Autoliv, Inc. · NYSE:ALV

Autoliv — Non-Deal Roadshow (November 2011)

56 slides from Autoliv's roadshow presentation, Nov 15, 2011

  1. Slide 1: Road Show Paris

    Road Show Paris Nov. 15, 2011 Mats Ödman Vice President, Corp. Communications Copyright Autoliv Inc., All Rights Reserved

  2. Slide 2: Autoliv in Brief

    Autoliv in Brief Autoliv in Brief  Sales and technology leader RoW  Sales: US $7.2 billion Europe  Fortune 500 company 11% Japan  Sales to all major vehicle 11% 38% manufacturers China 11%  ~80 facilities in 29 countries  10 technical centers in 9 countries and 21 crash test tracks 29%  ~46,0

  3. Slide 3: Autoliv Production Volumes 2010

    Autoliv in Brief Autoliv Production Volumes 2010 Million Units 120 Global car production 100 80 Frontal 60 40 Head With pret. 20 Side 0 Seatbelt Airbag Steering ECU Wheel ALV-IR/ November 15, Road Show Paris 3 Copyright Autoliv Inc., All Rights Reserved

  4. Slide 4: Sales Development

    Autoliv in Brief Sales Development Light vehicle production in million units US$ million Millions units 9000 100.0 8000 90.0 7000 CAGR 6000 7% 80.0 5000 70.0 4000 3000 60.0 ASP 2000 50.0 1000 0 40.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 F2011 ALV-I

  5. Slide 5: Technology Leadership

    Technology Leadership 7% of all automotive industry safety patents 2008 Integrated Safety Electronics, Pedestrian Detection System 2007 Multi Volume Cushion 2006 Safety Vent Bag 2005 Night Vision System, Pedestrian Hood 2004 Fixed-Hub Steering Wheel 2002 Anti-Sliding Bag, Adaptive Load Limiter 2000

  6. Slide 6: Brake and Restraints Controls Integration

    Brake and Restraints Controls Integration Current System Integrated System Brake Brake Electronic Hydraulic Controls & Algorithms Passive One Central Controller Safety • Improved Cost, Reliability Controller & Performance ALV-IR/ November 15, Road Show Paris 6 Copyright Autoliv Inc., All Rights Rese

  7. Slide 7: Autoliv's Camera-based Vision System

    Growth Drivers Autoliv’s Camera-based Vision System  BMW 1-series  Introduction September 2011 ALV-IR/ November 15, Road Show Paris 7 Copyright Autoliv Inc., All Rights Reserved

  8. Slide 8: Autoliv's Vision System

    Growth Drivers Autoliv’s Vision System ALV-IR/ November 15, Road Show Paris 8 Copyright Autoliv Inc., All Rights Reserved

  9. Slide 9: Autoliv's Radar

    Growth Drivers Autoliv’s Radar  Most capable short- & medium-range system on the market  Front & Rear Parking, Parallel Park Assist  Blind Spot Detection (passive and active)  Rear Cross Path Alert  In production with Daimler, Chrysler, Honda and BMW  New customers booked and quoting  Acquisi

  10. Slide 10: Night Vision Generation II

    Growth Drivers Night Vision Generation II  With pedestrian detection and warning Audi A8 ALV-IR/ November 15, Road Show Paris 10 Copyright Autoliv Inc., All Rights Reserved

  11. Slide 11: Night Vision with Pedestrian Detection

    Growth Drivers Night Vision with Pedestrian Detection ALV-IR/ November 15, Road Show Paris 11 Copyright Autoliv Inc., All Rights Reserved

  12. Slide 12: Active Safety Sensing Market

    Growth Drivers Active Safety Sensing Market 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% Autoliv 62% 62% 9% 22% Autoliv 17% 17

  13. Slide 13: YoY Change in Organic Sales and LVP

    YoY Change in Organic Sales and LVP* 70 Change in ALV organic sales 50 Change in GLOBAL LVP Change in TRIAD LVP ALV 30 guidance % 10 -10 -30 -50 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4F 2008 2009 2010 2011 8 consecutive quarters out-performing global LVP Source: IHS (CSM) @ October 20 2011, (*) Light Vehicle Produc

