FULLTEXT DEL 1 AV 1
Kvartalsrapport Q4 2024
===== SIDA 1 =====
Kvartalsrapport
oktober - december 2024
Stockholm, Sverige, 31 januari, 2025
(NYSE: ALV och SSE: ALIV.sdb)
===== SIDA 2 =====
Financial Report October - December 2024
1
Kv4 2024: Rekord för rörelseresultat, marginal och vinst/aktie
Finansiell sammanfattning Kv4
$2 616 miljoner försäljning
4,9% försäljningsminskning
3,3% organisk försäljningsminskning*
13,5% rörelsemarginal
13,4% justerad rörelsemarginal*
$3,10 vinst/aktie efter utspädning, 14% ökning
$3,05 justerad vinst/aktie*, 19% minskning
Utsikter för helåret 2025
Cirka 2% organisk försäljningsökning
Cirka 2% negativ valutaeffekt på försäljningen
Cirka 10-10,5% justerad rörelsemarginal
Cirka $1,2 miljard 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 2024
Fjärde kvartalets försäljning minskade organiskt* med 3,3%, vilket var 3,7 procentenheter lägre än den globala
fordonsproduktionens ökning med 0,4% (S&P Global jan 2025). 4 procentenheter av den avvikelsen beräknas komma från stora
skillnader i fordonsproduktionstillväxt mellan olika regioner och mellan olika kunder. Vi växte snabbare än fordonsproduktionen i Asien
exkl. Kina och i Europa, främst pga produktlanseringar och positiv prissättning. Vår försäljning till inhemska kinesiska fordonstillverkare
växte med 20%, nästan lika mycket som deras fordonsproduktion växte. Den negativa fordonsproduktionsmixen i Kina, där modeller
med lägre säkerhetsinnehåll växte starkt medan modeller med högre säkerhetsinnehåll minskade, ledde till att vi underpresterade
försäljningsmässigt i Kina. Vi förväntar oss att vår starka orderingång med inhemska kinesiska fordonstillverkare kommer leda till en
rekordnivå av nya lanseringar i Kina, och därmed markant förbättra vår prestation i Kina 2025. Viktiga kunders minskning av
återförsäljarnas lager resulterade i att vi underpresterade i Amerika.
Lönsamheten förbättrades, med ett flertal nya rekord främst pga framgånsrikt genomförande av kostnadsminskningar och
kostnadskompensation. Personalstyrkan minskade med cirka 7%. Rörelseresultatet nådde nytt rekord på 353 MUSD och
rörelsemarginalen nådde nytt rekord på 13,5%. Justerat rörelseresultat* var även det nytt rekord på 349 MUSD. Även justerad rörelse-
marginal på 13,4% är nytt rekord. Avkastning på sysselsatt kapital var 35,8% och justerad avkastning på sysselsatt kapital* var 35,2%.
Operativt kassaflöde var 420 MUSD, vilket för helåret blev ett nytt rekord på 1 059 MUSD. Fritt operativt kassaflöde* i kvartalet var
288 MUSD jämfört med 297 MUSD föregående år. Skuldsättningskvoten* var 1.2x, fortsatt väl inom målintervallet. I kvartalet betalades
en utdelning på 0,70 USD per aktie, och 1,04 milljoner aktier återköptes och makulerades.
*För ej U.S. GAAP, se jämförelsetabell.
Nyckeltal
MUSD, förutom aktiedata Kv4 2024 Kv4 2023 Förändring År 2024 År 2023 Förändring
Försäljning $2 616 $2 751 -4,9% $10 390 $10 475 -0,8%
Rörelseresultat 353 237 49% 979 690 42%
Justerat rörelseresultat1) 349 334 4,7% 1 007 920 9,5%
Rörelsemarginal 13,5% 8,6% 4,9 9,4% 6,6% 2,8
Justerat rörelseresultat1) 13,4% 12,1% 1,2 9,7% 8,8% 0,9
Vinst/aktie efter utspädning 3,10 2,71 14% 8,04 5,72 40%
Justerad vinst/aktie efter utspädning1) 3,05 3,74 -19% 8,32 8,19 1,6%
Operativt kassaflöde 420 447 -6,0% 1 059 982 7,8%
Avkastning på sysselsatt kapital2) 35,8% 24,4% 11 25,0% 17,7% 7,2
Justerad avkastning på sysselsatt kapital1,2) 35,2% 32,9% 2,3 25,6% 23,1% 2,5
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
Det glädjer mig att vi levererade stark
lönsamhet och kassaflöde i fjärde kvartalet.
Vi nådde nya rekord i kvartalet för rörelse-
resultat, rörelsemarginal och vinst/aktie. För
helåret hade vi rekordhögt operativt kassa-
flöde. Jag är även nöjd med att vi genererade
en hög avkastning på sysselsatt kapital för
kvartalet och året och att vi presterade så
säkerhetsinnehåll, vilket ledde till att försäljningen utvecklades sämre
än fordonsproduktionen. Vi förväntar oss ett rekordstort antal
lanseringar i Kina 2025 och därmed en markant förbättring av vår
utveckling på den kinesiska marknaden 2025.
Vi vann flera strategiskt viktiga ordrar med nya fordonstillverkare
2024, även om totalmarknaden för nya ordrar var på en låg nivå.
Detta pga teknologisk och geopolitisk osäkerhet med följden att
beställningarna av flera stora plattformar flyttades in i 2025.
Vi förväntar oss att 2025 blir ett utmanande år för bilindustrin med
lägre fordonsproduktion och geopolitiska risker. Den osäkerheten gör
det svårt att förutspå hur förutsättningarna för affärsmiljö och
fordonsindustri kommer utvecklas 2025. Vårt fortsatta fokus på
effektivitet förväntas trots detta bidra till ytterligare förbättring av vår
lönsamhet mot våra finansiella mål på medellång sikt. Fortsatt starkt
kassaflöde och balansräkning bör ge en solid bas för vårt fokus på
en hög avkastning till våra aktieägare.
Jag ser fram mot vår kapitalmarknadsdag, planerad till 3e juni, 2025,
då vi avser presentera vår syn på vår väg framåt. Mer detaljer
kommer kommuniceras inom kort.
starkt trots lägre försäljning pga sämre fordonsproduktionsmix.
Vår starka utveckling i både kvartalet och året var främst ett
resultat av vår strikta kostnadskontroll. Vårt strukturella kostnads-
reduktionsprogram möjliggjorde en minskning av indirekt arbets-
styrka med 1 400 sedan Kv1 2023. Vi accelererade våra operativa
effektivitetsförbättringar, delvis tack vare att kundavropen blev
mer pålitliga, vilket bidrog till en minskning av direkt arbetsstyrka
med 9% på ett år. Vi nådde uppgörelser med alla stora kunder
angående kompensation för den höga inflationen, vilket bidrog till
det starka resultatet för kvartalet och året.
I Kina drevs fordonsproduktionen av modeller med lågt
===== SIDA 3 =====
Financial Report October - December 2024
2
Full year 2025 guidance
In addition to the assumptions noted below, our full year 2025 guidance is mainly based on our customer call-offs, the
achievement of our targeted cost compensation effects and no material changes to tariffs or trade restrictions.
