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Årsredovisning 2024
===== SIDA 1 ===== 2024 Annual and Sustainability Report Saving More Lives ===== SIDA 2 ===== Contents Forward-Looking Statements Except for historical information, matters discussed in the annual report are forward-looking statements and are based on management’s estimates, assumptions and projections. Actual results could vary materially . Please review the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2024, and subsequent SEC filings, for factors that could affect the Company’s performance and cause results to differ materially from management’s expectations. The information in this report reflected management’s estimates, assumptions and projections as of January 31, 2025. Autoliv has not made updates since then and makes no representation, express or implied, that the information is still current or complete. The Company is under no obligation to update any part of this document. This report includes content supplied by S&P Global. Copyright © Light Vehicle Production Forecast, January 2025. All rights reserved. Cover: Huaihai Middle Road and North-South Elevated Road, Huangpu District, Shanghai, China. Annual and Sustainability Report 2024 02 ===== SIDA 3 ===== This is Autoliv Year in Brief ......................................................................................................................................... 04 CEO Message ..................................................................................................................................... 06 Vision / Mission / Key Behaviors .......................................................................................................... 08 2024 Financial Summary ..................................................................................................................... 10 Financial and Sustainability Targets .................................................................................................... 12 Strategy for Change Our Strategic Framework ..................................................................................................................... 16 Customer Focus .................................................................................................................................. 18 Competitive Products and Solutions ................................................................................................... 22 Efficient Value Delivery ........................................................................................................................ 28 The Autoliv Way ................................................................................................................................... 32 Sustainability Sustainability Highlights ..................................................................................................................... 36 A Driving Force in Sustainable Mobility .............................................................................................. 38 Sustainability Materiality Assessment ................................................................................................. 40 Sustainability Governance ................................................................................................................... 42 Road Safety ......................................................................................................................................... 44 Climate and Circularity ........................................................................................................................ 47 TCFD Disclosure .................................................................................................................................52 A Safe and Inclusive Workplace ........................................................................................................... 54 Responsible Business ......................................................................................................................... 56 Sustainability Appendix ....................................................................................................................... 62 Investing in Autoliv Creating Shareholder Value ................................................................................................................. 68 Board and Management Board of Directors ................................................................................................................................ 72 Executive Management Team .............................................................................................................. 73 Location and Capabilites ................................................................................................................................ 75 Contacts and Calendar ................................................................................................................................... 76 Multi- Year Financial Summary ........................................................................................................................ 77 03 ===== SIDA 4 ===== THIS IS AUTOLIV Year in Brief *) Non-GAAP Performance Measures. See "Non-GAAP Performance Measures" section in the 10-K filed with the SEC. $10.4b net sales 9.7% adj. operating margin* $1.1b operating cash flow 65,000 associates worldwide 44% market share 30% renewable electricity use 15% improvement in GHG emissions intensity $771m shareholder returns Key Figures 2024 The World’s Automotive Safety Supplier 37 ,000 lives and reduced around 600,000 injuries. Our products saved approximately 04 ===== SIDA 5 ===== A utoliv, Inc. (NYSE: ALV; Nasdaq Stockholm: ALIV.sdb) is the worldwide leader in automotive safety systems. At Autoliv, we challenge and redefine the standards of mobility safety to sus - tainably deliver leading solutions. We develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels, for all major vehicle manufacturers in the world. In 2024, our products saved approximately 37,000 lives and reduced around 600,000 injuries. Autonomous driving, connected cars and electric vehicles are transforming the automotive industry. We are well- positioned to sustainably adapt to these new business opportunities. By leveraging our technological expertise and opera - tional capabilities, we are also exploring new growth oppor - tunities, such as safety for commercial vehicles and pyro safety switches. ASIA 19% CHINA 19% EUROPE 28%AMERICAS 33% Share of total sales Due to rounding effects, the illustration does not sum up to 100%. 05 ===== SIDA 6 ===== 2024 was a year of market fluctuations and geo- political uncertainties. We nevertheless remained focused and resilient, and performed well. Chang- ing market dynamics together with advancements in electrification and automation are creating both new challenges and business opportunities, and we are well positioned to leverage these trends. Market development The automotive industry is undergoing major changes, and we are responding and adapting to this new normal. Light vehicle sales have decreased in several regions, inflation remained high, and although the volatility in Light Vehicle Production (LVP) improved, it remained above pre-pandemic level. We are successfully navigating these challenges and delivered a solid performance for the year with improvements to our margins, our profitability , and cash flow . Our positive long-term outlook for LVP remains as we consider the current macro-economic weakness and technological uncertainty to be temporary . Financial performance and shareholder value creation I am proud of the significant progress and achievements we have made. We anticipated the current challenges in the industry at an early stage and implemented proactive efficiency and cost-saving initiatives with a particular focus on Europe and the Americas. To support our growth we are investing in new facilities in China, Vietnam, and India. We are opti - mizing our footprint in Europe. Furthermore, we are continuing to seek the best production locations to support our customers. As a result, our position remains strong. Despite a lower LVP, we managed to improve our adjusted operat - ing margin* through effective cost control and price management, along with the successful execution of strategic initiatives. Once again, we outperformed global LVP. We consider it strategically important that we significantly strengthened our position with domestic Chinese OEMs in 2024, and that our sales in India grew considerably . Our Indian opera - tions now account for more than four percent of our global sales. THIS IS AUTOLIV CEO Message “The automotive industry is undergoing major changes, and we are responding and adapting to this new normal.” Mikael Bratt President and CEO Well-Positioned in the Changing Automotive Industry *) Non-GAAP Performance Measures. See "Non-GAAP Performance Measures" section in the 10-K filed with the SEC. 06 ===== SIDA 7 ===== Over the years, Autoliv has shown its ability to generate solid cash flow and regularly deliver value to shareholders using both dividends and share repurchases. 2024 was no exception as we returned a total of $ 771 million to shareholders as we increased the dividend per share and repurchased 5.1 million shares. The share repurchase mandate has been extended by one year to the end of 2025. Development in the Chinese market Autoliv is the leading automotive safety supplier to both global and domestic OEMs in China, and our China division contributed 19% to Autoliv’s global sales in 2024. Chinese light vehicle manufacturers have become increasingly important contributors to Autoliv’s sales. Our market share with the fast-growing domestic OEMs increased significantly as our sales grew by 24% to this group. We see further potential for higher sales from market share gains as well as increasing safety content per ve- hicle. Over the past decade, we have invested significantly in China, pi- oneering innovation in safety systems supporting real-life situations. We work with local universities, research institutes, and leading car manufacturers to advance automotive safety technologies. In June 2024, we partnered with XPENG AEROHT, one of Asia’s leading flying car innovators, to develop safety solutions for future mobility . Combining XPENG AEROHT’s technology with our safe- ty expertise will allow us to play a key role in this emerging field. In December , we also signed a new strategic collaboration agreement with Jiangling Motors Co., Ltd (JMC), a renowned Chinese automo- tive manufacturer . The partnership aims to leverage our respective strengths to advance innovation and facilitate global expansion. Leading through innovation and quality We maintain our leadership by consistently delivering on our cus - tomer commitment and achieving performance improvements through innovation, quality , operational excellence, and effective project execution. In a highly competitive market, it is vital that we continually evalu- ate market dynamics and develop products and solutions to meet evolving demands. We not only think about what our customers want today but also understand what our customers will need in the future. Accelerated innovation is essential and we seek to improve our development of new safety solutions for the market, including safety products adjusted to new seating positions and products for advanced driver-assistance systems. Innovation requires diverse perspectives. Autoliv’s Research Advisory Board has supported the scientific basis for our product development for the past 40 years. The Research Advisory Board includes international experts in traffic safety , vehicle technology , and biomechanics, who contribute their ideas to advance Autoliv’s technological direction. During the year , we made further progress within the area of Mo- bility Safety Solutions regarding new safety systems for a broader range of commercial vehicles and pyro safety switches for electrical vehicles. The automotive industry , characterized by complex products and shorter development cycles, along with a higher number of recalls, places a strong emphasis on quality . We prioritize quality throughout the entire value chain, and we focus on optimizing the fi- nal result rather than specific tasks. Our targets are zero critical qual- ity issues and zero recalls. Progress on our climate efforts Sustainability is a vital part of our vision of Saving More Lives and we strive to integrate it into our daily decision-making. Our sustain - ability approach focuses on four areas, with specific targets. Our business directly contributes to the realization of several UN Sus - tainable Development Goals (SDGs) and, as a UN Global Com - pact signatory , we are committed to following its principles. In the area of Climate and Circularity , we increased our renew - able electricity usage during 2024. There has been a significant im - provement in recent years, from 1% in 2021 to 30% in 2024. We continued to increase our use of low-carbon materials, which requires broad cross-functional collaboration from sales, product design and engineering to operations and sourcing. Nota - ble examples include an increased share of recycled magnesium in our products and the introduction of airbags made from 100% recycled polyester . In 2024, we completed our third supplier climate survey , de - signed to assess the climate efforts of our various suppliers. This data, along with climate-related requirements, support our work in the supplier evaluation and dialogue processes. In addition, we launched the supplier climate accelerator program allowing us to work closely with suppliers on reducing their greenhouse gas (GHG) emissions. These steps are vital to Autoliv’s commitment to reach carbon neutrality in our own operations by 2030 and achieve net-zero GHG emissions across the supply chain by 2040. Autoliv Safety Foundation We founded the Autoliv Safety Foundation in 2024. The purpose of the foundation is to promote research and development in traffic safety and related areas to create a better and safer world. Addi - tionally , the foundation aims to provide assistance in humanitarian disasters in regions where Autoliv operates. A project supporting road safety in Mexico was initiated at the end of the year . Collaboration for Saving More Lives I believe that our success depends on strong collaboration within the organization and with customers and suppliers. Identifying cus - tomer needs and finding growth opportunities are essential for pro - viding value and ensuring business progress. As a market leader , we are paving the way and aim to trans - form the industry . Market leadership is achieved by being best-in- class when it comes to delivering on our customer commitment. This requires setting ambitious targets and engaging in focused teamwork to find efficient ways of working and optimizing the entire value chain. Collaborating with committed colleagues worldwide assures me that we can transform the industry and realize our vision of Saving More Lives. Mikael Bratt President and CEO 07 ===== SIDA 8 ===== Saving More Lives Our Vision THIS IS AUTOLIV Vision / Mission / Key Behaviors Every day , our products save lives. Every time they do, there is a person and a story behind it. Autoliv aims to save 100,000 lives annually , supporting our overall vision of Saving More Lives. By contributing to safer journeys, we can help more people to live life to the fullest, or as we say , More Lives Saved – More Life Lived. 08 ===== SIDA 9 ===== Our Key Behaviors As the industry market leader , what we do matters. Our desired Key Behaviors express the essence of how we work. They define how we strive to achieve success together with colleagues, customers and partners. Take Ownership Be Curious Add Value Collaborate Make it Easy Providing World Class Life-Saving Solutions for Mobility and Society Our Mission 09 ===== SIDA 10 ===== Autoliv achieved record operating income and operating cash flow , thanks to effective cost reductions and commercial recoveries, despite continued market headwinds from high infla- tionary pressure and a volatile Light Vehicle Production (LVP). 2024 Financial Summary THIS IS AUTOLIV 2024 Financial Summary Americas 33% 27% China 21% Japan 8% Americas 33% China 19% Europe 28% Asia 19% Sales by Division In 2024, Autoliv’s sales performance varied across its divisions, with strong growth in Europe and Asia. Due to rounding effects, the illustration does not sum up to 100%. 10 ===== SIDA 11 ===== Return on Equity % 0 5 10 15 20 25 30 2423222120 Operating Cash Flow & Cash Conversion* US$ (Millions) and in % 500 600 700 800 900 1,000 1,100 2423222120 0 50 100 150 200 250 300 Operating Cash Flow Cash Conversion* Return on Capital Employed % 0 5 10 15 20 25 2423222120 Leverage Ratio Net Debt/ EBITDA 0,0 0,5 1,0 1,5 2,0 2,5 3,0 2423222120 Long-Term Target: 1.0x 0.5-1.5x Long-Term Range Adjusted Operating Profit & Margin* US$ (Millions) and in relation to sales % 0 200 400 600 800 1,000 1,200 2423222120 0 2 4 6 8 10 12 Adjusted Operating Income* Adjusted Operating Margin* Sales and Global LVP US$ (Millions) and Units (Millions) 0 2,000 4,000 6,000 8,000 10,000 2423222120 15 35 55 75 95 Sales LVP Organic Growth* vs. LVP Change Percentage Points 0 2 4 6 8 2423222120 Outperformance Gross Profit Gross Margin Gross Profit & Gross Margin US$ (Millions) and in relation to sales % 0 500 1,000 1,500 2,000 2423222120 10 12 14 16 18 20 *) Non-GAAP Performance Measures. See "Non-GAAP Performance Measures" section in the 10-K filed with the SEC. 11 ===== SIDA 12 ===== 100,000 lives saved per year Ambition THIS IS AUTOLIV Financial and Sustainability Targets Leveraging Industry Trends for Growth and Profitability Guided by our vision of Saving More Lives and our mission to provide world-class, life-saving solutions for mobility and society , we have set short- and long-term targets in key areas. Financial targets Our ability to consistently outperform light vehicle production and leverage our growth into higher profitability is rooted in our continuous investment in new safety technologies, a strong fo- cus on quality , and a superior and cost-effective production and engineering footprint. Sustainability targets Sustainability is an integral part of our business strategy and an important driver for market differentiation and stakeholder value creation, helping to ensure that our business will continue to thrive and contribute to sustainable development in the long term. 12 ===== SIDA 13 ===== *) Non-GAAP Performance Measures. See "Non-GAAP Performance Measures" section in the 10-K filed with the SEC. Sustainability Key Targets and Ambitions 100,000 Lives saved per year A Safe and Inclusive Workplace Climate and Circularity Responsible Business 0.30 Recordable Incident Rate by 2025 Carbon neutrality in own operations by 2030 100% in target group completed Antitrust training 1 reported unsafe act or condition per employee per year Net-zero emissions across our supply chain by 2040 100% in target group Code of Conduct certified Year-over-year improvement in employee experience Year-over-year improvement in energy intensity 100% direct material suppliers sustainability audited 22% women in senior management by 2025 Year-over-year improvement in waste intensity 100% direct material suppliers respond to conflict minerals survey Saving More Lives Target Long- Term Ambition Financial Key Targets and Ambition ~13% Adjusted operating margin* 4-6% Average annual organic growth* ~12% Adjusted operating margin* 13 ===== SIDA 14 ===== The Autoliv Strategy Strategy for Change 14 ===== SIDA 15 ===== 15 ===== SIDA 16 ===== STRATEGY FOR CHANGE Our Strategic Framework Our Strategic Framework Autoliv's Strategic Framework consists of four elements that directly support our financial and sustainability objectives and targets. Our focus areas require everyone's commitment in order to realize our strategy and meet our objectives and targets: Customer Focus • We create value for the customer by creating a fit between the customer need and our offering Competitive Products and Solutions • Develop competitive products and solutions to meet the identified customer needs • Create efficient processes and actively manage our portfolio to deliver on our profitability target s Efficient Value Delivery • We align our value chain to ensure value is delivered to our customers at the right time, in the right place, at the right cost and with the right capital intensity The Autoliv Way • The Autoliv Way gives us a common view of what great looks like at Autoliv and how we get there 16 ===== SIDA 17 ===== The Autoliv Way 17 ===== SIDA 18 ===== Our strategy , business priorities and targets are deeply rooted in the growing global demand for traffic safety . 