FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2023
===== SIDA 1 =====
Kvartalsrapport
januari – mars 2023
Stockholm, Sverige, 21 April, 2023
(NYSE: ALV och SSE: ALIV.sdb)
===== SIDA 2 =====
Kvartalsrapport januari - mars 2023
2
Kv1 2023: Stark försäljningstillväxt
Finansiell sammanfattning Kv1
$2 493 miljoner försäljning
17% försäljningsökning
21% organisk försäljningsökning*
5,1% rörelsemarginal
5,3% justerad rörelsemarginal*
$0,86 vinst/aktie - 9% minskning
$0,90 justerad vinst/aktie* - 99% ökning
Utsikter för helåret 2023
Cirka 15% organisk försäljningsökning
Cirka 1% negativ valutaeffekt på försäljningen
Cirka 8,5-9,0% justerad rörelsemarginal
Cirka $900 miljoner operativt kassaflöde
Alla förändringstal i denna rapport jämför med motsvarande period året innan, om inte annat anges.
Viktiga händelser i verksamheten under det första kvartalet 2023
Försäljningen ökade organiskt med 21%, vilket var 15 procentenheter bättre än global fordonsproduktion som växte med 6,1%
(S&P Global april 2023). Vi överträffade fordonsproduktionen kraftigt i alla regioner, främst pga produktlanseringar och högre priser.
Lönsamhet i linje med vår indikaiton, positivt påverkad av prisökningar, organisk tillväxt och kostnadsbesparingsaktiviteter.
Rörelseresultatet var 127 MUSD och rörelsemarginalen 5,1%. Justerat rörelseresultat* ökade från 68 MUSD till 131 MUSD och
justerad rörelsemarginal* ökade från 3,2% till 5,3%, trots fortsatt inflationstryck, volatil fordonsproduktion och negativa
valutaeffekter. Avkastning på sysselsatt kapital var 13,0% och justerad avkastning på sysselsatt kapital* var 13,4%.
Operativt kassaflöde minskade från 70 MUSD till -46 MUSD, främst pga ogynnsamma rörelsekapitaleffekter drivet av den höga
försäljningsökningen. Fritt kassaflöde* minskade till -189 MUSD, eftersom nettoinvesteringar ökade pga kapacitetsökningar och
produktionstrukturaktiviteter. Skuldkvoten* ökade från 1,4x i det fjärde kvartalet 2022 till 1,6x, påverkat av högre nettoskuld.
Utbetald utdelning var 0,66 USD per aktie. 0,45 miljoner aktier återköptes och makulerades i kvartalet.
*För ej U.S. GAAP, se jämförelsetabell.
Nyckeltal
MUSD, förutom aktiedata Kv1 2023 Kv1 2022 Förändring
Försäljning $2 493 $2 124 17%
Rörelseresultat 127 134 -5,4%
Justerat rörelseresultat1) 131 68 93%
Rörelsemarginal 5,1% 6,3% -1,2
Justerad rörelsemarginal1) 5,3% 3,2% 2,1
Vinst per aktie2) $0,86 $0,94 -8,8%
Justerad vinst per aktie1,2) 0,90 0,45 99%
Operativt kassaflöde -46 70 n/a
Avkastning på sysselsatt kapital3) 13,0% 14,6% -1,6
Justerad avkastning på sysselsatt kapital1,3) 13,4% 7,4% 6,0
1) Exklusive kostnader och vinster från kapacitetsanpassningar. Ej U.S. GAAP, se jämförelsetabell 2) Efter utspädning när tillämpligt och exkl. återköpta aktier. 3)
Annualiserat rörelseresultat och vinstandelar i minoritetsbolag i förhållande till genomsnittligt sysselsatt kapital.
Kommentar från Mikael Bratt, VD och koncernchef
Jag är nöjd med vår starka försäljnings-
ökning, driven av produktlanseringar och
prishöjningar, och att vi överträffade
fordonsproduktionen markant i alla regioner.
Rörelsemarginaleffekten av den starka
försäljningsökningen i kvartalet var mindre än
vad den borde vara. Orsaken är att nya
produktlanseringar normalt har lägre operativ
att vårt kassaflöde var tillfälligt svagt i det första kvartalet, p.g.a. den
starka försäljningsökningen i mars.
Vi såg fortsatta uppdateringar av krockteststandarder och
säkerhetsregleringar i USA och Indien vilket understödjer en fortsatt
ökning av säkerhetsinnehåll per fordon. Vår marknadsposition är
stark och vi investerar för ökad produktion med en ny
textilanläggning i Vietnam. Vi fortsätter att undersöka olika sätt att
förbättra vår produktionsstruktur och minska våra kostnader
strukturellt.
Hittills har året utvecklats som förväntat. Liksom förra året
påverkades första kvartalet av ett kraftigt inflationstryck, och i linje
med förra året, förväntar vi oss att motverka detta under återstoden
av året genom produktivitet, kostnadsminskningar och
prisjusteringar.
Detta stärker min övertygelse och förväntan om en justerad
rörelsemarginal som gradvis förbättras, vilket bör göra det möjligt för
oss att både leverera en kraftig ökning av årets kassaflöde och
justerat rörelseresultat, samt att nå de helårsindikationer vi angav i
början av året.
hävstång initialt. Allteftersom produktionen ökar och stabiliseras
förväntas den operativa hävstången förbättras. Tillsammans med
våra åtgärder för kostnadsbesparingar och prisjusteringar
kommer detta att leda till det kraftigt förbättrade helårsresultat vi
förväntar oss.
Affärsförutsättningarna i det första kvartalet 2023 var som väntat
utmanande, särskilt i Europa. Vi rapporterade en justerad
rörelsemarginal i linje med vad vi tidigare kommunicerat.
