Autoliv, Inc. · NYSE:ALV
Autoliv — Q3 2022 Earnings Presentation
21 slides from Autoliv's earnings presentation, Oct 21, 2022
Slide 1: Earnings Call Presentation 3rd Quarter 2022
More Lives Saved More Life Lived Earnings Call Presentation 3rd Quarter 2022 October 21, 2022 October 21, 2022 ALV – Q3-2022 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
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: Q3'22 Key Highlights
Q3’22 Key Highlights The Q3 performance is an important step towards our medium-term targets ▪ Record sales for a third quarter − Executing on our strong order book − Outperforming LVP in all major regions ▪ Strong profit recovery Y-o-Y and sequentially − Margins supported by our own actions especia
Slide 4: Price Negotiations
Price Negotiations Adapting to new business conditions ▪ Prices must reflect the changed cost environment ▪ Renegotiating terms for both new and running contracts ▪ Preserving our ability to seek further adjustments in the future as needed Current status ▪ We have reached agreements in more than 90%
Slide 5: Cost control measures
Cost control measures Build an even stronger position despite the challenging macro environment Y-o-Y Development Headcount and Organic sales Margin Focus ▪ Headcount − Y-o-Y headcount has increased by 9% while sales increased organically by 32% 32% ▪ Cost saving and footprint initiatives going acco
Slide 6: Q3'22 Financial Overview
Q3’22 Financial Overview Strong sales increase and profit recovery Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) 25% $70 $43 $2,302 $173 $232 5.6% Adj. $1,847 7.5% Adj. Op. Margin* $188 Op. Margin* $103 Q3’21 Q3’22 Q3’21 Q3’22 Q3’21 Q3
Slide 7: Q3'22 Sales Growth and Regional sales split
Q3’22 Sales Growth and Regional sales split Sales Bridge Sales by region Q3´22 US$ (Millions) % Europe China 24% 23% Asia Japan 42% 8% Americas Rest of Asia 34% 11% 32% Organic growth* (*) Non-US GAAP measure. October 21, 2022 ALV – Q3-2022 Earnings Call and Webcast Copyright Autoliv Inc., All Right
Slide 8: Q3'22 Organic Sales Growth - Outperforming global LVP by 4pp
Q3’22 Organic Sales* Growth - Outperforming global LVP by 4pp Organic Growth* vs. LVP** (Percentage points) EUROPE ALV vs. LVP JAPAN ALV vs. LVP 11 6 AMERICAS ALV vs. LVP CHINA 7 ALV vs. LVP 1 REST of ASIA ALV vs. LVP -2 (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) according to S&P Gl
Slide 9: Q3'22 Key Model Launches
Q3’22 Key Model Launches Ford Lightning Toyota Sequoia Nio ET5 BMW 7-series/ i7 Hyundai IONIQ 6 Haval A08 Hyundai Stargazer Xpeng G9 Honda CR-V October 21, 2022 ALV – Q3-2022 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 10: Q3'22 Financial Overview
Q3’22 Financial Overview (US$ Millions unless specified) Q3’22 Q3’21 Sales $2,302 $1,847 Gross Profit $383 16.7% $301 16.3% Adj. Operating Income1 $173 7.5% $103 5.6% EPS (assuming dilution) $1.21 $0.68 Adj. RoCE1,2 18% 11% Adj. RoE1,2 17% 10% Operating cash flow $232 $188 Dividend paid per share $0
Slide 11: Q3'22 Adj. Operating Income Bridge
Q3’22 Adj. Operating Income* Bridge Vs. prior year US$ Millions $70 220 $173 A result of our actions including price increases and cost saving activities as well as higher volumes. This was partly offset by inflationary pressure and cost for call-off volatility. $103 -96 -41 0 -13 (*) Non-US GAAP me
Slide 12: Cash Flow
Cash Flow Capex and D&A Reversing the negative effects on working capital from Q2 (US$ Millions unless specified) Q3´22 Q3’21 LTM 2021 2020 Net Income $106 $60 $384 $437 $188 Depreciation & Amortization 87 98 370 394 371 Cash Flow Other, net3 -51 -5 -135 -15 13 Change in operating WC 89 35 -52 -63 2
Slide 13: Supporting Increasing Shareholder Returns
…Supporting Increasing Shareholder Returns Value Creation Remains Core Shareholder Returns Over L4Y US$ Millions Share Repurchase Dividends ~$700 million in direct shareholder returns over the last 4 years 60 217 223 165 54 2019A 2020A 2021A LTM Q3´22 October 21, 2022 ALV – Q3-2022 Earnings Call and
Slide 14: Debt Leverage Ratio
Debt Leverage Ratio* Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ Millions 3.0 $2,000 2.5 $1,500 2.0 1.6x 1.5 $1,000 Long-Term Target: 1.0x 0.5-1.5x 1.0 Long-Term Range $500 0.5 0.0 Net Debt EBITDA Q3´19 Q3´20 Q3´21 Q3´22 ▪ Our Net Debt* decreased by $36M from Q2’22 ▪ EBITDA LTM inc
Slide 15: Strong liquidity position
Strong liquidity position Debt Maturities end of Q3´22* US$ Millions ▪ Significant liquidity cushion with $1.6 billion in cash and unutilized credit facilities as of September 30 600 ▪ Average interest rate for debt portfolio of around 4% ▪ Credit rating from S&P Global: BBB (stable) 500 ▪ Successfu
Slide 16: Our response to a potential shortage of energy
Our response to a potential shortage of energy The total energy use in 2021 was 943 GWh Cost items in relation to sales 2021 Share of energy use by source 2021 Other District 4% Heating 3% Other Freight & pkg ~2% Natural Gas Energy 27% ~1% Direct Material ~53% Labor (total) Electricity ~20% 66% Octo
Slide 17: Light Vehicle Production Outlook
Light Vehicle Production Outlook Light Vehicle Sales LTM (Million units) Near-term outlook is supported by continued strong performance in China and Rest of Asia North America In the third quarter, unplanned downtime related to a broad array of supply chain issues curbed production. The near-term pr
Slide 18: Business Outlook Q4'22
Business Outlook Q4’22 Operating Margin* Progression sequential improvement Adjusted Operating Margin* ▪ Expect Continued strong outperformance vs LVP % ▪ Anticipate sequential margins improvement 12% − LVP and engineering income seasonality 10% − Price increases to offset inflationary pressure − Co
Slide 19: Full Year 2022 Indications
Full Year 2022 Indications Full year indication LVP growth Around 6% Organic sales increase1 Around 15% FX Around negative 6% Upper end of Adjusted Operating margin1 around 6.0% to 7.0% Tax rate2 Around 30% Operating Cash flow2 Around $700 to 750 million Capex, net % of sales Around 5.5% (1) Non-US
Slide 20: October 21, 2022 ALV – Q3-2022 Earnings Call and Webcast
October 21, 2022 ALV – Q3-2022 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 21: 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 October 21, 2022 ALV – Q3-2022 Earnings Call and Webca