Autoliv, Inc. · NYSE:ALV

Autoliv — Q1 2017 Earnings Presentation

16 slides from Autoliv's earnings presentation, Apr 28, 2017

  1. Slide 1: 1st Quarter 2017 Financial Results Earnings Conference Call and Webcast

    1st Earnings Conference Call and Webcast 1st Quarter 2017 Financial Results April 28, 2017 1 April 28, 2017 ALV – Q1-2017 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved 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: Q1'17 Highlights

    Q1’17 Highlights Solid performance while strengthening our underlying market position  Financial Performance − Organic Sales* growth 4.4%, 1.5pp lower than the LVP** − Operating Margin* 8.4%, 40bps better than expected − EPS* $1.65 and Operating cash flow $149M  Capital Structure − $51M returned t

  4. Slide 4: Zenuity

    Zenuity Commenced operations April 18, 2017 Joint Venture with VCC* Autoliv  HO* in Gothenburg  Equalization payment for 50/50 JV − Satellite facilities in Detroit and Munich − Cash contribution $110M during Q2’17  Software only focused on Level 1-5 algorithms  Financial Impact − Background IP*

  5. Slide 5: Q1'17 Business Outlook

    Q1’17 Business Outlook Strong order intake continues  Strong order intake from 2015-16 continues into 2017 − New programs awarded in 2015 start to launch in 2017 − ~1,000 additional engineers hired through Q1’17 ahead of schedule − RD&E % of sales for PAS* reaching peak levels in Q3’17 − Maintain f

  6. Slide 6: Q1'17 Product Volumes

    Q1’17 Product Volumes Strong volume growth in high value-added Seatbelts Autoliv Quantities Delivered Q1’17 CY* vs. PY* (%) (Millions unless specified) Seatbelts 38.9 2  Pre-tensioners (of which) 18.8 8  Active Seatbelts (of which) 1.2 16 Frontal Airbags 13.4 5  Knee Airbags (of which) 1.5 9 Side

  7. Slide 7: Key Launches during 2017

    Key Launches during 2017 Passive Safety and Electronics Honda Accord Tesla Model 3 VW Polo / Gol Honda Odyssey Volvo XC60 E-Class Coupe/Cab. Jeep Compass Nissan Micra S-Class Combined these models represent around 6% of Autoliv annual Sales 7 April 28, 2017 ALV – Q1-2017 Earnings Call and Webcast Co

  8. Slide 8: Overall Market Conditions

    Overall Market Conditions Increased uncertainty in the macro environment due to renewed auto-cycle concerns  Asia FY 2017 LVP* − China LVP* remains erratic while inventories** increased during Q1’17 Region Vehicles (Millions) YoY Chg. − Q2’17 LVP is expected to increase YoY* in China ~3%, Japan ~10

  9. Slide 9: Q1 Financial Overview

    Q1 Financial Overview Record sales and gross profit for a 1st quarter (US $ Millions unless specified) 2017 2016 Sales $2,608 $2,430 Gross Profit $543 20.8% $501 20.6% Operating Income* $220 8.4% $222 9.1% EPS* (assuming dilution) $1.65 $1.66 RoCE* 20% 23% RoE* 14% 16% Operating cash flow $149 $201

  10. Slide 10: Operating Income and Margin Bridge Q1'17 vs. Guidance and Prior Year

    Operating Income* and Margin* Bridge Q1’17 vs. Guidance and Prior Year Q1’17 vs. Guidance (40 bps higher) Q1’17 vs. Prior Year (70 bps lower) 8.4% 9.1% 8.0% 8.4% $222 $220 MUS$ MUS$ Operating Margin* 8.4% includes ~80 bps increase in RD&E, net and ~50 bps of negative acquisition effects vs. Prior Ye

  11. Slide 11: Cash Flow

    Cash Flow Investments for growth and shareholder returns (US $ Millions unless specified) Q1’17 Q1’16 LTM** 2016 2015 2014 2013 2012 Net Income 142 134 570 562 458 469 490 486 Depreciation & Amortization 115 85 413 383 319 305 286 273 Other, net (26) 3 (28) 1 0 42 43 10 Change in operating WC * (82)

  12. Slide 12: Q1 Segment Reporting

    Q1 Segment Reporting Electronics Segment Sales growth ~28% including acquisitions Organic Sales* Sales (US$ Millions) Operating Margin (%) CapEx (%) D&A (%) Headcount Growth (%) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Passive Safety *** 4.7 2,040 1,989 10.0 9.6 5.0 3.7 3.6 3.4 63,262 60,15

  13. Slide 13: Looking Ahead Q2'17 Guidance

    Looking Ahead Q2’17 Guidance  Sales − Organic Sales* growth ~2% YoY** − Mainly related to strong growth in China, Japan, India and South America − Sequential consolidated sales decrease of ~2% − Better than the expected sequential LVP** decline of ~5%  Operating Margin* ~8.5% − YoY − Positive effe

  14. Slide 14: Looking Ahead FY'17 Indication

    Looking Ahead FY’17 Indication  Sales − Organic Sales* growth ~4% YoY** − Mainly related to strong growth in Europe, China, Japan, India, South America and Active Safety partially offset by lower inflator replacement sales − Acquisition effect ~1% YoY − Currency translation effect ~(2)% YoY − Prima

  15. Slide 15: Financial Outlook

    Financial Outlook 2017 Q2’17 FY’17 Sales Organic* ~2% ~4% Acquisitions - ~1% Exchange rates** Q2’17 FY’17 EUR / US$ 1.0653 1.0652 Fx** ~(3)% ~(2)% US$ / JPY 109.08 110.29 Consolidated Sales, net ~(1)% ~3% US$ / KRW 1129 1134 US$ / MXN 18.59 18.98 Operating Margin* ~8.5% ~8.5% US$ / CNY 6.88 6.89 Str

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

    Each year, Autoliv’s products save over 30,000 lives autoliv.com

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