Andra höjdpunkter i kvartalet var att vår balansräkning och
förväntade kassaflöde möjliggjorde en fortsatt hög
aktieägaravkastning, och att vi emitterade vår första gröna
obligation. Vi förväntar oss ett starkt kassaflöde för helåret, trots
===== SIDA 3 =====
Kvartalsrapport januari - mars 2023
3
Full year 2023 indications
Our outlook indications for 2023 are mainly based on our customer call-offs, a full year 2023 global LVP growth of
around 3%, that we achieve our targeted cost compensation effects and that customer call -off volatility is reduced.
Full Year Indication Full Year Indication
Organic sales growth Around 15% Tax rate2) Around 32%
FX impact on net sales Around 1% negative Operating cash flow3) Around $900 million
Adjusted operating margin1) Around 8.5%-9% Capex, net, of sales Around 6%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual tax items. 3) Excluding unusual items.
The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. Autoliv has
not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs
and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a
result, such reconciliation is not available without unreasonable efforts and Autoliv is unable to determine the probable
significance of the unavailable information.
Conference call and webcast
An earnings conference call will be held at 2:00 p.m. CET today, April 21, 2023. Information regarding how to
participate is available on www.autoliv.com. The presentation slides for the conference call will be available on our
website shortly after the publication of this financial report.
===== SIDA 4 =====
Kvartalsrapport januari - mars 2023
4
Business and market condition update
Supply Chain
Global light vehicle production growth year-over-year was around 6.1% (according to S&P Global April 2023) in Q1
2023, negatively impacted by industry supply chain disruptions. Industry supply chain disruptions also led to low
customer demand visibility and material changes to customer call-offs with short notice, which negatively impacted
our production efficiency and profitability in the quarter. We expect the current industry -wide supply chain
disruptions to be a limiting factor for the global LVP in the first half year of 2023, while we expect that demand and
supply will be in a better balance in the second half of 2023.
Inflation
In Q1 2023, cost pressures from labor, logistics, utilities and other items had a negative impact on our profitability.
Rising raw material costs amounted to around 0.5pp in operating margin headwind in Q1 2023, which was largely
offset by commercial customer recoveries. We expect the raw material price changes in 2023 will to a large extent
be reflected in price changes in our products, albeit with delays of several months. We also expect significant cost
pressure from broad based inflation relating to labor, logistics, utilities and other items, especially in Europe. We
continue to execute on productivity and cost reduction activities to offset these cost pressures, and we are
continuing to have challenging discussions with our customers on non-raw material cost inflation.
Other matters
Direct COVID-19 related costs and governmental support in connection with the COVID-19 pandemic were
immaterial in the first quarter of 2023.
The direct impact of the war in Ukraine on our business is limited. Autoliv has one facility with fewer than 20
employees in Russia. Our operations in Russia are currently suspended. Autoliv net assets in Russia consist of
USD cash items, which amount to around $3 million. Autoliv has no operations in Ukraine.
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January and April 2023. All rights reserved.
===== SIDA 5 =====
Kvartalsrapport januari - mars 2023
5
Key Performance Trends
Net Sales Development by region Operating and adjusted operating income and margins
Capex and D&A Operating and adjusted operating Cash Flow
Return on Capital Employed Cash Conversion*
Key definitions ------------------------------------------------------------------------------------------------------------
Capex, net: Capital Expenditure, net.
D&A: Depreciation and Amortization.
Adj. operating income and margin*: Capacity alignments
include non-recurring costs related to our structural
efficiency and business cycle management programs.
Operating cash flow excluding EC antitrust payment*:
Adjusted for EC antitrust payment of $203 million in 2019.
Cash conversion*: Free cash flow* in relation to net income
adjusted for EC antitrust payment in 2019. Free cash flow
defined as operating cash flow less capital expenditure,
net.
===== SIDA 6 =====
Kvartalsrapport januari - mars 2023
6
Consolidated sales development
First quarter 2023
Consolidated sales First quarter
Reported
(U.S. GAAP)
Currency
effects1)
Organic
change*
(Dollars in millions) 2023 2022
Airbags, Steering Wheels and Other2) $1,673 $1,381 21% (3.6)% 25%
Seatbelt Products2) 820 744 10% (3.5)% 14%
Total $2,493 $2,124 17% (3.6)% 21%
Asia $936 $857 9.2% (7.8)% 17%
Whereof: China 453 447 1.2% (7.2)% 8.4%
Asia excl. China 483 410 18% (8.4)% 26%
Americas 831 692 20% 2.4% 18%
Europe 725 575 26% (4.6)% 31%
Total $2,493 $2,124 17% (3.6)% 21%
1) Effects from currency translations. 2) Including Corporate and other sales.
Sales by product – Airbags, Steering Wheels
and Other
All major product categories increased organically* in
the quarter. The largest contributor to the increase was
inflatable curtains and steering wheels, followed by side
airbags and passenger airbags.
Sales by product - Seatbelts
The main contributor to Seatbelt products organic growth*
was Europe, followed by Asia excluding China and
Americas.
Sales by region
Our global organic sales* increased by 21% compared
to the global LVP increase of 6.1% (according to S&P
Global, April 2023). The 15pp outperformance was
driven by new product launches, price increases and a
positive geographical LVP mix development.
Autoliv outperformed LVP by around 16pp in China, by
around 14pp in Europe and in Asia excl. China and by
around 7pp in Americas.
