===== SIDA 1 ===== Kvartalsrapport januari – mars 2024 Stockholm, Sverige, 26 april, 2024 (NYSE: ALV och SSE: ALIV.sdb) ===== SIDA 2 ===== Kvartalsrapport januari - mars 2024 1 Kvartal 1 2024: Förbättringar på bred front Finansiell sammanfattning Kv1 $2 615 miljoner försäljning 5% försäljningsökning 5% organisk försäljningsökning* 7,4% rörelsemarginal 7,6% justerad rörelsemarginal* $1,52 vinst/aktie, 77% ökning $1,58 justerad vinst/aktie*, 76% ökning Utsikter för helåret 2024 Cirka 5% organisk försäljningsökning Cirka 0% valutaeffekt på försäljningen Cirka 10,5% justerad rörelsemarginal Cirka $1,2 miljarder 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 2024 Rekordförsäljning med en organisk* ökning om 5%, vilket var sex procentenheter bättre än den globala fordonsproduktionens minskning på 1% (S&P Global april 2024). Vi överträffade fordonsproduktionen i alla regioner, främst tack vare nya produktlanseringar och högre priser som överförts från förra året. Lönsamheten ökade avsevärt, främst drivet av organisk tillväxt och kostnadsbesparingar. Rörelseresultatet var 194 MUSD och rörelsemarginalen var 7,4%. Det justerade rörelseresultatet* förbättrades från 131 MUSD till 199 MUSD och den justerade rörelsemarginalen* ökade från 5,3% till 7,6%. Avkastning på sysselsatt kapital uppgick till 19,7% och justerad avkastning på sysselsatt kapital* till 20,2%. Stark förbättring av kassaflödet. Operativt kassaflöde ökade med 168 MUSD och det fria kassaflödet* med 171 MUSD. Skuldkvoten* på 1,3x var i det närmaste oförändrad jämfört med tre månader tidigare och 0,3x lägre än ett år tidigare trots att 700 MUSD har återförts till aktieägarna som utdelningar och återköp av aktier under de senaste 12 månaderna. Under kvartalet betalades en utdelning på 0,68 USD per aktie och 1,37 miljoner aktier återköptes och makulerades. *För ej U.S. GAAP se jämförelsetabell. Nyckeltal MUSD, förutom aktiedata Kv1 2024 Kv1 2023 Förändring Försäljning $2 615 $2 493 4,9% Rörelseresultat 194 127 52% Justerat rörelseresultat1) 199 131 51% Rörelsemarginal 7,4% 5,1% 2,3 Justerad rörelsemarginal1) 7,6% 5,3% 2,3 Vinst per aktie2) 1,52 0,86 77% Justerad vinst per aktie1,2) 1,58 0,90 76% Operativt kassaflöde $122 $-46 n/a Avkastning på sysselsatt kapital3) 19,7% 13,0% 6,7 Justerad avkastning på sysselsatt kapital1,3) 20,2% 13,4% 6,8 1) Exklusive effekter från kapacitetsanpassningar och kartellrelaterade ärenden. 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 & koncernchef Vi levererade en rekordförsäljning under det första kvartalet och överträffade den globala fordonsproduktionen med sex procentenheter. Vi växte snabbare än fordonsproduktionen i alla regioner, inklusive i Kina, trots en negativ fordonsproduktionsmix där inhemska kinesiska fordonstillverkare växte med 17% och globala tillverkare minskade med 5%. Det en stark utveckling för kassaflöde, kassakonvertering och avkastning på sysselsatt kapital. Jag är särskilt nöjd med vår skuldkvot på 1.3x, som minskade avsevärt jämfört med för ett år sedan, trots att vi har återfört 700 MUSD till aktieägarna och investerat i geografiskt strukturoptimering och tillväxt. För att stötta förväntad tillväxt investerar vi för närvarande i ökad kapacitet i Vietnam, Kina och Indien. Vi står inför inflationstryck även detta år och vi fortsätter att förvänta oss kompensation för det som överstiger vad vi kan kompensera själva genom normala produktivitetsåtgärder. Diskussionerna med våra kunder fortskrider enligt plan. Som vi tidigare har kommunicerat förväntar vi oss att säsongsvariationerna från tidigare år sannolikt kommer att fortsätta under 2024, med en gradvis förbättring under året, vilket leder till en justerad rörelsemarginal* för helåret på cirka 10,5%. Viktiga drivkrafter för marginalutvecklingen för helåret är organisk tillväxt, våra strukturella och strategiska kostnadsbesparingsinitiativ och en lägre avropsvolatilitet. Den utveckling vi förväntar oss under 2024 bör skapa en solid bas för en fortsatt hög aktieägaravkastning och vårt mål om cirka 12% justerad rörelsemarginal*. är glädjande att vår försäljning i Indien växte organiskt med 27%. Försäljningen i Indien är nu större än i Sydkorea och står för mer än 4% av vår globala försäljning. Vi levererade resultat i linje med vad vi tidigare kommunicerat, trots att fordonsproduktionen var 1 procentenhet lägre än vad som förväntades tre månader tidigare och vi är på god väg att leverera på våra helårsutsikter. 