Autoliv, Inc. · NYSE:ALV

Autoliv — Shareholder Meeting (May 2014)

27 slides from Autoliv's shareholder meeting presentation, May 6, 2014

  1. Slide 1: 2014 Annual General Meeting

    2014 Annual General Meeting Jan Carlson – CEO and President May 6, 2014 Driven for Life. Copyright Autoliv Inc., All Rights Reserved

  2. Slide 2: Our vision and mission

     Our vision To substantially reduce traffic accidents, fatalities and injuries  Our mission To create, manufacture and sell state-of-the-art automotive safety systems ALV 2014 Annual General Meeting - 2 Copyright Autoliv Inc., All Rights Reserved

  3. Slide 3: Key Focus Areas

    Key Focus Areas Savings lives and safety around the automobile Lead thru innovation and technology Leverage global footprint and talented- skilled people Zero defects and customer focus ALV 2014 Annual General Meeting - 3 Copyright Autoliv Inc., All Rights Reserved

  4. Slide 4: Autoliv in Brief: geographic presence

    Autoliv in Brief  Sales and technology leader RoA  Sales US$8.8 billion Europe 10%  Sales to all major vehicle Japan 8% 33% manufacturers  Fortune 500 company with an China 16% 2013 A- credit rating (S&P)  ~ 80 facilities in 29 countries  18 technical centers and 33% 20 crash test tracks  ~ 5

  5. Slide 5: Autoliv in Brief: sales by product

    Autoliv in Brief  Sales and technology leader  Sales US$8.8 billion  Sales to all major vehicle Seatbelts Airbags 31% manufacturers  Fortune 500 company with an 2013 65% A- credit rating (S&P)  ~ 80 facilities in 29 countries Active 4%  18 technical centers and Safety 20 crash test tracks  ~

  6. Slide 6: Autoliv in Brief: diversified customer base

    Autoliv in Brief  Sales and technology leader Others  Sales US$8.8 billion Local Chinese OEM’s 7%  Sales to all major vehicle 2% 15% 2% 3% manufacturers 4% 5% 11%  Fortune 500 company with an 5% 2013 A- credit rating (S&P) 5% 11%  ~ 80 facilities in 29 countries 6%  18 technical centers and 7%

  7. Slide 7: Market Shares 2013: by product

    Market Shares 2013 - Global Safety Market Share by Product 37% 1 1 1 1 1 1 21 Autoliv’s share ALV 2014 Annual General Meeting - 7 Copyright Autoliv Inc., All Rights Reserved

  8. Slide 8: Market Shares 2013: passive safety

    Market Shares 2013 - Passive Safety Market 37% 1 1 1 12 1 Autoliv’s share ALV 2014 Annual General Meeting - 8 Copyright Autoliv Inc., All Rights Reserved

  9. Slide 9: Major Occupant Restraint Suppliers

    Major Occupant Restraint Suppliers - Net Sales Development 9,000 US$ (million) 6,000 ** * 3,000 0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 (*) TRW OSS, estimate $300M in 2011, $350M in 2012, $400 in 2013 safety electronic

  10. Slide 10: 2013 in Summary

    2013 in Summary  Growth  7% organic sales growth  57% organic sales growth in Active Safety  26% organic sales growth in China  37% market share in the global automotive safety market  Capital Structure  $838 million in operational cash flow  $379 million of CAPEX, supporting growth  $339 m

  11. Slide 11: FY13 Financial Overview

    FY13 Financial Overview - Solid financial performance (US$ Mil’s unless specified) FY13 FY12 Sales $8,803 $8,267 Gross Profit $1,705 19.4% $1,646 19.9% EBIT * $808 9.2% $803 9.7% EPS * (assuming dilution) $5.82 $5.82 RoCE * 23% 24% RoE * 14% 15% Operating Cash flow* $838 $689 DPS ** $2.00 $1.89 GLVP

  12. Slide 12: Cash Flow

    Cash Flow - Investments for growth in CapEx and shareholder returns (US $ Mil’s unless specified)` Q1 Q1 FY FY FY FY 2014 2013 2013 2012 2011 2010 Net Income 131 125 490 486 627 596 Depreciation & Amortization 74 70 286 273 268 282 Other, net (6) 14 43 10 38 57 Change in operating WC* (14) (68) 19 (

  13. Slide 13: Shareholder Returns

    Shareholder Returns US$ (Millions) 400  In$339 2013 Autoliv returned a total of million to shareholders: $191 350 million through regular dividends and $148 million through share 300 repurchases. 250 200 150 100 50 0 2009 2010 2011 2012 2013 Dividend Share buybacks ALV 2014 Annual General Meeting -

  14. Slide 14: Autoliv Production Volumes 2013

    Autoliv Production Volumes 2013 Million Units 150,00 125,00 Knee Without 100,00 pret. Head Global car production 75,00 50,00 Chest With pret. 25,00 Front 0,00 Seatbelt Airbag Steering Wheel ECU ALV 2014 Annual General Meeting - 14 Copyright Autoliv Inc., All Rights Reserved

