Autoliv, Inc. · NYSE:ALV
Autoliv — Non-Deal Roadshow (November 2008)
37 slides from Autoliv's roadshow presentation, November 2008
Slide 1: US Non-Deal Road show
US Non-Deal Road show Chicago, Boston, NY Jan Carlson - President & CEO Marika Fredriksson - CFO November 4-7 2008 The Worldwide leader in Automotive Safety Systems Copyright Autoliv Inc., All Rights Reserved
Slide 2: Safe Harbor Statement
Safe Harbor Statement * Statements in this presentation that are not statements of historical facts may be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act. These statements involve risks and uncertainties, including – but not limited to - the economic o
Slide 3: Autoliv in Brief
Autoliv in Brief Sales by Region Japan Sales in 2007 ~ US $6.8 billion North America 24% 9% 13% RoW > 80 facilities in 32 vehicle producing countries 11 technical centers ~ 41,500 associates of which ~ 4,000 in R,D&E 54% Europe ALV US Investor Non-Deal Road show November 4-7, 2008 - 3 Copyrig
Slide 4: Sales by Customer - 2007
Sales by Customer - 2007 Other 12% 18% 4% 4% 4% 7% 5% 5% 6% 11% 6% 8% 10% ALV US Investor Non-Deal Road show November 4-7, 2008 - 4 Copyright Autoliv Inc., All Rights Reserved
Slide 5: Innovation & Technology Leadership
Innovation & Technology Leadership 2008 Integrated Safety Electronics 2007 Multi Volume Cushion 2006 Safety Vent Bag 7% of all automotive industry 2005 Night vision system safety patents Pedestrian hood 2004 Fixed-hub steering wheel 2002 Anti-sliding bag Adaptive load limiter 2000 Telematics 1998 Cu
Slide 6: Market Shares
Market Shares % 70 60 50 40 30 20 10 0 Airbags Seatbelts Airbags Seatbelts Airbags Seatbelts N. America Europe Japan 2001 2007 ALV US Investor Non-Deal Road show November 4-7, 2008 - 6 Copyright Autoliv Inc., All Rights Reserved
Slide 7: Net Sales Development
Net Sales Development 7,000 6,000 5,000 4,000 ** 3,000 2,000 1,000 MUS$ 0 94 00 07 5 6 7 8 9 1 2 3 4 5 6 M '9 '9 '9 '9 '9 '0 '0 '0 '0 '0 '0 LT 19 20 20 ** DIR estimate ALV US Investor Non-Deal Road show November 4-7, 2008 - 7 Copyright Autoliv Inc., All Rights Reserved
Slide 8: Cash Flow
Cash Flow (MUS$) Q3 ‘08 Q3 ’07 LTM 2007 2006 2005 Net Income 31 63 297 288 402 293 Depreciation & Amortization 86 77 341 321 303 309 Other non-cash items (8) (6) (20) 3 12 * 6 Change in operating WC (7) 14 39 169 (157) (129) Cash from Operations 102 148 657 781 560 * 479 Capex, net (71) (72) (289) (
Slide 9: Dividend Trend
Dividend Trend 45 40 35 30 ~ 21% CAGR 25 20 15 10 5 0 Cents/ Q4 Q2 Q3 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Share 2002 2003 2004 2005 2006 2007 2008 Steady dividend increases, annual dividend run rate $1.64 per share ALV US Investor Non-Deal Road show November 4-7, 2008 - 9 Copyright Autoliv Inc., All Rig
Slide 10: Shareholder Returns
Shareholder Returns % 20 600 Dividend + Buybacks 18 Net Free Cash Flow * 500 16 Yield (Return vs. Avg. 14 Market Cap.) 400 12 10 300 8 200 6 4 100 2 0 0 2003 2004 2005 2006 2007 LTM MUS$ Last 12 month returns ~ 12% (*) Net Free Cash flow (after capex & acquisitions before financing) ALV US Investo
Slide 11: Strong Financial Position
Strong Financial Position 45 * Estimated Cap at a rating of A- 40 35 30 25 20 15 10 Leverage Ratio < 3 times Net Debt to EBITDA (1.6 in Q3) 5 Interest Coverage Ratio > 2.75 times EBITDA to Interest (9.1 in Q3) 0 % Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 1999 2000 2001 2002 20
Slide 12: Q3-2008 Overview
Q3-2008 Overview EBIT margin 5.9%, ahead of guidance Strong Cash Flow in extremely difficult environment Additional long-term financing secured in October Q3 * 2008 2007 Sales $1,545 $1,557 EBIT % (**) $91 $117 EPS (***) $0.76 $0.87 (*) MUS$ except where specified (**) Non-US GAAP, including r
Slide 13: Autoliv News at the Paris Auto Show