1.2 million lives are lost annually on the roads according to the World Health Organi- zation. Vulnerable road users – pedestrians, cyclists, and motor- cyclists – make up about half of these fatalities. Road traffic accidents are a major cause of death among all age groups and the leading cause of death among children and young adults between the ages of 5 and 29. In addition, tens of millions suffer non-fatal traffic-related injuries, causing not only human suffering, but also estimated costs of 1-3% of global GDP. This underlines the importance of our commitment to save more lives and reduce the number of injuries on our roads. Market development The automotive safety market is driven by two fundamental fac- tors: Light Vehicle Production (LVP) and safety content per vehi- cle (CPV). In the long term, new technologies such as autono- mous driving and drivetrain electrification are expected to have positive effects on the safety CPV . With advanced protective systems for new flexible seating positions, safety integration in seats, human-machine inter- face in steering wheels, and protection systems outside the vehicle for vulnerable road users, there is an increasing need for innovations in safety systems. In the medium term, CPV is expected to grow mainly due to increased government regula- tions and test rating requirements in growth markets, but also as a result of higher installation rates of knee and center airbags, more advanced steering wheels and seatbelt systems in more mature markets. Market position Our long-term focus on customer commitment, through quality , delivery and cost in everything we do, is the foundation for our long-term success. We have been involved in less than 2% of re- calls of airbags and seatbelts in the last 10 years, an important indicator that quality is always at the core of what we do. Since 2018, our market share has increased by 5 percentage points to 44%, excluding sales of inflators and other components. Our market position is strong in all product categories, with 44% in airbags and steering wheels and 45% in seatbelts. All of our largest regions have increased their market shares since 2018, to 47% in Americas, 52% in Europe, 33% in China and 45% in Asia excluding China. We consider our key competitors to be ZF Lifetec, a subsidiary of ZF Friedrichshafen AG, and Joyson Safety Systems, a subsi- diary of Ningbo Joyson Electronic Corp. In Japan, Brazil, South Korea and China, we also compete with a number of domestic suppliers, often with close ties to domestic vehicle manufactu- rers. Global Light Vehicle Production LVP has increased at an average annual growth rate of 1.8% since 1997 . However , global LVP has declined from a peak of 92 million in 2017 , to 87 million in 2024. We expect that LVP will continue to grow both in the medium and in the long term. Most of the growth is expected to come from markets in Asia and South America. Safety Content Per Vehicle A global development towards increased safety standards with stricter regulations and increasingly stringent rating frameworks is a strong driver of safety content in vehicles. Other drivers are the premium vehicle trend and the increasing focus on safety in medium- and low-income markets. By continuously researching, developing and introducing new technologies with higher value- added features, Autoliv can influence safety content per vehicle. In 2024, the global average CPV remained approximately $260, as CPV growth in most markets was offset by a significant negative mix effect due to strong LVP growth in low CPV markets and segments. This is considered a temporary effect, and we ex - pect the automotive safety market to continue growing at an annu- al rate of 1-2%. In recent years, India has introduced regulations leading to mandatory frontal airbags for all new models, and most vehicle manufacturers have also decided to make side airbag systems standard on future vehicles. Strengthening Our Position in a Changing Market STRATEGY FOR CHANGE Customer Focus 18 ===== SIDA 19 ===== Content per Vehicle 1) US$ per vehicle 0 50 100 150 200 250 300 350 400 450 IndiaSAChinaEEUJapanWEUNA Average 2024: ~$260 2024 1) Company estimates. Includes seatbelts, airbags, steering wheels and pedestrian safety, excluding sales of components such as inflators. Market Share by Product Area 1) Autoliv global market share 44% Global Industry Leader 1) 44% 45% Airbags and Steering Wheels Seatbelts 2015 19 ===== SIDA 20 ===== Building on a long history of collaboration with vehicle manu- facturers (OEMs), Autoliv has one of the industry’s most diver- se customer bases reflecting a strong position with mass market brands, premium brands, and new entrants to the automotive industry . Technology-driven trends are disrupting the automoti- ve industry , driving collaboration to address the challenges and opportunities that the industry is facing, notably connectivity , automation, emissions and safety . In the last two years, Autoliv has announced partnerships with five leading Chinese OEMs to address opportunities and challenges in the rapidly evolving glo- bal automotive landscape. Autoliv currently delivers products and solutions to about 100 vehicle brands around the world and holds a leading market po- sition with most major OEMs. During 2024, we launched a record number of products on a number of important new vehicle mo- dels, especially in China, supporting our future growth. Sales by customer In 2024, our top five customers represented 44% of sales and the ten largest represented 71% of sales. This reflects the concen- tration in the automotive industry . The five largest customers in 2024 accounted for 41% of global Light Vehicle Production (LVP) and the ten largest for 59%. The top ten customer list includes four Asian vehicle manufacturers. Asian vehicle producers have steadily become increasingly important, built on our strong lo- cal presence and our global manufacturing footprint. As a group, Asian OEMs now represent around 47% of our global sales, whereof Chinese OEMs accounted for 7 percentage points. Glob- ally , European-based brands accounted for 30% of our sales in 2024. U.S.-based brands (including Chrysler and new EV OEMs) accounted for 21%.The fastest growing customer in 2024 was Geely followed by Mercedes and Renault. Sales by region With operations in 25 countries and one of the broadest customer bases of any automotive supplier , Autoliv has the best global foot- print in the industry . In 2024, the total Asian market, accounted for 39% of Autoliv’s sales. The second largest market was Americas, representing 33% of sales. The European market accounted for 28% of sales in 2024, which is roughly 10 percentage points less than a decade ago, reflecting a weak LVP as well as our strong market share gains in Asia and Americas over the past few years. ~100 Brands Autoliv delivers products to STRATEGY FOR CHANGE Customer Focus Strong and Diversified Customer Base 20 ===== SIDA 21 ===== Sales by Product Sales by DivisionSales by Customer Important Launches in 2024 Onvo L60 Nissan KicksSubaru Forester Toyota 4Runner Nissan Patrol/Armada Zeekr 7X Mercedes G-Class LEVC L380 Lynk&Co Z10Tank 700 Tata Curvv SeatbeltsAirbags 32% 68% BMW 4% Hyundai 8% VW 9% Toyota 9% Stellantis 9% Honda 9% Ford 7% GM 6% Nissan 5% Suzuki 2% EV Maker 4% Mercedes 5% Volvo 2% Renault 4% Others 13% Subaru 2% Geely 2% Americas 33% 27% China 21% Japan 8% Americas 33% Europe 28% China 19%Asia 19% Due to rounding effects, the illustration does not sum up to 100%. 21 ===== SIDA 22 ===== STRATEGY FOR CHANGE Competitive Products and Solutions PYRO SAFETY SWITCH Prevents fire and electrocution Pyro safety switches can disconnect or cut power during/after an accident. 4 ACTIVE HOOD LIFTER Reduces pedestrian head injuries Active hood lifters help to mitigate the impact of a pedestrian's head against the structure beneath the hood, meaning the engine, suspension, etc. 3 5 DRIVER AND PASSENGER AIRBAG Saves lives and reduces injuries The driver airbag reduces fatalities in frontal crashes by approximately 25% (for belted drivers) and reduces serious head injuries by over 60%. 1 PEDESTRIAN AIRBAG Protects pedestrians The pedestrian airbag aims to mitigate and reduce the severity of a head impact in case of a pedestrian-vehicle accident. 2 12 CENTER AIRBAG Enhances row protection The center airbag can prevent row passengers from colliding with each other during side impacts. 11 INTEGRATED CHILD BOOSTER SEAT Provides protection and comfort The integrated booster seat is specially designed to provide safety for children, together with the car's seatbelt. KNEE AIRBAG Reduces leg injuries Knee airbags, which deploy from a vehicle’s lower dashboard, distribute the impact forces on an occupant's legs, thereby reducing leg and knee injuries. Additionally , they are designed to control the movement of the occupant so that the driver and pas - senger airbags can provide optimal protection. Based on our extensive research into real-life accidents, we develop and engineer automotive safety solutions to save more lives and prevent injuries on the roads. Products and Solutions – Autoliv Inside 22 ===== SIDA 23 ===== MOBILITY SAFETY SOLUTIONS Safety Systems for Commercial Vehicles Accidents where commercial vehicles are involved often result in severe outcomes due to their weight and size. Autoliv designs and sells specific safety solutions, including airbags, seatbelts, steering wheels, and pyro safety switches, for commercial vehicles such as trucks, buses, and more. SIDE AIRBAG Protects in side collisions Side airbags reduce the risk of chest injuries by approximately 25%. With dual-chamber side airbags, both the pelvis and the chest areas are protected which further reduces the risk of serious injuries in side- impact crashes. SEATBELT Top life-saving device Seatbelts are considered the primary restraint system, because of their vital role in occupant safety , and can reduce fatalities by as much as 45%. 9 SIDE-CURTAIN AIRBAG Reduces head injuries Reduces the risk of life threatening head injuries by approximately 50%. 10 STEERING WHEEL With the lives of others in your hands The steering wheel is a vital part of the safety system and controls many of the vehicle’s functions. 6 BELT IN SEAT Ensuring the effectiveness of the belt Integrating the seatbelt in the seat supports improved safety in reclined seating posi - tions, a feature used in self-driving vehicles, and ensuring the belt remains properly posi - tioned and effective. 7 8 23 ===== SIDA 24 ===== Delivering on our vision of Saving More Lives and maintaining competitiveness requires innovative strategies and solutions. As societal trends and technological advancements trans- form the mobility landscape, we are dedicated to advancing the industry through innovation. The rapid advancement of new technologies and shifting demo- graphics will shape the future of our industry . Global megatrends such as automation, electrification, and connectivity are trans- forming the future transport system. Our understanding of these trends, paired with our approach to real-life safety , enables us to innovate and stay competitive. We challenge and redefine the standards of mobility safety to sustainably deliver leading solutions. Our research and inno- vation capabilities are well-equipped to deal with electrified and automated cars and to create specially designed safety prod- ucts to protect vulnerable road users. A focus for our research teams is creating innovative occu- pant safety solutions for new interior layouts, which may arise as driver assistance systems advance towards automated driving. Our approach to Saving More Lives in real-life situations The Autoliv Circle of Life is our structured approach as we go be- yond standardized test scenarios to save more lives in real-life situations. An important step in this approach is to conduct traf - fic safety research to verify or develop new test methods and vir- tual tools. By using these methods and tools we can efficiently evaluate the reduction in injury risks from new innovations. This research-based approach has enabled Autoliv to be a leader in automotive safety technology . Occupant protection in future cars Autonomous driving will accommodate more relaxed seating positions and flexible interior layouts in future cars. This could lead to a different balance of seatbelt to airbag restraint and shoulder to lap belt forces. At the University of Virginia, researchers observed iliac wing fractures due to high lap belt forces during tests. Reducing these forces is possible with load limiting, a concept wide- ly used for shoulder belts in standard seating positions. We utilized the research in virtual simulations with Human Body Models, to show that applying lap belt load-limiting on both anchor and buckle attachment points reduces pelvis forces. Testing prototypes of an advanced 3-point seatbelt with double lap belt pretensioning and load limiting showed it is technically feasible and can reduce injury risks. Innovation as an Enabler to Save More Lives STRATEGY FOR CHANGE Competitive Products and Solutions 24 ===== SIDA 25 ===== Based on our research we have developed a buckle-load limiter that offers a compact design that enhances efficiency and sim- plifies implementation, while enabling our customers to achieve better safety system performance. This new product limits the load to the pelvis where necessary , for example in some reclined seating positions, contributing to reducing pelvis and thoracic injuries. Driver monitoring cameras integrated into steering wheels Another vehicle-interior innovation is a camera-based driver monitoring system integrated into the steering wheel. Position- ing the monitoring system centrally enhances the detection of driver engagement and drowsiness, making distraction detec- tion more efficient compared to placing the camera in other loca- tions within the car . The integrated monitoring system can also detect seatbelt misuse and classify drivers, enabling personalized protection when paired with Autoliv’s expertise in restraint design. Developing safety for mobility and society A major focus area for us is new safety solutions driven by the evolution of mobility and society . To expand into new markets, Autoliv’s Mobility Safety Solutions leverage our technologi- cal know-how , operational capabilities, and global footprint. In 2024, we enhanced our commercial vehicle product offerings Real Life Safety Crash Statistics on a Macro Level Start of Production In-Depth Studies of Crashes and Incidents Biomechanics and Human Factors Finding the Best Technology for Safety Needs Developing New Test Methods Validation of New Safety Systems for Real-Life Traffic The Autoliv Circle of Life for Traffic Safety 25 ===== SIDA 26 ===== and expanded our electrical safety solutions with pyro safety switches and pyro technology for high- and medium-voltage ap- plications. Additionally , we supplied components to customers in both the automotive industry and other sectors. Motorcycle and bike riders have not experienced the same level of safety advancements as car occupants. Autoliv’s ex - tensive research into motorcycle and bike riding behavior and crashes has led to the development of two sets of cost-effective airbag systems: on-vehicle motorcycle safety solutions and on- rider safety solutions. The triple helix model of innovation at Autoliv In an ever-evolving world, we encounter numerous challenges that are beyond our capacity to resolve ourselves. At Autoliv , col- laboration is a key determinant of success. We frequently operate according to the triple helix model of innovation, which refers to the cooperative relationship among academia, industry , and government, aiming to drive economic and social development. Working together across various sectors can align private sector innovation with societal objectives, directing technologi- cal progress towards areas that provide the greatest benefit to society . We strategically choose our partners to develop our in- novation capabilities, stay ahead of the competition, speed up our time to market, and become more efficient in R&D. We collaborate with top universities, institutes, and start-ups globally in our core competence areas and beyond. By actively participating in research platforms and international projects, as well as partnering with regulators and policymakers, Autoliv supports and accelerates evidence-based safety enhance- ments for all road users. Collaboration Industry partners Academia Policy makers Saving More Lives Ambition to save 100,000 lives annually Growth Outgrowing the market New products and services New businesses Innovative Capabilities Future Advantages Operational Capabilities Efficiency , Quality and Standardization Differentiating Capabilities Competitive Advantages The Bernoulli AirbagTM PACE Pilot Award Finalist Autoliv’s revolutionary technology found within The Bernoulli Airbag TM Module was recognized in 2024 by Automotive News. From many cutting-edge technologies, The Bernoulli Airbag TM Module was named a PACE Pilot Finalist for 2025. The PACE Pilot Award recognizes advancements under development, with new materials, fresh ideas, creative processes and bold execution. STRATEGY FOR CHANGE Competitive Products and Solutions 26 ===== SIDA 27 ===== Our Real-Life Approach to Innovation Foldable steering wheel for self-driving vehicles Center airbag for rear seat passengers Door mounted inflatable curtain airbag for first and second row protection Advanced airbags for self-driving vehicles with foldable steering wheels Steering wheels for commercial vehicles with hands-on-detection and heating Lower cost and lower-carbon footprint airbags based on recycled materials 27 ===== SIDA 28 ===== Operational Excellence Throughout the Product Lifecycle We align our value chain to ensure value is delivered to our customers at the right time, in the right location, with the right quality , at the right cost and with the right capital intensity . STRATEGY FOR CHANGE Efficient Value Delivery 28 ===== SIDA 29 ===== Develop product strategy , plan, and roadmap Our product development begins well before we receive custom- er inquiries. We engage in safety research, innovation, and the development of generic technologies to ensure we are prepared with the right products and solutions when the market needs them. Upon securing a business opportunity , we tailor our solutions to fit the customer’s specific system and source the appropriate suppliers. Autoliv leads the automotive safety industry by consistently advancing through innovation, quality , operational excellence, and effective project execution. We maintain our top position by delivering exceptional value to our customers and continuously enhancing performance. Our strategic product planning process strengthens cross- functional collaboration and plays a central role in understand- ing what our customers want and what the market needs. Innovate and develop products and solutions With strategic product planning in place based on our real-life safety approach and market insights, the product development process now begins. As the market evolves, we constantly chal- lenge ourselves and reinvent the way we develop products and solutions. Our end-to-end product development process is about ma- turing the technology and ultimately ensuring that the product or solution is robust enough to be produced at scale and imple- mented flawlessly into the customer system. Sell on product plan Commercial excellence is part of our product lifecycle, where value creation and customer focus are at the core. We aim to ex - ceed our customers’ expectations throughout the entire lifecycle to achieve long-term profitable growth as their preferred partner . Commercial excellence covers the entire product lifecycle and requires coordination and support from divisions, functions, and product lines. Managing and executing customer projects Once we reach the stage of the product lifecycle of having secured new business, the next step is to carry out a customer application project to ensure our solutions fit into the specific customer sys- tem. We committ to a date when serial production will start, and we also committed to a price. In this phase, time, cost, and quality are of the essence to ensure a flawless launch and delivery . Produce, maintain, and improve Once we have taken our product through planning, sales, and de- velopment, it is finally time to start serial production. The Autoliv Production System (APS) provides a framework for managing our global production operations, ensuring efficiency and growth. It is fundamental to every single part of our company – particularly when it comes to manufacturing. Autoliv has a strong history of implementing improvements under the APS framework, guiding us to operational excellence by focusing on learning, standardization, and continuous im- provement. 