FULLTEXT DEL 1 AV 1
Kvartalsrapport Q4 2023
===== SIDA 1 =====
Kvartalsrapport
oktober - december 2023
Stockholm, Sverige, 26 januari, 2024
(NYSE: ALV och SSE: ALIV.sdb)
===== SIDA 2 =====
Kvartalsrapport oktober - december 2023
2
Q4 2023: Rekordförsäljning och stark lönsamhet
Finansiell sammanfattning Kv4
$2 751 miljoner försäljning
18% försäljningsökning
16% organisk försäljningsökning*
8,6% rörelsemarginal
12,1% justerad röreslemarginal*
$2,71 vinst/aktie, 51% ökning
$3,74 justerad vinst/aktie*, 105% ökning
Utsikter för helåret 2024
Cirka 5% organisk försäljningsökning
Cirka 0% valutaeffekt på försäljningen
Cirka 10,5% justerad rörelsemarginal
Cirka $1,2 miljarder operativt kassaflöde
Alla förändringstal i denna rapport jämför med motsvarande period året innan, om inte annat anges.
Viktiga händelser i verksamheten under det fjärde kvartalet 2023
Rekordförsäljning med en organisk* ökning om 16%, vilket var 7%-enheter bättre än tillväxten för den globala
fordonsproduktion på 9% (S&P Global januari 2024). Vi överträffade fordonsproduktionen i alla regioner, förutom i Kina, främst på
grund av nya produktlanseringar och högre priser. I Kina ökade fordonsproduktionen med 31% för inhemska tillverkare med
generellt lägre säkerhetsinnehåll medan den endast ökade med 7% för globala tillverkare med generellt högre säkerhetsinnehåll.
Lönsamheten ökade kraftigt, med positiv påverkan av prisökningar, organisk tillväxt, och våra besparingsåtgärder.
Rörelseresultatet uppgick till 237 MUSD och rörelsemarginalen 8,6%. Justerat rörelseresultat* förbättrades från 233 MUSD till 334
MUSD och justerad rörelsermarginal* ökade från 10,0% till 12,1%. Avkastining på sysselsatt kapital uppgick till 24% och justerad
avkastning på sysselsatt kapital* till 33%.
Operativt kassaflöde var fortsatt starkt, och uppgick till 447 MUSD. Fritt kassaflöde* var oförändrat 297 MUSD. Skuldkvoten*
förbättrades till 1,2x från 1,3x i tredje kvartalet 2023, trots aktieägaravkastning på 207 MUSD i form av utdelningar och aktieåterköp.
Utbetald utdelning uppgick till 0,68 USD per aktie (3% ökning), och 1,51 miljoner aktier återköptes och makulerades i kvartalet.
*För ej U.S. GAAP se jämförelsetabell.
Nyckeltal
MUSD, förutom aktiedata Kv4 2023 Kv4 2022 Förändring År 2023 År 2022 Förändring
Försäljning $2 751 $2 335 18% $10 475 $8 842 18%
Rörelseresultat 237 230 3,1% 690 659 4,7%
Justerat röreseresultat1) 334 233 43% 920 598 54%
Rörelsemarginal 8,6% 9,8% -1,2 6,6% 7,5% -0,9
Justerad rörelsemarginal1) 12,1% 10,0% 2,2 8,8% 6,8% 2,0pp
Vinst per aktie2) 2,71 1,80 51% 5,72 4,85 18%
Justerad vinst per aktie1,2) 3,74 1,83 105% 8,19 4,40 86%
Operativt kassaflöde $447 $462 -3,4% $982 $713 38%
Avkastning på sysselsatt kapital3) 24,4% 24,3% 0,1 17,7% 17,5% 0,2
Justerad avkastning på sysselsatt kapital1,3) 32,9% 24,9% 8,1 23,1% 16,0% 7,1
1) Exklusive effekter från kapacitetsanpassningar, kartellrelaterade ärenden och för helår 2023 Andrewsförlikningen. Ej U.S. GAAP, se jämförelsetabell. 2) Efter
utspädning när tillämpligt och exkl. återköpta aktier. 3) Annualiserat rörelseresultat och vinstandelar i minoritetsbolag i förhållande till genomsnittligt sysselsatt kapital.
Kommentar från Mikael Bratt, VD & koncernchef
Som vi indikerat under hela året avslutade vi
2023 starkt. Vi uppnådde eller överträffade
alla våra indikationer för 2023. Försäljning
och justerat rörelseresultat slog nya rekord
medan det operativa kassaflödet fortsatt var
starkt. Jag är nöjd med att bruttomarginalen
förbättrades väsentligt. Vår marknadsandels-
position på 45% understöds av att
orderingången 2023 var den högsta
Vi fortsätter att leverera gällande våra planer för strukturella
kostnadsbesparingar, med cirka 75% av de planerade indirekta
personalminskningarna detaljerade och kommunicerade. Vi ser också
positiva effekter på produktiviteten i tillverkningen.
Vårt resultat för 2023 utvecklades i hög grad som vi indikerade med
en kraftig kostnadsmotvind i början av året, vilket ledde till ett svagt
första kvartal. Kvartal för kvartal förbättrades dock vårt resultat, drivet
av inflationskompensation från våra kunder, effektiviseringar och
organisk tillväxt, vilket ledde till en betydande lönsamhetsförbättring
för helåret. Vår hållbarhetsagenda ger resultat med goda framsteg
när det gäller utsläpp av växthusgaser, användning av förnybar el och
incidentfrekvens.
Säsongsvariationerna från tidigare år kommer sannolikt att upprepas
under 2024, med en förväntad justerad rörelsemarginal för första
kvartalet på cirka 7%, följt av gradvisa kvartalsvisa förbättringar, vilket
leder till en justerad rörelsemarginal för helåret 2024 på cirka 10,5%.
