Slide 1: Earnings Conference Call and Webcast: 2nd Quarter 2017 Financial Results
1st Earnings Conference Call and Webcast 2nd Quarter 2017 Financial Results July 21, 2017 1 July 21, 2017 ALV – Q2-2017 Earnings Call and Webcast 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: Q2'17 Highlights
Q2’17 Highlights Solid performance while strengthening our market position Financial Performance − Organic Sales* growth 0.2%, slightly better than the LVP** − Operating Margin* 8.4%, in-line with our guidance despite lower organic sales* growth − Operating cash flow $179M and EPS* $1.44 Capital
Slide 4: Technology Cooperations
Technology Cooperations Recently announced Business Model ALV and VCC* Collaborate Venture Capital Fund − ALV maintains Tier 1 position with OEMs with NVIDIA utilizing the AI* − With a focus on ground transportation and potential shared mobility customers computing platform − $15M invested over 3 ye
Slide 5: Business Outlook
Business Outlook Strong momentum in both segments Passive Safety − Continued strong order intake, ramping up launches of new programs awarded in 2015 − RD&E in PAS* is expected to peak during H2’17, operating leverage on RD&E is expected to start in Q4’17 − Maintaining flexibility to adapt to unde
Slide 6: Q2'17 Product Volumes
Q2’17 Product Volumes Strong volume growth in high value-added Seatbelts Autoliv Quantities Delivered Q2’17 vs. PY* (%) (Millions unless specified) Seatbelts 37.2 (2) Pre-tensioners (of which) 17.7 1 Active Seatbelts (of which) 1.1 16 Frontal Airbags 13.0 3 Knee Airbags (of which) 1.6 5 Side A
Slide 7: Q2'17 Strong Performing Models
Q2’17 Strong Performing Models Contributing to our overall Organic Sales* growth Hyundai Grandeur / Azera Nissan Qashqai / Rogue Sport Toyota Alphard Mazda 3 / Axela Mercedes GLC Geely Emgrand Boyue Toyota C-HR Mercedes E-Class Volvo S90 / V90 ALV Electronics products are represented on six of these
Slide 8: Overall Market Conditions
Overall Market Conditions Some uncertainty remains around the automotive cycle Asia FY 2017 LVP* Vehicles YoY Chg. YoY Chg. Region − China LVP* LTM* relatively flat while inventories** remained high during Q2’17 (Millions) @ Jul. 17 @ Jan. 16 China 26.3 +1% +3% − Q3’17 LVP is expected to increase
Slide 9: Q2 Financial Overview
Q2 Financial Overview Record gross profit for a 2nd quarter (US $ Millions unless specified) 2017 2016 Sales $2,545 $2,579 Gross Profit $536 21.0% $527 20.4% Operating Income* $213 8.4% $221 8.6% EPS* (assuming dilution) $1.44 $1.75 RoCE* 18% 20% RoE* 12% 16% Operating cash flow $179 $103 Dividend p
Slide 10: Operating Income and Margin Bridge Q2'17 vs. Prior Year
Operating Income* and Margin* Bridge Q2’17 vs. Prior Year Q2’17 vs. Prior Year (20 bps lower) 8.6% 8.4% $221 $213 MUS$ Operating Margin* 8.4% includes ~80 bps increase in RD&E, net vs. Prior Year (*) Non-US GAAP measures exclude costs for capacity alignments and antitrust related matters. 10 July 21
Slide 11: Cash Flow
Cash Flow Investments for growth and shareholder returns (US $ Millions unless specified) Q2’17 Q2’16 LTM** 2016 2015 2014 2013 2012 Net Income 128 148 550 562 458 469 490 486 Depreciation & Amortization 100 97 416 383 319 305 286 273 Other, net 9 1 (18) 1 0 42 43 10 Change in operating WC * (58) (1
Slide 12: Q2 Segment Reporting
Q2 Segment Reporting Strong operational performance in Passive Safety driving group profitability Organic Sales* Sales (US$ Millions) Operating Margin (%) CapEx (%) D&A (%) Headcount Growth (%) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Passive Safety *** 0.8 1,983 1,996 10.5 10.4 5.9 5.0 3.8
Slide 13: Looking Ahead: Q3'17 Guidance
Looking Ahead Q3’17 Guidance Sales − Organic Sales* growth 0 to 2% YoY** − Mainly related to strong growth in Europe, China, South Korea, South America and Active Safety − Currency translation YoY − Negligible effect − Sequential consolidated sales decrease of ~2% − In-line with expected sequentia
Slide 14: Looking Ahead: FY'17 Indication
Looking Ahead FY’17 Indication Sales − Organic Sales* growth ~2% YoY** − Mainly related to strong growth in Europe, Japan, India, South America and Active Safety partially offset by lower restraint controls and brake systems − Acquisition effects ~1% YoY − Currency translation YoY − Negligible eff
Slide 15: Financial Outlook
Financial Outlook Consolidated sales, net and operating margin* remain unchanged for FY’17 Q3’17 FY’17 Sales Organic* 0 to 2% ~2% Acquisitions - ~1% Exchange rates** Q3’17 FY’17 EUR / US$ 1.1431 1.1124 Fx** ~0% ~0% US$ / JPY 113.14 112.79 Consolidated Sales, net 0 to 2% ~3% US$ / KRW 1138 1140 US$ /
Slide 16: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com