29 ===== SIDA 30 ===== Every year , we compete in several hundred ten- ders for new business. To remain the preferred partner for our customers, we work diligently with quality , reliability , technology , and flexibility . This is, and has been, instrumental in building our business and brand over the last 70 years. The trust our customers have in Autoliv is further supported by incorporating sustainability into everything we do. We are uniqu- ely positioned to benefit from the industry transformation. Our ability to consistently outperform market growth is rooted in a strong focus on innovation, quality , and a superior production system serving around 100 car brands globally . To ensure that we maintain and strengthen our position as the industry leader , we have developed a number of strategies. Innovation Our ability to consistently outperform market growth is depend- ent on our ability to provide new safety technologies. We have accelerated our innovation agenda, focusing on key industry technology and product trends. A major focus area is new pas- sive safety solutions driven by the evolution of new interiors for electrical and self-driving vehicles. Quality leadership (Q5) Continued focus on quality is imperative for remaining the pre- ferred partner for our customers. Accordingly , we are committed to delivering the highest quality , safety and performance in our products and services, in alignment with our vision of Saving More Lives. We continue to invest in our quality culture and Zero Defect mindset. We are adapting our processes to incorporate quality earlier in the design process and cooperate more closely with suppliers to further improve our Zero Defect performance by app- lying our Q5 methodology – quality in all dimensions. Modularization Modulization ensures our competitiveness by eliminating the need to redevelop the product for each customer request while minimizing complexity and optimizing our resources. How to Preserve Value to Our Customers STRATEGY FOR CHANGE Efficient Value Delivery 30 ===== SIDA 31 ===== It involves designing and organizing a product or service into parts that can be combined into a final solution. Very much like building blocks. Each part of the product is divided into different functions, and each function is divided into different executions. This enables us to achieve economies of scale while supplying the highest possible value to our customers. Autoliv Production System (APS) APS is how we stay competitive and grow towards excellence in our daily work. It contributes to every single part of Autoliv and it is particularly central to manufacturing. APS is the backbone of how we drive operations across our production network. Combined with digitalization of manufacturing and automa- tion of processes, we are continuously progressing our operatio- nal excellence journey . Sustainability The automotive industry is undergoing a major transformation, as sustainability becomes an important aspect for car buyers as well as some governments and regulators. Our sustainability approach of Saving More Lives, safe and inclusive workplace, climate and circularity and responsible business is aligned with and supports our customers’ broader sustainability agenda. Brand strength We are committed to further strengthening the visibility and rec- ognition of the Autoliv brand. In a fast-changing world, company reputation and public responsibility are increasingly important to all stakeholders and can have a direct influence and impact on commercial potential. A strong Autoliv brand is equally important as we develop our new adjacent business areas. Based on our proven market suc- cess, we are taking further steps to increase our visibility beyond our current customer strongholds. 31 ===== SIDA 32 ===== At Autoliv , teamwork and strong leadership are fundamental to meet customer needs and overcome business challenges, today and in the future. Our workflows are oriented to support experience sharing and openness among colleagues. STRATEGY FOR CHANGE The Autoliv Way Commitment to Collaboration and Leadership Excellence 32 ===== SIDA 33 ===== A holistic perspective as well as considering and respecting all parts of the value chain are key to unlocking our potential as an organization. This means we always work with the end deliver- able in mind, to ensure that the final result is optimized, not a specific task along the way . By caring about the employee experience, creating an open and inclusive workplace, and prioritizing employee develop- ment and growth, we stand the best chance to unlock the inher- ent potential of our people. We believe that leadership applies to everyone in the com- pany . This starts with taking responsibility for one’s growth and developing the skills needed to meet future challenges. Leader- ship involves purposeful actions, authentic motivation, and gen- uine care. Our approximately 65,000 colleagues in operations across 25 countries give us opportunities to leverage synergies, best practices, and scale. Our leaders are guided by our shared responsibilities: ena- bling success, shaping the future, fulfilling our potential, and developing a sustainable business. Enabling success is about making it easy for our teams and team members to be successful and creating the conditions for efficient execution. It includes how leaders support the work of their teams, ensuring that proper resources, systems, organiza- tion, communication, empowerment, and accountability are in place. Shaping the future is about creating the new , managing change and transformation, prioritizing and aligning initiatives, innovating, responding to the external environment, and relay- ing an inspiring vision for the future. Fulfilling our potential is about the growth and development of our team members, and how we collaborate, provide recog- nition, and ensure an appropriate work-life balance. This area captures the essence of developing people through work with an emphasis on helping all team members fulfill their potential and become the best versions of themselves. Developing a sustainable business is about acting with in- tegrity , ensuring physical and psychological safety and well- being, creating a diverse organization, and focusing on quality . Delivering on these responsibilities helps create an inclusive workplace where everyone belongs and contributes their best. It also strengthens employees’ health and well-being, engage- ment, and ability to innovate. 33 ===== SIDA 34 ===== Sustainability Sustainability Report 34 ===== SIDA 35 ===== Sustainability Report 35 ===== SIDA 36 ===== SUSTAINABILITY Highlights Sustainability Highlights 430 358 2022 2023 2024 306 306 kton GHG emissions from own operations (Scope 1+2) 36 ===== SIDA 37 ===== Sustainability is an integral part of our business strategy and an important driver for market differentiation and stakeholder value creation. In 2024, we made significant progress on a number of our key metrics and related targets related to our sustainability focus areas. Further information on performance is available in the Sustainability Appendix. Energy intensity (MWh per million USD, FX-adjusted) 99.7 Waste intensity (ton per million USD sales, FX-adjusted) 10.8 Share of renewable electricity 30% Recordable Incident Rate (Incidents per 200,000 hours worked) 0.32 99.7100.5110.5 23% 13% 30% 2024 2024 2024 2024 2023 2023 2023 2023 2022 2022 2022 2022 0.320.380.38 10.810.811.6 37 ===== SIDA 38 ===== Our sustainability approach creates long-term stakeholder value by focusing on the most material global megatrends and sustainability topics, supported by long-term ambitions and concrete targets. Global megatrends such as climate change, circular economy and urbanization are shaping the automotive industry and fu- ture transport systems. These megatrends influence policy and regulations, technological developments, our key stakeholders’ priorities and create both opportunities and risks for Autoliv . Our sustainability approach addresses the global megatrends in order to create long-term stakeholder value by focusing on the most material sustainability topics supported by long-term am- bitions and concrete targets. Guided by our vision of Saving More Lives, our mission is to provide world-class, life-saving solutions for mobility and soci- ety . Sustainability is an integral part of our business strategy and a fundamental driver for market differentiation and stakeholder value creation, helping to ensure that our business will continue to thrive and contribute to sustainable development in the long term. We engage with our customers to ensure that we are part of driving the transition to low-carbon and circular mobility , thus realizing new business potential for us and our customers. Our sustainability approach is based on four focus areas with broad ambitions and more specific short-term targets defined for each area. These areas represent the strongest links to our busi- ness risks and opportunities and the greatest impact on key stake- holder groups, society and the environment. All four areas repre- sent global challenges where we believe that our work can make a positive difference. We are a signatory of the UN Global Com- pact and our work and policies, such as our Code of Conduct, are aligned with international frameworks such as the ILO core conventions and the OECD Guidelines. Our core business and sustainability work contribute to the realization of a number of UN Sustainable Development Goals (SDGs). Our core business contributes to reducing the number of road fatalities (SDG 3) and making transportation systems safer for everyone, including vulnerable road users (SDG 11). We support research and knowledge sharing that benefit devel- oping countries (SDG 17). Over time, our climate and circularity agenda aims to not only reduce our own negative environmental impact (SDG 9, SDG 13) but also help drive green innovation (SDG 12) among direct material suppliers, vehicle manufactur- ers and energy providers (SDG 7). By proactively managing health and safety risks and labor rights (SDG 8), promoting di- versity and inclusion (SDG 5) and holding all employees to the highest ethical business standards (SDG 16), we lay the foun- dation for a high-performing organization where every employee has the means to speak up and drive improvement. For further information about performance data and more, see the Sustainability Appendix. A Driving Force in Sustainable Mobility SUSTAINABILITY A Driving Force in Sustainable Mobility 38 ===== SIDA 39 ===== • Zero accidents • Embrace inclusive ways of working Saving More Lives Focus Area Ambitions Responsible Business Climate and Circularity A Safe and Inclusive Workplace • Carbon neutrality in own operations by 2030 • Net zero emissions across our supply chain by 2040 • Proactively prevent corruption and other unethical business practices • Respect human rights • Manage supply chain sustainability risks Contribution to UN Sustainable Development Goals • 100,000 lives saved per year 39 ===== SIDA 40 ===== SUSTAINABILITY Materiality Assessment Sustainability Materiality Assessment In 2024, key material topics identified included: • Climate change • Circularity • Life-saving products and innovations • Product safety • Health and safety • Inclusion • Labor rights • Anti-corruption • Antitrust • Corporate culture Environment Social Governance An integrated approach to assessing the im- pacts, risks and opportunities of our business allows us to focus on managing the most material topics. The starting point for our sustainability approach and reporting is understanding our most material topics. Our materiality as- sessment process aims to identify the key sustainability topics in our own operations and our value chain. The process is based on the double materiality principle: both impact materiality (how Autoliv impacts people and the environment) and financial ma- teriality (how various sustainability topics impact Autoliv) are considered. The double materiality assessment process is aligned with the Enterprise Risk Management process, with assessments carried out continuously throughout the year . During the year , we placed specific emphasis on further aligning our assessment methodology with the upcoming EU Corporate Sustainability Reporting Directive (CSRD) requirements. Assessment activi- ties during the year included: • Market research as well as direct dialogue to understand our customers’ sustainability priorities, challenges and opportunities for collaboration • Cross-functional workshops with internal topic experts and representatives from key functions to ensure a broad inside-out understanding of our material topics • Review of industry-related reports, etc. regarding impacts, risks and opportunities • Review of investor-driven sustainability/ESG assess- ments as well as meetings with key shareholders • Review of employee engagement survey results and reports filed through the Autoliv Helpline and other Speak Up channels For many topics, we also carry out topic-specific assessments to gain a deeper understanding of both impact and financial ma- teriality . For example, for climate change, we have carried out a value chain greenhouse gas footprint assessment, identified emission sources and reduction levers, and identified key transi- tion and physical risks and opportunities that could impact our business. The sustainability impacts and performance of our supply chain cut across most of the above topics, in particular regard- ing climate change, circularity , product safety , health and safety , labor rights and business conduct. 40 ===== SIDA 41 ===== Shaping the Industry Agenda Autoliv is engaged in several global and regional associations and orga- nizations, as well as academic and public-private partnerships, in order to contribute actively to driving pro- gress in our sustainability focus areas. Autoliv is an active member of com- mittees that shape the organizations’ positions and communication on key topics such as furthering traffic and vehicle safety standards in regulations and ratings, equity in crash safety , and how the automotive supplier industry can actively drive low-carbon mobility . Moreover , Autoliv actively contri- butes to the resilience of the auto- motive supplier sector , to encourage enhancements in national and inter- national traffic and vehicle safety stan- dards, research funding and capacity , advocating for greater priority to road traffic safety in global policy and na- tional legislation as well as for how the industry can support the transition towards low-carbon mobility . Examples of some of the organiza- tions where Autoliv is a member: • Since 2022, Autoliv has been a member of the UN Road Safety Fund (UNRSF) Advisory Board. The UNRSF’s aim is to promote road safety in developing countries in order to meet Sustainable De- velopment Goal 3.6 of halving road traffic fatalities by 2030. Autoliv advises the UNRSF on its direction and operational work. Through its partnership with the UNRSF, Autoliv has been able to work more actively at the global policy level and communicate its recommen- dations, and to directly support the UN-funded initiatives carried out in low- and middle-income coun- tries, both financially and through sharing our expertise. In 2024, we extended our collaboration with the UNRSF by making a targeted contribution to the UN project call aimed at enhancing motorcycle rider safety . • In the U.S., the Automotive Safety Council (ASC) focuses on promoting global deployment of automotive safety technology . The ASC is active in providing industry guidance on road traffic safety- related legislation. • In Europe, Autoliv is actively engaged in a number of working groups of the European Asso- ciation of Automotive Suppliers (CLEPA). Much of the work relates to shaping future safety regulations as well as industry’s role in the EU sustainability agenda through collaboration with other automotive suppliers on topics such as circu- larity , the EU Taxonomy , corporate sustainability due diligence and reporting. 41 ===== SIDA 42 ===== Autoliv’s sustainability work is managed within a well-defined governance structure, with clearly established ownership and responsibi- lities at all levels in the organization. The underlying principle of our governance model is integrating sustainability responsibilities into the ordinary course of bu- siness and company processes. This means that the ultimate responsibility for executing sustainability activities and targets lies with the line organization and is monitored through mana- gement reporting. According to our Key Behaviors, we expect every employee to take ownership of sustainability topics by proactively contributing improvement ideas and by following company policies and standards. Ultimate oversight of the company’s sustainability activities lies with the Board of Directors. The Board sets the direction for sustainability activities and regularly monitors progress on Autoliv’s sustainability strategy and targets through its Nomina- ting and Corporate Governance Committee (NCGC). The Bo- ard reviews and approves the Code of Conduct as well as the Annual and Sustainability Report and the Modern Slavery Act Statement. Implementation responsibility for sustainability lies with the Executive Management Team (EMT). The EMT has appointed a Sustainability Board charged with providing regular direction and oversight. The Sustainability Board consists of the CEO and other EMT members and meets on a quarterly basis. The Sustainability Board reviews and approves Autoliv’s sustaina- bility strategy , annual and long-term plans, targets and policies for key topics, and monitors implementation and performance. Integration of sustainability into Autoliv’s business is led by the HR & Sustainability function. The Vice President, Sustaina- bility , who reports to the Executive Vice President, HR & Sustai- nability , coordinates, develops and monitors Autoliv’s sustaina- bility agenda and facilitates the Sustainability Board meetings and other sustainability-related reporting to management. Everyday sustainability topics are managed, as appropriate, by the HR & Sustainability function, divisions and other corporate functions such as supply chain management, research, deve- lopment and engineering, and legal and compliance. Divisions and corporate functions have dedicated sustainability resour- ces such as climate coordinators, health & safety coordinators, eco-design/life-cycle assessment experts and supply chain sustainability specialists. Risk management Autoliv has a global risk management organization and utilizes several different tools, such as an Enterprise Risk Management (ERM) framework which includes annual, divisional, functional and corporate risk mapping activities, monitoring of risk trends, implementation of risk improvement plans and follow-up of the effectiveness of risk mitigation measures. Risk reporting is car- ried out on a regular basis to the Board of Directors and its Audit and Risk Committee. With regard to sustainability-related risks, the ERM framework takes into consideration the double ma- teriality perspective. This means assessing both how Autoliv’s operations impact people and the environment, and how vario- us sustainability topics impact Autoliv’s business. Sustainability risks, such as product safety , climate change, natural resour- ces scarcity , environmental compliance, health and safety and other labor rights, business ethics, business conduct and supply chain sustainability , are included in the ERM framework. We assess how sustainability relates to business risks, such as legal proceedings, regulatory changes, contingent liabilities, supply chain disruptions and operational disruptions. Furthermo- re, there are relevant corporate standards for topics such as site risk management, loss prevention, emergency procedures, busi- ness contingency planning and physical security . A