Slide 1: Earnings Conference Call and Webcast
Earnings Conference Call and Webcast 4th Quarter 2016 Financial Results February 2, 2017 1 February 2, 2017 ALV – Q4-2016 Earnings Call and Webcast 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: Recap - 2016
Recap - 2016 Solid performance while improving overall market position Growth and Margins − Strong organic sales* growth 7.2%, ~2.5pp better than the LVP* − Active Safety organic* sales growth ~16% − Overall consolidated sales growth ~10% including acquisitions − Adjusted operating margin* 8.8% wi
Slide 4: Recap - 2016: Order Intake
Recap - 2016 Strong order in-take continued contributing to long-term growth Order Intake 150 ALV Customer Application Projects Initiated In 2016 ~55% increase vs. PY* − Record order in-take in PAS* for 2016 continued from 2015 100 No. TG-0 Passed − Record order in-take in ELE* for 2016 with ~25%
Slide 5: Recap - 2016: Unit Volume Growth
Recap - 2016 Unit Volume growth exceeds global LVP* in most product areas Autoliv Quantities Delivered FY’16 FY vs. PY* (%) (Millions unless specified) Seatbelts 148.7 2.1 Pre-tensioners (of which) 69.3 8.8 Active Seatbelts (of which) 3.7 15.6 Frontal Airbags 50.6 4.8 Knee Airbags (of which) 5
Slide 6: Recap - 2016: Active Safety Update
Recap - 2016 Active Safety Update Factors affecting our Organic Sales* Growth 1,000 Active Safety Sales End of Decade Sales Target @ 2015 CMD > $1B (US $ Millions) − Program timing 750 − Phase-out of incumbent Brake Control programs 500 2009 to 2016 − Volumes ramping down earlier than expected on
Slide 7: Looking ahead - 2017
Looking ahead - 2017 Executing towards our end of decade targets Growth and Margins − Organic sales* growth ~4%, >2 times better than LVP** − Growth from Acquisitions ~1% (ANBS JV**) − Adjusted operating margin* ~8.5% Capital Structure − Operating cash flow >$0.8B, excluding any discrete items −
Slide 8: Key Launches during 2017
Key Launches during 2017 Passive Safety and Electronics Honda Accord Tesla Model 3 VW Polo / Gol Honda Odyssey Volvo XC60 KIA Stinger Genesis G70 Nissan Micra VW Atlas Combined these models represent around 5% of Autoliv annual sales 8 February 2, 2017 ALV – Q4-2016 Earnings Call and Webcast Copyrig
Slide 9: Overall Market Conditions
Overall Market Conditions Macro environment remains mixed and uncertain FY 2017 LVP* Asia Region Vehicles (Millions) YoY Chg. − China sales** recovery continues, LVP* increase ~3% YoY for Q1’17 China 26.6 +3% Japan 8.7 +2% − Japan LVP increase >6% YoY for Q1’17 RoA 12.8 +3% − RoA LVP decline of ~2
Slide 10: Q4'16 Highlights
Q4’16 Highlights Solid performance Financial Performance − Organic sales* growth ~1% (including 3 fewer days affect of 5pp) vs. LVP** increase ~7% − Operating margin* 9.3% − EPS* $1.71 and Operating cash flow $294M Capital Structure − $51M returned to shareholders through dividends − RoCE* ~23%,
Slide 11: Q4'16 Strong Performing Models
Q4’16 Strong Performing Models Contributing to our overall organic sales* growth Kia Sportage Renault Megane Honda Civic Havel H6 Mercedes C-Class Chrysler Pacifica Ford Escort Mercedes E-Class Fiat Tipo / Egea Q4’16 organic sales* growth ~1% (including 3 fewer days effect of ~5pp), all of these mod
Slide 12: Q4 Financial Overview
Q4 Financial Overview Record sales and gross profit (US $ Millions unless specified) 2016 2015 Sales $2,604 $2,520 Gross Profit $534 20.5% $521 20.7% Operating Income* $243 9.3% $279 11.1% EPS* (assuming dilution) $1.71 $2.08 RoCE* 23% 29% RoE* 15% 21% Operating cash flow $294 $321 Dividend per shar
Slide 13: Operating Income and Margin Bridge Q4'16
Operating Income* and Margin* Bridge Q4’16 vs. Guidance and Prior Year Q4’16 vs. Guidance (20 bps better) Q4’16 vs. Prior Year (180 bps lower) 9.1% 9.3% 11.1% 9.3% $279 $243 MUS$ MUS$ Operating margin* 9.3% includes 50 bps increase in RD&E, net and 70 bps of negative acquisition effects YoY (*) Non-
Slide 14: FY Financial Overview
FY Financial Overview Record sales and gross profit (US $ Millions unless specified) 2016 2015 Sales $10,074 $9,170 Gross Profit $2,057 20.4% $1,844 20.1% Operating Income* $885 8.8% $893 9.7% EPS* (assuming dilution) $6.75 $6.65 RoCE* 21% 24% RoE* 15% 17% Operating cash flow $868 $751 Dividend per
Slide 15: FY Segment Reporting
FY Segment Reporting Strong growth in all product areas Organic Sales* Operating Margin (%) CapEx (%) D&A (%) Headcount Growth (%) 2016 2015 2016 2015 2016 2015 2016 2015 Passive Safety *** 6.0 10.3 8.8 5.0 5.3 3.5 3.5 63,134 59,861 Airbags 6.1 Seatbelts 5.4 Electronics *** 13.3 2.8 4.1 4.6 3.3
Slide 16: Cash Flow
Cash Flow Investments for growth and shareholder returns (US $ Millions unless specified) Q4’16 Q4’15 2016 2015 2014 2013 2012 Net Income 144 186 562 458 469 490 486 Depreciation & Amortization 104 89 383 319 305 286 273 Other, net (16) 13 1 0 42 43 10 Change in operating WC * 62 33 (78) (26) (103)
Slide 17: Looking Ahead Q1'17 Guidance
Looking Ahead Q1’17 Guidance Sales − Organic* sales growth >3% YoY** − Mainly related to strong growth in Europe, China, India and South America partially off-set by lower inflator replacements − Acquisition effect ~5% YoY** − Sequential consolidated sales ~(1)% − Mainly due to the normal seasonal
Slide 18: Looking Ahead FY'17 Indication
Looking Ahead FY’17 Indication Sales − Organic* sales growth ~4% YoY** − Mainly related to strong growth in Europe, China, Japan, India and Active Safety partially offset by lower inflator replacement sales − Acquisition effect ~1% YoY** − Currency translation effect ~(3)% YoY** − Primarily due to
Slide 19: Financial Outlook
Financial Outlook 2017 Q1’17 FY’17 Sales Exchange rates** Q1’17 FY’17 Organic* >3% ~4% EUR / US$ 1,0580 1,0592 Acquisitions ~5% ~1% US$ / JPY 114,72 114,22 US$ / KRW 1185 1182 Fx** <(3)% ~(3)% US$ / MXN 21,50 21,56 Consolidated Sales, net >5% ~2% US$ / CNY 6,91 6,90 Operating Margin* ~8% ~8.5% Stron
Slide 20: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com