Autoliv, Inc. · NYSE:ALV

Autoliv — Q2 2009 Earnings Presentation

19 slides from Autoliv's earnings presentation, Jul 21, 2009

  1. Slide 1: 2nd Quarter Financial Earnings Teleconference

    Teleconference 2nd Quarter Financial Earnings July 21, 2009 Copyright Autoliv Inc., All Rights Reserved

  2. 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 (PSLRA). All such statements are based upon our current expectations and various assumptions, and app

  3. Slide 3: Strong Execution

    Strong Execution ƒ Better than expected sales & profitability ¾ Outperformed LVP in North America ¾ Further benefit from cost reduction initiatives ~ 4,000 net headcount reduction YTD ƒ Exceptional cash flow ¾ Net debt reduction $93M ¾ Free cash flow $95M ¾ CapEx and inventory reductions continue Re

  4. Slide 4: Q2'09 Overview

    Q2’09 Overview ƒ Sales & EBIT margin well ahead of guidance ƒ Strong free cash flow performance ƒ Solid foundation for 2H’09 (MUS$) 2009 2008 Sales $1,193 $1,908 EBIT (**) $20 $155 EPS (***) $0.02 $1.31 Free Cash Flow (*) $95 $87 (*) After CapEx, net (**) Non-US GAAP, including restructuring 2009 &

  5. Slide 5: Cash Flow

    Cash Flow* (MUS$) 2009 2008 LTM** 2008 2007 2006 Q2 Q2 Net Income (21) 93 (88) 172 296 423 Depreciation & Amortization 79 86 326 347 321 303 Other non-cash items (3) (6) 36 21 (5) (9) Change in operating WC 72 (14) 135 73 169 (157) Cash from operations 127 159 409 614 781 560 CapEx, net (32) (72) (2

  6. Slide 6: Light Vehicle Production - Current Quarter

    Light Vehicle Production - Current Quarter Units in millions Q1’09 Q2’08 Q2’09 Q2 Chg. North America 1.7 3.5 1.8 (49%) - Domestic (*) 1.0 2.1 0.9 (56%) - New Domestic 0.7 1.4 0.9 (39%) ~(35%) Europe 3.5 6.1 4.6 (25%) - WEU 2.5 4.3 3.3 (23%) - EEU 1.0 1.8 1.3 (28%) Japan 1.5 2.6 1.6 (39%) Total Triad

  7. Slide 7: US Light Vehicle Inventory

    US Light Vehicle Inventory 120 100 80 60 40 2009 2008 5 Yr Avg 20 0 Days Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 63 days on hand in June ’09 ~ 2.2M vehicles * Includes both Domestically Manufactured and Imported Vehicles ALV Q2 Earnings Teleconference July 21, 2009 - 7 Copyright Autoliv Inc.

  8. Slide 8: Autoliv Production - Current Quarter

    Autoliv Production - Current Quarter Units in Millions Q2’09 Q2 Chg. vs.’08 Seatbelts 23.2 (25%) - Pretensioners (where of) 8.7 (34%) Frontal airbags (excl. knee) 4.4 (33%) Side Airbags - Chest (Thorax) 4.7 (25%) - Head (Curtain) 4.5 (27%) Steering Wheels 1.7 (36%) Electronic Control Units 1.9 (21%)

  9. Slide 9: Gross Margin

    Gross Margin 25.0 20.0 21.0 21.4 20.6 19.9 19.5 15.6 15.0 Q2 ‘09 vs. ‘08 ƒ Sales effect (610 bps) 10.0 ƒ Labor & Other cost reductions (net) 160 bps ƒ Commodity 30 bps 5.0 ƒ Currency 30 bps Gross margin effect (390 bps) 0.0 % 2004 2005 2006 2007 2008 2009 ALV Q2 Earnings Teleconference July 21, 2009

  10. Slide 10: Operating Margin

    Operating Margin 25.0 Q2 ‘09 vs. ‘08 20.0 ƒ Gross profit (390 bps) ƒ Sales leverage effect (440 bps) 15.0 ƒ Labor and other cost reductions 190 bps TOTAL (640 bps) 10.0 9.0 8.1 8.7 8.8 7.7 5.0 1.7 % 0.0 2004 2005 2006 ** 2007 2008* * * *2009 -5.0 -10.0 (*) Non US GAAP Æ including restructuring in 20

