Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2021 Earnings Presentation
18 slides from Autoliv's earnings presentation, Apr 23, 2021
Slide 1: Autoliv Earnings Call Presentation 1st Quarter 2021
Autoliv Earnings Call Presentation 1st Quarter 2021 1 April 23, 2021 ALV – Q1-2021 Earnings Call and Webcast
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: Q1´21 Highlights
Q1´21 Highlights Operational excellence and solid growth drives strong financial performance ▪ Market development − Resource bottlenecks in global supply chains hamper industry growth − Headwinds from raw material and commodities prices ▪ Strong organic sales growth − Strong sales development despit
Slide 4: Q1´21 Financial Highlights
Q1´21 Financial Highlights Strong sales and margin recovery from last year Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 21% $101 $30 10.6% Adj. $2,242 $186 Op. Margin* $237 $156 7.4% Adj. Op. Margin* $1,846 $136 Q1´20 Q1´21 Q1´20 Q1´2
Slide 5: Q1'21 Sales Growth
Q1’21 Sales Growth Outperforming global LVP by more than 4 percentage points Regional Organic Growth* vs. LVP** EUROPE JAPAN AMERICAS CHINA REST OF ASIA (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) according to IHS Markit @ April 2021 5 April 23, 2021 ALV – Q1-2021 Earnings Call and W
Slide 6: Q1'21 - Key Model Launches
Q1’21 - Key Model Launches Arcfox αS Jeep Grand Cherokee L Hyundai Bayon Peugeot 308 WEY Mocha Mitsubishi Outlander Mercedes C-Class Hyundai Ioniq 5 Acura MDX 6 April 23, 2021 ALV – Q1-2021 Earnings Call and Webcast
Slide 7: Q1´21 Financial Overview
Q1´21 Financial Overview (US $ Millions unless specified) Q1’21 Q1’20 Sales $2,242 $1,846 Gross Profit $458 20.4% $331 17.9% Adj. Operating Income1 $237 10.6% $136 7.4% EPS (assuming dilution) $1.79 $0.86 Adj. RoCE1,2 26% 15% Adj. RoE1,2 25% 15% Operating cash flow $186 $156 Dividend paid per share
Slide 8: Q1´21 Adj. Operating Margin* Bridge
Q1´21 Adj. Operating Margin* Bridge vs. Prior Year 320 bps 10.6% Operations 230 bps + Pos • Higher sales 110 bps • Productivity in labor and component costs 7.4% 0 bps • Structural efficiency programs - Neg -20 bps • COVID-19 related inefficiencies in supply chain and manufacturing • Direct costs re
Slide 9: Cash Flow
Cash Flow Capex and D&A (US$ Millions unless Q1’21 Q1’20 LTM 2020 2019 specified) Net Income $157 $75 $271 $188 $463 Depreciation & 99 89 381 371 351 Amortization EC antitrust payment - - - - -203 Other, net 19 11 21 13 -17 Change in operating WC -89 -19 207 277 47 Cash Conversion2 Operating cash fl
Slide 10: Leverage Ratio
Leverage Ratio Within target range Net Debt/ EBITDA* Net Debt and EBITDA per the Policy x $2,000 3.0 2.5 $1,500 2.0 $1,000 1.4x 1.5 0.5-1.5x $500 Long-Term Target: 1.0x Q1´19 Q2´19 Q3´19 Q4´19 Q1´20 Q2´20 Q3´20 Q4´20 Q1´21 1.0 Long-Term Range Net Debt EBITDA 0.5 ▪ Our Net Debt* decreased by $109M fr
Slide 11: Substantial Raw Material Headwinds
Substantial Raw Material Headwinds IHS Markit: U.S. hot-rolled sheet steel ▪ We mainly buy components and not pure raw material ▪ The effects from changes in spot market prices are mitigated and delayed through longer-term supply contracts: ▪ The delay is typically 6 to 12 months ▪ Our volatility is
Slide 12: Global Semiconductor Shortage
Global Semiconductor Shortage ▪ Our direct exposure is limited ▪ Vehicle manufacturers are experiencing increased disruption to the supply of systems using semiconductors ▪ Chipmakers rushing to expand their production capacity, but long lead times mean the supply issues will extend well into Q2-Q3
Slide 13: Light Vehicle Production Outlook
Light Vehicle Production Outlook IHS Markit: Light Vehicle Production* Q2´21 FY´21 Uncertainty prevails Region YoY Million Y-o-Y Chg. Units Chg. FY21: China -1.2% 23.4 5.9% Japan 51% 8.0 4.9% Rest of Asia 108% 11.2 17.3% North American LVP has been reduced by ~600,000 units. The first and second Nor
Slide 14: FY'21 Indication for Organic Growth and Margin Unchanged
FY’21 Indication for Organic Growth and Margin Unchanged Despite Market Headwinds + Positives - Negatives ▪ Strong start of the year ▪ Lower LVP outlook due to component shortages ▪ Improved sales mix ▪ Raw material price increases ▪ Additional cost reductions 14 April 23, 2021 ALV – Q1-2021 Earning
Slide 15: Full year 2021 indications
Full year 2021 indications Full year indication Sales, net Around 23% Exchange rates3 FY’21 Organic sales increase1 Around 20% EUR / US$ 1.20 Org. sales outperformance vs. LVP Mid-single digits US$ / JPY 108.16 FX Around 3% US$ / KRW 1115 US$ / MXN 20.12 Adjusted Operating margin1 Around 10% US$ / C
Slide 16: Le “Autoliv
Le “Autoliv —
Slide 17: Q1´21 Product Volumes
Q1´21 Product Volumes Strong airbag sales Autoliv Quantities Delivered Q1´21 vs. PY** (%) (Millions unless specified) Seatbelts 34.9 11% ▪ Pretensioners (of which) 20.8 16% ▪ Active Seatbelts (of which) 1.6 21% Frontal Airbags 14.4 19% ▪ Knee Airbags (of which) 1.7 31% Side Airbags 25.3 19% ▪ Chest
Slide 18: Definition of Symbols
Definition of Symbols ▪ Driver and/or Passenger Airbags ▪ Pedestrian Airbag ▪ Seatbelts ▪ Steering Wheel ▪ Side Airbags ▪ Front Center Airbag ▪ Head/Inflatable Curtain Airbags ▪ Bag-in-Belt ▪ Knee Airbag ▪ EV / PHEV ▪ Pyrotechnical Safety Switch 18 April 23, 2021 ALV – Q1-2021 Earnings Call and Webc