Group 1 - The Funding Committee of Autoliv, Inc. approved the renewal of its €3,000,000,000 guaranteed euro medium term note programme for one year, originally established on April 11, 2019 [1] - The renewal will enable the company to leverage funding opportunities from capital markets and institutional investors through future note issuances [1] - The notes issued under the EMTN Programme will be guaranteed unconditionally and irrevocably by Autoliv's subsidiary, Autoliv ASP, Inc. [1] Group 2 - The base listing particulars related to the EMTN Programme have been approved by Euronext Dublin and are available for public viewing [2] - Autoliv, Inc. is a global leader in automotive safety systems, developing and marketing protective systems for major automotive manufacturers [3][4] - In 2023, Autoliv's products saved 35,000 lives and reduced over 450,000 injuries, with sales amounting to US $10.5 billion [4]

STOCKHOLM, Feb. 20, 2024 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) and (SSE: ALIV.sdb), the worldwide leader in automotive safety systems, has filed with the Securities and Exchange Commission (SEC) its 2023 Annual Report on Form 10-K as well its annual sustainability report, filed together with the 10-K as an Annual Report to Shareholders (ARS). Both the Form 10-K and ARS are available at www.sec.gov and www.autoliv.com. Autoliv has also filed the same reports with the Swedish Financial Supervisory Author ...

STOCKHOLM, Feb. 20, 2024 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) and (SSE: ALIV.sdb), the worldwide leader in automotive safety systems, today announced that its Board of Directors has declared a quarterly dividend of 68 cents for the first quarter of 2024. To holders of record on the close of business on Tuesday, March 12, the dividend will be payable on: Wednesday, March 27, 2024 to holders of Autoliv common stock listed on the New York Stock Exchange (Common Stock); and Thursday, March 28, 2024 to hol ...

[PART I](index=6&type=section&id=PART%20I) This part provides an overview of Autoliv's business operations, including its products, market position, quality management, and human capital, alongside a detailed analysis of various risk factors, cybersecurity measures, and legal disclosures [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Autoliv is a global leader in passive automotive safety systems, including airbags and seatbelts, emphasizing quality management, R&D, and expansion into new mobility safety solutions - Autoliv is a leading global developer, manufacturer, and supplier of passive safety systems (airbags, seatbelts, steering wheels) to the automotive industry[10](index=10&type=chunk) 2023 Sales and Workforce Overview | Metric | Value | | :--------------------- | :------------------- | | Sales in 2023 | **$10.5 billion** | | Airbag & Steering Wheel Sales | **~67%** of total sales | | Seatbelt Sales | **~33%** of total sales | | Production Facilities | **63** in **23** countries | | Personnel Worldwide (Dec 31, 2023) | **~70,300** (**11%** temporary) | - The company is expanding its product offerings into Mobility Safety Solutions, including pedestrian protection, battery cut-off switches, connected safety services, and solutions for powered two-wheelers[10](index=10&type=chunk) - Autoliv maintains a 'zero-defect' proactive quality policy through its 'Q5' initiative, focusing on products, customers, growth, behavior, and suppliers, and has implemented a four-line defense system for quality issues[18](index=18&type=chunk) R,D&E Expenditures (2022-2023) | Metric | 2023 (Millions USD) | 2022 (Millions USD) | | :-------------------------- | :------------------ | :------------------ | | Gross R,D&E Expenditures | **$618 million** | **$595 million** | | Customer-funded Projects | **$193 million** | **$205 million** | | Net R,D&E Expenditures | **$425 million** | **$390 million** | [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse material risks, including geopolitical instability, automotive industry cyclicality, intense competition, operational challenges, and international regulatory and economic uncertainties - Geopolitical developments (e.g., war in Ukraine, Red Sea Conflict) exacerbate macro-economic uncertainty, leading to increased raw material, transportation, and energy costs, and supply chain disruptions[40](index=40&type=chunk)[41](index=41&type=chunk) - The automotive industry's cyclical nature, driven by light vehicle production (LVP) and consumer demand, directly impacts Autoliv's sales and financial performance, with significant reductions in LVP having a material adverse effect[42](index=42&type=chunk) - Autoliv operates in a highly competitive market, where success depends on continuous innovation, product differentiation, quality, timely delivery, and cost-effective production. Failure to adapt to new technologies (e.g., EVs) or meet customer preferences could lead to a competitive disadvantage[44](index=44&type=chunk)[45](index=45&type=chunk) - Product