FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
===== SIDA 1 =====
Kvartalsrapport
juli - september 2024
Stockholm, Sverige, 18 oktober, 2024
(NYSE: ALV och SSE: ALIV.sdb)
===== SIDA 2 =====
Kvartalsrapport juli - september 2024
1
Kv3 2024:Försäljningen överträffade fordonsproduktionen markant
Finansiell sammanfattning Kv3
$2 555 miljoner försäljning
1,6% försäljningsminskning
0,8% organisk försäljningsminskning*
8,9% rörelsemarginal
9,3% justerad rörelsemarginal*
$1,74 vinst/aktie efter utspädning, 11% ökning
$1,84 justerad vinst/aktie efter utspädning*, 11% ökning
Utsikter för helåret 2024
Cirka 1% 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 tredje kvartalet 2024
Tredje kvartalets försäljning minskade organiskt* med 0,8%, vilket var 4 procentenheter bättre än den globala fordonsproduktionen
som minskade med 4,8% (S&P Global Okt 2024). Vi växte snabbare än fordonsproduktionen i Europa och i Asien exkl. Kina, främst
pga en hög nivå av produktlanseringar och positiv prissättning. Vår försäljning till inhemska kinesiska fordonstillverkare växte med
18%, vilket är dubbelt så mycket som de 8.5% som deras bilproduktion växte med. Trots detta underpresterade vi i Kina, pga en
kraftigt negativ fordonsmix som en konsekvens av att modeller med lägre säkerhetsinnehåll växte starkt medan modeller med högre
säkerhetsinnehåll minskade.
Lönsamheten var oförändrad trots en mindre försäljningsminskning. Detta främst pga framgångsrikt genomförande av
kostnadsreduceringar och kostnadsskompensation från våra kunder och trots inflationsrelaterade kostnadsökningar samt en 14 MUSD
kostnad relaterad till en leverantörsuppgörelse. Både direkt och indirekt antal anställda fortsatte att minska. Rörelseresultatet var 226
MUSD och rörelsemarginalen var 8,9%. Justerat rörelseresultat* var 237 MUSD och justerad rörelsermarginal* var 9,3%. Avkastning
på sysselsatt kapital var 22,9% och justerad avkastning på sysselsatt kapital* var 23,9%.
Operativt kassaflöde var 177 MUSD, som förväntat, och vi är på rätt spår mot $1,1 miljarder för 2024. Fritt kassaflöde* var 32 MUSD
jämfört med 50 MUSD förra året. Med 1,4x är skuldsättningsgraden* fortsatt inom målintervallet. I kvartalet betalades en utdelning på
0,68 USD per aktie, och 1,33 miljoner aktier återköptes och makulerades.
*För ej U.S. GAAP, se jämförelsetabell.
Nyckeltal
MUSD, förutom aktiedata Kv3 2024 Kv3 2023 Förändring 9M 2024 9M 2023 Förändring
Försäljning $2 555 $2 596 -1,6% $7 774 $7 724 0,7%
Rörelseresultat 226 232 -2,4% 626 453 38%
Justerat rörelseresultat1) 237 243 -2,3% 657 586 12%
Rörelsemarginal 8,9% 8,9% -0,1 8,1% 5,9% 2,2
Justerad rörelsemarginal1) 9,3% 9,4% -0,1 8,5% 7,6% 0,9
Vinst/aktie efter utspädning 1,74 1,57 11% 4,98 3,04 64%
Justerad vinst/aktie efter utspädning1) 1,84 1,66 11% 5,30 4,48 18%
Operativt kassaflöde 177 202 -12% 639 535 19%
Avkastning på sysselsatt kapital2) 22,9% 24,2% -1,3 21,2% 15,6% 5,6
Justerad avkastning på sysselsatt kapital1,2) 23,9% 24,5% -0,7 22,1% 19,8% 2,3
1) Exklusive effekter från kapacitetsanpassningar, kartellrelaterade ärenden och för helår 2023 Andrewsförlikningen. Ej U.S. GAAP, se jämförelsetabell. 2) Annualiserat
rörelseresultat och vinstandelar i minoritetsbolag i förhållande till genomsnittligt sysselsatt kapital.
Kommentar från Mikael Bratt, VD & koncernchef
Fordonsproduktionen var svag i det tredje
kvartalet, med en minskning på nära 5%
globalt. Detta pga en kombination av
lagerminskningar, främst i Amerika, och en
hög jämförelsebas, framför allt i Kina. I
denna tuffa miljö lyckades Autoliv växa 4
procentenheter snabbare än fordons-
produktionen, vilket möjliggjorde en
Baserat på försäljningstrender och orderingång de senaste åren,
förväntar vi oss fortsatta marknadsandelsökningar med de inhemska
kinesiska biltillverkarna de kommande åren.
Förhandlingarna om inflationskompensation med våra kunder har
utvecklats i linje med våra förväntningar och endast några få
förhandlingar återstår att slutföra.
