===== SIDA 1 ===== Kvartalsrapport april - juni 2024 Stockholm, Sverige, 19 juli, 2024 (NYSE: ALV och SSE: ALIV.sdb) ===== SIDA 2 ===== Kvartalsrapport april - juni 2024 1 Kv2 2024: Försäljningsmotvind pga lägre fordonsproduktion Finansiell sammanfattning Kv2 $2 605 miljoner försäljning 1,1% försäljningsminskning 0,7% organisk försäljningsökning* 7,9% rörelsemarginal 8,5% justerad rörelsemarginal* $1,71 vinst/aktie, 178% ökning $1,87 justerad vinst/aktie*, 3% minskning Utsikter för helåret 2024 Cirka 2% organisk försäljningsökning Cirka 1% negativ valutaeffekt på försäljningen Cirka 9,5-10,0% justerad rörelsemarginal Cirka $1,1 miljard operativt kassaflöde Alla förändringstal i denna rapport jämför med motsvarande period året innan, om inte annat anges. Viktiga händelser i verksamheten under det andra kvartalet 2024 Försäljningen under andra kvartalet ökade organiskt* med 0,7 %, vilket var 1,4 procentenheter bättre än den globala fordons- produktionens minskning med 0.7% (S&P Global juli 2024). Vi överpresterade i Asien exkl. Kina och i Europa, främst pga produkt- lanseringar och prissättning medan vi underpresterade i Amerika och i Kina, drivet av lägre produktion hos vissa nyckelkunder, pga svag försäljning och lagerminskningar. I Kina var fordonsmixen negativ då flera modeller med begränsat Autoliv-innehåll växte starkt. Lönsamheten förbättrades trots att försäljningen minskade något. Försäljningen var lägre än väntat, vilket påverkade kvartalets lönsamhet med en operativ hävstång i den övre delen av vårt normala intervall på 20-30 procent. Resultatet förbättrades främst tack vare kostnadsminskningar och högre priser. Antal tjänstemän fortsatte att minska. Rörelseresultatet uppgick till 206 MUSD och rörelsemarginalen till 7,9 procent. Det justerade rörelseresultatet* förbättrades till 221 MUSD och den justerade rörelsemarginalen* ökade från 8,0% till 8,5%. Avkastning på sysselsatt kapital uppgick till 21,0 procent och justerad avkastning på sysselsatt kapital* uppgick till 22,5 procent. Det operativa kassaflödet var starkt på 340 MUSD, om än något lägre än förra året pga positiva timingeffekter i kvartal 2 förra året. Det fria kassaflödet* på 194 MUSD var därmed också något lägre jämfört med 2023. Skuldsättningsgraden* förbättrades till 1,2x. I kvartalet betalades en utdelning på 0,68 USD per aktie och 1,31 miljoner aktier återköptes och makulerades. *För ej U.S. GAAP, se jämförelsetabell. Nyckeltal MUSD, förutom aktiedata Kv2 2024 Kv2 2023 Förändring 6M 2024 6M 2023 Förändring Försäljning $2 605 $2 635 -1,1% $5 220 $5 127 1,8% Rörelseresultat 206 94 120% 400 221 81% Justerat rörelseresultat1) 221 212 4,4% 420 343 22% Rörelsemarginal 7,9% 3,6% 4,4 7,7% 4,3% 3,4 Justerad rörelsemarginal1) 8,5% 8,0% 0,5 8,0% 6,7% 1,4 Vinst per aktie2) 1,71 0,61 178% 3,23 1,47 119% Justerad vinst per aktie1,2) 1,87 1,93 -2,9% 3,45 2,82 22% Operativt kassaflöde 340 379 -10% 462 334 39% Avkastning på sysselsatt kapital3) 21,0% 9,5% 11,5 20,4% 11,4% 9,1 Justerad avkastning på sysselsatt kapital1,3) 22,5% 21,0% 1,5 21,4% 17,4% 4,0 1) Exklusive effekter från kapacitetsanpassningar, kartellrelaterade ärenden och för helår 2023 Andrewsförlikningen. 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 Under det andra kvartalet fortsatte lönsamheten att förbättras trots en liten försäljningsminskning. Förbättringen drevs av bättre prissättning och framgångsrikt genomförande av kostnadsminskningar, där antalet tjänstemän har minskat med 1 100 sedan programmets start. Vi har avtalat om kompensation för kostnads- Vi fortsatte att prestera betydligt bättre än fordonsproduktionen i Asien exklusive Kina och i Europa, drivet av produktlanseringar och bättre prissättning. I Amerika underpresterade vi något, då vissa nyckelkunder minskade produktionen. Vi fortsätter att expandera vår verksamhet med kinesiska OEMs, vilket positionerar oss väl för att dra nytta av den nya strukturen på den kinesiska marknaden. Inhemska kinesiska OEMs stod för 38% av vår försäljning i Kina under andra kvartalet. Vi ökade försäljningen till denna grupp med 39 % under andra kvartalet jämfört med för ett år sedan och med 25 % jämfört med föregående kvartal. Marknaden utvecklades dock ogynnsamt pga att försäljningen för vissa märken och modeller med lågt Autoliv- innehåll växte starkt, samtidigt som produktionen hos några av våra viktigaste globala kunder minskade betydligt, vilket ledde till en underprestation på 7 procentenheter i Kina. Vi är fortsatt fullt fokuserade på att leverera på målet om cirka 12% justerad rörelsemarginal, trots att vi justerar vår prognos för 2024 något, vilket återspeglar förändringar i fordonsproduktionen och en ogynnsam kundmix. Vi förväntar oss fortsatt en betydande ökning av lönsamheten under andra halvåret med en justerad rörelse- marginal på cirka 11-12% jämfört med första halvårets 8,0%. Den positiva utvecklingen av vårt kassaflöde och balansräkning stödjer vårt fortsatta fokus på hög aktieägaravkastning. ökningar