  14. Slide 14: Sales Trend

    Sales Trend - best 3rd quarter ever LTM 2 000 1 500 1 000 ` 500 MUS$ 0 2007 2008 2009 2010 2011 ALV-IR/ November 15, Road Show Paris 14 Copyright Autoliv Inc., All Rights Reserved

  15. Slide 15: EBIT 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-IR/ November 15, Road Show Paris 15 Copyright Autoliv Inc., All Rights Reserved

  16. Slide 16: EPS Trend

    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-IR/ November 15, Road Show Paris 16 Copyright Autoliv Inc., All Rights Reserved

  17. Slide 17: Margin Performance

    Margin* Performance 25 Gross Margin 21,5 18,0 20,4 19,4 20 16,9 15 11,6 10,2 10 7,1 Operating Margin 3,8 4,5 5 %0 2007 2008 2009 2010 2011 -5 -10 -15 Strong margins trend (*) US GAAP ALV-IR/ November 15, Road Show Paris 17 Copyright Autoliv Inc., All Rights Reserved

  18. Slide 18: Cash Flow

    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

  19. Slide 19: Dividend Trend

    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-IR/ November 15, Road

  20. Slide 20: Light Vehicle Production - 3rd Quarter

    Light Vehicle Production - 3rd Quarter 2011 vs. 2010 ALV Organic Vehicles in millions @ Oct 20 @ Jul 15 Growth 2010 2011 Americas 4.1 4.3 5% 6% 10% - North America 3.0 3.2 6% 6% - South America 1.1 1.1 3% 5% Europe 4.3 4.5 5% 5% 10% - WEU 2.9 3.0 5% 5% - EEU 1.4 1.5 5% 3% Japan 2.3 2.2 (4%) (7%) (12

  21. Slide 21: Autoliv Production - 3rd Quarter

    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

  22. Slide 22: EU and US Vehicle Sales LTM

    EU and US Vehicle Sales LTM* (*) Source: ACEA and WardsAuto ALV-IR/ November 15, Road Show Paris 22 Copyright Autoliv Inc., All Rights Reserved

  23. Slide 23: US Light Vehicle Inventory

    US Light Vehicle Inventory* - Continue to run below historical levels October inventory 2.3M vehicles and 58 days (*) Source: Wards - includes both Domestic Manufacture and Imported Vehicles ALV-IR/ November 15, Road Show Paris 23 Copyright Autoliv Inc., All Rights Reserved

  24. Slide 24: Split European LV sales

    Split European LV sales PIIGS total 22.5% PIIGS have a relatively high number of A- and B-segment vehicles ALV-IR/ November 15, Road Show Paris 24 Copyright Autoliv Inc., All Rights Reserved

  25. Slide 25: China Passenger Car Sales

    China Passenger Car Sales 1 400 50,0% 2010 1 200 40,0% 2009 1 000 2011 30,0% 800 000´units 20,0% 2008 600 10,0% 400 Change 11' vs. 10' 0,0% 200 0 -10,0% Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Source: CPCA ALV-IR/ November 15, Road Show Paris 25 Copyright Autoliv Inc., All Rights Reserved

  26. Slide 26: Commodity Price Trends

    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

  27. Slide 27: Light Vehicle Production - IHS forecast updates

    Light Vehicle Production - IHS’s forecast updates by month 20.9 15-Apr 15-Jul 20-Oct 20.2 19.7 20 19.2 18.5 18.4 18.4 17.9 18.0 10% 16.9 ‐6% 15 milion units 10 5 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Source: IHS (CSM) @ April 15, July 15, October 20, 2011 ALV-IR/ November 15, Road Show Paris 27 Copyrigh

  28. Slide 28: Light Vehicle Production - 4th Quarter

    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

  29. Slide 29: Light Vehicle Production - Full Year

    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

  30. Slide 30: Thailand - flooding of many industrial zones

    Thailand - flooding of many industrial zones Mid/ Nov./11 before Flood waters drained from the Industrial zones fortunately our employees and facilities are safe ALV-IR/ November 15, Road Show Paris 30 Copyright Autoliv Inc., All Rights Reserved

  31. Slide 31: Financial Outlook

    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-

  32. Slide 32: Light Vehicle Production - Looking Ahead

    Light Vehicle Production - Looking Ahead 2012 vs. 2011 change Vehicles in millions 2011 2012 @ Oct 20 @ Jul 15 Americas 17.3 18.4 6% 9% - North America 13.0 13.7 6% 10% - South America 4.3 4.7 6% 6% Europe 20.0 19.5 (3%) 2% - WEU 13.6 13.2 (3%) 0% - EEU 6.4 6.3 (1%) 6% Japan 7.9 9.3 18% 31% China 16

