Slide 1: Autoliv Earnings Call Presentation 3rd Quarter 2021
Autoliv Earnings Call Presentation 3rd Quarter 2021 1 October 22, 2021 ALV – Q3-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved
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´21 Highlights
Q3´21 Highlights Dramatic changes in the light vehicle market LVP Outlooks & Actuals for Q3´21 by IHS Markit 10% January July Actual 5% 0% -5% -10% -15% -20% -20% -25% -30% Europe Americas Japan China Global 3 October 22, 2021 ALV – Q3-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Right
Slide 4: Q3´21 Highlights cont’d
Q3´21 Highlights cont’d Solid sales outperformance vs. global LVP ▪ Market developments • Resource bottlenecks in global supply chains limits industry volumes more than expected • Unpredictable changes in customer call-offs creating operational challenges and inefficiencies ▪ Operating income declin
Slide 5: Q3´21 Financial Overview
Q3´21 Financial Overview Massive drop in LVP and low call-off visibility limited our operating efficiency Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) -9% -$103 -$164 $2,037 $352 $206 $1,847 10.1% Adj. Op. Margin* $188 $103 5.6% Adj.
Slide 6: Q3’21 Sales Growth
Q3’21 Sales Growth Outperforming global LVP by 8 percentage points Organic Growth* vs. LVP** (percentage points) EUROPE ALV vs. LVP JAPAN ALV vs. LVP 16 15 AMERICAS ALV vs. LVP CHINA 7 ALV vs. LVP REST OF ASIA 6 ALV vs. LVP 6 (*) Non-US GAAP measure (**) Light Vehicle Production (LVP) according to I
Slide 7: Q3’21 - Key Model Launches
Q3’21 - Key Model Launches Fiat Pulse Strengthening our EV & PHEV exposure Jeep Grand Wagoneer Rivian R1T Kia Sportage Nissan Frontier Toyota Corolla Cross WEY Latte VW Taigo Toyota Aqua 7 October 22, 2021 ALV – Q3-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved
Slide 8: Q3´21 Financial Overview
Q3´21 Financial Overview (US $ Millions unless specified) Q3’21 Q3’20 Sales $1,847 $2,037 Gross Profit $301 16.3% $400 19.6% Adj. Operating Income1 $103 5.6% $206 10.1% EPS (assuming dilution) $0.68 $1.12 Adj. RoCE1,2 11% 22% Adj. RoE1,2 10% 25% Operating cash flow $188 $352 Dividend paid per share
Slide 9: Q3´21 Adj. Operating Income Bridge
Q3´21 Adj. Operating Income* Bridge vs. Prior Year $103M $ (millions) ~25% leverage (excl. FX, raw mtrl and gov. support) $206M on the organic sales change, impact from increased call-off volatility and cost inflation related to logistics 4M and utilities etc. -37M -10M -4M $103M -56 M (*) Non-US GA
Slide 10: Continued strict cost control
Continued strict cost control LVP Outlooks & Actuals for Q3´21 by IHS Markit ▪ Margin Focus • General hiring freeze ✓ Reduced headcount by over 4,500 since Q1´21 • Accelerate cost saving and footprint initiatives ✓ Capacity alignment activities ongoing in North America and Europe • Use short time la
Slide 11: Headwinds from Raw Materials
Headwinds from Raw Materials IHS Markit: Hot-rolled sheet steel ▪ Raw material prices have continued to increase ▪ New headwinds including magnesium and resin for example US China ▪ Through successful mitigation actions, the raw material headwind in the third quarter was slightly lower than expected
Slide 12: Cash Flow
Cash Flow Capex and D&A (US$ Millions unless specified) Q3’21 Q3’20 LTM 2020 Net Income $60 $99 $511 $188 Depreciation & Amortization 98 93 400 371 Other, net -5 23 61 13 Change in operating WC 35 138 -65 277 Operating cash flow 188 352 906 849 Capital Expenditures, net -112 -76 -412 -340 Cash Conve
Slide 13: Leverage Ratio
Leverage Ratio In line with long-term target Net Debt*/ EBITDA* Net Debt* and EBITDA* per the Policy x US$ (Millions) $2,000 3.0 2.5 $1,500 2.0 $1,000 1.5 1.1x 0.5-1.5x Long-Term Target: 1.0x Long-Term 1.0 Range $500 0.5 Net Debt EBITDA 0.0 Q3´18 Q3´19 Q3´20 Q3´21 ▪ Our Net Debt* decreased by $42M f
Slide 14: Light Vehicle Production Outlook
Light Vehicle Production Outlook Light Vehicle Sales LTM (Million units) Heightened disruption continues through third quarter with little visibility of improvement FY21: North American Continued strong demand for new vehicles. However, the industry continues to struggle to meet consumer demand due
Slide 15: Revised full year 2021 Indications
Revised full year 2021 Indications Full year indication LVP growth ~0% Exchange rates3 FY’21 Consolidated sales increase, net Around 11% EUR / US$ 1.1939 Organic sales increase1 Around 8% US$ / JPY 108.77 Org. sales outperformance vs. LVP Around 8 pp US$ / KRW 1136 US$ / MXN 20.11 FX Around +3% US$
Slide 16: Capital Markets Day 2021
Virtual Capital Markets Day 2021 16 October 22, 2021 ALV – Q3-2021 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved
Slide 17: Each year, Autoliv’s products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com
Slide 18: Q3´21 Product Volumes
Q3´21 Product Volumes Outperforming LVP with all product types Autoliv Quantities Delivered Q3´21 vs. PY** (%) (Millions unless specified) Seatbelts 28.8 -15% ▪ Pretensioners (of which) 17.5 -14% ▪ Active Seatbelts (of which) 1.2 -18% Frontal Airbags 11.6 -12% ▪ Knee Airbags (of which) 1.4 -5% Side
Slide 19: 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 19 October 22, 2021 ALV – Q3-2021 Earnings Call and We