more de- tailed description of Autoliv’s material operational, strategic and financial risks, including sustainability-related risks, can be found in the “Risk Factors” and “Risks and Risk Management” sections of the 10-K filed with the SEC. More information on climate-related risks is available in the TCFD Disclosure. SUSTAINABILITY Governance Sustainability Governance 42 ===== SIDA 43 ===== Board of Directors visit Autoliv Japan Chubu facility, September, 2024. Sustainability Governance All employees Organization EVP, HR & Sustainability Executive Management Team Board of Directors Functions VP, Sustainability Sustainability Board Nominating & Corporate Governance Committee Divisions 43 ===== SIDA 44 ===== As the global leader in automotive safety we make a significant contribution to global road safety . When the UN Sustainable Development Goals (SDGs) were launched, road safety was made a global priority for good rea- son: according to the World Health Organization (WHO) global status report on road safety 2023, around 1.2 million people die in traffic incidents every year . Road traffic injuries are the leading cause of death among young people between the ages of 5 and 29. As well as being a public health problem, road traffic injuries carry a huge cost for society: according to some estimates, the global macroeconomic cost of road traffic injuries is estimated to amount to 1-3% of global GDP. Many families are driven into poverty by the loss of a breadwinner or by the expenses of pro- longed medical care. In August 2020, the UN General Assembly adopted the res- olution “Improving global road safety”, proclaiming the Second Decade of Action for Road Safety 2021-2030. The target, repre- sented as SDG 3.6, is to reduce road traffic deaths and injuries by at least 50% by 2030. According to the resolution, vehicle safety is a key component, and member states are encouraged to adopt vehicle safety regulations that make seatbelts, airbags and active safety systems standard equipment. In addition to safer vehicles, infrastructure improvements, road user behavior and protective equipment are also keys to achieving the target. Our ambition and approach Saving More Lives is our core business and our most important contribution to sustainable development and the realization of SDG 3.6. According to our estimations, our products in use already save approximately 37 ,000 lives and reduce around 600,000 injuries every year . Our long-term ambition is for our products to save 100,000 lives per year . Achieving this ambition is based on: • Retaining our strong market position and continuing to grow in our core business, including increasing content per vehicle, while maintaining the highest level of quality as our products never get a second chance • Successfully expanding our business into new mobility segments aimed at motorcyclists, cyclists and pedestrians • Proactively broadening the scope of research and devel- opment to also cover a wider range of occupant protec- tion parameters regarding height, weight, age and gender • Increased multi-stakeholder efforts, in particular educa- tion to increase seatbelt use since seatbelts are the most effective way of reducing fatalities and serious injuries Research and development collaborations We proactively engage with national and international authori- ties as well as academia to further our impact. Below are some examples of our collaborations during 2024: • Power two-wheeler riders account for 30% of global traffic fatalities, making it important to continue to research and develop technologies for improved motorcyclist safety . This is carried out in close dialogue with customers and partners. In addition to on-motorcycle solutions, we also work to increase the comfort and safety of personal protective equipment. We explore helmets with integrated airbags that provide improved protection for the head and face and inflatable vests that improve protection of the thorax and shoulders. SUSTAINABILITY Road Safety Road Safety – a Global Challenge 100,000 Lives saved per year 2024 outcome: Our products saved approximately 37 ,000 lives and reduced around 600,000 injuries Ambition: 44 ===== SIDA 45 ===== • Public transport safety has been placed on the global agenda by SDG 11.2, which calls for safer and expanded public transport. Although public transport is considered to be one of the safest modes of transport of today , relat- ed injuries and fatalities still remain an issue and deserve attention. We have identified safety concerns related to public transport and suggested potential passive safety systems that could mitigate injuries both to pedestrians and to bus occupants. • SDGs 1, 3 and 11 promote cycling, and choosing cycling as a mode of transport holds many advantages. However , heavy goods vehicles and buses are a major threat to cyclists as they are large vehicles. A bicycle is small and fast to maneuver , making it hard for other road users to predict where it is going as the intention of a bicyclist can easily be misjudged. The results from an internal study provided detailed and actionable insights for manu- facturers and agencies that can help to address safety concerns – to make cycling safer . • In a collaboration with Virginia Tech and the Swedish Transport Administration we analyzed and published Ger- man data on injury risk for front and side impacts using a new method to account for underreporting of crashes with uninjured persons. A comparison with Swedish data was also undertaken. The results could help policy makers in Sweden to regulate the speed limits on Swedish roads based on injury risk. Further information about our engagement in industry associa- tions and other organizations is available in Sustainability Mate- riality Assessment. Collaboration with universities To ensure real-life benefits and to develop evidence-based test methods for product development, Autoliv engages in collabo- ration with universities globally . Current helmet standards and ratings do not consider the complexity of facial impact protection performance or Traumatic Brain Injury (TBI). For this reason, we are continuing the collab- oration with the Royal Institute of Technology in Sweden, Impe- rial College London, and a Swedish helmet manufacturer with the aim of influencing helmet standards and ratings. Both vir- tual and physical test methods are being developed and newly developed brain injury assessment tools and injury-specific risk functions will be used for evaluation and optimization of safety systems. We have refined the brain-skull interface modelling to enable better prediction of prioritized TBI types and identified the needs for new brain injury risk assessment criteria through in-depth accident databases. In 2024, Autoliv started working on a four-year European re- search project under the Horizon Europe framework. IMPROVA (Injury Mitigation to Promote Vision-Zero Achievement) will fo- cus on the conditions and mechanisms leading to serious inju- ries of all road user types, and both physical and psychological long-term consequences (LTC). Human body models will be up- graded to create better capabilities to depict LTC-relevant injury mechanisms, and virtual testing procedures will be developed and demonstrated for future application environments. Com- munication with regulatory authorities, NCAPs, industrial part- ners, rescue teams and end-users will provide better awareness of the topic and enable implementation of appropriate counter- measures. The countries most successful in curbing road traffic injuries apply a Safe System Approach – a combination of five critical factors underpinned by collaboration between key stakeholders: Safe System Approach • Safe vehicles • Safe speeds • Safe roads • Safe road user behavior • Post-crash care 45 ===== SIDA 46 ===== SUSTAINABILITY Road Safety Equity in Vehicle Safety Autoliv is a forerunner in the emer- ging area of equity in vehicle safety . Current occupant substitutes used for estimating injury risk in crash tes- ting are limited to three crash-test dummy sizes representing small, mid-size and large occupants, based on 1970’s U.S. population height and weight distributions. The mid-size male dummy has historically been the one most frequently used in rating and regulatory testing. However , over the past decades, there has been a consistent trend of increasing popula- tion weight. Car crash injury statistics highlight that obese occupants, both male and female, are at increased risk of injury and death when compared to average weight males. Beyond sex and size, injury and fatality risks in- crease substantially with age. Autoliv researchers have looked at seatbelt fit as an important safe- ty aspect for many years, along with how seatbelts distribute forces on the human body . Our hypothesis is that the belt system and how it distribu- tes load across the body to protect people can still be developed further , provided that next generation tools and evaluation methods become ready to use and widely accepted. For this reason, to enable the deve- lopment of safety systems that are as effective as possible for everyone, Autoliv is actively researching tools and methods that can be used to re- present the contemporary population in a wide range of crash scenarios. This year , Autoliv joined new resear- ch projects aiming to further enhance state-of-the-art injury risk prediction with virtual human body models re- presenting males and females of dif - ferent ages and sizes. Targeted body regions include chest, hip and neck, which are commonly injured in cras- hes, indicating an opportunity for fur- ther enhanced protection. The Global Burden of Road Traffic Deaths x3 There were an estimated 1,19 million road traffic deaths in 2021; this corresponds to a rate of 15 road traffic deaths per 100 000 population. As of 2019, road traffic injury remains the leading cause of death for children and young people aged 5-29 years as is the 12 th leading cau- se of death when all ages are considered. Motorcyclists and other powered two- and three-wheeler riders repre- sent 30% of global road traffic deaths. Four-wheeled vehicle occu- pants make up 25% of fatalities. Pedestrians account for 21% of fatalities and cyclists account for 5% of fatalities. 92% of deaths occur in low- and middle-income countries. The risk of death is three times higher in low-income countries than high-income countries despite these countries having less than 1% of all motor vehicles. Source: WHO global status report on road safety 2023. 46 ===== SIDA 47 ===== Autoliv aims to reduce greenhouse gas (GHG) emissions and increase circular use of mate- rials throughout the value chain, supporting customers’ transition to low-carbon, sustain- able mobility . Ambition and approach We are committed to operating our business in an environmental- ly sustainable manner , taking into account our environmental im- pact throughout the lifecycle of sourcing, design, production and end of life. Our environmental policy , updated in 2024, lays out our commitments in areas such as GHG emissions reduction, renew- able electricity , circularity and resource efficiency . With particular emphasis on climate action, we actively engage with customers, suppliers and other stakeholders to take on the environmental sustainability challenge across the value chain. Environmental management system Autoliv’s environmental management system (EMS) empha- sizes continuous improvement and is aligned with ISO 14001 requirements. The EMS establishes the requirements for a standardized approach to environmental management, includ- ing identification of material environmental aspects, objective setting, competence development, performance follow-up and standardized reporting. At year end, 96% of all manufacturing facilities were externally certified in accordance with ISO 14001. Climate action Launched in 2021, our climate strategy is based on two long-term climate targets: • Carbon neutrality in own operations by 2030 • Net-zero emissions across our supply chain by 2040 These targets, aligned with the Paris Agreement ambition of lim- iting global warming to 1.5°C, help ensure our competitiveness now and in the future. In addition to these ambitions, we have adopted separate Science Based Targets for 2030 covering our own operations (Scope 1+2) as well as our supply chain (Scope 3 upstream). Further information about the targets and our environ- mental performance is available in the Sustainability Appendix. Our GHG footprint To fully understand our GHG footprint as well as key climate- related risks and opportunities, we have carried out a value chain GHG footprint assessment and scenario analysis. The assess- ment was carried out in accordance with the GHG Protocol Scope 3 Calculation Guidance. Scope 1+2 emissions were calculated based on actual operational data covering energy consumption and fugitive emissions, while Scope 3 emissions were modelled based on actual and estimated sourcing data and generic emis- sion factors. The assessment showed that the largest sources of emis- sions covered by our long-term ambitions were materials used in our production (in particular steel, textiles and other plastics, and SUSTAINABILITY Climate and Circularity Climate and Circularity Carbon neutrality in own operations Net-zero emissions across our supply chain Ambition: Carbon neutrality in own operations by 2030 2024 Outcome: 306 kton CO2e Year-over-year improvement in energy intensity: Continuous 2024 Outcome: 1% improvement Year-over-year improvement in waste intensity: Continuous 2024 Outcome: No change Targets 47 ===== SIDA 48 ===== magnesium), followed by emissions from logistics, and electricity used in our own operations. Downstream Scope 3 emissions, in particular use-phase emissions, constituted the largest share of the total GHG footprint but since we consider our possibility to re- duce downstream Scope 3 emissions to be greatly limited (such reductions are mainly driven by our customers’ work on electrifi- cation), they are excluded from our long-term ambitions and Sci- ence Based Target covering Scope 3. Autoliv’s climate program Based on the outcome of the GHG footprint assessment, we have designed a climate program organized into a number of operational initiatives focusing on the most impactful decarboni- zation levers and value creation activities. Supporting the opera- tional initiatives are a number of cross-cutting initiatives related to governance, performance tracking, business strategy integration, risk management and competence development. Guided by our 1.5°C-aligned long-term targets, the climate program and related processes such as risk assessments represent Autoliv’s low- carbon transition plan. Below is a summary of some of the work and key achieve- ments within the program during the year . Low-carbon supply chain Key decarbonization levers identified to reach net-zero emissions across our supply chain (Scope 3 upstream) include: • Transitioning to recycled, bio-based and other low-carbon materials in our products as well as in packaging • Improving materials efficiency • Requiring suppliers to use low-carbon electricity • Reducing the GHG footprint of our logistics through route, capacity and footprint optimization as well as a shift towards low-carbon transportation modes and vehicles Further information about metrics and targets related to the cli- mate program is available in the TCFD Disclosure. GHG emissions from the materials used in our products and packaging (Scope 3 category 1) account for around 75% of Autoliv’s Scope 3 upstream emissions, meaning effective man- agement and reduction is crucial in achieving our 2040 net-zero ambition. To increase the use of low-carbon materials, we actively col- laborate with our existing supply base and other partners to as- sess and introduce solutions with a reduced carbon footprint. Focus areas include increasing the use of magnesium and alu- minum with high recycled content, and testing and customer validation of low-carbon materials. Examples of specific material initiatives to reduce our Scope 3 emissions related to key direct materials include: • Textiles: continue validation of emission-reduced vari- ants, and increase usage of lower-carbon polymers such as PET • Non-ferrous metals: increase use of high-quality scrap sources to further increase recycling content, and en- gagement with startups for low-carbon solutions, utilizing new technologies and alternative feedstocks • Steel: collaboration with strategic partners including Arvedi, Shougang, SSAB, and ThyssenKrupp to develop and source low-carbon steel Autoliv’s GHG footprint across own operations and supply chain¹ 2024 (kton CO2 e) TotalScope 1 Scope 2 Scope 3¹: Purchased goods and services Scope 3¹: Upstream transportation GHG emissions from fossil fuels and fugitive emissions in operations GHG emissions from purchased electricity , heat and steam in operations GHG emissions from materials used in products and packaging (Scope 3 Category 1) GHG emissions from upstream transportation (Scope 3 Category 4) GHG emissions from business travel, employee commuting and more (Scope 3 Categories 2, 3, 5, 6, 7) Scope 3¹: Other upstream Own operations Upstream activities 4,073 (100%) 242 (6%) 449 (11%) 231 (6%) 3,076 (75%) 75 (2%) 1) Considering the challenges related to accurately modelling upstream Scope 3 emissions, such as the accuracy of historical data and the availability and applicability of emission factors, actual up - stream Scope 3 emissions may differ materially from those modelled. The modelling primarily aims to identify the major sources of Scope 3 emissions across the value chain, which supports Autoliv in developing specific activities for improvement and implementing the relevant measures. Autoliv aims to, over time, increase the accuracy of reported upstream Scope 3 emissions by addressing mate- rial uncertainties. The illustration above does not include modelled downstream Scope 3 emissions, which include emissions from the use phase of vehicles where Autoliv's products are installed. SUSTAINABILITY Climate and Circularity 48 ===== SIDA 49 ===== Low-carbon electricity in the supply chain Low-carbon materials sourcing Low-carbon logistics Renewable energy for operations Energy and resource efficiency Phase-down of natural gas usage Phase-down of fugitive emissions Low-carbon product design Low-carbon sales strategy Program governance and performance tracking Business strategy integration Risk management Organization and competence development Cross-cutting Initiatives Low-Carbon 1) Supply Chain Low-Carbon1) and Efficient Operations Low-Carbon1) Product Offering 1) Low-carbon is generally understood as referring to actions/solutions that reduce carbon emissions aligned with limiting global warming to 1.5 degrees Celsius. 