liability, warranty, and recall claims pose significant financial and reputational risks, with increasing regulatory scrutiny and potential for substantial costs not fully covered by insurance[49](index=49&type=chunk)[51](index=51&type=chunk) - Dependence on a few large customers (top five accounted for **~48%** of **2023 sales**) creates a risk of material adverse effects if business is lost, contracts are cancelled, or customers face financial difficulties[60](index=60&type=chunk) - Cybersecurity incidents could disrupt business operations, lead to loss of critical data, intellectual property theft, reputational damage, and significant financial costs, despite comprehensive security measures[81](index=81&type=chunk) - International operations expose the company to risks from local economic conditions, political instability, regulatory changes, foreign currency fluctuations, and trade policies, particularly in growth markets[87](index=87&type=chunk) - Changes in automotive safety regulations or government priorities could adversely affect demand for Autoliv's products or increase compliance costs, as seen with stringent requirements like the Vehicle Safety Act and TREAD Act[106](index=106&type=chunk) [Item 1B. Unresolved Staff Comments](index=34&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section confirms the absence of any unresolved staff comments from the SEC regarding previous filings - Not applicable, indicating no unresolved staff comments[110](index=110&type=chunk) [Item 1C. Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) Autoliv implements a comprehensive cybersecurity program aligned with NIST and ISO 21434 frameworks, overseen by the Audit and Risk Committee, with no material incidents reported - Autoliv's cybersecurity program is designed to identify, assess, manage, mitigate, and respond to threats, integrated into overall operations[111](index=111&type=chunk) - Cybersecurity risk management is undertaken through dedicated processes and within the Enterprise Risk Management program, overseen by the Audit and Risk Committee[112](index=112&type=chunk) - The company utilizes the NIST Cybersecurity Framework and pursues TISAX and ISO 21434 compliance to guide its risk management[112](index=112&type=chunk) - The Chief Information Security Officer (CISO) oversees cybersecurity practices, reporting to the CFO and the Digitalization and IT Management Board, with the Board of Directors providing ultimate oversight[114](index=114&type=chunk)[118](index=118&type=chunk) - Autoliv has not experienced any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the registrant[113](index=113&type=chunk) [Item 2. Properties](index=39&type=section&id=Item%202.%20Properties) Autoliv maintains its principal executive offices in Stockholm, Sweden, and operates a global network of owned or leased production facilities, technical centers, and crash test tracks across 23 countries - Autoliv's principal executive offices are in Stockholm, Sweden[120](index=120&type=chunk) - The company operates a global network of production facilities and technical centers, producing seatbelts, airbags, steering wheels, and related components[121](index=121&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - Properties are located in **23** countries, including major regions like China, India, Japan, Mexico, Europe, and the USA[121](index=121&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - All production facilities and offices are either owned or leased by operating subsidiaries or joint ventures[120](index=120&type=chunk) [Item 3. Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with further details referenced in Note 17 of the Consolidated Financial Statements - The Company is subject to legal proceedings in the ordinary course of business[130](index=130&type=chunk) - Further details on ongoing legal proceedings are provided in Note 17, Contingent Liabilities, to the Consolidated Financial Statements[130](index=130&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company's operations - Mine Safety Disclosures are not applicable to the Company[130](index=130&type=chunk) [PART II](index=45&type=section&id=PART%20II) This part details Autoliv's common equity market, stock performance, and share repurchase programs, along with a comprehensive management discussion and analysis of financial condition, results of operations, and market risk disclosures [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Autoliv's common stock trades on the NYSE and NASDAQ Stockholm, with details on shares outstanding, dividend policy, and an active stock repurchase program - Autoliv's common stock trades on the NYSE (ALV) and Swedish Depositary Receipts (SDRs) on NASDAQ Stockholm (ALIV SDB)[132](index=132&type=chunk) Shares Outstanding and Repurchases (2022-2023) | Metric | Dec 31, 2023 | Dec 31, 2022 | | :-------------------------------- | :----------- | :----------- | | Shares Outstanding (net of treasury) | **82.6 million** | **86.2 million** | | Shares Retired (2023) | **3.7 million** | N/A | | Weighted Average Shares Outstanding (2023) | **85.0 million** | **87.1 million** | | Treasury Shares (Dec 31, 2023) | **4.9 million** | N/A | - Autoliv has a history of paying quarterly cash dividends, with the Board of Directors revisiting dividends quarterly[137](index=137&type=chunk) - A stock repurchase program authorized up to **$1.5 billion** or **17 million shares** between January **2022** and the end of **2024**[139](index=139&type=chunk) Stock Repurchases (Q4 2023) | Period | Total Shares Purchased | Average Price per Share (USD) | | :---------------- | :--------------------- | :---------------------------- | | October 1-31, 2023 | **258,925** | **$94.07** | | November 1-30, 2023 | **859,965** | **$99.14** | | December 1-31, 2023 | **393,043** | **$102.76** | [Item 6. [Reserved]](index=46&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Autoliv's 2023 financial performance, highlighting significant net sales growth, improved operating cash flow, strategic cost reduction initiatives, and the **2024 financial outlook** - Global Light Vehicle Production (LVP) grew by **9.4%** in **2023**, exceeding initial expectations, with significant growth in Europe (**13%**) and China (**9.1%**)[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) Key Financial Highlights (2023 vs. 2022) | Metric | 2023 (Millions USD, except EPS) | 2022 (Millions USD, except EPS) | Change (%) | | :------------------------------------ | :------------------------------ | :------------------------------ | :--------- | | Consolidated Net Sales | **$10,475** | **$8,842** | **18%** | | Operating Income | **$690** | **$659** | **4.7%** | | Operating Margin | **6.6%** | **7.5%** | (**0.9**) pp | | Net Income Attributable to Controlling Interest | **$488** | **$423** | **15%** | | Earnings Per Share (Diluted) | **$5.72** | **$4.85** | **18%** | | Net Cash Provided by Operating Activities | **$982** | **$713** | **38%** | | Return on Capital Employed | **17.7%** | **17.5%** | **0.2** pp | - Cost pressures from labor, logistics, and utilities negatively impacted profitability in **2023**, largely offset by customer price and other compensations. Raw material price changes had a negligible impact[144](index=144&type=chunk) - Autoliv's order intake in **2023** was strong, with estimated life-time sales of **$11.8 billion**, including high win rates for new EV platforms (**45%** of total order intake) and with new automakers (**25%** of total order intake)[149](index=149&type=chunk) - The company initiated a structural cost reduction framework in June **2023**, aiming to reduce indirect headcount by up to **2,000** and improve direct labor productivity, expecting annual savings of **$130 million** when fully implemented[150](index=150&type=chunk) 2024 Financial Outlook | Financial Measure | Full Year Indication | | :------------------------ | :------------------- | | Organic Sales Growth | Around **5%** | | Foreign Currency Impact on Net Sales | Around **0%** | | Adjusted Operating Margin | Around **10.5%** | | Tax Rate | Around **28%** | | Operating Cash Flow | Around **$1.2 billion** | | Capital Expenditures, net % of sales | Around **5.5%** | [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Autoliv manages various market risks, including currency, interest rate, financing, and credit risks, through diversified strategies and aims to maintain a strong investment grade credit rating - Autoliv is exposed to currency, interest rate, financing, capital structure, credit rating, and impairment risks[229](index=229&type=chunk) - The company's net currency transaction exposure in **2023** was approximately **$1.8 billion**, with the largest exposures in USD against Mexican Peso, Romanian Lei against Euro, USD against Korean Won, and USD against Japanese Yen[230](index=230&type=chunk) - Autoliv's policy is not to hedge translation exposure, estimating a **1%** increase in USD value against European currencies would decrease **2024** reported net sales by **$31 million** and operating income by **$3 million**[231](index=231&type=chunk) - The average interest rate fixing period for outstanding debt was **2.1 years** at December 31, **2023**, and a one-percentage point interest rate increase would decrease net interest expense by approximately **$0.4 million** annually[232](index=232&type=chunk) - Autoliv aims to maintain a 'strong investment grade credit rating' (BBB from S&P Global Ratings) and a long-term leverage ratio target of **1.0x** (range **0.5x** to **1.5x**), with the current ratio at **1.2x**[234](index=234&type=chunk) - Goodwill impairment risk is assessed annually, with no impairments recognized from **2021** through **2023**[237](index=237&type=chunk)[286](index=286&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Autoliv's audited consolidated financial statements for 2021-2023, with an unqualified opinion from Ernst & Young AB on both financial statements and internal controls, highlighting critical audit matters like revenue