Slides
Page 1
Earnings Call Presentation 3rd Quarter 2026 October 23, 2026 October 23, 2026 ALV – Q3 2026 Earnings Call and Webcast Saving More Lives
Page 2
Safe Harbor Statement* October 23, 2026ALV – Q3 2026 Earnings Call and Webcast This report contains statements that are not historical facts but rather forward -looking statements within the meaning of the Pr ivate 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 antici pates 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 assum ptions 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 t o 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 for ward-looking words such as “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “may”, “likely”, “might”, “would”, “should”, “could”, or the negat ive 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 out come 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, incl uding 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 p ort, 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 inflatio n, 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 capit al, or overall business performance; political instability 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 co mpetition; 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 w hich 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 strategi c 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 righ ts; 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 relatio nships with customers and suppliers; the conditions necessary to achive our financial targets; and other risks and uncertainties identified under the headings “Risk Factors” and “Management’s Disc ussion 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 Mobility Global (former S&P Global).; Copyright © Light Vehicle Production Forecast October 2026. All rights reserved. Mobility Global is a global supplier of independent industry information. The permission to use Mobility Global copyrighted reports, data and information does not constitute an endorsement or approval by Mobility Global of the manner, format, context, content, conclusion, opinion or viewpoint in which Mobility Global reports, data and information or its derivations are used or referenced herein.
Page 3
Sales exceeded global LVP by nearly 1 percentage point, reflecting strong growth in India, Japan, and with Chinese OEMs – India sales grew organically by nearly 30% – Sales to Chinese OEMs grew by over 20%, driven by recent launches Adjusted operating margin* reached 9.7%, reflecting strong operational execution and high engineering income Cash flow was strong despite working capital build-up due to strong sales in September Significant shareholder returns – Repurchased and retired shares for $150M – $63 million in dividends paid FY2026 Guidance – Organic sales growth outlook unchanged – Adjusted operating margin* is narrowed to around 10.5% – Operating cash flow outlook remains unchanged; Capex is now expected to be around 4% of sales, versus previous guidance of <5% Expanded virtual crash testing capabilities with Human Body Modelling Safety Suite to accelerate vehicle development while enhancing safety performance Q3’26 Key Highlights – Solid Performance in a Tough Environment October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Inauguration of the Wuhan Technical Center , our second technical center in China. * Non-US GAAP excluding effects from capacity alignment and antitrust related matters Flooding in Thailand significantly disrupted our operations late in the of the third quarter, but is expected to have a limited financial impact, which will be booked primarily in the fourth quarter
Page 4
Q3’26 Financial Overview: Second strongest Q3 ever despite headwinds from declining global LVP and raw materials October 23, 2026ALV – Q3 2026 Earnings Call and Webcast $258 $239 Q3´25 Q3´26 * Non-US GAAP excluding effects from capacity alignment and antitrust related matters $2,706 $2,693 Q3´25 Q3´26 $271 $262 Q3´25 Q3´26 US$ -Millions -0.5% -3% 10.0% Adj. Op. Margin* 9.7% Adj. Op. Margin* US$ -Millions -$19 Consolidated Sales Adjusted Operating Income* US$ -Millions Operating Cash Flow
Page 5
