FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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. (“Autoliv,” the “Company” or “we”) 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; the impacts of the coronavirus (COVID-19) pandemic on the Company’s financial condition, business operations, operating costs, liquidity, competition and the global economy; disruptions and impacts relating to the ongoing conflict between Russia and Ukraine; 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 ~~impacting~~specific to the ~~Company~~automotive industry or the ~~automotive industry;~~Company; disruptions and impacts relating to the ongoing war between Russia and Ukraine; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignments: restructuring, ~~and~~ 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; component shortages; 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 judgements or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; and other risks and uncertainties identified in Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Item 1A “Risk Factors” and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 filed with the SEC on February ~~22, 2022.~~16, 2023.

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.


INDEX	INDEX		INDEX

PART I - FINANCIAL INFORMATION	PART I - FINANCIAL INFORMATION	4	PART I - FINANCIAL INFORMATION	4

ITEM 1. FINANCIAL STATEMENTS	ITEM 1. FINANCIAL STATEMENTS	4	ITEM 1. FINANCIAL STATEMENTS	4

1.	Basis of Presentation	10	Basis of Presentation	10
2.	New Accounting Standards	10	New Accounting Standards	11
3.	Fair Value Measurements	11	Fair Value Measurements	12
4.	Income Taxes	14	Income Taxes	15
5.	Inventories	14	Inventories	15
6.	Restructuring	15	Restructuring	16
7.	Product-Related Liabilities	15	Product-Related Liabilities	16
8.	Retirement Plans	16	Retirement Plans	17
9.	Contingent Liabilities	17	Contingent Liabilities	18
10.	Stock Incentive Plan	19	Stock Incentive Plan	19
11.	Earnings Per Share	19	Earnings Per Share	20
12.	Related Party Transactions	20	Revenue Disaggregation	20
13.	Revenue Disaggregation	20	Subsequent Events	20
14.	Subsequent Events	20

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21	ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34

ITEM 4. CONTROLS AND PROCEDURES	ITEM 4. CONTROLS AND PROCEDURES	34	ITEM 4. CONTROLS AND PROCEDURES	34

PART II - OTHER INFORMATION	PART II - OTHER INFORMATION	35	PART II - OTHER INFORMATION	35

ITEM 1. LEGAL PROCEEDINGS	ITEM 1. LEGAL PROCEEDINGS	35	ITEM 1. LEGAL PROCEEDINGS	35

ITEM 1A. RISK FACTORS	ITEM 1A. RISK FACTORS	35	ITEM 1A. RISK FACTORS	35

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	35	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	35

ITEM 3. DEFAULTS UPON SENIOR SECURITIES	ITEM 3. DEFAULTS UPON SENIOR SECURITIES	36	ITEM 3. DEFAULTS UPON SENIOR SECURITIES	35

ITEM 4. MINE SAFETY DISCLOSURES	ITEM 4. MINE SAFETY DISCLOSURES	36	ITEM 4. MINE SAFETY DISCLOSURES	35

ITEM 5. OTHER INFORMATION	ITEM 5. OTHER INFORMATION	36	ITEM 5. OTHER INFORMATION	35

ITEM 6. EXHIBITS	ITEM 6. EXHIBITS	37	ITEM 6. EXHIBITS	36

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in millions, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Net sales

$
2,302

$
1,847

$
6,507

$
6,111

Cost of sales

(1,918
)

(1,546
)

(5,510
)

(4,968
)
Gross profit

383

301

998

1,143

Selling, general and administrative expenses

(105
)

(101
)

(333
)

(319
)
Research, development and engineering expenses, net

(106
)

(98
)

(325
)

(311
)
Amortization of intangibles

(0
)

(2
)

(2
)

(8
)
Other (expense) income, net1)

(1
)

(1
)

91

(5
)
Operating income

171

99

429

500

Income from equity method investment

1

(0
)

3

2

Interest income

2

1

4

3

Interest expense

(15
)

(14
)

(41
)

(46
)
Other non-operating items, net

(6
)

1

(5
)

(3
)
Income before income taxes

153

87

389

456

Income tax expense

(47
)

(27
)

(121
)

(135
)
Net income

106

60

268

322

Less: Net income attributable to non-controlling interest

1

0

1

1

Net income attributable to controlling interest

$
105

$
60

$
267

$
320

Net earnings per share – basic2)

$
1.21

$
0.68

$
3.06

$
3.66

Net earnings per share – diluted2)

$
1.21

$
0.68

$
3.06

$
3.65

Weighted average number of shares outstanding, net of
   treasury shares (in millions)

87.0

87.4

87.2

87.4

Weighted average number of shares outstanding,
   assuming dilution and net of treasury
   shares (in millions)

87.2

87.7

87.4

87.7

Cash dividend per share – declared

$
0.64

$
0.62

$
1.92

$
1.24

Cash dividend per share – paid

$
0.64

$
0.62

$
1.92

$
1.24


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net sales	$	2,596		$	2,302		$	7,724		$	6,507
Cost of sales		(2,131	)		(1,918	)		(6,432	)		(5,510	)
Gross profit		465			383			1,291			998
Selling, general and administrative expenses		(118	)		(105	)		(379	)		(333	)
Research, development and engineering expenses, net		(107	)		(106	)		(343	)		(325	)
Amortization of intangibles		(1	)		(0	)		(1	)		(2	)
Other income (expense), net1)		(8	)		(1	)		(115	)		91
Operating income		232			171			453			429
Income from equity method investment		1			1			4			3
Interest income		3			2			10			4
Interest expense		(24	)		(15	)		(68	)		(41	)
Other non-operating items, net		(11	)		(6	)		(6	)		(5	)
Income before income taxes		201			153			393			389
Income tax expense		(67	)		(47	)		(131	)		(121	)
Net income2)		134			106			262			268
Less: Net income attributable to non-controlling interest		1			1			1			1
Net income attributable to controlling interest	$	134		$	105		$	261		$	267

