Slide 1: Autoliv in China Presentation
Autoliv in China Presentation Autoliv China President Arthur Blanchford June 4th, 2014 Copyright Autoliv Inc., All Rights Reserved
Slide 2: Every year our products save over 30,000 lives
Every year our products save over 30,000 lives and prevent ten times as many severe injuries AEP Presentation 2012 Oct
Slide 3: 60 Years of Innovation
60 Years of Innovation 1956 Seatbelt 1989 Pretensioner 1995 Knee Airbag 1953 1980 Airbag 1994 Side Airbag 2012 Pedestrian 2008 Pedestrian 2005 Pedestrian Protection Airbag Warning Protection 2012 1998 Side Curtain 2006 Active Seatbelt Airbag AEP Presentation 2012 Oct
Slide 4: China Economy Overview
China Economy Overview 2014 Q1 Economy GDP growth slowing down but still roughly meeting expectations GDP growth is 7.4% for 2014 Q1 (2011: 9.3%; 2012: 7.8%; 2013: 7.7% ) FY GDP growth is forecasted at 7.5% by government Inflation is currently not a concern CPI for 2014 Q1 is 2.4% (2013:
Slide 5: China LVP Development Trend Forecast
China LVP Development Trend (Million) - IHS & CAAM 28,9 2018 27,4 27,8 2017 26,3 Forecast 26,5 2016 25,1 24,7 2015 23,4 22,8 2014 21,6 20,9 2013 19,8 Actual 18,2 2012 17,2 17,1 2011 16,1 0 5 10 15 20 25 30 35 * IHS incl. passenger car & 0-3.5 ton LCV IHS of 2014 May * CAAM incl. passenger car & 0-6
Slide 6: Still Higher Growth Expected in Coming Years
Still Higher Growth Expected in Coming Years 160 148 136 140 PV Ownership per 1000 People 123 120 110 97 100 1st Rapid Growth Period 2nd Rapid Growth Period 85 73 80 65 54 60 44 34 40 22 26 18 Forecast 9 11 14 20 3,9 4,4 5,4 Actual 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 7: End-Users Purchasing Behaviors
End-Users Purchasing Behaviors 100% 90% 82% 75% 50% 25% 0% First Car Buyer Cash Purchasing Buyer *Data resource: LMC Automotive in AN China, May 24, 2014 AEP Presentation 2012 Oct
Slide 8: LKQ Index vs. LV Sales vs. GDP
LKQ Index vs. LV Sales vs. GDP 2014 Jan 2014 Feb 2014 Mar 2014 Apr KQ Index 6.6% 5.8% 6.0% 5.8% GDP YTD YoY% 7.4% LV Sales YTD YoY% 6.0% 10.6% 9.2% 9.2% PV sales YTD YoY% 10.8% 15.2% 14.1% 14.1% KQ index/ GDP LV/PV Sales GDP YTD PV Sales KQ Index LV Sales YoY% YoY% YoY% • KQ Index = 25% railway deli
Slide 9: 2014 Apr Production & Sales
2014 Apr Production & Sales (Unit: ‘000) 2014 Apr 2014 Apr 2014 Apr YTD 2014 Apr YTD Production Sales Production Sales Volume YoY% Volume YoY% Volume YoY% Volume YoY% Total Vehicle Market 2,068 8.8% 2,004 8.8% 7,953 9.0% 7,925 9.1% Light Vehicle 1,943 9.5% 1,878 9.5% 7,501 9.0% 7,498 9.2% Passenger
Slide 10: Light Vehicle (Unit: '000)
Light Vehicle (Unit: ‘000) 2500 LV Production 100% 80% 2000 60% 1500 40% 1000 20% 0% 500 ‐20% 0 ‐40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Monthly 1871 1280 1955 1773 1666 1574 1502 1594 1825 1821 2025 2021 2014 Monthly 1954 1548 2061 1943 2014 MoM% ‐20,8% 33,1% ‐5,7% 2014 Monthly YoY
Slide 11: LV MS% - By Brand Region
LV MS% - By Brand Region Production Production 2013 FY 2014 Apr YTD US US; 19.67% 18,83% (+0.84%) CN CN; 37.54% 39,06% (-1.52%) KR KR; 7,60% 7.60% (0.00%) JP; 15,12% JP 14.04% (-1.08%) EU EU; 21.15% 19,39% (+1.76%) Sales Sales 2013 FY 2014 Apr YTD US US; 19.59% 18,73% (+0.86%) CN CN; 37.10% 39,40% (
Slide 12: LV MS% - By OEM
LV MS% - By OEM Production Production 2013 FY 2014 Apr YTD O JP O EU O JP, 2.59% O EU, 2.13% 2,60%1,90% VW (-0.01%) (+0.23%) VW, 16.01% 14,82% (+1.19%) O CN, 20.39% O CN (-2.81%) 23,20% GM 15,25% GM, 15.90% (+0.65%) PSA, 3.00% (+0.33%) PSA Great Wall, 2,67% 3.26% Great Wall (-0.37%) 3,63% Honda, 3.6
Slide 13: Key OEM LV Sales
