Slide 1: Earnings Conference Call and Webcast
1st Earnings Conference Call and Webcast 1st Quarter 2018 Financial Results April 27, 2018 1 April 27, 2018 ALV – Q1-2018 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved 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: Q1'18 Highlights
Q1’18 Highlights Solid start to 2018 ahead of our expected step-up in organic sales growth ▪ Financial Performance − Organic Sales* growth 0.1% vs. guidance of <1%, ~1pp >LVP** − Adjusted Operating Margin* improved YoY* to 8.8%, in-line with guidance of ~9% − Adjusted EPS* $1.66, 1% better YoY inclu
Slide 4: Overall Market Conditions
Overall Market Conditions Major light vehicle markets remain mixed and uncertain FY’18 Light Vehicle Production ▪ Asia Region Millions of Vehicles YoY Chg. @ Apr 17th − China inventory** levels increased from Q4’17 however declined slightly YoY* China 27.3 3% for Q1’18 Japan 8.8 (2)% − The Q2’18 LVP
Slide 5: Electronics Segment Q1'18 Performance and FY'18 Outlook
Electronics Segment Q1’18 Performance and FY’18 Outlook ▪ Q1’18 − Organic sales* decline 4.1% YoY** while Active Safety increased ~6%, where of core Active Safety products** increased close to 10%, currency translation tailwind ~6% − Positive radar penetration rates and currency transaction effects
Slide 6: Passive Safety Segment Q1'18 Performance and FY'18 Outlook
Passive Safety Segment Q1’18 Performance and FY’18 Outlook ▪ Q1’18 − Organic sales* increase 1.4%, ~2pp better than LVP** − slower ramp-up on certain new programs, favorable mix on high value-add seatbelts − Currency translation tailwind ~8%, weaker US$ − RD&E, net improvement was mostly offset by c
Slide 7: FY'18 - Key Passive Safety Models
FY’18 - Key Passive Safety Models Contributing to the ramp-up of organic sales* growth Honda Accord Tesla Model 3 Infinity QX50 JOEM Honda Odyssey VW Polo Jeep Compass Ram Truck EU OEM Honda CR-V Nissan Qashqai / Rogue Hyundai Genesis G70 Jeep Wrangler These models are anticipated to contribute ~$0.
Slide 8: Q1'18 Financial Overview
Q1’18 Financial Overview Record sales and gross profit for any quarter (US $ Millions unless specified) 2018 2017 Sales $2,813 $2,608 Gross Profit $579 20.6% $543 20.8% Operating Income* $247 8.8% $220 8.4% EPS* (assuming dilution) $1.66 $1.65 RoCE* 20% 20% RoE* 13% 14% Operating cash flow $16 $149
Slide 9: Operating Income and Margin Bridge Q1'18 vs. Prior Year
Operating Income* and Margin* Bridge Q1’18 vs. Prior Year Q1’18 vs. Prior Year (40 bps higher) Adjusted Operating Margin of 8.8% includes ~30 bps increase in RD&E, net vs. Prior Year (*) Non-US GAAP measures exclude costs for capacity alignments, antitrust related matters and separation of our busin
Slide 10: Q1 Product Volumes
Q1 Product Volumes Strong volume growth in high value-added Seatbelts Autoliv Quantities Delivered 2018 vs. PY** (%) (Millions unless specified) Seatbelts 38.9 0% ▪ Pre-tensioners (of which) 19.1 1% ▪ Active Seatbelts (of which) 1.4 21% Frontal Airbags 13.9 3% ▪ Knee Airbags (of which) 1.5 (2)% Side
Slide 11: Cash Flow
Cash Flow Investments for growth and shareholder returns (US $ Millions unless specified) Q1’18 Q1’17 LTM* 2017 2016 2015 2014 2013 Net Income 122 142 283 303 562 458 469 490 Depreciation & Amortization*** 110 115 655 660 383 319 305 286 Other, net 7 (26) 5 (27) 1 0 42 43 Change in operating WC** (2
Slide 12: Financial Outlook
Financial Outlook FY indication update Passive Safety Electronics FY’18 Indication Segment Segment** Sales Organic* >10% ~(3)% Exchange rates*** FY’18 EUR / US$ 1.2342 Acquisitions - - US$ / JPY 107.18 Fx*** ~4% ~3% US$ / KRW 1,071 US$ / MXN 18.35 Consolidated Sales, net ~14% ~0% US$ / CNY 6.30 Unde
Slide 13: SpinCo – Veoneer Combined Financial Statements
SpinCo – Veoneer Combined Financial Statements** Key Figures 2017 Income Statement (bridge from Segment to Standalone) US$ Millions (except where specified) 2017 ▪ P&L Effect Sales $2,322.2 − SpinCo (Veoneer) Combined Financial Statements are based on a derived “Carve-out” of a standalone business f
Slide 14: Spin-off of Electronics Business - Veoneer
Spin-off of Electronics Business - Veoneer Preparations continue for “Tax-free Spin-off” ▪ Veoneer spin-off is expected to be completed in time for trading of Veoneer to begin early in the third quarter of 2018 ▪ Leadership team - announced March 2018 ▪ Internal reorganization to implement new legal
Slide 15: Each year, Autoliv's products save over 30,000 lives
Each year, Autoliv’s products save over 30,000 lives autoliv.com