Full year 2025 Guidance
Organic sales growth Around 2%
Adjusted operating margin1) Around 10-10.5%
Operating cash flow2) Around $1.2 billion
Capex, net % of sales Around 5%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.
Full year 2025 Assumptions
LVP Growth Around 0.5%
negative
FX impact on net sales Around 2% negative
Tax rate3) Around 28%
3) Excluding unusual tax 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 31, 2025. 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 =====
Financial Report October - December 2024
3
Business and market condition update
Supply Chain
In the fourth quarter, global LVP increased by 0.4% year-over-year (according to S&P Global Jan 2025). Call-off volatility
improved slightly compared to a year earlier and compared to the third quarter of 2024, although it remains higher than
pre-pandemic levels. Low customer demand visibility and changes to customer call-offs with short notice, although
improved, continued to have a negative impact on our production efficiency and profitability in the quarter. We expect call -
off volatility in 2025 on average to be slightly lower than it was in 2024 but still remain higher than pre-pandemic levels.
Inflation
In the fourth 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. In 2024 we
successfully received inflation compensation from all of our major customers. Raw material price changes had a slight
negative impact on our profitability during the fourth quarter. We expect raw material prices in 2025 to increase slightly fo r
the full year. We expect cost pressure from inflation to moderate in 2025, but we still expect some pressure coming
mainly from labor, especially in Europe and the Americas. We continue to execute on productivity and cost reduction
initiatives to offset these cost pressures.
Geopolitical risks, tariffs and other matters
Geopolitical uncertainties will continue to create a challenging operating environment. We also see a likelihood that there
will be new or increased tariffs or other related trade restrictions imposed in 2025 that may impact our operations. We
continue to closely monitor the situation and are prepared to remain agile in responding to any such developments.
This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, 2024, October 20 24 and January 2025. All rights reserved.
===== SIDA 5 =====
Financial Report October - December 2024
4
Key Performance Trends
Net Sales Development by region Operating and adjusted* operating income and margins
Capex, net 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, defined as Expenditures for
Property, Plant and Equipment less Proceeds from sale of Property,
Plant and Equipment.
D&A: Depreciation and Amortization.
Cash conversion*: Free operating cash flow* in relation to net
income. Free operating cash flow defined as operating cash flow
less capital expenditure, net.
===== SIDA 6 =====
Financial Report October - December 2024
5
Consolidated sales development
Fourth quarter 2024
Consolidated sales Fourth quarter Reported change Currency Organic
(Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $1,760 $1,864 (5.6)% (1.5)% (4.1)%
Seatbelt Products and Other2) 856 887 (3.5)% (1.9)% (1.6)%
Total $2,616 $2,751 (4.9)% (1.6)% (3.3)%
Americas $786 $861 (8.7)% (4.3)% (4.4)%
Europe 715 755 (5.3)% (0.1)% (5.2)%
China 587 617 (4.8)% 0.4% (5.2)%
Asia excl. China 527 519 1.7% (1.8)% 3.5%
Total $2,616 $2,751 (4.9)% (1.6)% (3.3)%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales declined organically* by 4.1% in the quarter. The
largest contributor to the decrease was steering wheels,
passenger airbags, driver airbags and knee airbags, partly
offset by growth in center airbags.
Sales by product - Seatbelt Products and Other
Sales for Seatbelt Products and Other declined organically*
by 1.6% in the quarter. Sales declined organically in China
and Europe while sales increased in Asia excluding China
with the Americas being virtually unchanged.
Sales by region
Our global organic sales* decreased by 3.3% compared to
the global LVP increase of 0.4% (according to S&P Global,
Jan 2025). The underperformance was mainly driven by a
negative regional and model LVP mix that we estimate
contributed to about 4pp underperformance. This was
particularly accentuated in China while dealer inventory
reductions by major customers explain most of our
underperformance in Americas. Our organic sales growth
underperformed LVP growth by 13pp in China and by 2.6pp
in Americas while we outperformed by 7.0pp in Asia
excluding China and by 3.0pp in Europe.
LVP growth in China was heavily tilted to domestic OEMs
with typically lower safety content. LVP for global OEMs
declined by 8.3% while it increased by 24% for domestic
OEMs. Autoliv's sales to domestic OEMs increased by 20%
in the quarter. We expect that our strong order intake with
domestic OEMs will lead to a record high number of new
launches and significantly improve Autoliv's sales
performance in China in 2025.
Q4 2024 organic growth* Americas Europe China Asia excl. China Global
Autoliv (4.4)% (5.2)% (5.2)% 3.5% (3.3)%
Main growth drivers Ford, Honda, Toyota Renault, VW, Ford Geely, Chery, Changan Suzuki, Toyota, Subaru Renault, Geely, Toyota
Main decline drivers Stellantis, EV OEM,
Rivian,
Stellantis, Mercedes,
Volvo
Honda, GM, Lixiang
auto Honda, Mazda, Ford Stellantis, Honda, Volvo
Light vehicle production development
Change compared to the same period last year according to S&P Global
Q4 2024 Americas Europe China Asia excl. China Global
LVP (Jan 2025) (1.8)% (8.2)% 8.3 % (3.5)% 0.4%
LVP (Oct 2024) (3.1)% (8.9)% (1.6)% (4.7)% (4.0)%
===== SIDA 7 =====
Financial Report October - December 2024
6
Consolidated sales development
Full year 2024
Consolidated sales Full year Reported change Currency Organic
(Dollars in millions) 2024 2023 (U.S. GAAP) effects1) change*
Airbags, Steering Wheels and Other2) $7,023 $7,055 (0.5)% (1.2)% 0.7%
Seatbelt Products and Other2) 3,367 3,420 (1.6)% (1.3)% (0.2)%
Total $10,390 $10,475 (0.8)% (1.2)% 0.4%
Americas $3,424 $3,526 (2.9)% (1.2)% (1.7)%
Europe 2,946 2,877 2.4% 1.0% 1.4%
China 2,010 2,105 (4.5)% (1.3)% (3.2)%
Asia excl. China 2,010 1,968 2.2% (4.4)% 6.6%
Total $10,390 $10,475 (0.8)% (1.2)% 0.4%
1) Effects from currency translations. 2) Including Corporate sales.
Sales by product – Airbags, Steering Wheels and
Other
Sales grew organically* by 0.7% in the period. The largest
contributor to the increase was steering wheels, followed by
center airbags, side airbags, inflatable curtains and inflators,
partly offset by decreases for passenger airbags, knee
airbags and driver airbags.
Sales by product - Seatbelt Products and Other
Sales for Seatbelt Products and Other declined organically*
by 0.2% in the period. Sales decreased organically in China
and Europe, while it increased in Asia excluding China and
the Americas.
