Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2020 Earnings Presentation
21 slides from Autoliv's earnings presentation, Apr 24, 2020
Slide 1: Earnings Call Presentation 1st Quarter 2020
Earnings Call Presentation 1st Quarter 2020 April 24, 2020 Autoliv
Slide 2: Forward-looking statements
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 that Autoliv, Inc. or it
Slide 3: Q1 2020 highlights: sales, margin, cash flow, liquidity
Sales US$ (Millions) -13%*** ▪ Global Light vehicle production (LVP) fell by 24% − ~18 pp worse than expected 7.7% Adj. Op. Margin* ▪ Results supported by swift actions $2,174 7.4% Adj. Op. Margin* +11pp − Gross margin and adjusted operating margin* in line with Q1´19 $1,846 Growth above LVP** − Cos
Slide 4: Sales Bridge Regional Organic Growth
Sales Bridge Regional Organic Growth** US$ (Million) JAPAN -15% EUROPE -13% Org. growth** CHINA AMERICAS REST OF ASIA (*) Light Vehicle Production (LVP) according to IHS @ April, 2020 (**) Non-US GAAP measure 4 April 24, 2020 ALV – Q1-2020 Earnings Call and Webcast
Slide 5: Launches on new vehicle models
Lynk & Co 05 Toyota Yaris Tesla Model Y Suzuki Hustler Genesis G80 Audi A3 Cadillac CT4 Genesis GV80 Polestar 2 5 April 24, 2020 ALV – Q1-2020 Earnings Call and Webcast
Slide 6: Q1 2020 financial summary
(US $ Millions unless specified) Q1’20 Q1’19 Sales $1,846 $2,174 Gross Profit $331 17.9% $379 17.4% Adj. Operating Income1 $136 7.4% $166 7.7% EPS (assuming dilution) $0.86 $1.27 Adj. RoCE1,2 15% 19% Adj. RoE1,2 15% 22% Operating cash flow $156 $154 Dividend paid per share $0.62 $0.62 Global LVP3 (a
Slide 7: Operating margin bridge
(30) bps Operations 50 bps 20 bps -230 bps - Neg Lower organic sales ~370 bps 30 bps 100 bps 8.7% + Pos Cost reductions actions ~140 bps (*) Non-US GAAP measure excludes costs for capacity alignments and antitrust related matters April 24, 2020
Slide 8: Cash flow and free cash flow
(US $ Millions unless specified) Q1’20 Q1’19 LTM 2019 2018* Net Income 75 112 426 463 378 Depreciation & Amortization 89 90 350 351 342 EC antitrust payment - - -203 -203 - Other, net 11 -11 5 -17 236 Change in operating WC** -19 -37 65 47 -148 Operating cash flow 156 154 643 641 808 Operating cash
Slide 9: Net debt to EBITDA leverage
Net Debt/ EBITDA* x 1.7x ▪ Our net debt* decreased by $20M in the quarter Long-Term Target: 1.0x 0.5-1.5x ▪ EBITDA LTM decreased by $37M from Q4’19 Long-Term Range (*) Autoliv Inc. group statistics, prior to spin; Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability
Slide 10: Debt Maturities and liquidity
Debt Maturities* % of ~$3 billion total debt ~20% in the next 3 years • Significant liquidity cushion with $1.5 2020 10% billion in cash early April after 2024 • No significant debt refinancing until 2023 16% 2021 9% 2022 • Revolver credit facility matures in 2023 2024 0% 10% 2023 55% (*) None of th
Slide 11: COVID-19 community support examples
Examples ▪ Autoliv Poland worked with local hospital to manufacture and deliver masks. ▪ Autoliv Americas built and delivered aerosol boxes to local hospital. ▪ Autoliv Canada is working closely with the Canadian government to get our Nylon fabric qualified as appropriate for medical gowns. ▪ Autoli
Slide 12: Global light vehicle production LTM
Global light vehicle production LTM** (Million units) (Million units) 100 90 80 70 60 50 40 30 20 10 0 (*) Source: CAAM, Wards Auto, ACEA etc.., (**) Light Vehicle Production (LVP) according to IHS @ April, 2020
Slide 13: Regional market status during COVID-19
• 81 OEM plants in operation, 2 • LV sales declined 55% in • LV sales declined 38% in • LV sales declined by 9% in still closed March March (SAAR 11 million) March, Q1´20 down 10% • LV sales trend positive, from • Broad OEM plant shut downs • 100% of OEM are shutdown • OEM plants: 20 full shutdown,
Slide 14: Autoliv regional plant status and cost measures
18% 29% 32% 9% • ALV Plant status: Production has • ALV Plant status: Plants • ALV Plant status: 10 of 13 sites • ALV Plant status: Plants running gradually recovered to around resuming and ramping up fully shutdown. Limited production at approx. 70% 100% compared to this time last production in lin
Slide 15: Health, capital management and margin focus
▪ Health of our Employees − Implementing policies to protect employees − Raise awareness of well-being protocols and helpful practices ▪ Capital Management − Capital expenditures delays − Close monitoring of receivables and inventories − Tight collaboration with suppliers ▪ Margin Focus − Further al
Slide 16: Health and safety, customers, supply chain
▪ Health and safety • The health and safety of our employees and business partners is a top priority • Providing personal protection equipment to employees • Redesign of production environment ▪ Customers • China ramped-up in March • Europe starting-up this week, followed by North America • Slow, gr
Slide 17: IHS Light Vehicle Production and Q2 outlook
IHS: Light Vehicle Production* Q1´20 Q2´20 Q1´20 Q2´20 Region Million Y-o-Y Million Y-o-Y Market LVP decline* 24% ~45% Units Chg. Units Chg. Organic Sales decline 13% worse than Q1 China 2.9 -49% 4.6 -12% Japan 2.2 -8% 1.3 -40% Decremental margin ~18% higher than Q1 North America 3.5 -11% 1.3 -68% A
Slide 18: Key takeaways
▪ Health and Safety remain top priority ▪ Exceptional situation requires difficult decisions ▪ Assessing the new run rate of LVP, and continuously adjust ▪ Executing on our long-term strategies ▪ Continued flawless execution in a challenging situation 18 April 24, 2020 ALV – Q1-2020 Earnings Call an
Slide 19: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com
Slide 20: Product growth versus LVP
31.4 (15)% ▪ 17.9 (7)% ▪ 1.3 (6)% 12.1 (16)% ▪ 1.3 (1)% Side Airbags 21.3 (15)% ▪ Chest (Thorax) 11.7 (14)% ▪ Head (Curtain) 9.5 (16)% Steering Wheels 4.3 (18)% LVP* (Global) 16.7 (24.4)% (*) Light Vehicle Production (LVP) according to IHS @ April 2020, (**) Prior Year (PY). 20 April 24, 2020 ALV –
Slide 21: Definition of Symbols
Definition of Symbols 4 = Driver and/or Passenger airbags ah = Pedestrian Airbag A = Seatbelts @ « Steering Wheel A » Side airbags NA = Front Center Airbag Of # Head/Inflatable Curtain airbags e = Knee airbag [F] * Pyrotechnical Safety Switch Autoliv