2024 ser vi ett rekordstort antal produktlanseringar, trots att en del fordonstillverkare förändrar vissa av sina planerade lanseringar, främst för elbils-plattformar. Lönsamheten fortsatte att förbättras betydligt, främst drivet av volymtillväxt och kostnadsminskningar. Omstrukturerings- aktiviteterna ger resultat och antalet tjänstemän har minskat med cirka 1 000, eller med mer än 5%, det senaste året. Vårt fortsatta fokus på optimering av balansräkningen bidrar till ===== SIDA 3 ===== Kvartalsrapport januari - mars 2024 2 Full year 2024 guidance Our 2024 guidance is mainly based on our customer call-offs, a full year 2024 global LVP decline of around 1%, the achievement of our targeted cost compensation effects, and a sustained reduction in customer call -off volatility. Full Year Indication Full Year Indication Organic sales growth Around 5% Tax rate2) Around 28% FX impact on net sales Around 0% Operating cash flow3) Around $1.2 billion Adjusted operating margin1) Around 10.5% Capex, net, of sales Around 5.5% 1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual tax item s. 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 The earnings conference call will be held at 2:00 p.m. CET today, April 26, 2024. Information regarding how to participate is available on www.autoliv.com. The presentation slides for the conference call will be available on our website shor tly after the publication of this financial report. ===== SIDA 4 ===== Kvartalsrapport januari - mars 2024 3 Business and market condition update Supply Chain In the first quarter, global light vehicle production declined year-over-year by around 1% (according to S&P Global April 2024). Call-off volatility was lower compared to a year earlier, as supply chains are less strained compared to a year ago. However, volatility did not improve compared to the fourth quarter 2023, and is still higher than pre -pandemic levels, and low customer demand visibility and changes to customer call-offs with short notice still had a negative impact on our production efficiency and profitability in the quarter. We expect call-off volatility in 2024 on average to be lower than it was in 2023 but remain higher than the pre-pandemic level. Inflation In Q1 2024, cost pressure from labor and other items had a negative impact on our prof itability. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes had a negligible impact on our profitability in Q1 2024. We expect the effects of raw material price changes in 2024 to be negligible for the full year. We expect continued cost pressure from inflation relating mainly to labor, especially in Europe and the Americas. We continue to execute on productivity and cost reduction activities to offset these cost pressures, and will continue to seek inflation compensation from our customers. This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January and April 2024. A ll rights reserved. ===== SIDA 5 ===== Kvartalsrapport januari - mars 2024 4 Key Performance Trends Net Sales Development by region Operating and adjusted operating income and margins Capex and D&A 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*: Operating income adjusted for capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Capacity alignments include non-recurring costs related to our structural efficiency and business cycle management programs. Cash conversion*: Free cash flow defined as operating cash flow less capital expenditure, net. ===== SIDA 6 ===== Kvartalsrapport januari - mars 2024 5 Consolidated sales development First quarter 2024 Consolidated sales First quarter Reported change Currency Organic (Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change* Airbags, Steering Wheels and Other2) $1,781 $1,673 6.5% (0.5)% 7.0% Seatbelt Products and Other2) 834 820 1.7% (0.5)% 2.2% Total $2,615 $2,493 4.9% (0.5)% 5.4% Americas $893 $831 7.5% 2.9% 4.6% Europe 770 725 6.1% 2.4% 3.7% China 460 453 1.7% (4.8)% 6.5% Asia excl. China 491 483 1.7% (6.6)% 8.2% Total $2,615 $2,493 4.9% (0.5)% 5.4% 1) Effects from currency translations. 