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Copyright Autoliv Inc., All Rights Reserved Public Earnings Call Presentation 2nd Quarter 2025 July 18, 2025 July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved Public Safe Harbor Statement* July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast 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. Such forward- looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “may”, “likely”, “might”, “would”, “should”, “could”, or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, general economic conditions, including inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; geopolitical instability, including the ongoing war between Russia and Ukraine and the hostilities in the Middle East; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations, or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business, including changes in trade policy and tariffs; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law. * Non-US GAAP reconciliations are disclosed in our regulatory filings available at www.sec.gov or www.autoliv.com This presentation Includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast July 2025. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.
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Copyright Autoliv Inc., All Rights Reserved Public Q2’25 Key Highlights – Substantial Sales & Margins Expansion July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Record second quarter for sales, operating income and margin, as well as earnings per share Strong sales development despite the impact from a significant negative regional LVP** mix − Strong sales, primarily driven by Europe and India, along with tariff compensations − The gap between our sales growth and LVP growth continued to narrow in China in the quarter, and we outperformed in June. Substantial margin expansion Y-o-Y − Margin expansion mainly driven by successful execution of operational and commercial efforts − Successfully recovered around 80% of tariffs incurred in the quarter, with the remainder expected to be recovered later this year Progressed with our structural cost reduction activities Continued significant shareholder returns − Repurchased shares for $51 million − Announced the ambition of average annual share repurchases between $300 and 500 million through the end of 2029 − Paid a dividend of $0.70 per share in Q2´25 − Announced a dividend of $0.85 for Q3´25, an increase of 21% compared to Q2´25 * Non-US GAAP measure ** Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ July 2025 Adjusted Earnings per Share* LTM $ $0.0 $2.0 $4.0 $6.0 $8.0 $10.0
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Copyright Autoliv Inc., All Rights Reserved Public $340 $277 Q2’24 Q2’25 Q2’25 Financial Overview July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast * Non-US GAAP excluding effects from capacity alignment and antitrust related matters $2,605 $2,714 Q2’24 Q2’25 Consolidated Sales US$ -Millions $221 $251 Q2’24 Q2’25 Adjusted Operating Income* US$ -Millions 4% 14% 8.5% Adj. Op. Margin* 9.3% Adj. Op. Margin* Record sales and adjusted operating income* for a second quarter Operating Cash Flow US$ -Millions -$63
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Copyright Autoliv Inc., All Rights Reserved PublicJuly 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Gross Margin % SG&A and RD&E, net US$ -Millions and in relations to sales Operating Cash flow LTM US$ -Millions 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 0 50 100 150 200 250 300 50 250 450 650 850 1,050 1,250 Substantial Cost Improvements 0 20 40 60 80 100 120 140 160Index Direct Labor Productivity Index Sales in relations to Average Headcount 10% 12% 14% 16% 18% 20% 22% 2023 2024 2025
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Copyright Autoliv Inc., All Rights Reserved Public -5% 0% 5% 10% 15% 20% Q2´25 Light Vehicle Market Development July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast * Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ July 2025. CEOMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufactures operating in China ** Company estimate Customer Call-off Accuracy** % 60% 80% 100% Normal Q2´25 LVP* % 2.5 pp of headwinds from regional mix; Improved Call-off accuracy both Y-o-Y and sequentially China COEMs China GOEMs S. Americas N. Americas Japan Rest of Asia W.Europe E.Europe Higher safety content markets Global Total +2.7%
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Copyright Autoliv Inc., All Rights Reserved Public China 18% Japan 8% Rest of Asia 11% Europe 30% Americas 33% Q2’25 Higher Sales despite a 2.5pp negative regional LVP** mix July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast * Non-US GAAP measure ** Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ July 2025 $68 -$6 $27 $21 $2,605 $2,714 3.4% Organic growth* Asia 37% Sales Bridge US$ millions Sales by Region Q2´25 %