recognition and product recall liabilities - The consolidated financial statements for **2023**, **2022**, and **2021** are presented, including balance sheets, income statements, comprehensive income, cash flows, and total equity[238](index=238&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[259](index=259&type=chunk)[261](index=261&type=chunk)[263](index=263&type=chunk) - Ernst & Young AB issued an unqualified opinion on the consolidated financial statements for the period ended December 31, **2023**, in conformity with U.S. GAAP[241](index=241&type=chunk) - Ernst & Young AB also issued an unqualified opinion on the effectiveness of Autoliv's internal control over financial reporting as of December 31, **2023**[250](index=250&type=chunk) - Critical audit matters include revenue recognition related to variable consideration (price concessions) and product recall liabilities, both involving significant management judgment and estimation due to inherent uncertainties[240](index=240&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk) Consolidated Net Sales (2021-2023) | Year | Net Sales (Millions USD) | | :--- | :----------------------- | | 2023 | **$10,475** | | 2022 | **$8,842** | | 2021 | **$8,230** | Consolidated Net Income Attributable to Controlling Interest (2021-2023) | Year | Net Income (Millions USD) | | :--- | :------------------------ | | 2023 | **$488** | | 2022 | **$423** | | 2021 | **$435** | Consolidated Cash and Cash Equivalents (2022-2023) | Date | Cash and Cash Equivalents (Millions USD) | | :--- | :--------------------------------------- | | Dec 31, 2023 | **$498** | | Dec 31, 2022 | **$594** | [PART III](index=116&type=section&id=PART%20III) This part provides information on Autoliv's corporate governance, executive compensation, security ownership, related party transactions, and principal accountant fees, primarily by reference to the **2024 Proxy Statement** [Item 10. Directors, Executive Officers and Corporate Governance](index=116&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information from the **2024 Proxy Statement** regarding executive officers, directors, corporate governance, and related matters - Information on executive officers, directors, corporate governance, audit committee, code of ethics, and Section 16(A) compliance is incorporated by reference from the **2024 Proxy Statement**[403](index=403&type=chunk) [Item 11. Executive Compensation](index=116&type=section&id=Item%2011.%20Executive%20Compensation) This section incorporates by reference information from the **2024 Proxy Statement** concerning executive compensation for **2023** and the Leadership Development and Compensation Committee - Information on executive compensation for **2023** and the Leadership Development and Compensation Committee is incorporated by reference from the **2024 Proxy Statement**[404](index=404&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=116&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section incorporates by reference information on beneficial ownership from the **2024 Proxy Statement** and details securities authorized for issuance under the **1997 Stock Incentive Plan** - Information on beneficial ownership of common stock is incorporated by reference from the **2024 Proxy Statement**[405](index=405&type=chunk) Securities Authorized for Issuance Under 1997 Stock Incentive Plan (Dec 31, 2023) | Category | Number of Securities to be Issued upon Exercise | Weighted-Average Exercise Price | Number of Securities Remaining Available for Future Issuance | | :----------------------------------------- | :-------------------------------------------- | :------------------------------ | :----------------------------------------------------------- | | Equity compensation plans approved by security holders | **316,936** | **$76.97** | **2,557,274** | | Equity compensation plans not approved by security holders | — | — | — | | Total | **316,936** | **$76.97** | **2,557,274** | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=116&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This section incorporates by reference information from the **2024 Proxy Statement** regarding policies for related party transactions and director independence - Information on related person transactions and director independence is incorporated by reference from the **2024 Proxy Statement**[408](index=408&type=chunk) [Item 14. Principal Accountant Fees and Services](index=116&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This section incorporates by reference information from the **2024 Proxy Statement** regarding principal accounting fees and the pre-approval process for services - Information on principal accounting fees and the pre-approval process for accounting services is incorporated by reference from the **2024 Proxy Statement**[409](index=409&type=chunk) [PART IV](index=117&type=section&id=PART%20IV) This part details all documents filed as part of the report, including financial statements, schedules, and