Med det säsongsmässigt starka fjärde kvartalet kvar av året, kan vi
bekräfta vår indikation om cirka 9,5-10,0% justerad rörelsemarginal
för 2024. Vi förväntar oss att vara på den låga änden av detta
intervall, eftersom vi nu förväntar oss en organisk tillväxt för helåret
2024 på 1% i stället för som tidigare förväntat 2%. Detta pga den
ofördelaktiga utvecklingen av marknadsmixen.
Vårt operativa kassaflöde är på rätt spår mot helårsindikationen om
1,1 miljarder USD och vår balansräkning är fortsatt stark, med en
skuldsättningskvot på 1,4x. Detta stärker vårt fortsatta fokus på en
hög akteiägaravkastning och på våra finansiella mål.
nära oförändrad försäljning och rörelseresultat. Detta trots en
14 MUSD kostnad relaterad till en leverantörsuppgörelse. Vi
kunde uppnå dessa resultat främst tack vare vår
kostnadskontroll, inklusive en fortsatt minskning av antalet
tjänstemän. Genom att accelerera våra effektiviseringsåtgärder
minskade den produktionsrelaterade arbetsstyrkan med 3 100
jämfört med ett år tidigare, vilket är en minskning med 6%.
Jag är nöjd med att vi växte snabbare än fordonsproduktionen
globalt, vilket främst var ett resultat av att vi växte klart
snabbare än fordonsproduktionen i Europa och i Asien exkl.
Kina. I Kina växte vi mindre än fordonsproduktionen pga en
kraftigt negativ marknadsmix, men vi fortsatte att stärka vår
position med de kinesiska fordonstillverkarna.
===== SIDA 3 =====
Kvartalsrapport juli - september 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% and the
achievement of our targeted cost compensation effects.
Full Year Indication Full Year Indication
Organic sales growth Around 1% 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 i tems. 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, October 18, 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 juli - september 2024
3
Business and market condition update
Supply Chain
In the third quarter, global light vehicle production declined by 4.8% year-over-year (according to S&P Global Oct 2024).
Call-off volatility was unchanged compared to a year earlier but improved slightly compared to the second quarter 2024,
and it remains at 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 expect call -off volatility
in 2024 on average to be slightly lower than it was in 2023 but still remain higher than the pre-pandemic level.
Inflation
In the third quarter, cost pressure from labor and other items had a negative impact on our profitability, although 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 third quarter. We continue to 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 have successfully received inflation compensation from almost all of our
customers, with only a few negotiations still outstanding.
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, July and October 2024. All rights reserved.
===== SIDA 5 =====
Kvartalsrapport juli - september 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 juli - september 2024
5
Consolidated sales development
Third quarter 2024
Consolidated sales Third quarter Reported change Currency Organic
(Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $1,736 $1,761 (1.4)% (0.7)% (0.7)%
Seatbelt Products and Other2) 819 835 (2.0)% (1.0)% (1.0)%
Total $2,555 $2,596 (1.6)% (0.8)% (0.8)%
Americas $851 $918 (7.2)% (3.5)% (3.8)%
Europe 700 646 8.4% 2.2% 6.3%
China 495 538 (8.1)% 1.3% (9.3)%
Asia excl. China 508 495 2.7% (2.1)% 4.8%
Total $2,555 $2,596 (1.6)% (0.8)% (0.8)%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales declined organically* by 0.7% in the quarter. The
largest contributor to the decrease was passenger airbags,
inflatable curtains, knee airbags and driver airbags, partly
offset by growth in steering wheels, inflators and center
airbags.
Sales by product - Seatbelt Products and Other
Sales for Seatbelt Products and Other declined organically*
by 1.0% in the quarter. Sales declined organically in China,
while it increased in Asia excluding China and the Americas
with Europe being virtually unchanged.
Sales by region
Our global organic sales* decreased by 0.8% compared to
the global LVP decrease of 4.8% (according to S&P Global,
October 2024). The outperformance was mainly driven by
new product launches and higher prices, partly offset by
negative customer and model mix. Our organic sales growth
outperformed LVP growth by 12pp in Europe and by 10pp in
Asia excluding China while we underperformed by 0.6pp
in the Americas and by 6.4pp in China. LVP growth in China
was heavily tilted to domestic OEMs with typically lower
safety content. LVP for global OEMs declined by 15% while
it increased by 8.5% for domestic OEMs. Autoliv's sales to
domestic OEMs increased by 18% in the quarter following a
strong order intake with domestic OEMs in recent years. In
India, we grew organically by around 17%, while LVP was
close to unchanged.
