Autoliv, Inc. · NYSE:ALV

Autoliv — Investor Day (October 2015)

43 slides from Autoliv's investor day presentation, October 2015

  1. Slide 1: Welcome

    Welcome Thomas Jönsson October 1 and 2, 2015

  2. Slide 2: 2015 CMD Program

    2015 CMD Program Real Life DAY 1 AstaZero Safety Lindholmen DAY 2 Conference Centre Jan Carlson DIRECTION Johan Löfvenholm Svante Mogefors George Chang Frank Meltzer TECHNOLOGY QUALITY PASSIVE SAFETY ELECTRONICS CONCLUDING PANEL DISCUSSION ACTIVE DEMO & Steve Fredin Mats Wallin EXHIBITION SALES FINA

  3. Slide 3: CMD Program

    2015 October 1 11:00 Bus transportation from hotel or Landvetter Airport to AstaZero, active safety test area October 2 08:05 Opening CMD Day 2 – Thomas Jönsson, Group VP Communications CMD Program 08:10 Quality – Svante Mogefors, 12:00 Registration & lunch at AstaZero Group VP Quality 12:45 Opening

  4. Slide 4: Capital Markets Day Press Release

    Capital Markets Day Press Release 4 Copyright Autoliv Inc., All Rights Reserved

  5. Slide 5: Autoliv's Strategy and Targets

    Autoliv’s Strategy and Targets Jan Carlson October 1

  6. Slide 6: 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

  7. Slide 7: Copyright Autoliv Inc., All Rights Reserved

    7 Copyright Autoliv Inc., All Rights Reserved

  8. Slide 8: Saving Lives and Creating Value

    Saving Lives and Creating Value Customers Owners & Business Creditors Partners VALUE Family & Employees Society 8 Copyright Autoliv Inc., All Rights Reserved

  9. Slide 9: It starts with me

    It starts with me 9 Copyright Autoliv Inc., All Rights Reserved

  10. Slide 10: We Save More Lives while Creating Value

    We Save More Lives while Creating Value Human lives saved by our products … additionally they prevent ten times as many severe injuries 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2014 Target 10 Copyright Autoliv Inc., All Rights Reserved

  11. Slide 11: We Save More Lives while Creating Value

    We Save More Lives while Creating Value $3.9B returned to our shareholders through dividends and repurchases* … total shareholder returns of ~250%** since 1997 Share price development, $ 800 140 Share Repurchase 120 Dividend 600 100 US $ (Millions) 80 400 60 40 200 20 0 0 1997 '99 2001 '03 '05 '07 '

  12. Slide 12: Corporate Social Responsibility

    Corporate Social Responsibility As One Autoliv, our Corporate Social Responsibility strategy is to reduce our impact on the environment, develop sustainable products, operate ethically, and be an employer of choice for our employees. 12 Copyright Autoliv Inc., All Rights Reserved

  13. Slide 13: Our Guiding Principles

    Our Guiding Principles OUR VISION OUR MISSION OUR VALUES Saving To be the One Autoliv leading supplier more of Safety Systems Transparent lives for the Future Car, Innovative well integrated Agile with Autonomous Driving 13 Copyright Autoliv Inc., All Rights Reserved

  14. Slide 14: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead Relentless focus on Operational Excellence Zero Defects by flawless execution One Product One Process to improve cost effectiveness and robustness Innovation to lead industry in Real Life Safety 14 Copyright Autoliv Inc., All Rights Reserved

  15. Slide 15: Our Transformation in a World of Change

    Our Transformation in a World of Change 15 Copyright Autoliv Inc., All Rights Reserved

  16. Slide 16: Industry Pioneer with Strong Heritage

    Industry Pioneer with Strong Heritage More than 60 years of innovation in Automotive Safety MECHANICAL PYROTECHNICAL ELECTRONICS DIGITAL 1950s 1980s 1990s 2000s 2010s 16 Copyright Autoliv Inc., All Rights Reserved

  17. Slide 17: Building For the Future - China

    Building For the Future - China Still the global growth engine long-term China Sales Development of the LVP 63,6% forecast for 2015 1 522 12% 1 406 9% 1 098 US $ (Millions) 982 6% ` -5 pp 813 25,7% 3% 13,4% 9,4% 8,2% 0% Q1 Q2 Q3 Q4 FY -3% 2010 2011 2012 2013 2014 -6% January ´15 September ´15 Source