med majoriteten av kunderna och avser att stänga majoriteten av kvarvarande förhandlingar i kvartal 3. Avkastningen på sysselsatt kapital var god och kassaflödet fortsatte att vara starkt, vilket bidrog till en hög aktieägar- avkastning och en förbättring av skuldsättningsgraden till 1,2x. Vi fortsätter på rätt spår med våra strategiska och strukturella initiativ för att stärka vår verksamhet och struktur. Fordons- produktionen hos vissa nyckelkunder till följd av svagare försäljning och lagerjusteringar var dock lägre än väntat i kvartalet, särskilt i juni. Detta påverkade vår lönsamhet med en operativ hävstång i den övre delen av vårt normala intervall på Det är uppmuntrande att kundernas produktionsplaner för det tredje kvartalet normaliseras, vilket indikerar att svagheten i juni bör vara tillfällig. ===== SIDA 3 ===== Kvartalsrapport april - juni 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 3%, 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 2% Tax rate2) Around 28% FX impact on net sales Around 1% negative Operating cash flow3) Around $1.1 billion Adjusted operating margin1) Around 9.5-10.0% Capex, net, of sales Around 5.5% 1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual tax items. 3) Excluding unusual items. The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. Autoliv has not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and Autoliv is unable to determine the probable significance of the unavailable information. Conference call and webcast The earnings conference call will be held at 2:00 p.m. CET today, July 19, 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 shortly after the publication of this financial report. ===== SIDA 4 ===== Kvartalsrapport april - juni 2024 3 Business and market condition update Supply Chain In the second quarter, global light vehicle production declined by 0.7% year-over-year (according to S&P Global July 2024). Call-off volatility was lower compared to a year earlier, as supply chains are less strained than they were a year ago. However, volatility did not improve compared to the first quarter 2024, and is still higher than pre -pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice had a negative impact on our production efficiency and profitability in the quarter. We continue to 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 the second quarter, cost pressure from labor and other items had a negative impact on our profitability. 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 during the second quarter. We now expect raw material prices in 2024 to increase slightly 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, April and July 2 024. All rights reserved. ===== SIDA 5 ===== Kvartalsrapport april - juni 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 ------------------------------------------------------------------------------------------------------------ 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. Capex, net: Capital Expenditure, net. D&A: Depreciation and Amortization. Cash conversion*: Free cash flow defined as operating cash flow less capital expenditure, net. ===== SIDA 6 ===== Kvartalsrapport april - juni 2024 5 Consolidated sales development Second quarter 2024 Consolidated sales Second quarter Reported change Currency Organic (Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change* Airbags, Steering Wheels and Other2) $1,747 $1,757 (0.6)% (1.8)% 1.2% Seatbelt Products and Other2) 858 878 (2.2)% (1.9)% (0.3)% Total $2,605 $2,635 (1.1)% (1.9)% 0.7% Americas $893 $916 (2.6)% 0.3% (2.8)% Europe 761 751 1.4% (0.2)% 1.6% China 468 497 (5.9)% (3.1)% (2.8)% Asia excl. China 483 471 2.6% (7.4)% 10% Total $2,605 $2,635 (1.1)% (1.9)% 0.7% 1) Effects from currency translations. 2) Including Corporate sales. Sales by product – Airbags, Steering Wheels and Other Sales grew organically* by 1.2% in the quarter. The largest contributor to the increase was steering wheels, followed by center airbags, inflatable curtains, side airbags, and driver airbags, partly offset by decreases for passenger airbags and knee airbags. Sales by product - Seatbelt Products and Other Sales for Seatbelt Products and Other decreased organically* by 0.3% in the quarter. Sales declined organically in China and the Americas, while it increased in Asia excluding China with Europe being virtually unchanged. Sales by region Our global organic sales* increased by 0.7% compared to the global LVP decrease of 0.7% (according to S&P Global, July 2024). The outperformance was mainly driven by new product launches and higher prices carried over from last year, partly offset by negative customer and model mix. Our organic sales growth outperformed LVP growth by 13pp in Asia excluding China and by 7.7pp in Europe, while it underperformed by 2.3pp in the Americas, and by 7.3pp in China. LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. In addition, certain models with low Autoliv content grew