FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2024
===== 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.
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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.
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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.
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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%
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Kvartalsrapport januari - mars 2024
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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.
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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%.
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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 =====
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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.
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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 =====
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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
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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 =====
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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.