers, short and long term  Current estimate to deliver up to 20M Share inflators for replacement and running industry programs during

  25. Slide 25: Strengthening in China for long term market leadership

    Our Sales Strategy Strengthening in China for long term market leadership ALV OEM Sales in China* 2 000 20 US $ Millions 1 600 16 % of ALV Sales 1 200 12 800 8 400 4 0 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 LTM  Markets are stabilizing  Positive view for the long term remain

  26. Slide 26: Strengthen our Position in Active Safety

    Our Sales Strategy Strengthen our Position in Active Safety  Our capabilities and products are suited for improving Real Life Safety  Expanding key partnerships with additional customers  Ratings and Regulations will drive more features into standard equipment  Increasing consumer awareness will

  27. Slide 27: Add key building blocks for Real Life Safety through M&A and JV's

    Our Sales Strategy Add key building blocks for Real Life Safety through M&A and JV’s MACOM Automotive VCC IP Licenses Nissin Kogyo JV* Solutions  Advanced Driver  Brake Control and Assistance Algorithms Brake Apply Systems  GPS Module  Electronic Horizon  Certain Active Safety Features Expands

  28. Slide 28: Our Growth Scenario

    Sales for Real Life Safety  Our Growth Drivers  Our Markets  Our Sales Strategy  Our Growth Scenario 28 Copyright Autoliv Inc., All Rights Reserved

  29. Slide 29: Target to grow our sales to $12B by 2019

    Our Growth Scenario Target to grow our sales to $12B by 2019  Organic growth support from ‒ Continued strong LVP in Growth Markets ‒ Increased CPV driven by Passive penetration in Growth Markets and Active penetration in Developed Markets  Continue ALV long-term market share expansion ‒ Further st

  30. Slide 30: Thank you!

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

Autoliv — Investor Day (October 2015) on 6ix