Viktiga drivkrafter för marginalutvecklingen för helåret är fortsatt
förbättring av avropsstabiliteten, att vi växer snabbare än
fordonsproduktionen och positiva effekter från våra strategiska och
strukturella initiativ. Det förbättrade resultat som vi förväntar oss
under 2024 bör ta oss ett viktigt steg närmare vårt mål om cirka 12%
justerad rörelsemarginal.
under de senaste fem åren, med en bra mix av både nya och
traditionella fordonstillverkare med bra blanding av plattformar för
elbilar och förbränningsmotorer.
Vi ökade aktieägaravkastningen till mer än 200 MUSD under
kvartalet samtidigt som vi fortsatte att förbättra vår skuldkvot. I
slutet av 2023 hade vi återköpt aktier för nära 0,5 miljarder USD
inom ramen för vårt återköpsprogram på 1,5 miljarder USD.
Vi överträffade fordonsproduktionen i alla regioner förutom Kina,
som hade en mycket stark fordonsproduktion för inhemska
fordonstillverkare med generellt lägre säkerhetsinnehåll. Vi stärkte
vår marknadsposition i Kina och vår orderingång var stark på en
snabbrörlig marknad, där inhemska fordonstillverkare nu står för
drivkraften bakom fordonsproduktionensutvecklingen.
===== SIDA 3 =====
Kvartalsrapport oktober - december 2023
3
Full year 2024 guidance
Our 2024 guidance is mainly based on our customer call-offs, a full year 2024 global LVP decline of around 1%, our
achievement of our targeted cost compensation effects, and a reduction in customer call -off volatility.
Full Year Indication Full Year Indication
Organic sales growth Around 5% Tax rate2) Around 28%
FX impact on net sales Around 0% Operating cash flow3) Around $1.2 billion
Adjusted operating margin1) Around 10.5% Capex, net, of sales Around 5.5%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual tax items. 3) Excluding un usual 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, January 26, 2024. Informat ion 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 oktober - december 2023
4
Business and market condition update
Supply Chain
Global light vehicle production growth year-over-year was around 9% (according to S&P Global January 2024) in the
fourth quarter, with all major regions growing. We saw continued gradual improvement in call -off volatility as supply
chains are less strained compared to a year earlier. However, volatility is still higher than pre-pandemic levels, and low
customer demand visibility and changes to customer call-offs with short notice still had a negative impact on our
production efficiency and profitability in the quarter. Fourth quarter industry-wide supply chain disruptions improved
compared to the average 2023 situation, with the expectation that disruptions will remain unchanged from current
situation for 2024. We thereby expect that call-off volatility through 2024 will be lower than in 2023 but remain higher
than the pre-pandemic level. The unfolding situation in the Red Sea has not yet had any measurable impact on our
own operations but we note near-term trends of extended transit times and increased freight tariffs and surcharges
has led to some customers lowering their near term production plans. However, it is too early to estimate what impact
this situation will have on our operations, directly or through our customers, going forward.
Inflation
In Q4 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 costs had a slightly positive impact on our profitability in Q4 2023. We expect the raw material price changes
in 2024 to be largely reflected in price changes in our products, albeit with delays of several months. We also expect
continued cost pressure from inflation relating mainly to labor, but also to a lesser extent to utilities and other items,
especially in Europe and the Americas. We continue to execute on productivity and cost reduction activities to offset
these cost pressures, and we continue to seek inflation compensation from our customers.
Other matters
In June 2023, Autoliv communicated a cost reduction framework which included the intent to reduce our indirect
headcount by up to 2,000, and to improve direct labor productivity equivalent to up to a 6,000 direct workforce reduction.
We announced more details on these initiatives on July 13, 2023, October 5, 2023, and on October 30, 2023. Based on
the intended indirect workforce reductions in these three announcements, we estimate that the annual cost reductions wi ll
amount to around $130 million in total annual savings when fully implemented, with around $50 million in savings in 2024,
which is expected to increase to around $100 million in 2025. Total accrual for capacity alignment in 2023 amounted to
$218 million. We do not expect to announce further major reduction initiative details. Further reduction of global
headcount as part of the structural initiative will be through minor actions and natural attrition with limited accruals. At the
end of 2023, around 75% of the planned indirect reductions were detailed and announced. We already see positive
impact on direct labor efficiency as a result.
The UAW strike had only a limited impact on our sales and profitability in the fourth quarter.
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, October 2023 and January 2024. All rights reserved.
===== SIDA 5 =====
Kvartalsrapport oktober - december 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 for FY
2023 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 oktober - december 2023
6
Consolidated sales development
Fourth quarter 2023
Consolidated sales Fourth quarter Reported change Currency Organic
(Dollars in millions) 2023 2022 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $1,864 $1,581 18% 1.9% 16%
Seatbelt Products and Other2) 887 754 18% 2.7% 15%
Total $2,751 $2,335 18% 2.2% 16%
Asia $1,135 $977 16% (1.4)% 18%
Whereof: China 617 536 15% (1.5)% 17%
Asia excl. China 519 441 18% (1.4)% 19%
Americas 861 742 16% 3.4% 13%
Europe 755 616 23% 6.4% 16%
Total $2,751 $2,335 18% 2.2% 16%
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
Sales for Seatbelt Products and Other increased
organically* in all major regions in the quarter. The largest
contributor to the increase was the Americas, followed by
Asia excluding China, China and Europe.
Sales by region
Our global organic sales* increased by 16% compared to
the global LVP increase of 9.1% (according to S&P Global,
January 2024). The 7pp outperformance was mainly driven
by price increases and new product launches.
