Autoliv, Inc. · NYSE:ALV
Autoliv — Q4 2024 Earnings Presentation
28 slides from Autoliv's earnings presentation, Jan 31, 2025
Slide 1: Earnings Call Presentation 4th Quarter 2024
More Lives Saved More Life Lived Earnings Call Presentation 4th Quarter 2024 January 31, 2025 January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 2: Safe Harbor Statement
Safe Harbor Statement* This report 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 that A
Slide 3: Q4'24 Key Highlights – Record Profit & Margins
Q4’24 Key Highlights – Record Profit & Margins ▪ Record profit − Solid sales despite a significant negative regional LVP** mix − Margin expansion driven by successful execution of cost reductions − Reached agreements with all major customers on inflation compensation ▪ Record earnings per share on l
Slide 4: Q4'24 Financial Overview
Q4’24 Financial Overview Margin expansion despite lower sales Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ -Millions US$ -Millions US$ -Millions -5% 5% -$27 $2 751 $349 $2 616 $334 13.4% Adj. Op. Margin* $447 12.1% Adj. $420 Op. Margin* Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4’24 *
Slide 5: Continued Significant Sequential and Year-over-Year Cost Improvements
Continued Significant Sequential and Year-over-Year Cost Improvements Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM Sales in relations to Average Headcount % US$ -Millions and in relations to sales US$ -Millions 300 11,0% 1 250 160 22% 140 250 10,0% 1 050 20
Slide 6: Q4'24 Light Vehicle Market Development
Q4´24 Light Vehicle Market Development At least 4pp of headwinds from regional mix; Improved Call-off accuracy Q4´24 LVP * Customer Call-off Accuracy** % % 100% 30% Normal China COEMs 25% 20% 15% S. Americas 80% 10% 5% Rest E.Europe of Asia 0% -5% N. Americas 60% -10% Japan China GOEMs W.Europe -15%
Slide 7: Q4'24 Sales Growth and Regional Sales Split
Q4’24 Sales Growth and Regional Sales Split Lower Sales on unfavorable currency translations effects, lower LVP** and a negative regional LVP** mix Sales Bridge Sales by Region Q4´24 US$ -Millions % $2751,40 -$69,80 -$21,0 $2615,80 -$44,80 China 23% Asia Americas 42% 30% Japan 9% Rest of Asia Europe
Slide 8: Q4'24 Organic Sales Growth – Impacted by Regional and Customer Mix
Q4’24 Organic Sales* Growth – Impacted by Regional and Customer Mix Outperformance - Organic growth* vs. LVP** (Percentage points) EUROPE Our Main Growth Drivers +3pp CHINA JAPAN AMERICAS -13pp +11pp -3pp Rest of ASIA +4pp * Non-US GAAP measure ** Light Vehicle Production (LVP up to 3.5 tons) accord
Slide 9: FY2024 Organic Sales Growth – Outperforming Global LVP by 2pp
FY2024 Organic Sales* Growth – Outperforming Global LVP by 2pp Outperformance - Organic growth* vs. LVP** (Percentage points) 2024 Global Market Share*** EUROPE +6pp CHINA JAPAN AMERICAS -7pp +13pp +0pp Autoliv Rest of ASIA ~44% Others +10pp (*) Non-US GAAP measure (**) Light Vehicle Production (LVP
Slide 10: Q4'24 Key Model Launches
Q4’24 Key Model Launches Zeekr Mix Honda Amaze Citroen C3 Aircross Lynk&Co Z20 Hyundai Ioniq 9 Toyota 4Runner Nio ET9 Acura ADX Skoda Kylaq Suzuki DZIRE Honda Ye S7 Nissan Murano January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: OEMs Reconsidering their Future Product Offerings
OEMs Reconsidering their Future Product Offerings – Resulting in Temporarily Low Sourcing Activities in 2024 FY2024 Order Intake Order Intake Lifetime Sales* ▪ Sourcing of new businesses was at the lowest level since 2018 for the industry • OEMs are reconsidering their future product offerings • Geo
Slide 12: FY2024 Order Intake Highlights
FY2024 Order Intake Highlights Order intake win with new OEMs* % of total order intake Multiple awards supporting industry trends and new markets 50% 40% Foldable steering wheel for Level 3+ Center airbag for rear seat Door mounted inflatable curtain airbag vehicles passengers for first and second r
Slide 13: Sustainability Highlights 2024
Sustainability Highlights 2024 I. Saving More Lives: We continued to expand our addressable users by expanding testing including diverse body shapes, ages, and genders. Through collaborations, we address protection for vulnerable road users. II. Health & Safety: We significantly improved our Recorda
