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Copyright Autoliv Inc., All Rights Reserved Public Earnings Call Presentation 4th Quarter 2025 January 30, 2026 January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved Public Safe Harbor Statement* January 30, 2026 ALV – Q4 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 global and regional economic conditions, including the impact of 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; potential changes to beneficial free trade agreements and regulations, such as the United States-Mexico-Canada Agreement; changes in geopolitical and other economic and political conditions or developments, including inflation, changes trade policies, tariff regimes, and other developments in and by countries in which we do business that could materially impact supply chains, margins, access to capital, or overall business performance; political stability or geopolitical conflicts; changes in general industry or market conditions, including regional economic 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; volatility or increases in raw material, fuel, and energy costs; changes in consumer and customer preferences for end products; loss of customers or sales; legislative or regulatory changes; 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, including inflation and tariff compensations; 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 or results of tax audits by governmental authorities and changes in our effective tax rate; dependence on key personnel; our ability to meet our sustainability targets, goals and commitments; 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 January 2026. 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 Q4’25 Key Highlights – Record Sales, Operating Cash Flow and Earnings Per Share January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Record Quarterly Sales – Driven by Strong Growth in India and China − Sales outperformed LVP** in all regions − Sales in India exceeded expectations, emerging as the largest contributor to the increase − Sales to Chinese OEMs increased by almost 40% – driven by recent launches Adjusted Operating Margin* declined compared to an exceptionally strong Q4´24 − As expected, customer RD&E reimbursements and out of period compensations declined Y-o-Y − Successfully recovered nearly all tariff-related costs incurred in Q4 ’25 Record cash flow driven by working capital improvement and reduced Capex − Free operating cash flow* exceeded $400 million for the quarter and $700 million for the full year Record EPS from strong earnings and fewer outstanding shares Continued high shareholder returns − Repurchased shares for $150 million and paid a dividend of $0.87 per share Introduced World’s First Foldable Steering Wheel for autonomous driving * Non-US GAAP excluding effects from capacity alignment and antitrust related matters ** Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ January 2026 Autoliv and Tensor have developed the first foldable steering wheel for the Tensor Robocar, expected for volume production in late 2026. This innovation enhances safety and design flexibility for autonomous vehicles.
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Copyright Autoliv Inc., All Rights Reserved Public $420 $544 Q4’24 Q4’25 Q4’25 Financial Overview January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast * Non-US GAAP excluding effects from capacity alignment and antitrust related matters $2,616 $2,817 Q4’24 Q4’25 Consolidated Sales US$ -Millions $349 $337 Q4’24 Q4’25 Adjusted Operating Income* US$ -Millions 8% -4% 13.4% Adj. Op. Margin* 12.0% Adj. Op. Margin* Record sales and operating cash flow* for a fourth quarter Operating Cash Flow US$ -Millions 30%
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 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 Cost Efficiency 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 Partly offset by lower engineering income due to timing
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Copyright Autoliv Inc., All Rights Reserved Public -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 7% Q4’25 Light Vehicle Market Development January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast * Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ January 2026. CEOMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufactures operating in China ** Company estimate Customer Call-off Accuracy** 60% 80% 100% Normal Q4´25 LVP* China COEMs* China GOEMs* S. Americas N. Americas Japan Rest of Asia W.Europe E.Europe Higher safety content markets Global Total +1.3% Approximately 150 bps of headwinds from regional and market mix Lower call-off accuracy both Y-o-Y and sequentially
