Slide 1: Post Q4 2018 presentation
Autoliv Post Q4 2018 presentation Saving more lives Autoliv IR at Svenska Handelsbanken – NDR London February 14, 2019 1 February 14, 2019 ALV – Post Q4-2018 Presentation Copyright Autoliv Inc., All Rights Reserved Copyright Autoliv Inc., All Rights Reserved
Slide 2: Autoliv 2018 Achievements and Challenges
Autoliv 2018 Achievements and Challenges Strong order intake and outperformance of light vehicle production for new Autoliv ▪ New executive management team in place ▪ Veoneer spin-off in July − Improved focus and flexibility for both companies (culture, people, business) ▪ Light vehicle market in Ch
Slide 3: Target update
Target update Sales and profitability capacity unchanged Target update IHS Global Light Vehicle Production Forecast Million units 1 2020 (5) M (3) M ▪ Global light vehicle sales and production slowdown ▪ Headwinds from other external factors such as raw material 100 ▪ Do not expect to reach targets
Slide 4: Order Intake Momentum Remains Strong
Order Intake Momentum Remains Strong Around 50% Order Intake Share Continued In 2018 Order Intake Annualized Sales and Share ▪ 2018 order intake in line with 2017 2014A-18A ▪ Market share gains within all product areas and regions compared to today’s level >50% ~50% ~50% ▪ Major wins with all leadin
Slide 5: Strong starting point
Strong starting point Clear market leader in a consolidated market Firm Market Leader at 40% – Far Exceeding Competitors(1) #1 Rankings Across Product Portfolio(1) % 2018A (2) 38% Frontal Airbags Side Airbags Autoliv 40% Comp. 1 33% 48% Comp. 2 Comp. 3 Comp. 4 Seatbelts Steering Wheels Comp. 5 2017
Slide 6: Growth opportunities
Growth opportunities Vulnerable Road Users Road traffic death by type road user* Other 21% Car Occupants 30% Cyclist 4% Pedestrians 22% Scooters and Motorbikes 23% Vulnerable Road used accounts for ~49% of all road fatalities Significantly reduce injuries for all vulnerable road users and continue t
Slide 7: Pedestrian Airbag Saves the Life of 12-year Old Boy
Pedestrian Airbag Saves the Life of 12-year Old Boy Vulnerable road users and autonomous vehicles ▪ Protection of vulnerable road users key for acceptance of Autonoumous vehicles ▪ OEMs and RoboTaxi companies show increased interest because when driving shifts from driver to machine, liability trans
Slide 8: Longer term growth opportunities
Longer term growth opportunities Research/Technology 2025+ Impact Angle Front 60o Collaborate with OEMs and other Tier 1 to develop new airbags and seat belt systems for automated vehicles 8 February 14, 2019 ALV – Post Q4-2018 Presentation Copyright Autoliv Inc., All Rights Reserved
Slide 9: Q4'18 Highlights
Q4’18 Highlights ▪ Above market growth supported by strong order intake since 2015 − Organic sales* growth >4%, ~10 pp better than LVP** − Execution on strong order book − Launches on track although launch related costs remain on the high levels seen in Q3 − Strong performance with transplants in No
Slide 10: Q4'18 Financial Overview
Q4´18 Financial Overview (US $ Millions unless specified) Q4’18 Q4’17 Sales $2,193 $2,159 Gross Profit $425 19.4% $441 20.4% Operating Income1 $240 10.9% $254 11.8% EPS (assuming dilution) $(1.06) $2.26 RoCE1,2 26% n/a RoE1,2 24% n/a Operating cash flow Cont. Ops $289 n/a Dividend per share $0.62 $0
Slide 11: FY'18 Financial Overview
FY´18 Financial Overview (US $ Millions unless specified) FY’18 FY’17 Sales $8,678 $8,137 Gross Profit $1,711 19.7% $1,680 20.6% Operating Income1 $908 10.5% $899 11.1% EPS (assuming dilution) $4.31 $6.68 RoCE1,2 22% n/a RoE1,2 20% n/a Operating cash flow Cont. Ops $806 $870 Dividend per share $2.46
Slide 12: Market Development
Market Development 2019 Light Vehicle Production Outlook IHS: 2019 Light Vehicle Production* Q1´19 FY´19 Region Millions YoY Millions YoY Units Chg. Units Chg. ▪ Challenging first half year with recovery projected for second half China 5.9 (9)% 26.2 2% year Japan 2.5 5% 9.2 1% RoA* 3.3 1% 13.4 3% ▪
Slide 13: Financial Outlook 2019
Financial Outlook 2019 Full year indication Indication Organic sales growth* ~5% FX ~(1)% Consolidated sales, net ~4% Adjusted Operating margin* ~10.5% Exchange rates*** FY’19 EUR / US$ 1,1416 Tax rate ~28% US$ / JPY 108,57 US$ / KRW 1121 Operating Cash flow Higher than 2018** US$ / MXN 19,00 Capex
Slide 14: Our focus for 2019
Our focus for 2019 ▪ Continue to Execute on Strong Order Book ▪ Product Launch Effectiveness ▪ Productivity Development ▪ Monitor and Manage Light Vehicle Market Volatility ▪ Secure Our New and Stronger Market Position ▪ Save More Lives 14 February 14, 2019 ALV – Post Q4-2018 Presentation Copyright
Slide 15: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com Copyright Autoliv Inc., All Rights Reserved
Slide 16: USA Light Vehicle Sales and inventories
USA Light Vehicle Sales and inventories Inventories Sales 16 February 14, 2019 ALV – Post Q4-2018 Presentation Copyright Autoliv Inc., All Rights Reserved
Slide 17: Europe Light Vehicle Sales
Europe Light Vehicle Sales Light Vehicles Sales 18 2018 vs. 2017 16 14 12 million units 10 8 6 4 2 0 17 February 14, 2019 ALV – Post Q4-2018 Presentation Copyright Autoliv Inc., All Rights Reserved
Slide 18: China Light Vehicle Sales and inventories
China Light Vehicle Sales and inventories Sales Inventories 30 2017 Inventory 2018 Inventory 1.5 3 25 2.25 20 2 1.92 1.93 1.88 1.92 million units 1.79 1.82 1.75 1.73 1.60 1.59 1.63 1.66 1.66 1.59 1.58 1.66 15 1.55 1.54 1.37 1.33 1.28 1.21 10 1 0.90 5 0 0 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov
Slide 19: China Light Vehicle sales by OEM 2018
China Light Vehicle sales by OEM 2018 YoY % China LV Total YoY% 4500 Thousands Above Flat Below 70.0% 4000 50.0% 3500 31.4% 3000 2,037 29.5% 26.6% 2,072 30.0% FAWVW SGMW 17.4% 14.7% 2500 13.7% 15.5% 2.0% 2.6% 3.2% 10.0% -2.9% 0.9% -1.6% -4.6% 3.6% 2000 -18.0% 1500 -13.0% -10.0% 371 -17.2% DF-KIA 100