49 ===== SIDA 50 ===== In 2024, we launched a collaboration and engagement program with our direct material suppliers to drive the low-carbon electrici- ty transition and overall GHG emissions reductions in the supply chain. The program consists of workshops with selected strategic supplier groups, as well as webinars reaching all direct material suppliers. The program addresses the main areas of our climate- related sustainable sourcing requirements: • GHG emissions tracking and target setting • Renewable electricity transition • Product carbon footprint calculations • GHG emissions reductions in the value chain In late 2024, we hosted several workshops in China and Romania with strong engagement from the suppliers attending, and a will- ingness to develop and learn from both Autoliv and from other suppliers. The program will continue in 2025 with workshops in Ko- rea, Japan and the U.S., and webinars targeting all direct material suppliers as well as Autoliv’s supply chain organization. To track progress and support supplier prioritization, we imple- mented climate-related KPIs such as renewable electricity shift, and introduced a supplier climate maturity status that we consi- der in the sourcing process. Performance and maturity status are based on suppliers’ responses to our annual climate survey . In the low-carbon logistics program, we introduced several new initiatives to continuously improve operational efficiency in transportation by reducing air freight transport, shifting to sea transport, optimizing routes, and enhancing vehicle capacity uti- lization. Our packaging initiatives aims to eliminate unnecessary packaging, reduce usage, and increase use of returnable options, achieving both cost and emissions reductions. We developed sustainable sourcing requirements for logistics and packaging suppliers, to be rolled out in early 2025. Low-carbon and efficient operations Key decarbonization levers identified within our own operations (Scope 1+2) include: • Transitioning to low-carbon electricity at our facilities • Improving energy efficiency • Phasing down natural gas usage • Phasing down fugitive emissions Electricity consumption at our facilities is by far the largest contri- butor to our Scope 1+2 emissions. We aim to cover majority of our renewable electricity needs via long term power purchase agre- ements (PPAs), complemented in priority order with: on-site so- lar , green tariff and RECs, in those places where we have limited or no PPA options. During 2024, we expanded use of renewable electricity through various “green tariffs” and renewable electricity instruments, and continued formalizing our long-terms plans to secure renewable electricity through large-scale PPAs. In 2024, 30% of our total electricity consumption came from renewable electricity instru- ments, up from 23% in 2023. In addition to renewable electric- ity instruments and contracts, several production facilities have installed or are in the process of installing on-site solar generation capacity . Sulfur hexafluoride (SF 6 ) used in steering wheel production has been our largest source of fugitive emissions, making up around 6% of Autoliv’s total Scope 1+2 emissions in 2023. We launched an action plan in 2022 to fully phase out the remain- ing use of SF₆, and concluded the phase-out in the first quarter of 2024. To reduce our GHG emissions from natural gas used in pro- duction processes, we conducted several trials and projects to assess the potential for energy efficiency improvement, e.g. from process optimization and heat recovery , and electrification of pro- duction equipment. We achieved positive results from several trials and projects and will look to implement or scale up these solutions where possible. As part of our Green Factory Program, we set targets for GHG emissions reduction and energy intensity improvement for all manufacturing sites and regularly conduct assessments covering energy , water and waste in order to continuously im- prove environmental performance and efficiency in our opera- tions. Green factory assessment is an integral part of Autoliv’s overall operational excellence assessment that is conducted in each production facility on a quarterly basis.During the year , we implemented a number of energy efficiency projects tar- geting areas such as air compressor leaks, waste heat re- covery , LED lighting, HVAC improvement and replacing older equipment with new , more efficient equipment. We also conduct- ed energy management workshops and trainings in different divi- sions. Compared to 2023, total energy consumption decreased by 2% and energy intensity decreased by 1%. Low-carbon product offerings Autoliv’s products are generally powertrain-agnostic and can be fit- ted in electric vehicles and plug-in hybrid vehicles with only model- specific adjustments needed. Around 14% of sales in 2024 came from battery electric vehicles with zero tailpipe emissions, and we estimate that our global EV market share is in line with our total global market share of 44%. Utilizing Autoliv’s competence from our core business, we have developed several products for electrical safety , with the com- mon denominator being utilization of pyrotechnics. The products range from high volume, off-the-shelf products, primarily the Pyro Safety Switch, to tailor-made solutions. We aim to develop attractive, low-carbon product offerings to support our customers in their transition to zero-emission, low environmental impact vehicles. During 2024, all product lines continued implementation and refinement of their low-carbon product roadmaps. We already offer our customers specific prod- SUSTAINABILITY Climate and Circularity 50 ===== SIDA 51 ===== ucts that support their carbon footprint reduction strategies, such as products with lower weight and higher content of recycled non-ferrous metals and low-carbon polymers. Examples include increased use of recycled magnesium in steering wheels and switching to airbag fabrics with a significantly lower GHG foot- print. We continued evaluating our products’ overall environmental footprint throughout their lifecycle, with a focus on understand- ing the main sources of GHG emissions. These lifecycle assess- ments (LCAs) help prioritize actions in product development. The LCAs also allow us to proactively engage with customers, high- lighting the carbon footprint of our products and how embedded emissions can be reduced. We also provide LCA support to our suppliers, to help them understand their GHG emissions “hot spots” and actions to prioritize. We implemented sustainable de- sign guidelines for engineering, and started to introduce low GHG emissions and circularity criteria in our production development standards. Cross-cutting initiatives Sustainability topics, including climate, is part of employee on- boarding training. We continued specific climate training in par- ticular in China where employees were provided with training as part of a “Sustainability Month” campaign. We continued the implementation of our Sustainability Guidelines for Capex invest- ments which specific climate impact guidance and assessment, with particular focus on improving assessment process efficiency . The guidelines aim to ensure that all investments are aligned with our 2030 climate ambitions and specify exclusion criteria for in- vestments that could lead to increased GHG emissions above certain emission thresholds beyond 2030. The guidelines also encourage investments with a positive climate impact, such as, installation of solar panels, improvements to energy efficiency , and replacement of fossil-fuel equipment with electric alterna- tives. Read more about climate-related governance and risk man- agement in the TCFD Disclosure. Circularity and natural resources Waste and circularity During the year , we took further steps to develop our circularity strategy and roadmap. Our circularity strategy builds on three keys areas: • Materials recirculation, including closed-loop and open- loop recycling of our raw materials as well as the share of recycled content in raw materials • Materials efficiency , including materials utilization, light- weighting of components, packaging optimization and reuse • Cross-cutting initiatives, such as design for circularity , cir- cularity in operations, and data, systems and governance We continuously manage and monitor waste management prac- tices at site level through the Green Factory program, in which waste management is part of the quarterly assessment. Directing waste away from landfill remains a priority at our production si- tes. The rate of reuse, recycling and energy recovery increased to 92% (91% in 2023) of total waste reported. Water Our most water-intensive operations are associated with the production of airbag fabrics, accounting for around 60% of water withdrawal. Based on the WRI Aqueduct Water Risk Atlas, around 20% of Autoliv’s facilities are located in regions with high or ex - tremely high water stress levels. However , only one of the ten most water-intensive production sites is located in a high water stress region. To improve water efficiency , we set a water-related target of continuous improvement in the Green Factory program. Biodiversity In 2023, we carried out a biodiversity risk screening based on the LEAP approach and the recommendations of the Taskforce for Nature-related Financial Disclosures (TNFD). In 2024, based on the findings, we developed a biodiversity action roadmap for our own operations as well as the supply chain. In our own opera- tions, we included biodiversity assessment as part of our stand- ard guidelines for footprint planning. To manage supply chain impacts, we have included biodiversity in our Supplier Code of Conduct and work with our leather suppliers to ensure that those in scope of upcoming EUDR requirements will be prepared to meet those requirements. Materials management and substances of concern As a global automotive component manufacturer , compliance with chemical and material regulations is essential. At the core is our standard that defines Autoliv’s requirements for material data reporting and substance use restrictions, applicable for both Autoliv and its suppliers. This standard is updated twice a year to reflect the latest legal and customer requirements. Through re- porting to the automotive industry databases IMDS and CAMDS, we trace the content in our components delivered to customers and confirm compliance regarding applicable legal and customer requirements. We follow up continuously with our suppliers to find alternative materials in case a substance needs to be phased out. In 2024, particular effort was devoted to assessing how to meet increasing legal requirements regarding the phase-out of PFAS. 51 ===== SIDA 52 ===== Autoliv considers the management of climate- related risks and opportunities to be a key com- ponent of ensuring long-term business success. This disclosure is aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. Governance The underlying governance principle of the climate program is close integration into existing governance structures. The Board of Directors is ultimately responsible for the oversight of sustain- ability-related matters, including climate change, and has del- egated certain responsibilities to its committees. The Board of Directors and its Nominating and Corporate Governance Com- mittee (NCGC) receive regular updates on climate-related mat- ters and performance. In 2021, the Board of Directors endorsed Autoliv’s current long-term climate targets as well as the strategic direction for reaching the targets. Throughout 2024, the Board and NCGC received updates on progress related to the climate program and our plans for 2025 and beyond. The Executive Management Team (EMT) is responsible for implementation of sustainability-related matters, including climate change. The Sustainability Board, which consists of the CEO and several EMT members, has overall operational oversight of Autoliv’s climate program. Other relevant Management Boards, such as the Industrial & Product Board, Innovation Board and Commercial Board, focus on specific climate program initiatives such as low-carbon product design and low-carbon sales strategy . Performance against climate-related targets is reviewed regularly by the EMT, divisional and other functional management teams and followed up in monthly business reviews. The Executive Vice President HR & Sustainability , supported by the VP Sustainability , is ultimately responsible for the overall direction and governance of the program, and for ensuring imple- mentation progress. Further information is available in Sustain- ability Governance. Strategy Scenario analysis In 2021, as part of the development of the current climate strat- egy , we carried out our first climate scenario analysis. The analy- sis, which covered both transition and physical risks, was based on a 2°C scenario (equivalent to RCP 4.5 or SSP2) and a 3-4°C scenario (equivalent to RCP 8.5 or SSP5). Transition risks were assessed on a 2030-2040 timeframe, while physical risks were assessed on a 2050 timeframe. From a financial impact perspective, the most material transi- tion risks identified were: • The risk of a global decrease in overall vehicles sales • Increasing prices for certain raw materials as a result of carbon pricing mechanisms (such as CBAM) • Potential revenue loss if Autoliv fails to meet increasingly strict supplier requirements from OEMs who themselves have set strict GHG emissions reduction targets The most material physical risks identified, generally connected to a 3-4°C scenario, were factors that would lead to significant production disruptions. These include wildfires, flooding and ex - treme heat. These risks were seen as particularly high in coun- tries and regions such as southwest U.S., Mexico, India and China. These risks are also expected to impact suppliers and customers in these regions. The most material opportunities identified pertained to build- ing a strong position among climate-progressive OEMs including electric vehicle (EV) manufacturers as a supplier of low-carbon components as well as opportunities to increase operational en- ergy and materials efficiency . Strategy and business impact integration Climate change-related risks and opportunities are integrated into Autoliv’s business strategy and cascaded through established steering mechanisms such as annual business planning and target setting. SUSTAINABILITY TCFD Disclosure TCFD Disclosure 52 ===== SIDA 53 ===== Climate-related opportunities To realize key climate-related business opportunities, we are continuously working on low-carbon product offerings and form- ing partnerships with customers to help them reduce the carbon footprint of their products. In addition, efforts to increase the en- ergy and materials efficiency of our operations will support in re- ducing related operational expenditures. As part of our climate transition plan, we aim to further develop and use climate sce- narios as a supporting tool in quantifying the financial impacts of climate-related risks and opportunities. We are closely moni- toring the ongoing development of guidance regarding the use of carbon offsetting and elimination as well as carbon markets and related pricing and take them into account as relevant in our deci- sion making. Autoliv’s strategic plan was updated in 2022, covering the years 2023-2025. Climate is included as one of the focus areas in the strategic plan. During 2024, we focused on further integrating climate considerations into the company’s strategic product plan- ning process and other key processes, such as product design and materials sourcing. In 2021, we published our Sustainable Financing Framework aligned with the ICMA Green Bond Principles. In March 2023, we issued our inaugural €500M green bond, with all proceeds allo- cated to Clean Transportation. The number of electric vehicles estimated produced with products supplied by Autoliv for the al- located proceeds was around 3.8 million. In February 2024, we issued our second €500M green bond, with the same allocation and estimated impact as the first bond. Risk management Climate-related risks are generally integrated into the Enterprise Risk Management (ERM) process. For further information about ERM and management of sustainability risks, see Sustainability Governance. We consider transition risks as generally mitigated through continuous activities in the climate program. Physical risks are generally considered mitigated through site risk and impact assessments, footprint planning as well as ongoing business continuity management processes. We did not experience any significant climate-related disruptions to business in 2024. Metrics and targets In addition to Autoliv’s long-term targets and Science Based Targets, the climate program covers a number of more detailed performance metrics and related targets. These cover the most important emissions reduction levers such as sourcing of low- carbon raw materials, low-carbon logistics and a transition to- wards renewable electricity use. We set annual division-level Scope 1+2 and Scope 3 targets as part of Autoliv’s Policy Deploy- ment, a process to translate the company’s overall strategic plan into concrete execution steps. Reporting on progress is done in various forums such and Board of Directors’ Nominating & Cor- porate Governance Committee, Executive Management Team, Sustainability Board and various function and division level man- agement forums. Since 2022, GHG emissions from own operations (Scope 1+2) is a performance component of the long-term equity incentive program. The program covers around 300 participants, including the CEO and all EMT members. For more information on GHG emissions and target outco- mes, see Sustainability Appendix. Transition risks Most material risks Potential financial impacts Policy and legal Carbon pricing mechanisms leading to increasing prices for raw materials with a large carbon footprint Increased operational expenditures Technology Decrease in overall vehicle sales Loss of revenue Market Higher demand for renewable electricity and low-carbon raw materials Increased operational expenditures Reputational Increasing stakeholder requirements or expectations on Autoliv to aggressively reduce GHG emissions in its own operations and/or supply chain Loss of revenue, reduced access to capital Physical risks Acute/short-term Wildfires Extreme heat Flooding Loss of revenue related to production disruptions Chronic/long-term Extreme heat Water stress Costs related to the need of relocating production Climate Risk Assessment 53 ===== SIDA 54 ===== Health, safety , and inclusion are pillars of our people strategy , ensuring that we create value from and for our most valuable asset - our employees. Health & Safety Our ambition and approach Autoliv is committed to a safe and healthy workplace. We start with the principle that work-related injuries and illnesses are pre- ventable and seek to operate our business to avoid causing injury or ill health to employees, contractors and other stakeholders. Ac- countability for occupational health and safety (H&S) rests with Autoliv’s leadership. Managers have the primary responsibility for ensuring compliance with Autoliv’s occupational H&S standards. Every employee, at each level of the organization, is responsible for ensuring their own and others’ health and safety by following our Standards, identifying and helping to eliminate unsafe condi- tions and unsafe behaviors, and speaking up as appropriate. Health and safety management system We integrate H&S into everyday business by incorporating it into our production system and those projects and processes that may affect the working environment of our employees. All produc- tion sites are required to implement Autoliv’s health and safety management system (HSMS), which in turn is aligned with the re- quirements of the ISO 45001 Standard. Assurance of compliance is provided through the common global safety assessment that is an integrated part of the operational excellence assessment. These quarterly assessments identify the maturity of each site’s safety management system, and enable us to focus on further re- ducing risk in the more hazardous activities in our business, and support ongoing continuous improvement in safety across the business. The HSMS is supported by local leadership teams who en- courage operators and visitors to engage in and proactively speak up about health and safety concerns and to take responsibility for safety . Implementation of the system is monitored through inter- nal compliance audits and external certification audits. At year- end, 66% of production sites were ISO 45001 certified. In 2024, to support our ongoing focus on proactive accident prevention and continuously improving safety in our workplaces, we revised the criteria for recording unsafe acts and conditions to include only which where some form of containment or cor- rective action followed their identification. Using a process al- ready integrated into our quality management system, we have adopted the term Contained Safety Jidoka to identify this very specific activity . We report this metric in our monthly manage- ment reporting, and during 2024 the reporting of unsafe acts and conditions significantly surpassed our target of 1 per employee, reflecting an ongoing awareness of the importance of reporting and addressing safety concerns. H&S training and awareness building During 2024, H&S remained a key topic at EMT and Divisional Management Team meetings, and leadership safety training SUSTAINABILITY A Safe and Inclusive Workplace A Safe and Inclusive Workplace 0.30 Recordable Incident Rate by 2025 2024 Outcome: 0.32 1 reported unsafe act or condition per employee per year 2024 Outcome: 1.3 per employee Year-over-year improvement in Employee experience: Continuous 2024 Outcome: Improvement 22% women in senior management by 2025 2024 Outcome: 19% Zero accidents Embrace inclusive ways of working Ambition:Targets 54 ===== SIDA 55 ===== continued throughout the year . All employees working in produc- tion are trained in relevant H&S topics and H&S is included as a standard item in daily team meetings. In the annual employee en- gagement survey , 88% responded that they felt