  33. Slide 33: 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

  34. Slide 34: Market Growth Drivers

    Market Growth Drivers Market share Occupant Restraint Market x Supply value/car x Car built  New contracts  New products  GNP growth  Acquisitions  New regulations  Age of cars  Customer mix  Penetration rates  Prices  Country mix ALV-IR/ November 15, Road Show Paris 34 Copyright Autoliv I

  35. Slide 35: Light Vehicle Production Trend

    Light Vehicle Production Trend - positioning for growth in growth markets ~ 100M 105 90 ~ 80M ~ 75M Growth Markets ~ 69M 75 Rest of World & 60 Eastern Europe 60 Developed Markets 44 27 40 45 Japan 11 8 Western Europe 30 8 9 ~ 42 16 16 ~ 41 14 ~ 35 13 North America 15 15 13 14 17 0 2007 2011 2012 201

  36. Slide 36: Market Share Opportunities in China

    The Market Market Share Opportunities in China 2008, % 2012, % 2013 (f), % Others Autoliv Others Autoliv Autoliv Others Tokai Tokai 7 million KSS 18 million KSS 20 million Tokai KSS Jinheng Jinheng Jinheng TG TG Takata TG TRW Takata Takata TRW TRW ALV-IR/ November 15, Road Show Paris 36 Copyright Au

  37. Slide 37: Autoliv in India

    Autoliv in India Market Share 2009, % Autoliv Uttarakhand Others Manesar 19 (Delhi) TRW 4 Manufacturing Companies 5 Headcount: 900 49 Production: Takata 8  Seatbelts  Airbags 9  Steering Wheels Ashimore 10 Chennai Bangalore Mobis ALV-IR/G/Jan Carlson/2010 – Stora Leverantörsdagen 2010.09.09/37 AL

  38. Slide 38: Growth Drivers: Delivery Value per Vehicle

    Growth Drivers: Delivery Value per Vehicle USD 400 350 N. America Japan 300 Europe 250 Global 200 RoW 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ALV-IR/ November 15, Road Show Paris 38 Copyright Autoliv Inc., All Rights Reserved

  39. Slide 39: Growth Drivers: Regulation and NCAP Ratings

    Growth Drivers: Regulation and NCAP Ratings (examples) Europe 1. Euro NCAP Pedestrian Protection 2. LDW and Advanced Emergency Brakes for trucks and buses Americas Asia 1. Brazilian Frontal Airbag Rule - 100% by 1. China NCAP (CNCAP) MY2014 • Full frontal: 5th% in LH rear seat and 3 yr child 2. US N

  40. Slide 40: Growth Drivers: Inflatable Curtain

    Growth Drivers: Inflatable Curtain Estimated life-saving effect: 50% ALV-IR/ November 15, Road Show Paris 40 Copyright Autoliv Inc., All Rights Reserved

  41. Slide 41: Growth Drivers: Side Curtain Airbag Penetration

    Growth Drivers: Penetration rates for side curtain airbags Side Curtain Airbag Penetration Penetration Europe N. America Japan RoW rates % 80 60 40 20 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 ALV-IR/ November 15, Road Show Paris 41 Copyright Autoliv

  42. Slide 42: Growth Drivers: Global market shares passive safety

    Growth Drivers: Global market shares passive safety 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% # 1 or a close # 2 in all product areas ALV-IR/ November 15, Road Show Paris 42 Copyright Autoliv Inc., All Rights Reserved

  43. Slide 43: New Airbag Legislation in Brazil

    Growth Drivers New Airbag Legislation in Brazil Brazil 1,200 employees Production of:  Retractors:  Buckle ass  S/B assy:  Airbag assy  Steering Wheels (including frames) ALV-IR/ November 15, Road Show Paris 43 Copyright Autoliv Inc., All Rights Reserved

  44. Slide 44: Total Market Forecast

    Growth Drivers Total Market Forecast $21 Billion 1.1 $18 Billion Active safety 0.4 3.5 Electronics 3.3 5.4 Side airbags 4.4 5.7 Frontal airbags 5.1 Seatbelts 4.9 5.7 2010 2013 ALV-IR/ November 15, Road Show Paris 44 Copyright Autoliv Inc., All Rights Reserved