Sales by region
Our global organic sales* increased by 0.4% compared to
the global LVP decrease of 1.2% (according to S&P Global,
Jan 2025). The 1.6pp 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 11pp
in Asia excluding China and by 6.1pp in Europe while it was
in line with LVP growth in Americas. Our sales growth
underperformed LVP growth by 7.4pp in China. LVP growth
in China was tilted to domestic OEMs with typically lower
safety content. Domestic OEM LVP in China grew by 18%
while LVP declined by 9.5% for global OEMs in China in
2024. Autoliv's sales to domestic OEMs increased by 24% in
2024.
FY 2024 organic growth* Americas Europe China Asia excl. China Global
Autoliv (1.7)% 1.4% (3.2)% 6.6% 0.4%
Main growth drivers Toyota, Honda, VW Renault, Mercedes,
Ford Geely, Chery, Changan Hyundai, Suzuki, Tata Geely, Mercedes,
Renault
Main decline drivers Stellantis, EV OEM,
Nissan Stellantis, Volvo, Fisker GM, Honda, EV OEM Nissan, Mazda, Renault Stellantis, EV OEM, GM
Light vehicle production development
Full year 2024 Americas Europe China Asia excl. China Global
LVP (Jan 2025) (1.7)% (4.7)% 4.2 % (4.6)% (1.2)%
LVP (Jan 2024) 1.0% (2.0)% (0.5)% (1.6)% (0.8)%
===== SIDA 8 =====
Financial Report October - December 2024
7
Key launches in the fourth quarter 2024
Toyota 4Runner Nissan Murano Suzuki DZIRE
Honda Ye S7
Citroen C3 Aircross
Honda Amaze
Acura ADX
Skoda Kylaq
Hyundai Ioniq 9
Lynk&Co Z20 Zeekr Mix Nio ET9
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 =====
Financial Report October - December 2024
8
Financial development
Selected Income Statement items
Condensed income statement Fourth quarter Full year
(Dollars in millions, except per share data) 2024 2023 Change 2024 2023 Change
Net sales $2,616 $2,751 (4.9)% $10,390 $10,475 (0.8)%
Cost of sales (2,065) (2,221) (7.0)% (8,463) (8,654) (2.2)%
Gross profit 551 530 3.8% 1,927 1,822 5.8%
S,G&A (132) (120) 9.6% (530) (500) 6.0%
R,D&E, net (74) (81) (9.5)% (398) (425) (6.3)%
Other income (expense), net 8 (92) n/a (19) (207) (91)%
Operating income 353 237 49% 979 690 42%
Adjusted operating income1) 349 334 4.7% 1,007 920 9.5%
Financial and non-operating items, net (32) (18) 82% (105) (77) 35%
Income before taxes 321 219 47% 875 612 43%
Income taxes (78) 8 n/a (227) (123) 84%
Net income $243 $227 7.0% $648 $489 32%
Earnings per share - diluted2) $3.10 $2.71 14% $8.04 $5.72 40%
Adjusted earnings per share - diluted1,2) $3.05 $3.74 (19)% $8.32 $8.19 1.6%
Gross margin 21.0% 19.3% 1.8pp 18.5% 17.4% 1.2pp
S,G&A, in relation to sales (5.0)% (4.4)% (0.7)pp (5.1)% (4.8)% (0.3)pp
R,D&E, net in relation to sales (2.8)% (3.0)% 0.1pp (3.8)% (4.1)% 0.2pp
Operating margin 13.5% 8.6% 4.9pp 9.4% 6.6% 2.8pp
Adjusted operating margin1) 13.4% 12.1% 1.2pp 9.7% 8.8% 0.9pp
Tax Rate 24.3% (3.7)% 28pp 26.0% 20.1% 5.9pp
Other data
No. of shares at period-end in millions2) 77.7 82.6 (6.0)% 77.7 82.6 (6.0)%
Weighted average no. of shares in millions, basic2) 78.3 83.5 (6.3)% 80.2 85.0 (5.7)%
Weighted average no. of shares in millions, diluted2) 78.5 83.7 (6.2)% 80.4 85.2 (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)
Net of treasury shares.
Fourth quarter 2024 development
Gross profit increased by $20 million, and the gross margin
increased by 1.8pp compared to the prior year. The
improvement was mostly due to that improved customer call-
off accuracy supported an improved operational efficiency
with around $33 million in lower costs for labor, premium
freight and waste and scrap. The gross profit increase was
also, to a lesser extent, supported by lower costs related to
recalls, insurance and materials. The main offsetting factor to
the improvement were negative effects of lower sales.
S,G&A costs increased by $12 million compared to the prior
year, mainly due to minor cost increases for several items,
including personnel, insurance and IT expenses. S,G&A costs
in relation to sales increased from 4.4% to 5.0%.
R,D&E, net costs decreased by $8 million compared to the
prior year, with the majority of the improvement coming from
higher engineering income. The decrease was also supported
to a smaller extent from several items, mainly lower personnel
costs and lower costs for samples, prototypes and tools.
R,D&E, net, in relation to sales decreased from 3.0% to 2.8%.
Other income (expense), net was positive $8 million,
compared to negative $92 million in the same period last year.
Almost all of the change was due to lower capacity alignment
accruals compared to the prior year.
Operating income increased by $117 million compared to
the prior year, due to improvement in Other income
(expense), higher gross profit, lower costs for R,D&E, net,
partly offset by higher costs for S,G&A, as outlined above.
Adjusted operating income* increased by $16 million
compared to the prior year, due to the higher gross profit,
and lower costs for R,D&E, net, partly offset by higher costs
for S,G&A, as outlined above.
Financial and non-operating items, net, was negative $32
million compared to negative $18 million a year earlier. The
increase in costs was mainly due to increased expenses for
non-operating items.
Income before taxes increased by $102 million compared
to the prior year, mainly due to the higher operating income,
partly offset by higher costs for financial and non-operating
items.
Tax rate was 24.3% compared to negative 3.7% in the prior
year. The higher tax rate was mainly due to discrete tax
items, net, in the fourth quarter of 2023 that decreased the
tax rate by 47.2pp. That decrease was mainly related to a
net deferred tax asset recognized in the fourth quarter of
2023 due to the transfer of certain assets and operations as
part of restructuring activities. Discrete tax items, net,
decreased the tax rate in the fourth quarter of 2024 by 8.4pp.
Earnings per share, diluted increased by $0.38 compared
to the prior year. The main drivers were $1.18 from higher
operating income and $0.19 from lower number of
outstanding shares, diluted, partly offset by $0.90 from
higher taxes and $0.10 from higher financial and non-
operating items, net.
===== SIDA 10 =====
Financial Report October - December 2024
9
Full year 2024 development
Gross profit increased by $106 million, and the gross margin
increased by 1.2pp compared to the prior year. The
improvement was mostly due to that better customer call-off
accuracy supported an improved operational efficiency with
around $82 million in lower costs for labor, premium freight
and waste and scrap. The gross profit increase was also, to a
lesser extent, supported by positive effects from lower
material costs. The main offsetting factor to the improvement
were negative effects of lower sales.
S,G&A costs increased by $30 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 4.8% to 5.1%.
R,D&E, net costs decreased by $27 million compared to the
prior year. Higher engineering income explained almost the
entire improvement. R,D&E, net, in relation to sales
decreased from 4.1% to 3.8%.