very fast in the quarter. Domestic OEM LVP in China grew by 20% while LVP declined by 10% for global OEMs in the second quarter. Q2 2024 organic growth* Americas Europe China Asia excl. China Global Autoliv (2.8)% 1.6% (2.8)% 10% 0.7% Main growth drivers VW, Hyundai, Subaru Mercedes, Renault, Hyundai Geely, BMW, BYD Hyundai, Suzuki, EV OEM Geely, Mercedes, Hyundai Main decline drivers Stellantis, EV OEM, GM Stellantis, VW EV OEM, Honda, GM KG Mobility, Stellantis Stellantis, EV OEM, GM Light vehicle production development Change compared to the same period last year according to S&P Global Q2 2024 Americas Europe China Asia excl. China Global LVP (Jul 2024) (0.5)% (6.1)% 4.5 % (2.6)% (0.7)% LVP (Apr 2024) 1.3% (3.0)% 10.9% (1.4)% 2.7% ===== SIDA 7 ===== Kvartalsrapport april - juni 2024 6 Consolidated sales development First six months 2024 Consolidated sales First 6 months Reported change Currency Organic (Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change* Airbags, Steering Wheels and Other2) $3,528 $3,430 2.9% (1.2)% 4.0% Seatbelt Products and Other2) 1,692 1,698 (0.3)% (1.2)% 0.9% Total $5,220 $5,127 1.8% (1.2)% 3.0% Americas $1,786 $1,747 2.2% 1.5% 0.7% Europe 1,531 1,476 3.7% 1.1% 2.6% China 928 950 (2.3)% (3.9)% 1.6% Asia excl. China 975 954 2.1% (7.0)% 9.1% Total $5,220 $5,127 1.8% (1.2)% 3.0% 1) Effects from currency translations. 2) Including Corporate sales. Sales by product – Airbags, Steering Wheels and Other Sales grew organically* by 4.0% in the period. The largest contributor to the increase was steering wheels, followed by center airbags, inflatable curtains, side airbags, and driver airbags, partly offset by decreases for knee airbags and passenger airbags. Sales by product - Seatbelt Products and Other Sales for Seatbelt Products and Other increased organically* by 0.9% in the period. Sales increased organically in Asia excluding China, the Americas and Europe while it declined in China. Sales by region Our global organic sales* increased by 3.0% compared to the global LVP decrease of 0.3% (according to S&P Global, July 2024). The outperformance was mainly driven by new product launches and higher prices carried over from last year, partly offset by negative customer and model mix. Our organic sales growth outperformed LVP growth by 14pp in Asia excluding China, by 6.0pp in Europe and by 1.0pp in the Americas, while it underperformed by 4.0pp in China. LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. In addition, certain models with low Autoliv content grew strongly. Domestic OEM LVP in China grew by 19% while LVP declined by 7% for global OEMs in the first half year. 6M 2024 organic growth* Americas Europe China Asia excl. China Global Autoliv 0.7% 2.6% 1.6% 9.1% 3.0% Main growth drivers VW, Mercedes, Toyota Mercedes, Renault, BMW Geely, BMW, Chery Hyundai, Tata, Suzuki Mercedes, Hyundai, Geely Main decline drivers Stellantis, EV OEM, GM Stellantis, VW, Ford EV OEM, Honda, GM Nissan, Renault Stellantis, EV OEM, GM Light vehicle production development First 6 months 2024 Americas Europe China Asia excl. China Global LVP (Jul 2024) (0.3)% (3.4)% 5.6% (4.6)% (0.3)% LVP (Jan 2024) 1.0% (3.3)% 7.5% (2.5)% 1.2% ===== SIDA 8 ===== Kvartalsrapport april - juni 2024 7 Key launches in the second quarter 2024 Nissan Kicks Stelato S9 Lynk&Co Z10 Ford Explorer EV Chery Fengyun T9 Lancia Ypsilon Honda e:NS2/e:NP2 Mini Aceman/Cooper E LEVC L380 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 9 ===== Kvartalsrapport april - juni 2024 8 Financial development Selected Income Statement items Condensed income statement Second quarter First 6 months (Dollars in millions, except per share data) 2024 2023 Change 2024 2023 Change Net sales $2,605 $2,635 (1.1)% $5,220 $5,127 1.8% Cost of sales (2,130) (2,188) (2.6)% (4,303) (4,301) 0.0% Gross profit 475 447 6.2% 917 826 11% S,G&A (138) (130) 6.5% (270) (262) 3.2% R,D&E, net (116) (120) (3.4)% (229) (237) (3.3)% Other income (expense), net (14) (103) (86)% (18) (107) (83)% Operating income 206 94 120% 400 221 81% Adjusted operating income1) 221 212 4.4% 420 343 22% Financial and non-operating items, net (23) (11) 108% (43) (29) 47% Income before taxes 183 83 121% 356 191 86% Income taxes (44) (30) 49% (91) (64) 42% Net income $139 $53 162% $266 $127 108% Earnings per share2) $1.71 $0.61 178% $3.23 $1.47 119% Adjusted earnings per share1,2) $1.87 $1.93 (2.9)% $3.45 $2.82 22% Gross margin 18.2% 17.0% 1.3pp 17.6% 16.1% 1.5pp S,G&A, in relation to sales (5.3)% (4.9)% (0.4)pp (5.2)% (5.1)% (0.1)pp R,D&E, net in relation to sales (4.5)% (4.6)% 0.1pp (4.4)% (4.6)% 0.2pp Operating margin 7.9% 3.6% 4.4pp 7.7% 4.3% 3.4pp Adjusted operating margin1) 8.5% 8.0% 0.5pp 8.0% 6.7% 1.4pp Tax Rate 24.1% 35.8% (11.7)pp 25.5% 33.4% (7.9)pp Other data No. of shares at period-end in millions3) 80.1 85.4 (6.2)% 80.1 85.4 (6.2)% Weighted average no. of shares in millions4) 80.9 85.6 (5.5)% 81.6 85.9 (4.9)% Weighted average no. of shares in millions, diluted4) 81.1 85.8 (5.4)% 82.1 86.0 (4.6)% 1) Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigati on settlement. 