  18. Slide 18: Building For the Future - China

    Building For the Future - China Still the global growth engine long-term China: ’14 -’19 LVP CAGR 4.8% 500 30 000 25 000 400 CPV ($) 20 000 China 300 15 000 200 10 000 100 5 000 Population 0 0 -10 000 0 10 000 20 000 30 000 40 000 50 000 60 000 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15E'16E'17

  19. Slide 19: Creating a Leader in Active Safety

    Creating a Leader in Active Safety Strong Growth Leading Products Strategic Transactions 600 100% +87% 500 +75% 80% 489 US $ (Millions) 400 +57% 60% 300 345 +44% +38% ` 40% 200 218 160 20% 100 85 0 0% 2010 2011 2012 2013 2014 19 Copyright Autoliv Inc., All Rights Reserved

  20. Slide 20: Autoliv Today

    Autoliv Today* A global leader in Automotive Safety with a well-balanced customer mix Others Local Chinese OEM’s 2% 2% 4% 2% 12% 3% 4% 11% 5% 5% 6% 12% 7% 10% 8% 8% (*) YTD June 2015 20 Copyright Autoliv Inc., All Rights Reserved

  21. Slide 21: Autoliv Today

    Autoliv Today* A global leader in Automotive Safety with a well-balanced footprint RoA Japan 10% Seatbelts 29% 7% Europe 32% China 16% 55% Airbags 6% Active Safety 10% 35% Passive Electronics Americas 62,000 associates 80 facilities in 18 technical 20 crash (5,800 R,D&E) 28 countries centers test tr

  22. Slide 22: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead Align our operations to the markets Sales by region ($ M) 10 000 Europe 8 000 6 000 Asia 33% of sales Americas 4 000 Europe China 2 000 0 16% of sales 2004 2014 Japan 60 000 Employees Americas 7% of sales 50 000 34% RoA of sales 40 000 10% 30 000 LCC of sales Autoliv locat

  23. Slide 23: Changing Industry Landscape

    Changing Industry Landscape New technology change the way we drive and shape competition Future Active Passive 23 Copyright Autoliv Inc., All Rights Reserved

  24. Slide 24: Changing Industry Landscape

    Changing Industry Landscape Development of Growth Markets continues 60 500 North America LVP Growth Markets US $ Content per Vehicle 50 400 GROW TH MARKETS Million Light vehicles 40 LVP Triad South Korea 300 China Western Europe 30 Japan Eastern X 200 Europe 20 Brazil 100 Indonesia 10 Population Ind

  25. Slide 25: Strategy & Execution

    Strategy & Execution 25 Copyright Autoliv Inc., All Rights Reserved

  26. Slide 26: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead Quality is our first priority, in all we do Behavior Q5 is about Quality in all dimensions and is our journey towards Zero Defects 26 Copyright Autoliv Inc., All Rights Reserved

  27. Slide 27: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead Invest for robust growth in our markets to deliver Real Life Safety 1 000 14% Autoliv ~1% 12% 800 10% 600 8% CAPEX Share 6% RD&E industry % ALV Sales 400 recalls 4% 200 2% 0 0% 2004 2006 2008 2010 2012 2014 27 Copyright Autoliv Inc., All Rights Reserved

  28. Slide 28: New requirements drive the Market

    New requirements drive the Market From standard situations to real life safety Standardized Test Scenarios Real Life Situations and Benefit 28 Copyright Autoliv Inc., All Rights Reserved

  29. Slide 29: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead A holistic approach to Automotive Safety REAL LIFE SAFETY System Traffic Safety Integration Research Active Passive Technologies Technologies 29 Copyright Autoliv Inc., All Rights Reserved

  30. Slide 30: Towards Autonomous Driving the Real Life Safety way

    Towards Autonomous Driving the Real Life Safety way Our current footprint within the pyramid Autonomous Recent JVs Driving and M&A Automated Route Automated Route Partners (Trained) (Destination) Automated Highway Automated City Automated Valet Evasive In house Driving Driving Parking Maneuvers AEB