Other income (expense), net was negative $19 million
compared to negative $207 million last year. Almost all of the
change was due to lower capacity alignment accruals
compared to the prior year.
Operating income increased by $290 million compared to
the prior year, mainly due to lower capacity alignment
accruals, and the increase in gross profit, as outlined above.
Adjusted operating income* increased by $87 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
$105 million compared to negative $77 million a year earlier.
The change was mainly due to increased interest expense
as the result of higher debt and higher interest rates, and
increased expenses for non-operating items.
Income before taxes increased by $263 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 26.0% compared to 20.1% in the same period
last year. The higher tax rate was mainly due to discrete tax
items, net, in the prior year decreased the tax rate by
17.3pp. Discrete tax items, net, decreased the tax rate in
2024 by 4.8pp. In addition, country mix impacted the 2024
tax rate favorably by 6.1pp compared to the prior year.
Earnings per share, diluted increased by $2.32 compared
to a year earlier. The main drivers were $2.83 from higher
operating income and $0.45 from lower number of
outstanding shares, diluted, partly offset by $0.76 from
higher taxes and $0.21 from higher financial and non-
operating items, net.
===== SIDA 11 =====
Financial Report October - December 2024
10
Selected Cash Flow and Balance Sheet items
Selected Cash Flow items Fourth quarter Full year
(Dollars in millions) 2024 2023 Change 2024 2023 Change
Net income $243 $227 7.0% $648 $489 32%
Depreciation and amortization 98 97 1.7% 387 378 2.5%
Other, net (29) (120) (76)% (29) (119) (76)%
Changes in operating working capital 107 243 (56)% 53 235 (77)%
Operating cash flow 420 447 (6.0)% 1,059 982 7.8%
Capital expenditure, net1) (132) (150) (12)% (563) (569) (1.0)%
Free operating cash flow2) $288 $297 (3.0)% $497 $414 20%
Cash conversion3) 118% 131% (12)pp 77% 85% (7.9)pp
Shareholder returns
- Dividends paid (55) (57) (3.5)% (219) (225) (3.0)%
- Share repurchases (102) (150) (32)% (552) (352) 57%
Cash dividend paid per share $(0.70) $(0.68) 2.6% $(2.74) $(2.66) 2.9%
Capital expenditures, net in relation to sales 5.0% 5.4% (0.4)pp 5.4% 5.4% (0.0)pp
1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash flow less Capital expenditure, net.
Non-U.S. GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-U.S. GAAP measure. See reconciliation table.
Selected Balance Sheet items Fourth quarter
(Dollars in millions) 2024 2023 Change
Trade working capital1) $1,115 $1,232 (9.5)%
Trade working capital in relation to sales2) 10.7% 11.2% (0.5)pp
- Receivables outstanding in relation to sales3) 19.0% 20.0% (0.9)pp
- Inventory outstanding in relation to sales4) 8.8% 9.2% (0.4)pp
- Payables outstanding in relation to sales5) 17.2% 18.0% (0.8)pp
Cash & cash equivalents 330 498 (34)%
Gross Debt6) 1,909 1,862 2.5%
Net Debt7) 1,554 1,367 14%
Capital employed8) 3,840 3,937 (2.5)%
Return on capital employed9) 35.8% 24.4% 11pp
Total equity 2,285 2,570 (11)%
Return on total equity10) 42.5% 36.0% 6.5pp
Leverage ratio11) 1.2 1.2 0.0pp
1) Outstanding receivables and outstanding inventory less outstanding payables. Non-U.S. GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding
inventory less outstanding payables relative to annualized quarterly sales. Non -U.S. GAAP measure, see reconciliation table. Annualized quart erly sales is calculated as the
quarterly sales amount multiplied by four. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5)
Outstanding payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-
related derivatives. Non-U.S. GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating i ncome and income from equity method investments,
relative to average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tabl es below. 10) Annualized net income relative to average
total equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non-U.S.
GAAP measure. See reconciliation table.
Fourth quarter 2024 development
Changes in operating working capital impacted operating
cash flow by $107 million positive compared to an impact of
$243 million positive in the prior year. The $107 million
positive impact for the quarter was mainly a result of $108
million in lower receivables and other assets, $26 million in
lower inventories, and $45 million from changes in income
tax liability partly offset by $72 million in lower accounts
payables. These changes are within normal variations
related to timings, except for the lower inventories which is
related to improved customer call of accuracy.
Other, net was $29 million negative compared to $120
million negative in the prior year. The $29 million negative
impact in the quarter was mainly related to a lower amount
of deferred taxes.
Operating cash flow decreased by $27 million to $420
million compared to the prior year, mainly due to changes in
operating working capital were less positive than in the prior
year, partly offset by less negative impact from other net and
higher net income, as outline above.
Capital expenditure, net decreased by $18 million
compared to the prior year. The level of Capital expenditure,
net, in relation to sales declined to 5.0% versus 5.4% a year
earlier. The lower level of capital expenditure, net is mainly
related to lower activity level of footprint optimization in
Europe and Americas and less capacity expansion,
especially in Asia.
Free operating cash flow* was positive $288 million
compared to positive $297 million in the prior year. The
decrease was due to the lower operating cash flow partly
offset by the lower capital expenditure, net, as outlined
above.
Cash conversion* defined as free operating cash flow* in
relation to net income, was 118% in the quarter.
===== SIDA 12 =====
Financial Report October - December 2024
11
Trade working capital* decreased by $117 million
compared to the prior year, where the main drivers were
$204 million in lower accounts receivables, $179 million in
lower accounts payable and $91 million in lower inventories.
In relation to sales, trade working capital decreased from
11.2% to 10.7%. The improvement in trade working capital is
a result of our multi-year working capital improvement
program and an improvement in customer call-off accuracy
enabling a more efficient inventory management.
Cash and cash equivalents as of December 31, 2024 was
around $0.3 billion, while committed, unused loan facilities,
was around $1.2 billion.
Net debt* was $1,554 million as of December 31, 2024,
which was $187 million higher than a year earlier, mainly
because dividends paid and share repurchases were higher
than free operating cash flow in 2024.
Total equity as of December 31, 2024, decreased by $284
million compared to December 31, 2023. This was mainly
due to $219 million in dividend payments and share
repurchases including taxes of $558 million and $161 million
negative currency translation effects, partly offset by positive
net income of $648 million.
Leverage ratio*: On December 31, 2024, the Company had
a leverage ratio of 1.2x compared to 1.2x on December 31,
2023, as the 12 months trailing adjusted EBITDA* increased
by around $97 million while net debt* per the policy
increased by around $181 million.
Full year 2024 development
Operating cash flow increased by $77 million compared to
the same period last year, to $1,059 million, mainly due to
higher net income and less positive effects from income tax
liability, partly offset by less positive effects from decreased
operating working capital. The changes between the years
are within normal variations related to timing, except for the
lower inventories which is related to improved customer call
of accuracy.
Capital expenditure, net decreased by $6 million. Capital
expenditure, net in relation to sales was stable at 5.4%
versus 5.4% the prior year period. The 2024 level is 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 Japan.
