Autoliv, Inc. · NYSE:ALV
Autoliv — CS Paris Autos Conference 2012
31 slides from Autoliv's conference presentation, Sep 27, 2012
Slide 1: Autoliv – The Global Leader in Automotive Safety
Autoliv – The Global Leader in Automotive Safety CS Paris Autos Conference Jan Carlson President & CEO Paris, September 27, 2012 Driven for Life © Autoliv Inc., All Rights Reserved
Slide 2: Autoliv Production Volumes 2011
Autoliv Production Volumes 2011 Million Units Global car production Frontal Head With pret. Side ALV- CS Autos Conference 27 September 2012- 2
Slide 3: All Airbags Deployed – Nobody Injured
All Airbags Deployed – Nobody Injured ALV- CS Autos Conference 27 September 2012- 3
Slide 4: Every year our products save over 25,000 lives
Today Every year our products save over 25,000 lives …and prevent ten times as many severe injuries ALV- CS Autos Conference 27 September 2012- 4
Slide 5: Q2 Highlights
Q2 Highlights Sales & margin slightly better than expected Light vehicle production continues to be weak in Europe Progress on capacity alignment program Strong cash flow and return on investment Record dividend payment ALV- CS Autos Conference 27 September 2012- 5
Slide 6: Q2 Financial Overview
Q2 Financial Overview - Record Q2 Sales and DPS (US $ Mil’s unless specified) 2012 2011 Sales $2,089 $2,061 Gross Profit $422 20.2% $422 20.5% EBIT * $196 9.4% $208 10.1% EPS * (assuming dilution) $1.39 $1.56 RoCE * 23% 25% RoE * 15% 19% Operating Cash flow $219 $132 DPS ** $0.47 $0.43 GLVP *** (ann
Slide 7: Light Vehicle Production – 2nd Quarter
Light Vehicle Production - 2nd Quarter 2012 2011 2012 vs. 2011 ALV Q2’12 Vehicles in millions @ Jul 17 @ Apr 18 Org. Growth Americas 5.0 4.2 18% 16% 19% - North America 4.0 3.1 27% 21% - South America 1.0 1.1 (9%) 4% Europe 4.9 5.3 (7%) (9%) (8%) - WEU 3.2 3.6 (10%) (10%) - EEU 1.7 1.7 (1%) (8%) Jap
Slide 8: YoY Change in Organic Sales and LVP
YoY Change in Organic Sales and LVP* Change in ALV organic sales Change in GLOBAL LVP* 60 40 % 20 0 Q4 Q2 Q4 Q2 Q4 Q2 H2'12F 2009 2010 2010 2011 2011 2012 Tsunami Out-performance bounce back (*) Light Vehicle Production ALV- CS Autos Conference 27 September 2012- 8
Slide 9: Cash Flow
Cash Flow - High CapEx and RD&E Spend to Support Growth (US $ Mil’s unless specified) Q2 Q2 LTM FY FY FY 2012 2011 ** 2011 2010 2009 Net Income 126 146 526 627 596 13 Depreciation & Amortization 69 66 273 268 282 314 Other non-cash items 19 14 46 38 58 (42) Change in operating WC 5 (94) (43) (175) (
Slide 10: Dividend Trend
Dividend Trend - Per Share and Cash Payments $ / share M US$ Dividend per share Dividend Payments 1997 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 Dividend run rate of $2.00 per share represents an annualized payment of ~ $191M ALV- CS Autos Conference 27 September 2012- 10
Slide 11: Commodity Price Trends
Commodity Price Trends - Increasing raw material costs Steel Index Y-o-Y Chg. Q1 Q2 Q3F Q4F FY12F Steel 6 2 (1) (3) 4 Non-Ferrous 0 (1) (1) (1) (3) Plastic & Yarn 9 2 0 (1) 10 Other 0 (1) 0 1 0 Total (MUSD) 15 2 (2) (4) 11 YoY commodity increase expected to be ~ $11M for FY2012 ALV- CS Autos Confere
Slide 12: New Technology Launches
New Technology Launches - During the 2nd Quarter Volvo V40 Mercedes A-Class Pedestrain Airbag Radar for Preventive Safety ALV- CS Autos Conference 27 September 2012- 12
Slide 13: Pedestrian Protection Airbag
Pedestrian Protection Airbag ALV- CS Autos Conference 27 September 2012- 13
Slide 14: Automotive radar
Automotive radar ALV- CS Autos Conference 27 September 2012- 14
Slide 15: Light Vehicle Production FY12
Light Vehicle Production - FY12 Units in millions Q1 Q2 Q3 Q4 2012 Chg ’12 vs ’11 Americas 4.9 5.0 4.6 4.8 19.3 11% North America 4.0 4.0 3.4 3.6 14.9 14% • D3 2.1 2.2 1.9 2.1 8.3 7% • Transplants 1.8 1.8 1.5 1.5 6.6 23% South America 0.9 1.0 1.2 1.2 4.4 2% Europe 5.2 4.9 4.2 4.6 18.9 (6%) WEU
Slide 16: Light Vehicle Production IHS – 3rd Quarter
Light Vehicle Production IHS - 3rd Quarter 2012 2011 2012 vs. 2011 Vehicles in millions @ Jul 17 @ Sept 18 Americas 4.6 4.3 8% 11% - North America 3.4 3.2 8% 12% - South America 1.2 1.1 7% 7% Europe 4.1 4.5 (8%) (8%) - WEU 2.7 3.0 (10%) (10%) - EEU 1.5 1.5 (3%) (4%) Japan 2.3 2.2 8% 5% China 4.2 3.8
