Autoliv, Inc. · NYSE:ALV
Autoliv — Barclays Global Automotive Conference 2011
24 slides from Autoliv's conference presentation, Nov 14, 2011
Slide 1: Barclays Global Automotive Conference
Barclays Global Automotive Conference NYC Ray Pekar – Director IR & Business Dvelopement November 14-15, 2011 Copyright Autoliv Inc., All Rights Reserved Safe Harbor Statement * This report contains statements that are not historical facts but rather forward-looking statements within the meaning of
Slide 2: Overview - quarterly highlights; Q3 Financial Overview
Overview - quarterly highlights Operational execution 8th consecutive quarter outperforming GLVP 7 consecutive quarters of double digit margins LTM sales $8.1M and strong cash generation Growth Active Safety Next Generation Integration (Restraints + Brake Control) Astyx IP acquisition expands radar
Slide 3: Dividend Trend; Industry Leading Margins and Returns
Dividend Trend - per share vs. cash paid $ / share M US$ 0.5 50 Dividend per share 0.4 29% 40 0.3 30 0.2 20 0.1 Dividend Payments 10 0 0 ‘97 ’98 ‘99 ’00 ‘01 ’02 ’03 ‘04 ’05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 highest ever yearly run rate $1.80 per share and annualized payment ~ $160M ALV Post Q3’11 Financial Ea
Slide 4: Commodity Price Trends; Light Vehicle Production
Commodity Price Trends - Increasing raw material costs Yarn Steel Index Sequential Chg. Q1 Q2 Q3 Q4F FY11F Y-o-Y Chg. Q1 Q2 Q3 Q4F FY11F Steel 0 3 4 2 19 Steel 7 10 9 9 35 Non-Ferrous 0 1 0 0 3 Non-Ferrous 3 1 2 2 8 Plastic & Yarn 4 6 3 0 40 Plastic & Yarn 7 13 14 12 46 Other 1 1 0 0 7 Other 1 1 2 2
Slide 5: Light Vehicle Production; Thailand flooding
Light Vehicle Production - 4th Quarter 2010 2011 2011 Q4’11 Vehicles in millions vs. 2010 vs. Q3’11 Americas 4.1 4.4 9% 3% - North America 3.0 3.3 12% 5% - South America 1.1 1.1 0% (4%) Europe 5.0 4.8 (3%) 7% - WEU 3.4 3.3 (1%) 9% - EEU 1.6 1.5 (6%) 3% Japan 2.1 2.6 23% 17% China 4.4 4.5 1% 14% RoA
Slide 6: Financial Outlook; Major Occupant Restraint Suppliers
Financial Outlook Sales Q4 2011 FY2011 Organic > 9% >9% Acquisitions 0% < 2% Fx* ~ 0% < 5% Consolidated > 9% > 15% EBIT Margin ** 11 - 11.5% ~ 11% (*) 1 Euro = 1.37 US$, 1 US$ = 77 JPY for Q4 & 1 Euro = 1.39 US$, 1 US$ = 79 JPY for FY2011 (**) Excludes legal costs & other charges related to the on-
Slide 7: Market Shares; Light Vehicle Production Trend
Market Shares - Passive Safety Global Total 1 SW 1 Seatbelts 1 ECU 2 Head A/B 1 Chest A/B 1 Passenger A/B 1 Driver A/B 2 0% 10% 20% 30% 40% 50% 60% * Including Delphi OR Autoliv’s share* ALV Post Q3’11 Financial Earnings Report - 13 Light Vehicle Production Trend - positioning for growth in growth m
Slide 8: Light Vehicle Segment Trend; Market Growth by Product
Light Vehicle Segment Trend - the right products for segment growth ~ 100M 105 90 ~ 80M ~ 75M ~ 69M 37 75 29 A & B Segment 60 26 20 45 46 C & D Segment 30 32 35 37 15 6 6 E Segment (Luxury) ~17 5 5 ~17 11 9 ~14 9 11 Full Frame 0 2007 2011 2012 2017 Compact & Mid Size vehicles increase > 50% by 2017
Slide 9: Growth in Active Safety; Integrated Safety System
Growth in Active Safety - the right product for the right functionality Radar Infra red Vision 2010 Radar Market Share 2010 NV Market Share 2010 Vision Market Share 18% 5% 20% 25% 29% Conti Conti ALV Magna/ME 10% 33% ALV Mobis Denso 9% Hella Bosch Denso Valeo Others Bosch Others Others 11% 62% 9% 22
Slide 10: Brake and Restraints Controls Integration; Active Safety Introductions
Brake and Restraints Controls Integration Current System Integrated System Brake Brake Electronic Brake Hydraulic Controls & Hydraulic Controls Algorithms Controls Restraints Restraints + Brake Electronic Controls Electronic Controls and Algorithms and Algorithms One Central Controller • Improved Co
Slide 11: Staying Ahead of the Curve; Growth in China
Staying Ahead of the Curve - investing in our future growth Active Safety China Astyx IP acquisition Changchun Hella IP acquisition seatbelts & airbags Thailand 100% capacity increase cushion cut & sew Nanjing ~ 15% global capacity increase seatbelts Brazil 50% capacity increase double steering whee
Slide 12: Growth in Brazil; Light Vehicle Production Looking Ahead