Q1 2023 organic growth* Americas Europe China Asia excl. China Global
Autoliv 18% 31% 8.4% 26% 21%
Main growth drivers Honda, Nissan, GM VW, Stellantis,
Renault
Lixiang Auto, Honda,
BYD
Hyundia, Toyota,
Nissan Honda, Hyundai, VW
Main decline drivers Ford, BMW Mitsubishi Nissan, GM, Xpeng Ford, Xpeng, Great
Wall
Light vehicle production development
Change vs same period last year according to S&P Global
Q1 2023 Americas Europe China Asia excl. China Global
LVP (Apr 2023) 11% 17% (7.5)% 12% 6.1%
LVP (Jan 2023) 7.1% 5.9% (8.1)% 9.7% 2.6%
===== SIDA 7 =====
Kvartalsrapport januari - mars 2023
7
Key launches in the first quarter 2023
Fisker Ocean Subaru Impreza/Crosstrek Buick Electra E5
Jeep Avenger Hyundai Kona Havel H-Dog
Xpeng P7i Toyota Prius Chevrolet Trax
Driver/Passenger Airbags Seatbelts Side Airbags
Head/Inflatable Curtain Airbags Steering Wheel Knee Airbag
Front Center Airbag Bag-in-Belt Pyrotechnical Safety Switch
Pedestrian Airbag Hood Lifter
Available as EV/PHEV
===== SIDA 8 =====
Kvartalsrapport januari - mars 2023
8
Financial development
Selected Income Statement items
Condensed income statement First quarter
(Dollars in millions, except per share data) 2023 2022 Change
Net sales $2,493 $2,124 17%
Cost of sales (2,113) (1,836) 15%
Gross profit $379 $288 32%
S,G&A (132) (115) 14%
R,D&E, net (116) (107) 8.7%
Amortization of intangibles (0) (1) (70)%
Other income (expense), net (4) 70 n/a
Operating income $127 $134 (5.4)%
Adjusted operating income1) $131 $68 93%
Financial and non-operating items, net (18) (15) 22%
Income before taxes $109 $119 (8.8)%
Income taxes (34) (36) (5.0)%
Net income $74 $83 (11)%
Earnings per share2) 0.86 0.94 (8.8)%
Adjusted earnings per share1,2) $0.90 $0.45 99%
Gross margin 15.2% 13.6% 1.6pp
S,G&A, in relation to sales (5.3)% (5.4)% 0.1pp
R,D&E, net in relation to sales (4.7)% (5.0)% 0.4pp
Operating margin 5.1% 6.3% (1.2)pp
Adjusted operating margin1) 5.3% 3.2% 2.1pp
Tax Rate 31.6% 30.3% 1.3pp
Other data
No. of shares at period-end in millions3) 85.8 87.4 (1.8)%
Weighted average no. of shares in millions4) 86.1 87.5 (1.7)%
Weighted average no. of shares in millions, diluted4) 86.3 87.8 (1.7)%
1) Non-U.S. GAAP measure, excluding effects from capacity alignment and antitrust related matters. See reconciliation table. 2) Assuming dilution when applicable and
net of treasury shares. 3) Excluding dilution and net of treasury shares. 4) Net of treasury shares.
First quarter 2023 development
Gross profit increased by $91 million and the gross margin
increased by 1.6pp compared to the same quarter 2022.
The gross profit increase was primarily driven by price
increases, volume growth and lower costs for premium
freight. This was partly offset by increased costs for
personnel to manage the high customer call-off volatility as
well as to prepare for higher sales levels expected in
coming quarters. Other adverse effects were higher costs
for raw materials and unfavorable FX translation effects.
S,G&A costs increased by $16 million compared to the prior
year, mainly due to increased costs for personnel and
projects, partly offset by positive currency translation
effects. S,G&A costs in relation to sales decreased from
5.4% to 5.3%.
R,D&E, net costs increased by around $9 million compared
to the prior year, mainly due to higher costs for personnel,
partly offset by positive currency translation effects. R,D&E,
net, in relation to sales decreased from 5.0% to 4.7%.
Other income (expense), net was negative $4 million
compared to $70 million in the prior year. The prior year was
positively impacted by around $80 million from the sale of a
property in Japan.
Operating income decreased by $7 million compared to
the same period in 2022, mainly as a consequence of the
change in Other income (expense) and the higher costs for
S,G&A and R,D&E, net, partly offset by the higher gross
profit.
Adjusted operating income* increased by $63 million
compared to the prior year, mainly due to higher gross profit,
partly offset by the higher costs for S,G&A and R,D&E, net.
Financial and non-operating items, net, was negative $18
million compared to negative $15 million a year earlier, mainly
due to increased interest expense as an effect of higher debt
and higher interest rates.
Income before taxes decreased by $11 million compared to
the prior year, mainly due to the lower operating income.
Tax rate was 31.6% compared to 30.3% in the same period
last year. Discrete tax items, net, increased the tax rate this
quarter by 0.8pp. Discrete tax items increased the tax rate by
0.6pp in the same period last year.
Earnings per share, diluted decreased by $0.08 compared
to a year earlier. The main drivers were $0.52 from capacity
alignments and $0.05 from taxes, partly offset by $0.51 from
higher adjusted operating income*.