2) Including Corporate sales. Sales by product – Airbags, Steering Wheels and Other Sales for all major product categories increased organically* in the quarter. The largest contributor to the increase was steering wheels, followed by inflatable curtains, side airbags, and driver airbags. Sales by product - Seatbelt Products and Other Sales for Seatbelt Products and Other increased organically* in the Americas, Asia excluding China and Europe, while it declined in China. Sales by region Our global organic sales* increased by 5.4% compared to the global LVP decrease of 0.9% (according to S&P Global, April 2024). The 6.3pp outperformance was mainly driven by new product launches and higher prices carried over from last year. Our organic sales growth outperformed LVP growth by 15pp in Asia excluding China, by 6.1pp in Europe, by 4.9pp in the Americas, and by 1.4pp in China. LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. Domestic OEM LVP in China grew by 17% while LVP declined by 5% for global OEMs. Q1 2024 organic growth* Americas Europe China Asia excl. China Global Autoliv 4.6% 3.7% 6.5% 8.2% 5.4% Main growth drivers Toyota, Mercedes, Ford Mercedes, BMW, Toyota Volvo, Chery, BMW Hyundai, Tata, Honda Mercedes, Toyota, Hyundai Main decline drivers Stellantis, GM Ford, Renault, Volvo Honda Nissan, Renault, Mazda Stellantis, Nissan Light vehicle production development Change compared to the same period last year according to S&P Global Q1 2024 Americas Europe China Asia excl. China Global LVP (Apr 2024) (0.3)% (2.4)% 5.1 % (6.9)% (0.9)% LVP (Jan 2024) 1.0% (4.0)% 7.1% (4.7)% 0.2% ===== SIDA 7 ===== Kvartalsrapport januari - mars 2024 6 Key launches in the first quarter 2024 BMW 5-Series/i5 Touring Subaru Forester Dacia Duster Hyundai Santa Fe VW ID.7 Tourer Tata Punch.ev Renault Scenic e-Tech Tank 700 Li Auto Mega 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 2024 7 Financial development Selected Income Statement items Condensed income statement First quarter (Dollars in millions, except per share data) 2024 2023 Change Net sales $2,615 $2,493 4.9% Cost of sales (2,172) (2,113) 2.8% Gross profit 443 379 17% S,G&A (132) (132) (0.0)% R,D&E, net (113) (116) (3.1)% Other income (expense), net (4) (4) 11% Operating income 194 127 52% Adjusted operating income1) 199 131 51% Financial and non-operating items, net (20) (18) 10% Income before taxes 174 109 60% Income taxes (47) (34) 36% Net income $127 $74 70% Earnings per share2) $1.52 $0.86 77% Adjusted earnings per share1,2) $1.58 $0.90 76% Gross margin 16.9% 15.2% 1.7pp S,G&A, in relation to sales (5.0)% (5.3)% 0.2pp R,D&E, net in relation to sales (4.3)% (4.7)% 0.4pp Operating margin 7.4% 5.1% 2.3pp Adjusted operating margin1) 7.6% 5.3% 2.3pp Tax Rate 27.0% 31.6% (4.6)pp Other data No. of shares at period-end in millions3) 81.4 85.8 (5.2)% Weighted average no. of shares in millions4) 82.3 86.1 (4.4)% Weighted average no. of shares in millions, diluted4) 83.0 86.3 (3.8)% 1) Non-U.S. GAAP measure, excluding effects from capacity alignments 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 2024 development Gross profit increased by $63 million, and the gross margin increased by 1.7pp compared to the same quarter 2023. The gross profit increase was primarily driven by volume growth, price increases and lower costs for production overhead and premium freight. This was partly offset by wage inflation and adverse FX effects. S,G&A costs were unchanged compared to the prior year, positively impacted by lower costs for professional service which was offset by higher costs for personnel, as wage inflation outpaced the headcount reductions. S,G&A costs in relation to sales decreased from 5.3% to 5.0%. R,D&E, net costs decreased by $4 million compared to the prior year, mainly due to higher engineering income. R,D&E, net, in