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. Second quarter 2024 development Gross profit increased by $28 million, and the gross margin increased by 1.3pp compared to the same quarter 2023. The gross profit increase was primarily driven by lower costs for labor and production overhead, as well as customer compensations and positive FX effects. This was partly offset by higher material costs. S,G&A costs increased by $8 million compared to the prior year, impacted by higher personnel and IT costs as well as higher legal costs. S,G&A costs in relation to sales increased from 4.9% to 5.3%. 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 4.6% to 4.5%. Other income (expense), net was negative $14 million mainly due to capacity alignment accruals, compared to negative $103 million in the same period last year. Q2 2023 was negatively impacted by around $109 million in accruals for capacity alignments. Operating income increased by $112 million compared to the same period in 2023, mainly due to lower capacity alignment accruals and the increase in gross profit. Adjusted operating income* increased by $9 million compared to the prior year, mainly due to higher gross profit, partly offset by higher S,G&A costs. Financial and non-operating items, net, was negative $23 million compared to negative $11 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 $100 million compared to the prior year, mainly due to the increase in operating income. Tax rate was 24.1% compared to 35.8% in the same period last year. Discrete tax items, net, decreased the tax rate this quarter by 4.9pp. Discrete tax items, net, decreased the tax rate by 4.5pp in the same period last year. Earnings per share, diluted increased by $1.09 compared to a year earlier. The main drivers were $1.21 from higher operating income and $0.10 from lower number of shares, partly offset by $0.13 from higher income taxes and $0.09 from higher financial and non-operating items, net. ===== SIDA 10 ===== Kvartalsrapport april - juni 2024 9 First six months 2024 development Gross profit increased by $91 million, and the gross margin increased by 1.5pp compared to the same period 2023. The gross profit increase was primarily driven by volume growth, customer compensations and lower costs for labor, material, production overhead and premium freight. S,G&A costs increased by $8 million compared to the prior year, mainly due to higher personnel costs and legal fees, partly offset by lower costs for professional service. S,G&A costs in relation to sales increased from 5.1% to 5.2%. R,D&E, net costs decreased by $8 million compared to the prior year, mainly due to higher engineering income. R,D&E, net, in relation to sales decreased from 4.6% to 4.4%. Other income (expense), net was negative $18 million mainly due to capacity alignment accruals, compared to negative $107 million in the same period last year, mainly due to $112 million in capacity alignment accruals. Operating income increased by $179 million compared to the same period in 2023, mainly due to the increase in gross profit and lower capacity alignment accruals. Adjusted operating income* increased by $77 million compared to the prior year, mainly due to higher gross profit and lower R,D&E, net partly offset by higher costs for S,G&A. Financial and non-operating items, net, was negative $43 million compared to negative $29 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 $165 million compared to the prior year, mainly due to the increase in operating income. Tax rate was 25.5% compared to 33.4% in the same period last year. Discrete tax items, net, decreased the tax rate this quarter by 3.7pp. Discrete tax items, net, decreased the tax rate by 1.5pp in the same period last year. Earnings per share, diluted increased by $1.75 compared to a year earlier. The main drivers were $1.71 from higher operating income and $0.15 from lower number of shares, partly offset by $0.11 from higher financial and non-operating items, net. ===== SIDA 11 ===== Kvartalsrapport april - juni 2024 10 Selected Cash Flow and Balance Sheet items Selected Cash Flow items Second quarter First 6 months (Dollars in millions) 2024 2023 Change 2024 2023 Change Net income $139 $53 162% $266 $127 108% Changes in operating working capital 128 230 (44)% 14 28 (50)% Depreciation and amortization 96 94 2.3% 192 186 3.2% Other, net (23) 2 n/a (9) (8) 13% Operating cash flow 340 379 (10)% 462 334 39% Capital expenditure, net (146) (124) 17% (286) (267) 6.9% Free cash flow1) $194 $255 (24)% $176 $66 166% Cash conversion2) 140% 481% (341)pp 66% 52% 14pp Shareholder returns - Dividends paid (55) (56) (2.6)% (111) (113) (2.2)% - Share repurchases (160) (41) 294% (320) (82) 290% Cash dividend paid per share $(0.68) $(0.66) 2.3% $(1.36) $(1.32) 3.2% Capital expenditures, net in relation to