===== SIDA 9 =====
Kvartalsrapport januari - mars 2023
9
Selected Balance Sheet and Cash Flow items
Selected Balance Sheet items First quarter
(Dollars in millions) 2023 2022 Change
Trade working capital1) $1,409 $1,352 4.2%
Trade working capital in relation to sales2) 14.1% 15.9% (1.8)pp
- Receivables outstanding in relation to sales3) 21.1% 21.5% (0.3)pp
- Inventory outstanding in relation to sales4) 9.9% 10.7% (0.9)pp
- Payables outstanding in relation to sales5) 16.9% 16.3% 0.6pp
Cash & cash equivalents 713 938 (24)%
Gross Debt6) 2,179 1,994 9.3%
Net Debt7) 1,477 1,057 40%
Capital employed8) 4,118 3,731 10%
Return on capital employed9) 13.0% 14.6% (1.6)pp
Total equity $2,641 $2,674 (1.2)%
Return on total equity10) 11.3% 12.5% (1.2)pp
Leverage ratio11) 1.6 1.4 0.2
1) Outstanding receivables and outstanding inventory less outstanding payables. 2) Outstanding receivables and outstanding in ventory less outstanding payables
relative to annualized quarterly sales. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annu alized quarterly
sales. 5) Outstanding payables relative to annualized quarterly sales. 6) Short - and long-term interest-bearing debt. 7) Short- and long-term debt less cash and
cash equivalents and debt-related derivatives. Non U.S. GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and
income from equity method investments, relative to average capital employed. 10) Annualized net income relative to average total equity. 11) Net debt a djusted for
pension liabilities in relation to EBITDA. Non U.S. GAAP measure. See reconciliation table.
Selected Cash Flow items First quarter
(Dollars in millions) 2023 2022 Change
Net income $74 $83 (11)%
Changes in operating working capital (202) (18) 1032%
Depreciation and amortization 92 95 (3.6)%
Gain on divestiture of property - (80) n/a
Other, net (10) (11) (9.0)%
Operating cash flow $(46) $70 n/a
Capital expenditure, net (143) (17) 736%
Free cash flow1) $(189) $53 n/a
Cash conversion2) n/a 64% n/a
Shareholder returns
- Dividends paid (57) (56) 1.7%
- Share repurchases (42) (18) 132%
Cash dividend paid per share $(0.66) $(0.64) 3.4%
Capital expenditures, net in relation to sales 5.7% 0.8% 4.9pp
1) Operating cash flow less Capital expenditures, net. Non U.S. GAAP measure. See enclosed reconciliation table. 2) Free cash flow relative to Net income. Non
U.S. GAAP measure. See reconciliation table.
First quarter 2023 development
Trade working capital* increased by $57 million
compared to the same period last year, where the main
drivers were $282 million in higher receivables and $73
million in higher inventories, partly offset by $298 million
in higher accounts payables.
Operating cash flow decreased by $116 million to
negative $46 million compared to the same period last
year, mainly due to negative working capital effects.
Capital expenditure, net increased by $126 million,
mainly due to the impact on the prior year of $95 million
from the sale of property, plant and equipment, but also
due to increased investments related to capacity
expansions and footprint activities. Capital expenditure, net
in relation to sales was 5.7% vs. 0.8% a year earlier.
Free cash flow* was negative $189 million, compared to
$53 million in the same period prior year. The decline was
due to the lower operating cash flow and higher capital
expenditure, net.
===== SIDA 10 =====
Kvartalsrapport januari - mars 2023
10
Cash conversion* defined as free cash flow* in relation
to net income, was not meaningful in the period as free
cash flow was negative.
Net debt* was $1,477 million as of March 31, 2023,
which was $420 million higher than a year earlier.
Liquidity position. As of March 31, 2023, our cash
balance was around $0.7 billion, and including
committed, unused loan facilities, our liquidity position
was around $1.8 billion.
Leverage ratio*. As of March 31, 2023, the Company had
a leverage ratio of 1.6x compared to 1.4x as of March 31,
2022, as the net debt* increased proportionally more than
the 12 months trailing adjusted EBITDA* increased.
Total equity decreased by $33 million compared to March
31, 2022. This is mainly due to $225 million in dividend
payment and stock repurchases of $139 million as well as
$106 million in adverse currency translation effects, partly
offset by $416 million from net income.
Headcount
Mar 31 Dec 31 Mar 31
2023 2022 2022
Headcount 71,300 69,100 64,800
Whereof: Direct headcount in manufacturing 52,700 50,600 47,000
Indirect headcount 18,600 18,400 17,800
Temporary personnel 11% 11% 9.4%
By March 31, 2023, total headcount increased by 6,500
compared to a year earlier. The indirect workforce
increased by 4.5% while the direct workforce increased
by 12%, as sales grew organically by 21% compared to
a year earlier. The increase also reflects preparations
for the expected sales growth in coming quarters.
Compared to December 31, 2022, total headcount
increased by around 2,200, direct workforce increased by
around 2,100 and the indirect workforce increased by
around 200.
===== SIDA 11 =====
Kvartalsrapport januari - mars 2023
11
Other Items
• On February 17, 2023, Autoliv announced the renewal
for one year of its €3 billion guaranteed euro medium
term note program, originally established on April 11,
2019.
• On March 9, 2023, Autoliv announced it had priced a
5-year bond offering of EUR 500 million in the
Eurobond market. The notes were issued as green
bonds on March 15 at a coupon of 4.25%.
• On April 20, 2023, Autoliv announced its plans to
expand to Vietnam, building a new state of the art
airbag cushion and fabric plant in Vietnam. The
investment in the new textile facility is in response to
customer demands and is intended to meet expanded
future airbag production needs for the growing Asia
market.
• In Q1 2023, Autoliv repurchased and retired 0.45
million shares of common stock at an average price of
$92.19 per share under the Autoliv 2022-2024 stock
purchase program.
Next Report
Autoliv intends to publish the quarterly earnings report
for the second quarter of 2023 on Friday, July 21, 2023.
Footnotes
*Non-U.S. GAAP measure, see enclosed reconciliation
tables.