Autoliv organic sales growth outperformed LVP growth by
17pp in Asia excluding China, by 10pp in Europe and by
8pp in the Americas, while we underperformed LVP by
around 2pp in China due to adverse LVP mix in the quarter
as LVP growth in China was heavily tilted to domestic
OEMs with typically lower safety content.
Q4 2023 organic growth* Americas Europe China Asia excl. China Global
Autoliv 13% 16% 17% 19% 16%
Main growth drivers Honda, Mercedes,
Toyota
Mercedes, Stellantis,
BMW
Honda, VW, Great
Wall
Toyota, Hyundai,
Honda
Honda, Mercedes,
Toyota
Main decline drivers GM, Stellantis, BMW Renault, VW BMW, Renault,
Hyundai Renault, Nissan Renault
Light vehicle production development
Change vs same period last year according to S&P Global
Q4 2023 Americas Europe China Asia excl. China Global
LVP (Jan 2024) 4.2% 6.6% 18 % 2.5% 9.1%
LVP (Oct 2023) (5.6)% 6.2% 6.8% 3.1% 3.6%
===== SIDA 7 =====
Kvartalsrapport oktober - december 2023
7
Consolidated sales development
Full year 2023
Consolidated sales Full year Reported change Currency Organic
(Dollars in millions) 2023 2022 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $7,055 $5,807 21% 0.1% 21%
Seatbelt Products and Other2) 3,420 3,035 13% 0.7% 12%
Total $10,475 $8,842 18% 0.3% 18%
Asia $4,072 $3,521 16% (4.3)% 20%
Whereof: China 2,105 1,883 12% (4.8)% 17%
Asia excl. China 1,968 1,638 20% (3.8)% 24%
Americas 3,526 2,967 19% 3.5% 15%
Europe 2,877 2,355 22% 3.1% 19%
Total $10,475 $8,842 18% 0.3% 18%
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* for the full year. The largest contributor to the
increase was steering wheels and inflatable curtains,
followed by side airbags and passenger airbags.
Sales by product – Seatbelt Products and Other
Sales for seatbelt products and other increased
organically* in all major regions for the full year. The main
contributor to organic sales growth* was Europe, followed
by Asia excluding China, the Americas and China.
Sales by region
Our global organic sales* increased by 18% compared to
the global LVP increase of 9.4% (according to S&P Global,
January 2024). The 9pp outperformance was mainly driven
by new product launches and price increases.
Autoliv outperformed LVP by around 15pp in Asia
excluding China, by 8pp in China, by 7pp in Europe and
7pp in the Americas.
FY 2023 organic growth* Americas Europe China Asia excl. China Global
Autoliv 15% 19% 17% 24% 18%
Main growth drivers Honda, Nissan,
Mercedes
Stellantis, VW,
Mercedes
Honda, Great Wall,
Mercedes
Toyota, Hyundai,
Subaru
Honda, Toyota,
Mercedes
Main decline drivers Ford, BMW, Renault Mitsubishi Nissan, Renault,
BMW Renault Ford
Light vehicle production development
Change vs same period last year according to S&P Global
Full year 2023 Americas Europe China Asia excl. China Global
LVP (Jan 2024) 8.7% 13% 9.1% 8.6% 9.4%
LVP (Jan 2023) 5.6% 5.3% 0.5% 4.0% 3.5%
===== SIDA 8 =====
Kvartalsrapport oktober - december 2023
8
Key launches in the fourth quarter 2023
Zeekr 007
Zeekr 001 FR
Lynk & Co 08
Suzuki Swift
Xpeng X9
Mini Countryman
Lexus GX
Polestar 4
Toyota Century
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 oktober - december 2023
9
Financial development
Selected Income Statement items
Condensed income statement Fourth quarter Full year
(Dollars in millions, except per share data) 2023 2022 Change 2023 2022 Change
Net sales $2,751 $2,335 18% $10,475 $8,842 18%
Cost of sales (2,221) (1,937) 15% (8,654) (7,446) 16%
Gross profit 530 399 33% 1,822 1,396 30%
S,G&A (119) (105) 14% (498) (437) 14%
R,D&E, net (81) (65) 24% (425) (390) 8.8%
Amortization of intangibles (1) (0) 29% (2) (3) (24)%
Other income (expense), net (92) 2 n/a (207) 93 n/a
Operating income 237 230 3.1% 690 659 4.7%
Adjusted operating income1) 334 233 43% 920 598 54%
Financial and non-operating items, net (18) (16) 9.3% (77) (56) 39%
Income before taxes 219 214 2.7% 612 603 1.5%
Income taxes 8 (57) n/a (123) (178) (31)%
Net income $227 $156 45% $489 $425 15%
Earnings per share2) $2.71 $1.80 51% $5.72 $4.85 18%
Adjusted earnings per share1,2) $3.74 $1.83 105% $8.19 $4.40 86%
Gross margin 19.3% 17.1% 2.2pp 17.4% 15.8% 1.6pp
S,G&A, in relation to sales (4.3)% (4.5)% 0.2pp (4.8)% (4.9)% 0.2pp
R,D&E, net in relation to sales (3.0)% (2.8)% (0.2)pp (4.1)% (4.4)% 0.4pp
Operating margin 8.6% 9.8% (1.2)pp 6.6% 7.5% (0.9)pp
Adjusted operating margin1) 12.1% 10.0% 2.2pp 8.8% 6.8% 2.0pp
Tax Rate (3.7)% 26.8% (30.4)pp 20.1% 29.5% (9.4)pp
Other data
No. of shares at period-end in millions3) 82.6 86.2 (4.1)% 82.6 86.2 (4.1)%
Weighted average no. of shares in millions4) 83.5 86.5 (3.5)% 85.0 87.1 (2.4)%
Weighted average no. of shares in millions,
diluted4) 83.7 86.7 (3.4)% 85.2 87.2 (2.3)%
1) Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigati on settlement. See reconciliation table.
