Autoliv, Inc. · NYSE:ALV
Autoliv — J.P. Morgan Auto Conference 2018
28 slides from Autoliv's conference presentation, Aug 9, 2018
Slide 1: Autoliv – J.P. Morgan Auto Conference 2018
1st Autoliv J.P. Morgan Auto Conference 2018 New York (383 Madison Avenue), August 9, 2018 Copyright Autoliv Inc., All Rights Reserved Copyright Autoliv Inc., All Rights Reserved
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: Our Vision Is Saving More Lives & Creating More Value
Our Vision Is Saving More Lives & Creating More Value Each Year, Autoliv’s Products Save >30,000 Lives 3 Copyright Autoliv Inc., All Rights Reserved
Slide 4: Our Vision Is Saving More Lives & Creating More Value
Our Vision Is Saving More Lives & Creating More Value Each Year, Autoliv’s Products Save >30,000 Lives 4 Copyright Autoliv Inc., All Rights Reserved
Slide 5: Autoliv – 65 years of Dedication to Saving Lives
Autoliv – 65 years of Dedication to Saving Lives Entering the next phase Autoliv Lindblads becomes a Period of First Night Vision ̶ Autoservice Acquired by subsidiary of acquisitions and First Knee First Inflatable the start of Active AB is founded First subsidiary Gränges Weda Electrolux joint vent
Slide 6: Millions of Reasons to Do More
Millions of Reasons to Do More Road Fatalities Worldwide Number of Traffic Fatalities, Globally(1) 1.3 million 2017E 2030E (1) WHO February, 2018 6 Copyright Autoliv Inc., All Rights Reserved
Slide 7: Creating the New Autoliv
Creating the New Autoliv Our Strategic Direction More Focused Increased Operational Higher Potential for Dedicated Culture Strategy Flexibility Profitable Growth 7 Copyright Autoliv Inc., All Rights Reserved
Slide 8: Autoliv Today is Stronger Than Ever
Autoliv Today is Stronger Than Ever MARKET SHARE ORDER INTAKE SALES ADJ. OPERATING INCOME(1) 38% >50% $8.1 Bn $890 Mn worldwide, clear #1 of global orders 2017A 2017A (10.9% margin) OPERATIONS IN DAILY PRODUCTION EMPLOYEES FREE CASH FLOW(2) 27 ~1 Mn >64,000 $403 Mn countries units worldwide 2017A (7
Slide 9: Autoliv – The Global Automotive Safety Champion
Autoliv – The Global Automotive Safety Champion Only Three Players of Scale Firm Leader at 38% Market Share – Far Exceeding Competitors(1) #1 Rankings Across Product Portfolio(1) 2017A, % 2017A Autoliv 38% Frontal Airbags Side Airbags (2) Comp. 1 + 3 30% Comp. 1 48% Comp. 2 Comp. 3 Comp. 4 Comp. 5 S
Slide 10: Well-Balanced Customer Base
Well-Balanced Customer Base Significant Presence in High-Growth Markets Serving All Major OEMs… …Across All Key Automotive Regions % of 2017A Revenue(1) % of 2017A Revenue(1) 15% 5% 10% 4% Rest of Europe Asia Asia 33% 9% 4% 37% Japan 10% 10% 9% 2% China 7% 2% 17% 7% 2% 7% 2% 6% Others 9% Americas 30
Slide 11: Autoliv Key Targets
Autoliv Key Targets >$10 Bn Revenue ~13% Adj. Operating Margin* ~1.0x Net Debt/ EBITDA 2020 2020 Over Time (*) Non-US GAAP measure excludes costs related to Antitrust matters, Leverage Ratio and Net Debt includes Pension Liability. The forward looking non-U.S. GAAP financial measures herein are prov
Slide 12: Our Road to Success
Our road to Success We are fully We operate in a focused on market with long- delivering on our term sustainable Operational 2020 targets growth excellence is in our DNA, and it is what will take us to the next level We have the tools to maintain our new market position 12 Copyright Autoliv Inc., Al
Slide 13: Unprecedented Business Momentum Translating Into Growth
Unprecedented Business Momentum Translating Into Growth Order Intake Tailwind Driving Sales Growth: ~8% Revenue CAGR 2017A to 2020 Strong Order Momentum… …Translating Into Significant Revenue Growth(1) Order Intake Share; 2014A-17A Revenue; 2017A-20 18-36 months lead time to start of production >50%
Slide 14: Long-Term Customer Focus, Local Presence & Quality Pays Off
Long-Term Customer Focus, Local Presence & Quality Pays Off Strong & Improving Positions With Key OEMs, Including Ambitious Chinese OEMs Market Share by Brand Origin % Chinese S. Korean European Japanese American Global 2017A 2020E 14 Copyright Autoliv Inc., All Rights Reserved
