Kvartalsrapport Q3 2023

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===== SIDA 1 =====

Kvartalsrapport 
 
juli - september 2023 
 
Stockholm, Sverige, 20 oktober, 2023  
(NYSE: ALV och SSE: ALIV.sdb)

===== SIDA 2 =====

Kvartalsrapport juli - september 2023 
 
2 
Kv3 2023: Ytterligare ett starkt kvartal 
 
Finansiell sammanfattning Kv3 
$2 596 miljoner försäljning 
13% försäljningsökning 
11% organisk försäljningsökning* 
8,9% rörelsemarginal 
9,4% justerad rörelsemarginal* 
$1,57 vinst/aktie, 30% ökning 
$1,66 justerad vinst/aktie*, 35% ökning 
 Uppdaterade utsikter för helåret 2023 
Cirka 17% organisk försäljningsökning 
Cirka 1% positiv valutaeffekt på försäljningen 
Cirka 8,5% - 9,0% justerad rörelsemarginal 
Cirka $900 miljoner operativt kassaflöde 
 
 
Alla förändringstal i denna rapport jämför med motsvarande period året innan, om inte annat anges. 
 
Viktiga händelser i verksamheten under det tredje kvartalet 2023 
 
 Försäljningen ökade organiskt* med 11%, vilket var 7%-enheter bättre än global fordonsproduktionstillväxt på 3,8% (S&P Global 
oktober 2023). Vi överträffade fordonsproduktionen i alla regioner, främst från nya produktlanseringar och högre priser.  
 Lönsamheten ökade kraftigt, med positiv påverkan från prisökningar, organisk tillväxt och våra kostnadsbesparingsaktiviteter. 
Rörelseresultatet blev 232 MUSD och rörelsemarginalen 8,9%. Justerat rörelseresultat* förbättrades från 173 MUSD till 243 MUSD 
och justerad rörelsemarginal* ökande från 7,5% till 9,4%, trots inflationstryck och negativa valutaeffekter. Avkastning på sysselsatt 
kapital uppgick till 24% och justerad avkastning på sysselsatt kapital* till 25%. 
 Operativt kassaflöde var fortsatt starkt, trots en minskning från 232 MUSD till 202 MUSD, huvusakligen pga tillfälligt negativa 
rörelsekapitaleffekter. Fritt kassaflöde* minskade till 50 MUSD från 68 MUSD. Skuldkvoten* var oförändrad 1,3x jämfört med det 
andra kvartalet 2023. Utbetald utdelning uppgick till 0,66 USD per aktie. 1,23 miljoner aktier återköptes och makulerades i kvartalet.  
*För ej U.S. GAAP, se jämförelsetabell. 
 Nyckeltal 
MUSD, förutom aktiedata Kv 3 2023 Kv3 2022 Förändring 9M 2023 9M 2022 Förändring 
Försäljning $2 596 $2 302 13% $7 724 $6 507 19% 
Rörelseresultat 232 171 36% 453 429 5,5% 
Justerat rörelseresultat1) 243 173 40% 586 365 60% 
Rörelsemarginal 8,9% 7,4% 1,5 5,9% 6,6% -0,7 
Justerad rörelsemarginal1) 9,4% 7,5% 1,8 7,6% 5,6% 2,0 
Vinst per aktie2) 1,57 1,21 30% 3,04 3,06 -0,5% 
Justerad vinst per aktie1,2) 1,66 1,23 35% 4,48 2,58 73% 
Operativt kassaflöde $202 $232 -13% $535 $251 114% 
Avkastning på sysselsatt kapital3) 24,2% 18,0% 6,2 15,6% 15,3% 0,3 
Justerad avkastning på sysselsatt kapital1,3) 24,5% 18,4% 6,2 19,8% 13,1% 6,7 
1) Exklusive effekter från kapacitetsanpassningar, kartellrelaterade ärenden och 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 t ill genomsnittligt sysselsatt kapital. 
 
 
 
Kommentar från Mikael Bratt, VD och koncernchef   
 
Vi presterade väl i det tredje kvartalet. Vår 
organiska försäljningsökning var fortsatt 
markant högre än fordonsproduktionen och det 
justerade rörelseresultatet var ett nytt rekord för 
ett tredje kvartal sedan avknoppningen 2018. 
Det glädjer mig att vår starka prestation i det 
tredje kvartalet var omfattande, med 
förbättringar i ett flertal nyckelområden – både 
Vi höjer vår försäljningsindikation för helåret för att avspegla att 
fordonsproduktionen har utvecklats starkare än väntat, trots UAW 
strejken i USA. Vi har sett en förbättring av leverantörskedjornas 
stabilitetet under året, med en minskad volatilitet i kundavropen. 
Förbättringen är dock mindre än vad vi hade förväntat, eftersom vi såg 
en viss försämring i Europa i kvartal 3. Detta, tillsammans med den 
högre försäljningen samt ogynnsam valutautveckling gör att vi 
förväntar oss en förbättring av justerad rörelsemarginal för det fjärde 
kvartalet jämfört med föregående år på cirka 1,5-2 procentenheter. 
Vilket är i linje med den tidigare kommunicerade årsförbättringstrenden 
om cirka 2 procentenheter varje kvartal under 2023. 
Det vi uppnått under årets första nio månader tillsammans med vad vi 
ser för det sista kvartalet gör mig övertygad om att vi kommer leverera 
en avsevärd ökning av försäljning, operativt kassaflöde och justerat 
rörelseresultat för helåret 2023. Tillsammans med våra strukturella 
kostnadsförbättringsaktiviteter, vår allt starkare position med 
snabbväxande biltillverkare, en fortsatt gradvis förbättrad stabilitet i 
leverantörskedjorna samt utvecklingen av inflationskompensationen, 
har vi en solid grund för fortsatt stark utveckling de kommande åren, 
vilket stödjer våra medelsiktiga mål. 
på årsbasis och sekventiellt – inklusive brutto- och rörelsemarginal, 
produktivitet samt SG&A- och RD&E-kostnaders andel av försäljningen. 
Kassaflödet var starkt, och skuldkvoten var fortsatt väl inom vårt 
målintervall medan vi upprätthöll utdelningen och nästan tredubblade 
antalet aktier som återköptes jämfört med det andra kvartalet. 
Vi fortsätter arbeta hårt för att säkerställa vår konkurrenskraft även på 
medel och lång sikt. Under kvartalet preciserade vi en stor del av de 
strukturella kostnadsbesparingar vi avser att uppnå, vilket omfattar en 
minskning av vår indirekta arbetsstyrka på upp till 2 000. Den pågående 
omorganisationen av våra globala funktioner och europeiska 
verksamhet förväntas dessutom leda till en lägre normaliserad 
skattesats. Det är även positivt för vår potential på medel och lång sikt 
att vi fortsätter att förbättra vår position i Kina med de snabbväxande 
kinesiska biltillverkarna. Vi ökade vår försäljning till denna grupp med 
mer än 50% under årets första nio månader.