Growth in Brazil - New frontal airbag legislation Brazil 1,200 employees Production of: Retractors Buckles Seatbelt assembly Seatbelt webbing Airbag assembly CARG 19% Steering Wheels (including armatures & leather wrapping) Inflator assembly ALV Post Q3’11 Financial Earnings Report - 23 Light Vehicl
Slide 13: Our Response to the Uncertain Macro Situation
Our Response to the Uncertain Macro Situation - flexibility, liquidity and market presence 50% PERSONNEL 40% 20% 25% Temporary from 16% to 20% of total 20% HCC from 46% to 35% of total 10% Indirect from 34% to 29% of total 0% 0% 0% Q2'08 Q2'09 Q2'10 Q3'11 Q2'08 Q2'09 Q2'10 Q3'11 Q2'08 Q2'09 Q2'10 Q3
Slide 14: Cash Flow; Net Free Cash Flow Returns
Cash Flow - higher CapEx to support growth initiatives 2011 2010 2011 2010 2009 2008 2007 (US $ Mil’s unless specified)` Q3 Q3 LTM FY FY FY FY Net Income 139 141 646 596 13 165 288 Depreciation & Amortization 67 69 266 282 314 347 321 Other non-cash items ` 20 5 55 58 (42) 29 3 Change in operating W
Slide 15: Capital Structure; Light Vehicle Production
Capital Structure - strong investment grade credit rating 40 6 Leverage Ratio Policy < 3 times 5 30 4 20 3 2 10 Net Debt to Capitalization 1% 1 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q4'08 Q2'09 Q4'09 Q2'10 Q4'10 Q2'11 16 Credit Rating Agency Overview 12 S&P Moody’s 8 L
Slide 16: Autoliv Production; YoY Change in Organic Sales and LVP
Autoliv Production** - 3rd Quarter Units in Millions (unless specified) 2011 Change vs.’10 Seatbelts 32.1 9% - Pretensioners (where of) 12.9 11% Frontal airbags (excl. knee) 7.7 14% Side Airbags 16.3 18% - Chest (Thorax) 8.5 28% - Head (Curtain) 7.8 8% Steering Wheels 3.0 4% Electronic Control Units
Slide 17: Flexibility; Margin Performance
Flexibility - Associate Development * 50,000 40,000 65% 54% 30,000 Since Q2’08 LCC 20,000 46% 35% HCC reduced from 46% to 35% or 10,000 HCC 19,910 to 16,716 0 50,000 40,000 20% 16% Temporary Permanent decreased from 84% to 80%, 30,000 84% 80% but increased in total numbers from 20,000 36,361 to 37,9
Slide 18: Returns Performance; Sales Trend
Returns* Performance 35.0 26.4 Return on Capital Employed 24.6 25.0 20.8 15.0 12.9 17.0 7.6 Return on Equity 10.4 6.5 5.0 5.7 5.8 % 2007 2008 2009 2010 2011 -5.0 -15.0 Strong returns trend (* ) US GAAP reported Operating Income and Net Income ALV Post Q3’11 Financial Earnings Report - 35 Sales Trend
Slide 19: EBIT Trend; EPS Trend
EBIT* Trend - best 3rd quarter ever 250 200 150 100 50 MUS$ 0 2007 2008 2009 2010 2011 -50 -100 (*) Figures US GAAP ALV Post Q3’11 Financial Earnings Report - 37 EPS* Trend - 2nd best Q3 ever 2 1.5 1 0.5 US$ 0 2007 2008 2009 2010 2011 -0.5 -1 (*) Figures US GAAP ALV Post Q3’11 Financial Earnings Rep
Slide 20: Product Sales; US Light Vehicle Inventory
Product Sales - increases in passive and active electronics Seatbelts Airbags 2010 $7.2B St. Wheels Q3YTD2011 $6.2B Other Passive Elec. 10% 1% Active Elec. 10% 2% 5% 5% 32% 31% 8% 7% 46% 45% FAB ~ 19% and SAB ~ 26% in 2011 ALV Post Q3’11 Financial Earnings Report - 39 US Light Vehicle Inventory* - C
Slide 21: EU and US Vehicle Sales; China Passenger Car Sales
EU and US Vehicle Sales LTM* 18 16 14 EU US 12 million units 10 8 6 4 2 0 (*) Source: ACEA and Wards Auto ALV Post Q3’11 Financial Earnings Report - 41 China Passenger Car Sales Source: CPCA ALV Post Q3’11 Financial Earnings Report - 42
Slide 22: Light Vehicle Production Full Year; Major launches Q1 2011
Light Vehicle Production - Full Year 2011 vs. 2010 change Vehicles in millions 2010 2011 @ Oct 20 @ Jul 15 Americas 16.1 17.3 8% 9% - North America 11.9 13.0 9% 9% - South America 4.2 4.3 5% 7% Europe 19.0 20.0 5% 6% - WEU 13.1 13.6 3% 5% - EEU 5.9 6.4 8% 9% Japan 8.9 7.9 (11%) (16%) China 15.4 16.3
Slide 23: Major launches Q2 and Q3 2011
Major launches Q2 2011 Range Rover Evoque Mercedes M Class Volkswagen Beetle Lancia Ypsilon Samsung SM7 Hyundai Veloster ALV Post Q3’11 Financial Earnings Report - 45 Major launches Q3 2011 Ford Ranger MINI Coupé Hover H6 Mercedes B-Class BMW 1 Series Chery Riich G3 Citroën DS5 ALV Post Q3’11 Financ
Slide 24: Key Platforms 2011 SEPT YTD, China
Key Platforms 2011 SEPT YTD, China Nissan Qashqai Honda CRV Volkswagen Golf GreatWall Voleex C30 Emgrand EC7 Citroën C4 Chevrolet Cruze Buick Lacrosse BMW 5 Series ALV Post Q3’11 Financial Earnings Report - 47