Q3 2024 organic growth* Americas Europe China Asia excl. China Global
Autoliv (3.8)% 6.3% (9.3)% 4.8% (0.8)%
Main growth drivers GM, Renault, VW Mercedes, Renault,
Ford Geely, Chery, BMW Hyundai, Suzuki, Tata Geely, Mercedes,
Renault
Main decline drivers Stellantis, EV OEM,
Nissan Stellantis, Volvo, Fisker Lixiang Auto, VW,
Honda Nissan, Mazda Stellantis, EV OEM, GM
Light vehicle production development
Change compared to the same period last year according to S&P Global
Q3 2024 Americas Europe China Asia excl. China Global
LVP (Oct 2024) (3.2)% (6.1)% (2.9)% (5.3)% (4.8)%
LVP (Jul 2024) (2.5)% (5.4)% (7.0)% (3.3)% (5.5)%
===== SIDA 7 =====
Kvartalsrapport juli - september 2024
6
Consolidated sales development
First nine months 2024
Consolidated sales First 9 months Reported change Currency Organic
(Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $5,264 $5,191 1.4% (1.0)% 2.4%
Seatbelt Products and Other2) 2,511 2,533 (0.9)% (1.2)% 0.3%
Total $7,774 $7,724 0.7% (1.1)% 1.7%
Americas $2,637 $2,665 (1.0)% (0.2)% (0.8)%
Europe 2,231 2,122 5.2% 1.4% 3.7%
China 1,423 1,488 (4.4)% (2.0)% (2.3)%
Asia excl. China 1,483 1,449 2.3% (5.3)% 7.7%
Total $7,774 $7,724 0.7% (1.1)% 1.7%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales grew organically* by 2.4% in the period. The largest
contributor to the increase was steering wheels, followed by
center airbags, inflatable curtains, side airbags and inflators,
partly offset by decreases for passenger airbags and knee
airbags.
Sales by product - Seatbelt Products and Other
Sales for Seatbelt Products and Other grew organically* by
0.3% 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 1.7% compared to
the global LVP decrease of 1.8% (according to S&P Global,
October 2024). The 3.5pp outperformance was mainly driven
by new product launches and higher prices, partly offset by
negative customer and model mix.
Our organic sales growth outperformed LVP growth by 12pp
in Asia excluding China, by 7.3pp in Europe and by 0.8pp in
the Americas, while it underperformed by 4.6pp in China.
LVP growth in China was tilted to domestic OEMs with
typically lower safety content. Domestic OEM LVP in China
grew by 15% while LVP declined by 10% for global OEMs in
the first nine months.
9M 2024 organic growth* Americas Europe China Asia excl. China Global
Autoliv (0.8)% 3.7% (2.3)% 7.7% 1.7%
Main growth drivers VW, Toyota, Hyundai Mercedes, Renault,
BMW Geely, BMW, Chery Hyundai, Tata, Suzuki Mercedes, Hyundai,
Geely
Main decline drivers Stellantis, EV OEM,
Nissan Stellantis, VW, Volvo EV OEM, Honda, GM Nissan, Renault Stellantis, EV OEM, GM
Light vehicle production development
First 9 months 2024 Americas Europe China Asia excl. China Global
LVP (Oct 2024) (1.6)% (3.6)% 2.3% (4.8)% (1.8)%
LVP (Jan 2024) 0.8% (1.8)% 1.4% (1.6)% (0.4)%
===== SIDA 8 =====
Kvartalsrapport juli - september 2024
7
Key launches in the third quarter 2024
Nio Onvo L60
BMX X3
Zeekr 7X
Nissan Patrol & Armada
Alfa Romeo Junior
Audi A6 e-tron
Changan Avatr 15
Audi A5
Tata Curvv
Ford Capri Chery Luxeed R7 Mahindra Thar (ROXX)
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 2024
8
Financial development
Selected Income Statement items
Condensed income statement Third quarter First 9 months
(Dollars in millions, except per share data) 2024 2023 Change 2024 2023 Change
Net sales $2,555 $2,596 (1.6)% $7,774 $7,724 0.7%
Cost of sales (2,095) (2,131) (1.7)% (6,398) (6,432) (0.5)%
Gross profit 459 465 (1.3)% 1,377 1,291 6.6%
S,G&A (129) (119) 8.4% (399) (380) 4.9%
R,D&E, net (96) (107) (10)% (325) (343) (5.5)%
Other income (expense), net (9) (8) 11% (27) (115) (76)%
Operating income 226 232 (2.4)% 626 453 38%
Adjusted operating income1) 237 243 (2.3)% 657 586 12%
Financial and non-operating items, net (29) (30) (3.7)% (73) (60) 21%
Income before taxes 197 201 (2.2)% 554 393 41%
Income taxes (58) (67) (13)% (149) (131) 14%
Net income $139 $134 3.4% $404 $262 55%
Earnings per share - diluted3) $1.74 $1.57 11% $4.98 $3.04 64%
Adjusted earnings per share - diluted1,3) $1.84 $1.66 11% $5.30 $4.48 18%
Gross margin 18.0% 17.9% 0.1pp 17.7% 16.7% 1.0pp
S,G&A, in relation to sales (5.0)% (4.6)% (0.5)pp (5.1)% (4.9)% (0.2)pp
R,D&E, net in relation to sales (3.7)% (4.1)% 0.4pp (4.2)% (4.4)% 0.3pp
Operating margin 8.9% 8.9% (0.1)pp 8.1% 5.9% 2.2pp
Adjusted operating margin1) 9.3% 9.4% (0.1)pp 8.5% 7.6% 0.9pp
Tax Rate 29.6% 33.4% (3.8)pp 27.0% 33.4% (6.4)pp
Other data
No. of shares at period-end in millions3) 78.8 84.1 (6.4)% 78.8 84.1 (6.4)%
Weighted average no. of shares in millions3) 79.2 84.9 (6.6)% 80.7 85.5 (5.6)%
Weighted average no. of shares in millions,
diluted3)
79.3 85.0 (6.7)% 80.9 85.7 (5.6)%
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) Net of treasury shares.
