Autoliv, Inc. · NYSE:ALV
Autoliv — Q3 2012 Earnings Presentation
25 slides from Autoliv's earnings presentation, Oct 26, 2012
Slide 1: Autoliv – The Global Leader in Automotive Safety
Autoliv – The Global Leader in Automotive Safety Q3 Road Show to London, October 26, 2012 Jan Carlson President & CEO 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: 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 4: 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 5: Dividend Trend
Dividend Trend - Per share and cash payments $ / share M US$ 0.5 50 Dividend per share 0.4 40 0.3 30 0.2 20 0.1 Dividend Payments 10 0 0 1997 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 *) Estimated dividend for Q4 2012 based on share count at end of 3rd quarter 2012 ALV Q3’12 Financial Earning
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: US Light Vehicle Inventory
US Light Vehicle Inventory Data source: JD Powers ALV Q3’12 Financial Earnings Report - 8
Slide 9: Euro Zone Crisis
Euro Zone Crisis - Light vehicle production vs. sales and exports vs. imports Estimated inventory build-up ~ 1.6M units in EU27 since Q1 2010 ALV Q3’12 Financial Earnings Report - 9
Slide 10: 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 adop
Slide 11: China Passenger Car Sales
China Passenger Car Sales (Unit: ‘000) Data Source: CAAM ALV Q3’12 Financial Earnings Report - 11
Slide 12: 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 recoverin
Slide 13: 2012 Major Launches - Active Safety products
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 - 13
Slide 14: Light Vehicle Growth
Light Vehicle Growth - Long-term market trend remains intact 105.0 ~ 98M Growth Markets 90.0 ~ 79M 32 Rest of World ~ 75M 75.0 ~ 69M Eastern Europe 25 60.0 19 24 China 26 45.0 8 17 16 Developed Markets 11 8 30.0 8 9 Japan 16 12 ~37M 14 ~40M Western Europe ~42M 14 ~34M 15.0 15 13 15 18 No
Slide 15: 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
Slide 16: 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 17: Investments for Growth are Paying Off
Investments for Growth are Paying Off - China 2013F – Market Share* % Autoliv 1,200 14 38 12 LVP ~ 19M 1,000 62 10 M illio n s U S D 800 Sales % of total sales 8 600 6 400 4 2011 – Market Share* % 200 2 Autoliv 0 0 34 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F LVP ~16M 66 Capi
Slide 18: Autoliv China in Brief
Autoliv China in Brief Established 1989 Business with both ACC domestic and non-Chinese Changchun NHA OEMs CHA 10% Beijing 11 facilities with 7,200 ACB Nanjing ACH ACS CTC people Shanghai 9% ACX Complete production Taipei capabilities for passive Guangzhou ACI ACW ACE safety products Techn
Slide 19: Tremendous Need for our Products
Tremendous Need for our Products ALV Q3’12 Financial Earnings Report - 19
Slide 20: Tremendous Need for our Products
Tremendous Need for our Products Road Fatalities -per 10,000 registered vehicles and year 6 5 4 3 2 1 0 China USA Germany Japan World ALV Q3’12 Financial Earnings Report - 20
Slide 21: Autoliv's largest capital investment - New Propellant Facility in China
Autoliv’s largest capital investment - New Propellant Facility in China To meet increasing demand for airbags in Asia Reduces manufacturing and logistic costs Increases Autoliv’s global propellant production capacity by 25% The plant will supply Autoliv’s inflator production facilities in Ch
Slide 22: Expansion of China Tech Center
Expansion of China Tech Center - investing 8 MUSD to extend existing facility To meet increasing demand for engineering capabilities Adds Active Safety engineering capabilities The investment includes an expansion of the laboratory for electronics and technical development ALV Q3’12 Financial
Slide 23: Summary
Summary - 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, Activ
Slide 24: Major Occupant Restraint Suppliers - Net Sales Development
Major Occupant Restraint Suppliers - Net Sales Development 8,000 7,000 6,000 US$ millions 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 09 10 11 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 (**) DIR estimate. Takata Guidance for FY2012 period ending March 2
Slide 25: 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 - 25