Autoliv, Inc. · NYSE:ALV
Autoliv — Q1 2013 Earnings Presentation
19 slides from Autoliv's earnings presentation, Apr 26, 2013
Slide 1: Teleconference 1st Quarter Financial Earnings
Teleconference 1st Quarter Financial Earnings April 26, 2013 Driven for Life. © 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
Slide 3: Q1 Highlights
Q1 Highlights - Guidance exceeded Q1’13 higher than expected • Organic sales > 3 pp better • EBIT* margin 0.8 pp better EPS* $1.32 • Driven by better than expected organic sales Strong Operating Cash flow • $141 million Solid returns • RoCE ~ 22% EBIT* margin 8.8% (*) Excludes legal costs &
Slide 4: Operational Focus
Operational Focus - Strong performance in a challenging environment EU • WEU LVP decline ~12% • Implementing capacity alignment Japan • LVP decline ~16% China • Strong sales growth ~24% • Increasing capacity and vertical integration Active Safety • Strong sales growth ~ 33% Ramping up Growth
Slide 5: Market Conditions - Europe
Market Conditions - Europe Demand • EU27 registrations YoY declines continue • Weakness spread throughout EU27, luxury brands are mixed Production • FY2013 YoY decline in WEU ~ 5% and EEU ~ 1% • Continues to exceed demand despite levels not seen since 08/09 crisis Risk for further production adj
Slide 6: Market Conditions - Americas
Market Conditions - Americas * North America • Demand remains stable with inventories ~ 60 days • Replacement cycle remains positive South America • LVP improving • Frontal airbag adoption rates increasing due to legislation in Brazil US SAAR ~15M vehicles for several months (*) Source: Wards Au
Slide 7: Market Conditions - Asia
Market Conditions - Asia China • Light vehicle sales and production are setting new record levels • Inventories are higher than normal, however sales are exceeding LVP • Japanese OEMs gradually recovering, local OEMs increasing content Japan • LVP stabilized post Tsunami ~ 2.1M per quarter RoA
Slide 8: Enhanced Market Position
Enhanced Market Position - Unit sales exceeded LVP in all products Autoliv Production Units (Millions unless specified) 2013 Change vs.’12 Seatbelts 36.1 1% • Pretensioners (of which) 13.6 (6%) • Active Seatbelts (of which) 0.4 (2%) Frontal airbags 10.3 9% • Knee airbags (of which) 0.9 92% Side airb
Slide 9: Chinese OEMs
Chinese OEMs - 2013 Key Platforms Geely Emgrand EC8 Great Wall Haval H6 Great Wall Voleex C30 Geely Emgrand EC7 Chery A3 FAW Besturn B50 Jianghuai Refine S5 Great Wall Haval M4 Wuling HongGuang Autoliv content per vehicle above average for the region on these models ALV Q1’13 Financial Earnings Repo
Slide 10: Executing our Growth Strategies
Executing our Growth Strategies - China 2013F – Market Share* % Autoliv 1 600 16 37 LVP ~ 19M External Sales % of total sales 63 1 200 12 U S $M 800 8 % 2010 – Market Share* % 400 4 Autoliv 32 0 0 LVP ~16M 00 01 02 03 04 05 06 07 08 09 10 11 12 F 13 20 20 20 20 20 20 20 20 20 20 20 20 20 20 68 Capit
Slide 11: Executing our Growth Strategies
Executing our Growth Strategies - Mercedes expanding “Collision Prevention Assist” Collision Warning Autonomous Emergency Braking Increasing adoption to standard equipment on cars and SUVs in most countries ALV Q1’13 Financial Earnings Report - 11 © Autoliv Inc., All Rights Reserved
Slide 12: Q1 Financial Overview
Q1 Financial Overview - Solid performance (US$ Mil’s unless specified) 2013 2012 Sales $2,135 $2,179 Gross Profit $414 19.4% $441 20.2% EBIT * $187 8.8% $217 10.0% EPS * (assuming dilution) $1.32 $1.56 RoCE * 22% 26% RoE * 14% 17% Operating Cash flow $141 $98 DPS ** $0.50 $0.45 GLVP *** (annual run
Slide 13: Q1 2013 - EBIT Bridge vs. Guidance and PY
Q1 2013 - EBIT* Bridge vs. Guidance and PY Q1 vs. PY 1.2 pp Q1 vs. Guidance 0.8 pp better 10.0% 8.8% 8.8% 8.0% MUSD MUSD 0.0% EBIT Margin* 8.8% (*) Excludes legal costs & other charges related to the ongoing antitrust investigations and alignment costs ALV Q1’13 Financial Earnings Report - 13 © Auto
Slide 14: Capacity Alignment
Capacity Alignment - Summary (US$ Mil’s unless otherwise specified) FY12 Q1 13 FY’ 13 Cost (gross) $79 $3 $25-50 Cash outlay - $5 $40-70 Savings - ~ $3 ~ $15 Carry forward $75 $70 Balance Sheet * Expected payback 2-3 years from the cash outlay (*) Employee related ALV Q1’13 Financial Earnings Report
Slide 15: Cash Flow
Cash Flow - Investments for growth in CapEx and shareholder returns (US $ Mil’s unless specified) Q1 Q1 FY FY FY FY 2013 2012 LTM 2012 2011 2010 2009 Net Income 125 101 509 486 627 596 13 Depreciation & Amortization 70 67 276 273 268 282 314 Other, net 14 6 18 10 38 57 (41) Change in operating WC (6
Slide 16: Looking Ahead - Q2 2013
Looking Ahead - Q2 2013 Sales • YoY organic sales increase ~ 3% Mainly related to strong sales in Active Safety, China and RoA partially offset by the declines in Europe and Japan • Sequentially organic sales ~ 1% increase from Q1 mainly due to Active Safety EBIT* Margin ~ 8.5% • YoY effect
Slide 17: FY Indication 2013
FY Indication - 2013 Sales • YoY organic sales growth 2 to 4% Strong growth in Active Safety, China and a favorable launch mix, partially offset by declines in Europe and Japan EBIT* Margin ~ 9% • YoY effect of organic sales is more than offset by higher RD&E, currencies and changes in product
Slide 18: Financial Outlook
Financial Outlook Q2 2013 FY2013 Sales Organic ~ 3% 2 to 4% Acquisitions / ~ (0.3%) ~ (0.2%) (Divestitures) Fx** ~ 0.4% ~ (0.1%) Consolidated Sales ~ 3% 2 to 4 % EBIT Margin * ~ 8.5% ~9% (*) Excludes legal costs & other charges related to the ongoing antitrust investigations and alignment costs (**)
Slide 19: Thank you!
Thank you! Autoliv - Safety Systems Active Autoliv Safety Every year, Autoliv’s products save over 25,000 lives Passive The Worldwide Leader in Automotive Safety Systems Safety ALV Q1’13 Financial Earnings Report - 19 © Autoliv Inc., All Rights Reserved