Slide 1: Earnings Call Presentation 3rd Quarter 2023
More Life Lived More Lives Saved – More Life Lived Earnings Call Presentation 3rd Quarter 2023 October 20, 2023 October 20, 2023 ALV – Q3-2023 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: Q3'23 Key Highlights
Q3’23 Key Highlights Continued strong performance ▪ Strong sales outperformance vs. LVP − Outperforming LVP significantly in most regions due to pricing, recent launches and higher safety content ▪ Adjusted operating income* record for a 3rd quarter − Positively impacted by organic growth and cost r
Slide 4: Significant Sequential Cost Improvements since Q1'23
Significant Sequential Cost Improvements since Q1´23 Towards our updated Full-year Indications Direct Labor Efficiency 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 2
Slide 5: Q3'23 Financial Overview
Q3’23 Financial Overview Strong sales and profit development Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 13% $70 -$30 $2,596 $243 $232 $202 $2,302 9.4% Adj. Op. Margin* $173 7.5% Adj. Op. Margin* Q3’22 Q3’23 Q3’22 Q3’23 Q3’22 Q3’23 (
Slide 6: Limited Impact of the UAW strike
Limited Impact of the UAW strike Autoliv global sales H1´23 % ▪ Limited financial impact from the strikes in Q3 ▪ Autoliv’s North American employees are not represented by UAW Detroit-3 ▪ In H1´23, the Detroit-3 North America accounted for 13% of our global sales North America 13% and for 36% of sal
Slide 7: Accelerated Structural Cost Reductions
Accelerated Structural Cost Reductions Simplifying our logistics and geographic footprint to significantly lower our cost base ▪ Continue to actively address our cost base to accelerate the journey towards our medium-term targets ▪ All divisions and functions will be impacted by the optimization of
Slide 8: Q3'23 Sales Growth and Regional Sales Split
Q3’23 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q3´23 US$ (Millions) % China 21% Americas 35% Asia Japan 40% 8% Rest of Asia 11% Europe 25% 11% Organic growth* (*) Non-US GAAP measure. October 20, 2023 ALV – Q3-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Right
Slide 9: Q3'23 Organic Sales Growth - Outperforming Global LVP by 7pp
Q3’23 Organic Sales* Growth - Outperforming Global LVP by 7pp Outperformance - Organic growth* vs. LVP** (Percentage points) CHINA EUROPE +2pp +6pp JAPAN +14pp AMERICAS +3pp Rest of ASIA +15pp (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ Octobe
Slide 10: Q3'23 Key Model Launches
Q3’23 Key Model Launches October 20, 2023 ALV – Q3-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: Q3'23 Financial Overview
Q3’23 Financial Overview (US$ Millions unless specified) Q3’23 Q3’22 Sales $2,596 $2,302 Gross Profit $465 17.9% $383 16.7% Adj. Operating Income1 $243 9.4% $173 7.5% Adj. EPS (assuming dilution) $1.66 $1.23 Adj. RoCE1,2 25% 18% Adj. RoE1,2 21% 17% Operating cash flow $202 $232 Dividend paid per sha
Slide 12: Adjusted Operating Income Bridge
Adjusted Operating Income* Bridge vs. prior year $70 US$ Millions Operations primarily driven by: ▪ price increases ▪ cost saving activities ▪ higher volumes This was partly offset by substantial inflationary pressure from labor cost, logistics, and utilities (*) Non-US GAAP excluding effects from c
Slide 13: Cash Flow
Cash Flow Capex and D&A Temporary negative working capital effects (US$ Millions unless specified) Q3´23 Q3’22 2022 2021 Net Income $134 $106 $425 $437 Depreciation & Amortization 95 87 363 394 Other, net3 -9 -51 -133 -15 Change in operating WC -36 89 58 -63 Operating cash flow 202 232 713 754 Capit
Slide 14: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales 35% 30% 25% 20% 15% Trade WC -$350M 0 since Q1´19 10% 5% 0% Trade working capital Linear (Trade working capital) October 20, 2023 ALV – Q3-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 15: Debt Leverage Ratio
Debt Leverage Ratio* Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ Millions 2.0 1.3x 2,000 Net Debt EBITDA 1.5 0.5-1.5x Long-Term Target: 1.0x 1,500 Long-Term 1.0 Range 1,000 0.5 0.0 500 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23 ▪ Our Net Debt* increased
Slide 16: Strong Balance Sheet & Cash flow Supporting Shareholder Returns
Strong Balance Sheet & Cash flow Supporting Shareholder Returns Value Creation Remains Core Shareholder Returns Over Last 5 years US$ Millions Share Repurchases Dividends ~$1.2 billion in direct shareholder 257 returns over the last 5 years 115 217 224 226 165 54 2019 2020 2021 2022 LTM Q3´23 Octobe
Slide 17: Light Vehicle Production Outlook
Light Vehicle Production Outlook Autoliv expects global LVP to increase by ~7 % in 2023 Global Light Vehicle Production* (Million units) 23 +3.6% 22 +3.8% S&P Global: Light Vehicle Production* +17% Q4´23 FY´23 21 +7.3% Region Million YoY Chg. Y-o-Y Chg. Units 20 China 6.8% 26.8 5.2% 19 Japan 12% 8.4
Slide 18: Adjusted Operating Margin Progression
Adjusted Operating Margin* Progression Adjusted Operating Margin* % ▪ Expected closing of price compensation negotiations and other recoveries 10% Full year ▪ Ongoing cost and headcount reduction activities indication of around ▪ Sequentially higher engineering income 8% 8.5% to 9% ▪ Sequentially hi
Slide 19: Updated Full Year 2023 Indications
Updated Full Year 2023 Indications Full year indication LVP growth ~7% Organic sales increase1 Around 17% Exchange rates US$/EUR 0.916 FX Around positive 1% US$/JPY 144.74 US$/KRW 1322.6 Adjusted Operating margin1 Around 8.5 to 9% US$/MXN 16.977 Tax rate2 Around 20% US$/CNY 7.254 Operating Cash flow
Slide 20: FY'24 - key factors expected to impact operating margin
FY’24 - key factors expected to impact operating margin October 20, 2023 ALV – Q3-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 21: Saving More Lives
Saving More Lives Saving More Lives October 20, 2023 ALV – Q3-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 22: Q3'23 Product Volumes
Q3´23 Product Volumes Autoliv Quantities Delivered Q3´23 vs. PY** (%) (Millions unless specified) Seatbelts 36.5 4% ▪ Pretensioners (of which) 24.6 8% ▪ Active Seatbelts (of which) 1.1 (17)% Frontal Airbags 15.8 6% ▪ Knee Airbags (of which) 2.0 19% Side Airbags 31.8 19% ▪ Chest (Thorax) 17.0 20% ▪ H