Autoliv, Inc. · NYSE:ALV
Autoliv — Gabelli Automotive Aftermarket Symposium 2011
23 slides from Autoliv's conference presentation, Nov 1, 2011
Slide 1: Gabelli Automotive Aftermarket Symposium
Gabelli Automotive Aftermarket Symposium Las Vegas Ray Pekar – Director IR & Business Development November 1, 2011 Copyright Autoliv Inc., All Rights Reserved Safe Harbor Statement * This report contains statements that are not historical facts but rather forward-looking statements within the meanin
Slide 2: Brake and Restraints Controls Integration
Integrated Safety System - another World’s first innovation Integrated Restraints & Brake Controller (Hardware, Software and Algorithms) Restraints Controller Brake Controller Airbags + Rollover + IMU + Stability/Traction Control (ESC/TCS) + Active Seatbelts Anti-lock Brakes (ABS) (Hardware, Softwar
Slide 3: Active Safety Introductions; Overview - quarterly highlights
Active Safety Introductions Mono Vision System: Radar: Forward Collision Warning Adaptive Cruise control Collision Auto High/Low beam Prevention Assist with Active Seatbelts Lane Departure Warning 1 and 3-series B-class ALV Q3’11 Financial Earnings Report - 5 Overview - quarterly highlights Operatio
Slide 4: Q3 Financial Overview
Q3 Financial Overview - record sales, gross profit and EBIT for a 3rd quarter * (US $ Mil’s unless specified) 2011 2010 2011 vs. 2010 LVP run rate (mil’s) ~ 74 ~ 70 6% Sales $2,018 $1,741 16% Gross Profit $411 20.4% $374 21.5% 10% EBIT $205 10.2% $202 11.6% 1% EPS $1.48 $1.51 (2%) RoCE** 25% 26% (1p
Slide 5: Dividend Trend and Margin Performance
Dividend Trend - per share vs. cash paid $ / share M US$ 0.5 50 Dividend per share 0.4 29% 40 0.3 30 0.2 20 0.1 Dividend Payments 10 0 0 ‘97 ’98 ‘99 ’00 ‘01 ’02 ’03 ‘04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 highest ever yearly run rate $1.80 per share and annualized payment ~ $160M ALV Q3’11 Financial Earning
Slide 6: Returns Performance and Commodity Price Trends
Returns* Performance 35.0 26.4 Return on Capital Employed 24.6 25.0 20.8 15.0 12.9 17.0 7.6 Return on Equity 10.4 6.5 5.0 5.7 5.8 % 2007 2008 2009 2010 2011 -5.0 -15.0 Strong returns trend (* ) US GAAP reported Operating Income and Net Income ALV Q3’11 Financial Earnings Report - 11 Commodity Price
Slide 7: Light Vehicle Production
Light Vehicle Production - IHS’s forecast updates by month 20.9 15-Apr 15-Jul 20-Oct 20.2 19.7 20 19.2 18.5 18.4 18.4 17.9 18.0 10% 16.9 -6% 15 milion units 10 5 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Source: IHS (CSM) @ April 15, July 15, October 20, 2011 ALV Q3’11 Financial Earnings Report - 13 Light V
Slide 8: Light Vehicle Production Full Year; Thailand Flooding
Light Vehicle Production - Full Year 2011 vs. 2010 change Vehicles in millions 2010 2011 @ Oct 20 @ Jul 15 Americas 16.1 17.3 8% 9% - North America 11.9 13.0 9% 9% - South America 4.2 4.3 5% 7% Europe 19.0 20.0 5% 6% - WEU 13.1 13.6 3% 5% - EEU 5.9 6.4 8% 9% Japan 8.9 7.9 (11%) (16%) China 15.4 16.3
Slide 9: Financial Outlook; Major Occupant Restraint Suppliers
Financial Outlook Sales Q4 2011 FY2011 Organic > 9% >9% Acquisitions 0% < 2% Fx* ~ 0% < 5% Consolidated > 9% > 15% EBIT Margin ** 11 - 11.5% ~ 11% (*) 1 Euro = 1.37 US$, 1 US$ = 77 JPY for Q4 & 1 Euro = 1.39 US$, 1 US$ = 79 JPY for FY2011 (**) Excludes legal costs & other charges related to the on-
Slide 10: Light Vehicle Production and Segment Trend
Light Vehicle Production Trend - positioning for growth in growth markets ~ 100M 105 90 ~ 80M ~ 75M Growth Markets ~ 69M 75 Rest of World & 60 60 Eastern Europe 44 27 40 Developed Markets 45 11 8 Japan 9 30 8 ~ 42 16 16 ~ 41 Western Europe 14 ~ 35 13 15 North America 15 13 14 17 0 2007 2011 2012 201
Slide 11: Market Growth by Product; Growth in Active Safety
Market Growth by Product - the right product for evolving product demand $21 Billion 1.1 $18 Billion Active safety 0.4 3.5 Electronics 3.3 5.4 Side airbags 4.4 5.7 Frontal airbags 5.1 Seatbelts 4.9 5.7 2010 2013 ALV September 2011, Post IAA Frankfurt - 21 Growth in Active Safety - the right product
Slide 12: Market Shares; Growth in China