Key OEM LV Sales (Unit: ‘000) 2014 Apr YTD sales YoY % Total Growth% 1400 50% Thousands 42% 1254 37% 40% 1182 1200 30% 23% 24% 22% 1000 16% 20% 13% 10% 10% 10% 9% 10% 800 10% ‐1% 583 ‐3% 0% 600 ‐8% ‐7% ‐9% 440 ‐10% 400 ‐18% 313 290 290 287 287 247 ‐25% ‐33% ‐20% 230 227 184 162 200 146 138 135 126 1
Slide 14: MS% - By Segment
MS% - By Segment LV 2013 FY Sales LV 2014 Apr YTD Sales by Segment by Segment LCV, LCV 20.64% 21,44% (-0.79%) MPV MPV, 8.34% 6,29% (+2.05%) Sedan, 55.30% Sedan (-2.57%) 57,87% SUV SUV, 14,40% 15.72% (+1.32%) PV 2013 FY Sales PV 2014 Apr YTD Sales by Segment MPV, by Segment MPV C C, 2.27% 10.51% 8,01
Slide 15: 2014 Inventory Index
Data Source: CADA 2014 Inventory Index 2013 2014 Normal Level: 0.8~1.2 Critical Level: 1.5 2,33 2,01 1,68 1,63 1,52 1,58 1,53 1,38 1,46 1,35 1,38 1.5 1,29 1,19 1,10 0,97 1,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * Inventory Index = Auto Dealers monthly Inventory/Sales AEP Presentation 201
Slide 16: 2014 Inventory Index by Customer Segment
2014 Inventory Index by Customer Segment OEM’s Index higher than 2.5 2014 Mar 2014 Apr 2,98 2,22 2,12 1,79 1,30 1,43 2,83 1,18 2,79 JV brand Import brand Local brand Cadillac JLR Changan Suzuki AEP Presentation 2012 Oct
Slide 17: Vehicle Inventory Alert Index
Vehicle Inventory Alert Index - 12-month round Normal Level: Below 50% Critical Level: Above 50% 70% 60% 53,2% 58,2% 51,3% 50,5% 56,1% 50% 48,2% 48,0% 46,7% 46,3% 44,8% 44,5% 40% 40,0% 30% 2013 Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar Apr May Jan Data Source: CADA (China Automobile Dealers Associati
Slide 18: Aspiration for Autoliv China 2017
"Aspiration for,Autoliv Ghina 2017 pute Ching, | he best choice The Bete pane to ake elders The benchmark in Autoliv and China Working together as one Autoliv MORE LIVES
Slide 19: Autoliv in China
Autoliv in China History Autoliv Operations in China 2013 CNF/CNC – Autoliv Texile & Cushion plant 2013 1 Headquarter ACP - Autoliv China Propellent Campus 2012 ACC new plant inaugurated 1 Technical Center 2011 NHA new plant inaugurated 2010 12 Manufacturing Plants Changchun In-House Airbag Cushion
Slide 20: Autoliv China Organization
Autoliv China Organization President ACE Arthur Blanchford Quality, Operation Operation Operation Capital Projects and Purchasing Sales Engineering Finance HR Logistics & APS Airbag Seatbelt SWIP Footprint Strategy Vincent Zhang Fredreric Burguez Paul Li Jennifer Cheng Hao Qian Olivia Zhao Andrew La
Slide 21: Headcounts Development
Headcounts Development 12000 10000 797 ACE TCH 674 8000 580 552 6000 449 8893 8178 4000 333 6954 223 6342 200 5084 2000 3748 3055 2790 2019 978 515 691 180 185 310 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Forecast AEP Presentation 2012 Oct
Slide 22: Yearly Employee Resignation
Yearly Employee Resignation Professional staff 25,00% resignation decreased 26% to 7.4% in 2013 20,00% 19,50% 15,00% 13,70% Market Data 13,40% 13,60% 12,80% 13,00% 10,72% 10,72% 10,50% 10,00% 9,10% 5,00% 0,00% Autoliv All Industries - Manufacture 2009 2010 2011 2012 2013 AEP Presentation 2012 Oct
Slide 23: Autoliv China Sales (MUSD)
Autoliv China Sales (MUSD) 1600 1405 2013 ALV Global Sales 1400 1200 1098 Europe 982 33% 1000 China 16% 813 800 600 Japan 484 8% 400 290 ROW Americas 10% 200 33% 0 2008 2009 2010 2011 2012 2013 Actual AEP Presentation 2012 Oct
Slide 24: 2013 Best Selling Models with Autoliv Products
2013 Best Selling Models with Autoliv Products SGMW Hongguang SVW Lavida FAW-VW Sagitar FAW-VW Jetta (1) / AB, SB, SW, EL (2) / SB (5) / SB (6) / SB SGM Cruze Ford Focus FAW-VW Bora SVW Passat (7) / AB, SB, EL (8) / AB, SB (9) / SB (10) / SB Haval H6 SVW Tiguan Hyundai Verna Geely Emgrand (15) / AB,
Slide 25: 2014 Major Launches