Inquiries: Investors and Analysts
Anders Trapp
Vice President Investor Relations
Tel +46 (0)8 5872 0671
Henrik Kaar
Director Investor Relations
Tel +46 (0)8 5872 0614
Inquiries: Media
Gabriella Ekelund
Senior Vice President Communications
Tel +46 (0)70 612 6424
Denna information är sådan information som Autoliv,
Inc. är skyldigt att offentliggöra enligt EUs
marknadsmissbruksförordning. Informationen
lämnades, genom ovanstående kontaktpersons
försorg, för offentliggörande den 21 april 2023 kl 12.00
CET.
Definitions and SEC Filings
Please refer to www.autoliv.com or to our Annual Report
for definitions of terms used in this report. Autoliv’s annual
report to stockholders, annual report on Form 10-K,
quarterly reports on Form 10Q, proxy statements,
management certifications, press releases, current
reports on Form 8-K and other documents filed with the
SEC can be obtained free of charge from Autoliv at the
Company’s address. These documents are also available
at the SEC’s website www.sec.gov and at Autoliv’s
corporate website www.autoliv.com.
This report includes content supplied by S&P Global;
Copyright © Light Vehicle Production Forecast, January
and April 2023. All rights reserved. S&P Global is a global
supplier of independent industry information. The
permission to use S&P Global copyrighted reports, data
and information does not constitute an endorsement or
approval by S&P Global of the manner, format, context,
content, conclusion, opinion or viewpoint in which S&P
Global reports, data and information or its derivations are
used or referenced herein.
===== SIDA 12 =====
Kvartalsrapport januari - mars 2023
12
“Safe Harbor Statement”
This report contains statements that are not historical facts but
rather forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-
looking statements include those that address activities, events
or developments that Autoliv, Inc. or its management believes or
anticipates may occur in the future. All forward-looking
statements are based upon our current expectations, various
assumptions and/or data available from third parties. Our
expectations and assumptions are expressed in good faith and
we believe there is a reasonable basis for them. However, there
can be no assurance that such forward-looking statements will
materialize or prove to be correct as forward-looking statements
are inherently subject to known and unknown risks, uncertainties
and other factors which may cause actual future results,
performance or achievements to differ materially from the future
results, performance or achievements expressed in or implied
by such forward-looking statements. In some cases, you can
identify these statements by forward-looking words such as
“estimates”, “expects”, “anticipates”, “projects”, “plans”,
“intends”, “believes”, “may”, “likely”, “might”, “would”, “should”,
“could”, or the negative of these terms and other comparable
terminology, although not all forward-looking statements contain
such words. Because these forward-looking statements involve
risks and uncertainties, the outcome could differ materially from
those set out in the forward-looking statements for a variety of
reasons, including without limitation, general economic
conditions, including inflation; the impacts of the coronavirus
(COVID-19) pandemic on the Company’s financial condition,
business operations, operating costs, liquidity and competition
and on the global economy; 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; disruptions and
impacts relating to the ongoing war between Russia and
Ukraine; 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 judgements 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; 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 medium
term financial targets; and other risks and uncertainties
identified under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our Annual Reports
and Quarterly Reports on Forms 10-K and 10-Q and any
amendments thereto. For any forward-looking statements
contained in this or any other document, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995, and we assume no obligation to update publicly or
revise any forward-looking statements in light of new
information or future events, except as required by law.
===== SIDA 13 =====
Kvartalsrapport januari - mars 2023
13
Consolidated Statements of Income
(Dollars in millions, except per share data, unaudited) First quarter Latest 12 Full Year
2023 2022 months 2022
Airbags, Steering Wheels and Other1) $1,673 $1,381 $6,099 $5,807
Seatbelt products1) 820 744 3,111 3,035
Total net sales $2,493 $2,124 $9,211 $8,842
Cost of sales (2,113) (1,836) (7,724) (7,446)
Gross profit $379 $288 $1,487 $1,396
Selling, general & administrative expenses (132) (115) (454) (437)
Research, development & engineering expenses, net (116) (107) (400) (390)
Amortization of intangibles (0) (1) (2) (3)
Other income (expense), net (4) 70 20 93
Operating income $127 $134 $652 $659
Income from equity method investments 2 1 4 3
Interest income 2 1 7 6
Interest expense (19) (13) (67) (60)
Other non-operating items, net (2) (4) (4) (5)
Income before income taxes $109 $119 $592 $603
Income taxes (34) (36) (176) (178)
Net income $74 $83 $416 $425
Less: Net income attributable to non-controlling interest 0 0 1 2
Net income attributable to controlling interest $74 $83 $415 $423
Earnings per share2) $0.86 $0.94 $4.78 $4.85
1) Including Corporate and other sales. 2) Assuming dilution when applicable and net of treasury shares.
