Autoliv, Inc. (NYSE:ALV) Q2 2023 Earnings Call Transcript July 21, 2023 8:00 AM ET Company Participants Anders Trapp - Vice President-Investor Relations Mikael Bratt - President and Chief Executive Officer Fredrik Westin - Chief Financial Officer Conference Call Participants Emmanuel Rosner - Deutsche Bank Bjorn Enarson - Danske Bank Christopher McNally - Evercore ISI Colin Langan - Wells Fargo Michael Jacks - Bank of America Mattias Holmberg - DNB Dan Levy - Barclays Rod Lache - Wolfe Research Operator Goo ...

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Financial Performance - Net sales for the three months ended June 30, 2023, increased to $2.635 billion, up 26.6% from $2.081 billion in the same period in 2022[9] - Gross profit for the three months ended June 30, 2023, rose to $447 million, a 37.1% increase from $326 million in the same period in 2022[9] - Net income attributable to controlling interest for the three months ended June 30, 2023, was $53 million, down 32.9% from $79 million in the same period in 2022[9] - Comprehensive income attributable to controlling interest for the three months ended June 30, 2023, was $12 million, compared to a loss of $40 million in the same period in 2022[13] - Net income for the six months ended June 30, 2023, was $127 million, compared to $163 million in the same period in 2022[19] - Net income for the three months ended March 31, 2023, was $74 million, and for the three months ended June 30, 2023, it was $53 million[20] - Net income attributable to controlling interest was $53 million and $127 million for the three and six months ended June 30, 2023, respectively, compared to $79 million and $162 million in 2022[66] - Basic and diluted earnings per share were $0.61 and $1.48 for the three and six months ended June 30, 2023, respectively, compared to $0.91 and $1.86 in 2022[66] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2023, decreased to $475 million from $594 million as of December 31, 2022[16] - Net cash provided by operating activities for the six months ended June 30, 2023, was $334 million, a significant increase from $19 million in the same period in 2022[19] - Expenditures for property, plant, and equipment were $268 million for the six months ended June 30, 2023, compared to $254 million in the same period in 2022[19] - Proceeds from long-term debt were $556 million for the six months ended June 30, 2023, compared to $269 million in the same period in 2022[19] - Cash dividends declared for the three months ended June 30, 2023, were $56 million[20] - The company issued a five-year €500 million Eurobond in Q1 2023 and repaid the same amount in Q2 2023[34] Balance Sheet Items - Receivables, net as of June 30, 2023, increased to $2.189 billion from $1.907 billion as of December 31, 2022[16] - Total current assets as of June 30, 2023, increased to $3.898 billion from $3.714 billion as of December 31, 2022[16] - Total liabilities as of June 30, 2023, increased to $5.401 billion from $5.092 billion as of December 31, 2022[16] - Total equity as of June 30, 2023, was $2,557 million, compared to $2,558 million as of June 30, 2022[20] - Total inventories, net of reserve, as of June 30, 2023, were $947 million, compared to $969 million as of December 31, 2022[40] - The fair value of long-term debt as of June 30, 2023, was $1,268 million, compared to a carrying value of $1,290 million[35] Segment and Geographic Performance - The company has one reportable segment, which includes Autoliv's airbag and seatbelt products and components[22] - Total net sales for the three and six months ended June 30, 2023 were $2.635 billion and $5.127 billion, respectively, compared to $2.081 billion and $4.206 billion in 2022[69] - Net sales in China for the three and six months ended June 30, 2023 were $497 million and $950 million, respectively, compared to $363 million and $810 million in 2022[69] - Net sales in the Americas for the three and six months ended June 30, 2023 were $916 million and $1.747 billion, respectively, compared to $738 million and $1.431 billion in 2022[69] - Net sales in Europe for the three and six months ended June 30, 2023 were $751 million and $1.476 billion, respectively, compared to $611 million and $1.186 billion in 2022[69] Restructuring and Liabilities - Approximately $105 million out of the $127 million restructuring reserve balance as of June 30, 2023, is attributed to footprint optimization activities in Europe, expected to conclude by 2025[42] - Reserve for product-related liabilities increased to $178 million at the end of June 2023, up from $141 million at the beginning of the period, primarily due to warranty and recall issues[44][45] - Total insurance receivables for product-related liabilities stood at $169 million as of June 30, 2023[44] - The company accrued $14 million in Q4 2021 and an additional $5 million in Q3 2022 for a product liability lawsuit, with a final settlement resulting in an $8 million excess over insurance receivables[57] - The company faces a class action lawsuit related to ARC inflators, but no accrual has been made as the potential loss cannot be determined[58] - Product warranty and recall reserves are based on the company's best estimates, but actual costs could differ materially from recorded estimates[53] - The company maintains insurance programs for potential recall and product liability claims, although coverage may not be sufficient for all possible claims[55] - Vehicle manufacturers are increasingly requiring suppliers to bear warranty and recall costs, which could lead to material future expenses[53] - The Company accrued $27 million for the Honda Buckle Recall, reflecting self-insurance retention costs and deductibles, with potential losses possibly differing materially from the accrued amount[60] - Volvo recalled approximately 762,000 vehicles due to ZF Inflator malfunctions, with potential losses estimated between $0 to $43 million, though net losses are expected to be immaterial after insurance and claims against ZF[61] Shareholder and Stock Information - Weighted average number of shares outstanding, net of treasury shares, for the three months ended June 30, 2023, was 85.6 million, down from 87.2 million in the same period in 2022[10] - Cash dividend per share declared for the three months ended June 30, 2023, was $0.66, up from $0.64 in the same period in 2022[10] - Stock repurchased and retired for the three months ended June 30, 2023, amounted to $41 million[20] - Stock-based compensation expense for RSUs and PSUs was $5 million and $8 million for the three and six months ended June 30, 2023, respectively, compared to $3 million and $5 million for the same periods in 2022[63] - The Company utilized 20,000 and 112,000 shares of common stock from treasury stock for the Plan during the three and six months ended June 30, 2023, respectively, compared to 16,000 and 138,000 shares in 2022[64] Tax and Accounting - The effective tax rate for Q2 2023 was 35.8%, with discrete tax items having a favorable impact of 4.5%[38] - The company adopted ASU 2022-04 as of January 1, 2023, requiring disclosure of supplier finance program obligations, with payment terms ranging between 30 and 165 days, and a weighted average of 130 days[25] - Confirmed obligations outstanding at the end of the period as of June 30, 2023, were $333 million, with $680 million in invoices confirmed and $661 million paid during the period[26] - Gains recognized in other non-operating items for derivative instruments not designated as hedging instruments were $13 million for Q2 2023 and $8 million for the six months ended June 30, 2023[31] - The fair value of derivatives not designated as hedging instruments as of June 30, 2023, was $10 million for assets and $8 million for liabilities, with a nominal volume of $1,710 million[32] Retirement and Benefit Plans - Net periodic benefit cost for U.S. retirement plans was $0 million for the three months ended June 30, 2023, compared to $4 million in the same period of 2022[48] - Net periodic benefit cost for non-U.S. retirement plans was $6 million for the three months ended June 30, 2023, compared to a gain of $1 million in the same period of 2022[48] - The discount rate used to determine U.S. net periodic benefit cost increased from 5.09% to 5.32% in Q2 2023 due to settlement accounting[49]

