Autoliv, Inc. · NYSE:ALV
Autoliv — Q2 2011 Earnings Presentation
15 slides from Autoliv's earnings presentation, Jul 21, 2011
Slide 1: Teleconference 2nd Quarter Financial Earnings
Teleconference 2nd Quarter Financial Earnings July 21, 2011 Copyright 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: Overview - quarterly highlights
Overview - quarterly highlights Quality Off new business hold with GM, continued focus on Q5 Operational execution Double digit margins continue Japanese OEM recovery ahead of schedule Outperform LVP; China, RoA, NAFTA & EU better than expected Growth Underlying Active Safety & Emerg
Slide 4: Q2 Financial Overview
Q2 Financial Overview - double digit operating margin continues * (US $ Mil’s unless specified) 2011 2010 Chg. LVP run rate (mil’s) 72 72 (1%) Sales $2,061 $1,802 + 14% Gross Profit $422 20.5% $412 22.9% + 2% EBIT $205 10.0% $229 12.7% (10%) EPS $1.54 $1.60 (4%) RoCE** 25% 30% (5pp) RoE** 18% 23% (5
Slide 5: Cash Flow
Cash Flow - near term CapEx and working capital headwinds 2011 2010 2011 2010 2009 2008 2007 (US $ Mil’s unless specified)` Q2 Q2 LTM FY FY FY FY Net Income 146 147 648 596 13 165 288 Depreciation & Amortization 66 71 268 282 314 347 321 Other non-cash items ` 14 10 41 58 (42) 29 3 Change in operati
Slide 6: Growth - the right product for the right region
Growth - the right product for the right region 105 ~ 102M 90 ~ 84M ~ 75M Emerging Markets 75 ~ 68M 61 Rest of World & 60 46 Eastern Europe 27 41 Developed Markets 45 Japan 11 9 30 8 10 Western Europe 16 16 ~ 42 14 14 ~ 42 ~ 35 15 North America 15 14 17 13 0 2007 2011 2012 2017 RoW & EEU will more t
Slide 7: Staying Ahead of the Curve
Staying Ahead of the Curve - investing in our future growth Active Safety China Hella IP acquisition Changchun Thailand seatbelts & airbags 100% capacity increase cushion cut & sew ~ 15% global capacity increase Nanjing seatbelts Brazil 50% capacity increase double steering
Slide 8: Dividend Trend
Dividend Trend - per share vs. cash paid $ / share M US$ 0.5 50 Dividend per share 0.4 32% 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 Run rate $1.80 per share, record payment close to $165M annualized ALV Q2’11 Financial Earnings Report
Slide 9: Autoliv Production - 2nd Quarter
Autoliv Production** - 2nd Quarter Units in Millions (unless specified) 2011 Change vs.’10 Seatbelts 32.8 2% - Pretensioners (where of) 13.9 8% Frontal airbags (excl. knee) 8.1 12% Side Airbags 16.2 10% - Chest (Thorax) 8.5 21% - Head (Curtain) 7.7 0% Steering Wheels 3.0 (2%) Electronic Control Unit
Slide 10: Light Vehicle Production - 2nd Quarter
Light Vehicle Production - 2nd Quarter 2011 vs. 2010 change ALV Organic Vehicles in millions 2010 2011 @ July 15 @ April 15 Growth Americas 4.1 4.2 3% (1%) 12% - North America 3.1 3.1 1% (3%) - South America 1.0 1.1 8% 5% Europe 5.0 5.2 4% (7%) 5% - WEU 3.5 3.5 1% (9%) - EEU 1.5 1.7 11% (2%) Japan 2
Slide 11: Commodity Price Trends
Commodity Price Trends - Increasing raw material costs Yarn Steel Index Sequential Chg. Q1 Q2 Q3F Q4F FY11F Y-o-Y Chg. Q1 Q2 Q3F Q4F FY11F Steel 0 3 8 -1 24 Steel 7 10 13 10 40 Non-Ferrous 0 1 1 0 5 Non-Ferrous 3 1 3 3 10 Plastic & Yarn 4 6 5 0 44 Plastic & Yarn 7 13 16 14 50 Other 1 1 -1 -1 4 Other
Slide 12: Light Vehicle Production - FY2011 forecast updates
Light Vehicle Production - FY2011 forecast updates by quarter 20.9 Apr. 15 Jul. 15 20.2 20 19.0 18.5 18.4 17.9 13% 16.9 ‐6% 15 10 5 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Q2 drop in GLVP not as severe as originally expected while Q4 not as strong Source: IHS (CSM) @ April 15, July 15, 2011 ALV Q2’11 Fina
Slide 13: Light Vehicle Production - 3rd Quarter
Light Vehicle Production - 3rd Quarter 2010 2011 2011 ALV Organic Vehicles in millions Growth vs. 2010 Americas 4.1 4.4 6% - North America 3.0 3.2 6% - South America 1.1 1.2 5% Europe 4.2 4.4 5% - WEU 2.9 3.0 5% - EEU 1.3 1.4 3% Japan 2.3 2.1 (7%) China 3.5 3.9 12% RoA 2.7 3.0 11% Other * 0.5 0.6 To
Slide 14: Financial Outlook
Financial Outlook Sales Q3 2011 FY2011 Organic ~ 9% > 9% Acquisitions 0% < 2% Fx* ~ 7% ~ 5% Consolidated ~ 16% ~ 16% EBIT Margin ** ~ 10% > 11% (*) 1 Euro = 1.41 US$, 1 US$ = 79 JPY for Q3 & 1 Euro = 1.41 US$, 1 US$ = 81 JPY for FY2011 (**) Excludes legal costs & other charges related to the on-goin
Slide 15: Thank you!
Thank you! Autoliv every year, Autoliv’s products save over 25,000 lives Making Driving Safer … and prevent ten times as many The Worldwide leader in Automotive Safety Systems severe injuries Driven for life ALV Q2’11 Financial Earnings Report - 15