Slide 1: Earnings Conference Call and Webcast: Q4 and Full Year 2019 Financial Results
Earnings Conference Call and Webcast 4'y Quarter and Full year 2019 Financial Results January 28, 2020 Autoliv
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 develapments t
Slide 3: Key events
A OS a eae eee (419 Key events = Positive earnings trend continues. Building towards our medium-term targets - Cost reduction actions yielding results - Adjusted operating margin* improving Y-0-Y - Organic sales* growth of 0.5%, outperforming Global LVP** by ~6 pp - High order intake share maintaine
Slide 4: Adjusted Operating Margin Progression
Adjusted Operating Margin* Progression Adjusted Operating Margin* % 12% 10% B% 8% 4% 2% 0% al ge 93 04 moos meolg (*) Non-US GAAP measures exclude costs for capa Autoliv
Slide 5: Q4'19 Financial Highlights
(J4°19 Financial Highlights Relatively unchanged performance despite major LVP drop Consolidated Net Sales Adjusted Operating Income* Adjusted Earnings per Share* USS (Millions) US$ (Millions) US$ 2,193 2,19 1.84 240 242 142 0418 g419 0418 g419 0418 Q419 (*) Non-US GAAP measures exclude costs for ca
Slide 6: Q4'19 Market Conditions
a OL Oa “ee 04°19 Market Conditions Temporary increase in LV sales in EU ahead of new regulations 10- year Light Vehicle Sales LTM** * China - Light vehicle registrations** fell for the 18" consecutive month in December. For the quarter 7 —China registration fell 2.8% Y-0-Y “3 - LVP* +1%, the first
Slide 7: Q4'19 Sales Growth
Q)4°19 Sales Growth Regional Organic Growth** ey uy (1.0)% LvP* (5) JAPAN LVP* (11)% AMERICAS fam cHNa : 12.8% LvP* (9)% STP 1% (18)% = > LVP* (9)% (*) Light Vehicle Production (LVP) according to /HS @ January, 2020 (**) Non-US GAAP measure (9.5)% Sales Bridge US$ (Million) 2,300 2,200 2,100 2,000 1
Slide 8: FY'19 Sales Growth and Market Share
FY°19 Sales Growth and Market Share Regional Organic Growth** Market Share Development*** 45% Pals G EURO 2.8), Ae a eos » J (3.4)% 30% 7 L ‘ LVP* (0)% AMERICAS: é : A 6.8% : - A oan LVP* (4)% 4 ‘ 4.5% 15% ae : 1.9% 4 LVP* (6)% 0% Airbag Seatbelt Steering Total Wheel m2017 #2018 m20ig (*) Light Vehi
Slide 9: Key Model Launches
419 - Key Model Launches BMW 2-Series Gran Coupé A ae Great Wall Pao Opel Corsa @ AX @ AM MA LAE Honda Fit/J . “a onda Fit/Jazz Isuzu D-Max = a Sk MEA SM ey Nissan Juke Buick Enclave AH KA @MA —— Peugeot 2008 Renault Clio ag aes) @ HS Mk A MM MEA
Slide 10: Q4'19 Financial Overview
04°19 Financial Overview Sales Gross Profit Adj. Operating Income! EPS (assuming dilution) Adj. RoCEL2 Adj. RoE!2 Operating cash flow Dividend per share Global LVP3 (annual rate) $2191 $427 $242 $178 26% 31% $312 $0.62 ~87M 19.5% 11% $2193 $425 $240 $(1.08) 26% 24% $287 $0.62 ~92M 19.4% 10.9% y (ROE
Slide 11: Q4'19 Adj. Operating Margin Bridge
(J4°19 Adj. Operating Margin* Bridge vs. Prior Year 12.0% . Operations 11.5% Obps +Pos Business cycle management, sales 10 bps 11.1% growth from new launches, lower launch 11.0% 10.9% Td related costs, structural efficiency (10) bps program 10.5% - Neg LVP decline with a disproportionate 10.0% negat
Slide 12: Cash Flow Continuing Operations
Cash Flow Continuing Operations Investments for growth and shareholder returns Capex and D&A 500 1% (US$ Millions un “ os 400 6 Net Income 156 2 4% 8 Depreciation & Amortization 91 89 351 342 3 300 mS 250 ea EC antitrust payment = = (203) = ooo aos Other, net (19) 219 a7) 236 re erat vis we Change i
Slide 13: Debt Policy
A OS a eae eee Debt Policy Committed to Maintain “Strong Investment Grade” Rating Supported by High Cash Conversion* Net Debt/ EBITDA*® x 20 1.7x 16 = Our net debt* decreased by $91M in the quarter Long-Term 0.5-1.5x = EBITDA LTM increased by $2M from 319 1.0 Long-Term Range Os 0.0 94°16 04°17 9418
Slide 14: FY'19 Challenges and Achievements