Autoliv, Inc. (NYSE:ALV) Q1 2023 Earnings Conference Call April 21, 2023 8:00 AM ET Company Participants Anders Trapp – Vice President-Investor Relations Mikael Bratt – President and Chief Executive Officer Fredrik Westin – Chief Financial Officer Conference Call Participants Colin Langan – Wells Fargo Emmanuel Rosner – Deutsche Bank Rod Lache – Wolfe Research Philipp Konig – Goldman Sachs Hampus Engellau – Handelsbanken Vijay Rakesh – Mizuho Group Erik Golrang – SEB Michael Jacks – Bank of America Mattias ...

More Lives Saved – More Life Lived Earnings Call Presentation 1 st Quarter 2023 April 21, 2023 April 21, 2023 ALV – Q1-2023 Earnings Call and Webcast Copyright Autoliv Inc., All Rights Reserved Public More Life Lived 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 forwardlooking statements include those that address activities, events or developments tha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File No.: 001-12933 AUTOLIV, INC. (Exact name of registrant as specified in its charter) Delaware 51-0378542 (State or other jurisdiction of (I.R.S. Employ ...

Market Share and Growth - The company's passive safety market share increased from 27% in 1997 to 43% in 2022, driven by a steady flow of new technologies and a superior global footprint[16] - The company's sales CAGR for passive safety has been around 5% since 1997, outperforming the market rate of 2.4%[16] - The company has a global market share of 45% in seatbelts and 44% in airbags, driven by advanced technologies and higher installation rates[16] Light Vehicle Production and Market Forecast - Light vehicle production (LVP) is forecasted to grow to 87 million by 2025 from 79 million in 2021, with a compound annual growth rate (CAGR) of 1.6% since 1997[16] - The annual passive safety market is expected to grow from $20 billion in 2022 to over $25 billion in the next three years, with the highest growth rate in steering wheels[16] Content per Vehicle (CPV) and Regional Growth - Content per vehicle (CPV) in Developed Markets is around $320, while in Growth Markets it is approximately $200, with expected growth in both regions over the next three years[16] Manufacturing and Production - In 2022, the company manufactured 134 million complete seatbelt systems, 102 million side airbags, 56 million frontal airbags, and 19 million steering wheels[19] - The company's "just-in-time" delivery system is designed to accommodate low inventory levels and rapid stock delivery, with assembly capacity in multiple countries[19] Quality Management - The company's quality initiative "Q5" focuses on five dimensions: products, customers, growth, behavior, and suppliers, aiming for zero defects[20] - All of the company's facilities shipping products to OEMs are certified according to the IATF 16949:2016 international quality management standard[22] Supply Chain and Customer Concentration - Direct materials purchased from external suppliers accounted for 52% of the company's net sales in 2022[25] - The company's top five customers represented 49% of consolidated sales in 2022, while the top ten accounted for 80%[28] - Asian vehicle producers represented 43% of global sales in 2022, with Japanese OEMs accounting for approximately two-thirds of this share[29] Research and Development (R&D) - Gross R&D expenditures in 2022 amounted to $595 million, with $205 million related to customer-funded projects[30] - Net R&D expenditures in 2022 were $390 million, with 79% allocated to projects with customer orders[30] - Autoliv holds over 6,600 patents and patent applications, mainly in seatbelt and airbag technologies[90] Workforce and Diversity - The company's total workforce increased to 69,100 in 2022, up from 60,600 in 2021[34] - Women held 49% of the company's workforce and 18% of senior management positions at the end of 2022[35] - Temporary workforce accounted for 11% of the total workforce in 2022, up from 8% in 2021[34] - 49% of the workforce are women, up from 47%[41] - 18% of senior management positions are held by women, up from 17%[41] - 99% of employees participated in the annual Performance and Development Dialogue (PDD)[41] - 4,100 employees attended at least one training program, down from 4,400[41] Health and Safety - 71% of the company's production facilities were certified according to ISO 45001 by the end of 2022[38] - 71% of Autoliv facilities are certified (OHSAS 18001 or ISO 45001)[41] - Incident rate decreased to 0.32 from 0.41[41] - Severity rate decreased to 3.31 from 5.84[41] Environmental Sustainability - The company aims for carbon neutrality in its own operations by 2030 and net-zero emissions across its supply chain by 2040[24] Financial Risks and Tax Implications - The company faces significant foreign currency risks due to its global operations[86] - Changes in U.S. or foreign tax laws, regulations, or accounting principles could impact the company's income taxes, effective tax rate, and deferred tax assets, with potential adverse effects on operating results and cash flows[98] - The company's effective tax rate is influenced by global earnings mix, currency exchange rates, and the ability of subsidiaries to pay dividends, which may cause fluctuations in the tax rate[98] - Deferred tax assets may not be fully realized if future taxable income is lower than expected due to market conditions or operational changes, adversely affecting income in the adjustment period[99] - The separation of Veoneer could result in significant tax liabilities if the transaction is deemed taxable, despite an opinion from outside counsel suggesting it qualifies as a tax-free reorganization[100] Legal and Regulatory Risks - Autoliv is subject to various government regulations, including environmental and occupational health and safety laws[95] - Potential indemnification obligations to Veoneer or Veoneer's refusal to indemnify the company could materially adversely affect its business, operating results, and financial condition[101] - Warranty, recall, and product liabilities for electronics products manufactured before the internal reorganization remain with the company, requiring indemnification of Veoneer for associated losses[101] - The acquisition of Veoneer by SSW Partners on April 1, 2022, may impact the company's ability to recover amounts from Veoneer under the transaction agreements[101]

Autoliv, Inc. (NYSE:ALV) Q4 2022 Earnings Conference Call January 27, 2023 8:00 AM ET Company Participants Anders Trapp - VP, Investor Relations Mikael Bratt - Chief Executive Officer Fredrik Westin - Chief Financial Officer Conference Call Participants Rod Lache - Wolfe Research Mattias Holmberg - DNB Markets Vijay Rakesh - Mizuho Group Giulio Pescatore - Exane BNP Paribas Hampus Engellau - Handelsbanken Colin Langan - Wells Fargo Agnieszka Vilela - Nordea Itay Michaeli - Citi Anders Trapp Welcome everyone ...

Autoliv, Inc. (NYSE:ALV) Q3 2022 Earnings Conference Call October 21, 2022 8:00 AM ET Company Participants Anders Trapp - VP, Investor Relations Mikael Bratt - President and CEO Fredrik Westin - Executive Vice President, Chief Financial Officer Conference Call Participants Mattias Holmberg - DNB Colin Langan - Wells Fargo Chris McNally - Evercore Joseph Spak - RBC Capital Markets Agnieszka Vilela - Nordea Philipp Konig - Goldman Sachs Emmanuel Rosner - Deutsche Bank Rod Lache - Wolfe Research Hampus Engella ...