Cost Efficiency October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Positive Momentum Continues Across Most KPIs % US$ -Millions and in relations to sales 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 0 20 40 60 80 100 120 140 160Index Sales in relations to Average Headcount 10% 12% 14% 16% 18% 20% 22% 2023 2024 2025 2026 Direct Labor Productivity Index Gross Margin SG&A and RD&E, net Operating Cash flow LTM
Page 6
Q3’26 Light Vehicle Market Development October 23, 2026ALV – Q3 2026 Earnings Call and Webcast -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% * Light Vehicle Production (LVP up to 3.5 tons) according to Mobility Global @ October 2026. COEMs: Chinese OEMs excluding Volvo Car and Polestar; GOEMs: other vehicle manufacturers operating in China ** Company estimate 60% 80% 100% Normal LevelChina COEMs* China GOEMs* S. America N. America Japan Rest of Asia W.Europe E.Europe Higher safety content markets Global Total -1.9% Approximately 90 bps of headwinds from regional and market mix The call-off situation has worsened, driven by China, while all other regions have normalized LVP* Customer Call-off Accuracy**
Page 7
Q3’26 Sales Growth and Regional Sales Split October 23, 2026ALV – Q3 2026 Earnings Call and Webcast 1) Non-US GAAP measure 2) Light Vehicle Production (LVP up to 3.5 tons) according to Mobility Global @ October 2026. 3) COEMs: Chinese OEMs excluding Volvo and Polestar; GOEMs: other vehicle manufacturers operating in China -$47 $17$2,706 $17 $2,693 Q3´25 Price volume mix Tariff compensations, net Currency Q3´26 -1% Organic growth1 US$ millions -10 pp -5 pp 0 pp 5 pp 10 pp 15 pp China COEMs3 +20pp China GOEMs3 Americas Asia excl. China Europe Outperformance +0.8 pp COEMs represented 58% of sales in China Sales Bridge Organic Sales1 vs. LVP2
Page 8
Q3’26 New Launches – Important Models October 23, 2026ALV – Q3 2026 Earnings Call and Webcast 0 50 100 150 200 250 Q1 Q2 Q3 Q4 2025 2026 BMW iX5/X5 WEY 06/07 from Great Wall Hyundai Avante Haval C06 from Great Wall Product Launches per quarter
Page 9
Financials October 23, 2026ALV – Q3 2026 Earnings Call and Webcast
Page 10
Q3’26 Financial Overview October 23, 2026ALV – Q3 2026 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 Mobility Global @ October 2026 US$ Millions unless specified Q3’26 Q3´25 Sales $2,693 $2,706 Gross Profit $496 18.4% $522 19.3% Adj. Operating Income1 $262 9.7% $271 10.0% Adj. EPS -assuming dilution1 $2.19 $2.32 Adj. RoCE1,2 24.4% 25.5% Adj. RoE1,2 25.2% 28.3% Operating cash flow $239 $258 Dividend paid per share $0.87 $0.85 Stock repurchases $150 $100 Global LVP3 ~22.0M ~22.4M
Page 11
Q3’26 Adjusted Operating Income* Bridge October 23, 2026ALV – Q3 2026 Earnings Call and Webcast • Operations primarily driven by cost reductions activities • RD&E and SG&A include ~2 million unfavorable FX translation effects • Unrecovered tariffs and the dilutive effect from the recovered tariffs had a negative impact of around 35 bps in quarter * Non-US GAAP excluding effects from capacity alignment and antitrust related matters -$9 US$ Millions $17 -$42 -$15 -$1 -$2 $271 $34 $262 0 50 100 150 200 250 300 350
Page 12
Cash Flow October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Continued solid cash generation -US$ Millions unless specified Q3´26 Q3´25 LTM 2025 Net Income $155 $175 $623 $736 Depreciation & Amortization 107 103 437 407 Other, net 22 32 31 26 Change in operating WC -45 -53 51 -12 Operating Cash Flow 239 258 1,142 1,157 Capital Expenditures, net -115 -106 -405 -423 Free Operating cash flow * 124 153 737 734 Cash conversion* 80% 87% 119% 100% Dividends paid 63 65 258 238 Stock repurchases $150 $100 $500 $351 * Non-US GAAP. Cash conversion defined as free operating cash flow in relation to net income Cash Conversion* Operating Cash Flow and Capex, net *
Page 13
Strong Balance Sheet & Cash Flow Supporting Shareholder Returns October 23, 2026ALV – Q3 2026 Earnings Call and Webcast 165 224 225 219 238 192 258 115 352 552 351 350 500 2021 2022 2023 2024 2025 YTD 2026 LTM Dividends Stock Repurchases $ millions ~$2.9 billion in direct shareholder returns over the last 5 years Repurchased over 16 million shares since beginning of 2022, corresponding to ~18% of outstanding shares Shareholder Returns