safe at work and over 80% responded that they felt empowered to stop unsafe work without fear of retaliation. Focus on high-risk activities Throughout 2024, we maintained strong focus on high-risk activi- ties within our operations. To better control these risks, we consoli- dated the application of our revised internal high-risk Standards, which cover: • Working at height • Lock-out/tag-out • Traffic safety • Machine safety • Lifting and rigging • Contractor safety We continue to focus on incidents that could have resulted in a serious injury or fatality . All such incidents are thoroughly inves- tigated and reviewed by the responsible management team and shared globally so that measures can be put in place to prevent repeat incidents. Inclusion Our ambition and approach Inclusive ways of working are an asset and a fundamental part of the Autoliv Key Behaviors. Including a multitude of perspectives is an integral aspect of successful decision-making in all parts of the organization and helps drive innovation and create long-term sustainable shareholder value in a rapidly changing industry . We believe that everyone should be respected and treated fairly , and we are committed to providing an inclusive workplace where eve- ryone can be themselves, deliver results and bring their authentic selves to work. Our efforts to represent the communities in which we operate are supported by our use of competence-based crite- ria for recruiting. Activities during the year During 2024, we continued to deliver on our inclusion efforts by increasing opportunities to create equal access for consideration into senior management positions. Action taken during the year included: • An inclusion summit for all top leadership • Introduced training, best practices, and initiatives related to inclusive recruitment • Initiated a special project on how to provide equal access to senior management Measuring employee experience We conducted a major update of our employee listening strat- egy , created a new framework for the employee experience, and launched a company-wide employee experience survey . In 2024, the listening program was expanded to include all Autoliv em- ployees including production associates. The updated survey in- cludes statements that measure key aspects of an inclusive work environment including whether employees feel that they can be themselves at work (“ Authenticity”), whether they have the same opportunity to advance in the organization (“Perceived fairness”), and belongingness. Together , these measures constitute our “In- clusion Index,” one of 5 critical KPIs in the survey . Perceived fairness was among the most improved areas com- pared to 2023, improving by 14 percentage points and above the global average. Authenticity remained stable from 2023 with a 1 percentage point increase but below the global average. People development We want all colleagues to achieve professional success and reach their full potential. Key components of this ambition include fostering a Speak Up culture, strategic workforce planning where we identify talent requirements, and our Key Behaviors which re- mind us how to act to bring the best version of Autoliv to life every day . Dialogue between managers and team members, which in- cludes all of these components, is a cornerstone of everyone’s growth. This dialogue is summarized in an annual Performance and Development Dialogue (PDD). In 2024, 99% of targeted employees conducted a PDD with their managers. To further sup- port our employees’ growth, we use several development chan- nels, such as facilitated and self-paced development programs, technical and specialist career paths, international assignments and continuous on-the-job training. Leadership Commitment Leaders at all levels of the organization are actively involved in creating a behavior that supports and promotes strong H&S performance and continuous improvement. Employee Involvement Employees are actively engaged in all aspects of H&S performance, including establishing goals, identifying and reporting hazards/risks, investigating incidents and tracking progress. Workplace Safety is a Condition for Employment Every employee is respon - sible for contributing to their own workplace safety . Recognition and Control of Risks Processes and procedures are implemented to proac - tively identify , prevent, reduce and/or control potential hazards/risks. Continuous Improvement Processes and procedures are implemented to monitor H&S, verify implementation, identify defects and provide opportunities for improve - ment. Autoliv's Health & Safety Work Principles 55 ===== SIDA 56 ===== Responsible business practices are key in ensuring that we understand the impacts of our business operations, comply with laws and reg- ulations, and meet stakeholder expectations. Our Responsible Business strategy Responsible Business is a fundamental element of Autoliv’s sus- tainability framework. To recruit and retain the best talent and to build enduring relationships with our customers and suppliers, it is essential that Autoliv is known for the quality and integrity of its conduct as well as its products and services. Through our ap- proach to Responsible Business, we work to continually strength- en how we: • Proactively prevent corruption and other illegal or unethical business practices wherever we operate • Respect human rights across our value chain • Manage sustainability risks and impacts across our supply chain Compliance and Corporate Integrity Autoliv’s Compliance and Corporate Integrity Program Autoliv’s compliance program is designed in accordance with best practice guidance, such as guidelines for effective compliance programs under the Organizational Guidelines issued by the U.S. Department of Justice. The program serves to ensure that ad- equate procedures are in place to prevent Autoliv from taking part in any anti-competitive activities, any corrupt business practices, or other illegal and unethical behavior , and that the company ad- heres to applicable laws and regulations. The program also drives compliance with relevant corporate standards including the Auto- liv Code of Conduct. Leading with Integrity Leading with Integrity is at the core of Autoliv’s Compliance Pro- gram. The purpose is to enable, inspire, and make it easy for all employees to make the right decisions and to foster an open and transparent culture where all employees feel safe and encouraged to speak up. In 2023, we launched a number of initiatives under the “Lead- ing with Integrity” umbrella, aimed at strengthening the culture SUSTAINABILITY Responsible Business Responsible Business Targets 100% of target group completed Antitrust training: Continuous 2024 Outcome: 92% 100% of target group Code of Conduct certified: Continuous 2024 Outcome: 94% 100% direct material suppliers sustainability audited: Continuous 2024 Outcome: 100% 100% direct material suppliers respond to conflict minerals survey: Continuous. 2024 Outcome: 99% Proactively prevent corruption and other unethical business practices Respect human rights Manage supply chain sustainability risks Ambition: 56 ===== SIDA 57 ===== of integrity within the organization by equipping leaders and em- ployees with skills to make responsible decisions daily . One no- table example was the development of an interactive game, “In- tegrity Check – The Autoliv Code of Conduct Game,” designed to increase employees’ awareness of our Code of Conduct in a playful and engaging manner . Throughout 2024, the game was rolled out globally . Additionally , we conducted “Listen Up” work - shops for leaders, focusing on how they can support and promote a Speak Up Culture. The Autoliv Code of Conduct The Autoliv Code of Conduct is our fundamental guide for how to do business. It guides our actions and decisions to ensure we uphold the highest standards in all aspects of our business. The Code of Conduct is readily available on our website and has been translated to 19 languages. In November , a new Code of Conduct e-learning pro- gram was rolled out to all non-production employees. The program is designed to be adaptive and specific to each role and function. It begins with a pre-assessment to evaluate ex - isting knowledge. Participants who demonstrate a thorough understanding of the Code by answering all questions cor- rectly will proceed directly to the end of the course. Those who miss any questions will be guided through relevant scenarios and questions to address areas needing improvement in terms of awareness and knowledge. This approach ensures efficient use of time for those already familiar with the Code while providing essential training for those requiring further instruction. In addition, Autoliv’s onboarding process for new employees includes an introduction to the Code of Conduct through team- based discussions on its role, our Integrity Check, mutual expec- tations, and the importance of speaking up. In 2024, an online version of the Code of Conduct onboarding was created and integrated into the global onboarding program. Specific Code of Conduct training tailored for production staff was also provided. Annual Code of Conduct certification Each year , all Autoliv employees in a leadership role must com- plete a Code of Conduct certification. This process includes dis- closing any known violations and affirming that leaders actively promote the Code within their teams. At year-end, 94% of target group leaders had successfully completed their certification. Anti-corruption At Autoliv , we compete vigorously and effectively while always complying with applicable anti-corruption laws. We have zero tolerance for any form of corruption in our business dealings and expect the same standards from our business partners. Our anti-corruption program is intended to support the princi - ples in the Autoliv Code of Conduct and internal anti-corrup - tion policy by providing employees guidance pertaining to: Compliance Program Elements Is it legal and consistent with our Code? Do I have all the information to support a good decision? Do I still feel proud of myself and Autoliv? Do I know how to explain the decision to those impacted? Have I discussed with the right people? Autoliv's Integrity Check Autoliv’s Integrity Check is a tool designed to help employees navigate conflicts, dilemmas, and difficult decisions in the workplace. It involves a series of simple but useful questions that help individuals or teams pause and reflect on the situation. The goal is to avoid rushed judg- ments and make more thoughtful, unbiased decisions. 57 ===== SIDA 58 ===== • Avoiding corruption and bribery • Proper interaction with public officials • Guidance on gifts and hospitality • Charitable donations and sponsorships • How to manage risks relating to third parties We use a combination of face-to-face workshops and virtual training to maintain anti-corruption awareness and knowledge for certain employees in functions with an increased risk exposure. Anti-corruption training is mandatory for selected employees in functions with a high corruption risk exposure. Antitrust and Fair Competition We will always thrive best in fair and open markets. Therefore, we rigorously follow all competition and antitrust laws that apply to our operations. Our Antitrust and Competition Policy provides detailed guidance on how to ensure compliance with competition and antitrust laws. In 2024, supported by external expertise, we initiated a comprehensive review of our antitrust compliance program. This review is part of a proactive effort to continuously improve our Antitrust compliance program and involved a review of ex - isting policies and procedures, a risk assessment based on in - terviews, and a survey . An updated antitrust policy , along with updated procedures and guidelines, will be communicated to all employees in early 2025. To further increase knowledge about Antitrust and Fair Competition, face-to-face training sessions were conducted throughout the year in several divisions. These sessions were specifically designed for functions and roles with an increased exposure to antitrust risks, ensuring that employees received training tailored to their job responsibilities and work contexts. This initiative will continue in 2025. Speaking Up Autoliv has embraced a broad definition of Speaking Up: “any communication or discussion with the intent to bring positive change, show encouragement, or highlight an issue for improve - ment”. To help ensure that our broad definition of Speaking Up is consistently referenced and promoted across workstreams and strategic initiatives, implementation of the Speak Up policy is the joint responsibility of several functions such as Compliance & Corporate Integrity , Health & Safety , Quality , and HR. Although we believe this broader definition benefits our business in all aspects, we make it clear that Autoliv employees are responsible for immediately reporting suspected or known violations of the Code of Conduct, the law , or Autoliv’s policies. All employees are frequently informed of the multiple channels available for raising such issues. Throughout the past year , we emphasized the importance of Speaking Up across the organization through various chan- nels. This included a series of “Speak Up Stories” articles which shared real-life examples of how employees can contribute to fostering an environment where everyone feels safe and en- couraged to Speak Up. In addition, for the first time, a speci- fic Speak Up Award was handed out as part of Autoliv’s 2024 Awards and Recognition Program, under the category Leading the Autoliv Way . This award was given to the Autoliv Japan Qu- ality Compliance Program team for its exceptional contributions and commitment to promoting a culture of openness and spea - king up within their function. Awareness of Speak Up channels and confidence in speaking up are measured in employee surveys. In the 2024 Employee En - gagement Survey , 69% of participants gave a favorable response to the question “I can report unethical practices without fear of re - taliation”. While many teams report that they can report unethical practices without fear , we recognize that this sentiment is not yet universal across all parts of Autoliv . The Code of Conduct and Speak Up policy firmly state that no employee or third party should be adversely affected for report - ing in good faith or for refusing to carry out a directive believed to constitute a violation of the Code or other Autoliv policies, laws, or regulations. Autoliv Helpline - our grievance mechanism The Autoliv Helpline is a third-party operated reporting service available to all employees and third parties, allowing reports to be made without fear of retaliation. Stakeholders can raise questions or concerns about any suspected misconduct within Autoliv’s op - erations, including violations of the Code of Conduct, Supplier Code of Conduct, laws, or policies under which we operate. In 2023, we established a new Helpline and Case Manage- ment System. The new system includes significant improve- ments for both the reporter and for the process for functions con- ducting investigations. Reports can be made anonymously and/or confidentially in the language of any country where Autoliv operates. All reports are investigated to determine whether there is any violation of the law , the Code of Conduct, or other Autoliv policies. SUSTAINABILITY Responsible Business 58 ===== SIDA 59 ===== Speak Up reporting In 2024, a total of 245 reports were received by the Compliance team. Around 87% were received via the Helpline reporting sys - tem (phone or online) and the other reports were raised internally , meaning reported directly to management, HR, Legal, or Compli - ance teams. Of the reports received, 50% were opened for a com - pliance investigation. Of the investigations closed in 2024, 35% of the allegations or cases were found to be substantiated or partially substantiated. Substantiated cases are presented to the appropri - ate management for decision on remediation activities and other disciplinary action. All high-risk cases are presented to Executive Management and the Audit and Risk Committee of the Board on a regular basis. Tax Policy At Autoliv , tax planning is carried out in compliance with the Tax Policy approved by the Board of Directors. The basic principle is to respect all relevant laws, disclosure requirements and regulations, while safeguarding shareholder interests and the Autoliv brand. All tax planning must be in line with Autoliv’s business purpose and no baseless organizational structure is permitted. All Autoliv affiliates are required to pay all tax obligations and meet relevant payment deadlines, to fully comply with all relevant tax laws and accounting rules and regulations in the tax jurisdictions in which the business operates, and to be open and transparent with tax authorities about their tax liability . When disputes arise, Autoliv will proactively seek to work cooperatively with full transparency . Human Rights Human rights are an integral part of Autoliv’s sustainability agen - da and cut across all sustainability focus areas. We are commit - ted to respecting the UN Universal Declaration of Human Rights as well as human rights-related commitments laid out in the UN Global Compact Principles and OECD Guidelines for Multinational Enterprises. Human rights commitments are included in our Code of Conduct and Supplier Code. Our commitments are supported by topic-specific policies that cover specific human rights, such as our Health & Safety Policy , Respect in the Workplace Policy and Conflict Minerals Policy . Implementation of our commitments is ensured through various tools such as management attention and reporting, management systems, internal standards, audits, risk assessments, and training. Read more about our health & safety work in A Safe and Inclusive Workplace and conflict minerals work in Supply Chain Sustainability . Key human rights-related issues and commitments for Autoliv include: • Our products save lives, and we need to ensure the quality and safety of our products as they never get a second chance • We are committed to offering a safe and inclusive workplace and respecting labor rights • Our climate ambitions are aligned with the Paris Agreement goal of limiting global warming to 1.5°C, thereby mitigating the most severe climate change impacts on societies and the environment • Our supply chain sustainability risk management processes consider human rights risks and impact In 2024, we continued to further develop our human rights due diligence processes with particular emphasis on including human rights considerations into our footprint planning and new facility project standards, continuing to build a systematic risk-based due diligence approach, as well as improving transparency in our supply chain. Labor rights Autoliv is committed to offering fair terms and conditions of em- ployment to all employees regardless of employment type, sta- tus, or location. These commitments extend across our supply chain and include third-party employees at our sites. We support the International Labour Organization’s Fundamental Principles and Labor Standards and are committed to: Human Rights in the Automotive Industry As laid out in the “Shifting Gears, An Assessment of Human Rights Risks & Due Diligence in the Automotive Industry” report, published by the Automotive Industry Action Group (AIAG), the industry’s most salient human rights risks and issues include: Child labor and forced labor Workplace health and safety , discrimination and harassment Working conditions, wages and freedom of association Conflict minerals Climate change and environmental degradation 59 ===== SIDA 60 ===== • Providing fair and equitable wages, working hours, benefits, and other conditions of employment in accordance with applicable laws • Recognizing and respecting employees’ right to freedom of association and collective bargaining • Providing decent and safe working conditions • Prohibiting child, forced, and bonded labor • Promoting a safe workplace free from any form of discrimination or harassment Autoliv is committed to engaging in open and transparent dialogue with all employees and, where applicable, with representatives of organized labor groups and unions. Approximately 55% of our workforce is covered by collective bargaining agreements. In ad- dition, we have a number of different mechanisms through which employees can raise topics with management. These include Autoliv’s Speak Up channels (including the Autoliv