2) Assuming dilution when applicable and net of treasury shares. 3) Excluding dilution and net of treasury shares. 4) Net of treasury shares.
Fourth quarter 2023 development
Gross profit increased by $132 million, and the gross margin
increased by 2.2pp 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 $14 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
decreased from 4.5% to 4.3%.
R,D&E, net costs increased by $16 million compared to the
prior year, mainly due to lower engineering income and higher
costs for personnel. R,D&E, net, in relation to sales increased
from 2.8% to 3.0%.
Other income (expense), net was negative $92 million
compared to positive $2 million in the same period last year.
The difference was mainly related to higher capacity alignment
accruals in Q4 2023.
Operating income increased by $7 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 and higher capacity
alignment accruals.
Adjusted operating income* increased by $101 million
compared to the prior year, mainly due to higher gross profit,
partly offset by the higher costs for R,D&E, net and S,G&A.
Financial and non-operating items, net, was negative $18
million compared to negative $16 million a year earlier. The
difference was mainly due to increased interest expense as an
effect of higher debt and higher interest rates.
Income before taxes increased by $6 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 positive 3.7% compared to negative 26.8% in
the same period last year. Discrete tax items, net, decreased
the tax rate this quarter by 47.2pp. The decrease is mainly
related to a net deferred tax asset recognized in the fourth
quarter due to the transfer of certain assets and operations as
part of restructuring activities. Discrete tax items increased the
tax rate by 9.1pp in the same period last year.
Earnings per share, diluted increased by $0.91 compared to
a year earlier. The main drivers were $1.09 from lower income
taxes and $0.75 from higher adjusted operating income, partly
offset by $1.01 from higher capacity alignment accruals.
===== SIDA 10 =====
Kvartalsrapport oktober - december 2023
10
Full year 2023 development
Gross profit increased by $425 million, and the gross margin
increased by 1.6pp compared to the prior year. 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 higher costs for energy.
S,G&A costs increased by $61 million compared to the prior
year, mainly due to increased costs for personnel and projects.
S,G&A costs in relation to sales decreased from 4.9 % to 4.8%.
R,D&E, net costs increased by around $35 million compared to
the prior year, mainly due to higher costs for personnel and
lower engineering income. R,D&E, net, in relation to sales
decreased from 4.4% to 4.1%.
Other income (expense), net was negative $207 million
compared to positive $93 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 2023 was negatively impacted by
around $218 million in accrual for capacity alignment.
Operating income increased by $31 million compared to the
prior year, 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 $322 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 $77
million compared to negative $56 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 $9 million compared to the
prior year, mainly due to the higher operating income partly
offset by the increased interest expense.
Tax rate was 20.1% compared to 29.5% last year. Discrete
tax items, net, decreased the tax rate this year by 17.3pp. The
decrease is mainly related to a net deferred tax asset
recognized in the fourth quarter due to the transfer of certain
assets and operations as part of restructuring activities.
Discrete tax items, net decreased the tax rate last year by
2.5pp.
Earnings per share, diluted increased by $0.87 compared to
a year earlier. The main drivers behind the increase were
$2.51 from higher adjusted operating income and $1.31 from
lower income taxes, partly offset by $2.91 from higher
capacity alignment accruals and $0.18 from financial items.
===== SIDA 11 =====
Kvartalsrapport oktober - december 2023
11
Selected Balance Sheet and Cash Flow items
Selected Balance Sheet items Fourth quarter
(Dollars in millions) 2023 2022 Change
Trade working capital1) $1,232 $1,183 4.2%
Trade working capital in relation to sales2) 11.2% 12.7% (1.5)pp
- Receivables outstanding in relation to sales3) 20.0% 20.4% (0.4)pp
- Inventory outstanding in relation to sales4) 9.2% 10.4% (1.2)pp
- Payables outstanding in relation to sales5) 18.0% 18.1% (0.2)pp
Cash & cash equivalents 498 594 (16)%
Gross Debt6) 1,862 1,766 5.5%
Net Debt7) 1,367 1,184 16%
Capital employed8) 3,937 3,810 3.3%
Return on capital employed9) 24.4% 24.3% 0.1pp
Total equity $2,570 $2,626 (2.1)%
Return on total equity10) 36.0% 24.5% 11.5pp
Leverage ratio11) 1.2 1.4 (0.2)pp
1) Outstanding receivables and outstanding inventory less outstanding payables. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to
annualized quarterly sales. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relat ive to annualized quarterly sales. 5) Outstanding
payables relative to annualized quarterly sales. 6) Short - and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt -related
derivatives. Non-U.S. GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments,
relative to average capital employed. 10) Annualized net income relative to average total equity. 11) Net debt adjusted for p ension liabilities in relation to EBITDA. Non-U.S.
GAAP measure. See reconciliation table.
Selected Cash Flow items Fourth quarter Full year
(Dollars in millions) 2023 2022 Change 2023 2022 Change
Net income $227 $156 45% $489 $425 15%
Changes in operating working capital 243 226 7.4% 235 58 303%
Depreciation and amortization 97 90 7.7% 378 363 4.1%
Gain on divestiture of property - - - - (80) (100)%
Other, net (120) (10) n/a (119) (54) 123%
Operating cash flow 447 462 (3.4)% 982 713 38%
Capital expenditure, net (150) (165) (9.4)% (569) (485) 17%
Free cash flow1) $297 $297 (0.0)% $414 $228 81%
Cash conversion2) 131% 190% (59.2)pp 85% 54% 30.9pp
Shareholder returns
- Dividends paid (57) (57) (0.6)% (225) (224) 0.4%
- Share repurchases (150) (55) 173% (352) (115) 206%
Cash dividend paid per share $(0.68) $(0.66) 3.0% $(2.66) $(2.58) 3.3%
Capital expenditures, net in relation to sales 5.4% 7.1% (1.6)pp 5.4% 5.5% (0.1)pp
1) Operating cash flow less Capital expenditure, net. Non-U.S. GAAP measure. See enclosed reconciliation table. 2) Free cash flow relative to Net income. Non -U.S. GAAP
measure. See reconciliation table.