2014 Major Launches Geely EC7 Haval H8 SGM Cruze AB, SB, SW, EL AB, SB, SW, EL AB, SB, EL Nissan X-Trail SGMW CN200 DPCA 2008 AB, EL AB, SB, SW, EL AB, SB, SW, EL Honda Odyssey SVW Octavia MQB Ford Focus AB, EL SB AB * All model pictures are only for reference here and the final pictures subject to
Slide 26: Leading Market Position in Passive Safety
Leading Market Position in Passive Safety Global 1 Europe 1 North America 1 Japan 12 China 1 0% 20% 40% 60% Autoliv’s share AEP Presentation 2012 Oct
Slide 27: CTC State-of-the-Art Testing Capabilities
CTC State-of-the-Art Testing Capabilities Complete development capability and experience of restraint system and products • CAD & CAE • Sled test • Full scale crash test • Restraint system products test Part of Autoliv global research and development capabilities AEP Presentation 2012 Oct
Slide 28: China Technical Center (CTC)
China Technical Center (CTC) Largest tech center (TC) in ALV by projects and customers Now leading global projects and first launch of new designs China: Unique market requirements for VOC, odor, ELV, horn durability and noise Fastest (9 mo.) SW development time and only one developing switc
Slide 29: Zero-Defect Policy
Zero-Defect Policy Design robust products Buy flawless components Manufacture flawless Verify conformity of products products Product Supply Base Production Mistake Development System Proofing Zero Defect means no customer PPM, no rework, no reprocess, no reject, no bad component reaching the produc
Slide 30: Excellent Customers PPM
Excellent Customers PPM 2007 2008 2009 2010 2011 2012 2013 2014 Mar YTD Customer PPM AEP Presentation 2012 Oct
Slide 31: Major Customer Awards for 2013
14 Major Customer Awards for 2013 (And a Shingo Prize) Customer name Award name When Where SGMW Excellent supplier 19th Dec. 2013 Guilin, Guangxi BYD Quality Assurance 2014.3.18 ACI ZNA郑州日产 (Nissan) Best logistics 2014.1 Guangzhou NCIC日产中国 (Nissan) Best logistics 2014.2 Shanghai NCIC日产中国 (Nissan) Be
Slide 32: Q5 - Autoliv Employees with Quality in Focus
Q5 - Autoliv Employees with Quality in Focus Q5 is the journey which will shape an Autoliv culture leading to zero defects and best value for all our customers Reduce risk for critical quality issues and ”near misses”. Drive toward zero customer issues and zero defects Provide customers with pro
Slide 33: Current Focus and Challenges
Current Focus and Challenges Developing Sustainable Capacity – Top issue and focus Human Capital Working on hiring needed workers and management 1.1 Jobs for every worker in China today and cost increasing 10-15% p.a. Current Capital Investments Several New Plants and Major Expansions this
Slide 34: Growth in China - Vertical Integration for Sustainable Capacity
Growth in China - Vertical Integration for Sustainable Capacity 1990 Seatbelts Production 2006 Steering Wheels Production 2010 Cushions in-house 1999 Airbags Production 1990 1995 2000 2005 2010 2014 2013 1996 Gas Generants Webbing Production Production 2004 Inflators Production Electronics 2014 Prod
Slide 35: Investments for Growth - Fusion of Active and Passive Safety
Investments for Growth - - Fusion of Active and Passive Safety Technologies ACTIV PASSI E RADAR SAFETY DOMAIN CONTROLLER VE PEDESTRIAN AIRBAG SAFETY LRR Narrow Band Brake Controls Integration SAFETY Multi‐Mode with Airbag ECU NIGHT VISION Automatic Animal Detection KNEE AIRBAG Dynamic Spot Light Sen
Slide 36: Autoliv - Safety Systems
Autoliv - Safety Systems Active Safety Autoliv Every year, Autoliv’s products save over 30,000 lives Passive The Worldwide Leader in Automotive Safety Systems Safety AEP Presentation 2012 Oct