sales 5.6% 4.7% 0.9pp 5.5% 5.2% 0.3pp 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. Selected Balance Sheet items Second quarter (Dollars in millions) 2024 2023 Change Trade working capital1) $1,169 $1,292 (9.6)% Trade working capital in relation to sales2) 11.2% 12.3% (1.0)pp - Receivables outstanding in relation to sales3) 20.1% 20.8% (0.7)pp - Inventory outstanding in relation to sales4) 9.0% 9.0% (0.0)pp - Payables outstanding in relation to sales5) 17.8% 17.5% 0.3pp Cash & cash equivalents 408 475 (14)% Gross Debt6) 1,996 1,771 13% Net Debt7) 1,579 1,299 22% Capital employed8) 3,890 3,856 0.9% Return on capital employed9) 21.0% 9.5% 11.5pp Total equity $2,311 $2,557 (9.6)% Return on total equity10) 23.4% 8.2% 15.2pp Leverage ratio11) 1.2 1.3 (0.1)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 quarter ly sales. 4) Outstanding inventory relative 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 equ ity method investments, relative to average capital employed. 10) Annualized net income relative to average total equity. 11) N et debt adjusted for pension liabilities in relation to EBITDA. Non -U.S. GAAP measure. See reconciliation table. Second quarter 2024 development Changes in operating working capital was $128 million positive, compared to $230 million positive in the same period the prior year. The $102 million decrease was mainly due to the positive effects from accounts payable and accrued expenses were smaller, partly offset by more positive effects from receivables and other assets. Other, net was $23 million negative compared to $2 million positive in the same period the prior year. The difference relates mainly to deferred income taxes and other, net. Operating cash flow decreased by $39 million to $340 million compared to the same period last year, mainly due to less positive effects from operating working capital changes. Capital expenditure, net increased by $22 million compared to the same period the previous year. Capital expenditure, net in relation to sales was 5.6% versus 4.7% a year earlier. Free cash flow* was positive $194 million compared to positive $255 million in the same period the prior year. The decrease was due to the lower operating cash flow and higher capital expenditure, net. Cash conversion* defined as free cash flow* in relation to net income, was 140% in the quarter. ===== SIDA 12 ===== Kvartalsrapport april - juni 2024 11 Trade working capital* decreased by $123 million compared to the same period last year, where the main drivers were $99 million in lower accounts receivables, $14 million in higher accounts payable and $11 million in lower inventories. In relation to sales, trade working capital decreased from 12.3% to 11.2%. Liquidity position: As of June 30, 2024, our cash balance was around $0.4 billion, and including committed, unused loan facilities, our liquidity position was around $1.5 billion. Net debt* was $1,579 million as of June 30, 2024, which was $280 million higher than a year earlier. Total equity as of June 30, 2024, decreased by $246 million compared to June 30, 2023. This was mainly due to $223 million in dividend payments and stock repurchases including taxes of $597 million, as well as $76 million in negative currency translation effects, partly offset by $627 million from net income. Leverage ratio*: As of June 30, 2024, the Company had a leverage ratio of 1.2x compared to 1.3x as of June 30, 2023, both the 12 months trailing adjusted EBITDA* and the net debt* increased by around $270 million. First six months 2024 development Operating cash flow increased by $129 million compared to the same period last year, to $462 million, mainly due to higher net income. Capital expenditure, net increased by $19 million. Capital expenditure, net in relation to sales was 5.5% versus 5.2% the prior year period. Free cash flow* was positive $176 million, compared to positive $66 million in the same period last year. The improvement was due to the higher operating cash flow partly offset by higher capital expenditure, net. Cash conversion* defined as free cash flow* in relation to net income, was 66% in the period. Headcount Jun 30 Mar 31 Jun 30 2024 2024 2023 Headcount 68,700 70,100 71,200 Whereof: Direct headcount in manufacturing 51,100 52,500 52,600 Indirect headcount 17,500 17,600 18,600 Temporary personnel 9% 10% 11% As of June 30, 2024, total headcount (Full Time Equivalent) decreased by 2,500, or by 3.5%, compared to a year earlier. The indirect workforce decreased by 1,100, or by 5.9%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by 1,400, or by 2.7%. Compared to March 31, 2024, total headcount (FTE) decreased by 1,500, or by 2.1%. Indirect headcount decreased by 100, or by 0.6%, while direct headcount decreased by 1,400, or by 2.7%. ===== SIDA 13 ===== Kvartalsrapport april - juni 2024 12 Other Items • On June 4, 2024, Autoliv announced that Autoliv China and XPENG AEROHT, Asia's leading flying car