Page 14
Debt Leverage Ratio* October 23, 2026ALV – Q3 2026 Earnings Call and Webcast 0.0 0.5 1.0 1.5 2.0 Q3´23 Q1´24 Q3´24 Q1´25 Q3´25 Q1´26 Q3´26 * Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability, see reconciliation table at the end of this presentation. ** Non-US GAAP measure, see reconciliation table at the end of this presentation. Times 1.3x 500 1,000 1,500 2,000 Q3´23 Q1´24 Q3´24 Q1´25 Q3´25 Q1´26 Q3´26 Net Debt EBITDA LTM US$ Millions Remains below our long-term target of 1.5x Change vs. previous quarter Net Debt * $64 million higher EBITDA** LTM $6 million lower Long-Term Target: ≤1.5x Net Debt * / EBITDA ** Net Debt* and EBITDA** per the Policy
Page 15
October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Outlook
Page 16
Light Vehicle Production Outlook October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Global Light Vehicle Production* according to Mobility Global in October 2026 . * Light Vehicle Production (LVP up to 3.5 ton) according to Mobility Global @ October 2026 15 16 17 18 19 20 21 22 23 24 25 Q1 Q2 Q3 Q4 2024 2025 2026 -1.9% -4.5% Million units Global Total -1.9% Autoliv guidance is based on global LVP decreasing around -2% in 2026 LVP* per Quarter according to Mobility Global*
Page 17
FY 2026 Guidance October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Q4 2026 vs. Q3 2026: margin expansion expected from: • Higher sales and engineering income • Customer compensation for raw material inflation • Operational improvements, cost efficiencies, automation, and digitalization The updated FY guidance includes; • Approximately $120 million gross raw material headwind, representing a $10 million increase versus the previous guide • Higher logistics costs, driven by elevated freight rates and fuel prices • Cost for the flooding in Thailand Our strong cash flow generation and disciplined capital spending support our continued commitment to delivering attractive shareholder returns Margin expansion is expected both sequentially and year-over-year in Q4 2026, driven by raw material compensations, operational improvements, cost-efficiency initiatives, automation and digitalization* Non-GAAP measure. 0% 2% 4% 6% 8% 10% 12% 14% Q1 Q2 Q3 Q4 2023 2024 2025 2026 Adjusted Operating Margin * Progression
Page 18
Our original FY2026 guidance, set in January, was based on materially lower assumptions for raw materials and other costs Market Headwinds vs. January Mitigation Actions 2026 Mitigation Actions – Offsetting Market Headwinds – ~$90 million additional gross raw material headwind – Higher logistics costs – Higher call-off volatility – Reversal of supplier compensation in Q2´26 – Cost for the flooding in Thailand Strong Mitigation Actions Limit Expected FY2026 Impact ~170-180 bps + Improving direct labor efficiency through automation, digitalization, and continuous improvement initiatives + Accelerating Value Engineering / Value Analysis (VE/VA) initiatives across key programs + Implementing SG&A cost reduction actions and spending controls + Securing raw material cost recoveries through customer compensations + Achieving savings through commercial negotiations with suppliers October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Disciplined execution across commercial, operational, and cost-efficiency initiatives is helping to substantially mitigate adverse impact on profitability
Page 19
Full Year 2026 Guidance1 with Updated Assumptions October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Exchange Rates US$/EUR 0.8814 US$/JPY 157.03 US$/KRW 1,353.5 US$/MXN 18.074 US$/CNY 6.7046 Assumptions LVP Growth Around 2% negative Previously -2.5% FX Around 2.5% positive Unchanged Tax rate4 Around 30% Unchanged (1) Our full year 2026 guidance is based on our customer call-offs and the achievement of our targeted cost compensation adjustments with our customers, including no material changes to tariffs or trade restrictions, as compared to what is in effect as of October 15, 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 increase2 Around 0% Unchanged Adjusted Operating margin2 Around 10.5% Narrowed from ~10.5-11.0% Operating Cash flow3 Around $1.2 billion Unchanged Capex, net % of sales Around 4% Previously <5%
