Autoliv, Inc. · NYSE:ALV

Autoliv — DI Conference (China), Stockholm 2012

25 slides from Autoliv's conference presentation, Oct 19, 2012

  1. Slide 1: Lessons learned from Autoliv's breakthrough in China

    Lessons learned from Autoliv’s breakthrough in China 中国奥托立夫 Jan Carlson, President & CEO October 19, 2012 Driven for Life © Autoliv Inc., All Rights Reserved

  2. Slide 2: Autoliv's Sales

    Autoliv’s Sales China Sales Development Global Sales Split $ million % of total sales 1,400 14 1,200 12 Europe Americas 1,000 10 33% 34% Sales % of total sales 9% 800 8 RoW 11% 600 6 Japan 12% 400 4 200 2 China 0 0 Sales split H1-2012 F 00 01 02 03 04 05 06 07 08 09 10 20 1 1 12 20 20 20 20 20 20 20

  3. Slide 3: China Enables us to Outperform Competition

    China Enables us to Outperform Competition US$ (million) 10 000 8 000 6 000 4 000 2 000 0 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 Takata Guidance for FY2012 period ending March 2013. ALV-/Jan Carlson, China October 2012 – Page 3 © A

  4. Slide 4: Chinese Market by Competitors

    Chinese Market by Competitors 2008, % 2012 (f), % 2013 (f), % Others Autoliv Others Autoliv Autoliv Others Tokai Tokai 7 million KSS 17 million KSS 19 million Tokai KSS Jinheng Jinheng Jinheng TG TG Takata TG TRW Takata Takata TRW TRW ALV-/Jan Carlson, China October 2012 – Page 4 © Autoliv Inc., All

  5. Slide 5: Autoliv China in Brief

    Autoliv China in Brief  Established 1989  Business with both ACC domestic and non-Chinese Changchun NHA OEMs CHA Beijing 10%  11 facilities with 7,200 ACB Nanjing ACH ACS CTC people Shanghai 9% ACX  Complete production Taipei capabilities for passive Guangzhou ACI ACW ACE safety products  Techn

  6. Slide 6: Reasons for Autoliv's Success in China

    Reasons for Autoliv’s Success in China ALV-/Jan Carlson, China October 2012 – Page 6 © Autoliv Inc., All Rights Reserved

  7. Slide 7: Tremendous Need for our Products

    Tremendous Need for our Products ALV-/Jan Carlson, China October 2012 – Page 7 © Autoliv Inc., All Rights Reserved

  8. Slide 8: Tremendous Need for our Products

    Tremendous Need for our Products Road Fatalities -per 10,000 registered vehicles and year 6 5 4 3 2 1 0 China USA Germany Japan World ALV-/Jan Carlson, China October 2012 – Page 8 © Autoliv Inc., All Rights Reserved

  9. Slide 9: Delivery Value per Vehicle by Region 2011

    Delivery Value per Vehicle by Region 2011 USD 400 350 300 Global Average 250 200 150 100 50 0 India China Europe Japan NA  Passive and Active Safety incl. SW ALV-/Jan Carlson, China October 2012 – Page 9 © Autoliv Inc., All Rights Reserved

  10. Slide 10: Low Costs from High Vertical Integration

    Low Costs from High Vertical Integration  Localization rate of component sourcing in China 100% 33 34 31 30 80% 60% 40% 67 66 69 70 20% 0% 2009 2010 2011 F2012 Produced in China Imported components ALV-/Jan Carlson, China October 2012 – Page 10 © Autoliv Inc., All Rights Reserved

  11. Slide 11: ALV-/Jan Carlson, China October 2012 – Page 11 © Autoliv Inc., All Rights Reserved

    ALV-/Jan Carlson, China October 2012 – Page 11 © Autoliv Inc., All Rights Reserved

  12. Slide 12: Autoliv's largest capital investment - New Propellant Facility in China

    Autoliv’s largest capital investment - New Propellant Facility in China  To meet increasing demand for airbags in Asia  Reduces manufacturing and logistic costs  Increases Autoliv’s global propellant production capacity by 25%  The plant will supply Autoliv’s inflator production facilities in Ch