Free operating cash flow* was positive $497 million,
compared to positive $414 million in the prior year. The
improvement was due to the higher operating cash flow.
Cash conversion* defined as free operating cash flow* in
relation to net income, was 77% in the period.
Headcount
Dec 31 Sep 30 Dec 31
2024 2024 2023
Headcount 65,200 67,200 70,300
Whereof: Direct headcount in manufacturing 48,000 49,800 52,400
Indirect headcount 17,200 17,400 17,800
Temporary personnel 9% 9% 11%
As of December 31, 2024, total headcount (Full Time
Equivalent) decreased by around 5,100, or 7.3%, compared
to a year earlier, more than twice the 3.3% organic sales*
decline. The indirect workforce decreased by around 600, or
3.4%, mainly reflecting our structural reduction initiatives.
The direct workforce decreased by approximately 4,500, or
8.6%. The decrease was supported by an improvement in
customer call-off accuracy in the second half year which
enabled us to accelerate operating efficiency improvements.
Compared to September 30, 2024, total headcount (Full
Time Equivalent) decreased by around 2,000, or 3.0%.
Indirect headcount decreased by around 100, or 0.6%,
while direct headcount decreased by approximately 1,900,
or 3.8%.
===== SIDA 13 =====
Financial Report October - December 2024
12
2024 Sustainability Development
Sustainability is an integral part of our business
strategy and 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.
Highlighting our core business of Saving More Lives, we
continued 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. We also
engage with researchers and policy makers on how to better
protect vulnerable road users.
Within Health & Safety we significantly improved our
Recordable Incident Rate. We continued the work of
integrating health and safety into our operations, with a focus
on proactive measures and high-risk activities.
Renewable electricity and GHG emissions: in own
operations, focus remained on reducing GHG emissions
from own operations (scope 1+2) through energy efficiency
and increasing the use of renewable electricity. Scope 1+2
emissions decreased 15% compared to 2023, and
operational GHG emissions intensity improved. The share of
renewable electricity increased to 30%, and we took the first
steps in the implementation of large-scale solar power
generation in Utah.
Within Supply chain sustainability, we carried out the
annual supplier climate survey covering all direct material
suppliers, to help us understand their readiness to meet our
requirements and contribute to meeting our net-zero supply
chain ambition. We also began integrating climate
performance into the supplier selection process and
launched a climate accelerator program to support our
suppliers.
We continued assessing how we best meet current and
future sustainability-related requirements and expectations.
To guide future CSRD reporting, we carried out a double
materiality assessment as well as impact assessments of
topics related to CSDDD compliance.
===== SIDA 14 =====
Financial Report October - December 2024
13
Other Items
• On November 11, 2024, Autoliv announced an increase
of its quarterly dividend by 3% to $ 0.70 per share and
an extension of its share repurchase program until the
end of 2025, with no other changes to the authorization.
• On December 12, 2024 Autoliv announced that Jiangling
Motors Co., Ltd (JMC), a renowned Chinese automotive
manufacturer, and Autoliv (Shanghai) Management Co.,
Ltd, will start a new strategic cooperation to advance
innovation and support global expansion. JMC is a
leading company in China's commercial vehicle industry
and a new force in passenger vehicles.
• On December 16, 2024, Fitch Ratings assigned Autoliv,
Inc. a Long-Term Issuer Default Rating (IDR) of 'BBB+
with a Stable Outlook. Fitch has also assigned the
Company's senior unsecured debt a 'BBB+ rating.
• Autoliv plans to host a Capital Markets Day on June 3,
2025. More details will be announced at a later date.
• In Q4 2024, Autoliv repurchased and retired 1.04 million
shares of common stock at an average price of $97.71
per share under the Autoliv 2022-2025 stock purchase
program. Autoliv also retired 2 million shares of common
stock that had been held in treasury unrelated to the
repurchases in the quarter.
• The Company set May 8, 2025 as the date for its 2025
annual meeting of stockholders. The meeting will be a
hybrid meeting, conducted virtually and in-person in the
Detroit metropolitan area. The stockholders of record at
the close of business on March 12, 2025 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 2025 on Wednesday, April 16,
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 31 januari 2025 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 10-Q, 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
2024, October 2024 and January 2025. 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 =====
Financial Report October - December 2024
14
“Safe Harbor Statement”
This report contains statements that are not historical facts but
rather forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-
looking statements include those that address activities, events or
developments that Autoliv, Inc. or its management believes or
anticipates may occur in the future. All forward-looking statements
are based upon our current expectations, various assumptions
and/or data available from third parties. Our expectations and
assumptions are expressed in good faith and we believe there is a
reasonable basis for them. However, there can be no assurance
that such forward-looking statements will materialize or prove to be
correct as forward-looking statements are inherently subject to
known and unknown risks, uncertainties and other factors which
may cause actual future results, performance or achievements to
differ materially from the future results, performance or
achievements expressed in or implied by such forward-looking
statements. In some cases, you can identify these statements by
forward-looking words such as “estimates”, “expects”,
“anticipates”, “projects”, “plans”, “intends”, “believes”, “may”,
“likely”, “might”, “would”, “should”, “could”, or the negative of these
terms and other comparable terminology, although not all forward-
looking statements contain such words. Because these forward-
looking statements involve risks and uncertainties, the outcome
could differ materially from those set out in the forward-looking
statements for a variety of reasons, including without limitation,
general economic conditions, including inflation; changes in light
vehicle production; fluctuation in vehicle production schedules for
which the Company is a supplier; global supply chain disruptions,
including port, transportation and distribution delays or
interruptions; supply chain disruptions and component shortages
specific to the automotive industry or the Company; geopolitical
instability, including 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; including changes
in trade policy and tariffs, 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 =====
Financial Report October - December 2024
15
Consolidated Statements of Income
Fourth quarter Full year
(Dollars in millions, except per share data, unaudited) 2024 2023 2024 2023
Airbags, Steering Wheels and Other1) $1,760 $1,864 $7,023 $7,055
Seatbelt products and Other1) 856 887 3,367 3,420
Total net sales 2,616 2,751 10,390 10,475
Cost of sales (2,065) (2,221) (8,463) (8,654)
Gross profit 551 530 1,927 1,822
Selling, general & administrative expenses (132) (120) (530) (500)
Research, development & engineering expenses, net (74) (81) (398) (425)
Other income (expense), net 8 (92) (19) (207)
Operating income 353 237 979 690
Income from equity method investments 2 1 7 5
Interest income 3 3 13 13
Interest expense (27) (25) (107) (93)
Other non-operating items, net (10) 3 (16) (3)
Income before income taxes 321 219 875 612
Income taxes (78) 8 (227) (123)
Net income 243 227 648 489
Less: Net income attributable to non-controlling interest 0 0 1 1
Net income attributable to controlling interest $243 $227 $646 $488
Earnings per share - diluted $3.10 $2.71 $8.04 $5.72
1) Including Corporate sales.