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Copyright Autoliv Inc., All Rights Reserved Public Q2’25 Sales Growth - Organic Sales1 Outperforming Global LVP by 1pp July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast (1) Non-US GAAP measure (2) Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ July 2025 (3) COEMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufactures operating in China N.AMERICA +5pp EUROPE +5pp JAPAN -3pp CHINA3 COEMs 0pp Rest of ASIA +5pp Our Main Net Sales Growth Drivers Outperformance - Organic growth1 vs. LVP2 (Percentage points) CHINA3 GOEMs +2pp S.AMERICA +20pp China -7pp
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Copyright Autoliv Inc., All Rights Reserved Public July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Q2’25 Key Model Launches * Autoliv is not allowed to communicate the name of the customer or model New EV customer SUV New EV Customer Luxury Sedan
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Copyright Autoliv Inc., All Rights Reserved Public Financials July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved Public Q2’25 Financial Overview July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast (1) Non-US GAAP excluding effects from capacity alignment and antitrust related matters (2) Return on Capital Employed -RoCE and Return on Equity (RoE) (3) Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ July 2025 -US$ Millions unless specified Q2’25 Q2’24 Sales $2,714 $2,605 Gross Profit $501 18.5% $475 18.2% Adj. Operating Income1 $251 9.3% $221 8.5% Adj. EPS -assuming dilution1 $2.21 $1.87 Adj. RoCE1,2 24% 22% Adj. RoE1,2 28% 26% Operating cash flow $277 $340 Dividend paid per share $0.70 $0.68 Stock repurchases $51 $160 Global LVP3 ~22.0M ~21.4M
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Copyright Autoliv Inc., All Rights Reserved Public Operations Primarily driven by Higher operational efficiency Improved call-off accuracy Organic sales growth Q2´25 Margin expansion driven by execution of operational improvement plans July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast * Non-US GAAP excluding effects from capacity alignment and antitrust related matters -$4 $13 $2 -$6 -$2 -$7 $221 $35 $251 0 50 100 150 200 250 300 $30 US$ Millions Adjusted Operating Income* Bridge
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Copyright Autoliv Inc., All Rights Reserved Public Cash Flow July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Continued solid performance from higher net income -US$ Millions unless specified Q2´25 Q2´24 LTM 2024 2023 Net Income $168 $139 $717 $648 $489 Depreciation & Amortization 100 96 390 387 378 Other, net -5 -23 -31 -29 -119 Change in operating WC 15 128 -124 53 235 Operating cash flow 277 340 952 1,059 982 Capital Expenditures, net -114 -146 -484 -563 -569 Free Operating cash flow* 163 194 468 497 414 Dividends paid 54 55 216 219 225 Stock repurchases $51 $160 $333 $552 $352 * Non-US GAAP measure Capex and D&A Cash Conversion*
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Copyright Autoliv Inc., All Rights Reserved Public July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Trade Working Capital in Relation to Sales 0% 5% 10% 15% 20% 25% 30% 35% We view the increase in trade working capital as temporary, as our multi-year improvement program continues to deliver results Increasing receivables following higher sales and tariffs compensations towards the end of the quarter
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Copyright Autoliv Inc., All Rights Reserved Public Debt Leverage Ratio* July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast 0.0 0.5 1.0 1.5 2.0 Q2´23 Q3´23 Q4´23 Q1´24 Q2´24 Q3´24 Q4´24 Q1´25 Q2´25 * Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability ** Non-US GAAP measure Net Debt * / EBITDA ** Times Long-Term Target: ≤1.5x 1.3x 500 1,000 1,500 2,000 Q2´23 Q3´23 Q4´23 Q1´24 Q2´24 Q3´24 Q4´24 Q1´25 Q2´25 Net Debt EBITDA LTM Net Debt* and EBITDA** per the Policy US$ Millions Remains below 1.5x Change vs. previous quarter Net Debt* -$31 million EBITDA** LTM +$34 million
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Copyright Autoliv Inc., All Rights Reserved Public July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast ~30% N. America % of global Sales Customs & Duties Currently, we estimate that the new tariffs on steel, aluminum, and non- USMCA compliant parts could amount to ~$100 million annually In Q2´25, we were largely compensated for the new U.S. tariffs. Total compensations in Q2´25 amounted to $27 million. We are working closely with our customers and suppliers to minimize the impact of tariffs Our ambition and expectation is that we will continue to be compensated for tariffs. U.S. Tariffs – We are well Positioned with Our Footprint and Broad Customer Portfolio