Helpline), employee engagement surveys and related feedback sessions, employee suggestion programs, local health and safety commit- tees, and operational committees. The major unions representing Autoliv employees in different regions are disclosed as part of the 10-K filed with the SEC. The headcount reductions to accelerate structural cost reduc- tions first communicated in 2023, continued throughout 2024. Autoliv is committed to managing any workforce reductions responsibly . In all cases, negotiations were carried out with local unions and authorities in accordance with local laws and regula- tions. Depending on the circumstances, certain employees were offered relocation, severance pay , early retirement packages, or other additional compensation. Community Engagement As a large employer and important part of many communities where we operate, we strive to create positive impact wherever we can. Community engagement initiatives are generally decided and carried out locally , most often focusing on road safety activi- ties or engaging on other topics close to our core business. Ex - amples during the year include a traffic safety day for children at our tech center in Japan, and the ‘Autoliv Safety Day’ in Romania, engaging not only Autoliv volunteers but also partners such as the Romanian police, local authorities and NGOs. On the corporate level, Autoliv together with several other companies have a long- standing collaboration with the NGO Pratham to ensure effective education for 30,000 children in Assam in India. Autoliv Safety Foundation Autoliv Safety Foundation was founded in 2024, with the purpose of supporting scientific research and development in the field of road safety and related areas to promote a better and safer world. The foundation also aims to aid in the event of humanitarian dis- asters in the proximity of locations where Autoliv conducts opera- tions. Autoliv Safety Foundation made a donation to YOURS (Youth for Road Safety), a global organization led by and for young pe- ople, empowering them to tackle road safety challenges and pro- mote sustainable mobility . This donation will support initiatives in 2025 aimed at improving road safety in Mexico, with a focus on engaging young people to create a lasting impact, especially in motorcycle safety . Furthermore, the foundation extended its sup- port to communities affected by a typhoon in Vietnam and floo- ding in Spain, where Autoliv has operations. Supply Chain Sustainability Our ambition and approach Through responsible sourcing practices and supplier collabora- tion, Autoliv aims to create positive social and environmental value across our supply chain. We expect suppliers and third par- ties to enact the same standards and processes as we do when it comes to proactively managing key sustainability impacts and risks such as GHG emissions, labor rights, and anti-corruption. To manage our global supply chain in a responsible manner , we focus on integrating sustainability into relevant supply chain management processes. Suppliers are monitored in a live risk tool covering such factors as natural disasters, financial status, reputation, risks, and responsible sourcing practices. Autoliv’s lead buyers are updated regularly with information related to their suppliers, allowing them to take immediate action when necessa- ry . Our approach is to work with suppliers, to the greatest extent possible, to resolve issues before determining to potentially pha- se out the supplier . We perform due diligence on high-risk third-party relations - hips and apply risk-based controls to support our third parties in applying our anti-corruption commitments. In 2024, work conti - nued to strengthen the framework for the due diligence process for suppliers. As part of this work, a new Standard on Third Party Due Diligence was developed. This Standard clarifies Autoliv’s commitments to practice due care when doing business with third parties. Further information related to supply chain risks is available in the 10-K filed with the SEC. SUSTAINABILITY Responsible Business 60 ===== SIDA 61 ===== Supplier Code of Conduct and Sustainable Sourcing Requirements We expect our suppliers to comply with the laws and regulations in the areas where they operate and to follow Autoliv’s policies and procedures, including our Standards of Business Conduct and Ethics for Suppliers (Supplier Code of Conduct). In situa- tions where an Autoliv requirement may differ from local laws or regulations, we expect our suppliers to follow the most stringent requirements. The Supplier Code conveys our expectation that suppliers will uphold our social, ethical and environmental standards in condu- cting their businesses in areas including human rights and wor- king conditions, environmental protection, and business conduct and ethics. For direct material suppliers, the Supplier Code is in- cluded in the Autoliv Supplier Manual (ASM). All direct material suppliers are required to acknowledge their compliance with the ASM as part of our general terms and conditions and by signing a separate acknowledgement letter for the ASM. In the case of indirect suppliers, a reference to the Supplier Code is included in the general terms and conditions attached to purchasing orders. In 2024, the Supplier Code was updated to cover new topics and with stricter requirements related to environment and health and safety . Autoliv’s Sustainable Sourcing Requirements contain further detailed requirements and expectations related to the four focus areas of the Supplier Code of Conduct. In 2023, the document was released to our direct material suppliers, and in 2024 require- ments for indirect suppliers were developed, to be released in early 2025. Supplier quality and sustainability audits Autoliv has dedicated teams responsible for the quality manage- ment of our supply base, including mandatory steps such as pre- qualification audits of new direct material suppliers. Sustainability criteria are included as a module in pre-qualification audits and must be met before becoming an Autoliv supplier . These audits ensure that our suppliers adhere to Autoliv’s standards as well as to applicable local laws and regulations, and establish a process for working with suppliers that fail to meet our policies and stand- ards. If audited suppliers don’t meet our requirements, an internal escalation process is in place to ensure that non-conformities are corrected. At year-end, 100% of active direct material suppliers within audit scope had undergone a sustainability audit. Our audit practices are aligned with the AIAG guidelines. We carry out additional qualification of sub-suppliers for spe- cial processes, such as heat treatment, to ensure our quality re- quirements are met. Using a risk-based approach, we also ensure technical qualification of raw material suppliers. Conflict minerals and extended minerals Pursuant to U.S. Securities and Exchange Commission (SEC) rules, conflict minerals include certain minerals (tin, tantalum, tungsten and gold, also known as 3TG) that originated in the Democratic Republic of Congo or an adjoining country and are sold to benefit groups financing armed conflicts in those re- gions. We recognize the need to end the illegal extraction and trade of natural resources, and the human rights violations, conflicts and environmental degradation that result from this trade. We have designed our conflict minerals approach in ac- cordance with the internationally recognized OECD Due Dili- gence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, specifically as it relates to our position as a downstream purchaser . The OECD Due Diligence Guidance has a broader scope and covers more minerals than 3TG. Our Conflict Minerals Policy provides fur- ther clarification regarding conflict minerals, and its principles are incorporated into our Supplier Code of Conduct and the Sustainable Sourcing Requirements. To comply with the SEC’s conflict minerals rules and regula- tions and to ensure responsible sourcing of components, parts or products containing conflict minerals, we continuously review our supply chain and work with our suppliers to identify and improve the traceability of potential conflict minerals. We support indus- try initiatives, such as the Responsible Minerals Initiative (RMI), and utilize external expert guidance to validate that the metals used in our products come from sustainable sources and do not contribute to conflicts. In cases where we find potential risks and conflicts with smelters identified within our supply chain, we take immediate action to mitigate the potential risks. In some cases, this means discontinuing sourcing from suppliers that are in viola- tion of our requirements to ensure sourcing from designated RMI active or conformant suppliers. To ensure our understanding of the potential use of conflict minerals, we have implemented an annual conflict minerals campaign covering our direct material suppliers. The scope of the annual campaign includes all direct material suppliers that have conducted business with us during the current calendar year and have listed 3TG in their Bill of Materials. This informa- tion is extracted from the automotive industry standard reporting platform IMDS. The response rate to the latest completed cam- paign, which ended in May 2024, was 99%. Most non-responding suppliers were customer-directed suppliers. We are working with these customers to mitigate this issue for future conflict minerals campaigns. We publish an annual report on our conflict minerals campaign on our website. In addition to conflict minerals, we also have an annual report- ing campaign in place related to tracing extended minerals (co- balt and mica) used in components supplied to us. Autoliv does not permit the sourcing of cobalt or mica from high-risk smelters. Suppliers must be able to trace the cobalt and mica content in components or raw materials by part number from their facility back to the supplier sourcing from the identified smelters, and to remove any high-risk smelters. 61 ===== SIDA 62 ===== Sustainability Appendix SUSTAINABILITY Appendix Reporting scope The report covers Autoliv Inc. and all companies over which Autoliv Inc. directly or indirectly exercises control (operational control approach). Reported information is based on actual data and covers the full calendar year . Exceptions to this scope: • Health and safety reporting excludes office locations • Environmental reporting excludes offices and other loca- tions that have an individually insignificant impact (annual energy consumption <1 GWh) and that continue to be insignificant when aggregated • Scope 1+2 market-based emissions for 2024 are based on actual activity data for January-November and esti- mated activity data for December . Estimations are based primarily on historical activity data (Q4 2023 and Q1-Q3 2024) GHG emissions and energy All GHG emissions are reported as CO₂e. Due to their nature or to availability , some emission factors used may only cover CO₂, however the difference has been assessed as non-material. Energy consumption and GHG emissions are based on activity data reported in volume or quantity in an internal reporting system. The data is based primarily on invoices, but may be estimated if exact measurements or invoices do not exist. Scope 1+2 emissions Autoliv applies the GHG Protocol Corporate Accounting and Reporting Standard. Autoliv’s primary Scope 2 GHG accounting approach is market-based, and GHG emissions targets and other related metrics are based on market-based Scope 2 emissions. Emission factors are updated annually and previous years’ emis- sions are not recalculated using the latest emission factors. The following emission factor sources were used to calculate 2024 GHG emissions: • Scope 1 energy fuels 1) : Defra 2023 • Scope 1 fugitive emissions 2, 3) : Defra 2023, IPCC AR5, producer-stated GWP • Scope 2 market-based electricity: provided by supplier , or regional/national grid average for the locations where suppliers were unable to provide a specific emission factor • Scope 2 market-based district heating/steam: IEA 2023, China Development and Reform Commission • Scope 2 location-based electricity: IEA 2023 • Scope 2 location-based district heating/steam: IEA 2023, China Development and Reform Commission 1) Gasoline, diesel, fuel oil, LPG. 2) SF6, fugitive CO2, N2O and various refrigerants. 3) The emission factor for SF6 at one facility has been adjusted down by 20% to account for not all gas being released into the atmosphere. The adjustment is based on tests at the facility and is a best estimate associ- ated with inherent uncertainty as the exact reduction has not been established. 2022 scope 1+2 emissions have been calculated using mainly old- er sets of the same emission factor sources. Notably , the updated emission factors for 2023 represented around a 40 kton reduction in Scope 1+2 emissions, impacting in particular market-based electricity emissions. The impact of updated 2024 emission factors compared to 2023 emission factors was negligible. Scope 3 emissions Reported Scope 3 emissions have been modelled in accordance with the GHG Protocol Scope 3 Calculation Guidance and is based on a combination of spend data (e.g. logistics spend) and activity data (e.g. materials purchased). Generic emission factors have been applied as supplier-specific emission factors are generally not available. Reporting is limited to Scope 3 upstream categories as those are considered material for Autoliv and are covered by Au- toliv’s supply chain climate ambition and Scope 3 Science Based Target. 62 ===== SIDA 63 ===== Science Based Targets In January 2022, the Science Based Targets initiative (SBTi) approved Autoliv’s Science Based Targets (SBTs): • Reduce absolute Scope 1+2 emissions by 75% from a 2018 base year • Reduce absolute Scope 3 upstream emissions by 15% from a 2018 base year The Scope 1+2 SBT is 1.5°C aligned and has a baseline of 423 kton. 2024 Scope 1+2 emissions of 306 kton is a 28% absolute reduction compared to the baseline. The scope 3 SBT is 2°C alig- ned and has a baseline of 3,100 kton. 2024 Scope 3 upstream emissions of 3,767 kton is a 22% absolute increase compared to the baseline. Energy Energy conversion factors for energy fuels come from public sources. The same energy conversion factors have been applied to all reported energy consumption 2022-2024 with the exception of a lower conversion factor for natural gas for 2022. Changes and corrections In 2024, there were no material changes in reporting scope, and no material recalculations. Material recalculations for 2022 and 2023 reported figures are explained in the 2023 report. Scope 3 emissions for 2024 are rounded off to the closest kton instead of closest 10 kton. Share of employees covered by collective barga- ining agreements for 2024 has been reported rounded off to the nearest 5% rather than 10%. External reporting frameworks The following external reporting frameworks have been consi- dered for the structure and content of this Sustainability Report: • We consider the Sustainability Report aligned with the general requirements of the EU Non-Financial Reporting Directive (NFRD). Autoliv’s assessment, supported by third party legal expertise, is that for the year 2024, Auto- liv Inc. was not required to report in accordance with the EU Non-Financial Reporting Directive (NFRD) or the EU Corporate Sustainability Reporting Directive (CSRD) • This Sustainability Appendix includes references to the voluntary SASB Auto Parts Sustainability Accounting Standard • A TCFD Disclosure is included in this report • A statement prepared to comply with the disclosure obli- gation of California’s Voluntary Carbon Market Disclosure Act (VCMDA) is available on autoliv .com External assurance Scope 1+2 emissions for 2023 and 2024, reported in accordan- ce with the GHG Protocol Corporate Accounting and Reporting Standard, have been subject to limited review carried out by EY . The limited review has been conducted in accordance with the ISAE 3410 assurance standard. The auditor’s reports are availa- ble on autoliv .com. An additional statement prepared to comply with the disclosure obligations of the VCMDA is available on the Climate Action page on autoliv .com. UN Global Compact Communication on Progress This Sustainability Report serves as Autoliv’s Communication on Progress related to the UN Global Compact. The following sec- tions demonstrate our commitment to implementing the Global Compact principles: • Road Safety - a Global Challenge: Principle 1 • A Safe and Inclusive Workplace: Principle 6 • Climate and Circularity: Principles 7-9 • Responsible Business: Principles 1-6, 10 63 ===== SIDA 64 ===== SUSTAINABILITY Appendix Saving More Lives Targets & Metrics 2024 2023 2022 Comments 100,000 lives saved per year 37 ,000 35,000 Close to 35,000 We estimate that in addition to lives saved, our products reduced more than 600,000 injuries in 2024. Share of global recalls (%) 1 ~2% ~2% ~2% The share is calculated as a ten year rolling average based on infor - mation from national official databases. 1) SASB TR-AP-250a 1. A Safe and Inclusive Workplace Targets & Metrics 2024 2023 2022 Comments Health and Safety 0.30 Recordable Incident Rate by 2025 0.32 0.38 0.38 Number of reportable injuries, i.e. injuries that require treatment beyond first aid or results in one or more days of lost time, per 200,000 employee hours of exposure. Work-related fatalities 0 0 2 Share of production sites ISO 45001 certified (%) 66% 61% 56% Inclusion Year-on-year improvement in Employee experience. Continuous - Authenticity - Perceived fairness 74% 74% 73% 59% 80% 73% 22% women in senior management by 2025 19% 19% 18% Senior management consists of around 110 employees and include the Executive Management Team. Share of women in the workforce (%) 49% 49% 49% Share of women in the Executive Management Team (%) 8% 8% 0% Climate and Circularity Targets & Metrics 2024 2023 2022 Comments Carbon neutrality in own operations by 2030 306 kton CO2e 358 kton CO2e 430 kton CO2e Scope 1+2 market-based emissions. Year-on-year improvement in energy intensity Continuous 1% improve- ment 3% improve- ment 2% improve- ment MWh per million USD sales (FX adjusted). Year-on-year improvement in waste intensity Continuous No change 5% impro- vement 5% impro- vement Ton per million USD sales (FX adjusted). 64 ===== SIDA 65 ===== Climate and Circularity Targets & Metrics 2024 2023 2022 Comments GHG Emissions GHG emissions intensity (Scope 1+2) 29.5 34.2 48.5 Ton CO2e per million USD sales (FX adjusted). Direct Scope 1 GHG emissions (kton CO2e) - Natural gas - Other energy fuels – SF6 - Other fugitive emissions Total 56 7 7 5 75 57 9 22 7 95 52 10 35 5 102 Phase-out of SF6 was completed in the the first quarter of 2024, significantly contributing to lower scope 1 emissions in 2024. Indirect Scope 2 GHG emissions (kton CO2e) - Electricity , market-based - District heating/steam, market-based Total, market-based - Electricity , location-based - District heating/steam, location-based Total, location-based 220 11 231 298 11 309 247 16 263 290 16 306 311 17 328 299 17 316 Upstream Scope 3 emissions (kton CO2 e) - Purchased goods and services (category 1) - Upstream transportation (category 4) - Other upstream (categories 2, 3, 5, 6, 7 , 8) Total 3,076 449 242 3,767 3,070 460 240 3,770 3,000 510 190 3,700 Energy1 Energy intensity 99.7 100.5 110.5 MWh per million USD sales (FX adjusted). Energy use (GWh) - Direct - natural gas - Direct - other energy fuels Direct total - Indirect - electricity - Indirect - district heating/steam Indirect total Total 276 29 305 704 27 731 1,036 282 39 321 704 28 732 1,053 250 40 290 661 29 690 980 Included in total direct energy use but not part of the breakdown is around 340 MWh of on-site solar PV generation. Share of renewable energy/electricity (%) - Renewable energy - Renewable electricity 20% 30% 15% 23% 9% 13% Renewable electricity is calculated as as the share of purchased electricity covered by a 'green tariff', EAC/REC/GO or PPA and may come from any renewable source. 100% of direct energy is considered non-renewable. 