Slide 1: 2nd Quarter Financial Results
Earnings Conference call Webcast 2nd Quarter Financial Results July 22, 2016 Saving More Lives 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: Q2'16 Highlights
Q2’16 Highlights Solid performance Financial Performance • Organic sales* growth close to 8%, ~3 times better than LVP** • Operating margin* 8.6%, in-line with guidance • EPS* $1.75, ~8% better YoY** • RoCE* ~20%, RoE* ~16% • Operating cash flow $103M Capital Structure • $51M returned to shareho
Slide 4: Looking ahead
Looking ahead Strong order intake continued during H1’16 Growth • Ramp-up of new business awards is accelerating in Passive Safety • Further market opportunities are available • Positive development to surpass our end of decade Sales growth rate target of 7% Company Transformation continues • Ad
Slide 5: Unit Volume
Unit Volume Growth exceeds LVP* in most product areas Autoliv Quantities Delivered Q2’16 vs. PY (Millions unless specified) Seatbelts 38.0 2% • Pretensioners (of which) 17.8 17% • Active Seatbelts (of which) 0.8 5% Frontal Airbags 12.6 2% • Knee Airbags (of which) 1.5 3% Side Airbags 24.2 5% • Chest
Slide 6: Strong Performing Models
Strong Performing Models Contributing to our overall organic sales* growth in Q2’16 Honda Civic Renault Kadjar Mercedes GLE Mercedes C-Class Renault Megane KIA Sportage Ford F-Series Toyota Prius Hyundai Tucson Q2’16 Active Safety organic sales* growth ~30%, all of these models include our Electroni
Slide 7: China Update
China Update Light vehicle production appears to have stabilized for now Market • Solid H1’16 with an increase in LVP** of ~6% and an increase in LV sales** ~8%, both most likely boosted by incentives • LV Inventories** improved during Q2’16 • Monthly fluctuations remain erratic Autoliv • Strong
Slide 8: Overall Market Conditions
Overall Market Conditions Macro environment remains mixed Asia FY’16 LVP* Vehicles (Mil’s) • China sales** recovery continues, LVP* increase Region YoY Chg. China 24.2 +6% ~16% for Q3’16 YoY Japan 8.5 (1)% • Japan LVP increase ~1% for Q3’16 YoY RoA 12.4 0% • RoA LVP is roughly flat for Q3’16 YoY N
Slide 9: Q2 Financial Overview
Q2 Financial Overview Record sales and gross profit (US$ Millions unless specified) 2016 2015 Sales $2,579 $2,292 Gross Profit $527 20.4% $460 20.1% Operating Income* $221 8.6% $217 9.5% EPS* (assuming dilution) $1.75 $1.62 RoCE* 20% 24% RoE* 16% 17% Operating Cash flow $103 $154 Dividend per share
Slide 10: Operating Income and Margin Bridge
Operating Income and Margin* Bridge Q2’16 vs. Guidance and Prior Year Q2’16 vs. Guidance (10 bps better) Q2’16 vs. Prior Year (90 bps lower) Operating margin* 8.6% includes 110 bps increase in RD&E, net and 50 bps of negative acquisition effects YoY (*) Non-US GAAP measures exclude costs for capacit
Slide 11: Cash Flow
Cash Flow Investments for growth and shareholder returns (US$ Million’s unless specified) Q2 Q2 FY FY FY FY 2016 2015 LTM* 2015 2014 2013 2012 Net Income 148 137 567 458 469 490 486 Depreciation & Amortization 97 76 351 319 305 286 273 Other, net 1 4 18 0 42 43 10 Change in operating WC ** (143) (63
Slide 12: Q2 Segment Reporting
Q2 Segment Reporting Strong growth in all product areas Organic Operating Margin (%) CapEx (%) D&A (%) Sales* 2016 2015 2016 2015 2016 2015 Growth (%) Passive Safety *** 5.6 10.4 10.2 5.0 5.3 3.5 3.3 Airbags 5.7 Seatbelts 5.0 Electronics *** 18.5 2.5 3.2 4.6 3.5 4.2 2.9 Passive Safety Electronics 14
Slide 13: Looking Ahead: Q3'16 Guidance
Looking Ahead Q3’16 Guidance Sales • YoY organic sales* increase ~6% - Mainly related to strong growth in China, Europe and North America • YoY acquisition effect ~6% • Sequential consolidated sales decline ~5% - Mainly due to the normal seasonal effects Operating Margin* ~7.5% • YoY - Positive
Slide 14: Looking Ahead: FY'16 Indication
Looking Ahead FY’16 Indication Sales • YoY organic sales* increase ~7% - Mainly related to strong growth in Europe, China, North America and Active Safety • YoY acquisition effect ~5% • YoY currency translation effect >(1)% - Primarily due to the continued strong US$ Operating Margin* >8.5% • Yo
Slide 15: Financial Outlook
Financial Outlook Q3’16 FY’16 Sales Organic* ~6% ~7% Acquisitions ~6% ~5% Fx** <(1)% >(1)% Consolidated Sales, net ~12% >10% Operating Margin* ~7.5% >8.5% Exchange rates** Q3 2016 FY 2016 EUR / US$ 1.1048 1.1108 US$ / JPY 104.42 107.42 US$ / KRW 1144 1162 US$ / MXN 18.39 18.26 US$ / CNY 6.69 6.61 St
Slide 16: Thank You!
Thank You! ALV Q2’16 Earnings Release Presentation - 16 Copyright Autoliv Inc., All Rights Reserved