===== SIDA 14 =====
Kvartalsrapport januari - mars 2023
14
Consolidated Balance Sheets
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Dollars in millions, unaudited) 2023 2022 2022 2022 2022
Assets
Cash & cash equivalents $713 $594 $483 $327 $938
Receivables, net 2,106 1,907 1,893 1,779 1,824
Inventories, net 986 969 924 903 913
Prepaid expenses 166 160 218 195 170
Other current assets 90 84 69 81 79
Total current assets $4,061 $3,714 $3,587 $3,285 $3,923
Property, plant & equipment, net 2,045 1,960 1,795 1,806 1,853
Operating leases right-of-use assets 169 160 116 120 126
Goodwill 1,376 1,375 1,364 1,373 1,384
Intangible assets, net 7 7 5 6 7
Investments and other non-current assets 528 502 467 439 476
Total assets $8,185 $7,717 $7,334 $7,030 $7,769
Liabilities and equity
Short-term debt $577 $711 $692 $559 $347
Accounts payable 1,683 1,693 1,503 1,303 1,385
Accrued expenses 969 915 965 944 1,050
Operating lease liabilities - current 41 39 35 37 38
Other current liabilities 258 283 263 218 253
Total current liabilities $3,529 $3,642 $3,458 $3,061 $3,073
Long-term debt 1,601 1,054 1,037 1,060 1,647
Pension liability 159 154 149 155 172
Operating lease liabilities - non-current 127 119 81 83 87
Other non-current liabilities 128 121 118 113 116
Total non-current liabilities $2,015 $1,450 $1,385 $1,410 $2,022
Total parent shareholders’ equity 2,627 2,613 2,478 2,544 2,659
Non-controlling interest 14 13 13 15 15
Total equity $2,641 $2,626 $2,491 $2,558 $2,674
Total liabilities and equity $8,185 $7,717 $7,334 $7,030 $7,769
===== SIDA 15 =====
Kvartalsrapport januari - mars 2023
15
Consolidated Statements of Cash Flow
First quarter Latest 12 Full Year
(Dollars in millions, unaudited) 2023 2022 months 2022
Net income $74 $83 $416 $425
Depreciation and amortization 92 95 359 363
Gain on divestiture of property - (80) - (80)
Other, net (10) (11) (53) (54)
Changes in operating working capital, net (202) (18) (126) 58
Net cash (used in) provided by operating activities $(46) $70 $597 $713
Expenditures for property, plant and equipment (144) (112) (617) (585)
Proceeds from sale of property, plant and equipment 0 95 6 101
Net cash used in investing activities $(143) $(17) $(611) $(485)
Net cash before financing1) $(189) $53 $(13) $228
(Decrease) increase in short term debt (135) 9 23 167
Decrease in short-term part of long-term debt - - (302) (302)
Increase (decrease) in long-term debt 533 (10) 487 (55)
Dividends paid (57) (56) (225) (224)
Share repurchases (42) (18) (139) (115)
Common stock options exercised 0 0 0 0
Dividend paid to non-controlling interests - - (2) (2)
Net cash provided by (used in) financing activities $300 $(74) $(157) $(531)
Effect of exchange rate changes on cash 7 (11) (55) (73)
Increase (decrease) in cash and cash equivalents $119 $(31) $(225) $(375)
Cash and cash equivalents at period-start 594 969 938 969
Cash and cash equivalents at period-end $713 $938 $713 $594
1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliat ion table.
===== SIDA 16 =====
Kvartalsrapport januari - mars 2023
16
RECONCILIATION OF U.S. GAAP TO NON-U.S. GAAP MEASURES
In this report we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring
Autoliv's performance. We believe that these measures assist investors and management in analyzing trends in the
Company's business for the reasons given below. Investors should not consider these n on-U.S. GAAP measures as
substitutes, but rather as additions, to financial reporting measures prepared in accordance with U.S. GAAP. It should
be noted that these measures, as defined, may not be comparable to similarly titled measures used by other
companies.
Components in Sales Increase/Decrease
Since the Company historically generates approximately 75% of sales in currencies other than in the reporting
currency (i.e. U.S. dollars) and currency rates have been volatile, we analyze the Company's sales trends and
performance as changes in organic sales growth. This presents the increase or decrease in the overall U.S. dollar net
sales on a comparable basis, allowing separate discussions of the impact of acquisitions/divestitures and exchange
rates. The tables on page 6 present changes in organic sales growth as reconciled to the change in the total U.S.
GAAP net sales.
Trade Working Capital
Due to the need to optimize cash generation to create value for shareholders, management focuses on operationa lly
derived trade working capital as defined in the table below. The reconciling items used to derive this measure are, by
contrast, managed as part of our overall management of cash and debt, but they are not part of the responsibilities of
day-to-day operations' management.
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Dollars in millions) 2023 2022 2022 2022 2022
Receivables, net $2,106 $1,907 $1,893 $1,779 $1,824
Inventories, net 986 969 924 903 913
Accounts payable (1,683) (1,693) (1,503) (1,303) (1,385)
Trade Working capital $1,409 $1,183 $1,314 $1,379 $1,352
===== SIDA 17 =====
Kvartalsrapport januari - mars 2023
17
Net Debt
Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of
efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted
for DRDs in their analyses of the Company’s debt, therefore we provide this non -U.S. GAAP measure. DRDs are fair
value adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value
adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By
adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest
fair values.
Mar 31 Dec 31 Sep 30 Jun 30 Mar 31
(Dollars in millions) 2023 2022 2022 2022 2022
Short-term debt $577 $711 $692 $559 $347
Long-term debt 1,601 1,054 1,037 1,060 1,647
Total debt $2,179 $1,766 $1,729 $1,619 $1,994
Cash & cash equivalents (713) (594) (483) (327) (938)
Debt issuance cost/Debt-related
derivatives, net 12 12 42 26 1
Net debt $1,477 $1,184 $1,288 $1,318 $1,057
Dec 31 Dec 31 Dec 31 Dec 31
(Dollars in millions) 2021 2020 2019 2018
Short-term debt $346 $302 $368 $621
Long-term debt 1,662 2,110 1,726 1,609
Total debt $2,008 $2,411 $2,094 $2,230
Cash & cash equivalents (969) (1,178) (445) (616)
Debt issuance cost/Debt-related
derivatives, net 13 (19) 0 5
Net debt $1,052 $1,214 $1,650 $1,619
===== SIDA 18 =====
Kvartalsrapport januari - mars 2023
18
Leverage ratio
The non-U.S. GAAP measure “net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management
uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes
that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would
be prepared to leverage its operations. In 2021, EBITDA calculation was redefined to exclude other non -operating
items and income from equity method investments. Historic EBITDA and leverage ratio have been recalculated
resulting in minor adjustments. Autoliv’s policy is to maintain a leverage ratio commensurate with a strong investment
grade credit rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in relation to
adjusted EBITDA*. The long-term target is to maintain a leverage ratio of around 1.0x within a range of 0.5x to 1.5x.
