Slide 1: Earnings Conference Call and Webcast
1st Earnings Conference Call and Webcast 4th Quarter 2017 Financial Results January 30, 2018 1 January 30, 2018 ALV – Q4-2017 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved 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: FY'17 Recap
FY’17 Recap Strong performance even with increased RD&E investments for long-term growth ▪ Growth and Margins − Record sales as a result of consolidated sales growth of ~3% where of organic sales* growth ~1.5% − Record gross profit resulting in an 8.6% adjusted operating margin* where RD&E was 7.1%
Slide 4: FY'17 Recap - Strategic Review Process Concluded
FY’17 Recap - Strategic Review Process Concluded Prepare for next steps for “Tax-free Spin-off” of Electronics Business during Q3’18 ▪ Both entities will be US companies with HQ* in Stockholm − Dual listings on the stock market in the US (primary listing) and Sweden ▪ RemainCo (Passive Safety) to re
Slide 5: FY'17 Recap
FY’17 Recap Strong order intake in both segments Passive Safety Electronics RD&E ~50% of the Electronics orders over RD&E 7.1% of sales in 2017 ~50% Order intake win rate for three years (2015-2017) last four years (2014-2017) is in Passive Safety RD&E% of sales peak ACTIVE SAFETY FY’17 while Electr
Slide 6: FY'17 Recap: Active Safety and Zenuity Update
Customer** Snapshot – Dec’17 FY’17 Recap Active Safety and Zenuity Update ▪ Active Safety − Strong order intake in FY’17, estimated market share in the “high teens” − Order intake includes a 4th vision customer and our 1st LiDAR and ROADSCAPE customers − Temporary lower growth in FY’17-18 due to low
Slide 7: FY'18 - Looking ahead
FY’18 - Looking ahead Executing towards the targets of the standalone businesses ▪ The Spin next steps − H1’18 Disclose recast historical figures (2015, 2016, 2017) for new standalone entities, Form 10 filing, Host Analyst Days and Deal Roadshows in the US and Europe for standalone entities ahea
Slide 8: FY'18 - Key Models in Passive Safety
FY’18 - Key Models in Passive Safety Contributing to the ramp-up of our expected organic sales* growth Honda Accord Tesla Model 3 JOEM JOEM EU OEM Honda Odyssey VW Polo D3 D3 Honda CR-V Nissan Qashqai / Rogue Hyundai Genesis G70 D3 These models are anticipated to contribute ~$500M towards the expect
Slide 9: Overall Market Conditions
Overall Market Conditions Major light vehicle markets remain mixed and uncertain FY 2018 LVP* Millions of YoY Chg. Region ▪ Asia China Vehicles 26.8 @ Jan 16 1% − China inventories** declined during FY17 to relatively low levels Japan 8.7 (3)% − The Q1’18 LVP* is expected to decline YoY* in China ~4
Slide 10: Q4'17 Highlights
Q4’17 Highlights Strengthening our market position and preparing for our step-up in growth ▪ Financial Performance − Organic Sales* growth 1.1%, slightly better than guidance and LVP** − Adjusted Operating Margin* 9.6%, better than guidance − Adjusted EPS* $2.03, ~19% increase YoY ▪ Capital Structur
Slide 11: Operating Income and Margin Bridge Q4'17 vs. Prior Year
Operating Income* and Margin* Bridge Q4’17 vs. Prior Year Q4’17 vs. Prior Year (30 bps better) 9.3% 9.6% $243 $263 MUS$ Operating Margin* of 9.6% includes ~60 bps increase in RD&E, net vs. Prior Year (*) Non-US GAAP measures exclude costs for capacity alignments, antitrust related matters, separatio
Slide 12: Q4 Product Volumes
Q4 Product Volumes Strong volume growth in high value-added Seatbelts Autoliv Quantities Delivered 2017 vs. PY** (%) (Millions unless specified) Seatbelts 39.9 4% ▪ Pre-tensioners (of which) 19.7 10% ▪ Active Seatbelts (of which) 1.2 18% Frontal Airbags 13.7 2% ▪ Knee Airbags (of which) 1.4 (5)% Sid
Slide 13: Cash Flow
Cash Flow Investments for growth and shareholder returns (US $ Millions unless specified) Q4’17 Q4’16 2017 2016 2015 2014 2013 2012 Net Income (56) 144 303 562 458 469 490 486 Depreciation & Amortization*** 341 104 660 383 319 305 286 273 Other, net (4) (16) (27) 1 0 42 43 10 Change in operating WC*
Slide 14: FY Segment Reporting
FY Segment Reporting Strong operational performance in Passive Safety driving group profitability Organic Sales* Sales (US$ Millions) Operating Margin (%) CapEx (%) D&A (%) Headcount Growth (%) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Passive Safety *** 2.2% 8,135 7,919 10.2 10.3 5.7 5.0 3.
Slide 15: Looking Ahead Q1'18 Guidance
Looking Ahead Q1’18 Guidance ▪ Sales − Organic Sales* growth <1% YoY** − Strong growth in Thailand and India, South America and Japan is partially offset by a decline in Europe, South Korea and China − Currency translation >6% YoY − Mainly due to the weakening of the US$ during 2017 ▪ Operating Marg
Slide 16: Looking Ahead FY'18 Indication
Looking Ahead FY’18 Indication ▪ Sales − Organic Sales* growth >7% YoY** − Mainly related to strong growth in all major regions including Active Safety which is partially offset by South Korea and lower Restraint Controls and Brake Systems − Currency translation ~4% YoY − Mainly due to the continued
Slide 17: Financial Outlook
Financial Outlook Consolidated sales, net and operating margin* initial FY indication ALV Group Q1’18 FY’18 Segments FY’18 Passive Safety Electronics Sales Sales Organic* <1% >7% Organic* >10% ~(3)% Acquisitions - - Acquisitions - - Fx** >6% ~4% Fx** ~4% ~3% Consolidated Sales, net >7% >11% Consolid
Slide 18: The Veoneer brand will be a visionary pioneer in automotive electronics
Heading The Veoneer brand will be a visionary pioneer in automotive ▪ Text electronics, ADAS, automation and new mobility 18 September 19, 2017 Name of presentation Copyright Autoliv Inc., All Rights Reserved Internal
Slide 19: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com