Fourth quarter 2023 development
Other, net was $120 million negative in the fourth quarter
2023 and $119 million negative for the full year 2023,
mainly related to a net deferred tax asset recognized in the
fourth quarter due to the transfer of certain assets and
operations as part of restructuring activities.
Operating cash flow decreased by $15 million to $447
million compared to the same period last year, mainly due
to that higher net income was more than offset by
increased deferred taxes.
Capital expenditure, net decreased by $15 million
compared to the same period the previous year. Capital
expenditure, net in relation to sales was 5.4% versus 7.1%
a year earlier.
Free cash flow* was $297 million, unchanged compared
to the same period prior year.
Cash conversion* defined as free cash flow* in relation to
net income, was 131% in the period.
===== SIDA 12 =====
Kvartalsrapport oktober - december 2023
12
Full year 2023 development
Trade working capital* increased by $49 million
compared to the same period last year, where the main
drivers were $291 million in higher receivables and $43
million in higher inventories, partly offset by $284 million in
higher accounts payable. In relation to sales, trade working
capital decreased from 12.7% to 11.2%.
Operating cash flow increased by $269 million, compared
to the same period last year, to $982 million, mainly due to
higher adjusted operating income and more positive
working capital effects.
Capital expenditure, net increased by $84 million, mainly
due to the impact on the prior year of $95 million from the
sale of property, plant and equipment in Japan. Capital
expenditure, net in relation to sales was 5.4% versus 5.5%
for the prior year period.
Free cash flow* was $414 million, compared to $228
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 85% in the period.
Net debt* was $1,367 million as of December 31, 2023,
which was $184 million higher than a year earlier.
Leverage ratio*. As of December 31, 2023, the Company
had a leverage ratio of 1.2x compared to 1.4x as of
December 31, 2022, as the 12 months trailing adjusted
EBITDA* increased more than the net debt* increased.
Liquidity position. As of December 31, 2023, our cash
balance was around $0.5 billion, and including committed,
unused loan facilities, our liquidity position was around
$1.6 billion.
Total equity as of December 31, 2023, decreased by $56
million compared to December 31, 2022. This was mainly
due to $226 million in dividend payments and stock
repurchases including taxes of $356 million, partly offset by
$489 million from net income and $20 million in positive
currency translation effects.
Headcount
Dec 31 Sep 30 Dec 31
2023 2023 2022
Headcount 70,300 71,200 69,100
Whereof: Direct headcount in manufacturing 52,400 52,900 50,600
Indirect headcount 17,800 18,200 18,400
Temporary personnel 11% 11% 11%
At December 31, 2023, total headcount (Full Time
Equivalent) increased by 1,200 compared to a year earlier.
The indirect workforce decreased by 600, or by 3%,
reflecting our structural reduction initiatives. The direct
workforce increased by 4%, reflecting that sales grew
organically by 18% in 2023 compared to a year earlier.
Compared to September 30, 2023, total headcount (FTE)
decreased 1%. Indirect headcount decreased by 400, or
by 2% while direct headcount decreased by 500, or by
1%.
===== SIDA 13 =====
Kvartalsrapport oktober - december 2023
13
2023 Sustainability Development
Sustainability is an integral part of our business strategy
and a an important driver for market differentiation and
stakeholder value creation. Our sustainability approach is
based on four focus areas, with broad ambitions and more
specific short-term targets defined for each area. We are a
signatory of the UN Global Compact and our work and
policies, such as our Code of Conduct, are aligned with
international frameworks such as the ILO core conventions
and the OECD Guidelines.
In 2023, our sustainability agenda continued to yield
results. Highlighting our core business of Saving More
Lives, we are pioneering the emerging area of equity in
vehicle safety by broadening test models to include more
body shapes and parameters such as age and gender.
Within health and safety, we saw continued improvement
on our KPIs. Focus during the year continued to be on
addressing high-risk areas, where we have global standards
and extensive training in place.
Renewable electricity and GHG emissions: Despite an
increase in total energy consumption as a result of
increased production, our efforts in particular in increasing
renewable electricity use and SF6 phase-out combined with
revised emission factors lead to a 17% decrease in GHG
emissions from own operations(Scope 1+2). Also this year
we carried out a climate survey to a large number of direct
material suppliers, to better understand their readiness to
meet our requirements and contribute to meeting Autoliv’s
net-zero climate ambitions.
Low carbon material: Work continued to assess and
increase the use of low-carbon materials in our products. As
an example, we made strong progress in increasing the
share of recycled magnesium.
Corporate compliance and integrity: We launched a
number of internal e-learning programs targeted at
emphasizing our policies and practices, and further
improving the skills of those working in areas with elevated
risk.
===== SIDA 14 =====
Kvartalsrapport oktober - december 2023
14
Other Items
• On October 30, 2023, Autoliv announced an update on
its ongoing initiatives to reduce its global headcount, to
include a downsizing of about 20%, or 320, of its
employees in France.