a comprehensive list of exhibits, with many incorporated by reference [Item 15. Exhibit and Financial Statement Schedules](index=117&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the report, including consolidated financial statements, schedules, and a comprehensive list of exhibits, some incorporated by reference - This section lists all documents filed as part of the report, including financial statements, schedules, and exhibits[410](index=410&type=chunk) - Financial statements for **2021-2023** are included, and all schedules specified under Regulation S-X are omitted if not applicable or already included[410](index=410&type=chunk) - Exhibits include distribution agreements, corporate governance documents, debt agreements, employment agreements, and various certifications[411](index=411&type=chunk)[412](index=412&type=chunk)[413](index=413&type=chunk)[414](index=414&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk)[419](index=419&type=chunk)[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk)[423](index=423&type=chunk)[424](index=424&type=chunk)[426](index=426&type=chunk) [SIGNATURES](index=124&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-K report from key executives and directors, certifying the report as of February 20, 2024 - The report is signed by the Chief Financial Officer, Chairman of the Board, Chief Executive Officer and President, and other Directors[427](index=427&type=chunk)[428](index=428&type=chunk) - The signing date for the report is February 20, **2024**[427](index=427&type=chunk) [Glossary and Definitions](index=125&type=section&id=Glossary%20and%20Definitions) This section provides a comprehensive glossary of company and industry-specific financial and operational terms and abbreviations used throughout the report - The glossary defines key financial and operational terms such as Capital Employed, EBITDA, Gross Margin, Earnings Per Share, and Net Debt[430](index=430&type=chunk)[431](index=431&type=chunk)[435](index=435&type=chunk) - Industry-specific terms like CPV (Content Per Vehicle), LVP (Light Vehicle Production), and OEM (Original Equipment Manufacturer) are defined[430](index=430&type=chunk)[434](index=434&type=chunk)[436](index=436&type=chunk) - Definitions for various ratios and metrics, including Leverage Ratio, Inventory Outstanding in Relation to Sales, and Return on Capital Employed, are provided[432](index=432&type=chunk)[433](index=433&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)

Group 1: Consumer Discretionary Sector Overview - Consumer discretionary stocks are considered high-risk, particularly in inflationary environments, with S&P's Global Market Intelligence identifying this sector as the highest-risk at the end of 2023 [1] - Despite the risks, some consumer discretionary stocks are performing well and growing their earnings, making them attractive for investors [1] Group 2: Autoliv (ALV) - Autoliv is a developer and manufacturer of passive safety systems for the automotive industry, including airbags and seatbelts, and has recently raised capital through green bonds for climate change initiatives [2] - In Q4 2023, Autoliv reported record sales of $2.75 billion, an 18% year-over-year growth driven by 16% organic sales growth and improved operating margins [2][3] - The company anticipates a 5% organic sales growth and a 10.5% adjusted operating margin by the end of 2024, supported by its market position and sustainability efforts [3] Group 3: Gentex (GNTX) - Gentex manufactures products such as digital vision systems and dimmable glass for the automotive and aviation industries, with significant growth in its Full Display Mirror® shipments, which increased by 45% last year [5] - For Q4 2023, Gentex reported a 19% increase in net sales, contributing to a record $2.30 billion in sales for FY23, representing a 20% growth rate from 2022 [6] - The company has a positive outlook for 2024 and 2025, expecting continued revenue growth and gross margin expansion [6] Group 4: MakeMyTrip Limited (MMYT) - MakeMyTrip is an online travel company in India, operating in air ticketing, hotel reservations, and bus ticketing, and has recently acquired a majority stake in Savaari Car Rentals [7] - The company reported a 25.6% year-over-year revenue increase to $214.22 million, with notable growth in all business segments, including 34.8% for air ticketing [8] - Adjusted net profit surged by 145.27% year-over-year, reaching $38.90 million, showcasing strong resilience and growth despite challenging market conditions [8]

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA STOCKHOLM, Feb. 1, 2024 /PRNewswire/ -- Autoliv, Inc. (NYSE: ALV) and (SSE: ALIV.sdb), today announced that it has priced a 5.5-year bond offering of EUR 500 million in the Eurobond market (the "Notes"). The Notes are due to be issued on February 7 and will carry a coupon of 3.625%. The Notes are expected to be admitted to trading on the Global Exchange Market (GEM) of the Irish Stock Exchange (Euron ...