===== SIDA 3 =====

Kvartalsrapport juli - september 2023 
 
3 
Full year 2023 indications 
Our outlook indications for 2023 are mainly based on our customer call-offs, a full year 2023 global LVP growth of around 
7%, achievement of our targeted cost compensation effects, and a reduction of customer call -off volatility. Our full year 
2023 indications are also based on the assumption that the UAW strike is not prolonged beyond wh at is included in the 
S&P Global October outlook.  
 Full Year Indication  Full Year Indication 
Organic sales growth Around 17% Tax rate2) Around 20% 
FX impact on net sales Around 1% positive Operating cash flow3) Around $900 million 
Adjusted operating margin1) Around 8.5%-9% Capex, net, of sales Around 6% 
1) Excluding effects from capacity alignments, antitrust related matters, the Andrews litigation settlement and other discret e items. 2) Excluding unusual tax items. 3) 
Excluding unusual items. 
The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. Autoliv has not 
provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs and 
gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, 
such reconciliation is not available without unreasonable efforts and Autoliv is unable to determine the probable 
significance of the unavailable information. 
Conference call and webcast 
An earnings conference call will be held at 2:00 p.m. CET today, October 20, 2023. Information regarding how to 
participate is available on www.autoliv.com. The presentation slides for the conference call will be available on our 
website shortly after the publication of this financial report.

===== SIDA 4 =====

Kvartalsrapport juli - september 2023 
 
4 
Business and market condition update 
Supply Chain 
Global light vehicle production growth year-over-year was 3.8% (according to S&P Global October 2023) in the third 
quarter, with all major regions growing except China. We saw continued gradual improvement in call -off volatility as 
supply chains are less strained compared to a year earlier. However, volatility is still significantly higher than pre-
pandemic levels, and low customer demand visibility and changes to customer call -offs with short notice still had a 
negative impact on our production efficiency and profitability in the quarter. We ex pect the current industry-wide 
supply chain disruptions to continue to fade in the fourth quarter of 2023, but not enough to return to pre -pandemic 
levels of efficiency by year-end.  
Inflation 
In Q3 2023, cost pressures from labor, logistics, utilities, and other items had a negative impact on our profitability. 
Most of the inflationary cost pressure was offset by customer price and other compensations in the quarter. Raw 
material cost inflation and its impact on our profitability was negligible in Q3 2023. We expect the raw material price 
changes in 2023 to be largely reflected in price changes in our products, albeit with delays of several months. We also 
expect continued cost pressure from broad based inflation relating to labor, logistics, u tilities and other items, 
especially in Europe. We continue to execute on productivity and cost reduction activities to offset these cost 
pressures, and we continue to have challenging discussions with our customers on non -raw material cost inflation.  
Other matters 
Autoliv expects its tax rate for full year 2023 to be lower than previously anticipated. The full year tax rate is now 
projected to be around 20% for full year 2023. This is due to the ongoing reorganization of our global functions and 
European operations, which is expected to lead to a reduced tax rate for 2023. These changes are also expected to 
reduce the normalized tax rate to be within a range of around 25-30% from 2024 onwards. 
The UAW strike has had negligible impact on our sales and profitability in the third quarter, with around $2 million in 
lost sales. We estimate that the current strike actions, as known as of October 19, 2023, by UAW are currently 
negatively impacting our weekly sales by around $6 million.  
In June, 2023 Autoliv communicated a cost reduction framework which included the intention of reducing our indirect 
headcount by up to 2,000. We announced more details on these initiatives on July 13, 2023 and followed up with another 
announcement with details on October 5, 2023. Based on the intended work force reductions in these two 
announcements, we estimate that the annual cost reductions will amount to around $35 million in 2024, $65 million in 
2025 and reaching $85 million when fully implemented. We expect to announce further details, as plans materialize 
further. 
We expect 2024 to be an important step towards our medium-term target of 12% adjusted operating margin*. We intend, 
as usual, to come back with a full year indication in connection with our fourth quarter earnings rel ease in January next 
year.  
 
 
 
 
 
 
 
 
 
 
 
 
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, July and October  2023. All rights reserved.

===== SIDA 5 =====

Kvartalsrapport juli - september 2023 
 
5 
Key Performance Trends  
 
Net Sales Development by region Operating and adjusted operating income* and margins 
  
 
 
 
Capex and D&A Operating and adjusted operating Cash Flow 
  
  
 
Return on Capital Employed Cash Conversion* 
  
  
 
Key definitions   ------------------------------------------------------------------------------------------------------------ 
 
Capex, net: Capital Expenditure, net.  
D&A: Depreciation and Amortization. 
Adj. operating income and margin*: Operating income 
adjusted for capacity alignments, antitrust related matters 
and the Andrews litigation settlement. Capacity 
alignments include non-recurring costs related to our 
structural efficiency and business cycle management 
programs. 
 Operating cash flow excluding EC antitrust payment*: 
Adjusted for EC antitrust payment of $203 million in 2019. 
Cash conversion*: Free cash flow* in relation to net income 
adjusted for EC antitrust payment in 2019. Free cash flow 
defined as operating cash flow less capital expenditure, 
net.

===== SIDA 6 =====

Kvartalsrapport juli - september 2023 
 
6 
Consolidated sales development 
Third quarter 2023 
Consolidated sales  Third quarter Reported Currency Organic 
(Dollars in millions)  2023 2022 (U.S. GAAP) effects1) change* 
Airbags, Steering Wheels and Other2)  $1,761 $1,510 17% 1.9% 15% 
Seatbelt Products and Other2)  835 792 5.5% 2.9% 2.6% 
Total  $2,596 $2,302 13% 2.2% 11% 
       
Asia  $1,033 $955 8.1% (3.7)% 12% 
Whereof: China 538 537 0.1% (5.4)% 5.6% 
 Asia excl. China 495 418 18% (1.5)% 20% 
Americas  918 794 16% 5.0% 11% 
Europe  646 552 17% 8.4% 8.5% 
Total  $2,596 $2,302 13% 2.2% 11% 
1) Effects from currency translations. 2) Including Corporate sales.  
 
Sales by product – Airbags, Steering Wheels and 
Other 
Sales for all major product categories increased 
organically* in the quarter. The largest contributor to the 
increase was steering wheels, followed by inflatable 
curtains, side airbags, and passenger airbags. 
 Sales by product - Seatbelt Products and Other 
 
The main contributor to Seatbelt Products organic sales 
growth* was Asia excl. China and Europe, followed by 
Americas.  
 