Page 20
Q&A October 23, 2026ALV – Q3 2026 Earnings Call and Webcast
Page 21
Investor Day 2027 Date & Location April 26, 2027 : Auto Shanghai 2027 incl. Autoliv Tech Presentation & guided tour of the auto show April 27, 2027 : Autoliv Investor Day incl. presentations and plant tour Location: Shanghai, China What to expect Autoliv’s strategy, innovation roadmap, and growth opportunities China market trends, growth strategy, and key OEM partnerships Factory visit showcasing automation, digitalization, and smart manufacturing Exclusive access to Auto Shanghai 2027, including Autoliv technology presentations and the latest vehicle launches Registration details and the full agenda will be shared in the coming months For more see: https://www.autoliv.com/capital-markets-day October 23, 2026ALV – Q3 2026 Earnings Call and Webcast
Page 22
October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Saving More Lives
Page 23
ALV – Q3 2026 Earnings Call and Webcast Q3´26 Product Volumes Autoliv Quantities Delivered (Millions unless specified) Q3’26 vs. PY** (%) Seatbelts 33.4 -6% Pretensioners (of which) 23.2 -6% Active Seatbelts (of which) 1.3 -8% Frontal Airbags 14.5 -3% Knee Airbags (of which) 1.6 -10% Side Airbags 37.2 3% Chest (of which) 19.8 2% Head (of which) 15.6 2% Steering Wheels 5.2 3% LVP* (Global) *Mobility Global: October 2026 22.0 -1.9% October 23, 2026
Page 24
October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure "Adjusted Operating margin" 2026 2025 2024 2023 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Operating margin (GAAP) 9.4% 6.8% 8.6% 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 0.3% 2.8% 0.3% 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% 0.0% 0.0% 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 0.3% 2.8% 0.3% 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) 9.7% 9.6% 8.9% 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.
Page 25
October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Reconciliation of Non-US GAAP measure “Leverage ratio & Adjusted EBITDA" (Dollars in millions) 2026 2025 2024 2023 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Net debt1) $1,763 $1,695 $1,774 $1,566 $1,772 $1,752 $1,787 $1,554 $1,787 $1,579 $1,562 $1,367 $1,375 Pension liabilities 175 180 176 169 167 167 163 153 147 140 149 159 152 Net debt per the Policy $1,938 $1,874 $1,950 $1,736 $1,939 $1,919 $1,950 $1,708 $1,934 $1,720 $1,711 $1,527 $1,527 Net income2) $623 $643 $710 $736 $754 $717 $688 $648 $632 $627 $541 $489 $418 Income taxes2) 256 246 246 253 261 255 246 227 141 150 136 123 188 Interest expense, net2, 3) 92 93 93 93 94 96 97 95 93 89 83 80 75 Other non-operating items, net2) 35 40 28 15 20 19 16 16 4 8 1 3 5 Income from equity method investments2) (4) (5) (6) (6) (6) (6) (6) (7) (6) (6) (5) (5) (4) Depreciation and amortization of intangibles2) 437 434 419 407 397 390 386 387 385 384 381 378 371 Less: Capacity alignments2) 110 104 28 23 (1) 6 19 19 121 122 217 218 125 Less: Antitrust related items2) 1 2 4 3 5 6 4 8 7 6 6 4 3 Less: Other Items2) - - - - - - (0) 0 0 (0) 8 8 8 EBITDA per the Policy (Adjusted EBITDA) $1,550 $1,556 $1,523 $1,521 $1,524 $1,483 $1,449 $1,394 $1,376 $1,380 $1,369 $1,297 $1,189 Leverage ratio 1.3 1.2 1.3 1.1 1.3 1.3 1.3 1.2 1.4 1.2 1.3 1.2 1.3 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.
Page 26
October 23, 2026ALV – Q3 2026 Earnings Call and Webcast Reconciliation of Non-US GAAP measure “Net Debt" (Dollars in millions) 2026 2025 2024 2023 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Short-term debt $251 $350 $393 $419 $654 $679 $540 $387 $624 $455 $310 $538 $590 Long-term debt 1,683 1,688 1,699 1,734 1,374 1,372 1,565 1,522 1,586 1,540 1,830 1,324 1,277 Total debt 1,934 2,037 2,091 2,153 2,027 2,051 2,105 1,909 2,210 1,996 2,140 1,862 1,867 Cash & cash equivalents (197) (377) (342) (604) (225) (237) (322) (330) (415) (408) (569) (498) (475) Debt issuance cost/Debt-related derivatives, net 26 34 24 17 (30) (62) 4 (24) (9) (8) (9) 3 (17) Net debt $1,763 $1,695 $1,773 $1,566 $1,772 $1,752 $1,787 $1,554 $1,787 $1,579 $1,562 $1,367 $1,375