Slide 1: Earnings Call Presentation 2nd Quarter 2024
More Lives Saved More Life Lived Earnings Call Presentation 2nd Quarter 2024 July 19, 2024 July 19, 2024 ALV – Q2 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 2: Safe Harbor Statement
Safe Harbor Statement* This report 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 that A
Slide 3: Q2'24 Key Highlights – Increased profitability despite unchanged sales
Q2’24 Key Highlights – Increased profitability despite unchanged sales Profitability increased Year-over-Year and sequentially, despite lower net sales, driven by successful execution of cost reductions and pricing − Operating income affected by lower-than-expected sales and continued volatile LVP
Slide 4: Q2'24 Light Vehicle Market Development
Q2´24 Light Vehicle Market Development Q2´24 LVP Production according to S&P Global* Customer Call-off Accuracy** % % 100% 12% Normal 10% @April @July 8% 6% 4% 80% 2% 0% -2% -4% -6% 60% -8% (*) Light Vehicle Production (LVP) up to 3.5 tons according to S&P Global @ July 2024 (**) Company estimate Ju
Slide 5: Significant Sequential Cost Improvements
Significant Sequential Cost Improvements Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM Sales in relations to Average Headcount % US$ (Millions) and in relations to sales US$ (Millions) 300 11.0% 1,250 140 20% 120 250 10.0% 1,050 18% 100 200 9.0% 850 80 16% I
Slide 6: Q2'24 Financial Overview
Q2’24 Financial Overview Profit growth despite lower sales Consolidated Sales Adjusted Operating Income* Operating Cash Flow US$ (Millions) US$ (Millions) US$ (Millions) -1% 4% -$39 $221 $2,635 $2,605 $212 8.0% Adj. 8.5% Adj. $379 Op. Margin* Op. Margin* $340 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24 (*)
Slide 7: Q2'24 Sales Growth and Regional Sales Split
Q2’24 Sales Growth and Regional Sales Split Sales Bridge Sales by Region Q2´24 US$ (Millions) % China 18% Asia 37% Americas 34% Japan 8% Rest of Asia 11% Europe 29% 1% Organic growth* (*) Non-US GAAP measure July 19, 2024 ALV – Q2 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Res
Slide 8: Q2'24 Organic Sales Growth - Outperforming Global LVP
Q2’24 Organic Sales* Growth - Outperforming Global LVP by more than 1pp Outperformance - Organic growth* vs. LVP** EUROPE JAPAN +8pp AMERICAS CHINA +14pp -7pp -2pp Rest of ASIA Americas: We underperformed slightly, as some key customers reduced inventories +12pp Europe: Outperformance fueled by prod
Slide 9: Strengthening Our Position with Fast Growing Domestic Chinese OEMs
Strengthening Our Position with Fast Growing Domestic Chinese OEMs COEMs share of LVP and ALV sales Safety Content per Vehicle in China % In relations to total China $ 260 240 50% 220 40% 200 USD 180 30% 160 20% 140 120 10% 100 % of LVP % of ALV China sales COEMs Global OEMs Average July 19, 2024 AL
Slide 10: Q2'24 Key Model Launches - whereof six in China
Q2’24 Key Model Launches* - whereof six in China July 19, 2024 ALV – Q2 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 11: Q2'24 Sustainability Highlights
Q2´24 Sustainability Highlights Successfully phased-out the greenhouse gas Sulfur Autoliv and the UN Road Safety Fund (UNRSF) are hexafluoride (SF6), previously used for steering wheel collaborating to enhance motorcycle safety production Introduced airbag cushions made from 100% recycled Fu
Slide 12: Q2'24 Financial Overview
Q2’24 Financial Overview (US$ Millions unless specified) Q2’24 Q2’23 Sales $2,605 $2,635 Gross Profit $475 18.2% $447 17.0% Adj. Operating Income1 $221 8.5% $212 8.0% Adj. EPS (assuming dilution) $1.87 $1.93 Adj. RoCE1,2 22% 21% Adj. RoE1,2 26% 25% Operating cash flow $340 $379 Dividend paid per sha