Mar 31 Dec 31 Mar 31
(Dollars in millions) 2023 2022 2022
Net debt1) $1,477 $1,184 $1,057
Pension liabilities 159 154 172
Debt per the Policy $1,636 $1,338 $1,229
Net income2) $416 $425 $363
Income taxes2) 176 178 153
Interest expense, net2, 3) 60 54 53
Other non-operating items, net2) 4 5 5
Income from equity method investments2) (4) (3) (2)
Depreciation and amortization of intangibles2) 359 363 391
Capacity alignments and antitrust related matters2) 10 (61) (58)
EBITDA per the Policy (Adjusted EBITDA) $1,021 $961 $905
Leverage ratio 1.6 1.4 1.4
1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense including cost for
extinguishment of debt, if any, less interest income.
===== SIDA 19 =====
Kvartalsrapport januari - mars 2023
19
Free Cash Flow, Net Cash Before Financing and Cash Conversion
Management uses the non-U.S. GAAP measure “free cash flow” to analyze the amount of cash flow being generated
by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow
generation level that enables strategic value creation options such as dividends or acquisitions. For details on free
cash flow, see the reconciliation table below. Management uses the non-U.S. GAAP measure “net cash before
financing” to analyze and disclose the cash flow generation available for servicing external stakeholders such as
shareholders and debt stakeholders. For details on net cash before financing, see the reconciliation table be low.
Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is
converted into free cash flow. The measure is a tool to evaluate how efficient the Company utilizes its resources. For
details on cash conversion, see the reconciliation table below.
First quarter Latest 12 Full Year
(Dollars in millions) 2023 2022 months 2022
Net income $74 $83 $416 $425
Changes in operating working capital (202) (18) (126) 58
Depreciation and amortization 92 95 359 363
Gain on divestiture of property - (80) - - (80)
Other, net (10) (11) (53) (54)
Operating cash flow $(46) $70 $597 $713
Capital expenditure, net (143) (17) (611) (485)
Free cash flow1) $(189) $53 $(13) $228
Net cash before financing $(189) $53 $(13) $228
Cash conversion2) n/a 64% n/a 54%
1) Operating cash flow less Capital expenditures, net. 2) Free cash flow relative to Net income.
Full year Full year Full year Full year
(Dollars in millions) 2021 2020 2019 20181)
Net income $437 $188 $463 $184
Changes in operating assets and liabilities (63) 277 47 (229)
Depreciation and amortization 394 371 351 397
Other, net2) (15) 13 (220) 239
Operating cash flow $754 $849 $641 $591
EC antitrust payment - - (203) -
Operating cash flow excl antitrust $754 $849 $844 $591
Capital expenditure, net (454) (340) (476) (555)
Free cash flow3) $300 $509 $165 $36
Free cash flow excl antitrust payment4) $300 $509 $368 $36
Acquisitions of businesses and other, net - - - (73)
Net cash before financing $300 $509 $165 $(37)
Cash conversion5) 69% 270% 36% 20%
Cash conversion excl antitrust6) 69% 270% 79% 20%
1) Including Discontinued Operations. 2) Including EC antitrust non -cash provision 2018 and EC antitrust payment 2019. 3) Operating cash flow less Capital
expenditures, net. 4) For 2019, Operating cashflow excluding EC antitrust payment less Capital expenditures, net. 5) Free cas h flow relative to Net income. 6) For
2019, Free cash flow excluding EC antitrust payment relative to Net income.
===== SIDA 20 =====
Kvartalsrapport januari - mars 2023
20
Items Affecting Comparability
We believe that comparability between periods is improved through the exclusion of certain items. To assist investors
in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures
exclusive of these items.
The following table reconciles Income before income taxes, Net income attributable to controlling interest, capital
employed, which are inputs utilized to calculate Return on Capital Employed (“ROCE”), adjusted ROCE and Return on
Total Equity (“ROE”). The Company believes this presentation may be useful to investors and industry analysts who
utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for
comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for
purposes of comparing its financial performance with the financial performance of other companies in the industry and
providing useful information regarding the factors and trends affecting the Company’s business.
As used by the Company, ROCE is annualized operating income and income from equity method investments,
relative to average capital employed. Adjusted ROCE is annualized operating income and income from equity method
investments, relative to average capital employed as adjusted to exclude certain non-recurring items. The Company
believes ROCE and adjusted ROCE are useful indicators of long-term performance both absolute and relative to the
Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business
relative to that of its peers.
ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s
management believes that ROE is a useful indicator of how well management creates value for its shareholders
through its operating activities and its capital management.
Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non -U.S. GAAP measure.
First quarter 2023 First quarter 2022
(Dollars in millions, except per share
data)
Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $127 $4 $131 $134 $(66) $68
Operating margin 5.1% 0.2% 5.3% 6.3% (3.1)% 3.2%
Income before taxes 109 4 113 119 (66) 53
Net income attributable to controlling interest 74 3 77 83 (43) 40
Capital employed 4,118 3 4,121 3,731 (43) 3,688
Return on capital employed2) 13.0% 0.4% 13.4% 14.6% (7.1)% 7.4%
Return on total equity3) 11.3% 0.5% 11.8% 12.5% (6.5)% 6.1%
Earnings per share4) $0.86 $0.03 $0.90 $0.94 $(0.49) $0.45
1) Effects from capacity alignment and antitrust related matters. 2) Annualized operating income and income from equity metho d investments, relative to average capital
employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares.