Third quarter 2024 development
Gross profit decreased by $6 million, and the gross margin
increased by 0.1pp compared to the same quarter 2023. The
gross profit decrease was primarily driven by a $14 million
cost increase in direct material related to a settlement and to
a lesser extent the lower net sales. This was partly offset by
lower costs for mainly premium freight and labor, partly due to
improved customer call-off accuracy.
S,G&A costs increased by $10 million compared to the prior
year, mainly due to higher costs for personnel due to wage
inflation while headcount was unchanged. Costs for
digitalization, IT projects and licenses also increased,
impacted by inflation. S,G&A costs in relation to sales
increased from 4.6% to 5.0%.
R,D&E, net costs decreased by $11 million compared to the
prior year, mainly due to $6 million in higher engineering
income. The decrease was also supported to a smaller extent
from several items, mainly positive FX translation effects,
lower personnel costs and lower costs for samples and
prototypes. R,D&E, net, in relation to sales decreased from
4.1% to 3.7%.
Other income (expense), net was close to unchanged at
negative $9 million, compared to negative $8 million in the
same period last year.
Operating income decreased by $6 million compared to the
same period in 2023, due to the lower gross profit, higher
S,G&A costs and other income (expenses) partly offset by
lower costs for R,D&E, net, as outlined above.
Adjusted operating income* decreased by $6 million
compared to the prior year, due to the lower gross profit,
higher S,G&A costs and other income (expenses) partly
offset by lower costs for R,D&E, net, as outlined above.
Financial and non-operating items, net, was negative $29
million compared to negative $30 million a year earlier.
Income before taxes decreased by $4 million compared to
the prior year, mainly due to the lower operating income.
Tax rate was 29.6% compared to 33.4% in the same period
last year. The lower tax rate was impacted by a favorable
country mix compared to the same quarter last year.
Discrete tax items, net, decreased the tax rate this quarter
by 1.2pp. Discrete tax items, net, increased the tax rate by
0.2pp in the same period last year.
Earnings per share, diluted increased by $0.17 compared
to a year earlier. The main drivers were $0.12 from lower
number of shares and $0.10 from lower taxes, partly offset
by $0.05 from lower operating income.
===== SIDA 10 =====
Kvartalsrapport juli - september 2024
9
First nine months 2024 development
Gross profit increased by $85 million, and the gross margin
increased by 1.0pp compared to the same period in 2023.
More than half of the improvement in gross profit was driven
by the increase in net sales, but lower costs for labor and
premium freight also contributed to the improvement following
more stable customer call-offs and headcount reductions.
S,G&A costs increased by $18 million compared to the prior
year. The main reason for the cost increase was higher costs
for personnel, due to the high wage inflation. S,G&A costs in
relation to sales increased from 4.9% to 5.1%.
R,D&E, net costs decreased by $19 million compared to the
prior year. Higher engineering income explain almost the
entire improvement. R,D&E, net, in relation to sales
decreased from 4.4% to 4.2%.
Other income (expense), net was negative $27 million
compared to negative $115 million in the same period last
year, almost entirely due to lower capacity alignment accruals
compared to the same period previous year.
Operating income increased by $173 million compared to
the same period in 2023, mainly due to the increase in gross
profit, and lower capacity alignment accruals, as outlined
above.
Adjusted operating income* increased by $71 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, as outlined above.
Financial and non-operating items, net, was negative $73
million compared to negative $60 million a year earlier. The
change was mainly due to increased interest expense as the
result of higher debt and higher interest rates.
Income before taxes increased by $161 million compared
to the prior year, mainly due to the increase in operating
income and financial and non-operating items, net, as
outlined above.
Tax rate was 27.0% compared to 33.4% in the same period
last year. The lower tax rate was impacted by favorable
country mix compared to the prior year. Discrete tax items,
net, decreased the tax rate this period by 2.8pp. Discrete tax
items, net, decreased the tax rate by 0.6pp in the same
period last year.
Earnings per share, diluted increased by $1.94 compared
to a year earlier. The main drivers were $1.67 from higher
operating income, $0.29 from lower number of shares and
$0.09 from taxes partly offset by $0.11 from higher financial
and non-operating items, net.
