Autoliv, Inc. · NYSE:ALV

Autoliv — Non-Deal Roadshow (May 2014)

36 slides from Autoliv's roadshow presentation, May 19, 2014

  1. Slide 1: Autoliv China Presentation – Investors Visit

    Autoliv China Presentation Investors Visit Autoliv China President Arthur Blanchford May 19th, 2014 © Autoliv Inc., All Rights Reserved

  2. Slide 2: Every year our products save over 30,000 lives

    Every year our products save over 30,000 lives and prevent ten times as many severe injuries ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 2 © Autoliv Inc., All Rights Reserved

  3. Slide 3: 60 Years of Innovation

    60 Years of Innovation 1956 Seatbelt 1989 Pretensioner 1995 Knee Airbag 1953 1980 Airbag 1994 Side Airbag 2012 Pedestrian 2008 Pedestrian 2005 Pedestrian Protection Airbag Warning Protection 2012 1998 Side Curtain 2006 Active Seatbelt Airbag ALV-/v1.0 2014/ALV China General Presentation 2014 – Page

  4. Slide 4: China Economy Overview

    China Economy Overview  2014 Q1 Economy  GDP growth slowing down but still roughly meeting expectations  GDP growth is 7.4% for 2014 Q1 (2011: 9.3%; 2012: 7.8%; 2013: 7.7% )  FY GDP growth is forecasted at 7.5% by government  Inflation is currently not a concern  CPI for 2014 Q1 is 2.4% (2013:

  5. Slide 5: Auto Market Development (Million units)

    Auto Market Development (Million units) 2011 – 2018 China LVP Growth 2018FC 27,4 2017FC 26,4 2016FC 25 2015FC 23,3 2014FC 21,6 2013AC 20,9 LVP YoY 14.7% 2012AC 18,2 2011AC 17,1 0 5 10 15 20 25 30 • Forecast from government and OEMs are around 8% annually. * Data Sources: CAAM (AC) & IHS (FC) ALV-/v1

  6. Slide 6: Still Higher Growth Expected in Coming Years

    Still Higher Growth Expected in Coming Years 160 148 136 140 PV Ownership per 1000 People 123 120 110 97 100 1st Rapid Growth Period 2nd Rapid Growth Period 85 73 80 65 54 60 44 34 40 22 26 18 Forecast 9 11 14 20 3,9 4,4 5,4 Actual 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2

  7. Slide 7: KQ Index vs. LV Sales vs. GDP

    KQ Index vs. LV Sales vs. GDP KQ Index 2014 Jan 6.6% 2014 Feb 5.8% 2014 Mar 6.0% GDP YTD YoY% 7.4% LV Sales YTD YoY% 6.0% 10.6% 9.2% PV sales YTD YoY% 10.8% 15.2% 14.1% KQ index/ GDP LV/PV Sales 30% KQ Index GDP YTD YoY% LV Sales YoY% PV Sales YoY% 140,0% 120,0% 25% 100,0% 20% 80,0% 60,0% 15% 40,0%

  8. Slide 8: 2014 Apr Production & Sales

    2014 Apr Production & Sales (Unit: ‘000) 2014 Apr 2014 Apr 2014 Apr YTD 2014 Apr YTD Production Sales Production Sales Volume YoY% Volume YoY% Volume YoY% Volume YoY% Total Vehicle Market 2,068 8.8% 2,004 8.8% 7,953 9.0% 7,925 9.1% Light Vehicle 1,943 9.5% 1,878 9.5% 7,501 9.0% 7,498 9.2% Passenger

  9. Slide 9: Light Vehicle (Unit: '000)

    Light Vehicle (Unit: ‘000) 2500 LV Production 100% 80% 2000 60% 1500 40% 1000 20% 0% 500 ‐20% 0 ‐40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Monthly 1871 1280 1955 1773 1666 1574 1502 1594 1825 1821 2025 2021 2014 Monthly 1954 1548 2061 1943 2014 MoM% ‐20,8% 33,1% ‐5,7% 2014 Monthly YoY

  10. Slide 10: LV MS% - By Brand Region

    LV MS% - By Brand Region Production Production 2013 FY 2014 Apr YTD US US; 19.67% 18,83% (+0.84%) CN CN; 37.54% 39,06% (-1.52%) KR KR; 7,60% 7.60% (0.00%) JP; 15,12% JP 14.04% (-1.08%) EU EU; 21.15% 19,39% (+1.76%) Sales Sales 2013 FY 2014 Apr YTD US US; 19.59% 18,73% (+0.86%) CN CN; 37.10% 39,40% (

  11. Slide 11: LV MS% - By OEM

    LV MS% - By OEM Production Production 2013 FY 2014 Apr YTD O JP O EU O JP, 2.59% O EU, 2.13% 2,60%1,90% VW (-0.01%) (+0.23%) VW, 16.01% 14,82% (+1.19%) O CN, 20.39% O CN (-2.81%) 23,20% GM 15,25% GM, 15.90% (+0.65%) PSA, 3.00% (+0.33%) PSA Great Wall, 2,67% 3.26% Great Wall (-0.37%) 3,63% Honda, 3.6