1) SASB TR-AP-130a Waste1 Waste (kton) 112 113 101 Share of waste by type (%) - Non-hazardous - Hazardous 89% 11% 89% 11% 89% 11% Share of waste by treatment (%) - Reuse, recycling, energy recovery - Landfill 92% 8% 91% 9% 90% 10% 1) SASB TR-AP-150a 65 ===== SIDA 66 ===== SUSTAINABILITY Appendix Climate and Circularity Targets & Metrics 2024 2023 2022 Comments Other Water withdrawal (thousand m3 ) 2,225 2,294 2,361 100% of water withdrawal is reported as coming from municipal or third party sources. Share of production sites ISO 14001 certified (%) 96% 92% 96% Number of significant spills, and related fines 0 0 0 A significant spill is defined as having a financial impact of USD 100,000 or more. Responsible Business Targets & Metrics 2024 2023 2022 Comments Business Ethics 100% in target group completed antitrust training Continuous 92% 98% 99% Target group is based on the risk exposure of certain employee groups. 100% in target group Code of Conduct certified Continuous 94% 93% 99% Target group is employees in a leadership role. Supply Chain Sustainability 100% direct material suppliers sustainability audited Continuous 100% 99% 98% Percentage is based on active direct material suppliers within audit scope that have undergone a sustainability audit. 100% direct material suppliers respond to conflict minerals survey Continuous 99% 97% 89% Compliance Speak Up Number of Compliance Speak Up reports – Reported through Autoliv Helpline (%) – Reported through other channels (%) 245 426 318 Other channels include internal reports directly to management, HR, the Legal or Compliance teams. 87% 13% 89% 11% 89% 11% Compliance Speak Up reports per 100 employees 0.38 0.61 0.46 Labor Rights Share of employees covered by collective bargaining agreements (%) ~55% ~50% ~50% Around 80% of the countries where Autoliv has employees have collective bargaining agreements. 66 ===== SIDA 67 ===== 67 ===== SIDA 68 ===== By ensuring customer satisfaction, maintaining tight cost control and developing new products, we generate cash for long-term growth, financial stability and competitive returns to our share- holders. Autoliv has a strong cash flow and cash generation focus. Our op- erating cash flow has always exceeded our capital expenditures. On average, our continuing operations have generated $871 mil- lion in cash per year over the last five years, while our capital ex - penditures, net, have averaged $482 million per year during the same period. Capital efficiency Our strong cash flow reflects both Autoliv’s earnings performance and our capital efficiency . In 2024, our capital turnover rate, mean- ing our sales in relation to average capital employed, was 2.7 , significantly better than our 5-year average capital turnover rate of 2.4. Our cash flow model When analyzing how best to use each year’s cash flows from op- erations, Autoliv’s Executive Management and the Board of Di- rectors use a model for creating shareholder value that considers variables such as the marginal cost of borrowing, the return on marginal investments and the price of Autoliv shares. When eval- uating the various uses of cash, the need for flexibility is weighed against acquisitions and other potential uses of cash. Investing in operations To create long-term shareholder value, cash flow from opera- tions should only be used to finance investments in operations until the point when the return on investment no longer exceeds the cost of capital. Our historical weighted average cost of capi- tal has been approximately 10% to 13% in the past ten years. Autoliv’s pre-tax return on capital employed has generally ex - ceeded this level, except during the COVID-19 pandemic in 2020. In 2024, Autoliv generated a high return on capital employed (ROCE) of 25%, reflecting its strong financial performance and effective cost management. Over the past five years, Autoliv has consistently improved its ROCE, driven by strategic initiatives INVESTING IN AUTOLIV Creating Shareholder Value Creating Shareholder Value $771 m Shareholder Returns Ownership distribution of institutional investors Company estimates, end of 2024. Rest of World 3% Rest of Europe 7% United Kingdom 10% Sweden 33% United States 47% 68 ===== SIDA 69 ===== and operational efficiencies. During this period, the return on capital employed has been about one to two times the pre-tax cost of capital. In 2024, $563 million was reinvested in the form of capital expenditures, net, 53% of the year’s operating cash flow of $1,059 million. Capital expenditures, net, were 45% higher than depreciation and amortization as we invest in foot- print optimization, capacity increases and flexible automation to drive increased efficiency and to support sales growth. Acquisitions, divestments and investments in assets In order to accelerate company growth and create shareholder value over time, we may use some of the cash flow generated for acquisitions and for investments in assets such as joint ventures and intellectual property . These investments are typically made to consolidate our position in the industry , increase our vertical integration or expand into new markets. In the near future, we do not consider acquisitions as a high priority . Shareholder returns Autoliv has historically used both dividend payments and share repurchases to create shareholder value. Autoliv does not have a set dividend policy . Instead, the Board of Directors regularly analyzes which method is most effective in order to create share- holder value. For the full year 2024, the dividend was increased from $2.66 to $2.74 per share. In total, $219 million was used to pay dividends to shareholders in 2024. Historically , the dividend has usually represented a yield of approximately 2-3% in relation to Autoliv’s average share price, except in 2020, when a dividend was only paid for one quarter as a response to the effects of the COVID-19 pandemic. In 2024, this yield was around 2.6%. Repurchases of shares can create more value for shareholders than dividends, if the share price appreciates over the long term. During 2024, Autoliv repurchased 5.1 million shares, equal to $552 million, under the current stock repurchase program au- thorized by the Board. The program authorizes repurchases of up to $1.5 billion, or 17 million common shares (whichever comes first), until the end of 2025. At end of 2024, the total num- ber of shares repurchased under the program was approximate- ly 10.2 million for a total of $1,019 million. Capital structure Our debt limitation policy is to maintain a financial leverage Autoliv's model for creating shareholder value US$ (millions) 200 400 600 800 1,000 1,200 2024 2023 CASH IN CASH OUT Cash IN Cash IN Cash OUT Cash OUT 1,059 563 219 552 275 982 569 225 352 164 Operations Increase in net debt and other Total dividends paid Stock repurchases Capital expenditures, net 69 ===== SIDA 70 ===== commensurate with a “strong investment grade credit rating”. Our long-term target is to have a leverage ratio (Net Debt, including pension liability , in relation to EBITDA) of around 1 time and to be within the range of 0.5 and 1.5 times. In addition to the above, the objective is to provide the Company with sufficient flexibility to manage the inherent risks and cyclicality in Autoliv’s business and allow the Company to realize strategic opportunities and fund growth initiatives while creating shareholder value. In 2024, Autoliv remained within the target range as cash flow remained solid and EBITDA improved. On December 31, 2024, the lever- age ratio was 1.2 times. Autoliv holds a long-term credit rating of “Baa1” from Moody’s and “BBB+” from Fitch, both with a stable outlook. We aim to maintain a strong investment grade rating as our current capital structure should provide flexibility to generate further shareholder returns and the funding of our capital require- ments. Shareholder information Autoliv’s common stock is traded on the New York Stock Exchange (NYSE) while Autoliv’s Swedish Depository Receipts (SDRs) are traded on the NASDAQ Stockholm. As of Decem- ber 31, 2024, Autoliv estimates that approximately 36% of shares outstanding were SDRs (vs. 49% two years earlier) while 64% were common stock. In 2024, approximately 90% of the total volume was traded on the NYSE. During 2024, the number of shares outstanding decreased by more than 4.9 mil- lion to 77 .7 million (excluding treasury shares). Stock options (if exercised) and granted restricted stock units and performance shares could increase the number of shares outstanding by 0.5 million shares in total. Combined, this would add 0.6% to the Autoliv shares outstanding. INVESTING IN AUTOLIV Creating Shareholder Value 1. Cevian Capital 12% 2. Fidelity Management & Research Company 9% 3. BlackRock 6% 4. Alecta 6% 1) Shareholders holding more than 5% at the end of 2024, based on the 13-D/G filings and company estimates, of outstanding shares. The largest shareholders, December 31st, 20241) 70 ===== SIDA 71 ===== Operating cash flow Capital expenditures, net 0 200 400 600 800 1,000 1,200 2423222120 Cash flow vs. Capex US$ (Millions) Capital Turnover Rate Times, sales in relation to average capital employed 0 1 2 3 2423222120 Share buybacks Dividend 0 100 200 300 400 500 600 700 800 2423222120 Shareholder Returns US$ (Millions) Return on Capital Employed % 0 5 10 15 20 25 2423222120 Trade working capital * 0 1,000 2,000 3,000 4,000 5,000 2423222120 Property , plant and equipment Goodwill and other intangible assets Assets by Category US$ (Millions) Capex and D&A US$ (Millions) and in relation to sales % 150 300 400 500 600 700 2423222120 0 1 2 3 4 5 6 7 Capex, net Capex, net % of sales D&A % of sales *) Non-GAAP Performance Measures. See "Non-GAAP Performance Measures" section in the 10-K filed with the SEC. 71 ===== SIDA 72 ===== BOARD AND MANAGEMENT 1. Jan Carlson Chairman since 2014. Director since 2007 . 2. Mikael Bratt President and CEO of Autoliv Inc. Director since 2018. 3. Laurie Brlas Director since 2020. Member of the Audit and Risk Committee and the Nominating and Corporate Governance Committee. 4. Hasse Johansson Director since 2018. Member of the Audit and Risk Committee. 5. Leif Johansson Director since 2016. Chair of the Nominating and Corporate Governance Committee. Member of the Leadership Development and Compensation Committee. 6. Franz-Josef Kortüm Director since 2014. Member of the Nominating and Corporate Governance Committee. 7 . Frédéric Lissalde Director since 2020. Chair of the Leadership Development and Compensation Committee. Member of the Nominating and Corporate Governance Committee. 8. Xiaozhi Liu Director since 2011. Member of the Leadership Development and Compensation Committee. 9. Gustav Lundgren Director since 2022. Member of the Audit and Risk Committee. 10. Martin Lundstedt Director since 2021. Member of the Leadership Development and Compensation Committee. 11. Thaddeus “Ted” Senko Director since 2018. Chair of the Audit Committee. 12. Adriana Karaboutis Director since 2024. Board of Directors 1 4 11 123 5 10 2 7 9 8 6 72 ===== SIDA 73 ===== 1. Mikael Bratt President and CEO. 2. Petra Albuschus Executive Vice President, Human Resources & Sustainability . 3. Kevin Fox President, Autoliv Americas. 4. Magnus Jarlegren President, Autoliv Europe. 5. Fabien Dumont Executive Vice President, Chief Technology Officer . 6. Jonas Jademyr Executive Vice President, Quality and Program Management. 7 . Colin Naughton President, Autoliv Asia. 8. Anthony Nellis Executive Vice President, Legal Affairs; General Counsel & Secretary . 9. Staffan Olsson Executive Vice President, Operations. 10. Christian Swahn Executive Vice President, Supply Chain Management. 11. Fredrik Westin Executive Vice President, Finance and Chief Financial Officer . 12. Sng Yih President, Autoliv China. Executive Management Team 73 1 12 10 279 8 6 4 53 11 ===== SIDA 74 ===== Location and Capabilities 74 ===== SIDA 75 ===== Headquartered in Stockholm, Sweden. Incorporated in Delaware, United States Location Employees Tech center Production Sales support Other 2) BRAZIL1) 1,290 CANADA 477 CHINA1) 8,725 ESTONIA1) 769 FRANCE 1,519 GERMANY 572 HUNGARY1) 1,517 INDIA1) 4,253 INDONESIA1) 175 JAPAN 1,986 MALAYSIA1) MEXICO1) 13,988 PHILIPPINES1) 1,218 POLAND1) 2,137 ROMANIA1) 9,297 SOUTH AFRICA1) 231 SOUTH KOREA 476 SPAIN 419 SWEDEN 474 SWITZERLAND 40 THAILAND1) 4,427 TUNISIA1) 4,350 TURKEY1) 2,536 UNITED KINGDOM 222 USA 3,957 1) Defined as a best-cost country . 2) Includes weaving and sewing of textile cushions and seatbelt webbing, inflators, and components for airbag and seatbelt products. 75 ===== SIDA 76 ===== AUTOLIV , INC. Visiting address: Klarabergsviadukten 70, Section D, 5th Floor , Stockholm, Sweden Postal address: P.O. Box 70381, SE-107 24 Stockholm, Sweden Tel: +46 (0)8 587 20 600 E-mail: info@autoliv .com www .autoliv .com CONTACT OUR BOARD Autoliv , Inc. P.O. Box 70381, SE-107 24 Stockholm, Sweden Tel: +46 (0)8 587 20 600 E-mail: legalaffairs@autoliv .com The Board, individual directors and the committees of the Board can be contacted using the address above. Contact can be made anonymously and communication with individual directors is not screened. The relevant chairman receives all such communication after it has been determined that the content represents a message to such chairman. STOCK TRANSFER AGENT AND REGISTRAR www .computershare.com INVESTOR REQUESTS Autoliv , Inc., P.O. Box 70381, SE-107 24, Stockholm, Sweden Tel: +46 (0)8 587 20 600 E-mail: ir@autoliv .com 2025 PRELIMINARY FINANCIAL CALENDAR April 16, Financial Report Q1 May 8, Annual Stockholders Meeting July 18, Financial Report Q2 October 17 , Financial Report Q3 Concept and Design: PCG Photos: Getty Images, PCG, Shutterstock, Spectrum Digitale Medien GmbH, Autoliv colleagues Contacts and Calendar 76 ===== SIDA 77 ===== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number: 001-12933 AUTOLIV, INC. (Exact name of registrant as specified in its charter) Delaware 51-0378542 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Klarabergsviadukten 70, Section D5, Box 70381, SE-107 24 Stockholm, Sweden (Zip Code) (Address of principal executive offices) +46 8 587 20 600 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class: Trading Symbol(s): Name of each exchange on which registered: Common Stock (par value $1.00 per share) ALV New York Stock Exchange Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: ☒ No: ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262 (b)) by the registered public accounting firm that prepared or issued its audit report. ☒ If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes: ☐ No: ☒ The aggregate market value of the voting and non-voting common equity of Autoliv, Inc. held by non-affiliates as of the last business day of the second fiscal quarter of 2024 amounted to $8,568 million. Number of shares of Common Stock outstanding as of February 12, 2025: 77,714,402. Auditor Firm Id: 1433 Auditor Name: Ernst & Young AB Auditor Location: Stockholm, Sweden ===== SIDA 78 ===== DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for the annual stockholders’ meeting to be held on May 8, 2025, to be dated on or around March 25, 2025 (the “2025 Proxy Statement”), are incorporated by reference into Part III of this Annual Report on Form 10-K. The 2025 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after December 31, 2024. ===== SIDA 79 ===== 1 AUTOLIV, INC. Index PART I Item 1. Business 3 Item 1A. Risk Factors 10 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 23 Item 2. Properties 25 Item 3. Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 51 Item 8. Financial Statements and Supplementary Data 53 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 87 Item 9A. Controls and Procedures 87 Item 9B. Other Information 88 PART III Item 10. Directors, Executive Officers and Corporate Governance 89 Item 11. Executive Compensation 89 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 89 Item 13. Certain Relationships and Related Transactions, and Director Independence 89 Item 14. Principal Accountant Fees and Services 89 PART IV Item 15. Exhibit and Financial Statement Schedules 90 ===== SIDA 80 ===== 2 NOTE ABOUT FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K 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. (“Autoliv,” the “Company” or “we”) 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 in Item 1A -“Risk Factors” of this Annual Report on Form 10-K, Item 1A, and Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report. 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. ===== SIDA 81 ===== 3 PART I Item 1. Business General Autoliv, Inc. (“Autoliv”, the “Company” or “we”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden where it currently employs approximately 110 people. The Company functions as a holding corporation and owns two principal subsidiaries, Autoliv AB and Autoliv ASP, Inc. The Company's fiscal year ends on December 31. The Company is a leading developer, manufacturer, and supplier of passive safety systems to the automotive industry with a broad range of product offerings. Passive safety systems are primarily meant to improve safety for occupants in a vehicle. Passive safety systems include modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, pedestrian protection systems, steering wheels, inflator technologies, battery cut-off switches and seatbelts. To expand its product offerings, the Company has formed Mobility Safety Solutions. By combining its core competence and industry experience, the Company also develops and manufactures mobility safety solutions such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two-wheelers. The Company has 62 production facilities in 23 countries and its customers include the world’s largest car manufacturers. The Company’s sales in 2024 were $10.4 billion, approximately 68% of which consisted of airbag and steering wheel products and approximately 32% of which consisted of seatbelt products. The Company's business is conducted in the following geographical regions: The Americas, Europe, China, and Asia, excluding China. On December 31, 2024, the Company had approximately 65,200 personnel worldwide, with 9% being temporary personnel. Additional information required by this Item 1 regarding developments in the Company’s business during 2024 is contained under Item 7 in this Annual Report. Reportable Segment The Company has one reportable segment based on the way the Company evaluates its financial performance and manages its operations. The Company's business is comprised of passive safety products –principally airbags (including steering wheels and inflators) and seatbelts. For more information regarding the Company’s segment reporting, see Note 1, Basis of Presentation, to the Consolidated Financial Statements in this Annual Report. Products, Market, and Competition Products Providing life-saving solutions is a key priority as the world population grows and develops. However, population expansion in growth markets and the rise of megacities creates new complexities. To meet this challenge, the Company develops safety solutions for both mobility and society that work in real life situations. The Company's passive safety systems such as seatbelts and airbags substantially mitigate human consequences of traffic accidents. The airbag module is designed to inflate extremely rapidly and then quickly deflate during a collision or impact. It consists of the container, an airbag cushion, and an inflator. The purpose of the airbag is to provide the occupants a cushioning and restraint during a crash event to prevent any impact or impact-caused injuries between the occupant and the interior of the vehicle. Seatbelts can reduce the overall risk of serious injuries in frontal crashes by as much as 60% due to advanced seatbelt technologies such as pretensioners and load limiters. The Company also manufactures steering wheels that are crafted to ensure they meet safety requirements and are functional as well as stylish. Market and Competition Consumer research clearly shows that consumers want safe vehicles, and several significant trends are likely to positively influence overall safety content per vehicle. These include: 1) Society becoming increasingly focused on Vision Zero and its goal of reducing traffic fatalities and their associated costs; 2) Demographic trends of increased urbanization, aging driver populations, and increased safety focus in growth markets; 3) Evolving government regulations and test rating systems to improve the safety of vehicles in various markets, such as the updated European New Car Assessment Program (Euro NCAP), China NCAP, and USNCAP; and 4) The trend towards more electrical vehicles may lead to roomier interiors that may require more advanced passive safety systems, as well as products to cut the electrical power in case of an accident. The automotive passive safety market is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV). ===== SIDA 82 =====