innovator, signed a strategic cooperation agreement to pioneer safety solutions for future mobility. Based on a shared commitment to future mobility safety, Autoliv and XPENG AEROHT will collaborate on a range of initiatives to develop safety solutions for flying cars. • On June 18, 2024, Autoliv announced that it continues its journey to a sustainable future by introducing airbag cushions made of 100% recycled polyester that significantly reduce the greenhouse gas (GHG) footprint of airbags. • On June 24, 2024, Autoliv and the UN Road Safety Fund (UNRSF) announced the renewal of their collaboration to enhance motorcycle safety globally. The collaboration supports UN Sustainable Development Goal 3.6 which aims to reduce road traffic fatalities and injuries by 2030, and Autoliv's goal of saving 100,000 lives annually. • Staffan Olsson was promoted to the role of EVP, Operations, a role he had filled in an acting capacity, and as a member of the Executive Management Team effective June 1, 2024. • In Q2 2024, Autoliv repurchased and retired 1.31 million shares of common stock at an average price of $122.19 per share under the Autoliv 2022-2024 stock purchase program. • Autoliv has entered into an additional Revolving Credit Facility Agreement with Standard Chartered Bank that can be used for general corporate purposes. The Agreement provides for a $125 million revolving credit facility that matures in 2029 and the does not contain any financial covenants. • In addition to the credit rating from S&P, Autoliv has now added a second credit rating as Moody’s on July 17 assigned a long-term credit rating of Baa1 with stable outlook. Next Report Autoliv intends to publish the quarterly earnings report for the third quarter of 2024 on Friday, October 18, 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 19 juli 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, April and July 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 14 ===== Kvartalsrapport april - juni 2024 13 “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 15 ===== Kvartalsrapport april - juni 2024 14 Consolidated Statements of Income Second quarter First 6 months Latest 12 Full Year (Dollars in millions, except per share data, unaudited) 2024 2023 2024 2023 months 2023 Airbags, Steering Wheels and Other1) $1,747 $1,757 $3,528 $3,430 $7,153 $7,055 Seatbelt products and Other1) 858 878 1,692 1,698 3,415 3,420 Total net sales 2,605 2,635 5,220 5,127 10,568 10,475 Cost of sales (2,130) (2,188) (4,303) (4,301) (8,655) (8,654) Gross profit 475 447 917 826 1,913 1,822 Selling, general & administrative expenses (138) (130) (270) (262) (509) (500) Research, development & engineering expenses, net (116) (120) (229) (237) (417) (425) Other income (expense), net (14) (103) (18) (107) (118) (207) Operating income 206 94 400 221 869 690 Income from equity method investments 2 1 3 2 6 5 Interest income 3 6 7 8 13 13 Interest expense (28) (25) (54) (45) (102) (93) Other non-operating items, net 1 7 (0) 5 (8) (3) Income before income taxes 183 83 356 191 777 612 Income taxes (44) (30) (91) (64) (150) (123) Net income 139 53 266 127 627 489 Less: Net income attributable to non-controlling interest 0 0 1 1 2 1 Net income attributable to controlling interest $138 $53 $265 $127 $625 $488 Earnings per share2) $1.71 $0.61 $3.23 $1.47 $7.52 $5.72 1) Including Corporate sales. 2) Assuming dilution when applicable and net of treasury shares. ===== SIDA 16 ===== Kvartalsrapport april - juni 2024 15 Consolidated Balance Sheets Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 (Dollars in millions, unaudited) 2024 2024 2023 2023 2023 Assets Cash & cash equivalents $408 $569 $498 $475 $475 Receivables, net 2,090 2,194 2,198 2,179 2,189 Inventories, net 936 997 1,012 982 947 Prepaid expenses 193 180 173 180 166 Other current assets 76 71 93 63 120 Total current assets 3,703 4,011 3,974 3,879 3,898 Property, plant & equipment, net 2,197 2,192 2,192 2,067 2,047 Operating leases right-of-use assets 167 177 176 162 149 Goodwill and intangible assets, net 1,379 1,381 1,385 1,378 1,381 Investments and other non-current assets 564 564 606 500 484 Total assets 8,010 8,324 8,332 7,987 7,959 Liabilities and equity Short-term debt 455 310 538 590 481 Accounts payable 1,858 1,855 1,978 1,858 1,844 Accrued expenses 1,120 1,129 1,135 1,093 1,122 Operating lease liabilities - current 41 41 39 37 35 Other current liabilities 312 323 345 274 274 Total current liabilities 3,785 3,658 4,035 3,851 3,756 Long-term debt 1,540 1,830 1,324 1,277 1,290 Pension liability 140 149 159 152 152 Operating lease liabilities - non-current 127 134 135 125 113 Other non-current liabilities 106 111 109 96 91 Total non-current liabilities 1,913 2,224 1,728 1,649 1,645 Total parent shareholders’ equity 2,298 2,428 2,557 2,473 2,545 Non-controlling interest 13 13 13 13 13 Total equity 2,311 2,442 2,570 2,486 2,557 Total liabilities and equity $8,010 $8,324 $8,332 $7,987 $7,959 ===== SIDA 