FY°19 Challenges and Achievements Outperformance of light vehicle production and strong order intake Challenges = Light vehicle markets and raw material prices = Social unrest in Mexico and UAW strike in the U.S. Achievements and actions = Business cycle management actions to offset lower LVP yieldi
Slide 15: Structural efficiency program update
Structural efficiency program update Po FY2019 Expected for program Cost ~$52M ~$52M | Cash out ~$29M ~$52M Headcount reduction ~450 ~800 | Savings ~$10M ~$60M annually | * Fully implemented by mid 2020 * Allfunctions are subject to the program | = Most countries where we have operations will be imp
Slide 16: FY'19 Order intake share remains strong
FY°19 Order intake share remains Strong Around 50% Order Intake Share Continued In 2019 Order Intake Lifetime Sales* and Share 2014-198 = 2019 order intake share in line with 2018 ~5O% = Winrate within all product areas and regions higher than today’s market share level “50% ~50% = >50% “50% = Lower
Slide 17: Light Vehicle Production Outlook
A OS a eae eee Light Vehicle Production Outlook Uncertainty prevails " Our FY 2020 outlook is based on global LVP declining 2-3% —FY2O - Light Vehicle production in North America is expected to be flat or to decline |__| sigh tha "eh - Uncertainty in Europe around the market acceptance for electrifi
Slide 18: FY'20 - Key Models
FY’20 - Key Models Contributing to the ramp-up of sales growth Peugeot 208 and 2008 Opel Corsa Chevrolet Trailblazer/Buick Encore U.S. Crossover Honda Fit/Jazz Mazda CX-30 Korean Car EU Car Nissan Versa Ford Escape/Kuga EU Car Japanese Car oa Ai Autoliv
Slide 19: FY'20 Year-on-Year Improvement Supporting our target
FY’2O Year-on- on-Year Improvement Supporting our target S Tailwinds 2020 » Executing from strong order book Headwinds 2020 ici rogram . structural Efficiency Progran Lower inflator replacement sales Continued decline in LVP Investment for factory of the future Strategic initiatives Normalization of
Slide 20: Financial Outlook 2020
Financial Outlook 2020 Sales, net 3% - 4% Exchange rates? | FY'20 | Organic sales growth! 8% -4% EUR/ USS 159 Org. sales outperformance vs. LVP ~6pp ° Global LVP (2)% - (3)% WiSRSV/ale Tse US$ / KRW 1158 FX 0% US$ / MXN 18.79 Adjusted Operating margin! At least 9.5% Wisks/OLN Tax rate? ~28% Operatin
Slide 21: Our focus for 2020
Our focus for 2020 Delivering flawless execution of our strong order book with a positive medium term margin contribution = Investing for factory of the future = Planning and implementing further structural improvements = Manage Light Vehicle Market Volatility * Defend our Medium term Market Share P
Slide 22: Le “Autoliv
Le “Autoliv —
Slide 23: Q4'19 Product Volumes
Q)4°19 Product Volumes Strong performances for all products considering the drop in LVP toliv Quantities Delivered 9419 (Millions unless ied) Seatbelts 381 = Pretensioners (of which) 2B * Active Seatbelts (of which) 15 Frontal Airbags 15.0 * Knee Airbags (of which) 14 Side Airbags 251 * Chest (Thora
Slide 24: FY'19 Product Volumes
a OL Oa “ee FY°19 Product Volumes Quantities Delivered FY’19 Seatbelts 1461 = Pretensioners (of which) 79.4 = Active Seatbelts (of which) 57 Frontal Airbags 572 = Knee Airbags (of which) 5.4 Side Airbags 981 = Chest (Thorax) 53.8 = Head (Curtain) 44.3 Steering Wheels 20.9 LVP* (Global) 85.9 (*) Ligh
Slide 25: ALV – Q4-2019 Earnings Call and Webcast
18.5% 19.7% 25 ALV – Q4-2019 Earnings Call and Webcast
Slide 26: FY'19 Adj. Operating Margin Bridge
FY°19 Adj. Operating Margin* Bridge vs. Prior Year Obps (60) bps (20) bps 9.1% (60) bps 10% FY2018 Raw material Currencies RD&E/SG&A Operations FY2019 (*) Non-US GAAP measure excludes costs for capacity alignments, antitrust related matters and separation of our business segments Autoliv
Slide 27: Definition of Symbols
Definition of Symbols 4 = Driver and/or Passenger airbags ah = Pedestrian Airbag A « Seatbelts @ « Steering Wheel A = Side airbags NA = Front Center Airbag Of * Head/Inflatable Curtain airbags e * Knee airbag [F] * Pyrotechnical Safety Switch Autoliv