Autoliv, Inc. · NYSE:ALV
Autoliv — Q4 2021 Earnings Presentation
24 slides from Autoliv's earnings presentation, Jan 28, 2022
Slide 1: Earnings Call Presentation 4th Quarter & Full year 2021
Autoliv Earnings Call Presentation 4th Quarter & Full year 2021 1 January 28, 2022 ALV – Q4-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
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
Slide 3: Q4'21 Solid operating margin and strong cash flow
Q4´21 Solid operating margin and strong cash flow ▪ Market developments • Despite some improvements, resource bottlenecks in global supply chains limits industry volumes • High safety content per vehicle markets performing worse than lower safety content per vehicle markets • LVP volatility has impr
Slide 4: Q4'21 Financial Overview: Massive drop in LVP limited our operating efficiency
Q4´21 Financial Overview Massive drop in LVP limited our operating efficiency Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) -16% -$134 -$152 $2,517 $311 $469 $2,119 $317 12.4% Adj. $177 Op. Margin* 8.3% Adj. Op. Margin* Q4´20 Q4´21 Q4´
Slide 5: FY'21 Strong order intake share
FY´21 Strong order intake share Order Intake Lifetime Sales* and Share ▪ Win-rate higher than today’s market share level ▪ High win rates with all products types, including front ~50% center airbags and hood lifters for pedestrian protection ~50% ~50% >50% ▪ Wins with all leading OEMs including many
Slide 6: Q4'21 Sales Growth: Temporary underperforming global LVP
Q4’21 Sales Growth Temporary underperforming global LVP with 3pp Organic Growth* vs. LVP** (percentage points) EUROPE ALV vs. LVP JAPAN ALV vs. LVP 2 1 AMERICAS ALV vs. LVP CHINA -4 ALV vs. LVP -3 REST OF ASIA ALV vs. LVP 4 (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) according to IHS
Slide 7: Q4'21 - Key Model Launches
Q4’21 - Key Model Launches Lynk&Co 09 Strengthening our EV & PHEV exposure Honda BR-V Rivian RPV Nissan Ariya Range Rover Dacia Jogger Volvo C40 Recharge Infinity QX60 Toyota Tundra 7 January 28, 2022 ALV – Q4-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 8: Q4'21 Financial Overview
Q4´21 Financial Overview (US$ Millions unless specified) Q4’21 Q4’20 Sales $2,119 $2,517 Gross Profit $368 17.4% $502 19.9% Adj. Operating Income1 $177 8.3% $311 12.4% EPS (assuming dilution) $1.31 $2.15 Adj. RoCE1,2 19% 33% Adj. RoE1,2 18% 33% Operating cash flow $317 $469 Dividend paid per share $
Slide 9: Q4'21 Adj. Operating Income Bridge vs. Prior Year
Q4´21 Adj. Operating Income* Bridge vs. Prior Year -$134M $ (millions) +55M ~28% leverage (excl. cost for recalls, FX, raw mtrl $311M and gov. support) on the organic sales change, impact from call-off volatility and cost inflation related -60M -15M -3M -3M to logistics and utilities etc. $177M -109
Slide 10: 2021 Sales Growth: Outperforming global LVP
2021 Sales Growth Outperforming global LVP by more than 5 percentage points Organic Growth* vs. LVP** (percentage points) EUROPE ALV vs. LVP JAPAN ALV vs. LVP 12 7 AMERICAS ALV vs. LVP CHINA 5 ALV vs. LVP REST OF ASIA 3 ALV vs. LVP 2 (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) accord
Slide 11: 2021 Financial Overview
2021 Financial Overview (US$ Millions unless specified) 2021 2020 Sales $8,230 $7,447 Gross Profit $1,511 18.4% $1,247 16.7% Adj. Operating Income1 $683 8.3% $482 6.5% EPS (assuming dilution) $4.96 $2.14 0 Adj. RoCE1,2 19% 13% Adj. RoE1,2 17% 13% Operating cash flow1 $754 $849 Dividend paid per shar
Slide 12: Cash Flow
Cash Flow Capex and D&A (US$ Millions unless specified) Q4’21 Q4’20 2021 2020 Net Income $115 $189 $437 $188 Depreciation & Amortization 97 103 394 371 Cash Flow Other, net Change in operating WC -12 116 64 113 -15 -63 13 277 Operating cash flow 317 469 754 849 Capital Expenditures, net -153 -111 -4
Slide 13: Debt Leverage Ratio: In line with long-term target
