Autoliv, Inc. · NYSE:ALV

Autoliv — Investor Day (May 2013)

24 slides from Autoliv's investor day presentation, May 14, 2013

  1. Slide 1: Autoliv's Business Plan

    Autoliv’s Business Plan Capital Market Day Vårgårda, May 14, 2013 Driven for Life. Jan Carlson President & CEO Copyright Autoliv Inc., All Rights Reserved

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement * Each of the presentations herein contain 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

  3. Slide 3: Safety is our DNA

    Safety is our DNA Page- 3 Copyright Autoliv Inc., All Rights Reserved

  4. Slide 4: Capital Market Day Press Releases

    Capital Market Day Press Releases Strategy and Targets • Outlines Strategy • Updates Long Term Targets • New Debt Policy First Stereo Vision Contract in Active Safety Page- 4 Copyright Autoliv Inc., All Rights Reserved

  5. Slide 5: Today's Program

    Today’s Program Business Plan and Targets Financials and New Debt Policy Growth Markets Innovations Active Safety Page- 5 Copyright Autoliv Inc., All Rights Reserved

  6. Slide 6: Long Term Targets

    Long Term Targets* Grow organic sales at least in line with our market Net Debt/EBITDA around one times Operating margin 8-9% over the business cycles EPS growth faster than organic sales growth Excluding effects of currency (*) US GAAP excluding costs related to the antitrust investigations Page- 6

  7. Slide 7: Previous Debt Policy

    Previous Debt Policy* 4 Old Policy < 3 times Leverage Ratio * 3 Current limitation Interest Coverage Times significantly above 2.75 2 times and Leverage ratio 1 significantly below 3 times. 0 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 (*) Non US GAAP measure, see Annual Reports for reconciliation Page-

  8. Slide 8: Revised Debt Policy

    Revised Debt Policy* 4 Leverage Ratio * Long-term Range 3 Leverage ratio policy in the range of 0.5 to 1.5 Times 2 times with a long-term Max target around 1 time. 1 New Target Min 0 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 We intend to start adjusting this year, and plan to be within the range durin

  9. Slide 9: Steady Growth Hides Dramatic Business Transformation

    Steady Growth Hides Dramatic Business Transformation Challenging World Sales Protection to Prevention 70 60 Million Light Vehicles 50 10 40 8 30 6 US $ (illions) US$ (Billions) 20 4 10 2 0 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 LVP Growth Markets LVP Triad Page- 9 Copyrigh

  10. Slide 10: How to continue to grow?

    How to continue to grow? 9 000 6 000 US$ (Millions) * * 3 000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (*) DIR estimate. Takata Guidance for FY2012 period ending March 2013 (*) TRW OSS, excludes electronics and driver assist systems Page-

  11. Slide 11: Market Forecast – Current Market CAGR 5%

    Market Forecast – Current Market 40 35 30 CAGR 5% 25 US$ (Billions) 20 15 10 5 0 2012 2015 2017 Passive Safety Developed Markets Passive Safety Growth Markets Active Safety Page- 11 Copyright Autoliv Inc., All Rights Reserved

  12. Slide 12: Market Forecast – Additional Potential Market

    Market Forecast – Additional Potential Market 40 35 Potential Market 30 CAGR 5% 25 US$ (Billions) 20 Current Market 15 10 5 0 2012 2015 2017 Passive Safety Developed Markets Passive Safety Growth Markets Active Safety Potential market: Stability Control and Rear/Surround View Systems Page- 12 Copyri

  13. Slide 13: Light Vehicle Production Growth 2012 thru 2017

    Light Vehicle Production Growth - 2012 thru 2017 2012-17 CAGR LVP ~ 98M 100.0.0 Global Market 4% ~ 91M Growth Markets 7% ~ 80M 80.0.0 33 30 RoW + EEU 5% 25 ~59M 60.0.0 ~42M China 9% 26 23 17 40.0.0 8 Japan (4%) Light vehicles millions 9 8 13 13 20.0.0 13 WEU 2% ~39M ~37M 15 17 18 North America 3% .0