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Copyright Autoliv Inc., All Rights Reserved Public China 23% Japan 8% Rest of Asia 12%Europe 27% Americas 30% Q4’25 Sales Growth and Regional Sales Split January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast * Non-US GAAP measure $105 -$24 $29 $2,616 $92 $2,817 4.2% Organic growth* Asia 43% Sales Bridge US$ millions Sales by Region Q4´25 %
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Copyright Autoliv Inc., All Rights Reserved Public Q4’25 ― Organic Sales1 Outperforming Global LVP by 3pp January 30, 2026 ALV – Q4 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 @ January 2026 (3) COEMs: Chinese OEMs excluding VolvoCars and Polestar ; GOEMs: other vehicle manufactures operating in China EUROPE +2pp JAPAN -3pp CHINA3 COEMs +34pp Rest of ASIA +11pp Main Net Sales Growth Drivers Stellantis Suzuki Geely Chinese EV BMW Chery Great Wall NIO Outperformance - Organic growth1 vs. LVP2 (Percentage points) CHINA3 GOEMs -8pp AMERICAS +4pp CHINA +5pp
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Copyright Autoliv Inc., All Rights Reserved Public January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Q4’25 Key Model Launches
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Copyright Autoliv Inc., All Rights Reserved Public January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast 2025 in Summary
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Copyright Autoliv Inc., All Rights Reserved Public 2025 Guidance from October 17, 2025 Organic sales increase2 Around 3% Adjusted Operating margin2 Around 10 to 10.5% Operating Cash flow3 Around $1.2 billion Capex, net % of sales Around 4.5% 2025: A Record Year Driven by Strong Sales, Improved Margins, and High Shareholder Returns January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Record Sales – Driven by Strong Growth in India and China − Sales outperformed LVP in all markets excluding China, despite strong ending of the year − LVP exceeded 90 million for the first time since 2018. Third highest LVP ever for a year Adjusted Operating Margin* improved 60 bps − Strong development due to productivity and structural cost saving activities − Tariffs had ~20bps negative impact on the margin Record cash flow – despite tariffs − Record free operating cash flow* of $734 million − Cash conversion* 100% Record EPS from fewer outstanding shares and higher earnings − Adjusted earnings per share* rose 18% to $9.85 Continued high shareholder returns − Repurchased shares for $351 million − Paid a dividend of $3.12 per share. Total was payout was $238 million in 2025 Signed a strategic agreement with CATARC Expanded into advanced automotive safety electronics * Non-US GAAP measure ** Light Vehicle Production (LVP up to 3.5 tons) according to S&P Global @ January 2026
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Copyright Autoliv Inc., All Rights Reserved PublicALV – Q4 2025 Earnings Call and Webcast Lifetime Sales (MUSD) Industry sourcing of new businesses continued at a low level • What to build: OEMs are reconsidering their future product offerings • Where to build: Geopolitical and technological uncertainties • Market mix changes: Lower lifetime sales partly driven by shorter program cycles at many Chinese OEMs, which accounted for one-third of global industry sourcing in 2025 Chinese OEMs accounted for over 30% of Autoliv’s global order intake • First order secured with Chinese OEM for vehicle production in Europe Order Intake Lifetime Sales* January 30, 2026 * Company estimates. Previous year’s lifetime sales not adjusted for recent LVP forecast updates with lower volumes or currencies and cancelation of program by several OEMs OEMs Continued to Reconsider their Future Product Offerings – Resulted in Low Sourcing Activities in 2025 FY2025 Order Intake 2021 2022 2023 2024 2025