• On January 16, 2024, Autoliv announced upcoming
changes to the general terms and conditions, ISIN
code and Withholding Agent for the Swedish
Depository Receipts. The SDRs will receive a new
ISIN code as of February 29, 2024, with updated terms
and conditions. Skandinaviska Enskilda Banken (SEB)
will assume the role as Withholding Agent in its
capacity as issuer of Autoliv SDRs. As of the date the
new ISIN is effective, it will no longer be possible to
hold Autoliv SDRs as owner registered holdings in a
CSD account (Swedish: VP konto) with Euroclear
Sweden. Such owner registered holdings in CSD
accounts must be transferred to a custody account
with a bank, or securities institution, which holds the
role as nominee in Euroclear Sweden prior to February
29, 2024. If they are not transferred, such Autoliv
SDRs will automatically be converted to Autoliv
Common Stock which is denominated in U.S. dollars
and traded on the New York Stock Exchange.
• In Q4 2023, Autoliv repurchased and retired 1.51
million shares of common stock at an average price of
$99.21 per share under the Autoliv 2022-2024 stock
purchase program.
• The Company set May 10, 2024 as the date for its
2024 annual meeting of stockholders. The meeting will
be a hybrid meeting, conducted virtually and in-person
in the Detroit metropolitan area. Only the stockholders
of record at the close of business on March 15, 2024
will be entitled to be present and vote at the meeting.
Next Report
Autoliv intends to publish the quarterly earnings report
for the first quarter of 2024 on Friday, April 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 26 januari 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, October
2023 and January 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 15 =====
Kvartalsrapport oktober - december 2023
15
“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 Red Sea crisis; 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 16 =====
Kvartalsrapport oktober - december 2023
16
Consolidated Statements of Income
Fourth quarter Full year
(Dollars in millions, except per share data,
unaudited) 2023 2022 2023 2022
Airbags, Steering Wheels and Other1) $1,864 $1,581 $7,055 $5,807
Seatbelt products and Other1) 887 754 3,420 3,035
Total net sales $2,751 $2,335 $10,475 $8,842
Cost of sales (2,221) (1,937) (8,654) (7,446)
Gross profit $530 $399 $1,822 $1,396
Selling, general & administrative expenses (119) (105) (498) (437)
Research, development & engineering expenses,
net (81) (65) (425) (390)
Amortization of intangibles (1) (0) (2) (3)
Other income (expense), net (92) 2 (207) 93
Operating income $237 $230 $690 $659
Income from equity method investments 1 1 5 3
Interest income 3 2 13 6
Interest expense (25) (19) (93) (60)
Other non-operating items, net 3 0 (3) (5)
Income before income taxes $219 $214 $612 $603
Income taxes 8 (57) (123) (178)
Net income $227 $156 $489 $425
Less: Net income attributable to non-controlling
interest 0 0 1 2
Net income attributable to controlling interest $227 $156 $488 $423
Earnings per share2) $2.71 $1.80 $5.72 $4.85
1) Including Corporate sales. 2) Assuming dilution when applicable and net of treasury shares.
===== SIDA 17 =====
Kvartalsrapport oktober - december 2023
17
Consolidated Balance Sheets
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions, unaudited) 2023 2023 2023 2023 2022
Assets
Cash & cash equivalents $498 $475 $475 $713 $594
Receivables, net 2,198 2,179 2,189 2,106 1,907
Inventories, net 1,012 982 947 986 969
Prepaid expenses 173 180 166 166 160
Other current assets 93 63 120 90 84
Total current assets $3,974 $3,879 $3,898 $4,061 $3,714
Property, plant & equipment, net 2,192 2,067 2,047 2,045 1,960
Operating leases right-of-use assets 176 162 149 169 160
Goodwill 1,378 1,372 1,375 1,376 1,375
Intangible assets, net 7 6 6 7 7
Investments and other non-current assets 606 500 484 528 502
Total assets $8,332 $7,987 $7,959 $8,185 $7,717
Liabilities and equity
Short-term debt 538 590 481 577 711
Accounts payable 1,978 1,858 1,844 1,683 1,693
Accrued expenses 1,135 1,093 1,122 969 915
Operating lease liabilities - current 39 37 35 41 39
Other current liabilities 345 274 274 258 283
Total current liabilities $4,035 $3,851 $3,756 $3,529 $3,642
Long-term debt 1,324 1,277 1,290 1,601 1,054
Pension liability 159 152 152 159 154
Operating lease liabilities - non-current 135 125 113 127 119
Other non-current liabilities 109 96 91 128 121
Total non-current liabilities $1,728 $1,649 $1,645 $2,015 $1,450
Total parent shareholders’ equity 2,557 2,473 2,545 2,627 2,613
Non-controlling interest 13 13 13 14 13
Total equity $2,570 $2,486 $2,557 $2,641 $2,626
Total liabilities and equity $8,332 $7,987 $7,959 $8,185 $7,717
===== SIDA 18 =====
Kvartalsrapport oktober - december 2023
18
Consolidated Statements of Cash Flow
Fourth quarter Full year
(Dollars in millions, unaudited) 2023 2022 2023 2022
Net income $227 $156 $489 $425
Depreciation and amortization 97 90 378 363
Gain on divestiture of property - - - (80)
Other, net (120) (10) (119) (54)
Changes in operating working capital, net 243 226 235 58
Net cash provided by operating activities $447 $462 $982 $713
Expenditures for property, plant and equipment (152) (168) (572) (585)
Proceeds from sale of property, plant and equipment 3 2 4 101
Net cash used in investing activities $(150) $(165) $(569) $(485)
Net cash before financing1) $297 $297 $414 $228
Decrease (increase) in short term debt (54) (25) 61 167
Increase in long-term debt 2 - 559 -
Decrease in long-term debt - (4) (533) (357)
Dividends paid (57) (57) (225) (224)
Share repurchases (150) (55) (352) (115)
Common stock options exercised 0 0 1 0
Dividend paid to non-controlling interests (0) (1) (1) (2)
Net cash used in financing activities $(258) $(142) $(490) $(531)
Effect of exchange rate changes on cash (16) (44) (20) (73)
Increase (decrease) in cash and cash equivalents $23 $111 $(96) $(375)
Cash and cash equivalents at period-start 475 483 594 969
Cash and cash equivalents at period-end $498 $594 $498 $594
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 19 =====
Kvartalsrapport oktober - december 2023
19
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 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.
