Autoliv, Inc. · NYSE:ALV

Autoliv — Q4 2014 Earnings Presentation

20 slides from Autoliv's earnings presentation, Jan 29, 2015

  1. Slide 1: 4th Quarter Financial Results

    Earnings Conference call Webcast 4th Quarter Financial Results January 29, 2015 Driven for Life. © 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

  3. Slide 3: Q4 Highlights

    Q4 Highlights another quarter of solid financial performance  Financial Performance • Organic sales* growth 5.1%, almost 4pp better than LVP • Operating margin* 10.1%, better than expected • EPS* $1.81, YoY improvement ~ 7% • RoCE* ~ 26%, RoE* ~ 18% • Operating cash flow $229M  Shareholder returns

  4. Slide 4: Strong Performing Models contributing to solid organic sales growth in Q4'14

    Strong Performing Models contributing to solid organic sales* growth in Q4’14 Mercedes S-Class Ford Transit Mercedes A & B-Class/CLA/GLA VW Golf Hyundai Sonata Opel Corsa Hyundai Genesis Baojun 730 Nissan Rogue Active Safety organic sales* growth ~ 49% in Q4’14. (*) Non-US GAAP measure. ALV Q4’14 Fi

  5. Slide 5: 2014 Recap

    2014 Recap another year of solid overall performance  Strong Growth • organic sales* growth 6.2%, essentially in-line with our overall market • organic sales* growth in Active Safety ~ 45% and China ~ 8% • adjusted operating margin* 9.1%  Strong Capital Structure • record shareholders returns ~ $8

  6. Slide 6: Autoliv Inflators

    Autoliv Inflators an industry standard Pyrotechnical Inflator Manufacturing Footprint Propellant Sweden Initiator France Japan USA (Utah) Romania China Filter Housing New Production Investment  12 Inflator Lines  4 Initiator Lines  1 Spray Dryer  5 Presses Global capability includes in-house pro

  7. Slide 7: Executing our Growth Strategies - China organic sales growth ~ 8% in FY'14

    Executing our Growth Strategies - China organic sales* growth ~ 8% in FY’14 600 8 Capital Expenditures (net) Investments for Growth: ALV CapEx - US $ 6 China CapEx - US $  LVP** ~ 5% CAGR from 22M in 2014 to 400 % of ALV sales 29M in 2020 4 200  CPV** ~ 1% CAGR from 2014 to 2017 2  Increasing foo

  8. Slide 8: Executing our Growth Strategies - Active Safety organic sales growth ~ 45% in FY'14

    Executing our Growth Strategies - Active Safety organic sales* growth ~ 45% in FY’14 RD&E - Gross Expense RD&E Spending: 800 (US $ Millions) 10  Many new technologies in Passive Active % of sales, net 8 600 development launching in 2015; 6 • Mono & Stereo Vision, radar, AS domain 400 controller, hi

  9. Slide 9: Autonomous Emergency Braking (AEB)

    Autonomous Emergency Braking (AEB) an important enabler for Automated driving Autoliv • Radar based AEB in production since 2013 • Sensor fusion AEB launching in 2015 • Vision based collision warning launching in 2015 night time and City Interurban Pedestrians Cyclists Intersections all weather 24h/

  10. Slide 10: Key Model Launches during 2015

    Key Model* Launches during 2015 with Autoliv products Ford F-150 Volvo XC90 Honda Pilot Hyundai ix35/Tucson Honda Civic Renault Mégane KIA Sportage Toyota Prius Mercedes E Class Featuring both our Passive and Active Safety technologies (*) Some illustrations may represent current models already in p

  11. Slide 11: Market Conditions

    Market Conditions the macro environment remains mixed  Asia FY’15 LVP * @ Jan. 16, 2015 Region Vehicles (Mil’s) YoY Chg. • China growth rate is slowing, Q1’15 LVP ~ 6% China 23.2 +7% • Japan LVP is expected to decline for FY’15, Q1 (6)% Japan 8.6 (4)% • Strong growth in RoA, driven by India and Tha