===== SIDA 17 =====
Financial Report October - December 2024
16
Consolidated Balance Sheets
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions, unaudited) 2024 2024 2024 2024 2023
Assets
Cash & cash equivalents $330 $415 $408 $569 $498
Receivables, net 1,993 2,192 2,090 2,194 2,198
Inventories, net 921 997 936 997 1,012
Prepaid expenses 167 172 193 180 173
Other current assets 72 90 76 71 93
Total current assets 3,483 3,865 3,703 4,011 3,974
Property, plant & equipment, net 2,239 2,317 2,197 2,192 2,192
Operating leases right-of-use assets 158 173 167 177 176
Goodwill and intangible assets, net 1,375 1,386 1,379 1,381 1,385
Investments and other non-current assets 548 565 564 564 606
Total assets 7,804 8,306 8,010 8,324 8,332
Liabilities and equity
Short-term debt 387 624 455 310 538
Accounts payable 1,799 1,881 1,858 1,855 1,978
Accrued expenses 1,056 1,189 1,120 1,129 1,135
Operating lease liabilities - current 41 44 41 41 39
Other current liabilities 351 297 312 323 345
Total current liabilities 3,633 4,034 3,785 3,658 4,035
Long-term debt 1,522 1,586 1,540 1,830 1,324
Pension liability 153 147 140 149 159
Operating lease liabilities - non-current 118 130 127 134 135
Other non-current liabilities 92 110 106 111 109
Total non-current liabilities 1,885 1,974 1,913 2,224 1,728
Total parent shareholders’ equity 2,276 2,288 2,298 2,428 2,557
Non-controlling interest 10 10 13 13 13
Total equity 2,285 2,298 2,311 2,442 2,570
Total liabilities and equity $7,804 $8,306 $8,010 $8,324 $8,332
===== SIDA 18 =====
Financial Report October - December 2024
17
Consolidated Statements of Cash Flow
Fourth quarter Full year
(Dollars in millions, unaudited) 2024 2023 2024 2023
Net income $243 $227 $648 $489
Depreciation and amortization 98 97 387 378
Other, net (29) (120) (29) (119)
Net change in operating working capital:
Receivables and other assets 108 82 114 (213)
Inventories 26 5 28 (22)
Accounts payable and accrued expenses (72) 88 (95) 426
Income taxes 45 69 6 43
Net cash provided by operating activities 420 447 1,059 982
Expenditures for property, plant and equipment (139) (152) (579) (572)
Proceeds from sale of property, plant and equipment 7 3 17 4
Net cash used in investing activities (132) (150) (563) (569)
Net decrease (increase) in short term debt (211) (54) (126) 61
Decrease in long-term debt (54) - (306) (533)
Increase in long-term debt - 2 526 559
Dividends paid (55) (57) (219) (225)
Share repurchases (102) (150) (552) (352)
Common stock options exercised 0 0 1 1
Dividend paid to non-controlling interests - (0) (5) (1)
Net cash used in financing activities (422) (258) (680) (490)
Effect of exchange rate changes on cash 49 (16) 16 (20)
Increase (decrease) in cash and cash equivalents (84) 23 (168) (96)
Cash and cash equivalents at period-start 415 475 498 594
Cash and cash equivalents at period-end $330 $498 $330 $498
===== SIDA 19 =====
Financial Report October - December 2024
18
RECONCILIATION OF U.S. GAAP TO NON-U.S. GAAP MEASURES
In this report we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autoliv's
performance. We believe that these measures assist investors and management in 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.
Reconciliation of GAAP measure "Working Capital" to Non-GAAP Measure
"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. Trade working capital is an indicator of operational efficiency, which
impacts the Company’s ability to return value to shareholders either through dividends or share repurchases. We believe this
is useful for readers to understand the efficiency of the Company’ operational capital management. 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) 2024 2024 2024 2024 2023
Total current assets $3,483 $3,865 $3,703 $4,011 $3,974
Total current liabilities (3,633) (4,034) (3,785) (3,658) (4,035)
Working capital (U.S. GAAP) (150) (169) (83) 353 (61)
Less: Cash and cash equivalents (330) (415) (408) (569) (498)
Prepaid expenses (167) (172) (193) (180) (173)
Other current assets (72) (90) (76) (71) (93)
Less: Short-term debt 387 624 455 310 538
Accrued expenses 1,056 1,189 1,120 1,129 1,135
Operating lease liabilities - current 41 44 41 41 39
Other current liabilities 351 297 312 323 345
Trade working capital (non-U.S. GAAP) $1,115 $1,307 $1,169 $1,336 $1,232
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
(Dollars in millions) 2024 2024 2024 2024 2023
Receivables, net $1,993 $2,192 $2,090 $2,194 $2,198
Inventories, net 921 997 936 997 1,012
Accounts payable (1,799) (1,881) (1,858) (1,855) (1,978)
Trade working capital (non-U.S. GAAP) $1,115 $1,307 $1,169 $1,336 $1,232
Dec 31 Dec 31 Dec 31
(Dollars in millions) 2022 2021 2020
Total current assets $3,714 $3,675 $4,269
Total current liabilities (3,642) (2,821) (3,147)
Working capital (U.S. GAAP) 72 853 1,122
Less: Cash and cash equivalents (594) (969) (1,178)
Prepaid expenses (160) (174) (401)
Other current assets (84) (55) (70)
Less: Short-term debt 711 346 302
Accrued expenses 915 996 1,270
Operating lease liabilities - current 39 38 37
Other current liabilities 283 297 284
Trade working capital (non-U.S. GAAP) $1,183 $1,332 $1,366
Dec 31 Dec 31 Dec 31
(Dollars in millions) 2022 2021 2020
Receivables, net $1,907 $1,699 $1,822
Inventories, net 969 777 798
Accounts payable (1,693) (1,144) (1,254)
Trade working capital (non-U.S. GAAP) $1,183 $1,332 $1,366
===== SIDA 20 =====
Financial Report October - December 2024
19
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) 2024 2024 2024 2024 2023
Short-term debt $387 $624 $455 $310 $538
Long-term debt 1,522 1,586 1,540 1,830 1,324
Total debt 1,909 2,210 1,996 2,140 1,862
Cash & cash equivalents (330) (415) (408) (569) (498)
Debt issuance cost/Debt-related derivatives, net (24) (9) (8) (9) 3
Net debt $1,554 $1,787 $1,579 $1,562 $1,367
Dec 31 Dec 31 Dec 31
(Dollars in millions) 2022 2021 2020
Short-term debt $711 $346 $302
Long-term debt 1,054 1,662 2,110
Total debt 1,766 2,008 2,411
Cash & cash equivalents (594) (969) (1,178)
Debt issuance cost/Debt-related derivatives, net 12 13 (19)
Net debt $1,184 $1,052 $1,214
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 t o
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.
Dec 31 Sep 30 Dec 31
(Dollars in millions) 2024 2024 2023
Net debt1) $1,554 $1,787 $1,367
Pension liabilities 153 147 159
Debt per the Policy $1,708 $1,934 $1,527
Net income2) $648 $632 $489
Income taxes2) 227 141 123
Interest expense, net2, 3) 95 93 80
Other non-operating items, net2) 16 4 3
Income from equity method investments2) (7) (6) (5)
Depreciation and amortization of intangibles2) 387 385 378
Adjustments2), 4) 27 128 230
EBITDA per the Policy (Adjusted EBITDA) $1,394 $1,376 $1,297
Leverage ratio 1.2 1.4 1.2
1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense
including cost for extinguishment of debt, if any, less interest income. 4) Capacity alignments, antitrust related matters and for FY2023
the Andrews litigation settlement. See Items Affecting Comparability below.
