Slide 1: 4th Quarter Financial Results
Earnings Conference call Webcast 4th Quarter Financial Results January 29, 2016 Saving More Lives 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: Recap - 2015
Recap - 2015 Executing towards our end of decade targets Growth and Margins • Strong organic sales* growth 8%, >5 times better than LVP*, Active Safety ~31% • Adjusted operating margin* 9.7%, 60 bps better YoY with an adjusted EPS $6.65, increase YoY 12% • M&A including the Volvo IP*, MACOM automo
Slide 4: Looking ahead – 2016
Looking ahead – 2016* Executing towards our long-term plan Growth and Margins • Organic sales* growth ~5%, ~2pp better than LVP** • Adjusted operating margin* >9% Capital Structure • Strong balance sheet for an volatile, mixed and uncertain macro environment • Operating cash flow ~$0.8B, excludi
Slide 5: Active Safety Update
Active Safety Update Expanding our portfolio for Real Life Safety Launched 4 key new technologies 600 Active Safety Sales • Stereo and Mono Vision, Radar, ADAS ECU* on the (US $ Millions) new Mercedes E-Class 400 Customer launches during Q4’15 • Radar – Chevy Camaro and Malibu, Honda Elysion, 20
Slide 6: China Market Uncertainty Continues
China Market Uncertainty Continues Light vehicle growth is slowing Market ALV OEM Sales in China 18 • LVP* growth ended very strong ~13% in Q4’15, 1,600 15 boosted by incentives and low interest rates 1,200 US $ Millions 12 % of ALV Sales • Inventory** at year end were at acceptable 9 800 levels 6
Slide 7: Market Conditions
Market Conditions Macro environment remains very mixed and uncertain Asia FY’16 LVP * Vehicles (Mil’s) • Strong rebound in China sales** since Sept 2015, Region YoY Chg. China 24.0 +6% LVP* increase 5% for Q1’16 YoY Japan 8.7 +2% • Japan LVP roughly flat for Q1’16 YoY RoA 12.6 +2% • RoA LVP declin
Slide 8: Major Launches during 2016
Major Launches during 2016 with our Passive and Active Safety Products Mercedes E-Class Honda Odyssey Audi A5 Honda CR-V Volvo S90 Hyundai Grandeur VW Tiguan Ford F-Series Super Duty Chrysler Pacifica Autoliv Electronics products on all of these models ALV Q4’15 Earnings Release Presentation - 8 Cop
Slide 9: Q4'15 Highlights
Q4’15 Highlights Record sales and operating profit, better than expected Financial Performance • Organic sales* growth 13.4%, ~9pp better than LVP** • Operating margin* 11.1%, ~1pp better YoY** • EPS* $2.08, ~15% better YoY** • Record operating cash flow $321M • RoCE* ~29%, RoE* ~21% Shareholder
Slide 10: Strong Volume Growth
Strong Volume Growth Unit growth exceeds LVP* in essentially all product areas Autoliv Quantities Delivered Q4’15 vs. PY (Millions unless specified) Seatbelts 38.5 4% • Pretensioners (of which) 18.5 19% • Active Seatbelts (of which) 0.9 12% Frontal Airbags 12.9 7% • Knee Airbags (of which) 1.4 2% Si
Slide 11: Strong Performing Models
Strong Performing Models Contributing to overall net organic sales* growth in Q4’15 Mercedes GLE Hyundai Tucson Honda Civic Ford F-Series KIA Sportage Baojun 560 Jeep Cherokee Mercedes C-Class Volvo XC90 Q4’15 Active Safety organic sales* growth ~29%, Autoliv Electronics products on all of these mod
Slide 12: Q4 Financial Overview
Q4 Financial Overview Record financial performance in most measures (US$ Million’s unless specified) 2015 2014 Sales $2,520 $2,354 Gross Profit $521 20.7% $468 19.9% Operating Income* $279 11.1% $237 10.1% EPS* (assuming dilution) $2.08 $1.81 RoCE* 29% 26% RoE* 21% 18% Operating Cash flow $321 $229
Slide 13: Operating Income and Margin Bridge
Operating Income and Margin* Bridge Q4’15 vs. Guidance and Prior Year Q4’15 vs. Guidance (60 bps better) Q4’15 vs. Prior Year (100 bps better) Strong operating margin* 11.1% (*) Non-US GAAP measures exclude costs for capacity alignments and antitrust related matters. ALV Q4’15 Earnings Release Prese
Slide 14: FY'15 Financial Overview
FY’15 Financial Overview Solid financial performance (US$ Million’s unless specified) 2015 2014 Sales $9,170 $9,240 Gross Profit $1,844 20.1% $1,804 19.5% Operating Income* $893 9.7% $842 9.1% EPS* (assuming dilution) $6.65 $5.93 RoCE* 24% 24% RoE* 17% 14% Operating Cash flow $751 $713 Dividend** $2
Slide 15: Segment Reporting FY'15
Segment Reporting FY’15 Organic Operating Margin CapEx D&A Sales 2015 2014 2015 2014 2015 2014 Growth * Passive Safety *** 6.9% 8.8% 7.7% 5.3% 5.0% 3.5% 3.3% Airbags 8.9% Seatbelts 3.2% Electronics *** 12.9% 4.1% 5.1% 3.3% 4.3% 3.1% 3.0% Passive Safety Electronics 5.1% Active Safety 30.5% Autoliv Gr
Slide 16: Cash Flow
Cash Flow Investments for growth and shareholder returns (US$ Million’s unless specified) Q4 Q4 FY FY FY FY FY 2015 2014 2015 2014 2013 2012 2011 Net Income 186 148 458 469 490 486 627 Depreciation & Amortization 90 77 319 305 286 273 268 Other, net 12 21 0 42 43 10 38 Change in operating WC * 33 (1
Slide 17: Looking Ahead Q1'16 Guidance
Looking Ahead Q1’16 Guidance* Sales • YoY organic sales** increase >10% - Mainly related to strong growth in all major regions, Active Safety and the inflator replacement business • Sequential consolidated sales decline ~8% - Mainly due to the seasonality effects and lower inflator replacement bus
Slide 18: Looking Ahead FY'16 Indication
Looking Ahead FY’16 Indication* Sales • YoY organic sales** increase ~5% - Mainly related to strong growth in Europe, China and Active Safety • YoY currency translation effect ~(3)% - Primarily due to the continued strengthening of the US$ Operating Margin** >9% • YoY - Positive effects from org
Slide 19: Financial Outlook
Financial Outlook* Q1’16 FY’16 Sales Organic** >10% ~5% Acquisitions / (Divestitures) <1% ~0.5% Fx*** >(4)% ~(3)% Consolidated Sales, net ~7% >2% Operating Margin** ~8.5% >9% Exchange rates*** Q1 2016 FY 2016 EUR / US$ 1.0873 1.0879 US$ / JPY 117.98 117.90 US$ / KRW 1208 1211 US$ / MXN 17.86 17.92 U
Slide 20: Every year, Autoliv's products save over 30,000 lives
Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries ALV Q4’15 Earnings Release Presentation - 20 Copyright Autoliv Inc., All Rights Reserved