Autoliv News at the Paris Auto Show: - Night Vision Generation II, to be launched H2’08 With pedestrian detection and warning Source: BMW HMI Interface of BMW series ALV US Investor Non-Deal Road show November 4-7, 2008 - 13 Copyright Autoliv Inc., All Rights Reserved
Slide 14: Autoliv News - Light Pack Passenger Airbag
Autoliv News - Light Pack Passenger Airbag Steel Housing * Weight reduction by optimization and reduction of no. of components Steel Housing Textile Housing with airbag cusion 30% Weight reduction* Weight 30% Weight reduction* 1998 2002 2008 ALV US Investor Non-Deal Road show November 4-7, 2008 - 14
Slide 15: Action Program
Action Program Estimated cost ~ $75M Estimated Annual savings ~ $120 M 3,000 people affected by year end 2008 Expect plan to be fully implemented in 2009 Full effect in 2010 ¾Estimated effect in Q3’08: $5 million ¾Estimated effect after Q4’08: >$20 million ALV US Investor Non-Deal Road sho
Slide 16: Light Vehicle Production
Light Vehicle Production YoY change WEU - FY (7.1% ) NAFTA - FY (14.5% ) 5 0 (5) (10) (15) (20) (25) % Q1 Q2 Q3 Q4 ALV organic sales decline ~ 7% & 12% in Q3 & Q4 respectively Source: CSM & JD Powers @ October 28, 2008 ALV US Investor Non-Deal Road show November 4-7, 2008 - 16 Copyright Autoliv In
Slide 17: Financial Outlook
Financial Outlook 4th Quarter Organic Sales ~ - 12 % Acquisitions ~+ 1% Fx Sales ~+ 1% Consolidated Sales ~ - 10 % EBIT Margin * ~ 5% Full Year Organic Sales ~-6% Acquisitions ~+1% Fx Sales ~+7% Consolidated Sales ~ +2% EBIT Margin * ~ 6.5% Sales & EBIT margin guidance lowered to reflect further m
Slide 18: US Light Vehicle SAAR since 1950
US Light Vehicle SAAR since 1950 20000 18000 Dot.com boom Late 80’s boom 16000 14000 12000 September 11 effect 10000 8000 70’s oil shock Early 80’s ´’93 recession 6000 recession 4000 2000 0 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 > 5M veh
Slide 19: WEU Car sales since 1960
WEU Car sales since 1960 IT boom 16000 Late 80’s boom 14000 12000 10000 8000 ´’93 recession” 6000 70’s oil shock Early 80’s recession 4000 2000 0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 ALV US Investor Non-Deal Road show
Slide 20: WEU Car sales since 1960-2009E
WEU Car sales since 1960-2009E IT boom 16000 14000 Late 80’s boom 12000 10000 8000 Early 90’s recession” 6000 70’s oil shock Early 80’s recession 4000 2000 0 2008E 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 ALV US Investor
Slide 21: Global Light Vehicle Production
Global Light Vehicle Production Latest expectations vs. March Rest of World 28 March 26 October Europe 24 March 22 October In million units 20 18 16 North America March 14 October 12 Japan 10 8 6 2003 2004 2005 2006 2007 2008 2009 2010 1.5 million fewer vehicles expected in EU Source: CSM & JD Pow
Slide 22: Light Vehicle Production
Light Vehicle Production Full Year Comparison Units in millions 2007 2008 Change 2009 Change North America 15.1 12.9 (15%) 11.7 (9%) - Domestic (*) 9.5 7.7 (20%) 6.6 (14%) - New Domestic 5.6 5.2 (6%) 5.1 (1%) Europe 22.1 21.8 (1%) 20.0 (8%) - WEU 16.1 15.0 (7%) 13.3 (11%) - EEU 6.0 6.8 14% 6.7 (2%)
Slide 23: Death Causes
Death Causes* Disease or Injury 1998 2020 1. Respiratory Infections 1. Ischaemic Heart Disease 2. HIV/AIDS 2. Unipolar Major Depression 3. Perinatal Conditions 3. Road Traffic Accidents = 2,300,000 4. Unipolar Major Depression 4. Cerebrovascular Disease 5. Diarrhoeal Diseases 5. Obstructive Pulmonar
Slide 24: Regulation Update
Regulation Update Europe 1. Pedestrian Protection Phase 2 (2015 – 100% new cars) 2. eCall (2010) 3. Environmental: • CO2 average fleet emission shall not exceed 130 gram/km (Sep 2012) • Substances of Concern REACH New EU legislation on chemicals (2007+) • ELV Directive revised; lead free electronics
Slide 25: NCAP Rating Update
