Autoliv, Inc. · NYSE:ALV

Autoliv — Q3 2015 Earnings Presentation

16 slides from Autoliv's earnings presentation, Oct 23, 2015

  1. Slide 1: 3rd Quarter Financial Results

    Earnings Conference call Webcast 3rd Quarter Financial Results October 23, 2015 Saving More Lives Copyright Autoliv Inc., All Rights Reserved

  2. 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

  3. Slide 3: Q3'15 Highlights

    Q3’15 Highlights Sales growth and margins better than expected  Financial Performance • Organic sales* growth 8.4%, vs. a flat LVP** • Operating margin* 9.4%, 90 bps better year-over-year • EPS* $1.53, ~22% better year-over-year • Operating cash flow $191M • RoCE* ~22%, RoE* ~16%  Shareholder Retu

  4. Slide 4: Active Safety Update

    Active Safety Update Expanding our portfolio and capabilities  Further expanding our capabilities • Closed MACOM automotive solution acquisition, Electronic Horizon ECU is market ready • IP* License agreement and joined DriveMe autonomous driving program with VCC • Supporting two global OEMs on aut

  5. Slide 5: Strong Performing Models

    Strong Performing Models Contributing to solid organic sales* growth in Q3’15 Mercedes GLE Hyundai Tucson Mercedes CLA/GLA Ford F-Series KIA Sorento Baojun 560 BMW Active/Gran Tourer Baojun 730 Nissan Murano Q3’15 Active Safety organic sales* growth 36% (*) Non-US GAAP measure. ALV Q3’15 Earnings Re

  6. Slide 6: Strong Volume Growth

    Strong Volume Growth Unit growth exceeds LVP* in essentially all product areas Autoliv Quantities Delivered Q3’15 vs. PY (Millions unless specified) Seatbelts 33.2 0% • Pretensioners (of which) 15.0 6% • Active Seatbelts (of which) 0.8 13% Frontal Airbags 11.2 5% • Knee Airbags (of which) 1.4 7% Sid

  7. Slide 7: China Market Uncertainty Continues

    China Market Uncertainty Continues Light vehicle growth is slowing  Market driven • FY’15 LVP* growth rate is slowing, >5pp lower than expected in January • Inventory** situation improving over last 3 months, still above critical levels • Government incentives on ≤1.6L vehicles and lower interest r

  8. Slide 8: Market Conditions

    Market Conditions Uncertainty with the macro environment continues  Asia FY’15 LVP * @ October 16, 2015 Region Vehicles (Mil’s) YoY Chg. • Slowing growth in China, with improving inventories**, China 22.0 +2% LVP roughly flat for Q4’15 Japan 8.4 (6)% • Japan LVP is expected to decline ~3% for Q4’15

  9. Slide 9: Q3 Financial Overview

    Q3 Financial Overview Solid financial performance (US$ Million’s unless specified) 2015 2014 Sales $2,185 $2,208 Gross Profit $440 20.1% $426 19.3% Operating Income* $205 9.4% $187 8.5% EPS* (assuming dilution) $1.53 $1.25 RoCE* 22% 21% RoE* 16% 12% Operating Cash flow $191 $212 Dividend** $0.56 $0.

  10. Slide 10: Operating Income and Margin Bridge

    Operating Income and Margin* Bridge Q3’15 vs. Guidance and Prior Year Q3’15 vs. Guidance (40 bps better) Q3’15 vs. Prior Year (90 bps better) Operating Margin* 9.4% (*) Non-US GAAP measure, excludes costs for capacity alignments and antitrust related matters. ALV Q3’15 Earnings Release Presentation

  11. Slide 11: Cash Flow

    Cash Flow Investments for growth and shareholder returns (US$ Million’s unless specified) Q3 Q3 LTM FY FY FY FY 2015 2014 2014 2013 2012 2011 Net Income 99 107 420 469 490 486 627 Depreciation & Amortization 80 77 307 305 286 273 268 Other, net 2 21 8 42 43 10 38 Change in operating WC * 10 7 (76) (

  12. Slide 12: Segment Reporting

    Segment Reporting Q3 Organic Operating Margin CapEx D&A Growth * 2015 2014 2015 2014 2015 2014 Passive Safety *** 6.6% 8.1% 7.8% 4.7% 5.2% 3.7% 3.5% Airbags 9.7% Seatbelts 1.1% Electronics *** 17.2% 2.9% 4.1% 3.1% 5.5% 3.0% 3.2% Passive Safety Electronics 8.2% Active Safety 36.0% Autoliv Group * 8.4

  13. Slide 13: Looking Ahead: Q4'15 Guidance

    Looking Ahead Q4’15 Guidance  Sales • YoY organic sales* increase ~9% - Mainly related to strong growth in Europe, North America, Active Safety and the inflator replacement business • Sequential consolidated sales increase ~12% - Mainly due to the seasonality and acquisition effects, China launches

  14. Slide 14: Looking Ahead: FY'15 Guidance

    Looking Ahead FY’15 Guidance  Sales • YoY organic sales* increase ~7% - Mainly related to strong growth in Europe, North America, Active Safety and the inflator replacement business • YoY currency translation effect ~(9)% - Primarily due to the strengthening US$  Operating Margin* ~9.5% • YoY - Po

  15. Slide 15: Financial Outlook

    Financial Outlook Q4’15 FY’15 Sales Organic* ~9% ~7% Acquisitions / (Divestitures) ~1% >0% Fx** >(6)% ~(9)% Consolidated Sales, net >3% ~(2)% Operating Margin* ~10.5% ~9.5% Exchange rates** Q4 2015 FY 2015 EUR / US$ 1.1301 1.1178 US$ / JPY 119.67 120.63 US$ / KRW 1159 1132 US$ / MXN 16.68 15.81 US$

  16. Slide 16: Every year, Autoliv's products save over 30,000 lives

    Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries ALV Q3’15 Earnings Release Presentation - 16 Copyright Autoliv Inc., All Rights Reserved

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