 
 
Sales by region 
Our global organic sales* increased by 11% compared to 
the global LVP increase of 3.8% (according to S&P Global, 
October 2023). The 7pp outperformance was mainly driven 
by price increases and new product launches. 
  
 
Autoliv organic sales growth outperformed LVP growth by 
15pp in Asia excl. China, by 6pp in China, by 3pp in 
Americas and by 2pp in Europe. 
 
Q3 2023 organic growth* Americas Europe China Asia excl. China Global 
Autoliv 11% 8.5% 5.6% 20% 11% 
Main growth drivers Mercedes, Nissan, 
Honda Mercedes, BMW Lixiang, GWM, Chery Toyota, Hyundai, 
Subaru 
Honda, Toyota, 
Mercedes 
Main decline drivers BMW, Ford, Stellantis Volvo, Ford, VW VW, Nissan, GM Renault, Bodrin, 
Stellantis VW, Renault, Ford 
 
Light vehicle production development 
Change vs same period last year according to S&P Global 
Q3 2023 Americas Europe China Asia excl. China Global 
LVP (Oct 2023) 7.9% 6.5% (0.6)% 4.5% 3.8% 
LVP (Jul 2023) 4.4% 6.1% (16)% 2.6% (3.5)%

===== SIDA 7 =====

Kvartalsrapport juli - september 2023 
 
7 
Consolidated sales development 
First nine months 2023 
Consolidated sales  First 9 months Reported Currency Organic 
(Dollars in millions)  2023 2022 (U.S. GAAP) effects1) change* 
Airbags, Steering Wheels and Other2)  $5,191 $4,226 23% (0.6)% 23% 
Seatbelt Products and Other2)  2,533 2,281 11% (0.0)% 11% 
Total  $7,724 $6,507 19% (0.4)% 19% 
       
Asia  $2,937 $2,544 15% (5.5)% 21% 
Whereof: China 1,488 1,347 10% (6.1)% 17% 
 Asia excl. China 1,449 1,197 21% (4.7)% 26% 
Americas  2,665 2,225 20% 3.6% 16% 
Europe  2,122 1,738 22% 2.0% 20% 
Total  $7,724 $6,507 19% (0.4)% 19% 
1) Effects from currency translations. 2) Including Corporate sales.  
 
Sales by product – Airbags, Steering Wheels and 
Other 
Sales for all major product categories increased 
organically* in the first nine months. The largest contributor 
to the increase was inflatable curtains and steering wheels, 
followed by side airbags and passenger airbags. 
 Sales by product - Seatbelt Products and Other 
 
The main contributor to Seatbelt Products organic sales 
growth* was Europe, followed by Americas, Asia excl. 
China, and China.  
 
 
 
     
Sales by region 
Our global organic sales* increased by 19% compared to 
the global LVP increase of 9.1% (according to S&P Global, 
October 2023). The 10pp outperformance was mainly 
driven by new product launches and price increases. 
  
 
Autoliv outperformed LVP by around 15pp in Asia excl. 
China, by 12pp in China, by 6pp in Europe and in 
Americas. 
 
9M 2023 organic growth* Americas Europe China Asia excl. China Global 
Autoliv 16% 20% 17% 26% 19% 
Main growth drivers Honda, GM, Nissan VW, Stellantis, 
Renault Honda, Lixiang, BYD Toyota, Hyundai, 
Subaru 
Honda, Toyota, 
Hyundai 
Main decline drivers Ford, BMW Mitsubishi Nissan, VW, Renault Renault, KG Mobility, 
Stellantis Ford 
 
Light vehicle production development 
Change vs same period last year according to S&P Global 
First 9 months 2023 Americas Europe China Asia excl. China Global 
LVP (Oct 2023) 11% 14% 4.5% 11% 9.1% 
LVP (Jan 2023) 6.5% 5.7% (3.1)% 5.8% 2.8%

===== SIDA 8 =====

Kvartalsrapport juli - september 2023 
 
8 
Key launches in the third quarter 2023 
 
 
   BMW 5-series/i5              
    Honda Elevate      Dodge RAM Rampage                           
 
 
  
 
  
 
 
               
 
              
 
              
 
      
   Changan A07                    
 
   WEY High Mountain       
 
     Volvo EX30                     
 
 
 
 
 
  
 
 
           
 
             
 
              
 
      
     Peugeot e-308                
 
   Rolls Royce Spectre        
      Haval H5                        
 
 
 
 
 
 
 
 
               
                              
 
 
  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 juli - september 2023 
 
9 
 
Financial development  
Selected Income Statement items 
 
Condensed income statement Third quarter  First 9 months 
(Dollars in millions, except per share data) 2023 2022 Change  2023 2022 Change 
Net sales $2,596 $2,302 13%  $7,724 $6,507 19% 
Cost of sales (2,131) (1,918) 11%  (6,432) (5,510) 17% 
Gross profit $465 $383 21%  $1,291 $998 29% 
S,G&A (118) (105) 12%  (379) (333) 14% 
R,D&E, net (107) (106) 1.0%  (343) (325) 5.7% 
Amortization of intangibles (1) (0) 28%  (1) (2) (36)% 
Other income (expense), net (8) (1) 756%  (115) 91 n/a 
Operating income $232 $171 36%  $453 $429 5.5% 
Adjusted operating income1) $243 $173 40%  $586 $365 60% 
Financial and non-operating items, net (30) (18) 68%  (60) (40) 50% 
Income before taxes $201 $153 32%  $393 $389 0.9% 
Income taxes (67) (47) 43%  (131) (121) 8.5% 
Net income $134 $106 27%  $262 $268 (2.5)% 
Earnings per share2) $1.57 $1.21 30%  $3.04 $3.06 (0.5)% 
Adjusted earnings per share1,2) $1.66 $1.23 35%  $4.48 $2.58 73% 
        
Gross margin 17.9% 16.7% 1.3pp  16.7% 15.3% 1.4pp 
S,G&A, in relation to sales (4.6)% (4.6)% 0.0pp  (4.9)% (5.1)% 0.2pp 
R,D&E, net in relation to sales (4.1)% (4.6)% 0.5pp  (4.4)% (5.0)% 0.5pp 
Operating margin 8.9% 7.4% 1.5pp  5.9% 6.6% (0.7)pp 
Adjusted operating margin1) 9.4% 7.5% 1.8pp  7.6% 5.6% 2.0pp 
Tax Rate 33.4% 30.8% 2.6pp  33.4% 31.1% 2.3pp 
        
Other data        
No. of shares at period-end in millions3) 84.1 86.8 (3.1)%  84.1 86.8 (3.1)% 
Weighted average no. of shares in millions4) 84.9 87.0 (2.5)%  85.5 87.2 (2.0)% 
Weighted average no. of shares in millions, diluted4) 85.0 87.2 (2.5)%  85.7 87.4 (2.0)% 
1) Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters and the Andrews litigation settlemen t. 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. 
 