  12. Slide 12: Key OEM LV Sales

    Key OEM LV Sales (Unit: ‘000) 2014 Apr YTD sales YoY % Total Growth% 1400 50% Thousands 42% 1254 37% 40% 1182 1200 30% 23% 24% 22% 1000 16% 20% 13% 10% 10% 10% 9% 10% 800 10% ‐1% 583 ‐3% 0% 600 ‐8% ‐7% ‐9% 440 ‐10% 400 ‐18% 313 290 290 287 287 247 ‐25% ‐33% ‐20% 230 227 184 162 200 146 138 135 126 1

  13. Slide 13: MS% - By Segment

    MS% - By Segment LV 2013 FY Sales LV 2014 Apr YTD Sales by Segment by Segment LCV, LCV 20.64% 21,44% (-0.79%) MPV MPV, 8.34% 6,29% (+2.05%) Sedan, 55.30% Sedan (-2.57%) 57,87% SUV SUV, 14,40% 15.72% (+1.32%) PV 2013 FY Sales PV 2014 Apr YTD Sales by Segment MPV, by Segment MPV C C, 2.27% 10.51% 8,01

  14. Slide 14: JP PV Sales Trend

    JP PV Sales Trend 400 Thousands 350 365 339 300 282 272 268 265 288 285 275 250 248 250 227 233 249 243 238 232 242 235 230 2012 200 226 217 2013 202 184 181 2014 150 165 138 100 104 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 14 © A

  15. Slide 15: 2014 Inventory Index

    2014 Inventory Index 2013 2014 Normal Level: 0.8~1.2 Critical Level: 1.5 2,33 2,01 1,68 1,63 1,58 1,53 1,38 1,46 1,35 1,38 1.5 1,29 1,19 1,10 0,97 1,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * Inventory Index = Auto Dealers monthly Inventory/Sales * Data Source: CADA (China Automobile Deale

  16. Slide 16: 2014 Inventory Index by Customer Segment

    2014 Inventory Index by Customer Segment 2014 Feb 2014 Mar OEM’s Index higher than 2.5 3,95 3,57 3,30 3,15 3,19 2,79 2,54 2,52 2,18 1,79 1,30 1,18 JV Import COEM Geely FIAT Roewe JLR KIA Chery * Data Source: CADA (China Automobile Dealers Association) ALV-/v1.0 2014/ALV China General Presentation 20

  17. Slide 17: Vehicle Inventory Alert Index

    Vehicle Inventory Alert Index - 12-month round Normal Level: Below 50% Critical Level: Above 50% 70% 60% 58,2% 56,1% 53,2% 50,4% 50% 48,2% 46,7% 50,5% 51,3% 44,8% 44,5% 48,0% 40,0% 40% 30% 2013 May Jun Jul Aug Sep Oct Nov Dec 2014 Feb Mar Apr Jan * Data Source: CADA (China Automobile Dealers Associa

  18. Slide 18: ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 18 © Autoliv Inc., All Rights

    ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 18 © Autoliv Inc., All Rights Reserved

  19. Slide 19: Autoliv in China

    Autoliv in China History Autoliv Operations in China 2013 CNF/CNC – Autoliv Texile & Cushion plant 2013 1 Headquarter ACP - Autoliv China Propellent Campus 2012 ACC new plant inaugurated 1 Technical Center 2011 NHA new plant inaugurated 2010 12 Manufacturing Plants Changchun In-House Airbag Cushion

  20. Slide 20: Autoliv China Organization

    Autoliv China Organization President ACE Arthur Blanchford Quality, Operation Operation Operation Capital Projects and Purchasing Sales Engineering Finance HR Logistics & APS Airbag Seatbelt SWIP Footprint Strategy Vincent Zhang Fredreric Burguez Paul Li Jennifer Cheng Hao Qian Olivia Zhao Andrew La

  21. Slide 21: Headcounts Development

    Headcounts Development 12000 10000 797 ACE TCH 674 8000 580 552 6000 449 8893 8178 4000 333 6954 223 6342 200 5084 2000 3748 3055 2790 2019 978 515 691 180 185 310 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Forecast ALV-/v1.0 2014/ALV China General Presentation 2014

  22. Slide 22: Yearly Employee Resignation

    Yearly Employee Resignation Professional staff 25,00% resignation decreased 26% to 7.4% in 2013 20,00% 19,50% 15,00% 13,70% Market Data 13,40% 13,60% 12,80% 13,00% 10,72% 10,72% 10,50% 10,00% 9,10% 5,00% 0,00% Autoliv All Industries - Manufacture 2009 2010 2011 2012 2013 ALV-/v1.0 2014/ALV China Gen

  23. Slide 23: Autoliv China Sales (MUSD)

    Autoliv China Sales (MUSD) 1600 1405 2013 ALV Global Sales 1400 1200 1098 Europe 982 33% 1000 China 16% 813 800 600 Japan 484 8% 400 290 ROW Americas 10% 200 33% 0 2008 2009 2010 2011 2012 2013 Actual ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 23 © Autoliv Inc., All Rights Reserved