Autoliv Inc. (ALV) reported fourth-quarter 2023 adjusted earnings of $3.74 per share, surpassing the Zacks Consensus Estimate of $3.25 and rising 105% year over year. The company reported net sales of $2,751 million in the quarter, which topped the Zacks Consensus Estimate of $2,746 million and soared 18% year over year.Organic sales rose 16% year over year and breezed past our estimate of 10.6% due to product launches and higher prices. Autoliv reported an adjusted operating income of $334 million, increas ...

Financial Performance - Autoliv achieved record sales of $2.751 billion and gross profit of $530 million in Q4 2023, with a gross margin of 19.3%[32] - The adjusted operating income for Q4 2023 was $334 million, representing 12.1% of sales[32] - For the full year 2023, sales reached $10.475 billion with a gross profit of $1.822 billion, resulting in a gross margin of 17.4%[36] - The adjusted operating income for FY2023 was $920 million, or 8.8% of sales[36] - Operating cash flow for FY2023 was $982 million[36] Sales Growth and Market Outperformance - Autoliv's Q4 2023 organic sales growth outperformed global Light Vehicle Production (LVP) by 7 percentage points[24] - Asia accounted for 41% of sales in Q4 2023, with 16% organic growth[21] - Full year 2023 organic sales growth outperformed global LVP by 9 percentage points[26] Cost Reduction and Efficiency - Autoliv is implementing structural cost reduction initiatives, aiming to reduce indirect headcount by up to 2,000 and improve direct labor productivity equivalent to a direct workforce headcount reduction of up to 6,000[18] - The total accrual for capacity alignment in 2023 amounted to $218 million[18] Shareholder Returns - Autoliv repurchased shares for $150 million in Q4 2023, bringing full-year repurchases to 3.7 million shares for $352 million[4] - The dividend was increased by approximately 3% to $0.68 per share[4] - The company has returned approximately $1.4 billion to shareholders over the last 5 years[46] 2024 Outlook - Autoliv anticipates a mid-single-digit sales growth for FY2024, despite a modest decline of around 1% in LVP[4, 52, 62] - The company is advancing towards its adjusted operating margin target of around 10.5% for FY2024[4, 62] - Autoliv expects operating cash flow of around $1.2 billion for FY2024[62]

Financial Data and Key Metrics - Organic sales grew by 16% in Q4 2023, significantly outperforming light vehicle production, especially in Rest of Asia and Japan [6] - Adjusted operating income increased by more than 40% to $334 million in Q4 2023, with an adjusted operating margin of 12.1%, up by over 2 percentage points YoY [11][12] - Operating cash flow was $447 million in Q4 2023, slightly lower than the same period last year due to timing effects of customer recovery [12] - Full-year 2023 net sales reached $10.5 billion, with organic sales growth of over 18%, twice the increase in underlying light vehicle production [21] - Adjusted operating income for 2023 increased by 54% to $920 million, with an adjusted operating margin of 8.8% [21] - Full-year operating cash flow was $982 million, a new record for the company [23] Business Line Data and Key Metrics - Order intake in 2023 was the highest in the past five years, with around 45% of orders for future electric vehicles [7][8] - Fast-growing Chinese OEMs accounted for around 50% of order intake in China, expected to represent close to 40% of Chinese sales in 2024 [9] - Product launches in 2024 are expected to increase, particularly in China and Europe, driven by strong order intake [9][17] - Global market share in 2023 was around 45%, with 45-47% in airbags, 45% in seatbelts, and 40% in steering wheels [16] Market Data and Key Metrics - Asia accounted for 41% of sales, Americas for 31%, and Europe for 28% in Q4 2023 [14] - Organic sales growth outperformed global light vehicle production by 7 percentage points in Q4 2023, with strong performance in Rest of Asia and Japan [15] - Full-year 2023 sales outperformed global light vehicle production by 9 percentage points, with significant outperformance in Japan (15%), Rest of Asia (14%), and China (8%) [16] - Sales to domestic Chinese OEMs outperformed light vehicle production by 17 percentage points, accounting for 28% of sales in China, up from 22% in 2022 [16] Company Strategy and Industry Competition - The company aims to reduce indirect workforce by up to 2,000, expecting savings of around $50 million in 2024 [6] - Strategic initiatives include automation, digitalization, and cost control, contributing to improved labor efficiency and customer compensations [10][11] - The company expects to achieve an adjusted operating