17 ===== Kvartalsrapport april - juni 2024 16 Consolidated Statements of Cash Flow Second quarter First 6 months Latest 12 Full Year (Dollars in millions, unaudited) 2024 2023 2024 2023 months 2023 Net income $139 $53 $266 $127 $627 $489 Depreciation and amortization 96 94 192 186 384 378 Other, net (23) 2 (9) (8) (120) (119) Changes in operating working capital, net 128 230 14 28 220 235 Net cash provided by operating activities 340 379 462 334 1,111 982 Expenditures for property, plant and equipment (154) (125) (294) (268) (598) (572) Proceeds from sale of property, plant and equipment 8 1 8 1 11 4 Net cash used in investing activities (146) (124) (286) (267) (587) (569) Free cash flow1) 194 255 176 66 524 414 Increase (decrease) in short term debt 160 140 (67) 5 (10) 61 Decrease in long-term debt (306) (533) (306) (533) (306) (533) Increase in long-term debt - 23 534 556 538 559 Dividends paid (55) (56) (111) (113) (223) (225) Share repurchases (160) (41) (320) (82) (590) (352) Common stock options exercised 0 0 0 0 1 1 Dividend paid to non-controlling interests (1) (1) (1) (1) (1) (1) Net cash used in financing activities (362) (468) (269) (168) (592) (490) Effect of exchange rate changes on cash 6 (24) 3 (17) 1 (20) Decrease in cash and cash equivalents (161) (238) (90) (119) (67) (96) Cash and cash equivalents at period-start 570 713 498 594 475 594 Cash and cash equivalents at period-end $408 $475 $408 $475 $408 $498 1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliation tabl e. ===== SIDA 18 ===== Kvartalsrapport april - juni 2024 17 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. Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 (Dollars in millions) 2024 2024 2023 2023 2023 Receivables, net $2,090 $2,194 $2,198 $2,179 $2,189 Inventories, net 936 997 1,012 982 947 Accounts payable (1,858) (1,855) (1,978) (1,858) (1,844) Trade Working capital $1,169 $1,336 $1,232 $1,303 $1,292 Net Debt Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore we provide this non-U.S. GAAP measure. DRDs are fair value adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest fair valu es. Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 (Dollars in millions) 2024 2024 2023 2023 2023 Short-term debt $455 $310 $538 $590 $481 Long-term debt 1,540 1,830 1,324 1,277 1,290 Total debt 1,996 2,140 1,862 1,867 1,771 Cash & cash equivalents (408) (569) (498) (475) (475) Debt issuance cost/Debt-related derivatives, net (8) (9) 3 (17) 4 Net debt $1,579 $1,562 $1,367 $1,375 $1,299 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 19 ===== Kvartalsrapport april - juni 2024 18 Leverage ratio The non-U.S. GAAP measure “net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company w ould 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 ad justed EBITDA*. The long-term target is to maintain a leverage ratio of around 1.0x within a range of 0.5x to 1.5x. Jun 30 Mar 31 Jun 30 (Dollars in millions) 2024 2024 2023 Net debt1) $1,579 $1,562 $1,299 Pension liabilities 140 149 152 Debt per the Policy $1,720 $1,711 $1,451 Net income2) $627 $541 $390 Income taxes2) 150 136 168 Interest expense, net2, 3) 89 83 67 Other non-operating items, net2) 8 1 1 Income from equity method investments2) (6) (5) (4) Depreciation and amortization of intangibles2) 384 381 363 Adjustments2), 4) 128 231 127 EBITDA per the Policy (Adjusted EBITDA) $1,380 $1,369 $1,112 Leverage ratio 1.2 1.3 1.3 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 20 ===== Kvartalsrapport april - juni 2024 19 Free Cash Flow, Net Cash Before Financing and Cash Conversion Management uses the non-U.S. GAAP measure “free cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on free cash flow, see the reconciliation table below. Management uses the non-U.S. GAAP measure “net cash before financing” to analyze and disclose the cash flow generation available for servicing external stakeholders such as shareholders and debt stakeholders. For details on net cash before financing, see the reconciliation table be low. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conver sion, see the reconciliation table below. Second quarter First 6 months Latest 12 Full Year (Dollars in millions) 2024 2023 2024 2023 months 2023 Net income $139 $53 $266 $127 $627 $489 Changes in operating working capital 128 230 14 28 220 235 Depreciation and amortization 96 94 192 186 384 378 Other, net (23) 2 (9) (8) (120) (119) Operating cash flow 340 379 $462 $334 1,111 982 Capital expenditure, net (146) (124) (286) (267) (587) (569) Free cash flow1) $194 $255 $176 $66 $524 $414 Cash conversion2) 140% 481% 66% 52% 84% 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 flo w excluding EC antitrust payment less capital expenditures, net. 4) Free cash flow relative to net income. 