===== SIDA 21 =====
Financial Report October - December 2024
20
Reconciliation of GAAP measure "Operating cash flow" to "Free operating cash
flow" and "Cash conversion"
Management uses the non-U.S. GAAP measure “free operating 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 operati ng
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 operating cash flow. The measure is a tool to evaluate how efficient ly
the Company utilizes its resources. For details on cash conversion, see the reconciliation table below.
Fourth quarter Full year
(Dollars in millions) 2024 2023 2024 2023
Net income $243 $227 $648 $489
Depreciation and amortization 98 97 387 378
Other, net (29) (120) (29) (119)
Changes in operating working capital, net 107 243 53 235
Operating cash flow 420 447 $1,059 $982
Expenditures for property, plant and equipment (139) (152) (579) (572)
Proceeds from sale of property, plant and equipment 7 3 17 4
Capital expenditure, net1) (132) (150) (563) (569)
Free operating cash flow2) $288 $297 $497 $414
Cash conversion3) 118% 131% 77% 85%
1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating
cash flow less Capital expenditure, net. 3) Free operating cash flow relative to Net income.
Full year Full year Full year
(Dollars in millions) 2022 2021 2020
Net income $425 $437 $188
Depreciation and amortization 363 394 371
Gain on divestiture of property (80) - -
Other, net (54) (15) 13
Changes in operating working capital, net 58 (63) 277
Operating cash flow 713 754 849
Expenditures for property, plant and equipment (585) (458) (344)
Proceeds from sale of property, plant and equipment 101 4 4
Capital expenditure, net1) (485) (454) (340)
Free operating cash flow2) $228 $300 $509
Cash conversion3) 54% 69% 270%
1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash
flow less Capital expenditure, net. 3) Free operating cash flow relative to net income.
===== SIDA 22 =====
Financial Report October - December 2024
21
Items Affecting Comparability
We believe that comparability between periods is improved through the exclusion of certain items. To assist investors in
understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures
exclusive of these items.
The following table reconciles Income before income taxes, Net income attributable to controlling interest, Capital employed,
which are inputs utilized to calculate Return On Capital Employed (“ROCE”), adjusted ROCE and Return On Total Equity
(“ROE”). The Company believes this presentation may be useful to investors and industry analysts who utilize these adjusted
non-U.S. GAAP measures in their ROCE and ROE calculations to exclude certain items for comparison purposes across
periods. Autoliv’s management uses the ROCE, adjusted ROCE and ROE measures for purposes of comparing its financial
performance with the financial performance of other companies in the industry and providing useful information regarding the
factors and trends affecting the Company’s 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. See definitions of "annualized
operating income" and "average capital employed" in footnote to the tables below. 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. See definitions of
"annualized income" "and "average total equity" in footnote to the tables below. 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.
Reconciliation of GAAP measure "Operating income" to Non-GAAP measure
"Adjusted Operating income"
Fourth quarter Full year
(Dollars in millions) 2024 2023 2024 2023
Operating income (GAAP) $353 $237 $979 $690
Non-GAAP adjustments:
Less: Capacity alignments (6) 96 19 218
Less: The Andrews litigation settlement - 0 0 8
Less: Antitrust related items 2 1 8 4
Total non-GAAP adjustments to operating income (4) 97 27 230
Adjusted Operating income (Non-GAAP) $349 $334 $1,007 $920
(Dollars in millions) 2022 2021 2020
Operating income (GAAP) $659 $675 $382
Non-GAAP adjustments:
Less: Capacity alignments1) (61) 8 99
Less: The Andrews litigation settlement - - -
Less: Antitrust related items - - 1
Total non-GAAP adjustments to operating income (61) 8 99
Adjusted Operating income (Non-GAAP) $598 $683 $482
1) For 2022, including a gain on divestiture of property of $80 million.
===== SIDA 23 =====
Financial Report October - December 2024
22
Reconciliation of GAAP measure "Operating margin" to Non-GAAP measure
"Adjusted Operating margin"
Fourth quarter Full year
2024 2023 2024 2023
Operating margin (GAAP) 13.5% 8.6% 9.4% 6.6%
Non-GAAP adjustments:
Less: Capacity alignments (0.2)% 3.5% 0.2% 2.1%
Less: The Andrews litigation settlement - - - 0.1%
Less: Antitrust related items 0.1% 0.0% 0.1% 0.0%
Total non-GAAP adjustments to operating margin (0.2)% 3.5% 0.3% 2.2%
Adjusted Operating margin (Non-GAAP) 13.4% 12.1% 9.7% 8.8%
2022 2021 2020
Operating margin (GAAP) 7.5% 8.2% 5.1%
Non-GAAP adjustments:
Less: Capacity alignments (0.7)% 0.1% 1.4%
Less: The Andrews litigation settlement - - -
Less: Antitrust related items - - 0.0%
Total non-GAAP adjustments to operating margin (0.7)% 0.1% 1.4%
Adjusted Operating margin (Non-GAAP) 6.8% 8.3% 6.5%
Reconciliation of GAAP measure "Income before income taxes" to Non-GAAP
measure "Adjusted Income before income taxes"
Fourth quarter Full year
(Dollars in millions) 2024 2023 2024 2023
Income before income taxes (GAAP) $321 $219 $875 $612
Non-GAAP adjustments:
Less: Capacity alignments (6) 96 19 218
Less: The Andrews litigation settlement - - - 8
Less: Antitrust related items 2 1 8 4
Total non-GAAP adjustments to Income before income taxes (4) 97 27 230
Adjusted Income before income taxes (Non-GAAP) $317 $316 $902 $842
Reconciliation of GAAP measure "Net income" to Non-GAAP measure "Adjusted
Net income"
Fourth quarter Full year
(Dollars in millions) 2024 2023 2024 2023
Net income (GAAP) $243 $227 $648 $489
Non-GAAP adjustments:
Less: Capacity alignments (6) 96 19 218
Less: The Andrews litigation settlement - - - 8
Less: Antitrust related items 2 1 8 4
Less: Tax on non-GAAP adjustments 0 (10) (5) (20)
Total non-GAAP adjustments to Net income (4) 86 22 210
Adjusted Net income (Non-GAAP) $240 $314 $670 $699
===== SIDA 24 =====
Financial Report October - December 2024
23
Reconciliation of GAAP measure "Net income attributable to controlling interest" to
Non-GAAP measure "Adjusted Net income attributable to controlling interest"
Fourth quarter Full year
(Dollars in millions) 2024 2023 2024 2023