  14. Slide 14: Market Drivers: Rating programs evolution

    Market Drivers: - Rating programs evolution EuroNCAP 2014 • Active Safety weighting increases from 10% to 20% • Active Safety required to achieve 5 Star 2015 • Revision of passive safety side impact test 2017 • Active Safety required to achieve 4 Star Other NCAP programs • Active safety inclusion in

  15. Slide 15: Market Drivers: Increasing penetration in growth markets

    Market Drivers: - Increasing penetration in growth markets China 100% India 100% 80% 80% 60% Frontal 60% Frontal Chest Chest 40% 40% Head Head 20% 20% 0% 0% 2012 2015 2017 2012 2015 2017 South 100% Global 100% America 80% 80% 60% Frontal 60% Frontal Chest Chest 40% 40% Head Head 20% 20% 0% 0% 2012 2

  16. Slide 16: Market Drivers: Innovation in Passive Safety

    Market Drivers - Innovation in Passive Safety Strengthening market leadership through innovation Pedestrian Protection Airbag Pre pretentioner Knee Airbag Rear seat safety Page- 16 Copyright Autoliv Inc., All Rights Reserved

  17. Slide 17: Sales Drivers: Strong presence in Growth Markets

    Sales Drivers: - Strong presence in Growth Markets 30 2012 ALV Market Share 25 Growth Markets Growth Markets excl. US$ (Billions) China CAGR 11% 20 China GAGR 14% 15 Japan CAGR (4%) 34% 10 W.Europe CAGR 2% 5 North America CAGR 4% 0 2012 2015 Page- 17 Copyright Autoliv Inc., All Rights Reserved

  18. Slide 18: Sales Drivers: Strong presence in product growth segments

    Sales Drivers: - Strong presence in product growth segments Market by product 30 000 Active Safety Autoliv Market Shares CAGR 27% 25 000 Product 2012 2015 Steering Wheel CAGR 4% Active Safety 20% 24% 20 000 Electronics Steering 27% 27% CAGR 4% Wheel 15 000 Side Airbags Electronics 22% 24% CAGR 3% 10

  19. Slide 19: Active Safety - a Strategic Journey

    Active Safety - a Strategic Journey - On track to reach 500 MUSD sales target Launches Night Vision/ Radar/ Mono Vision/ Brake Stereo BMW Mercedes BMW Control Vision 1000 900 800 Potential Astyx Acquisitions 700 US$ Millions 600 Radar Visteon Acquisitions 500 Visteon RC Tyco Radar Radar Hella 400 Vi

  20. Slide 20: Sales Drivers: Strengthen ALV in Active Safety

    Sales Drivers: - Strengthen ALV in Active Safety Stereo Vision Cameras For Premium OEM Launch 2015 Possible applications: • Autonomous Emergency Braking • Intelligent Speed Assist • Pedestrian Detection • Light Source Recognition • Lane and Road Departure Warning • Adaptive Cruise Control • Queue As

  21. Slide 21: Active Safety Summary

    Active Safety Summary Broadest product portfolio today Innovation and integration in brake control major opportunity Active M&A strategy to be the most complete supplier in Active Safety Page- 21 Copyright Autoliv Inc., All Rights Reserved

  22. Slide 22: Financial Strategy – Increasing Shareholder Value

    Financial Strategy - Increasing “Shareholder Value” Long-term operating margin target* 8-9% thru the business cycles Off-set customer pricing margin effect with; Direct material savings ≥ 3% Direct labor savings ≥ 5% New Value-added products Capacity alignments to manage global footprint RD&E invest

  23. Slide 23: Summary

    Summary Go aggressively for market share in active safety 150 000 125 000 Strengthen passive safety leadership further 100 000 75 000 Have the best geographical footprint 50 000 Continue to lead technology in passive & active safety 25 000 0 2012 Grow organically and through M&A 150,000 lives saved

  24. Slide 24: Autoliv - Safety Systems

    Autoliv - Safety Systems Active Safety Autoliv Every year, Autoliv’s products save over 25,000 lives Passive The Worldwide Leader in Automotive Safety Systems Safety Page- 24 Copyright Autoliv Inc., All Rights Reserved

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