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Copyright Autoliv Inc., All Rights Reserved Public FY2025 Order Intake Highlights January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Steering Wheel Switch with integrated ECU Pyro safety Switch for 1,000 V EVs for reliable operations of electrical systems Licensed the Human Body Model for virtual crash testing 0% 10% 20% 30% 40% 50% 2023 2024 2025 Order Intake with new OEMs* % of total order intake Multiple awards supporting industry trends and new markets Expanding safety in India trough advanced safety products such as airbags in the seat cushion and between the front seats Occupant Safety System Development award from major premium manufacture * Company estimates. Previous years not adjusted for recent LVP forecast updates with lower volumes or currencies Rear window Inflatable curtain airbag for protection of rear seat passengers
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Copyright Autoliv Inc., All Rights Reserved Public CHINA3 GOEMs -6pp FY2025 ― Organic Sales1 Growing inline with Global LVP January 30, 2026 ALV – Q4 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 @ January 2026 (3) COEMs: Chinese OEMs excluding Volvo Cars and Polestar ; GOEMs: other vehicle manufactures operating in China (4) Company estimate EUROPE +2pp JAPAN 0pp CHINA3 COEMs +7pp Rest of ASIA +6pp Outperformance - Organic growth1 vs. LVP2 (Percentage points) AMERICAS +3pp CHINA -6pp Autoliv ~44% Others 2025 Global Market Share4
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Copyright Autoliv Inc., All Rights Reserved Public Financials January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved Public Q4’25 Financial Overview January 30, 2026 ALV – Q4 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 @ January 2026 US$ Millions unless specified Q4’25 Q4’24 Sales $2,817 $2,616 Gross Profit $572 20.3% $551 21.0% Adj. Operating Income1 $337 12.0% $349 13.4% Adj. EPS -assuming dilution1 $3.19 $3.05 Adj. RoCE1,2 32% 35% Adj. RoE1,2 37% 41% Operating cash flow $544 $420 Dividend paid per share $0.87 $0.70 Stock repurchases $150 $102 Global LVP3 ~24.0M ~23.6M
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Copyright Autoliv Inc., All Rights Reserved Public Operations Primarily driven by Higher operational efficiency Organic sales growth Q4’25 Margin Bridge January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast * Non-US GAAP excluding effects from capacity alignment and antitrust related matters -$1 -$24 -$2 -$33 $7$349 $41 $337 0 50 100 150 200 250 300 350 400 450 -$12 US$ Millions Adjusted Operating Income* Bridge
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Copyright Autoliv Inc., All Rights Reserved Public 2025 Financial Overview January 30, 2026 ALV – Q4 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 @ January 2026 US$ Millions unless specified 2025 2024 Sales $10,815 $10,390 Gross Profit $2,074 19.2% $1,927 18,5% Adj. Operating Income1 $1,114 10.3% $1,007 9.7% Adj. EPS -assuming dilution1 $9.85 $8.32 Adj. RoCE1,2 27% 26% Adj. RoE1,2 31% 28% Operating cash flow $1,157 $1,059 Dividend paid per share $3.12 $2.74 Stock repurchases $351 $552 Global LVP3 ~90.2M ~87.8M Earnings per share (EPS) US$ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2021 2022 2023 2024 2025
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Copyright Autoliv Inc., All Rights Reserved Public Cash Flow January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Continued solid performance from higher net income -US$ Millions unless specified Q4´25 Q4´24 2025 2024 2023 Net Income $226 $243 $736 $648 $489 Depreciation & Amortization 108 98 407 387 378 Other, net 5 -29 26 -29 -119 Change in operating WC 205 107 -12 53 235 Operating cash flow* 544 420 1,157 1,059 982 Capital Expenditures, net -110 -132 -423 -563 -569 Free Operating cash flow* 434 288 734 497 414 Cash conversion* 192% 118% 100% 77% 85% Dividends paid 66 55 238 219 225 Stock repurchases $150 $102 $351 $552 $352 * Non-US GAAP measure Free operating cash flow US$ million $0 $100 $200 $300 $400 $500 $600 $700 $800 2021 2022 2023 2024 2025
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Copyright Autoliv Inc., All Rights Reserved Public January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Trade Working Capital in Relation to Sales * 0% 5% 10% 15% 20% 25% 30% 35% Strong Trade Working Capital performance despite headwinds from tariffs * Non-US GAAP, see reconsolidation table at the end of this presentation. Values for 2019, 2020, 2021, 2022 and 2023 is Trade working capital in relation to sales at year-end. Since Q1´19 Trade WC has improved by ~$740M