  45. Slide 45: Major Occupant Restraint Suppliers - Net Sales Development

    Major Occupant Restraint Suppliers - Net Sales Development US$ (million) 8 000 7 000 6 000 5 000 ** 4 000 3 000 2 000 1 000 0 * 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 20 9 0 F 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 10 (*) ALV & Takata Guidance, TRW LTM, (**) DIR estimate ALV-IR/ Novem

  46. Slide 46: Superior Global Presence - Local Production

    Superior Global Presence - Local Production SB AB SW EL SB AB SW EL SB AB SW EL SB AB SW EL North America Europe Japan Asia other South America SB=Seatbelts AB=Airbags SW=Steering wheels EL=Electronics ALV-IR/ November 15, Road Show Paris 46 Copyright Autoliv Inc., All Rights Reserved

  47. Slide 47: Pricing Trends

    Pricing Trends Average selling price (index) Index 100 80 Electronics Side, head 60 Driver 40 Side, chest Passenger 20 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2 008 2009 2010 ALV-IR/ November 15, Road Show Paris 47 Copyright Autoliv Inc., All Rights Reserved

  48. Slide 48: Cost Structure

    Cost Structure - as a % of sales Before Crisis After Crisis 7,4 EBIT * 12,1 11,7 Other 10,5 4,4 Depreciation 3,7 Labor 15,8 13,8 Labor 25.4 % Indirect labor 21.8 % 9,6 8,0 Direct labor 27,0 Direct 30,7 Value Add Direct Material Material 51.1 % 51,9% 20,4 Raw Material 24,9 2007 2010 (*) US GAAP repor

  49. Slide 49: Cost Structure

    Cost Structure - as a % of sales Before Crisis After Crisis 7,4 EBIT * 12,1 11,7 Other 10,5 4,4 Depreciation 3,7 Labor 15,8 13,8 Labor 25.4 % Indirect labor 21.8 % 9,6 8,0 Direct labor 27,0 Direct 30,7 Value Add Direct Material Material 51.1 % 51,9% 20,4 Raw Material 24,9 2007 2010 (*) US GAAP repor

  50. Slide 50: Re-design Cost Control

    Re-design Cost Control Saves Both Costs and the Environment 1996 2005 2010 300g. 170g. 125g. -45% -60% Life time saving 20,000 ton ALV-IR/ November 15, Road Show Paris 50 Copyright Autoliv Inc., All Rights Reserved

  51. Slide 51: Sourcing in LCC soon 50%

    Sourcing in LCC soon 50% Cost Control 50 Target 45% 45 43% 39% 40 35 30% LCC share, % 30 24% 25 20 15 10 5 0 2006 2007 2008 2009 2010 ALV-IR/ November 15, Road Show Paris 51 Copyright Autoliv Inc., All Rights Reserved

  52. Slide 52: Cost Structure

    Cost Structure - as a % of sales Before Crisis After Crisis 7,4 EBIT * 12,1 11,7 Other 10,5 4,4 Depreciation 3,7 Labor 15,8 13,8 Labor 25.4 % Indirect labor 21.8 % 9,6 8,0 Direct labor 27,0 Direct 30,7 Value Add Direct Material Material 51.1 % 51,9% 20,4 Raw Material 24,9 2007 2010 (*) US GAAP repor

  53. Slide 53: Flexibility - Associate Development

    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

  54. Slide 54: Returns Performance

    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-IR/ November 15, Road Show Paris 54 Copyright Autoliv

  55. Slide 55: Autoliv in Summary

    Autoliv in Summary  Sustainable growth  Possibility to maintain above industry margins  Solid balance sheet and cash flow  Historically strong returns to shareholders Basis for a sound investment ALV-IR/ November 15, Road Show Paris 55 Copyright Autoliv Inc., All Rights Reserved

  56. Slide 56: Autoliv

    Autoliv Every year, Autoliv’s products save over 20,000 lives The Worldwide leader in Automotive Safety Systems ALV-IR/ November 15, Road Show Paris 56 Copyright Autoliv Inc., All Rights Reserved

Autoliv — Non-Deal Roadshow (November 2011) on 6ix