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Copyright Autoliv Inc., All Rights Reserved Public Light Vehicle Production Outlook July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Autoliv guidance is based on global LVP declining around -0.5% in 2025 . * Light Vehicle Production (LVP up to 3.5 ton) according to S&P Global @ July 2025 15 16 17 18 19 20 21 22 23 24 25 Q1 Q2 Q3 Q4 2023 2024 2025 Global Light Vehicle Production* according to S&P in July 3.6% 2.7% 0.2% -4.5% 2025 global light vehicle production The outlook is uncertain, with regional variations influenced by tariffs, slowing economic growth, and other factors. Million units
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Copyright Autoliv Inc., All Rights Reserved Public Our Way Forward Our strategic direction and roadmaps are supporting our customer commitments and financial targets We have a strong performance culture − Clear Key Behaviors to guide us − Clear Mandate and Expectations End-to-End − Continuous Improvement Mindset − Partnerships across the Value Chain, both with Customers and Suppliers July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Growth Profitability Shareholder Return Long-term Light Vehicle Production 1.3% CAGR − GDP Development − Replacement Levels − New Driveline Content Per Vehicle Growth − Regulations − New Interiors − Expectations on Comfort Well identified Key Levers E2E − Productivity Improvement − Automation and Digitalization − Footprint Optimization − Commercial Excellence Proven Deliveries in the Key Lever Areas Strong Balance Sheet Progress towards targets Healthy Cash Conversion and Operating Cash Flow Stable and Increasing Dividend Committed to the Stock Repurchase Program
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Copyright Autoliv Inc., All Rights Reserved PublicJuly 18, 2025 ALV – Q2 2025 Earnings Call and Webcast H2 2025 Business Outlook – Margin Expansion Expected Second half of 2025 Global LVP expected to decline 2.3 %Year-over-Year Higher cost for certain raw materials, mainly non-ferrous metals. In line with our historically normal seasonality, the fourth quarter is anticipated to be the strongest of the year while the third quarter is anticipated to be the weakest quarter of the year. − GLVP in Q3´25 is expected to decline almost 5%, or 1 million units, compared to Q2´25 We successfully navigated tariffs in the first half of the year, giving us confidence for the remainder of the year 0% 2% 4% 6% 8% 10% 12% 14% Q1 Q2 Q3 Q4 2022 2023 2024 2025 Adjusted Operating Margin* Development from 2022 % * Non-US GAAP excluding effects from capacity alignment and antitrust related matters The GLVP outlook remains challenging to predict. Note that, as we have communicated previously our incremental/decremental margin impact typically is 20% to 30% on changes in sales (excluding tariff compensations).
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Copyright Autoliv Inc., All Rights Reserved Public Full Year 2025 Guidance1 & Assumptions July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Full Year 2025 Guidance Organic sales increase 2 Around 3% Adjusted Operating margin2 Around 10 to 10.5% Operating Cash flow3 Around $1.2 billion Capex, net % of sales Around 5% Exchange Rates US$/EUR 0.8822 US$/JPY 144.05 US$/KRW 1380.6 US$/MXN 19.319 US$/CNY 7.1937 Assumptions LVP Growth Around -0.5% FX Around 0% Tax rate4 Around 28% (1) Our full year 2025 guidance is based on our customer call-offs, as well as the achievement of our targeted cost compensation adjustments with our customers including for the new tariffs, no further material changes to tariffs or trade restrictions that are in effect as of July 10, 2025 , as well as no significant changes in the macro-economic environment, changes in customer call-off volatility or significant supply chain disruptions. (2) Non-US GAAP including tariff compensations, but excluding effects from capacity alignment and antitrust related matters (3) Excluding unusual items (4) Excluding unusual tax items
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Copyright Autoliv Inc., All Rights Reserved Public Q&A July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved PublicALV – Q2 2025 Earnings Call and Webcast Q2´25 Product Volumes Autoliv Quantities Delivered (Millions unless specified) Q2’25 vs. PY** (%) Seatbelts 35.8 (0)% Pretensioners (of which) 25.1 2% Active Seatbelts (of which) 1.5 1% Frontal Airbags 15.2 (1)% Knee Airbags (of which) 1.6 (9)% Side Airbags 34.5 7% Chest (Thorax) 18.5 8% Head (Curtain) 14.7 3% Steering Wheels 5.3 (0)% LVP* (Global) *S&P Global: July 2025 22.0 2.7% July 18, 2025
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Copyright Autoliv Inc., All Rights Reserved Public Saving More Lives July 18, 2025 ALV – Q2 2025 Earnings Call and Webcast Saving More Lives