5) For 2019, free cash f low excluding EC antitrust payment relative to net income. ===== SIDA 21 ===== Kvartalsrapport april - juni 2024 20 Items Affecting Comparability We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items. The following table reconciles Income before income taxes, Net income attributable to controlling interest, Capital employed, which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE and Return On Total Equity (“ROE”). The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business. As used by the Company, ROCE is annualized operating income and income from equity method investments, relative to average capital employed. Adjusted ROCE is annualized operating income and income from equity method investments, relative to average capital employed as adjusted to exclude certain non-recurring items. The Company believes ROCE and adjusted ROCE are useful indicators of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers. ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management. With respect to the Andrews litigation settlement, the Company has treated this specific settlement as a non -recurring charge because of the unique nature of the lawsuit, including the facts and legal issues involved. Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non -U.S. GAAP measure. Second quarter 2024 Second 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 $206 15 $221 $94 118 $212 Operating margin 7.9% 0.6% 8.5% 3.6% 4.5% 8.0% Income before taxes 183 15 198 83 118 200 Net income attributable to controlling interest 138 14 152 53 113 165 Return on capital employed2) 21.0% 1.5% 22.5% 9.5% 11.5% 21.0% Return on total equity3) 23.4% 2.2% 25.5% 8.2% 16.8% 24.9% Earnings per share4) $1.71 0.17 $1.87 $0.61 1.31 $1.93 1) Effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 2) Annualiz ed operating income and income from equity method investments, relative to average capital employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares. First 6 months 2024 First 6 months 2023 Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Reported U.S. GAAP Adjust- ments1) Non-U.S. GAAP Operating income $400 20 $420 $221 122 $343 Operating margin 7.7% 0.4% 8.0% 4.3% 2.4% 6.7% Income before taxes 356 20 377 191 122 313 Net income attributable to controlling interest 265 18 283 127 116 243 Capital employed 3,890 18 3,908 3,856 116 3,972 Return on capital employed2) 20.4% 1.0% 21.4% 11.4% 6.0% 17.4% Return on total equity3) 21.8% 1.4% 23.2% 9.8% 8.6% 18.4% Earnings per share4) $3.23 0.22 $3.45 $1.47 1.35 $2.82 1) Effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 2) Annualized operating inc ome and income from equity method investments, relative to average capital employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares. ===== SIDA 22 ===== Kvartalsrapport april - juni 2024 21 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 $869 128 $996 $690 230 $920 Operating margin 8.2% 1.2% 9.4% 6.6% 2.2% 8.8% 1) Costs for capacity alignments, antitrust related matters and for FY 2023 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 Second quarter 2024 Second quarter 2023 Adjustment Million Adjustment Per share Adjustment Million Adjustment Per share Capacity alignments $14 $0.17 $109 $1.26 The Andrews litigation settlement - - 8 0.09 Antitrust related matters 1 0.01 1 0.01 Total adjustments to operating income 15 0.18 118 1.36 Tax on non-U.S. GAAP adjustments1) (1) (0.02) (5) (0.06) Total adjustments to net income $14 $0.16 $113 $1.30 Average number of shares outstanding - diluted2) 83.2 86.5 Annualized adjustment on return on capital employed $60 $472 Adjustment on return on capital employed 1.5% 11.5% Annualized adjustment on return on total equity $54 $451 Adjustment on return on total equity 2.2% 16.8% 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. Items included in non-GAAP adjustments First 6 months 2024 First 6 months 2023 Adjustment Million Adjustment Per share Adjustment Million Adjustment Per share Capacity alignments $16 $0.19 $112 $1.29 The Andrews litigation settlement - - 8 0.09 Antitrust related matters 4 0.05 2 0.02 Total adjustments to operating income 20 0.24 122 1.41 Tax on non-U.S. GAAP adjustments1) (2) (0.02) (6) (0.07) Total adjustments to net income $18 $0.22 $116 $1.34 Average number of shares outstanding - diluted2) 83.2 86.5 Annualized adjustment on return on capital employed $40 $244 Adjustment on return on capital employed 1.0% 6.0% Annualized adjustment on return on total equity $36 $231 Adjustment on return on total equity 1.4% 8.6% 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 23 ===== Kvartalsrapport april - juni 2024 22 (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 for FY 2023 the Andrews litigation settlement. 6) Non -US GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstan ding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outs tanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth qu arter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to average total equity. 14) Operating cash flow less Capital expenditures, 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.