Net income attributable to controlling interest (GAAP) $243 $227 $646 $488
Non-GAAP adjustments:
Less: Capacity alignments (6) 96 19 218
Less: The Andrews litigation settlement - - - 8
Less: Antitrust related items 2 1 8 4
Less: Tax on non-GAAP adjustments 0 (10) (5) (20)
Total non-GAAP adjustments to Net income attributable to controlling
interest (4) 86 22 210
Adjusted Net income attributable to controlling interest (Non-GAAP) $239 $313 $668 $697
Reconciliation of GAAP measure "Earnings per share - diluted" to Non-GAAP
measure "Adjusted Earnings per share - diluted"
Fourth quarter Full year
2024 2023 2024 2023
Earnings per share - diluted (GAAP) $3.10 $2.71 $8.04 $5.72
Non-GAAP adjustments:
Less: Capacity alignments (0.08) 1.15 0.24 2.56
Less: The Andrews litigation settlement - - - 0.09
Less: Antitrust related items 0.03 0.01 0.10 0.05
Less: Tax on non-GAAP adjustments 0.00 (0.13) (0.06) (0.24)
Total non-GAAP adjustments to Earnings per share - diluted (0.05) 1.03 0.28 2.46
Adjusted Earnings per share - diluted (Non-GAAP) $3.05 $3.74 $8.32 $8.19
Weighted average number of shares outstanding - diluted 78.5 83.7 80.4 85.2
Reconciliation of GAAP measure "Return on Capital Employed" to Non-GAAP
measure "Adjusted Return on Capital Employed"
Fourth quarter Full year
2024 2023 2024 2023
Return on capital employed1) (GAAP) 35.8% 24.4% 25.0% 17.7%
Non-GAAP adjustments:
Less: Capacity alignments (1.0)% 8.5% 0.4% 5.1%
Less: The Andrews litigation settlement - - - 0.2%
Less: Antitrust related items 0.4% 0.1% 0.2% 0.1%
Total non-GAAP adjustments to Return on capital employed1) (0.6)% 8.5% 0.6% 5.3%
Adjusted Return on capital employed1) (Non-GAAP) 35.2% 32.9% 25.6% 23.1%
Annualized adjustment2) on Return on capital employed1) $(16) $388 $27 $230
1) Annualized operating income and income from equity method investments, relative to average capital employed. The average capital employed amount is
calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.
2) The quarterly annualized adjustment to the operating income and income from equity method investments amount is calculated as the quarterly amount
multiplied by four. The year-to-date annualized adjustment to the operating income and income from equity method investments amount is calculated as the
year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.
===== SIDA 25 =====
Financial Report October - December 2024
24
Reconciliation of GAAP measure "Return on Total Equity" to Non-GAAP measure
"Adjusted Return on Total Equity"
Fourth quarter Full year
2024 2023 2024 2023
Return on total equity1) (GAAP) 42.5% 36.0% 27.2% 19.0%
Non-GAAP adjustments:
Less: Capacity alignments (1.9)% 11.8% 0.7% 7.5%
Less: The Andrews litigation settlement - - - 0.3%
Less: Antitrust related items 0.7% 0.1% 0.3% 0.1%
Less: Tax on non-GAAP adjustments 0.1% (1.3)% (0.2)% (0.7)%
Total non-GAAP adjustments to Return on total equity1) (1.1)% 10.6% 0.8% 7.2%
Adjusted Return on total equity1) (Non-GAAP) 41.4% 46.6% 28.0% 26.2%
Annualized adjustment2) on Return on total equity1) $(15) $346 $22 $210
1) Annualized net income relative to average total equity. The average total equity amount is calculated as an average of the opening balance amount and
the closing balance amounts for each quarter included in the period.
2) The quarterly annualized adjustment to net income amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized
adjustment to the net income amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.
===== SIDA 26 =====
Financial Report October - December 2024
25
(Dollars in millions, except per share data, unaudited) 2024 2023 2022 2021 2020
Sales and Income
Net sales $10,390 $10,475 $8,842 $8,230 $7,447
Airbags, Steering Wheels and Other1) 7,023 7,055 5,807 5,380 4,824
Seatbelt Products and Other1) 3,367 3,420 3,035 2,850 2,623
Operating income 979 690 659 675 382
Net income attributable to controlling interest 646 488 423 435 187
Earnings per share – basic2) 8.06 5.74 4.86 4.97 2.14
Earnings per share – diluted2) 8.04 5.72 4.85 4.96 2.14
Gross margin3) 18.5% 17.4% 15.8% 18.4% 16.7%
S,G&A in relation to sales (5.1)% (4.8)% (4.9)% (5.3)% (5.2)%
R,D&E net in relation to sales (3.8)% (4.1)% (4.4)% (4.7)% (5.0)%
Operating margin4) 9.4% 6.6% 7.5% 8.2% 5.1%
Adjusted operating margin5,6) 9.7% 8.8% 6.8% 8.3% 6.5%
Balance Sheet
Trade working capital7) 1,115 1,232 1,183 1,332 1,366
Trade working capital in relation to sales8) 10.7% 11.2% 12.7% 15.7% 13.6%
Receivables outstanding in relation to sales9) 19.0% 20.0% 20.4% 20.0% 18.1%
Inventory outstanding in relation to sales10) 8.8% 9.2% 10.4% 9.2% 7.9%
Payables outstanding in relation to sales11) 17.2% 18.0% 18.1% 13.5% 12.5%
Total equity 2,285 2,570 2,626 2,648 2,423
Total parent shareholders’ equity per share 29.26 30.93 30.30 30.10 27.56
Current assets excluding cash 3,153 3,475 3,119 2,705 3,091
Property, plant and equipment, net 2,239 2,192 1,960 1,855 1,869
Goodwill and Intangible assets 1,375 1,385 1,382 1,395 1,412
Capital employed 3,840 3,937 3,810 3,700 3,637
Net debt6) 1,554 1,367 1,184 1,052 1,214
Total assets 7,804 8,332 7,717 7,537 8,157
Long-term debt 1,522 1,324 1,054 1,662 2,110
Return on capital employed12) 25.0% 17.7% 17.5% 18.3% 10.0%
Return on total equity13) 27.2% 19.0% 16.3% 17.1% 9.0%
Total equity ratio 29% 31% 34% 35% 30%
Cash flow and other data
Operating cash flow 1,059 982 713 754 849
Depreciation and amortization 387 378 363 394 371
Capital expenditures, net 563 569 485 454 340
Capital expenditures, net in relation to sales 5.4% 5.4% 5.5% 5.5% 4.6%
Free operating cash flow6,14) 497 414 228 300 509
Cash conversion6,15) 77% 85% 54% 69% 270%
Direct shareholder return16) 771 577 339 165 54
Cash dividends paid per share 2.74 2.66 2.58 1.88 0.62
Number of shares outstanding (millions)17) 77.7 82.6 86.2 87.5 87.4
Number of employees, December 31 59,500 62,900 61,700 55,900 61,000
1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sa les. 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 payabl es relative to annualized fourth quarter sales. 9)
Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to
annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to average total
equity. 14) Operating cash flow less Capital expenditures, net. 15) Free operating cash flow relative to Net income. 16) Divi dends paid and Shares repurchased. 17) At year end,
excluding dilution and net of treasury shares.