Slide 1: 2nd Quarter Financial Results Earnings Conference Call
Earnings Conference call Webcast 2nd Quarter Financial Results July 17, 2015 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: Q2'15 Highlights
Q2’15 Highlights Sales growth in line, margins better than expected Financial Performance • Organic sales* growth 6.1%, vs. an LVP decline of 0.3% • Operating margin* 9.5%, ~ 50 bps better than expected • EPS* $1.62, 12% better than PY • Operating cash flow $154M • RoCE* ~ 24%, RoE* ~ 17% Shareh
Slide 4: Enhancing our Growth and System Capability Thru Strategic M&A
Enhancing our Growth and System Capability Thru Strategic M&A Entered into an IP license with Volvo Car Corporation (VCC) • Provides access to advanced driver assistance algorithms and certain active safety features (ex. ACCPlus, emergency maneuver and intersection assist, sensor fusion). In combi
Slide 5: Strong Performing Models
Strong Performing Models Contributing to solid organic sales* growth in Q2’15 Mercedes C-Class Hyundai Tucson/ix35 Mercedes B-Class Acura TLX KIA Sorento Ford Escort VW Passat Baojun 730 Land Rover Discovery Sport Active Safety organic sales* growth ~ 26% in Q2’15. (*) Non-US GAAP measure. ALV Q2’15
Slide 6: Strong Volume Growth
Strong Volume Growth Unit growth exceeds LVP in all product areas Autoliv Quantities Delivered Q2’15 vs. PY (Millions unless specified) Seatbelts 37.2 2% • Pretensioners (of which) 15.2 1% • Active Seatbelts (of which) 0.8 18% Frontal Airbags 12.4 8% • Knee Airbags (of which) 1.5 12% Side Airbags 23
Slide 7: China Market Uncertainty Increasing
China Market Uncertainty Increasing Light vehicle growth is slowing Market driven • YTD’15 LVP growth rate is slowing • Negative inventory trend over the last 18 months • Many customers extending summer downtime or reducing shifts ALV specific • Negative vehicle mix including model transitions •
Slide 8: Market Conditions
Market Conditions Increasing uncertainty in the macro environment Asia FY’15 LVP * @ July. 16, 2015 Vehicles (Mil’s) • Slowing growth in China with increasing inventories, Region YoY Chg. China 22.9 +5% LVP increase ~ 5% for H2’15 Japan 8.5 (6)% • Japan LVP is expected to decline ~ 2% for H2’15 Ro
Slide 9: Business Segment Update
Business Segment Update During the last twelve months Passive Safety Inflator replacement program • Current best estimate is to supply up to 20 million inflators • Increase in new business awards for frontal airbags Electronics Expanding customer base, 43 model awards System award with a n
Slide 10: Q2 Financial Overview
Q2 Financial Overview Solid financial performance (US$ Million’s unless specified) 2015 2014 Sales $2,292 $2,383 Gross Profit $460 20.1% $464 19.5% Operating Income* $217 9.5% $221 9.3% EPS* (assuming dilution) $1.62 $1.45 RoCE* 24% 25% RoE* 17% 14% Operating Cash flow $154 $86 Dividend** $0.56 $0.5
Slide 11: Operating Income and Margin Bridge
Operating Income and Margin* Bridge Q2’15 vs. Guidance and Prior Year Q2’15 vs. Guidance (50 bps better) Q2’15 vs. Prior Year (20 bps better) Operating Margin* 9.5%. (*) Non-US GAAP measure, excludes costs for capacity alignments and antitrust matters. ALV Q2’15 Earnings Release Presentation - 11 Co
Slide 12: Cash Flow
Cash Flow Investments for growth in CapEx and shareholder returns (US$ Million’s unless specified) Q2 Q2 LTM FY FY FY FY 2015 2014 2014 2013 2012 2011 Net Income 137 83 427 469 490 486 627 Depreciation & Amortization 76 77 304 305 286 273 268 Other, net 4 5 27 42 43 10 38 Change in operating WC * (6
Slide 13: Segment Reporting
Segment Reporting Q2 Organic Operating Margin CapEx D&A Growth * 2015 2014 2015 2014 2015 2014 Passive Safety *** 5.7% 10.2% 5.5% 5.3% 4.8% 3.3% 3.2% Airbags 7.1% Seatbelts 2.9% Electronics *** 8.3% 3.2% 4.8% 3.5% 4.7% 2.9% 2.9% Passive Safety Electronics 0.7% Active Safety 25.6% Autoliv Group ****
Slide 14: Looking Ahead: Q3'15 Guidance
Looking Ahead Q3’15 Guidance** Sales • YoY organic sales* increase > 7% - Mainly related to strong growth in Active Safety, Europe, North America, and inflator replacement business along with growth in China • Sequential consolidated sales decrease ~ 5% - Mainly due to the seasonality effect in Eu
Slide 15: Looking Ahead: FY'15 Indication
Looking Ahead FY’15 Indication** Sales • YoY organic sales* increase > 6% - Mainly related to strong growth in Active Safety, Europe, North America and the inflator replacement business • YoY currency translation effect > (8)% - Primarily due to the strengthening US $ Operating Margin* ~ 9.5% •
Slide 16: Financial Outlook
Financial Outlook** Q3’15 FY’15 Sales Organic* >7% > 6% Acquisitions / (Divestitures) - - Fx*** > (9)% > (8)% Consolidated Sales < (2)% ~ (2)% Operating Margin* ~ 9% ~ 9.5% Exchange rates*** Q3 2015 FY 2015 EUR / US$ 1.1063 1.1110 US$ / JPY 121.39 120.90 US$ / KRW 1134 1116 US$ / MXN 15.80 15.46 US$
Slide 17: Every year, Autoliv's products save over 30,000 lives
Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries ALV Q2’15 Earnings Release Presentation - 17 Copyright Autoliv Inc., All Rights Reserved