===== SIDA 21 =====
Kvartalsrapport januari - mars 2023
21
Latest 12 months Full year 2022
Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $652 $10 $661 $659 $(61) $598
Operating margin 7.1% 0.1% 7.2% 7.5% (0.7)% 6.8%
1) Effects from capacity alignment.
Full year 2021 Full year 2020
Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $675 $8 $683 $382 $99 $482
Operating margin 8.2% 0.1% 8.3% 5.1% 1.4% 6.5%
1) Costs for capacity alignment and antitrust related matters.
Full year 2019 Full year 2018
(Dollars in millions, except per share
data)
Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $726 $49 $774 $686 $222 $908
Operating margin, % 8.5% 0.6% 9.1% 7.9% 2.6% 10.5%
1) Costs for capacity alignment and antitrust related matters .
Items included in non-U.S. GAAP adjustments First quarter 2023 First quarter 2022
Adjustment
Million
Adjustment
Per share
Adjustment
Million
Adjustment
Per share
Capacity alignment $3 0.04 $(66) $(0.76)
Legal costs 1 0.01 - -
Total adjustments to operating income $4 $0.05 $(66) $(0.76)
Tax on non-U.S. GAAP adjustments1) (1) (0.01) 23 0.26
Total adjustments to net income $3 0.03 $(43) $(0.49)
Average number of shares outstanding - diluted2) 86.9 87.8
Annualized adjustment on return on capital employed 17 (265)
Adjustment on return on capital employed 0.4% (7.1)%
Annualized adjustment on Return on total equity $12 $(173)
Adjustment on return on total equity 0.5% (6.5)%
1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s). 2) Annualized average number of outstanding shares
===== SIDA 22 =====
Kvartalsrapport januari - mars 2023
22
(Dollars in millions, unaudited) 2022 2021 2020 2019 2018
Sales and Income
Net sales $8,842 $8,230 $7,447 $8,548 $8,678
Airbag sales1) 5,807 5,380 4,824 5,676 5,699
Seatbelt sales 3,035 2,850 2,623 2,871 2,980
Operating income 659 675 382 726 686
Net income attributable to controlling interest 423 435 187 462 376
Earnings per share (USD) – basic 4.86 4.97 2.14 5.29 4.32
Earnings per share (USD) – assuming dilution2) 4.85 4.96 2.14 5.29 4.31
Gross margin3) 15.8% 18.4% 16.7% 18.5% 19.7%
R,D&E net in relation to sales (4.4)% (4.7)% (5.0)% (4.7)% (4.8)%
S,G&A in relation to sales (4.9)% (5.3)% (5.2)% (4.7)% (4.5)%
Operating margin4) 7.5% 8.2% 5.1% 8.5% 7.9%
Adjusted operating margin5,6) 6.8% 8.3% 6.5% 9.1% 10.5%
Balance Sheet
Trade working capital7) 1,183 1,332 1,366 1,417 1,396
Trade working capital in relation to sales8) 12.7% 15.7% 13.6% 16.2% 15.9%
Receivables outstanding in relation to sales9) 20.4% 20.0% 18.1% 18.6% 19.0%
Inventory outstanding in relation to sales10) 10.4% 9.2% 7.9% 8.5% 8.6%
Payables outstanding in relation to sales11) 18.1% 13.5% 12.5% 10.8% 11.7%
Total equity 2,626 2,648 2,423 2,122 1,897
Total parent shareholders’ equity per share (USD) 30.30 30.10 27.56 24.19 21.63
Current assets excluding cash 3,119 2,705 3,091 2,557 2,670
Property, plant and equipment, net 1,960 1,855 1,869 1,816 1,690
Intangible assets (primarily goodwill) 1,382 1,395 1,412 1,410 1,423
Capital employed 3,810 3,700 3,637 3,772 3,516
Net debt6) 1,184 1,052 1,214 1,650 1,619
Total assets 7,717 7,537 8,157 6,771 6,722
Long-term debt 1,054 1,662 2,110 1,726 1,609
Return on capital employed12,13) 17.5% 18.3% 10.0% 20.0% 17.0%
Return on total equity13,14) 16.3% 17.1% 9.0% 23.0% 13.0%
Total equity ratio 34% 35% 30% 31% 28%
Cash flow and other data
Operating Cash flow15) 713 754 849 641 591
Depreciation and amortization15) 363 394 371 351 397
Capital expenditures, net15) 485 454 340 476 555
Capital expenditures, net in relation to sales15) 5.5% 5.5% 4.6% 5.6% 5.7%
Free Cash flow6,15,16) 228 300 509 165 36
Cash conversion6,15,17) 54% 69% 270% 36% 20%
Direct shareholder return15,18) 339 165 54 217 214
Cash dividends paid per share (USD) 2.58 1.88 0.62 2.48 2.46
Number of shares outstanding (millions)19) 86.2 87.5 87.4 87.2 87.1
Number of employees, December 31 61,700 55,900 61,000 58,900 57,700
1) Including steering wheels, inflators and initiators. 2) Assuming dilution and net of treasury shares. 3) Gross profit rela tive to sales. 4) Operating income relative to sales. 5)
Excluding costs for capacity alignment, antitrust related matters and separation of our business segments. 6) Non -US GAAP measure, for reconciliation see tables above. 7)
Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to
annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inve ntory relative to annualized fourth quarter sales.
11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method inve stments, relative to average capital
employed. 13) The Company has decided not to recalculate prior periods since the distribution of Veoneer had a significant impact on total equity and capital employed
making the comparison less meaningful. 14) Income relative to average total equity. 15) Including Discontinued Operations 201 8. 16) Operating cash flow less Capital
expenditures, net. 17) Free cash flow relative to Net income. 18) Dividends paid and Shares repurchased. 19) At year end, exc luding dilution and net of treasury shares.