relation to sales decreased from 4.7% to 4.3%. Other income (expense), net was unchanged at $4 million compared to the same period last year. Operating income increased by $67 million compared to the same period in 2023, mainly due to the increase in gross profit. Adjusted operating income* increased by $68 million compared to the prior year, mainly due to higher gross profit. Financial and non-operating items, net, was negative $20 million compared to negative $18 million a year earlier. The difference was mainly due to increased interest expense as the result of higher debt and higher interest rates. Income before taxes increased by $65 million compared to the prior year, mainly due to the increase in operating income. Tax rate was 27.0% compared to 31.6% in the same period last year. Discrete tax items, net, decreased the tax rate this quarter by 2.5pp. Discrete tax items, net, increased the tax rate by 0.8pp in the same period last year. Earnings per share, diluted increased by $0.66 compared to a year earlier. The main drivers were $0.52 from higher operating income and $0.10 from lower income taxes. ===== SIDA 9 ===== Kvartalsrapport januari - mars 2024 8 Selected Balance Sheet and Cash Flow items Selected Balance Sheet items First quarter (Dollars in millions) 2024 2023 Change Trade working capital1) $1,336 $1,409 (5.2)% Trade working capital in relation to sales2) 12.8% 14.1% (1.4)pp - Receivables outstanding in relation to sales3) 21.0% 21.1% (0.2)pp - Inventory outstanding in relation to sales4) 9.5% 9.9% (0.4)pp - Payables outstanding in relation to sales5) 17.7% 16.9% 0.9pp Cash & cash equivalents 569 713 (20)% Gross Debt6) 2,140 2,179 (1.8)% Net Debt7) 1,562 1,477 5.7% Capital employed8) 4,003 4,118 (2.8)% Return on capital employed9) 19.7% 13.0% 6.7pp Total equity $2,442 $2,641 (7.5)% Return on total equity10) 20.2% 11.3% 8.9pp Leverage ratio11) 1.3 1.6 (0.4)pp 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 relat ive to annualized 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 adjusted for p ension liabilities in relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table. Selected Cash Flow items First quarter (Dollars in millions) 2024 2023 Change Net income $127 $74 70% Changes in operating working capital (114) (202) (43)% Depreciation and amortization 96 92 4.1% Other, net 14 (10) n/a Operating cash flow 122 (46) n/a Capital expenditure, net (140) (143) (2.2)% Free cash flow1) $(18) $(189) (90)% Cash conversion2) n/a n/a n/a Shareholder returns - Dividends paid (56) (57) (1.9)% - Share repurchases (160) (42) 286% Cash dividend paid per share $(0.68) $(0.66) 3.5% Capital expenditures, net in relation to sales 5.4% 5.7% (0.4)pp 1) Operating cash flow less Capital expenditure, 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 2024 development Changes in operating working capital was $114 million negative in the first quarter, compared to $202 million negative in the same period the prior year. The $88 million improvement was mainly driven by smaller negative effects on cash flow from receivables and other assets, partly offset by increased negative effects from payables and accrued expenses. Other, net was $14 million positive in the first quarter, mainly related to deferred income taxes and other. The $10 million negative in Other, net in the same period the prior year mainly related to deferred income taxes. Operating cash flow increased by $168 million to $122 million compared to the same period last year, mainly due to lower increase in working capital and higher net income. Capital expenditure, net decreased by $3 million compared to the same period the previous year. Capital expenditure, net in relation to sales was 5.4% versus 5.7% a year earlier. Free cash flow* improved by $171 million compared to the same period the prior year, mainly due to the improved operating cash flow. Trade working capital* decreased by $73 million compared to the same period last year, where the main drivers were $172 million in higher accounts payable partly offset by $88 million in higher accounts receivables and $12 million in