Third quarter 2023 development 
Gross profit increased by $82 million, and the gross margin 
increased by 1.3pp compared to the same quarter 2022. The 
gross profit increase was primarily driven by price increases, 
volume growth, lower costs for material and premium freight. 
This was partly offset by increased costs for personnel related 
to volume growth and wage inflation. 
S,G&A costs increased by $13 million compared to the prior 
year, mainly due to increased costs for personnel as well as 
adverse FX translation effects. S,G&A costs in relation to sales 
was unchanged at 4.6%. 
R,D&E, net costs was almost unchanged compared to the prior 
year, as higher costs for personnel and adverse FX translation 
effects were almost offset by higher engineering income. 
R,D&E, net, in relation to sales decreased from 4.6% to 4.1%. 
Other income (expense), net was negative $8 million 
compared to negative $1 million in the same period last year. 
The difference was mainly related to higher capacity alignment 
accruals in Q3 2023. 
Operating income increased by $61 million compared to the 
same period in 2022, mainly due to the increase in gross profit, 
partly offset by higher costs for S,G&A. 
  
Adjusted operating income* increased by $70 million 
compared to the prior year, mainly due to higher gross profit, 
partly offset by the higher costs for S,G&A. 
Financial and non-operating items, net, was negative $30 
million compared to negative $18 million a year earlier. The 
difference was mainly due to increased interest expense as an 
effect of higher debt and higher interest rates and FX 
revaluation effects. 
Income before taxes increased by $49 million compared to 
the prior year, mainly due to the increase in operating income, 
partly offset by a larger Financial and non-operating items, 
net. 
Tax rate was 33.4% compared to 30.8% in the same period 
last year. Discrete tax items, net, increased the tax rate this 
quarter by 0.2pp. Discrete tax items increased the tax rate by 
1.4pp in the same period last year. 
Earnings per share, diluted increased by $0.36 compared to 
a year earlier. The main drivers were $0.49 from operating 
income partly offset by $0.10 from financial items.

===== SIDA 10 =====

Kvartalsrapport juli - september 2023 
 
10 
First nine months 2023 development 
Gross profit increased by $294 million, and the gross margin 
increased by 1.4pp compared to the same period in 2022. The 
gross profit increase was primarily driven by price increases, 
volume growth and lower costs for premium freight. This was 
partly offset by increased costs for personnel related to higher 
volumes and wage inflation as well as adverse effects from FX 
and higher costs for energy. 
S,G&A costs increased by $46 million compared to the prior 
year, mainly due to increased costs for personnel projects. 
S,G&A costs in relation to sales decreased from 5.1% to 4.9%. 
R,D&E, net costs increased by around $19 million compared to 
the prior year, mainly due to higher costs for personnel. R,D&E, 
net, in relation to sales decreased from 5.0% to 4.4%. 
Other income (expense), net was negative $115 million 
compared to positive $91 million in the prior year. The prior 
year was positively impacted by around an $80 million gain 
from the sale of a property in Japan and around $20 million 
from a patent litigation settlement, partly offset by around $10 
million in capacity alignment provisions for the closure of a 
plant in South Korea while the first nine months of 2023 was 
negatively impacted by around $105 million in accruals for 
capacity alignments. 
Operating income increased by $24 million compared to the 
same period in 2022, mainly due to higher gross profit, partly 
offset by the changes in Other income (expense), net and the 
higher costs for S,G&A and R,D&E, net. 
  
Adjusted operating income* increased by $221 million 
compared to the prior year, mainly due to higher gross profit, 
partly offset by the higher costs for S,G&A and R,D&E, net. 
 
Financial and non-operating items, net, was negative $60 
million compared to negative $40 million a year earlier, mainly 
due to increased interest expense as an effect of higher debt 
and higher interest rates. 
 
Income before taxes increased by $3 million compared to the 
prior year, mainly due to the higher operating income partly 
offset by the increased interest expense. 
 
Tax rate was 33.4% compared to 31.1% in the same period 
last year. Discrete tax items, net, decreased the tax rate this 
year by 0.6pp. Discrete tax items increased the tax rate by 
1.2pp in the same period last year. 
 
Earnings per share, diluted decreased by $0.02 compared 
to a year earlier. The main drivers behind the decrease were 
$0.17 from financial items and $0.14 from lower operating 
income, partly offset by $0.23 from taxes.

===== SIDA 11 =====

Kvartalsrapport juli - september 2023 
 
11 
Selected Balance Sheet and Cash Flow items 
 
Selected Balance Sheet items Third quarter 
(Dollars in millions) 2023 2022 Change 
Trade working capital1) $1,303 $1,314 (0.8)% 
Trade working capital in relation to sales2) 12.5% 14.3% (1.7)pp 
- Receivables outstanding in relation to sales3) 21.0% 20.6% 0.4pp 
- Inventory outstanding in relation to sales4) 9.5% 10.0% (0.6)pp 
- Payables outstanding in relation to sales5) 17.9% 16.3% 1.6pp 
Cash & cash equivalents 475 483 (1.7)% 
Gross Debt6) 1,867 1,729 8.0% 
Net Debt7) 1,375 1,288 6.8% 
Capital employed8) 3,861 3,779 2.2% 
Return on capital employed9) 24.2% 18.0% 6.2pp 
Total equity $2,486 $2,491 (0.2)% 
Return on total equity10) 21.3% 16.8% 4.5pp 
Leverage ratio11) 1.3 1.6 (0.3) 
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  equity method investments, 
relative to average capital employed. 10) Annualized net income relative to average  total equity. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non U.S. 
GAAP measure. See reconciliation table. 
 
Selected Cash Flow items Third quarter  First 9 months 
(Dollars in millions) 2023 2022 Change  2023 2022 Change 
Net income $134 $106 27%  $262 $268 (2.5)% 
Changes in operating working capital (36) 89 n/a  (8) (168) (95)% 
Depreciation and amortization 95 87 8.6%  281 273 2.9% 
Gain on divestiture of property - - n/a  - (80) (100)% 
Other, net 9 (51) n/a  1 (44) n/a 
Operating cash flow $202 $232 (13)%  $535 $251 114% 
Capital expenditure, net (151) (164) (7.6)%  (419) (319) 31% 
Free cash flow1) $50 $68 (26)%  $117 $(69) n/a 
Cash conversion2) 37% 64% (27)pp  45% n/a n/a 
Shareholder returns        
- Dividends paid (56) (56) 0.1%  (169) (167) 0.8% 
- Share repurchases (120) (20) 500%  (202) (60) 237% 
Cash dividend paid per share $(0.66) $(0.64) 2.6%  $(1.98) $(1.92) 3.4% 
Capital expenditures, net in relation to sales 5.8% 7.1% (1.3)pp  5.4% 4.9% 0.5pp 
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. 
 