  13. Slide 13: Superior Technology and Engineering Support

    Superior Tecnology and Engineering Support  Engineering capabilities for all passive safety products  Approximitly 10% of Autoliv engineers are located in China China 10% Autoliv’s state-of-the-art crash lab in Shanghai Global R,D&E 4,500 people ALV-/Jan Carlson, China October 2012 – Page 13 © Aut

  14. Slide 14: ALV-/Jan Carlson, China October 2012 – Page 14 © Autoliv Inc., All Rights Reserved

    ALV-/Jan Carlson, China October 2012 – Page 14 © Autoliv Inc., All Rights Reserved

  15. Slide 15: Expansion of China Tech Center

    Expansion of China Tech Center - investing 8 MUSD to extend existing facility  To meet increasing demand for engineering capabilities  Adds Active Safety engineering capabilities  The investment includes an expansion of the laboratory for electronics and technical development ALV-/Jan Carlson, Ch

  16. Slide 16: Light Vehicle Growth

    Light Vehicle Growth 105.0 ~ 98M 90.0 Growth Markets ~ 79M 32 • Rest of World ~ 75M 75.0 ~ 69M • Eastern Europe 25 (million units) 24 60.0 19 China 26 45.0 8 17 16 11 8 30.0 8 9 Developed Markets ~42M 16 12 14 ~40M • Japan 14 ~34M ~37M 15.0 • Western Europe 15 13 15 18 • North America 0.0 2007 2011

  17. Slide 17: Leading Quality Performance

    Leading Quality Performance PPM Customer Rejects Group China ALV-/Jan Carlson, China October 2012 – Page 17 © Autoliv Inc., All Rights Reserved

  18. Slide 18: Summary Reasons for Autoliv's Success

    Summary Reasons for Autoliv’s Success  Early start  Wholly owned facilities  Technology leader  Vertical integration  Same Global Standards  Strong focus on Quality  Strong focus on Compliance ALV-/Jan Carlson, China October 2012 – Page 18 © Autoliv Inc., All Rights Reserved

  19. Slide 19: Lessons Learned from doing Business in China

    Lessons Learned from doing Business in China ALV-/Jan Carlson, China October 2012 – Page 19 © Autoliv Inc., All Rights Reserved

  20. Slide 20: Lessons Learned

    Lessons Learned  Apply the same standards and corporate values as in our home market. Make sure all employees understand that bribes and kickbacks are not acceptable ALV-/Jan Carlson, China October 2012 – Page 20 © Autoliv Inc., All Rights Reserved

  21. Slide 21: Lessons Learned

    Lessons Learned  Have a system to grow and develop local people to retain talents ALV-/Jan Carlson, China October 2012 – Page 21 © Autoliv Inc., All Rights Reserved

  22. Slide 22: Lessons Learned

    Lessons Learned  Utilize expats to complete strategically critical tasks and to develop local management competencies ALV-/Jan Carlson, China October 2012 – Page 22 © Autoliv Inc., All Rights Reserved

  23. Slide 23: Lessons Learned

    Lessons Learned  Make China a show case for new technologies, not a museum of old products ALV-/Jan Carlson, China October 2012 – Page 23 © Autoliv Inc., All Rights Reserved

  24. Slide 24: Summary

    Summary  Integrate the best from the western company (technology, management, system, procedure)  with the local Chinese strengths (agility, flexibility, cost focus etc) ALV-/Jan Carlson, China October 2012 – Page 24 © Autoliv Inc., All Rights Reserved

  25. Slide 25: Autoliv - Safety Systems

    Autoliv - Safety Systems Active Safety Autoliv Every year, Autoliv’s products save over 25,000 lives The Worldwide Leader in Automotive Safety Systems Passive Safety ALV-/Jan Carlson, China October 2012 – Page 25 © Autoliv Inc., All Rights Reserved

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