===== SIDA 11 =====
Kvartalsrapport juli - september 2024
10
Selected Cash Flow and Balance Sheet items
Selected Cash Flow items Third quarter First 9 months
(Dollars in millions) 2024 2023 Change 2024 2023 Change
Net income $139 $134 3.4% $404 $262 55%
Changes in operating working capital (68) (36) 88% (54) (8) 593%
Depreciation and amortization 97 95 1.8% 289 281 2.7%
Other, net 10 9 14% 1 1 6%
Operating cash flow 177 202 (12)% 639 535 19%
Capital expenditure, net (145) (151) (4.1)% (431) (419) 3%
Free cash flow1) $32 $50 (36)% $208 $117 79%
Cash conversion2) 23% 37% (14)pp 52% 45% 7pp
Shareholder returns
- Dividends paid (54) (56) (3.8)% (164) (169) (2.8)%
- Share repurchases (130) (120) 8.2% (450) (202) 123%
Cash dividend paid per share $(0.68) $(0.66) 2.7% $(2.04) $(1.98) 2.7%
Capital expenditures, net in relation to sales 5.7% 5.8% (0.1)pp 5.5% 5.4% 0.1pp
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 Third quarter
(Dollars in millions) 2024 2023 Change
Trade working capital1) $1,307 $1,303 0.3%
Trade working capital in relation to sales2) 12.8% 12.5% 0.2pp
- Receivables outstanding in relation to sales3) 21.5% 21.0% 0.5pp
- Inventory outstanding in relation to sales4) 9.8% 9.5% 0.3pp
- Payables outstanding in relation to sales5) 18.4% 17.9% 0.5pp
Cash & cash equivalents 415 475 (13)%
Gross Debt6) 2,210 1,867 18%
Net Debt7) 1,787 1,375 30%
Capital employed8) 4,085 3,861 5.8%
Return on capital employed9) 22.9% 24.2% (1.3)pp
Total equity 2,298 2,486 (7.6)%
Return on total equity10) 24.1% 21.3% 2.8pp
Leverage ratio11) 1.4 1.3 0.1pp
1) Outstanding receivables and outstanding inventory less outstanding payables. 2) Outstanding receivables and outstanding in ventory less outstanding payables relative to
annualized quarterly sales. Non-U.S. GAAP measure, see reconciliation table. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstandin g 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) Annualiz ed operating income and income
from equity method investments, relative to average capital employed. 10) Annualized net income relative to average total equ ity. 11) Net debt adjusted for pension liabilities in
relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table.
Third quarter 2024 development
Changes in operating working capital impacted operating
cash flow by $68 million negative compared to an impact of
$36 million negative in the same period the prior year.
Almost all of the $68 million impact in the quarter came from
increases in inventories due to high customer call off
volatility at the end of the quarter and higher receivables,
mainly as a result of seasonally higher sales in September.
Other, net was $10 million positive compared to $9 million
positive in the same period the prior year.
Operating cash flow decreased by $25 million to $177
million compared to the same period last year, mainly due to
that operating working capital increased by $34 million more
than it increased the same period last year, as outlined
above.
Capital expenditure, net decreased by $6 million compared
to the same period the previous year. The level of Capital
expenditure, net, in relation to sales was relatively stable at
5.7% versus 5.8% a year earlier. The level is currently above
what we expect for the longer term, due to investments in
capacity, mainly in Asia, and in footprint optimization, mainly
in Europe and the Americas.
Free cash flow* was positive $32 million compared to
positive $50 million in the same period the prior year. The
decrease was due to the lower operating cash flow partly
offset by the lower capital expenditure, net.
Cash conversion* defined as free cash flow* in relation to
net income, was 23% in the quarter.
===== SIDA 12 =====
Kvartalsrapport juli - september 2024
11
Trade working capital* increased by $4 million compared to
the same period last year, where the main drivers were $13
million in higher accounts receivables, $24 million in higher
accounts payable and $15 million in higher inventories. In
relation to sales, trade working capital increased from 12.5%
to 12.8%.
Cash and cash equivalents as of September 30, 2024 was
around $0.4 billion, while committed, unused loan facilities,
was around $1.2 billion.
Net debt* was $1,787 million as of September 30, 2024,
which was $412 million higher than a year earlier.
Total equity as of September 30, 2024, decreased by $188
million compared to September 30, 2023. This was mainly
due to $221 million in dividend payments and stock
repurchases including taxes of $608 million, partly offset by
$632 million from net income.
Leverage ratio*: On September 30, 2024, the Company had
a leverage ratio of 1.4x compared to 1.3x on September 30,
2023, as the 12 months trailing adjusted EBITDA* increased
by around $187 million while the net debt* per the policy
increased by around $407 million.
First nine months 2024 development
Operating cash flow increased by $104 million compared to
the same period last year, to $639 million, mainly due to
higher net income, partly offset by more negative effects
from increased operating working capital.
