FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2024
===== 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.