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Strong Balance Sheet & Cash flow Supporting Shareholder Returns 164 224 225 219 238 115 352 552 351 2021 2022 2023 2024 2025 Stock Repurchases Dividends Shareholder Returns $ millions ~$2.44 billion in direct shareholder returns over the last 5 years Repurchased over 13 million shares since beginning of 2022, corresponding to ~15% of outstanding shares
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Copyright Autoliv Inc., All Rights Reserved Public Debt Leverage Ratio* January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast 0.0 0.5 1.0 1.5 2.0 Q1´23 Q2´23 Q3´23 Q4´23 Q1´24 Q2´24 Q3´24 Q4´24 Q1´25 Q2´25 Q3´25 Q4´25 * Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability, see reconsolidation table at the end of this presentation. ** Non-US GAAP measure, see reconsolidation table at the end of this presentation. Net Debt * / EBITDA ** Times 1.1x 500 1,000 1,500 2,000 Q1´23 Q3´23 Q1´24 Q3´24 Q1´25 Q3´25 Net Debt EBITDA LTM Net Debt* and EBITDA** per the Policy US$ Millions remains below our target limit of 1.5x Change vs. previous quarter Net Debt* $203 million lower EBITDA** LTM $3 million lower Long-Term Target: ≤1.5x
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Copyright Autoliv Inc., All Rights Reserved Public Outlook 2026 January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved Public Light Vehicle Production Outlook January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Global Light Vehicle Production* according to S&P Global in January 2026 . * Light Vehicle Production (LVP up to 3.5 ton) according to S&P Global @ January 2026 15 16 17 18 19 20 21 22 23 24 25 Q1 Q2 Q3 Q4 2024 2025 2026 -4.0% 1.4% 0.7% -0.2% Million units LVP* per Quarter Autoliv guidance is based on global LVP decreasing around -1% in 2026
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast 2026 Business Outlook – Driving Margin Expansion Despite Market Challenges 2026 Outlook We expect flat sales vs. LVP -1% Continued outperformance in China, India and South America Sales are expected to decline in North America and Europe due to a limited number of new product launches. • Margin expansion + Higher operational efficiency + Structural cost reductions + Improved LVP call-off volatility − Higher cost for raw materials, especially gold − Higher depreciation costs Continued strong Free Operating Cash Flow* Continued high Operating Cash Flow Higher CAPEX due to new manufacturing capacity to meet demand in growth regions such as India and a second tech center in China Adjusted Operating Margin * on Track Towards Target 6.8% 8.8% 9.7% 10.3% 2022 2023 2024 2025 2026 Around +20 – 70 bps +90 bps +200 bps +60 bps We have a solid foundation for continued attractive shareholder returns and a clear path towards our operating margin target * Non-US GAAP excluding effects from capacity alignment and antitrust related matters, see reconsolidation table at the end of this presentation for historical measures
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Q1´26 Business Outlook Q1´26 Outlook Consistent with typical seasonal patterns, the first quarter is expected to be the weakest of the year We expect adjusted operating margin in the first quarter to decline significantly year-over-year, primarily due to: − Lower LVP − Lower engineering income due to timing effect − Higher D/A in relation to sales − Impact from U.S. tariffs It is also worth noting that Q1 operating income last year included a $12 million positive impact from the sale of our Russian operations -20% -15% -10% -5% 0% 5% Q1´26 Detailed LVP* Outlook China COEMs China GOEMs S. Americas N. Americas Japan Rest of Asia W.Europe E.Europe Higher safety content markets Q1´26 Global Total -4.0%
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Copyright Autoliv Inc., All Rights Reserved Public Full Year 2026 Guidance1 & Assumptions January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Exchange Rates US$/EUR 0.8630 US$/JPY 156.41 US$/KRW 1470.8 US$/MXN 18.367 US$/CNY 7.0780 Assumptions LVP Growth Around 1% negative FX Around 1%positive Tax rate4 Around 28% (1) Our full year 2026 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 January 23, 2026 , 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 excluding effects from capacity alignment and antitrust related matters (3) Excluding unusual items (4) Excluding unusual tax items Full Year 2026 Guidance Organic sales increase 2 Around 0% Adjusted Operating margin2 Around 10.5 to 11.0% Operating Cash flow3 Around $1.2 billion Capex, net % of sales Less than 5%