higher inventories. In relation to sales, trade working capital decreased from 14.1% to 12.8%. Leverage ratio* As of March 31, 2024, the Company had a leverage ratio of 1.3x compared to 1.6x as of March 31, 2023, as the 12 months trailing adjusted EBITDA* increased more than the net debt* increased. Liquidity position As of March 31, 2024, our cash balance was around $0.6 billion, and including committed, unused loan facilities, our liquidity position was around $1.7 billion. Total equity as of March 31, 2024, decreased by $199 million compared to March 31, 2023. This was mainly due to $225 million in dividend payments and stock repurchases including taxes of $476 million, as well as $63 million in negative currency translation effects, partly offset by $541 million from net income. ===== SIDA 10 ===== Kvartalsrapport januari - mars 2024 9 Headcount Mar 31 Dec 31 Mar 31 2024 2023 2023 Headcount 70,100 70,300 71,300 Whereof: Direct headcount in manufacturing 52,500 52,400 52,700 Indirect headcount 17,600 17,800 18,600 Temporary personnel 10% 11% 11% As of March 31, 2024, total headcount (Full Time Equivalent) decreased by 1,200 compared to a year earlier. The indirect workforce decreased by 1,000, or by 5.4%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by 0.4%, despite sales growing organically by 5% compared to a year earlier. Compared to December 31, 2023, total headcount (FTE) decreased by 0.2%. Indirect headcount decreased by 200, or by 1.1% while direct headcount increased by 0.1%. ===== SIDA 11 ===== Kvartalsrapport januari - mars 2024 10 Other Items • On February 1, 2024, Autoliv announced it had priced a 5.5-year bond offering of €500 million in the Eurobond market. The notes were issued as green bonds on February 7, 2024 at a coupon of 3.625%. • On March 6, 2024, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019. • In Q1 2024, Autoliv repurchased and retired 1.37 million shares of common stock at an average price of $116.78 per share under the Autoliv 2022-2024 stock purchase program. • Following Autoliv's first partnership in 2021 with SSAB on fossil-free steel, we now introduce two additional collaborations for carbon-reduced steel with Arvedi and Thyssenkrupp. The aim is to reduce greenhouse gas emissions in our products by utilizing low-emission steel and increase recycled content in the material. Next Report Autoliv intends to publish the quarterly earnings report for the second quarter of 2024 on Friday, July 19, 2024. 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 Etemad 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 26 april 2024 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 2024. 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 2024 11 “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; 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 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; 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 2024 12 Consolidated Statements of Income First quarter Latest 12 Full Year (Dollars in millions, except per share data, unaudited) 2024 2023 months 2023 Airbags, Steering Wheels and Other1) $1,781 $1,673 $7,163 $7,055 Seatbelt products and Other1) 834 820 3,434 3,420 Total net sales 2,615 2,493 10,597 10,475 Cost of sales (2,172) (2,113) (8,712) (8,654) Gross profit 443 379 1,885 1,822 Selling, general & administrative expenses (132) (132) (500) (500) Research, development & engineering expenses, net (113) (116) (421) (425) Other income (expense), net (4) (4) (207) (207) Operating income 194 127 756 690 Income from equity method investments 2 2 5 5 Interest income 5 2 16 13 Interest expense (26) (19) (99) (93) Other non-operating items, net (1) (2) (1) (3) Income before income taxes 174 109 677 612 Income taxes (47) (34) (136) (123) Net income 127 74 541 489 Less: Net income attributable to non-controlling interest 0 0 2 1 Net income attributable to controlling interest $126 $74 $540 $488 Earnings per share2) $1.52 $0.86 $6.40 $5.72 1) Including Corporate sales. 