Third quarter 2023 development 
Trade working capital* decreased by $11 million 
compared to the same period last year, where the main 
drivers were $354 million in higher accounts payable partly 
offset by $286 million in higher receivables and $58 million 
in higher inventories. Compared to Q2 2023, trade working 
capital increased by $11 million, driven by $35 million in 
higher inventories, partly offset by $14 million in higher 
accounts payable and $10 million in lower receivables. 
Operating cash flow decreased by $30 million to $202 
million compared to the same period last year, mainly due 
to less favorable working capital effects partly offset by 
higher net income. 
  
Capital expenditure, net decreased by $12 million 
compared to the same period the previous year. Capital 
expenditure, net in relation to sales was 5.8% vs. 7.1% a 
year earlier. 
Free cash flow* was $50 million compared to $68 million 
in the same period prior year. The decrease was mainly 
due to the lower operating cash flow partly offset by lower 
capital expenditure, net.

===== SIDA 12 =====

Kvartalsrapport juli - september 2023 
 
12 
Cash conversion* defined as free cash flow* in relation to 
net income, was 37% in the period. 
Net debt* was $1,375 million as of September 30, 2023, 
which was $87 million higher than a year earlier. 
Liquidity position. As of September 30, 2023, our cash 
balance was around $0.5 billion, and including committed, 
unused loan facilities, our liquidity position was around 
$1.6 billion. 
 Leverage ratio*. As of September 30, 2023, the Company 
had a leverage ratio of 1.3x compared to 1.6x as of 
September 30, 2022, as the 12 months trailing adjusted 
EBITDA* increased more than the net debt* increased. 
Total equity decreased by $5 million compared to 
September 30, 2022. This was mainly due to $226 million 
in dividend payment and stock repurchases of $257 million 
partly offset by $418 million from net income and $36 
million in positive currency translation effects. 
 
First nine months 2023 development 
Operating cash flow increased by $285 million compared 
to the same period last year to $535 million, mainly due to 
higher adjusted operating income and less negative 
working capital effects. 
Capital expenditure, net increased by $99 million, mainly 
due to the impact on the prior year of $95 million from the 
sale of property, plant and equipment. Capital expenditure, 
net in relation to sales was 5.4% vs. 4.9% the prior year 
period. 
  
Free cash flow* was $117 million, compared to negative 
$69 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 45% in the period. 
 
Headcount 
 
 Sep 30 Jun 30 Sep 30 
 2023 2023 2022 
Headcount 71,200 71,200 67,800 
Whereof:  Direct headcount in manufacturing 52,900 52,600 49,600 
                 Indirect headcount 18,200 18,600 18,300 
Temporary personnel 11% 11% 11% 
 
At September 30, 2023, total headcount increased by 
3,400 compared to a year earlier. The indirect workforce 
decreased by 1% while the direct workforce increased by 
7%, reflecting that sales grew organically by 11% in the 
third quarter compared to a year earlier. 
 Compared to June 30, 2023, total headcount was 
unchanged, with a 1% increase in direct headcount and 
2% decrease in indirect headcount.

===== SIDA 13 =====

Kvartalsrapport juli - september 2023 
 
13 
Other Items 
 
• On September 22, 2023, Autoliv China and Great Wall 
Motor announced their intention to collaborate to 
address opportunities in the rapidly evolving global 
automotive landscape. The strategic cooperation aims 
to drive innovation through collaboration around 
advanced technologies with a special quality focus 
such as overhead passenger airbags and airbags for 
zero gravity seats with integrated seatbelts. 
• On September 28, 2023, Autoliv announced that Klaus 
Kompass, former VP Vehicle Safety at BMW Group, 
and Seigo Kuzumaki, former Fellow of Advanced R&D 
and Engineering, Toyota Motor Corporation, joined the 
Autoliv Research Advisory Board. 
 • On October 5, 2023, Autoliv announced an update on 
its ongoing initiatives to reduce its global headcount, 
including a downsizing of 300 employees in China, 
Japan, Sweden, the United States and the closure of 
an office in the Netherlands. 
• In Q3 2023, Autoliv repurchased and retired 1.23 
million shares of common stock at an average price of 
$97.23 per share under the Autoliv 2022-2024 stock 
repurchase program. 
 
 
 
 
Next Report 
Autoliv intends to publish the quarterly earnings report 
for the fourth quarter of 2023 on Friday, January 26, 
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 20 oktober 2023 kl 
12.00 CET. 
Definitions and SEC Filings 
Please refer to www.autoliv.com or to our Annual Report 
for definitions of terms used in this report. Autoliv’s annual 
report to stockholders, annual report on Form 10-K, 
quarterly reports on Form 10Q, proxy statements, 
management certifications, press releases, current 
reports on Form 8-K and other documents filed with the 
SEC can be obtained free of charge from Autoliv at the 
Company’s address. These documents are also available 
at the SEC’s website www.sec.gov and at Autoliv’s 
corporate website www.autoliv.com. 
This report includes content supplied by S&P Global; 
Copyright © Light Vehicle Production Forecast, January, 
July and October 2023. All rights reserved. S&P Global is 
a global supplier of independent industry information. The 
permission to use S&P Global copyrighted reports, data 
and information does not constitute an endorsement or 
approval by S&P Global of the manner, format, context, 
content, conclusion, opinion or viewpoint in which S&P 
Global reports, data and information or its derivations are 
used or referenced herein.