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Copyright Autoliv Inc., All Rights Reserved Public Q&A January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast
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Copyright Autoliv Inc., All Rights Reserved PublicALV – Q4 2025 Earnings Call and Webcast Q4´25 Product Volumes Autoliv Quantities Delivered (Millions unless specified) Q4’25 vs. PY** (%) Seatbelts 36.2 1% Pretensioners (of which) 25.8 2% Active Seatbelts (of which) 1.5 0% Frontal Airbags 15.5 5% Knee Airbags (of which) 1.7 16% Side Airbags 38.7 11% Chest (Thorax) 20.4 13% Head (Curtain) 16.4 5% Steering Wheels 5.4 4% LVP* (Global) *S&P Global: January 2026 24.0 1.3% January 30, 2026
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Copyright Autoliv Inc., All Rights Reserved PublicALV – Q4 2025 Earnings Call and Webcast FY 2025 Product Volumes Autoliv Quantities Delivered (Millions unless specified) 2025 vs. PY** (%) Seatbelts 143.2 1% Pretensioners (of which) 100.5 2% Active Seatbelts (of which) 6.0 6% Frontal Airbags 60.7 1% Knee Airbags (of which) 6.9 3% Side Airbags 143.4 9% Chest (Thorax) 76.4 10% Head (Curtain) 61.2 4% Steering Wheels 21.0 (0)% LVP* (Global) *S&P Global: January 2026 90.3 3.9% January 30, 2026
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin" 2025 2024 2023 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Operating margin (GAAP) 11.3% 9.9% 9.1% 9.9% 13.5% 8.9% 7.9% 7.4% 8.6% 8.9% 3.6% 5.1% Non-GAAP adjustments: Less: Capacity alignments 0.6% 0.1% 0.0% 0.1% -0.2% 0.4% 0.5% 0.1% 3.5% 0.4% 4.1% 0.1% Less: The Andrews litigation settlement - - - - - - - - - - 0.3% - Less: Antitrust related items 0.0% 0.1% 0.1% 0.0% 0.1% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% Total non-GAAP adjustments to operating margin 0.6% 0.1% 0.1% 0.0% -0.2% 0.4% 0.6% 0.2% 3.5% 0.4% 4.5% 0.2% Adjusted Operating margin (Non-GAAP) 12.0% 10.0% 9.3% 9.9% 13.4% 9.3% 8.5% 7.6% 12.1% 9.4% 8.0% 5.3% We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items. With respect to the Andrews litigation settlement, the Company has treated this specific settlement as a non-recurring charge because of the unique nature of the lawsuit, including the facts and legal issues involved. Accordingly, the table below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Reconciliation of Non-US GAAP measure “Leverage ratio & Adjusted EBITDA" (Dollars in millions) 2025 2024 2023 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Net debt1) $1,566 $1,772 $1,752 $1,787 $1,554 $1,787 $1,579 $1,562 $1,367 $1,375 $1,299 $1,477 Pension liabilities 169 167 167 163 153 147 140 149 159 152 152 159 Net debt per the Policy $1,736 $1,939 $1,919 $1,950 $1,708 $1,934 $1,720 $1,711 $1,527 $1,527 $1,451 $1,636 Net income2) $736 $754 $717 $688 $648 $632 $627 $541 $489 $418 $390 $416 Income taxes2) 253 261 255 246 227 141 150 136 123 188 168 176 Interest expense, net2, 3) 93 94 96 97 95 93 89 83 80 75 67 60 Other non-operating items, net2) 15 20 19 16 16 4 8 1 3 5 1 4 Income from equity method investments2) (6) (6) (6) (6) (7) (6) (6) (5) (5) (4) (4) (4) Depreciation and amortization of intangibles2) 407 397 390 386 387 385 384 381 378 371 363 359 Less: Capacity alignments2) 23 (1) 6 19 19 121 122 217 218 125 117 8 Less: Antitrust related items2) 3 5 6 4 8 7 6 6 4 3 2 1 Less: Other Items2) - - - (0) 0 0 (0) 8 8 8 8 - EBITDA per the Policy (Adjusted EBITDA) $1,521 $1,524 $1,483 $1,449 $1,394 $1,376 $1,380 $1,369 $1,297 $1,189 $1,112 $1,021 Leverage ratio 1.1 1.3 1.3 1.3 1.2 1.4 1.2 1.3 1.2 1.3 1.3 1.6 The non-U.S. GAAP measure “net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. Autoliv’s policy is to maintain a leverage ratio commensurate with a strong investment grade credit rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in relation to adjusted EBITDA*. The long-term target is to maintain a leverage ratio equal to or below 1.5x. 1) Short- and long-term debt less cash and cash equivalents and debt -related derivatives. See Items Affecting Comparability below 2) Latest 12 months. 3) Interest expense including cost for extinguishment of debt, if any, less interest income.