Market Shares - Passive Safety Global Total 1 SW 1 Seatbelts 1 ECU 2 Head A/B 1 Chest A/B 1 Passenger A/B 1 Driver A/B 2 0% 10% 20% 30% 40% 50% 60% * Including Delphi OR Autoliv’s share* ALV Q3’11 Financial Earnings Report - 23 Growth in China - estimated passive safety market shares 2008, % 2012, %
Slide 13: Growth in Brazil; Light Vehicle Production Outlook
Growth in Brazil - New airbag legislation Brazil 1,200 employees Production of: Retractors Buckles Seatbelt assembly Seatbelt webbing Airbag assembly Steering Wheels (including armatures & leather wrapping) Inflator assembly CARG 19% ALV September 2011, Post IAA Frankfurt - 25 Light Vehicle Producti
Slide 14: Our Response to the Uncertain Macro Situation
Our Response to the Uncertain Macro Situation - flexibility, liquidity and market presence 50% PERSONNEL 40% 20% 25% Temporary from 16% to 20% of total 20% HCC from 46% to 35% of total 10% Indirect from 34% to 29% of total 0% 0% 0% Q2'08 Q2'09 Q2'10 Q3'11 Q2'08 Q2'09 Q2'10 Q3'11 Q2'08 Q2'09 Q2'10 Q3
Slide 15: Cash Flow; Light Vehicle Production 3rd Quarter
Cash Flow - higher CapEx to support growth initiatives 2011 2010 2011 2010 2009 2008 2007 (US $ Mil’s unless specified)` Q3 Q3 LTM FY FY FY FY Net Income 139 141 646 596 13 165 288 Depreciation & Amortization 67 69 266 282 314 347 321 Other non-cash items ` 20 5 55 58 (42) 29 3 Change in operating W
Slide 16: Autoliv Production; YoY Change in Organic Sales and LVP
Autoliv Production** - 3rd Quarter Units in Millions (unless specified) 2011 Change vs.’10 Seatbelts 32.1 9% - Pretensioners (where of) 12.9 11% Frontal airbags (excl. knee) 7.7 14% Side Airbags 16.3 18% - Chest (Thorax) 8.5 28% - Head (Curtain) 7.8 8% Steering Wheels 3.0 4% Electronic Control Units
Slide 17: Flexibility - Associate Development; Sales Trend
Flexibility - Associate Development * 50,000 40,000 65% 54% 30,000 Since Q2’08 LCC 20,000 46% 35% HCC reduced from 46% to 35% or 10,000 HCC 19,910 to 16,716 0 50,000 40,000 20% 16% Temporary Permanent decreased from 84% to 80%, 30,000 84% 80% but increased in total numbers from 20,000 36,361 to 37,9
Slide 18: EBIT Trend; EPS Trend
EBIT* Trend - best 3rd quarter ever 250 200 150 100 50 MUS$ 0 2007 2008 2009 2010 2011 -50 -100 (*) Figures US GAAP ALV Q3’11 Financial Earnings Report - 35 EPS* Trend - 2nd best Q3 ever 2 1.5 1 0.5 US$ 0 2007 2008 2009 2010 2011 -0.5 -1 (*) Figures US GAAP ALV Q3’11 Financial Earnings Report - 36
Slide 19: Product Sales; Capital Structure
Product Sales - increases in passive and active electronics Seatbelts Airbags 2010 $7.2B St. Wheels Q3YTD2011 $6.2B Other Passive Elec. 10% 1% Active Elec. 10% 2% 5% 5% 32% 31% 8% 7% 46% 45% FAB ~ 19% and SAB ~ 26% in 2011 ALV Q3’11 Financial Earnings Report - 37 Capital Structure - strong investmen
Slide 20: Net Free Cash Flow Returns; US Light Vehicle Inventory
Net Free Cash flow Returns - vs. Market Cap % 20 Dividend + Buybacks 700 Net Free Cash Flow * 18 600 16 Yield (Net Free Cash Flow vs. Market Cap.) 14 500 12 400 10 300 8 6 200 4 100 2 0 0 2003 2004 2005 2006 2007 2008 2009 2010 LTM MUS$ (*) Net Free Cash flow (before financing) ALV Q2’11 Financial E
Slide 21: EU and US Vehicle Sales; China Passenger Car Sales
EU and US Vehicle Sales LTM* 18 16 14 EU US 12 million units 10 8 6 4 2 0 (*) Source: ACEA and Wards Auto ALV Q3’11 Financial Earnings Report - 41 China Passenger Car Sales Source: CPCA ALV Q3’11 Financial Earnings Report - 42
Slide 22: Major launches Q1 and Q2 2011
Major launches Q1 2011 Hyundai Grandeur Mitsubishi i-MiEV Chevrolet Aveo Dodge Charger Peugeot 508 FIAT 500 US Chrysler 300 ALV Q3’11 Financial Earnings Report - 43 Major launches Q2 2011 Range Rover Evoque Mercedes M Class Volkswagen Beetle Lancia Ypsilon Samsung SM7 Hyundai Veloster ALV Q3’11 Fina
Slide 23: Major launches Q3 2011; Key Platforms China
Major launches Q3 2011 Ford Ranger MINI Coupé Hover H6 Mercedes B-Class BMW 1 Series Chery Riich G3 Citroën DS5 ALV Q3’11 Financial Earnings Report - 45 Key Platforms 2011 SEPT YTD, China Nissan Qashqai Honda CRV Volkswagen Golf GreatWall Voleex C30 Emgrand EC7 Citroën C4 Chevrolet Cruze Buick Lacro
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