Capital expenditure, net increased by $12 million. Capital
expenditure, net in relation to sales was relatively stable at
5.5% versus 5.4% the prior year period. The level is
currently slightly above what we expect for the longer term,
due to investments in capacity, mainly in Asia, and in
footprint optimization, mainly in Europe and the Americas.
Free cash flow* was positive $208 million, compared to
positive $117 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 52% in the period.
Headcount
Sep 30 Jun 30 Sep 30
2024 2024 2023
Headcount 67,200 68,700 71,200
Whereof: Direct headcount in manufacturing 49,800 51,100 52,900
Indirect headcount 17,400 17,500 18,200
Temporary personnel 9% 9% 11%
As of September 30, 2024, total headcount (Full Time
Equivalent) decreased by around 4,000, or by 5.6%,
compared to a year earlier, despite almost unchanged sales.
The indirect workforce decreased by around 800, or by
4.4%, mainly reflecting our structural reduction initiatives.
The direct workforce decreased by approximately 3,100, or
by 5.9%, partly due to that an improvement in customer call-
off accuracy in the third quarter has enabled us to accelerate
operating efficiency improvements.
Compared to June 30, 2024, total headcount (FTE)
decreased by around 1,500, or by 2.2%. Indirect headcount
decreased by around 100, or by 0.6%, while direct
headcount decreased by approximately 1,300, or by 2.5%.
===== SIDA 13 =====
Kvartalsrapport juli - september 2024
12
Other Items
• On September 13, 2024, the Autoliv Board of Directors
appointed Ms. Adriana Karaboutis as an independent
director to the Autoliv Board of Directors effective
immediately. With the addition of Ms. Karaboutis, Autoliv
has expanded its Board size from eleven to twelve
directors. Ms. Karaboutis most recently served as Group
Chief Information and Digital Officer of National Grid
PLC, one of the world's largest public utility companies.
She previously served as EVP Technology, Business
Solutions and Corporate Affairs at Biogen Inc., as well
as VP and Global CIO of Dell, Inc. Ms. Karaboutis also
has more than 20 years at General Motors and Ford in
various international leadership positions. Ms.
Karaboutis is appointed for a term expiring at the 2025
Annual General Meeting of Stockholders at which time
the Board is expected to contract to eleven members
with the retirement of Mr. Hasse Johansson.
• On September 17, 2024, Autoliv announced the
appointment of Mr. Fabien Dumont as Executive Vice
President & Chief Technology Officer and a member of
the Autoliv Executive Management Team. Fabien
Dumont previously served as Vice President
Engineering in Autoliv China and has been with Autoliv
since 1998. In leading the Autoliv China Engineering
team, Fabien Dumont has played a vital role in
developing innovations and technologies that support
the fast-moving Chinese market.
• In Q3 2024, Autoliv repurchased and retired 1.33 million
shares of common stock at an average price of $97.80
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 2024 on Friday, January 31,
2025.
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 18 oktober 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,
July and October 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 juli - september 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 juli - september 2024
14
Consolidated Statements of Income
Third quarter First 9 months Latest 12 Full Year
(Dollars in millions, except per share data,
unaudited) 2024 2023 2024 2023 months 2023
Airbags, Steering Wheels and Other1) $1,736 $1,761 $5,264 $5,191 $7,128 $7,055
Seatbelt products and Other1) 819 835 2,511 2,533 3,398 3,420
Total net sales 2,555 2,596 7,774 7,724 10,526 10,475
Cost of sales (2,095) (2,131) (6,398) (6,432) (8,619) (8,654)
Gross profit 459 465 1,377 1,291 1,907 1,822
Selling, general & administrative expenses (129) (119) (399) (380) (519) (500)
Research, development & engineering expenses, net (96) (107) (325) (343) (406) (425)
Other income (expense), net (9) (8) (27) (115) (119) (207)
Operating income 226 232 626 453 863 690
Income from equity method investments 2 1 5 4 6 5
Interest income 3 3 10 10 13 13
Interest expense (27) (24) (81) (68) (105) (93)
Other non-operating items, net (7) (11) (7) (6) (4) (3)
Income before income taxes 197 201 554 393 773 612
Income taxes (58) (67) (149) (131) (141) (123)
Net income 139 134 404 262 632 489
Less: Net income attributable to non-controlling
interest 0 1 1 1 2 1
Net income attributable to controlling interest $138 $134 $403 $261 $630 $488
Earnings per share - diluted $1.74 $1.57 $4.98 $3.04 $7.70 $5.72
1) Including Corporate sales.