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2023 2023 2023 2023 2022
Receivables, net $2,198 $2,179 $2,189 $2,106 $1,907
Inventories, net 1,012 982 947 986 969
Accounts payable (1,978) (1,858) (1,844) (1,683) (1,693)
Trade Working capital $1,232 $1,303 $1,292 $1,409 $1,183
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.
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2023 2023 2023 2023 2022
Short-term debt $538 $590 $481 $577 $711
Long-term debt 1,324 1,277 1,290 1,601 1,054
Total debt $1,862 $1,867 $1,771 $2,179 $1,766
Cash & cash equivalents (498) (475) (475) (713) (594)
Debt issuance cost/Debt-related derivatives, net 3 (17) 4 12 12
Net debt $1,367 $1,375 $1,299 $1,477 $1,184
Dec 31 Dec 31 Dec 31
(Dollars in millions) 2021 2020 2019
Short-term debt $346 $302 $368
Long-term debt 1,662 2,110 1,726
Total debt $2,008 $2,411 $2,094
Cash & cash equivalents (969) (1,178) (445)
Debt issuance cost/Debt-related derivatives, net 13 (19) 0
Net debt $1,052 $1,214 $1,650
===== SIDA 20 =====
Kvartalsrapport oktober - december 2023
20
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 fo r 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.
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2023 2023 2023 2023 2022
Net debt1) $1,367 $1,375 $1,299 $1,477 $1,184
Pension liabilities 159 152 152 159 154
Debt per the Policy $1,527 $1,527 $1,451 $1,636 $1,338
Net income2) 489 418 390 416 425
Income taxes2) 123 188 168 176 178
Interest expense, net2, 3) 80 75 67 60 54
Other non-operating items, net2) 3 5 1 4 5
Income from equity method investments2) (5) (4) (4) (4) (3)
Depreciation and amortization of intangibles2) 378 371 363 359 363
Adjustments2), 4) 230 136 127 10 (61)
EBITDA per the Policy (Adjusted EBITDA) $1,297 $1,189 $1,112 $1,021 $961
Leverage ratio 1.2 1.3 1.3 1.6 1.4
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 the Andrews litigation settlement. See Items Affecting Comparability below.
===== SIDA 21 =====
Kvartalsrapport oktober - december 2023
21
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.
Fourth quarter Full year
(Dollars in millions) 2023 2022 2023 2022
Net income $227 $156 $489 $425
Changes in operating working capital 243 226 235 58
Depreciation and amortization 97 90 378 363
Gain on divestiture of property - - - (80)
Other, net (120) (10) (119) (54)
Operating cash flow $447 $462 $982 $713
Capital expenditure, net (150) (165) (569) (485)
Free cash flow1) $297 $297 $414 $228
Net cash before financing $297 $297 $414 $228
Cash conversion2) 131% 190% 85% 54%
1) Operating cash flow less Capital expenditure, net. 2) Free cash flow relative to Net income.
Full year Full year Full year
(Dollars in millions) 2021 2020 2019
Net income $437 $188 $463
Changes in operating assets and liabilities (63) 277 47
Depreciation and amortization 394 371 351
Other, net1) (15) 13 (220)
Operating cash flow $754 $849 $641
EC antitrust payment - - (203)
Operating cash flow excl antitrust $754 $849 $844
Capital expenditure, net (454) (340) (476)
Free cash flow2) $300 $509 $165
Free cash flow excl antitrust payment3) $300 $509 $368
Net cash before financing $300 $509 $165
Cash conversion4) 69% 270% 36%
Cash conversion excl antitrust5) 69% 270% 79%
1) Including EC antitrust payment 2019. 2) Operating cash flow less Capital expenditure, net. 3) For 2019, Operating cash flow excluding EC antitrust payment less Capital
expenditures, net. 4) Free cash flow relative to Net income. 5) For 2019, Free cash flow excluding EC antitrust payment relat ive to Net income.
===== SIDA 22 =====
Kvartalsrapport oktober - december 2023
22
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.
Fourth quarter 2023 Fourth 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 $237 $97 $334 $230 $3 $233
Operating margin 8.6% 3.5% 12.1% 9.8% 0.1% 10.0%
Income before taxes 219 97 316 214 3 217
Net income attributable to controlling interest 227 86 313 156 2 158
Return on capital employed2) 24.4% 8.5% 32.9% 24.3% 0.6% 24.9%
Return on total equity3) 36.0% 10.6% 46.6% 24.5% 0.7% 25.2%
Earnings per share4) $2.71 $1.03 $3.74 $1.80 $0.02 $1.83
1) Effects from capacity alignments and antitrust related matters. 2) Annualized operating income and income from equity method investments, relative to average capi tal
employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares.
Full year 2023 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 $690 $230 $920 $659 $(61) $598
Operating margin 6.6% 2.2% 8.8% 7.5% (0.7)% 6.8%
Income before taxes 612 230 842 603 (61) 542
Net income attributable to controlling interest 488 210 697 423 (39) 384
Capital employed 3,937 210 4,147 3,810 (39) 3,771
Return on capital employed2) 17.7% 5.3% 23.1% 17.5% (1.5)% 16.0%
Return on total equity3) 19.0% 7.2% 26.2% 16.3% (1.3)% 15.0%
Earnings per share4, 5) $5.72 $2.46 $8.19 $4.85 $(0.45) $4.40
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. 4) Assuming dilution and net of treasury shares.