  15. Slide 15: Lead thru Innovation and Technology

    Lead thru Innovation and Technology with another strong year of new product introductions INNOVATIONS 2013 ALV 2014 Annual General Meeting - 15 Copyright Autoliv Inc., All Rights Reserved

  16. Slide 16: Autoliv in China

    Autoliv in China • Established in 1989 US$ (Millions) Sales • 20 million Light Vehicles Produced in 2013 • 16% of Autoliv’s total sales 1 500 • 37% Market Share in Airbags & Seatbelts • 8,800 Associates 1 000 • 11 Facilities • Major Customers: Chery, Geely, GM, Great 500 Wall, Hyundai/Kia, Jianghuai

  17. Slide 17: Active Safety Adoption

    Active Safety Adoption Million units Models 4 80  The rapid adoption of Active Safety continued. 70 In 2013, we shipped almost twice as many Active Safety units as in 2012. Organic sales grew by 57%, and we 3 60 delivered Active Safety products to almost 70 different vehicle models. 50 2 40 30 1 20

  18. Slide 18: Active Safety Sensors

    Active Safety Sensors Radar Vision Infrared Sensing  Detects vehicles and objects  Detects visible shapes, markings, objects  Does not need visible light  Measures distances  ”Reads” lane markings, light sources,  Classifies pedestrians and animals  Is not sensitive to light conditions traffi

  19. Slide 19: Active Safety Functions

    Active Safety Functions Autonomous Traffic Sign Recognition High/Low Beam Assist Emergency Braking Function: Function: Function: a symbol is displayed in automatically switches alerts the driver, tightens the instrument cluster or between high and low the active seatbelt, puts on the Head-up Display

  20. Slide 20: Light Vehicle Production Outlook

    Light Vehicle Production Outlook - 2003 thru 2018 Million Units ~ 99M 100,0 ~ 83M 32 80,0 Other ~59M ~ 66M 25 Growth Markets 60,0 ~ 57M ~28M China 21 28 12 20 4 40,0 8 9 7 Japan 11 9 Western 16 15 ~38M 13 ~40M Europe 20,0 14 Developed Markets North 16 16 18 13 America 0,0 2003 2008 2013 2018 Expect

  21. Slide 21: Growth Drivers by Product

    Growth Drivers by Product - Strong presence in product growth segments US$ (Billions) 40 ~ $28B 30 CAGR ~ 5% ~ $24B 2.8 1.3 Active Safety * 2.9 2.5 CAGR ~ 29% 20 4.0 Steering Wheels 3.7 CAGR ~ 5% Electronics 5.3 4.9 CAGR ~ 3% Side Airbags 10 CAGR ~ 3% 5.6 5.1 Frontal Airbags CAGR ~ 3% 6.6 Seatbelts

  22. Slide 22: The Road to Saving More Lives

    The Road to Saving More Lives Passive safety products, such as airbags and seatbelts, are there to help protect you from injury if a crash is PROTECTION AUTONOMOUS unavoidable. More than a million human beings owe their life to them. DRIVING In the future, self driving The major advancement from Act

  23. Slide 23: Q1 Financial Overview

    Q1 Financial Overview - Solid financial performance (US$ Mil’s unless specified) 2014 2013 Sales $2,296 $2,135 Gross Profit $445 19.4% $414 19.4% Operating Income* $198 8.6% $187 8.8% EPS* (assuming dilution) $1.43 $1.32 RoCE* 23% 22% RoE* 13% 14% Operating Cash flow $185 $141 Dividend** $0.52 $0.50

  24. Slide 24: An Industry with a heightened focus on Quality

    An Industry with a heightened focus on Quality - Our Zero-Defect Policy Design robust products Buy flawless components Manufacture flawless products Verify conformity of products Product Development Supply Base Production System Mistake Proofing Quality focus in all dimensions of our business ALV 20

  25. Slide 25: Financial Outlook

    Financial Outlook Q2 2014 FY2014 Sales Organic* ~ 5% > 5% Acquisitions / (Divestitures) - - Fx** ~ 1% ~ 1% Consolidated Sales ~ 6% > 6% Operating Margin* ~ 9% ~ 9% Expect another year of solid financial performance in 2014 (*) Non US GAAP measure, excludes costs for capacity alignments and antitrust

  26. Slide 26: Autoliv in Summary

    Autoliv in Summary  Solid performance in 2013 We envision 150,000 lives saved by our products annually  2014 will be a transition year to address our 150.000 120.000 margin challenges 90.000  Executing on our key strategies towards long- 60.000 term targets 30.000  Positioning our company to cap

  27. Slide 27: Autoliv

    Autoliv - Safety Systems Active Safety Autoliv Every year, Autoliv’s products save over 30,000 lives Passive The Worldwide Leader in Automotive Safety Systems Safety ALV 2014 Annual General Meeting - 27 Copyright Autoliv Inc., All Rights Reserved

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