margin of around 12% under stable global light vehicle production conditions [36] - Sustainability is a key focus, with targets to be carbon neutral in operations by 2030 and net zero emissions across the supply chain by 2040 [32][33] Management Commentary on Operating Environment and Future Outlook - Management expects mid-single-digit sales growth in 2024 despite a modest decline in light vehicle production [6] - Adjusted operating margin is expected to improve significantly in 2024, driven by organic sales growth, stable production, and cost control [30] - Inflation, particularly in labor costs, is expected to remain a challenge in 2024, with wage increases in Europe and North America [28] - The Red Sea situation has not yet impacted operations, but potential effects on 2024 remain uncertain [29] Other Important Information - The company repurchased 1.5 million shares for $150 million in Q4 2023, part of a $1.5 billion stock repurchase program [18] - Dividends increased to $0.68 per share in Q4 2023, with total dividends of $2.66 per share paid in 2023 [21] - The company achieved $580 million of its $800 million working capital improvement target, with further improvements expected in receivables and inventory [23][65] Q&A Session Summary Question: Long-term growth target and China headwinds [42] - The company expects to over-deliver on its 4% outperformance target versus light vehicle production in 2024, driven by strong order intake and content per vehicle growth [43] - China's underperformance in Q4 2023 was due to a negative customer mix, but full-year performance was strong, with an 8% outperformance [44] Question: Labor inflation impact [45] - Labor inflation is expected to be mid-single-digit above normal levels, similar to 2023, with additional energy cost increases [46] Question: Share buybacks and inflation compensation [49] - The company remains committed to its buyback program and expects full compensation for inflation by the end of 2024, with a lag in Q1 [50][51][53] Question: Path to 12% adjusted operating margin [55] - The company outlined three key components to reach the 12% target: structural initiatives, volatility improvement, and sales growth, with roughly equal contributions [57] Question: Market share and win rate [58] - The company aims to defend its 45% market share, with growth driven by light vehicle production and content per vehicle, rather than market share expansion [60] Question: Price recoveries and working capital [62] - The company has successfully negotiated price recoveries for inflation, with a focus on labor costs, and expects further working capital improvements in receivables and inventory [63][65] Question: Active Seatbelt sales and labor cost negotiations [67] - The drop in Active Seatbelt sales was due to temporary mix effects, with recovery expected in 2024 [68] - Labor cost negotiations are ongoing, with detailed documentation provided to customers to secure compensation [69] Question: Price negotiations and market outlook [71] - The company remains firm on securing inflation compensation, regardless of OEM profitability or car price reductions [72][74] - The market outlook aligns with S&P Global's projection of a 1% decline in light vehicle production, with no significant discrepancies observed in customer dialogues [76]

Core Insights - Autoliv, Inc. reported revenue of $2.75 billion for the quarter ended December 2023, reflecting a year-over-year increase of 17.8% [1] - The company's EPS was $3.74, significantly higher than the $1.83 reported in the same quarter last year [1] - Autoliv's revenue met the Zacks Consensus Estimate, with a surprise of +0.19%, while the EPS exceeded expectations by +15.08% [1] Revenue Performance - Sales from Airbags, Steering Wheels, and Other products showed an organic change of 16%, surpassing the average estimate of 6.9% from three analysts [2] - Seatbelt Products experienced an organic change of 15%, which was below the average estimate of 22.8% from three analysts [2] - Overall sales by segment had an organic change of 16%, compared to the estimated 11.1% from two analysts [2] Segment Sales Details - Sales for Seatbelt Products reached $887 million, lower than the estimated $977.37 million from three analysts, but still represented a year-over-year increase of 17.6% [2] - Sales for Airbags, Steering Wheels, and Other products amounted to $1.86 billion, exceeding the average estimate of $1.73 billion from three analysts, with a year-over-year change of 17.9% [2] Stock Performance - Autoliv's shares have declined by 6.7% over the past month, contrasting with a 3.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]