  31. Slide 31: Direction & Targets

    Direction & Targets 31 Copyright Autoliv Inc., All Rights Reserved

  32. Slide 32: Long-term Targets

    Long-term Targets Remains unchanged Organic* sales Operating margin* EPS* growth faster Net Debt*/EBITDA growth at least range 8-9% over than organic sales around one times in line with our the business growth (Debt Limitation market cycles Policy) …and faster than our …US GAAP excl. costs …US GAAP

  33. Slide 33: Our Market Outlook

    Our Market Outlook LVP in Growth Markets to increase ~22% by 2019 or CAGR of 5% 2015-19 CAGR LVP ~97M ~91M Global Market 3.3% ~85M 29 Light vehicle production (Millions) 26 Growth Markets 5.1% 24 ~57M RoW + EEU 4.7% ~46M 25 28 China 5.5% 22 TRIAD 1.0% 9 8 8 Japan (0.6%) 14 15 14 ~39M ~40M WEU 0.6% 1

  34. Slide 34: Growth

    Growth Leverage our strong position in a growing safety market 50 CAGR Current Safety Market 2015-2019: 6% 2014 MARKET SHARE Brake Control Systems ELE Additional Brake Control 40 ~0%** PAS Market ** Systems US $ (Billions) Active Safety*** 24% 30 Current Electronic PAS Electronics 22% Market 20 Side

  35. Slide 35: Looking ahead through 2019

    Looking ahead through 2019 Sales target is to grow faster than our market 200 $12,0 Sales (B US$) Target 1997 thru 2015 ~7%* Global LVP (Millions) CAGR  ALV sales growth $10,0 150 ~ 7% CAGR through the cycles $8,0  Market growth ~ 5% CAGR through the cycles 100 $6,0  LVP growth ~3% CAGR ~ 3% CAGR

  36. Slide 36: Margin Target

    Margin* Target Improve margin through 2019 despite investment for long-term growth 14% PAS:  At least maintain current margin levels 12% Improve from ELE: 10% current levels  Improve margin to reach our long-term target range by the end of the decade while investing 8% for growth 6% RD&E: Op. Marg

  37. Slide 37: Financial Strategy for EPS

    Financial Strategy for EPS EPS* target is to increase faster than the sales growth rate through 2019 7,00 EPS Increase faster 6,00 than Sales EPS 5-year growth rate EPS Growth Target through: Trailing 5,00 from 2015  ~7%* Sales CAGR through 2019 4,00  Improving margins 3,00  Share repurchases or

  38. Slide 38: Capital Structure

    Capital Structure Remain within our debt limitation policy of 0.5 to 1.5 times 2,5 Leverage Ratio * Long-term Range 2,0 Maintain flexibility for:  CapEx Max 1,5  M&A Times 1,0 Target  Dividends  Repurchases Min 0,5  Other requirements 0,0 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Q2'15 38

  39. Slide 39: Working Together in One Autoliv

    Working Together in One Autoliv 39 Copyright Autoliv Inc., All Rights Reserved

  40. Slide 40: Our Strategy to Stay Ahead

    Our Strategy to Stay Ahead New operating structure to drive change to deliver more  Positioning Autoliv technology for the Future ‒ We drive change to increase our system capabilities to deliver more as One Autoliv  Rapid growth in the Active Safety market ‒ We drive change through investments, in

  41. Slide 41: Summary

    Summary  Changing industry landscape  Focus on Quality and Real Life Safety is our way to stay ahead  Long term Financial Targets remain unchanged  Strategic targets through end of decade: ‒ Sales target is $12B with an ambition to reach up to $15B ‒ Expand our presence in our new more than $12B

  42. Slide 42: Saving more lives

    Saving more lives…… “my 14 year son and I……” FromXXXXXXXXXXXXXXXXXX Sent: Thursday, September 17, 2015 1:52 PM Subject: FW: Thank You To Whom It May Concern: I usually don't write letters like this, but after the events that took place September 5th I feel the need to thank someone from Kia Motors.

  43. Slide 43: Thank you!

    Thank you! Every year, Autoliv’s products save over 30,000 lives and prevent ten times as many severe injuries 43 Copyright Autoliv Inc., All Rights Reserved

Autoliv — Investor Day (October 2015) on 6ix