Autoliv, Inc. · NYSE:ALV
Autoliv — Q3 2012 Earnings Presentation
15 slides from Autoliv's earnings presentation, Oct 23, 2012
Slide 1: 3rd Quarter Financial Earnings Teleconference
Teleconference 3rd Quarter Financial Earnings October 23, 2012 Driven for Life © Autoliv Inc., All Rights Reserved
Slide 2: Safe Harbor Statement
Safe Harbor Statement * This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations and various assumptions, and app
Slide 3: Highlights - Navigating thru challenging times
Highlights - Navigating thru challenging times Solid performance • Met margin* guidance despite slower than expected organic sales growth • Strong cash generation and balance sheet for opportunities Heightened market uncertainty • Light vehicle decline in EU is accelerating • Growth in China, Active
Slide 4: Q3 Financial Overview
Q3 Financial Overview - Solid performance in uncertain times (US $ Mil’s unless specified) 2012 2011 Sales $1,947 $2,018 Gross Profit $388 19.9% $411 20.4% EBIT * $197 10.1% $212 10.5% EPS * (assuming dilution) $1.30 $1.53 RoCE * 23% 25% RoE * 14% 18% Operating Cash flow $131 $192 DPS ** $0.47 $0.45
Slide 5: Cash Flow
Cash Flow - High CapEx and RD&E spend to support growth (US $ Mil’s unless specified) Q3 Q3 LTM FY FY FY 2012 2011 ** 2011 2010 2009 Net Income 118 139 505 627 596 13 Depreciation & Amortization 68 67 274 268 282 314 Other, net (10) 20 15 38 57 (42) Change in operating WC (45) (34) (54) (175) (11) 2
Slide 6: Commodity Price Trends
Commodity Price Trends - Raw material cost development Steel Index Y-o-Y Chg. Q1 Q2 Q3 Q4F FY12F Steel 6 2 (2) (5) 1 Non-Ferrous 0 (1) (1) (1) (3) Plastic & Yarn 9 2 (1) (2) 8 Other 0 (1) 0 1 0 Total - MUSD 15 2 (4) (7) 6 YoY commodity increase expected to be ~ $6M for FY2012 ALV Q3’12 Financial Ear
Slide 7: Light Vehicle Sales LTM
Light Vehicle Sales LTM* - US vs. EU EU • Declines continue from incentive program peak • Weakness spreading from Southern to Northern EU • No immediate recovery in sight Source: IHS and Acea, (*) Last Twelve Months ALV Q3’12 Financial Earnings Report - 7
Slide 8: Underlying Market Conditions - Americas
Underlying Market Conditions - Americas North America • Overall demand remains stable • US SAAR in the range of 14-15M vehicles • Inventories remain at healthy levels ~ 60 days • Positive replacement cycle with available consumer credit South America • Frontal airbag legislation in Brazil adoption r
Slide 9: Underlying Market Conditions - Asia
Underlying Market Conditions - Asia China • Passenger car sales & LVP continue to grow, setting new record levels • Mix shift from domestics to foreign brands • Near-term turbulence for J-OEMs Japan • Returning to pre-Tsunami levels with a risk for further softening RoA • South Korea recovering from
Slide 10: 2012 Major Launches
2012 Major Launches - Active Safety products Cadillac ATS Honda Legend Mercedes A-Class BMW 6-Series Cadillac XTS Mercedes GL-Class Dodge Dart Mercedes M-Class Buick Verano ALV Q3’12 Financial Earnings Report - 10
Slide 11: Light Vehicle Growth
Light Vehicle Growth - Long-term market trend remains intact 105.0 ~ 98M Growth Markets 90.0 ~ 79M Rest of World ~ 75M 32 Eastern Europe 75.0 ~ 69M 25 24 60.0 19 China 26 45.0 8 17 16 Developed Markets 11 8 30.0 8 9 Japan 16 12 14 ~40M Western Europe ~42M 14 ~34M ~37M 15.0 18 15 13 15 North America
Slide 12: Executing our Growth Strategies
Executing our Growth Strategies - Further expansions in China ALV Q3’12 Financial Earnings Report - 12
Slide 13: 2012 Outlook Highlights
2012 Outlook Highlights - 4th Quarter Growth • YoY organic sales growth 0 – 2 % sales decline in EU more severe than originally anticipated slower growth in China partially due to lower volumes with JOEMs platform launches on track, albeit slightly lower volumes Margins* • ~ 9 % operating margin low
Slide 14: Financial Outlook
Financial Outlook Q4 2012 FY2012 Sales Organic 0-2% ~ 4% Acquisitions / (0.5%) ~ (0.5%) (Divestitures) Fx** (0.5%) ~ (3%) Consolidated Sales flat flat EBIT Margin * ~ 9% > 9.5% (*) Excludes legal costs & other charges related to the on-going anti-trust investigations and alignment costs (**) 1 Euro
Slide 15: 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 Q3’12 Financial Earnings Report - 15