2) Assuming dilution when applicable and net of treasury shares. ===== SIDA 14 ===== Kvartalsrapport januari - mars 2024 13 Consolidated Balance Sheets Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Dollars in millions, unaudited) 2024 2023 2023 2023 2023 Assets Cash & cash equivalents $569 $498 $475 $475 $713 Receivables, net 2,194 2,198 2,179 2,189 2,106 Inventories, net 997 1,012 982 947 986 Prepaid expenses 180 173 180 166 166 Other current assets 71 93 63 120 90 Total current assets 4,011 3,974 3,879 3,898 4,061 Property, plant & equipment, net 2,192 2,192 2,067 2,047 2,045 Operating leases right-of-use assets 177 176 162 149 169 Goodwill 1,381 1,385 1,378 1,381 1,383 Investments and other non-current assets 564 606 500 484 528 Total assets 8,324 8,332 7,987 7,959 8,185 Liabilities and equity Short-term debt 310 538 590 481 577 Accounts payable 1,855 1,978 1,858 1,844 1,683 Accrued expenses 1,129 1,135 1,093 1,122 969 Operating lease liabilities - current 41 39 37 35 41 Other current liabilities 323 345 274 274 258 Total current liabilities 3,658 4,035 3,851 3,756 3,529 Long-term debt 1,830 1,324 1,277 1,290 1,601 Pension liability 149 159 152 152 159 Operating lease liabilities - non-current 134 135 125 113 127 Other non-current liabilities 111 109 96 91 128 Total non-current liabilities 2,224 1,728 1,649 1,645 2,015 Total parent shareholders’ equity 2,428 2,557 2,473 2,545 2,627 Non-controlling interest 13 13 13 13 14 Total equity 2,442 2,570 2,486 2,557 2,641 Total liabilities and equity $8,324 $8,332 $7,987 $7,959 $8,185 ===== SIDA 15 ===== Kvartalsrapport januari - mars 2024 14 Consolidated Statements of Cash Flow First quarter Latest 12 Full Year (Dollars in millions, unaudited) 2024 2023 months 2023 Net income $127 $74 $541 $489 Depreciation and amortization 96 92 381 378 Other, net 14 (10) (96) (119) Changes in operating working capital, net (114) (202) 323 235 Net cash provided by (used in) operating activities 122 (46) 1,150 982 Expenditures for property, plant and equipment (140) (144) (569) (572) Proceeds from sale of property, plant and equipment 0 0 4 4 Net cash used in investing activities (140) (143) (565) (569) Free cash flow1) (18) (189) 584 414 (Decrease) increase in short term debt (227) (135) (31) 61 Decrease in long-term debt - - (533) (533) Increase in long-term debt 534 533 561 559 Dividends paid (56) (57) (224) (225) Share repurchases (160) (42) (471) (352) Common stock options exercised 0 0 1 1 Dividend paid to non-controlling interests - - (1) (1) Net cash provided by (used in) financing activities 92 300 (698) (490) Effect of exchange rate changes on cash (3) 7 (30) (20) Increase (decrease) in cash and cash equivalents 71 119 (144) (96) Cash and cash equivalents at period-start 498 594 713 594 Cash and cash equivalents at period-end $569 $713 $569 $498 1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See r econciliation table. ===== SIDA 16 ===== Kvartalsrapport januari - mars 2024 15 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 non -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 operationally 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) 2024 2023 2023 2023 2023 Receivables, net $2,194 $2,198 $2,179 $2,189 $2,106 Inventories, net 997 1,012 982 947 986 Accounts payable (1,855) (1,978) (1,858) (1,844) (1,683) Trade Working capital $1,336 $1,232 $1,303 $1,292 $1,409 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 adjustin g 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) 2024 2023 2023 2023 2023 Short-term debt $310 $538 $590 $481 $577 Long-term debt 1,830 1,324 1,277 1,290 1,601 Total debt 2,140 1,862 1,867 1,771 2,179 Cash & cash equivalents (569) (498) (475) (475) (713) Debt issuance cost/Debt-related derivatives, net (9) 3 (17) 4 12 Net debt $1,562 $1,367 $1,375 $1,299 $1,477 Dec 31 Dec 31 Dec 31 Dec 31 (Dollars in millions) 2022 2021 2020 2019 Short-term debt $711 $346 $302 $368 Long-term debt 1,054 1,662 2,110 1,726 Total debt 1,766 2,008 2,411 2,094 Cash & cash equivalents (594) (969) (1,178) (445) Debt issuance cost/Debt-related derivatives, net 12 13 (19) 0 Net debt $1,184 $1,052 $1,214 $1,650 ===== SIDA 17 ===== Kvartalsrapport januari - mars 2024 16 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. 