===== SIDA 16 =====
Kvartalsrapport juli - september 2024
15
Consolidated Balance Sheets
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Dollars in millions, unaudited) 2024 2024 2024 2023 2023
Assets
Cash & cash equivalents $415 $408 $569 $498 $475
Receivables, net 2,192 2,090 2,194 2,198 2,179
Inventories, net 997 936 997 1,012 982
Prepaid expenses 172 193 180 173 180
Other current assets 90 76 71 93 63
Total current assets 3,865 3,703 4,011 3,974 3,879
Property, plant & equipment, net 2,317 2,197 2,192 2,192 2,067
Operating leases right-of-use assets 173 167 177 176 162
Goodwill and intangible assets, net 1,386 1,379 1,381 1,385 1,378
Investments and other non-current assets 565 564 564 606 500
Total assets 8,306 8,010 8,324 8,332 7,987
Liabilities and equity
Short-term debt 624 455 310 538 590
Accounts payable 1,881 1,858 1,855 1,978 1,858
Accrued expenses 1,189 1,120 1,129 1,135 1,093
Operating lease liabilities - current 44 41 41 39 37
Other current liabilities 297 312 323 345 274
Total current liabilities 4,034 3,785 3,658 4,035 3,851
Long-term debt 1,586 1,540 1,830 1,324 1,277
Pension liability 147 140 149 159 152
Operating lease liabilities - non-current 130 127 134 135 125
Other non-current liabilities 110 106 111 109 96
Total non-current liabilities 1,974 1,913 2,224 1,728 1,649
Total parent shareholders’ equity 2,288 2,298 2,428 2,557 2,473
Non-controlling interest 10 13 13 13 13
Total equity 2,298 2,311 2,442 2,570 2,486
Total liabilities and equity $8,306 $8,010 $8,324 $8,332 $7,987
Consolidated Statements of Cash Flow
Third quarter First 9 months Latest 12 Full Year
(Dollars in millions, unaudited) 2024 2023 2024 2023 months 2023
Net income $139 $134 $404 $262 $632 $489
Depreciation and amortization 97 95 289 281 385 378
Other, net 10 9 1 1 (119) (119)
Changes in operating working capital, net (68) (36) (54) (8) 189 235
Net cash provided by operating activities 177 202 639 535 1,086 982
Expenditures for property, plant and equipment (146) (152) (440) (420) (593) (572)
Proceeds from sale of property, plant and equipment 1 0 9 1 12 4
Net cash used in investing activities (145) (151) (431) (419) (581) (569)
Free cash flow1) 32 50 208 117 505 414
Increase in short term debt 152 110 85 115 32 61
Decrease in long-term debt - - (306) (533) (306) (533)
Increase in long-term debt 46 1 581 557 583 559
Dividends paid (54) (56) (164) (169) (221) (225)
Share repurchases (130) (120) (450) (202) (600) (352)
Common stock options exercised - 0 0 1 1 1
Dividend paid to non-controlling interests (4) - (5) (1) (5) (1)
Net cash used in financing activities 11 (64) (259) (232) (516) (490)
Effect of exchange rate changes on cash (36) 14 (33) (3) (50) (20)
Increase (decrease) in cash and cash equivalents 6 (0) (84) (119) (61) (96)
Cash and cash equivalents at period-start 408 475 498 594 475 594
Cash and cash equivalents at period-end $415 $475 $415 $475 $415 $498
1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliation table.
===== SIDA 17 =====
Kvartalsrapport juli - september 2024
16
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 pages 5 and 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.
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Dollars in millions) 2024 2024 2024 2023 2023
Total current assets $3,865 $3,703 $4,011 $3,974 $3,879
Total current liabilities (4,034) (3,785) (3,658) (4,035) (3,851)
Working capital (U.S. GAAP) (169) (83) 353 (61) 28
Less: Cash and cash equivalents (415) (408) (569) (498) (475)
Prepaid expenses (172) (193) (180) (173) (180)
Other current assets (90) (76) (71) (93) (63)
Less: Short-term debt 624 455 310 538 590
Accrued expenses 1,189 1,120 1,129 1,135 1,093
Operating lease liabilities - current 44 41 41 39 37
Other current liabilities 297 312 323 345 274
Trade working capital (non-U.S. GAAP) $1,307 $1,169 $1,336 $1,232 $1,303
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Dollars in millions) 2024 2024 2024 2023 2023
Receivables, net $2,192 $2,090 $2,194 $2,198 $2,179
Inventories, net 997 936 997 1,012 982
Accounts payable (1,881) (1,858) (1,855) (1,978) (1,858)
Trade working capital (non-U.S. GAAP) $1,307 $1,169 $1,336 $1,232 $1,303
===== SIDA 18 =====
Kvartalsrapport juli - september 2024
17
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 adjus tment
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) 2024 2024 2024 2023 2023
Short-term debt $624 $455 $310 $538 $590
Long-term debt 1,586 1,540 1,830 1,324 1,277
Total debt 2,210 1,996 2,140 1,862 1,867
Cash & cash equivalents (415) (408) (569) (498) (475)
Debt issuance cost/Debt-related derivatives, net (9) (8) (9) 3 (17)
Net debt $1,787 $1,579 $1,562 $1,367 $1,375
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
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 Sep 30
(Dollars in millions) 2024 2024 2023
Net debt1) $1,787 $1,579 $1,375
Pension liabilities 147 140 152
Debt per the Policy $1,934 $1,720 $1,527
Net income2) $632 $627 $418
Income taxes2) 141 150 188
Interest expense, net2, 3) 93 89 75
Other non-operating items, net2) 4 8 5
Income from equity method investments2) (6) (6) (4)
Depreciation and amortization of intangibles2) 385 384 371
Adjustments2), 4) 128 128 136
EBITDA per the Policy (Adjusted EBITDA) $1,376 $1,380 $1,189
Leverage ratio 1.4 1.2 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 t he Andrews litigation settlement. See Items Affecting Comparability below.
