Slide 1: 3rd Quarter Financial Results
Earnings Conference call Webcast 3rd Quarter Financial Results October 27, 2016 Saving More Lives 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: Q3'16 Highlights
Q3’16 Highlights Solid performance Financial Performance • Organic sales* growth ~6%, in-line with guidance • Operating margin* 8.1%, better than expected • EPS* $1.63, ~7% better YoY** • RoCE* ~18%, RoE* ~14% • Operating cash flow $271M Capital Structure • $51M returned to shareholders through
Slide 4: Active Safety Update
Active Safety Update Lower organic sales* growth as indicated earlier Factors affecting Organic Sales* End of Decade 1,000 Active Safety Sales Sales Target @ 2015 CMD > $1B (US $ Millions) Growth 750 • Phase-out of incumbent Brake Control programs 500 2009 to 2016 LTM Sales CAGR ~50% • Take rates
Slide 5: Looking ahead
Looking ahead Strong order intake has continued throughout 2016 Growth • Ramp-up of new business awards is accelerating in Passive Safety • Further market opportunities are available • Positive development to surpass our end of decade Sales target of $12B for FY’19 which implies a Sales CAGR of mo
Slide 6: Unit Volume
Unit Volume Growth exceeds LVP* in most product areas Autoliv Quantities Delivered Q3’16 vs. PY (Millions unless specified) Seatbelts 34.2 3% • Pretensioners (of which) 16.1 6% • Active Seatbelts (of which) 1.0 27% Frontal Airbags 11.7 5% • Knee Airbags (of which) 1.4 1% Side Airbags 22.6 5% • Chest
Slide 7: Strong Performing Models
Strong Performing Models Contributing to our overall organic sales* growth in Q3’16 Honda Civic Mercedes E-Class Fiat Tipo/Egea Mercedes C-Class Haval H6 KIA Sportage Ford Escort Toyota Prius Hyundai Tucson Q3’16 organic sales* growth ~6%, all of these models include our Electronics products except
Slide 8: China Update
China Update Light vehicle production remains volatile Market • Strong Q3’16 with an increase in LVP** and LV sales** ~24%, both following the low levels in Q3’15 • LV Inventories** continued to improve in Q3’16 • Monthly fluctuations remain volatile and difficult to forecast Autoliv • Strong or
Slide 9: Overall Market Conditions
Overall Market Conditions Macro environment remains mixed and uncertain Asia FY’16 LVP* Region Vehicles (Mil’s) YoY Chg. • China volume is strong despite LVP* decline of China 24.5 +7% ~2% YoY* for Q4’16 (tough comps vs. last year) Japan 8.5 (1)% • Japan and RoA show a slight decline in LVP* YoY*
Slide 10: Q3 Financial Overview
Q3 Financial Overview Record sales and gross profit for a 3rd quarter (US$ Millions unless specified) 2016 2015 Sales $2,461 $2,185 Gross Profit $495 20.1% $440 20.1% Operating Income* $199 8.1% $205 9.4% EPS* (assuming dilution) $1.63 $1.53 RoCE* 18% 22% RoE* 14% 16% Operating Cash flow $271 $191 D
Slide 11: Operating Income and Margin Bridge
Operating Income and Margin* Bridge Q3’16 vs. Guidance and Prior Year Q3’16 vs. Guidance (60 bps better) Q3’16 vs. Prior Year (130 bps lower) Operating margin* of 8.1% includes ~90 bps increase in RD&E, net and ~70 bps of negative acquisition effects YoY (*) Non-US GAAP measures exclude costs for ca
Slide 12: Cash Flow
Cash Flow Investments for growth and shareholder returns (US$ Millions unless specified) Q3 Q3 FY FY FY FY 2016 2015 LTM* 2015 2014 2013 2012 Net Income 136 99 603 458 469 490 486 Depreciation & Amortization 98 80 369 319 305 286 273 Other, net 13 2 31 0 42 43 10 Change in operating WC ** 24 10 (107
Slide 13: Q3 Segment Reporting
Q3 Segment Reporting Strong growth in all product areas Organic Operating Margin (%) CapEx (%) D&A (%) Sales* 2016 2015 2016 2015 2016 2015 Growth (%) Passive Safety *** 5.8 10.0 8.1 5.1 4.7 3.6 3.7 Airbags 5.1 Seatbelts 6.8 Electronics *** 8.0 0.9 2.9 3.9 3.1 4.5 3.0 Passive Safety Electronics 8.0
Slide 14: Looking Ahead: Q4'16 Guidance
Looking Ahead Q4’16 Guidance Sales • YoY** organic sales* change ~0% - Mainly related to working day effect from Q1’16 and lower inflator replacement volumes, strong underlying organic sales* growth of ~5% mainly due to Europe, Japan and RoA • YoY** acquisition effect ~6% • Sequential consolidated
Slide 15: Looking Ahead: FY'16 Guidance remains unchanged
Looking Ahead FY’16 Guidance remains unchanged Sales • YoY** organic sales* increase ~7% - Mainly related to strong growth in Europe, China, Japan, North America and Active Safety • YoY** acquisition effect ~5% • YoY** currency translation effect >(1)% - Primarily due to the continued strong US$
Slide 16: Financial Outlook
Financial Outlook Q4’16 FY’16 Sales Organic* ~0% ~7% Acquisitions ~6% ~5% Fx** <(1)% >(1)% Consolidated Sales, net >5% >10% Operating Margin* >9% >8.5% Exchange rates** Q4’16 FY’16 EUR / US$ 1.1007 1.1135 US$ / JPY 103.88 106.82 US$ / KRW 1135 1150 US$ / MXN 19.05 18.50 US$ / CNY 6.73 6.62 Strong or
Slide 17: Thank You!
Thank You! ALV Q3’16 Earnings Release Presentation - 17 Copyright Autoliv Inc., All Rights Reserved