NCAP Rating Update Europe 1. EuroNCAP major changes (2009): ¾ Single Star Rating for whole vehicle; 50% adult, 20% child, 20% pedestrian, and 10% safety assist Whiplash is added to adult protection rating (4/36 points) ¾ “Safety Assist” box to include: • Seatbelt reminder – moved from adult protecti
Slide 26: Rating 2012
Box 1 (36p) Adult Occupant Protection Box 2 (49p) Child Occupant Protection Rating 2012 Front ODB 64 km/h 24p Dynamic Test front / side [50% x Box 1] Capping Applied + >80% 4p 12p CRS based Assessment 4p 13p Vehicle based Assessment [20% x Box 2] >70% 49p 4p + >60% 4p [20% x Box 3] >55% 16p Capping
Slide 27: USNCAP – MY2010+
USNCAP – MY2010+ Overall Star Rating Frontal Stars Side Stars Rollover Stars 41.7% 33.3% 25% 56kph Frontal Pole 62kph barrier New injury curves. Same as FMVSS214 As FMVSS214 but +8kph Emphasis on neck Credit for early introduction 13.3% front occupant and chest deflection 3.3% front occupant 16.7% r
Slide 28: SCS – Market Growth
SCS – Market Growth Global LV by segment (in '000) C-Segment 2014 Mazda 3 2007 B-Segment Nissan Tiida D-Segment Peugeot 407 A-Segment Smart Roadster E-Segment Chevrolet Impala Compact Full-Frame Chevrolet Trailblazer Full-Size Full-Frame Chevrolet Suburban Mini Full-Frame Jeep Wrangler Data Sour ce
Slide 29: Big versus Small
”Big versus Small” - 5-Star Small Car in Crash with 4-star SUV ALV US Investor Non-Deal Road show November 4-7, 2008 - 29 Copyright Autoliv Inc., All Rights Reserved
Slide 30: Enhanced Safety for Small Cars
Enhanced Safety for Small Cars - Virtual Crash Zone with Radar or Vision 30m Sensor Zone Sensor Zone 150m Sensor Zone 30m ALV US Investor Non-Deal Road show November 4-7, 2008 - 30 Copyright Autoliv Inc., All Rights Reserved
Slide 31: Enhanced Safety for Small Cars Next Step
Enhanced Safety for Small Cars Next Step Anti-rotation Super Coupling Rear Impact Bag Seatbelt Side Airbag Anti-sliding Bag Active Structure RADAR Bumper Airbag RADAR RADAR Curtain Airbag Active Seatbelts Knee Airbag Super Coupling Integrated Safety Driver Airbag Controller ALV US Investor Non-Deal
Slide 32: Integrated Safety System Approach
Integrated Safety System Approach Active and Passive Convergence ACTIVE SAFETY PASSIVE SAFETY ASSISTANCE WARNING EMERGENCY Point of PRE-CRASH IN-CRASH POST-CRASH no return, one third of a Night vision Pedestrian Crash mitigation second Pedestrian Early sensing Crash High beam Lane de
Slide 33: Radar Portfolio Overview
Radar Portfolio Overview 24GHz Radar Short Range Radar (UWB SRR)- In production Blind Spot Radar (UWB BSR)- In production Side Impact Radar (NB SIR)- Ready Medium Range Radar (UWB MRR)- In development 77GHz Radar Long Range Radar (NB LRR)- In production ALV US Investor Non-Deal Road sh
Slide 34: Vision Portfolio Overview
Vision Portfolio Overview Night Vision System NV1 – Night Vision Display- In production NV2 – Pedestrian Detection- In production Mono Vision System MVS 1 - Mobileye Based –NCAP and convenience- Ready MVS 2 - Autoliv Based – cost reduction- In development Stereo Vision System SVS 1 –
Slide 35: Connected Safety
Connected Safety DSRC Always Connected Dedicated Short Range Communication •Car to Car •Car to Infrastructure •Infrastructure to Car T-ADAS •Planning Regularly Connected •Safe Speed •Early warning TEM3 •Phone Bluetooth •Remote – services GPS Cellular •eCall communication •B-Call •SVT Occasionally Co
Slide 36: Investment Thesis
Investment Thesis Strong Balance Sheet & Cash Generation Industry Leading Margins, Innovation & Technology Superior Global Presence & Customer Mix Always a need for Safety in Automobiles Shareholder friendly with an attractive Dividend Yield Basis for a sound investment ALV US Investor Non
Slide 37: Thank you!
Thank you! Autoliv Every year, Autoliv’s products save over 20,000 lives The Worldwide leader in Automotive Safety Systems Driven for life ALV US Investor Non-Deal Road show November 4-7, 2008 - 37 Copyright Autoliv Inc., All Rights Reserved