Debt Leverage Ratio* In line with long-term target Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ (Millions) $2,000 3.0 2.5 $1,500 2.0 $1,000 1.5 1.2x 0.5-1.5x Long-Term Target: 1.0x Long-Term 1.0 Range $500 0.5 Net Debt EBITDA 0.0 Q4´18 Q4´19 Q4´20 Q4´21 ▪ Our Net Debt* decreased by
Slide 14: Headwinds from Raw Materials
Headwinds from Raw Materials IHS Markit: Hot-rolled sheet steel ▪ Raw material prices continued to increase ▪ New headwinds including magnesium and nylon US China ▪ We expect a full year 2022 operating margin headwind from raw materials of around 300 basis points ▪ ~5pp y-o-y impact in the first hal
Slide 15: Continued strict cost control
Continued strict cost control Headcount development ▪ Margin Focus • General hiring freeze 70,000 ✓ Reduced headcount by over 8000 since the end of 2020 • Accelerate cost saving and footprint initiatives 68,000 ✓ Capacity alignment and footprint optimization activities ongoing in America, Europe, Ja
Slide 16: Light Vehicle Production Outlook
Light Vehicle Production Outlook Light Vehicle Sales LTM (Million units) For the coming quarters, global LVP expected to remain on a similar level as in Q4´21 North American. Continued strong demand for new vehicles. However, the industry continues to struggle to meet consumer demand due to the shor
Slide 17: FY'22 - Key Models
FY’22 - Key Models Contributing to the ramp-up of sales growth Peugeot 308 Japanese Crossover Toyota Yaris Cross U.S. Crossover Toyota Corolla Cross Mercedes EU Car Nissan Ariya Lynk&Co 09 Toyota Tundra Chevrolet Silverado Nissan Versa 17 January 28, 2022 ALV – Q4-2021 Earnings Call and Webcast Copy
Slide 18: 2022 Adj. Operating Margin Income Bridge
2022 Adj. Operating Margin Income* Bridge FY2021 vs. FY2022 indication >1pp Autoliv mitigations: ~9.5% Raw material recoveries, strategic initiatives and other cost reduction activities 8.3% Partly offset by cost inflation (wages, logistics, energy..) (*) Non-US GAAP measures. Adjusted Operating mar
Slide 19: Full year 2022 Indications
Full year 2022 Indications Full year indication LVP growth Around 9% Exchange rates3 FY’22 Organic sales increase1 Around 20% EUR / US$ 1.1362 US$ / JPY 114.40 FX Around -3% US$ / KRW 1188.76 US$ / MXN 20.49 Adjusted Operating margin1 Around 9.5% US$ / CNY 6.3435 Tax rate2 Around 30% Operating Cash
Slide 20: Our 2022 business agenda
Our 2022 business agenda ▪ Health and Safety continue to be top priority ▪ Executing our strategic initiatives, footprint and order book ▪ Working capital optimization ▪ Mitigate headwinds from raw materials and cost inflation ▪ Extend into new product areas beyond light vehicles ▪ Increase resource
Slide 21: January 28, 2022 ALV – Q4-2021 Earnings Call and Webcast
21 January 28, 2022 ALV – Q4-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 22: Q4'21 Product Volumes
Q4´21 Product Volumes Autoliv Quantities Delivered Q4´21 vs. PY** (%) (Millions unless specified) Seatbelts 32.0 (21)% ▪ Pretensioners (of which) 20.3 (17)% ▪ Active Seatbelts (of which) 1.1 (39)% Frontal Airbags 13.8 (16)% ▪ Knee Airbags (of which) 1.8 (0)% Side Airbags 24.2 (15)% ▪ Chest (Thorax)
Slide 23: 2021 Product Volumes
2021 Product Volumes Autoliv Quantities Delivered 2021 vs. PY** (%) (Millions unless specified) Seatbelts 126.7 1% ▪ Pretensioners (of which) 76.9 3% ▪ Active Seatbelts (of which) 5.4 0% Frontal Airbags 52.4 8% ▪ Knee Airbags (of which) 6.2 22% Side Airbags 91.9 6% ▪ Chest (Thorax) 49.0 3% ▪ Head (C
Slide 24: Definition of Symbols
Definition of Symbols ▪ Driver and/or Passenger Airbags ▪ Pedestrian Airbag ▪ Seatbelts ▪ Steering Wheel ▪ Side Airbags ▪ Front Center Airbag ▪ Head/Inflatable Curtain Airbags ▪ Bag-in-Belt ▪ Knee Airbag ▪ EV / PHEV ▪ Pyrotechnical Safety Switch 24 January 28, 2022 ALV – Q4-2021 Earnings Call and We