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Reconciliation of Non-US GAAP measure “Net Debt" (Dollars in millions) 2025 2024 2023 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Short-term debt $419 $654 $679 $540 $387 $624 $455 $310 $538 $590 $481 $577 Long-term debt 1,734 1,374 1,372 1,565 1,522 1,586 1,540 1,830 1,324 1,277 1,290 1,601 Total debt 2,153 2,027 2,051 2,105 1,909 2,210 1,996 2,140 1,862 1,867 1,771 2,179 Cash & cash equivalents (604) (225) (237) (322) (330) (415) (408) (569) (498) (475) (475) (713) Debt issuance cost/Debt-related derivatives, net 17 (30) (62) 4 (24) (9) (8) (9) 3 (17) 4 12 Net debt $1,566 $1,772 $1,752 $1,787 $1,554 $1,787 $1,579 $1,562 $1,367 $1,375 $1,299 $1,477
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Reconciliation of Non-US GAAP measure "Trade Working Capital" (Dollars in millions) 2025 2024 2023 Dec 31 30-sep 30-jun 31-mar 31-dec 30-sep 30-jun 31-mar 31-dec 30-sep 30-jun 31-mar Receivables, net $2,236 $2,357 $2,341 $2,205 $1,993 $2,192 $2,090 $2,194 $2,198 $2,179 $2,189 $2,106 Inventories, net 992 1,036 957 913 921 997 936 997 1,012 982 947 986 Accounts payable (2,007) (1,889) (1,945) (1,839) (1,799) (1,881) (1,858) (1,855) (1,978) (1,858) (1,844) (1,683) Trade working capital (non -U.S. GAAP) $1,221 $1,504 $1,354 $1,279 $1,115 $1,307 $1,169 $1,336 $1,232 $1,303 $1,292 $1,409 Quarterly sales $2,817 $2,706 $2,714 $2,578 $2,616 $2,555 $2,605 $2,615 $2,751 $2,596 $2,635 $2,493 Annualized quarterly sales1) 11,269 10,822 10,857 10,312 10,463 10,218 10,420 10,459 11,006 10,386 10,539 9,970 Trade working capital in relation to annualized quarterly sales 10.8% 13.9% 12.5% 12.4% 10.7% 12.8% 11.2% 12.8% 11.2% 12.5% 12.3% 14.1% Due to the need to optimize cash generation to create value for shareholders, management focuses on operationally derived trade working capital as defined in the table below. Trade working capital is an indicator of operational efficiency, which impacts the Company’s ability to return value to shareholders either through dividends or share repurchases. We believe this is useful for readers to understand the efficiency of the Company’ operational capital management. The reconciling items used to derive this measure are, by contrast, managed as part of our overall management of cash and debt, but they are not part of the responsibilities of day-to-day operations management. 1) Calculated as the current quarterly sales multiplied by four. (Dollars in millions) 2022 2021 2020 2019 Dec 31 30-sep 30-jun 31-mar 31-dec 30-sep 30-jun 31-mar 31-dec 30-sep 30-jun 31-mar 31-dec Receivables, net $1,907 $1,893 $1,779 $1,824 $1,699 $1,575 $1,719 $1,846 $1,822 $1,616 $1,180 $1,428 $1,627 Inventories, net 969 924 903 913 $777 922 901 856 798 714 758 772 741 Accounts payable (1,693) (1,503) (1,303) (1,385) (1,144) (1,076) (1,125) (1,215) (1,254) (912) (616) (863) (951) Trade working capital (non-U.S. GAAP) $1,183 $1,314 $1,379 $1,352 $1,332 $1,421 $1,495 $1,487 $1,366 $1,418 $1,322 $1,337 $1,417 Quarterly sales $2,335 $2,302 $2,081 $2,124 $2,119 $1,847 $2,022 $2,242 $2,516 $2,037 $1,048 $1,846 $2,191 Annualized quarterly sales1) 9,340 9,208 8,325 8,497 8,476 7,387 8,088 8,968 10,067 8,149 4,190 7,383 8,765 Trade working capital in relation to annualized quarterly sales 12.7% 14.3% 16.6% 15.9% 15.7% 19.2% 18.5% 16.6% 13.6% 17.4% 31.5% 18.1% 16.2%
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Copyright Autoliv Inc., All Rights Reserved PublicJanuary 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP measure "Adjusted Earnings per share - diluted" (Dollars in millions) Fourth quarter Full year 2025 2024 2025 2024 Earnings per share - diluted (GAAP) $2.98 $3.10 $9.55 $8.04 Non-GAAP adjustments: Less: Capacity alignments 0.23 (0.08) 0.29 0.24 Less: Antitrust related items 0.00 0.03 0.04 0.10 Less: Tax on non-GAAP adjustments (0.01) 0.00 (0.04) (0.06) Total non-GAAP adjustments to Earnings per share - diluted 0.22 (0.05) 0.30 0.28 Adjusted Earnings per share - diluted (Non-GAAP) $3.19 $3.05 $9.85 $8.32 Weighted average number of shares outstanding – diluted (million) 75.7 78.5 76.9 80.4
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Copyright Autoliv Inc., All Rights Reserved Public January 30, 2026 ALV – Q4 2025 Earnings Call and Webcast Saving More Lives