  24. Slide 24: 2013 Best Selling Models with Autoliv Products

    2013 Best Selling Models with Autoliv Products SGMW Hongguang SVW Lavida FAW-VW Sagitar FAW-VW Jetta (1) / AB, SB, SW, EL (2) / SB (5) / SB (6) / SB SGM Cruze Ford Focus FAW-VW Bora SVW Passat (7) / AB, SB, EL (8) / AB, SB (9) / SB (10) / SB Haval H6 SVW Tiguan Hyundai Verna Geely Emgrand (11) / AB,

  25. Slide 25: 2014 Major Launches

    2014 Major Launches Geely EC7 Haval H8 SGM Cruze AB, SB, SW, EL AB, SB, SW, EL AB, SB, EL Nissan X-Trail SGMW CN200 DPCA 2008 AB, EL AB, SB, SW, EL AB, SB, SW, EL Honda Odyssey SVW Octavia MQB Ford Focus AB, EL SB AB * All model pictures are only for reference here and the final pictures subject to

  26. Slide 26: Leading Market Position in Passive Safety

    Leading Market Position in Passive Safety Global 1 Europe 1 North America 1 Japan 12 China 1 0% 20% 40% 60% Autoliv’s share ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 26 © Autoliv Inc., All Rights Reserved

  27. Slide 27: CTC State-of-the-Art Testing Capabilities

    CTC State-of-the-Art Testing Capabilities  Complete development capability and experience of restraint system and products • CAD & CAE • Sled test • Full scale crash test • Restraint system products test  Part of Autoliv global research and development capabilities ALV-/v1.0 2014/ALV China General

  28. Slide 28: China Technical Center (CTC)

    China Technical Center (CTC)  Largest tech center(TC) in ALV in terms of projects quantity (417), customer diversity  Now leading global projects and 1st in ALV to develop IC meeting Ford specification for Anti-Twist  1st TC to launch Autoliv’s latest SW design, ASW 5  China: The most demanding

  29. Slide 29: Zero-Defect Policy

    Zero-Defect Policy Design robust products Buy flawless components Manufacture flawless products Verify conformity of products Product Supply Base Production Mistake Development System Proofing Zero Defect means no customer PPM, no rework, no reprocess, no reject, no bad component reaching the produc

  30. Slide 30: Excellent Customers PPM

    Excellent Customers PPM 18 17 16 14 14 12 10 8 6 6 4 3 3 2 2 1 1,2 0 2007 2008 2009 2010 2011 2012 2013 2014 Mar YTD Customer PPM ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 30 © Autoliv Inc., All Rights Reserved

  31. Slide 31: Major Customer Awards for 2013

    14 Major Customer Awards for 2013 (And a Shingo Prize) Customer name Award name When Where SGMW Excellent supplier 19th Dec. 2013 Guilin, Guangxi BYD Quality Assurance 2014.3.18 ACI ZNA郑州日产 (Nissan) Best logistics 2014.1 Guangzhou NCIC日产中国 (Nissan) Best logistics 2014.2 Shanghai NCIC日产中国 (Nissan) Be

  32. Slide 32: Q5 - Autoliv Employees with Quality in Focus

    Q5 - Autoliv Employees with Quality in Focus Q5 is the journey which will shape an Autoliv culture leading to zero defects and best value for all our customers  Reduce risk for critical quality issues and ”near misses”. Drive toward zero customer issues and zero defects  Provide customers with pro

  33. Slide 33: Current Focus and Challenges

    Current Focus and Challenges Developing Sustainable Capacity – Top issue and focus  Human Capital  Working on hiring needed workers and management  1.1 Jobs for every worker in China today and cost increasing 10-15% p.a.  Current Capital Investments  Several New Plants and Major Expansions this

  34. Slide 34: Growth in China - Vertical Integration for Sustainable Capacity

    Growth in China - Vertical Integration for Sustainable Capacity 1990 Seatbelts Production 2006 Steering Wheels Production 2010 Cushions in-house 1999 Airbags Production 1990 1995 2000 2005 2010 2014 2013 1996 Gas Generants Webbing Production Production 2004 Inflators Production Electronics Productio

  35. Slide 35: Investments for Growth - Fusion of Active and Passive Safety

    Investments for Growth - - Fusion of Active and Passive Safety Technologies ACTIVE PASSIVE SAFETY SAFETY RADAR SAFETY DOMAIN CONTROLLER PEDESTRIAN AIRBAG LRR Narrow Band Brake Controls Integration Multi‐Mode with Airbag ECU NIGHT VISION Automatic Animal Detection KNEE AIRBAG Dynamic Spot Light Senso

  36. Slide 36: Autoliv - Safety Systems

    Autoliv - Safety Systems Active Safety Autoliv Every year, Autoliv’s products save over 30,000 lives The Worldwide Leader in Automotive Safety Systems Passive Safety ALV-/v1.0 2014/ALV China General Presentation 2014 – Page 36 © Autoliv Inc., All Rights Reserved

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