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) 2024 2023 2023 Net debt1) $1,562 $1,367 $1,477 Pension liabilities 149 159 159 Debt per the Policy $1,711 $1,527 $1,636 Net income2) $541 $489 $416 Income taxes2) 136 123 176 Interest expense, net2, 3) 83 80 60 Other non-operating items, net2) 1 3 4 Income from equity method investments2) (5) (5) (4) Depreciation and amortization of intangibles2) 381 378 359 Adjustments2), 4) 231 230 10 EBITDA per the Policy (Adjusted EBITDA) $1,369 $1,297 $1,021 Leverage ratio 1.3 1.2 1.6 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. 4) Capacity alignments, antitrust related matters and for FY2023 the Andrews litigation settlement . See Items Affecting Comparability below. ===== SIDA 18 ===== Kvartalsrapport januari - mars 2024 17 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 ge neration 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 below. 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 efficiently the Company utilizes its resources. For details on cash conversion, see the reconciliation table below. First quarter Latest 12 Full Year (Dollars in millions) 2024 2023 months 2023 Net income $127 $74 $541 $489 Changes in operating working capital (114) (202) 323 235 Depreciation and amortization 96 92 381 378 Other, net 14 (10) (96) (119) Operating cash flow 122 (46) 1,150 982 Capital expenditure, net (140) (143) (565) (569) Free cash flow1) $(18) $(189) $584 $414 Cash conversion2) n/a n/a 108% 85% 1) Operating cash flow less Capital expenditure, net. 2) Free cash flow relative to Net income. Full year Full year Full year Full year (Dollars in millions) 2022 2021 2020 2019 Net income $425 $437 $188 $463 Changes in operating assets and liabilities 58 (63) 277 47 Depreciation and amortization 363 394 371 351 Gain on divestiture of property (80) - - - Other, net1) (54) (15) 13 (220) Operating cash flow 713 754 849 641 EC antitrust payment - - - (203) Operating cash flow excl antitrust 713 754 849 844 Capital expenditure, net (485) (454) (340) (476) Free cash flow2) $228 $300 $509 $165 Free cash flow excl antitrust payment3) $228 $300 $509 $368 Cash conversion4) 54% 69% 270% 36% Cash conversion excl antitrust5) 54% 69% 270% 79% 1) Including EC antitrust payment 2019. 2) Operating cash flow less Capital expenditure, net. 3) For 2019, Operating cash flow excluding EC antitrust payment less Capital expenditures, net. 4) Free cash flow relative to Net income. 5) For 2019, Free cash flow excluding EC antitrust payment relat ive to Net income. ===== SIDA 19 ===== Kvartalsrapport januari - mars 2024 18 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 an d 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 m ethod 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. With respect to the Andrews litigation settlement, the Company has treated this specific settlem ent as a non-recurring charge because of the unique nature of the lawsuit, including the facts and legal issues involved. Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non -U.S. GAAP measure. First quarter 2024 First quarter 2023 (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 $194 5 $199 $127 4 $131 Operating margin 7.4% 0.2% 7.6% 5.1% 0.2% 5.3% Income before taxes 174 5 179 109 4 113 Net income attributable to controlling interest 126 4 131 74 3 77 Return on capital employed2) 19.7% 0.5% 20.2% 13.0% 0.4% 13.4% Return on total equity3) 20.2% 0.7% 20.9% 11.3% 0.5% 11.8% Earnings per share4) $1.52 0.05 $1.58 $0.86 0.03 $0.90 1) Effects from capacity alignments and antitrust related matters. 