===== SIDA 14 =====

Kvartalsrapport juli - september 2023 
 
14 
 
 
“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; 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 juli - september 2023 
 
15 
Consolidated Statements of Income 
(Dollars in millions, except per share data, unaudited) Third quarter  First 9 months Latest 12 Full Year 
 2023 2022  2023 2022 months 2022 
Airbags, Steering Wheels and Other1) $1,761 $1,510  $5,191 $4,226 $6,771 $5,807 
Seatbelt products and Other1) 835 792  2,533 2,281 3,287 3,035 
Total net sales $2,596 $2,302  $7,724 $6,507 $10,059 $8,842 
        
Cost of sales (2,131) (1,918)  (6,432) (5,510) (8,369) (7,446) 
Gross profit $465 $383  $1,291 $998 $1,690 $1,396 
        
Selling, general & administrative expenses (118) (105)  (379) (333) (484) (437) 
Research, development & engineering expenses, net (107) (106)  (343) (325) (409) (390) 
Amortization of intangibles (1) (0)  (1) (2) (2) (3) 
Other income (expense), net (8) (1)  (115) 91 (113) 93 
Operating income $232 $171  $453 $429 $682 $659 
        
Income from equity method investments 1 1  4 3 4 3 
Interest income 3 2  10 4 13 6 
Interest expense (24) (15)  (68) (41) (88) (60) 
Other non-operating items, net (11) (6)  (6) (5) (5) (5) 
Income before income taxes $201 $153  $393 $389 $606 $603 
        
Income taxes (67) (47)  (131) (121) (188) (178) 
Net income $134 $106  $262 $268 $418 $425 
        
Less: Net income attributable to non-controlling interest 1 1  1 1 1 2 
Net income attributable to controlling interest $134 $105  $261 $267 $417 $423 
        
Earnings per share2) $1.57 $1.21  $3.04 $3.06 $4.85 $4.85 
1) Including Corporate sales. 2) Assuming dilution when applicable and net of treasury shares.

===== SIDA 16 =====

Kvartalsrapport juli - september 2023 
 
16 
Consolidated Balance Sheets 
  Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 
(Dollars in millions, unaudited)  2023 2023 2023 2022 2022 
Assets       
Cash & cash equivalents  $475 $475 $713 $594 $483 
Receivables, net  2,179 2,189 2,106 1,907 1,893 
Inventories, net  982 947 986 969 924 
Prepaid expenses  180 166 166 160 218 
Other current assets  63 120 90 84 69 
Total current assets  $3,879 $3,898 $4,061 $3,714 $3,587 
       
Property, plant & equipment, net  2,067 2,047 2,045 1,960 1,795 
Operating leases right-of-use assets  162 149 169 160 116 
Goodwill  1,372 1,375 1,376 1,375 1,364 
Intangible assets, net  6 6 7 7 5 
Investments and other non-current assets  500 484 528 502 467 
Total assets  $7,987 $7,959 $8,185 $7,717 $7,334 
       
Liabilities and equity       
Short-term debt  590 481 577 711 692 
Accounts payable  1,858 1,844 1,683 1,693 1,503 
Accrued expenses  1,093 1,122 969 915 965 
Operating lease liabilities - current  37 35 41 39 35 
Other current liabilities  274 274 258 283 263 
Total current liabilities  $3,851 $3,756 $3,529 $3,642 $3,458 
       
Long-term debt  1,277 1,290 1,601 1,054 1,037 
Pension liability  152 152 159 154 149 
Operating lease liabilities - non-current  125 113 127 119 81 
Other non-current liabilities  96 91 128 121 118 
Total non-current liabilities  $1,649 $1,645 $2,015 $1,450 $1,385 
       
Total parent shareholders’ equity  2,473 2,545 2,627 2,613 2,478 
Non-controlling interest  13 13 14 13 13 
Total equity  $2,486 $2,557 $2,641 $2,626 $2,491 
       
Total liabilities and equity  $7,987 $7,959 $8,185 $7,717 $7,334

===== SIDA 17 =====

Kvartalsrapport juli - september 2023 
 
17 
Consolidated Statements of Cash Flow 
 Third quarter  First 9 months Latest 12 Full Year 
(Dollars in millions, unaudited) 2023 2022  2023 2022 months 2022 
Net income $134 $106  $262 $268 $418 $425 
Depreciation and amortization 95 87  281 273 371 363 
Gain on divestiture of property - -  - (80) - (80) 
Other, net 9 (51)  1 (44) (9) (54) 
Changes in operating working capital, net (36) 89  (8) (168) 218 58 
Net cash provided by operating activities $202 $232  $535 $251 $998 $713 
        
Expenditures for property, plant and equipment (152) (164)  (420) (418) (588) (585) 
Proceeds from sale of property, plant and equipment 0 (0)  1 98 4 101 
Net cash used in investing activities $(151) $(164)  $(419) $(319) $(584) $(485) 
        
Net cash before financing1) $50 $68  $117 $(69) $414 $228 
        
Net increase (decrease) in short term debt 110 167  115 (110) 392 167 
Decrease in short-term part of long-term debt - -  (533) (302) (533) (302) 
Net increase (decrease) in long-term debt 1 (17)  557 251 251 (55) 
Dividends paid (56) (56)  (169) (167) (226) (224) 
Share repurchases (120) (20)  (202) (60) (257) (115) 
Common stock options exercised 0 0  1 0 1 0 
Dividend paid to non-controlling interests - (1)  (1) (1) (1) (2) 
Net cash (used in) provided by financing activities $(64) $73  $(232) $(389) $(374) $(531) 
        
Effect of exchange rate changes on cash 14 15  (3) (28) (48) (73) 
(Decrease) increase in cash and cash equivalents $0 $156  $(119) $(486) $(8) $(375) 
Cash and cash equivalents at period-start 475 327  594 969 483 969 
Cash and cash equivalents at period-end $475 $483  $475 $483 $475 $594 
1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See r econciliation table.

===== SIDA 18 =====

Kvartalsrapport juli - september 2023 
 
18 
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 anal yzing 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 note d 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 reporti ng 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 pages 6 and 7 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.  
 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 
(Dollars in millions) 2023 2023 2023 2022 2022 
Receivables, net $2,179 $2,189 $2,106 $1,907 $1,893 
Inventories, net 982 947 986 969 924 
Accounts payable (1,858) (1,844) (1,683) (1,693) (1,503) 
Trade Working capital $1,303 $1,292 $1,409 $1,183 $1,314 
 
Net Debt 
Autoliv from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of 
efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for 
DRDs in their analyses of the Company’s debt, therefore we provide this non-U.S. GAAP measure. DRDs are fair value 
adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value 
adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By 
adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest  
fair values. 
 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 
(Dollars in millions) 2023 2023 2023 2022 2022 
Short-term debt $590 $481 $577 $711 $692 
Long-term debt 1,277 1,290 1,601 1,054 1,037 
Total debt $1,867 $1,771 $2,179 $1,766 $1,729 
Cash & cash equivalents (475) (475) (713) (594) (483) 
Debt issuance cost/Debt-related derivatives, net (17) 4 12 12 42 
Net debt $1,375 $1,299 $1,477 $1,184 $1,288 
 
  Dec 31 Dec 31 Dec 31 Dec 31 
(Dollars in millions)  2021 2020 2019 2018 
Short-term debt  $346 $302 $368 $621 
Long-term debt  1,662 2,110 1,726 1,609 
Total debt  $2,008 $2,411 $2,094 $2,230 
Cash & cash equivalents  (969) (1,178) (445) (616) 
Debt issuance cost/Debt-related derivatives, net  13 (19) 0 5 
Net debt  $1,052 $1,214 $1,650 $1,619

===== SIDA 19 =====

Kvartalsrapport juli - september 2023 
 
19 
Leverage ratio 
The non-U.S. GAAP measure “net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses 
this measure to analyze the amount of debt the Company can incur under its debt policy. Management believes that this 
policy also provides guidance to credit and equity investors regarding the extent to which the Company would be 
prepared to leverage its operations. Autoliv’s policy is to maintain a leverage ratio commensurate with a strong 
investment grade credit rating. The Company measures its leverage ratio as net debt* adjusted for pension liabilities in 
relation to adjusted EBITDA*. The long-term target is to maintain a leverage ratio of around 1.0x within a range of 0.5x to 
1.5x. 
 