Slide 13: Q2'24 Adjusted Operating Income Bridge
Q2´24 Adjusted Operating Income* Bridge vs. prior year $9 US$ Millions Operations Primarily driven by: cost saving activities commercial recoveries Partly offset by general cost inflation (*) Non-US GAAP excluding effects from capacity alignment and antitrust related matters July 19, 2024 ALV –
Slide 14: Cash Flow
Cash Flow Capex and D&A Continued strong performance from working capital and higher net income (US$ Millions unless Q2´24 Q2’23 LTM 2023 2022 specified) Net Income $139 $53 $627 $489 $425 Depreciation & Amortization 96 94 384 378 363 Other, net3 -23 2 -120 -119 -133 Change in operating WC 128 230 2
Slide 15: Trade Working Capital in Relation to Sales
Trade Working Capital in Relation to Sales 35% 30% 25% Since Q1´19 Trade WC has improved by ~$640M 20% 15% 0 10% 5% 0% Trade working capital Linear (Trade working capital) July 19, 2024 ALV – Q2 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 16: Debt Leverage Ratio
Debt Leverage Ratio* Improved despite continued high shareholder returns Net Debt * / EBITDA* Net Debt* and EBITDA* per the Policy Times US$ Millions 2.0 2,000 Net Debt EBITDA LTM 1.5 1.2x 0.5-1.5x 1,500 Long-Term Target: 1.0x Long-Term 1.0 Range 1,000 0.5 0.0 500 Q2´22 Q3´22 Q4´22 Q1´23 Q2´23 Q3´23
Slide 17: Strong Balance Sheet & Cash flow Supporting Shareholder Returns
Strong Balance Sheet & Cash flow Supporting Shareholder Returns Repurchased 7.8 million shares since the beginning of 2022 for almost $800 million under current mandate Shareholder Returns US$ Millions Share Repurchases Dividends 590 ~$1.7 billion in direct shareholder 352 $813 million returns over
Slide 18: Efficient Balance Sheet to Support Shareholder Returns
Efficient Balance Sheet to Support Shareholder Returns Return on Capital Employed1 Capital Turnover Rate2 % Times 25% 2.75 2.50 20% 5-year 5-year 2.25 average average 15% 2.00 1.75 10% 1.50 5% 1.25 0% 1.00 2019 2020 2021 2022 2023 Q1´24 Q2´24 2019 2020 2021 2022 2023 1) Annualized operating income a
Slide 19: Light Vehicle Production Outlook
Light Vehicle Production Outlook Autoliv expects global LVP to decline by ~3 % in 2024 Global Light Vehicle Production* (Million units) 24 -2.7% 23 -0.7% S&P Global: Light Vehicle Production* -5.5% 22 Q3´24 FY´24 0.1% Region 21 YoY Chg. Million Units Y-o-Y Chg. 20 China -7.0% 28.0 -0.2% Japan -3.2%
Slide 20: Business Outlook Second Half of 2024
Business Outlook Second Half of 2024 Normalization of LVP expected in Q3 based on latest production plans from Adjusted Operating Margin* Development customers % More favorable geographic LVP sales mix, based on the S&P Global’s forecast Expect continued outperformance vs LVP 12% Completion
Slide 21: Full Year 2024 Guidance
Full Year 2024 Guidance Based on global LVP declining ~3% (previous: decline ~1%) Full year Organic sales Around 2% (previous: ~5%) increase1 FX Around -1% (previous: ~0%) Exchange rates US$/EUR 0.9242 Adjusted Operating 157.07 Around 9.5 to 10.0% (previous: ~10.5%) US$/JPY margin1 US$/KRW 1385.9 Ta
Slide 22: Saving More Lives
Saving More Lives Saving More Lives July 19, 2024 ALV – Q2 2024 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public
Slide 23: Q2'24 Product Volumes
Q2´24 Product Volumes Autoliv Quantities Delivered Q2’24 vs. PY** (%) (Millions unless specified) Seatbelts 36.0 (4)% Pretensioners (of which) 24.6 (0)% Active Seatbelts (of which) 1.5 5% Frontal Airbags 15.3 (4)% Knee Airbags (of which) 1.8 (9)% Side Airbags 32.3 3% Chest (Thorax) 17.1 3%