===== SIDA 23 =====
Kvartalsrapport oktober - december 2023
23
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
(Dollars in millions, except per share data) Reported
U.S. GAAP
Adjust-
ments1)
Non-U.S.
GAAP
Operating income $726 $49 $774
Operating margin, % 8.5% 0.6% 9.1%
1) Costs for capacity alignments and antitrust related matters .
Items included in non-U.S. GAAP adjustments Fourth quarter 2023 Fourth quarter 2022
Adjustment
Million
Adjustment
Per share
Adjustment
Million
Adjustment
Per share
Capacity alignments $96 1.13 $3 $0.04
Antitrust related matters 1 0.01 - -
Total adjustments to operating income $97 $1.14 $3 $0.04
Tax on non-U.S. GAAP adjustments1) (10) (0.12) (1) (0.00)
Total adjustments to net income $86 1.01 $2 $0.02
Average number of shares outstanding - diluted2) 85.2 87.2
Annualized adjustment on return on capital employed 388 12
Adjustment on return on capital employed 8.5% 0.6%
Annualized adjustment on return on total equity $346 $8
Adjustment on return on total equity 10.6% 0.7%
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 Full year 2023 Full year 2022
Adjustment
Million
Adjustment
Per share
Adjustment
Million
Adjustment
Per share
Capacity alignments $218 2.56 $(61) $(0.70)
The Andrews litigation settlement 8 0.09 - -
Antitrust related matters 4 0.05 - -
Total adjustments to operating income $230 $2.70 $(61) $(0.70)
Tax on non-U.S. GAAP adjustments1) (20) (0.24) 22 0.25
Total adjustments to net income $210 2.46 $(39) $(0.45)
Average number of shares outstanding - diluted2) 85.2 87.2
Annualized adjustment on return on capital employed 230 (61)
Adjustment on return on capital employed 5.3% (1.5)%
Annualized adjustment on return on total equity $210 $(39)
Adjustment on return on total equity 7.2% (1.3)%
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 24 =====
Kvartalsrapport oktober - december 2023
24
(Dollars in millions, except per share data, unaudited) 2023 2022 2021 2020 2019
Sales and Income
Net sales $10,475 $8,842 $8,230 $7,447 $8,548
Airbag sales1) 7,055 5,807 5,380 4,824 5,676
Seatbelt sales 3,420 3,035 2,850 2,623 2,871
Operating income 690 659 675 382 726
Net income attributable to controlling interest 488 423 435 187 462
Earnings per share – basic 5.74 4.86 4.97 2.14 5.29
Earnings per share – assuming dilution2) 5.72 4.85 4.96 2.14 5.29
Gross margin3) 17.4% 15.8% 18.4% 16.7% 18.5%
S,G&A in relation to sales (4.8)% (4.9)% (5.3)% (5.2)% (4.7)%
R,D&E net in relation to sales (4.1)% (4.4)% (4.7)% (5.0)% (4.7)%
Operating margin4) 6.6% 7.5% 8.2% 5.1% 8.5%
Adjusted operating margin5,6) 8.8% 6.8% 8.3% 6.5% 9.1%
Balance Sheet
Trade working capital7) 1,232 1,183 1,332 1,366 1,417
Trade working capital in relation to sales8) 11.2% 12.7% 15.7% 13.6% 16.2%
Receivables outstanding in relation to sales9) 20.0% 20.4% 20.0% 18.1% 18.6%
Inventory outstanding in relation to sales10) 9.2% 10.4% 9.2% 7.9% 8.5%
Payables outstanding in relation to sales11) 18.0% 18.1% 13.5% 12.5% 10.8%
Total equity 2,570 2,626 2,648 2,423 2,122
Total parent shareholders’ equity per share 30.93 30.30 30.10 27.56 24.19
Current assets excluding cash 3,475 3,119 2,705 3,091 2,557
Property, plant and equipment, net 2,192 1,960 1,855 1,869 1,816
Intangible assets (primarily goodwill) 1,385 1,382 1,395 1,412 1,410
Capital employed 3,937 3,810 3,700 3,637 3,772
Net debt6) 1,367 1,184 1,052 1,214 1,650
Total assets 8,332 7,717 7,537 8,157 6,771
Long-term debt 1,324 1,054 1,662 2,110 1,726
Return on capital employed12) 17.7% 17.5% 18.3% 10.0% 20.0%
Return on total equity13) 19.0% 16.3% 17.1% 9.0% 23.0%
Total equity ratio 31% 34% 35% 30% 31%
Cash flow and other data
Operating Cash flow 982 713 754 849 641
Depreciation and amortization 378 363 394 371 351
Capital expenditures, net 569 485 454 340 476
Capital expenditures, net in relation to sales 5.4% 5.5% 5.5% 4.6% 5.6%
Free Cash flow6,14) 414 228 300 509 165
Cash conversion6,15) 85% 54% 69% 270% 36%
Direct shareholder return16) 577 339 165 54 217
Cash dividends paid per share 2.66 2.58 1.88 0.62 2.48
Number of shares outstanding (millions)17) 82.6 86.2 87.5 87.4 87.2
Number of employees, December 31 62,900 61,700 55,900 61,000 58,900
1) Including steering wheels, inflators and initiators. 2) Assuming dilution and net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5)
Excluding effects from capacity alignments, antitrust related matters and Andrews litigation settlement. 6) Non -US GAAP measure, for reconciliation see tables above. 7)
Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding paya bles relative to
annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outst anding inventory relative to annualized fourth quarter sales.
11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method inve stments, relative to average capital
employed. 13) Income relative to average total equity. 14) Operating cash flow less Capital expenditures, net. 15) Free cash flow relative to Net income. 16) Dividends paid
and Shares repurchased. 17) At year end, excluding dilution and net of treasury shares.