  12. Slide 12: Q4 Financial Overview

    Q4 Financial Overview better than expected solid financial performance (US$ Million’s unless specified) 2014 2013 Sales $2,354 $2,352 Gross Profit $468 19.9% $455 19.3% Operating Income* $237 10.1% $236 10.0% EPS* (assuming dilution) $1.81 $1.70 RoCE* 26% 27% RoE* 18% 16% Operating Cash flow $229 $2

  13. Slide 13: Q4 2014 Operating Income Bridge

    Q4 2014 Operating Income* Bridge vs. Guidance and Prior Year Q4’14 vs. Guidance (60 bps higher) Q4’14 vs. Prior Year (10 bps higher) Operating Margin* 10.1% (*) Non-US GAAP measure, excludes costs for capacity alignments and antitrust matters. ALV Q4’14 Financial Earnings Report - 13 © Autoliv Inc.,

  14. Slide 14: FY Financial Overview

    FY Financial Overview another year of solid financial performance (US$ Millions’s unless specified) 2014 2013 Sales 9,240 $8,803 Gross Profit $1,804 19.5% $1,705 19.4% Operating Income* $842 9.1% $808 9.2% EPS* (assuming dilution) $5.93 $5.82 RoCE* 24% 23% RoE* 14% 14% Operating Cash flow $713 $838

  15. Slide 15: Cash Flow

    Cash Flow - Investments for growth in CapEx and shareholder returns (US$ Million’s unless specified) Q4 Q4 FY FY FY FY FY 2014 2013 2014 2013 2012 2011 2010 Net Income 148 101 469 490 486 627 596 Depreciation & Amortization 77 75 305 286 273 268 282 Other, net 21 5 42 43 10 38 57 Change in operating

  16. Slide 16: Capacity Alignment Program

    Capacity Alignment Program planning for further actions in FY’15 (US$ Million’s unless otherwise specified) FY13 Q1’14 Q2’14 Q3’14 Q4’14 FY14 Cost (gross) $40 $5 $11 $10 $19 $45 Cash outlay* $20 $5 $7 $11 $21 $44 Savings* $12 $1 $2 $2 $1 $6 Balance Sheet* $94 $94 $96 $88 $80 Assumptions for FY’15 ar

  17. Slide 17: Looking Ahead - Q1'15 Guidance

    Looking Ahead - Q1’15 Guidance  Sales • YoY organic sales* increase ~ 3%  mainly related to strong growth in Active Safety and Europe as well North America and China • Sequential organic sales* decline ~ 5%  mainly in North America and China  Operating Margin* ~ 8% • YoY  positive effects from

  18. Slide 18: Looking Ahead - FY'15 Indication

    Looking Ahead - FY’15 Indication  Sales • YoY organic sales* increase > 6%  mainly related to strong growth in Active Safety and Europe as well North America and China • YoY currency translation decrease < 6%  primarily due to the strengthening US $  Operating Margin* ~ 9.5% • YoY  positive eff

  19. Slide 19: Financial Outlook

    Financial Outlook Q1’15 FY’15 Sales Organic* ~ 3% > 6% Acquisitions / (Divestitures) - - Fx** > (7)% < (6)% Consolidated Sales close to (5)% < 1% Operating Margin* ~ 8% ~ 9.5% Exchange rates** Q1 2015 FY 2015 EUR / US$ 1.18 1.18 US$ / JPY 117 117 US$ / KRW 1086 1083 US$ / MXN 14.7 14.7 US$ / CNY 6.2

  20. Slide 20: Thank you!

    Thank you! Autoliv - Safety Systems Active Autoliv Safety Every year, Autoliv’s products save over 30,000 lives Passive …and prevent more than ten The Worldwide Leader in Automotive Safety Systems Safety times as many severe injuries ALV Q4’14 Financial Earnings Report - 20 © Autoliv Inc., All Right

Autoliv — Q4 2014 Earnings Presentation on 6ix