Slide 1: Earnings Conference Call and Webcast: Q3 2019 Financial Results
Earnings Conference Call and Webcast 3'9 Quarter 2019 Financial Results October 25, 2019 Autoliv
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 forwarc-looking statements include those that address activities, events or developments t
Slide 3: Q3'19 Key events
A OS a eae eee Q3’19 Key events " Deterioration of market conditions continues - Light vehicle production (LVP) weaker than expected in all regions** - LVP YoY decline slowed - Raw material headwinds persist, mainly fram steel and Nylon 6.6 - UAW strike affecting all GM assembly plants in the United
Slide 4: Structural efficiency program
Structural efficiency program a a eee FY2019 Expected for program Cost $40M ~$60M ~$60M Cash out $8M ~$27M ~$60M Headcount ~250 ~480 ~800 or about 4% of reduction indirect headcount Savings Limited ~$10M ~$60M annually or about 5% of indirect labor costs * Fully implemented by end of May 2020 * All
Slide 5: Q3'19 Financial Highlights
(J3°19 Financial Highlights Organic sales growth** despite market decline Consolidated Sales Adjusted Operating Income* Adjusted Earnings per Share* USS (Millions) US$ (Millions) US$ | 135 1.30 2,033 2,028 194 183 Q3°18 Q3"19 Q3°18 Q3"19 Q3°18 g319 (*) Non-US GAAP measures exclude costs for capacity
Slide 6: Market Conditions Q3'19
a OL Oa “ee Market Conditions 03°19 Temporary increase in LV sales in EU and Japan 10- year Light Vehicle Sales LTM** China - Chinese** light vehicle registrations fell for the 15" consecutive month in September bringing the + —China quarterly decline to 5.8% —us - LVP* declined by 6%, compared to 1
Slide 7: Q3'19 Sales Growth
3°19 Sales Growth Sales Bridge USS (Million) 2,100 2,050 2,000 1,950 1,900 1,850 1,800 Q3'18 Org. growth Currency Q3'19 (**) Non-US GAAP measure. Regional Organic Growth <ahe eS (673% son LVP* 1% 3%, anf (11)% LVP* 7% AMERICAS P ry CHINA 4.8% =, ; a then (2.9)% , , LVP* (10)% é (*) Light Vehicle Pro
Slide 8: Q3'19 - Key Model Launches
Q3’19 - Key Model Launches Chevrolet Trailblazer @ MM MA ——=,__ Subaru Legacy Cadillac CTS ~A—o % & @ M% MA Land Rover Defender Ford Puma I A OE A @ X “A ss /_ on BMW 1-Series BYD Song Pro A @ MA MA Peugeot 208 Subaru Outback @ MH HA % & Autoliv
Slide 9: Q3'19 Financial Overview
3°19 Financial Overview Sales $2,028 $2,033 Gross Profit $379 18.7% $386 19.0% Adj. Operating Income! $183 9.0% $194 9.5% EPS (assuming dilution) $0.98 $1.34 Adj. ROCE!2 19% 21% Adj. ROE!2 23% 23% Operating cash flow $195 $238 Dividend per share $0.62 $0.62 Global LVP3 (annual rate) ~B2M ~B5M Autoli
Slide 10: Adj. Operating Margin Bridge
Adj. Operating Margin* Bridge Q3'19 vs. Prior Year 12% | Operations +10 bps . +Pos Lower launch related costs, business 10% 9.5% cycle management, structural cost initiatives and sales growth from new % launches - Neg LVP decline with a disproportionate 6% negative impact on mature platforms with no
Slide 11: Cash Flow Continuing Operations
Cash Flow Continuing Operations sapovandi asa Investments for growth and shareholder returns seo ™ seo « * Q3’19 Q3'18 oo a 3 a Net Income 86 18 3 se0 aS Depreciation & 30 Amortization 84 85 349 342 307 280 7 * EC antitrust payment - - (203) . . - fri6 fear fig cmMaai9 caper nat cape net oF aes DBA
Slide 12: EPS development
EPS development Q3’'19 vs. same Quarter Prior Year Earnings per Share US$ Earnings per Share excluding items affecting comparability* $1.34 $0.98 Q3’18 Q3’19 uss The main negative items impacting EPS were $1.35 $1.30 a = 91 cents for capacity alignments = ~8cents from lower adjusted operating income
Slide 13: Balance Sheet and Financial Policy
Balance Sheet and Financial Policy Committed to Maintain “Strong Investment Grade” Rating Supported by High FCF Conversion* Net Debt/ EBITDA*® x 2.0 >) = Our net debt decreased by $30M in the quarter = EBITDALTM decreased by $6M from 92119 0.5-1.5x Long-Term Range 00 Q3°16 Q3°17 93°18 93719 (*) Auto
Slide 14: 2019 Light Vehicle Production Outlook
A OS a eae eee 2019 Light Vehicle Production Outlook Uncertainty prevails * Our FY 2019 outlook is based on global LVP declining 6-7% Q419 FY19 ~ FY'19 Light Vehicle production in North America is expected to decline largely due to the Region YoY Minions) YoY UAW strike at GM and weaker consumer dem
Slide 15: Financial Outlook 2019
Financial Outlook 2019 Sales, net ~(2)% Organic sales growth! ~1% EUR / USS 1.1016 Org. sales outperformance vs. LVP ~7pp Global LVP (B)% -(7)% US$ / JPY 107.43 US$ / KRW 1195 FX ~(3)% US$ / MXN 19.52 Adjusted Operating margin! ~9.0% Wisks/OLN we Tax rate? ~28% Operating Cash flow? $700M -$800M Cape
Slide 16: Adjusted Operating Margin Progression
Adjusted Operating Margin* Progression Performance spread vs. last year improving sequentially Adjusted Operating Margin* % 12% 10% 8% | ex / 4% 2% 0% Ql ge Q3 04 FY m2018 m2019 © FY2019 Indication (*) Non-US GAAP measures exclude costs for capacity alignments, antitrust related matters and separati
Slide 17: Welcome to Autoliv Capital Markets Day 2019
y he Welcome to Autoliv Capital Markets Day 2019 November 19 in Ogden in the Salt Lake Area, Utah Autoliv
Slide 18: Autoliv
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Slide 19: Q3'19 Product Volumes
ao 3°19 Product Volumes Volume growth in Driver airbags & Steering Wheels continues Al iv Quantities Delivered q3’19 (Millions unies: 1) Seatbelts 34.3 (1)% = Pretensioners (af which) 18.8 10% = Active Seatbelts (of which) 14 20% Frontal Airbags 13.6 1% = Knee Airbags (of which) id (5)% Side Airbags
Slide 20: Definition of Symbols
Definition of Symbols 4 = Driver and/or Passenger airbags ah = Pedestrian Airbag e . A = Seatbelts @ = Steering Wheel A " Side airbags Of * Head/Inflatable Curtain airbags e = Knee airbag [F] * Pyrotechnical Safety Switch Autoliv