2) Annualized operating income and income from equity meth od investments, relative to average capital employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares. ===== SIDA 20 ===== Kvartalsrapport januari - mars 2024 19 Latest 12 months Full year 2023 Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Operating income $756 $231 $987 $690 230 $920 Operating margin 7.1% 2.2% 9.3% 6.6% 2.2% 8.8% 1) Costs for capacity alignments, antitrust related matters and the Andrews litigation settlement. Full year 2022 Full year 2021 Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Operating income $659 (61) $598 $675 8 $683 Operating margin 7.5% (0.7)% 6.8% 8.2% 0.1% 8.3% 1) Costs for capacity alignment and antitrust related matters. Full year 2020 Full year 2019 (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 $382 99 $482 $726 49 $774 Operating margin, % 5.1% 1.4% 6.5% 8.5% 0.6% 9.1% 1) Costs for capacity alignments and antitrust related matters . Items included in non-U.S. GAAP adjustments First quarter 2024 First quarter 2023 Adjustment Million Adjustment Per share Adjustment Million Adjustment Per share Capacity alignments $2 $0.03 $3 $0.04 Antitrust related matters 3 0.03 1 0.01 Total adjustments to operating income 5 0.06 4 0.05 Tax on non-U.S. GAAP adjustments1) (1) (0.01) (1) (0.01) Total adjustments to net income $4 $0.05 $3 $0.03 Average number of shares outstanding - diluted2) 84.4 86.9 Annualized adjustment on return on capital employed $20 $17 Adjustment on return on capital employed 0.5% 0.4% Annualized adjustment on return on total equity $18 $12 Adjustment on return on total equity 0.7% 0.5% 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 21 ===== Kvartalsrapport januari - mars 2024 20 (Dollars in millions, except per share data, unaudited) 2023 2022 2021 2020 2019 Sales and Income Net sales $10,475 $8,842 $8,230 $7,447 $8,548 Airbag sales1) 7,055 5,807 5,380 4,824 5,676 Seatbelt sales 3,420 3,035 2,850 2,623 2,871 Operating income 690 659 675 382 726 Net income attributable to controlling interest 488 423 435 187 462 Earnings per share – basic 5.74 4.86 4.97 2.14 5.29 Earnings per share – assuming dilution2) 5.72 4.85 4.96 2.14 5.29 Gross margin3) 17.4% 15.8% 18.4% 16.7% 18.5% S,G&A in relation to sales (4.8)% (4.9)% (5.3)% (5.2)% (4.7)% R,D&E net in relation to sales (4.1)% (4.4)% (4.7)% (5.0)% (4.7)% Operating margin4) 6.6% 7.5% 8.2% 5.1% 8.5% Adjusted operating margin5,6) 8.8% 6.8% 8.3% 6.5% 9.1% Balance Sheet Trade working capital7) 1,232 1,183 1,332 1,366 1,417 Trade working capital in relation to sales8) 11.2% 12.7% 15.7% 13.6% 16.2% Receivables outstanding in relation to sales9) 20.0% 20.4% 20.0% 18.1% 18.6% Inventory outstanding in relation to sales10) 9.2% 10.4% 9.2% 7.9% 8.5% Payables outstanding in relation to sales11) 18.0% 18.1% 13.5% 12.5% 10.8% Total equity 2,570 2,626 2,648 2,423 2,122 Total parent shareholders’ equity per share 30.93 30.30 30.10 27.56 24.19 Current assets excluding cash 3,475 3,119 2,705 3,091 2,557 Property, plant and equipment, net 2,192 1,960 1,855 1,869 1,816 Intangible assets (primarily goodwill) 1,385 1,382 1,395 1,412 1,410 Capital employed 3,937 3,810 3,700 3,637 3,772 Net debt6) 1,367 1,184 1,052 1,214 1,650 Total assets 8,332 7,717 7,537 8,157 6,771 Long-term debt 1,324 1,054 1,662 2,110 1,726 Return on capital employed12) 17.7% 17.5% 18.3% 10.0% 20.0% Return on total equity13) 19.0% 16.3% 17.1% 9.0% 23.0% Total equity ratio 31% 34% 35% 30% 31% Cash flow and other data Operating Cash flow 982 713 754 849 641 Depreciation and amortization 378 363 394 371 351 Capital expenditures, net 569 485 454 340 476 Capital expenditures, net in relation to sales 5.4% 5.5% 5.5% 4.6% 5.6% Free Cash flow6,14) 414 228 300 509 165 Cash conversion6,15) 85% 54% 69% 270% 36% Direct shareholder return16) 577 339 165 54 217 Cash dividends paid per share 2.66 2.58 1.88 0.62 2.48 Number of shares outstanding (millions)17) 82.6 86.2 87.5 87.4 87.2 Number of employees, December 31 62,900 61,700 55,900 61,000 58,900 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 effects from capacity alignments, antitrust related matters and Andrews litigation settlement. 6) Non -US GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstan ding 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 investme nts, relative to average capital employed. 13) Income relative to average total equity. 14) Operating cash flow less Capital e xpenditures, net. 15) Free cash flow relative to Net income. 16) Dividends paid and Shares repurchased. 17) At year end, excluding dilution and net of treasury shares.