===== SIDA 19 =====
Kvartalsrapport juli - september 2024
18
Free Cash Flow 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 “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) 2024 2023 2024 2023 months 2023
Net income $139 $134 $404 $262 $632 $489
Changes in operating working capital (68) (36) (54) (8) 189 235
Depreciation and amortization 97 95 289 281 385 378
Other, net 10 9 1 1 (119) (119)
Operating cash flow 177 202 $639 $535 1,086 982
Capital expenditure, net (145) (151) (431) (419) (581) (569)
Free cash flow1) $32 $50 $208 $117 $505 $414
Cash conversion2) 23% 37% 52% 45% 80% 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 flow excluding EC antitrust payment relative to net income.
===== SIDA 20 =====
Kvartalsrapport juli - september 2024
19
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.
Third quarter 2024 Third 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 $226 11 $237 $232 11 $243
Operating margin 8.9% 0.4% 9.3% 8.9% 0.4% 9.4%
Income before taxes 197 11 208 201 11 212
Net income attributable to controlling interest 138 8 146 134 8 141
Return on capital employed2) 22.9% 1.0% 23.9% 24.2% 0.4% 24.5%
Return on total equity3) 24.1% 1.1% 25.2% 21.3% 0.2% 21.5%
Earnings per share - diluted $1.74 0.10 $1.84 $1.57 0.09 $1.66
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.
First 9 months 2024 First 9 months 2023
Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $626 31 $657 $453 133 $586
Operating margin 8.1% 0.4% 8.5% 5.9% 1.7% 7.6%
Income before taxes 554 31 585 393 133 526
Net income attributable to controlling interest 403 26 429 261 123 384
Capital employed 4,085 26 4,111 3,861 123 3,985
Return on capital employed2) 21.2% 1.0% 22.1% 15.6% 4.2% 19.8%
Return on total equity3) 22.4% 1.3% 23.7% 13.5% 5.9% 19.5%
Earnings per share - diluted $4.98 0.32 $5.30 $3.04 1.44 $4.48
1) Effects from capacity alignments, antitrust related matters and for FY 2023 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.
===== SIDA 21 =====
Kvartalsrapport juli - september 2024
20
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 $863 128 $991 $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 Third quarter 2024 Third quarter 2023
Adjustment
Million
Adjustment
Per share
Adjustment
Million
Adjustment
Per share
Capacity alignments $9 $0.12 $10 $0.12
The Andrews litigation settlement - - (0) (0.00)
Antitrust related matters 2 0.02 1 0.01
Total adjustments to operating income 11 0.14 11 0.13
Tax on non-U.S. GAAP adjustments1) (3) (0.04) (3) (0.04)
Total adjustments to net income $8 $0.10 $8 $0.09
Average number of shares outstanding - diluted 79.3 85.0
Annualized adjustment on return on capital employed $44 $44
Adjustment on return on capital employed 1.0% 0.4%
Annualized adjustment on return on total equity $32 $31
Adjustment on return on total equity 1.1% 0.2%
1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).
Items included in non-GAAP adjustments First 9 months 2024 First 9 months 2023
Adjustment
Million
Adjustment
Per share
Adjustment
Million
Adjustment
Per share
Capacity alignments $25 $0.31 $122 $1.42
The Andrews litigation settlement - - 8 0.09
Antitrust related matters 6 0.07 3 0.04
Total adjustments to operating income 31 0.39 133 1.55
Tax on non-U.S. GAAP adjustments1) (5) (0.06) (10) (0.11)
Total adjustments to net income $26 $0.32 $123 $1.44
Average number of shares outstanding - diluted 80.9 85.7
Annualized adjustment on return on capital employed $42 $177
Adjustment on return on capital employed 1.0% 4.2%
Annualized adjustment on return on total equity $35 $164
Adjustment on return on total equity 1.3% 5.9%
1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).
===== SIDA 22 =====
Kvartalsrapport juli - september 2024
21
(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 – basic2) 5.74 4.86 4.97 2.14 5.29
Earnings per share – diluted2) 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) Net of treasury shares. 3) Gross profit relative to sales. 4) Oper ating 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 outstanding inventory less outstanding payables relative to annuali zed fourth
quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inventory relati ve to annualized fourth quarter sales. 11) Outstanding
payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relativ e 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 Sha res repurchased. 17) At year
end, excluding dilution and net of treasury shares.