  11. Slide 11: Action Program & Other Actions - Summary

    Action Program & Other Actions - Summary 2008 2009 MUS $ (unless otherwise specified) Plan Actual Q2 Q2YTD Cost $75 $74 ~ $32 ~ $48 Cash outlay $18 ~ $21 ~ $42 Savings $120 ~ $29 ~ $75 ~ $125 Cumulative People affected, net 3,000 ~ 5,900 ~ 10,000 ~ 10,000 Accelerate material initiatives ~ $0 ~ $4 ~

  12. Slide 12: Associate vs. Sales Development

    Associate vs. Sales Development Net Change ** Direct Indirect Temps Perm HCC LCC TOTAL Q2 vs. Q1 2009 343 (557) 739 (953) (380) 166 (214) Q2 vs. Q2 2008 (7,532) (2,500) (3,179) (6,853) (5,302) (4,730) (10,032) LTM Sales Associates * MUS$ 7,000 40,000 46% 6,000 35% 30,000 LLCC LCC 5,000 55% 4,000 20,

  13. Slide 13: Commodity Price Trends

    Commodity Price* Trends Steel Index (MEPS) Aluminum (LME) 300 3500 250 3000 200 2500 Index USD/tonne 150 2000 100 1500 50 1000 0 Jan-2004 Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 500 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Zinc (LME) 5000 Commodity (2009) Q1 Q2 Q3(F) Q4(F) Total 4500 4000 Steel 7 3

  14. Slide 14: Significant Financial Resources

    Significant Financial Resources - Status @ June 2009 $US B 1.75 1.50 ~ $1.2 B Cash and Debt Maturities* Unused Credit Facilities 1.25 1.00 Unused long-term facilities 0.75 ~ $0.9 B 0.50 0.25 Cash ~ $0.3 B 0.00 Mar '09 Jun '09 2009 2010 2011 2012** 2013 after 2013 (*) Local facilities for daily opera

  15. Slide 15: Forecast of 2009 Light Vehicle Production - Global

    Forecast of 2009 Light Vehicle Production - Global Millions 20.0 Forecast Total 19.0 @ 04-08 74.5 M 18.0 @ 07-08 72.9 M 17.0 @ 10-08 68.3 M 16.0 @ 12-08 61.2 M 15.0 @ 01-09 57.5 M 14.0 @ 02-09 54.8 M 13.0 @ 03-09 52.9 M 12.0 @ 04-09 52.1 M 11.0 @ 07-09 53.5 M 10.0 Actual 2008 65.9 M Q1 Q2 Q3 Q4 Sour

  16. Slide 16: Light Vehicle Production - 3rd Quarter

    Light Vehicle Production - 3rd Quarter Units in millions 2009 2008 Chg North America 2.2 3.0 (27%) - Domestic (*) 1.2 1.7 (31%) - New Domestic 1.0 1.3 (21%) ~ (16%) Europe 4.4 4.9 (10%) - WEU 3.1 3.3 (6%) - EEU 1.3 1.6 (18%) Japan 1.9 2.7 (28%) Total Triad 8.5 10.6 (19%) Rest of World 5.1 5.2 (3%) T

  17. Slide 17: Light Vehicle Production - Full Year Comparison

    Light Vehicle Production - Full Year Comparison Units in Millions 2007 2008 2009 Chg. vs.’08 North America 15.1 12.6 8.0 (37%) - Domestic (*) 9.5 7.5 4.4 (42%) - New Domestic 5.6 5.1 3.6 (28%) ~ (27%) Europe 22.1 20.9 17.0 (19%) - WEU 16.1 14.6 12.0 (18%) - EEU 6.0 6.3 5.0 (20%) Japan 10.8 10.7 7.3

  18. Slide 18: Financial Outlook

    Financial Outlook * Sales Q3 2009 FY2009 Organic (15 - 20%) 3-5% better than the LVP in NAFTA & WEU Fx ~ (5%) ~ (5%) Consolidated ~ (20 - 25%) EBIT Margin range 1 to 3% > 1% (*) Excludes Restructuring Action Program costs and potential customer defaults, % of sales & MUS$ unless specified, FX based

  19. Slide 19: Thank you!

    Thank you! Autoliv Every year, Autoliv’s products save over 20,000 lives The Worldwide leader in Automotive Safety Systems Driven for life ALV Q2 Earnings Teleconference July 21, 2009 - 19 Copyright Autoliv Inc., All Rights Reserved

Autoliv — Q2 2009 Earnings Presentation on 6ix