 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 
(Dollars in millions) 2023 2023 2023 2022 2022 2022 
Net debt1) $1,375 $1,299 $1,477 $1,184 $1,288 $1,318 
Pension liabilities 152 152 159 154 149 155 
Debt per the Policy $1,527 $1,451 $1,636 $1,338 $1,437 $1,473 
       
Net income2) 418 390 416 425 384 338 
Income taxes2) 188 168 176 178 163 143 
Interest expense, net2, 3) 75 67 60 54 51 51 
Other non-operating items, net2) 5 1 4 5 9 2 
Income from equity method investments2) (4) (4) (4) (3) (4) (3) 
Depreciation and amortization of intangibles2) 371 363 359 363 370 381 
Adjustments2), 4) 136 127 10 (61) (61) (59) 
EBITDA per the Policy (Adjusted EBITDA) $1,189 $1,112 $1,021 $961 $912 $854 
       
Leverage ratio 1.3 1.3 1.6 1.4 1.6 1.7 
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 ma tters 
and the Andrews litigation settlement. See items Affecting Comparability below.

===== SIDA 20 =====

Kvartalsrapport juli - september 2023 
 
20 
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 below. Management uses the non -U.S. 
GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free cash flow. The 
measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the 
reconciliation table below. 
 Third quarter  First 9 months Latest 12 Full Year 
(Dollars in millions) 2023 2022  2023 2022 months 2022 
Net income $134 $106  $262 $268 $418 $425 
Changes in operating working capital (36) 89  (8) (168) 218 58 
Depreciation and amortization 95 87  281 273 371 363 
Gain on divestiture of property - -  - (80) - (80) 
Other, net 9 (51)  1 (44) (9) (54) 
Operating cash flow $202 $232  $535 $251 $998 $713 
Capital expenditure, net (151) (164)  (419) (319) (584) (485) 
Free cash flow1) $50 $68  $117 $(69) $414 $228 
Net cash before financing $50 $68  $117 $(69) $414 $228 
Cash conversion2) 37% 64%  45% n/a 99% 54% 
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) 2021 2020  2019 20181) 
Net income $437 $188  $463 $184 
Changes in operating assets and liabilities (63) 277  47 (229) 
Depreciation and amortization 394 371  351 397 
Other, net2) (15) 13  (220) 239 
Operating cash flow $754 $849  $641 $591 
EC antitrust payment - -  (203) - 
Operating cash flow excl antitrust $754 $849  $844 $591 
Capital expenditure, net (454) (340)  (476) (555) 
Free cash flow3) $300 $509  $165 $36 
Free cash flow excl antitrust payment4) $300 $509  $368 $36 
Acquisitions of businesses and other, net - -  - (73) 
Net cash before financing $300 $509  $165 $(37) 
Cash conversion5) 69% 270%  36% 20% 
Cash conversion excl antitrust6) 69% 270%  79% 20% 
1) Including Discontinued Operations. 2) Including EC antitrust non -cash provision 2018 and EC antitrust payment 2019. 3) Operating cash flow less Capital expenditure, net. 
4) For 2019, Operating cash flow excluding EC antitrust payment less Capital expenditures, net. 5) Free cash flow relative to  Net income. 6) For 2019, Free cash flow 
excluding EC antitrust payment relative to Net income.

===== SIDA 21 =====

Kvartalsrapport juli - september 2023 
 
21 
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 bus iness. 
 
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. 
 
 Third quarter  2023  Third quarter  2022 
(Dollars in millions, except per share data) 
Reported 
U.S. 
GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP  Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP 
Operating income $232 $11 $243  $171 $2 $173 
Operating margin 8.9% 0.4% 9.4%  7.4% 0.1% 7.5% 
Income before taxes 201 11 212  153 2 155 
Net income attributable to controlling interest 134 8 141  105 2 107 
Return on capital employed2) 24.2% 0.4% 24.5%  18.0% 0.4% 18.4% 
Return on total equity3) 21.3% 0.2% 21.5%  16.8% 0.6% 17.3% 
Earnings per share4) $1.57 $0.09 $1.66  $1.21 $0.02 $1.23 
1) Effects from capacity alignments, antitrust related matters and the Andrews litigation settlement. 2) Annualized operating  income and income from equity method 
investments, relative to average capital employed. 3) Annualized income relative to average t otal equity. 4) Assuming dilution and net of treasury shares. 
        
 First 9 months 2023  First 9 months 2022 
 
Reported 
U.S. 
GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP  Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP 
Operating income $453 $133 $586  $429 $(64) $365 
Operating margin 5.9% 1.7% 7.6%  6.6% (1.0)% 5.6% 
Income before taxes 393 133 526  389 (64) 325 
Net income attributable to controlling interest 261 123 384  267 (41) 226 
Capital employed 3,861 123 3,985  3,779 (41) 3,738 
Return on capital employed2) 15.6% 4.2% 19.8%  15.3% (2.2)% 13.1% 
Return on total equity3) 13.5% 5.9% 19.5%  13.8% (2.0)% 11.8% 
Earnings per share4, 5) $3.04 $1.44 $4.48  $3.06 $(0.47) $2.58 
1) Effects from capacity alignments, antitrust related matters and the Andrews litigation settlement. 2) Annualized 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.

===== SIDA 22 =====

Kvartalsrapport juli - september 2023 
 
22 
 Latest 12 months  Full year 2022 
 Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP  Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP 
Operating income $682 $136 $819  $659 $(61) $598 
Operating margin 6.8% 1.4% 8.1%  7.5% (0.7)% 6.8% 
1) Effects from capacity alignments, antitrust related matters and the Andrews litigation settlement.  
        