Slide 14: Financials
Financials January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 15: Q4'24 Financial Overview
Q4’24 Financial Overview -US$ Millions unless specified Q4’24 Q4’23 Sales $2,616 $2, 751 Gross Profit $551 21.0% $530 19.3% Adj. Operating Income1 $349 13.4% $334 12.1% Adj. EPS -assuming dilution1 $3.05 $3.74 Adj. RoCE1,2 35% 33% Adj. RoE1,2 41% 47% Operating cash flow $420 $447 Dividend paid per s
Slide 16: Q4'24 Adjusted Operating Income Bridge
Q4´24 Adjusted Operating Income* Bridge vs. prior year $16 US$ Millions Operations 450,0 Primarily driven by 400,0 $57,30 -$6,30 -$1,0 350,0 $334,0 -$4,0 -$21,0 $349,0 ▪ Improved call-off accuracy -$10,0 300,0 ▪ Higher operational efficiency 250,0 Partly offset by 200,0 ▪ Lower sales 150,0 100,0 50,
Slide 17: FY2024 Financial Overview
FY2024 Financial Overview Earnings per share (EPS) US$ (US$ Millions unless specified) 2024 2023 Sales $10,390 $10,475 9,0 Gross Profit $1,927 18,5% $1,822 17.4% 8,0 Adj. Operating Income1 $1,007 9.7% $920 8.8% 7,0 Adj. EPS (assuming dilution) $8.32 $8.19 6,0 Adj. RoCE1,2 26% 23% 5,0 Adj. RoE1,2 28%
Slide 18: Cash Flow
Cash Flow Capex and D&A Continued strong performance from higher net income -US$ Millions unless Q4´24 Q4´23 2024 2023 2022 specified Net Income $243 $227 $648 $489 $425 Depreciation & Amortization 98 97 387 378 363 Other, net2 -29 -120 -29 -119 -133 Change in operating WC 107 243 53 235 58 Operatin
Slide 19: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales 35% 30% 25% ~$700 million Improvement in Trade WC since Q1´19 20% 15% 10% 5% 0% January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 20: Strong Balance Sheet & Cash Flow Supporting Shareholder Returns
Strong Balance Sheet & Cash flow Supporting Shareholder Returns Repurchased 10.2 million shares since the beginning of 2022 for $1,019 million under current mandate Shareholder Returns US$ Millions Share Repurchases Dividends 552 352 $771 million ~$1.9 billion in direct shareholder returns over the
Slide 21: Debt Leverage Ratio
Debt Leverage Ratio* Remains within the Long-term target range Net Debt * / EBITDA* Net Debt* and EBITDA** per the Policy Times US$ Millions 2,0 2 000 Net Debt EBITDA LTM 1.2x 1,5 0.5-1.5x 1 500 Long-Term Target: 1.0x Long-Term 1,0 Range 1 000 0,5 0,0 500 Q1´23 Q2´23 Q3´23 Q4´23 Q1´24 Q2´24 Q3´24 Q4
Slide 22: Light Vehicle Production Outlook
Q1´24 Global LVP is expected to Light Vehicle Production Outlook drop sequentially by Autoliv expects global LVP* in 2025 to decline inline with S&P’s forecast 14% Global Light Vehicle Production* -Million units 25 -3.0% 24 S&P Global: Light Vehicle Production* 1.7% 23 1.2% Q1´25 FY2025 Region 22 -1
Slide 23: 2025 Business Outlook – Further Margin Expansion Expected
2025 Business Outlook – Further Margin Expansion Expected Compared to 2024, we expect Adjusted Operating Margin* Development 2022-2024 % ▪ Lower Global LVP according to S&P Global ▪ Similar seasonality as for the past three years 14% ▪ Headwinds from supplier cost inflation 12% − Additional customer
Slide 24: FY2025 vs. FY2024 Improvement Supporting our Adj. Operating Margin Target
FY2025 vs. FY2024 Improvement Supporting our Adj. Operating Margin Target January 27, 2023 ALV – Q4-2022 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 25: Full Year 2025 Guidance & Assumptions
Full Year 2025 Guidance & Assumptions Full Year 2025 Guidance Organic sales increase1 Around 2% Adjusted Operating Around 10 to 10.5% margin1 Operating Cash flow3 Around $1.2 billion Capex, net % of sales Around 5% Assumptions Exchange Rates US$/EUR 0.9462 LVP Growth Around -0.5% US$/JPY 150.17 FX A
Slide 26: Q&A
Q&A January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 27: Q4'24 Product Volumes
Q4´24 Product Volumes Autoliv Quantities Delivered Q4’24 vs. PY** (%) (Millions unless specified) Seatbelts 35.9 -6% ▪ Pretensioners (of which) 25.3 -4% ▪ Active Seatbelts (of which) 1.5 12% Frontal Airbags 14.8 -8% ▪ Knee Airbags (of which) 1.5 -16% Side Airbags 34.7 1% ▪ Chest (Thorax) 18.0 -1% ▪
Slide 28: Saving More Lives
Saving More Lives Saving More Lives January 31, 2025 ALV – Q4 and FY2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public