Slide 17: Light Vehicle Production IHS – 2nd Half
Light Vehicle Production IHS - 2nd Half 2012 2011 2012 vs. 2011 Vehicles in millions @ Jul 17 @ Sept 18 Americas 9.4 8.8 8% 9% - North America 7.0 6.7 6% 8% - South America 2.4 2.1 13% 12% Europe 8.7 9.5 (7%) (8%) - WEU 5.7 6.4 (9%) (10%) - EEU 3.0 3.1 (3%) (4%) Japan 4.4 4.6 (4%) (3%) China 8.8 8.3
Slide 18: Major Autoliv launches – Paris auto-show 2012
Major Autoliv launches - Paris auto-show 2012 Toyota Verso Rang Rover Kia Carens Jaguar F-tyep ALV- CS Autos Conference 27 September 2012- 18
Slide 19: Major Launches 2012 – Active Safety Products
Major Launches 2012 - Active Safety Products Honda Legend Mercedes A-Class Cadillac ATS BMW 6-Series Cadillac XTS Mercedes GL-Class Dodge Dart Mercedes M-Class ALV- CS Autos Conference 27 September 2012- 19
Slide 20: Major launches 2012 – China
Major launches 2012 - China Great Wall Haval H6 Ford Focus Honda CR-V Venucia D50 Audi A6 Audi A4 BMW 3-Series Chevrolet Malibu Great Wall Haval M4 ALV- CS Autos Conference 27 September 2012- 20
Slide 21: China Passenger Vehicle Sales
China Passenger Vehicle Sales PV Sales ('000) Sales/Production (%) 2009 Total 8,381 100.01% 2010 Total 11,266 99.13% 2011 Total 12,214 99.74% YTD 2012 8,472 99.02% 1400 100,0% 1260 1200 1157 1135 1167 80,0% 1107 1124 1093 1090 1095 1069 1049 1009 985 1000 960 948 958 947 60,0% 886 887 Thousands 800
Slide 22: Investments for Growth are Paying Off – China
Investments for Growth are Paying Off - China 2013F – Market Share* % Autoliv 1,400 14 38 1,200 12 LVP ~ 19M 62 1,000 10 M illio n s U S D Sales % of total sales 800 8 600 6 400 4 2011 – Market Share* % 200 2 Autoliv 0 0 34 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F LVP ~16M 6
Slide 23: Split European Light Vehicle sales
Split European Light Vehcile sales - Southern EU ~ 40% of European registrations PIIGS total 22.5% PIIGS exposure is less than 2% of Autoliv’s sales Data source: IHS ALV- CS Autos Conference 27 September 2012- 23
Slide 24: LTM SAAR EU vs. US
LTM SAAR EU vs. US 18 16 14 EU US Millions of Light Vehicles 12 10 8 6 4 2 0 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08 May-09 Oct-09 Mar-10 Aug-10 Jan-11 Jun-11 Nov-11 Apr-12 Data source: ACEA and Ward’s Auto ALV- CS Autos Conference 27 September 2012- 24
Slide 25: US Light Vehicle Inventory
US Light Vehicle Inventory 4,5 140 4,0 120 3,5 100 Millions of Light Vehicles 3,0 80 2,5 Month-End Inventory 2,0 60 Month-End Days' Supply 1,5 40 1,0 20 0,5 0,0 0 August inventory 2.7 million vehicles, corresponding to 58 sales days ALV- CS Autos Conference 27 September 2012- 25
Slide 26: Our Response to the Uncertain Macro Situation
Our Response to the Uncertain Macro Situation - Flexibility, liquidity and market presence 50% PERSONNEL 40% 20% 25% 20% HCC from 46% to 33% of total 10% Indirect from 34% to 29% of total Temporary from 16% to 20% of total 0% 0% 0% Q2'08 Q2'09 Q2'10 Q2'11 Q2'12 Q2'08 Q2'09 Q2'10 Q2'11 Q2'12 Q2'08 Q2
Slide 27: Light Vehicle Growth
Light Vehicle Growth - Growing with the right products for the right region ~ 98M 105.0 90.0 ~ 79M ~ 75M Growth Markets 75.0 ~ 69M 58 Rest of World & 60.0 42 Eastern Europe 27 40 Developed Markets 45.0 11 8 8 9 Japan 30.0 14 16 ~42M 14 12 ~40M ~34M ~37M Western Europe 15.0 15 15 18 13 North America
Slide 28: Automotive Safety Market by Product Line
Automotive Safety Market* by Product Line - Passive Restraint and Active Safety Sensors 30 25 24 1.8 20.5 Active safety 20 0.8 5.0 US$ Billion 4.4 Electronics 15 5.6 Side airbags 4.7 10 5.4 5.8 Frontal airbags 5 5.2 5.7 Seatbelts 0 2011 2014 * Source: ALV 2011 Annual Report ALV- CS Autos Conference
Slide 29: Dynamic Spot Light
Dynamic Spot Light Autoliv’s Night Vision technology detects pedestrians and directs a ”spot-light” on them ALV- CS Autos Conference 27 September 2012- 29
Slide 30: Dynamic Light Spot
Dynamic Light Spot ALV- CS Autos Conference 27 September 2012- 30
Slide 31: Thank you!
Thank you! Autoliv - Safety Systems Active Autoliv Safety Every year, Autoliv’s products save over 25,000 lives The Worldwide Leader in Automotive Safety Systems Passive Safety ALV- CS Autos Conference 27 September 2012- 31