 Full year 2021  Full year 2020 
 Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP  Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP 
Operating income $675 $8 $683  $382 $99 $482 
Operating margin 8.2% 0.1% 8.3%  5.1% 1.4% 6.5% 
1) Costs for capacity alignments and antitrust related matters.  
        
 Full year 2019  Full year 2018 
(Dollars in millions, except per share data) Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP  Reported 
U.S. GAAP 
Adjust-
ments1) 
Non-U.S. 
GAAP 
Operating income $726 $49 $774  $686 $222 $908 
Operating margin, % 8.5% 0.6% 9.1%  7.9% 2.6% 10.5% 
1) Costs for capacity alignments and antitrust related matters. 
 
Items included in non-U.S. GAAP adjustments Third quarter  2023  Third quarter  2022 
 
Adjustment 
Million 
Adjustment 
Per share  
Adjustment 
Million 
Adjustment 
Per share 
Capacity alignments $10 0.12  $2 $0.02 
The Andrews litigation settlement (0) (0.00)  - - 
Antitrust related matters 1 0.01  - - 
Total adjustments to operating income $11 $0.13  $2 $0.02 
Tax on non-U.S. GAAP adjustments1) (3) (0.04)  (0) (0.01) 
Total adjustments to net income $8 0.09  $2 $0.02 
      
Average number of shares outstanding - diluted2)  85.9   87.5 
      
Annualized adjustment on return on capital employed 44   9  
Adjustment on return on capital employed 0.4%   0.4%  
      
Annualized adjustment on return on total equity $31   $7  
Adjustment on return on total equity 0.2%   0.6%  
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 
      
Items included in non-GAAP adjustments First 9 months 2023  First 9 months 2022 
 
Adjustment 
Million 
Adjustment 
Per share  
Adjustment 
Million 
Adjustment 
Per share 
Capacity alignments $122 1.42  $(64) $(0.73) 
The Andrews litigation settlement 8 0.09  - - 
Antitrust related matters 3 0.04  - - 
Total adjustments to operating income $133 $1.55  $(64) $(0.73) 
Tax on non-U.S. GAAP adjustments1) (10) (0.11)  23 0.26 
Total adjustments to net income $123 1.44  $(41) $(0.47) 
      
Average number of shares outstanding - diluted2)  85.9   87.5 
      
Annualized adjustment on return on capital employed 177   (85)  
Adjustment on return on capital employed 4.2%   (2.2)%  
      
Annualized adjustment on return on total equity $164   $(55)  
Adjustment on return on total equity 5.9%   (2.0)%  
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 juli - september 2023 
 
23 
(Dollars in millions, unaudited) 2022 2021 2020 2019 2018 
Sales and Income      
Net sales $8,842 $8,230 $7,447 $8,548 $8,678 
Airbag sales1) 5,807 5,380 4,824 5,676 5,699 
Seatbelt sales 3,035 2,850 2,623 2,871 2,980 
Operating income 659 675 382 726 686 
Net income attributable to controlling interest 423 435 187 462 376 
Earnings per share (USD) – basic 4.86 4.97 2.14 5.29 4.32 
Earnings per share (USD) – assuming dilution2) 4.85 4.96 2.14 5.29 4.31 
Gross margin3) 15.8% 18.4% 16.7% 18.5% 19.7% 
R,D&E net in relation to sales (4.4)% (4.7)% (5.0)% (4.7)% (4.8)% 
S,G&A in relation to sales (4.9)% (5.3)% (5.2)% (4.7)% (4.5)% 
Operating margin4) 7.5% 8.2% 5.1% 8.5% 7.9% 
Adjusted operating margin5,6) 6.8% 8.3% 6.5% 9.1% 10.5% 
Balance Sheet 
Trade working capital7) 1,183 1,332 1,366 1,417 1,396 
Trade working capital in relation to sales8) 12.7% 15.7% 13.6% 16.2% 15.9% 
Receivables outstanding in relation to sales9) 20.4% 20.0% 18.1% 18.6% 19.0% 
Inventory outstanding in relation to sales10) 10.4% 9.2% 7.9% 8.5% 8.6% 
Payables outstanding in relation to sales11) 18.1% 13.5% 12.5% 10.8% 11.7% 
Total equity 2,626 2,648 2,423 2,122 1,897 
Total parent shareholders’ equity per share (USD) 30.30 30.10 27.56 24.19 21.63 
Current assets excluding cash 3,119 2,705 3,091 2,557 2,670 
Property, plant and equipment, net 1,960 1,855 1,869 1,816 1,690 
Intangible assets (primarily goodwill) 1,382 1,395 1,412 1,410 1,423 
Capital employed 3,810 3,700 3,637 3,772 3,516 
Net debt6) 1,184 1,052 1,214 1,650 1,619 
Total assets 7,717 7,537 8,157 6,771 6,722 
Long-term debt 1,054 1,662 2,110 1,726 1,609 
Return on capital employed12,13) 17.5% 18.3% 10.0% 20.0% 17.0% 
Return on total equity13,14) 16.3% 17.1% 9.0% 23.0% 13.0% 
Total equity ratio 34% 35% 30% 31% 28% 
Cash flow and other data 
Operating Cash flow15) 713 754 849 641 591 
Depreciation and amortization15) 363 394 371 351 397 
Capital expenditures, net15) 485 454 340 476 555 
Capital expenditures, net in relation to sales15) 5.5% 5.5% 4.6% 5.6% 5.7% 
Free Cash flow6,15,16) 228 300 509 165 36 
Cash conversion6,15,17) 54% 69% 270% 36% 20% 
Direct shareholder return15,18) 339 165 54 217 214 
Cash dividends paid per share (USD) $2.58 $1.88 $0.62 $2.48 $2.46 
Number of shares outstanding (millions)19) 86.2 87.5 87.4 87.2 87.1 
Number of employees, December 31 61,700 55,900 61,000 58,900 57,700 
1) Including steering wheels, inflators and initiators. 2) Assuming dilution and net of treasury shares. 3) Gross profit rela tive to sales. 4) Operating income relative to sales. 5) 
Excluding costs for capacity alignments, antitrust related matters and sep aration of our business segments. 6) Non-US GAAP measure, for reconciliation see tables above. 7) 
Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inven tory less outstanding payables relative to 
annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inve ntory relative to annualized fourth quarter sales. 
11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital 
employed. 13) The Company has decided not to recalculate prior periods since the distribution of Veoneer had a significant im pact on total equity and capital employed 
making the comparison less meaningful. 14) Income relative to average total equity. 15) Including Discontinued Operations 201 8. 16) Operating cash flow less Capital 
expenditures, net. 17) Free cash flow relative to Net income. 18) Dividends paid and Sha res repurchased. 19) At year end, excluding dilution and net of treasury shares.