Slide 15: Content per Vehicle Growth Propelled by Emerging Markets
Content per Vehicle Growth Propelled by Emerging Markets Passive Safety Penetration Correlates to GDP/ Capita Autoliv’s Total Addressable Market(1) Gap to Developed Markets Expected to Close as Emerging Markets Mature… $ Bn Passive Safety Content per Vehicle(1) vs. Economic Development 400 28 ~26 No
Slide 16: Global Drive for Increased Safety Standards
Global Drive for Increased Safety Standards Stricter Regulations & Increasingly Stringent Rating Frameworks A Far-Side Airbag Required in Europe Europe A USA China Ratings Japan India South Korea Latin America Protection for both occupants 2019 2020 Roadmap for Vehicle Crash Safety Requirements 2025
Slide 17: Finding New Ways to Save More Lives
Finding New Ways to Save More Lives Numerous Potential Additional Growth Avenues to Explore, With High Prospective Returns Expansion Into Adjacent Verticals Expansion Into Other End Markets Current Products, New Markets New Products, New Markets Selected Examples: Selected Examples: ▪ Commercial veh
Slide 18: Future Mobility Provides New Opportunities
Future Mobility Provides New Opportunities More Advanced Passive Safety Solutions in Future Car New Seating Concept Examples 18 Copyright Autoliv Inc., All Rights Reserved
Slide 19: 2nd Quarter 2018 Financial Results
1st 2nd Quarter 2018 Financial Results Copyright Autoliv Inc., All Rights Reserved Copyright Autoliv Inc., All Rights Reserved
Slide 20: Q2'18 Highlights
Q2´18 Highlights ▪ Successful completion of the spin-off of Veoneer on June 29, 2018 − ~$1 billion capital injection into Veoneer while keeping long-term credit rating unchanged A- (with stable outlook) ▪ The management team is giving its full focus on 2020 target delivery. The full year growth and
Slide 21: Q2'18 Sales Growth
Q2´18 Sales Growth Sales Bridge Regional Organic Growth** $ million +11.5% Org. growth +7.3% EUROPE 0.3% JAPAN LVP* 4% 3.5% LVP* 1% AMERICAS CHINA 12.8% LVP* 0% 18.0% LVP* 9% REST OF ASIA 1.4% LVP* 5% (*) Light Vehicle Production (LVP) according to IHS @ July 16, 2018, (**) Non-US GAAP measure. 21 C
Slide 22: 2018 - Key Models
2018 - Key Models Contributing to the ramp-up of organic sales* growth Honda Accord Tesla Model 3 Infinity QX50 Nissan Altima Volkswagen Jetta Honda Odyssey VW Polo Jeep Compass Ram Truck Honda CR-V Nissan Qashqai / Rogue Hyundai Genesis G70 Jeep Wrangler These models are anticipated to contribute ~
Slide 23: Number of Launches
Product Launches per Quarter Q2’18 increased >70% YoY +25% 250 ~740 200 ~600 ~600 Number of Launches 150 100 50 0 2016 2017 2018 2019 23 Copyright Autoliv Inc., All Rights Reserved
Slide 24: Q2'18 Financial Overview
Q2´18 Financial Overview (US $ Millions unless specified) 2018 2017 Sales $2,212 $1,984 Gross Profit $440 19.9% $415 20.9% Operating Income* $230 10.4% $216 10.9% EPS* (assuming dilution) $2.22 $1.50 RoCE* 21% n/a RoE* 25% n/a Operating cash flow** $47 $179 Dividend per share $0.62 $0.60 GLVP** (ann
Slide 25: Operating Margin Bridge Q2'18 vs. Prior Year
Operating Margin* Bridge Q2’18 vs. Prior Year (0.5%) Adj. EBIT +6.4% Adjusted Operating Margin of 10.4% includes ~70 bps increase in Raw material and Currency impact (*) Non-US GAAP measures exclude costs for capacity alignments and antitrust related matters. 25 Copyright Autoliv Inc., All Rights Re
Slide 26: Strong Balance Sheet and Prudent Financial Policy
Strong Balance Sheet and Prudent Financial Policy Committed to Maintain “Strong Investment Grade” Rating Supported by High FCF Conversion Net Debt/ EBITDA(1) x ✓ Provided $1B of cash liquidity for Veoneer at time of spin-off 2,0 ‒ Mix of new debt and existing cash 1.6 ✓ S&P confirmed long-term credi
Slide 27: Financial Outlook from July 27, 2018
Financial Outlook from July 27, 2018 Consolidated sales, net and operating margin* FY’18 Sales Organic* ~8% Fx** ~2% Consolidated Sales, net ~10% Operating Margin* >11% Exchange rates** FY’18 EUR / US$ 1,1915 US$ / JPY 110,31 US$ / KRW 1100 US$ / MXN 19,03 US$ / CNY 6,52 (*) Non-US GAAP measures exc
Slide 28: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com