Net earnings per share – basic	$	1.58		$	1.21		$	3.05		$	3.06
Net earnings per share – diluted	$	1.57		$	1.21		$	3.04		$	3.06

Weighted average number of shares outstanding, net of treasury shares (in millions)		84.9			87.0			85.5			87.2
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions)		85.0			87.2			85.7			87.4

Cash dividend per share – declared	$	0.66		$	0.64		$	1.98		$	1.92
Cash dividend per share – paid	$	0.66		$	0.64		$	1.98		$	1.92

1) The nine months period ending September 30, 2022, includes a gain on sale of property of $80 million in Japan ~~in March 2022~~ and a gain of $21 million from a patent litigation ~~settlement in June 2022.~~settlement.

2) ~~Participating share awards with~~For the ~~right to receive dividend equivalents are (under~~three months periods ended September 30, 2023 and 2022, the ~~two-class method) excluded from~~aggregate transaction gain (loss) included in net income for the ~~earnings per share calculation~~period were $(16) million and $(11) million, respectively. For the nine months periods ended September 30, 2023 and 2022, the aggregate transaction gain (loss) included in net income for the period were $(31) million and $(26) million, respectively.

~~(see Note 11 to the unaudited condensed consolidated financial statements).~~

See Notes to the unaudited Condensed Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in millions)


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Net income	$	106		$	60		$	268		$	322		$	134		$	106		$	262		$	268
Other comprehensive loss before tax:
Other comprehensive income (loss) before tax:
Change in cumulative translation adjustments		(98	)		(49	)		(214	)		(76	)		(33	)		(98	)		(43	)		(214	)
Net change in unrealized components of defined benefit plans		(1	)		0			14			2			1			(1	)		6			14
Other comprehensive loss, before tax		(99	)		(49	)		(200	)		(74	)
Tax effect allocated to other comprehensive loss		0			0			(4	)		(1	)
Other comprehensive loss, net of tax		(99	)		(49	)		(203	)		(74	)
Other comprehensive (loss), before tax														(32	)		(99	)		(37	)		(200	)
Tax effect allocated to other comprehensive income (loss)														(0	)		0			(1	)		(4	)
Other comprehensive (loss), net of tax														(32	)		(99	)		(38	)		(203	)
Comprehensive income		7			11			65			248			102			7			223			65
Less: Comprehensive income attributable to non-controlling interest		0			0			(0	)		1
Less: Comprehensive income (loss) attributable to non-controlling interest														0			0			0			(0	)
Comprehensive income attributable to controlling interest	$	7		$	11		$	65		$	247		$	101		$	7		$	223		$	65

See Notes to the unaudited Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in millions)


	As of						As of
	September 30, 2022			December 31, 2021			September 30, 2023			December 31, 2022
Assets
Cash and cash equivalents	$	483		$	969		$	475		$	594
Receivables, net		1,893			1,699			2,179			1,907
Inventories, net		924			777			982			969
Prepaid expenses and accrued income		218			164			180			160
Other current assets		69			65			63			84
Total current assets		3,587			3,675			3,879			3,714
Property, plant and equipment, net		1,795			1,855			2,067			1,960
Operating lease right-of-use assets		116			132			162			160
Goodwill		1,364			1,387			1,372			1,375
Intangible assets, net		5			8			6			7
Other non-current assets		467			481			500			502
Total assets		7,334			7,537			7,987			7,717

Liabilities and equity
Short-term debt		692			346			590			711
Accounts payable		1,503			1,144			1,858			1,693
Accrued expenses		965			996			1,093			915
Operating lease liabilities - current		35			38			37			39
Other current liabilities		263			297			274			283
Total current liabilities		3,458			2,821			3,851			3,642
Long-term debt		1,037			1,662			1,277			1,054
Pension liability		149			197			152			154
Operating lease liabilities - non-current		81			94			125			119
Other non-current liabilities		118			115			96			121
Total non-current liabilities		1,385			2,067			1,649			1,450
Common stock		102			103			89			91
Additional paid-in capital		1,315			1,329			1,072			1,113
Retained earnings		2,797			2,742			2,242			2,310
Accumulated other comprehensive loss		(610	)		(408	)		(560	)		(522	)
Treasury stock		(1,125	)		(1,133	)		(371	)		(379	)
Total controlling interest's equity		2,478			2,633			2,473			2,613
Non-controlling interest		13			15			13			13
Total equity		2,491			2,648			2,486			2,626
Total liabilities and equity	$	7,334		$	7,537		$	7,987		$	7,717

See Notes to the unaudited ~~condensed consolidated financial statements.~~Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in millions)


	Nine Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2023			2022
Operating activities
Net income	$	268		$	322		$	262		$	268
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		273			297			281			273
Gain on divestiture of property		(80	)		—			—			(80	)
Deferred income taxes		(29	)		5
Other, net		(15	)		(8	)		1			(44	)
Net change in operating assets and liabilities		(168	)		(179	)		(8	)		(168	)
Net cash provided by operating activities		251			437			535			251

Investing activities
Expenditures for property, plant and equipment		(418	)		(303	)		(420	)		(418	)
Proceeds from sale of property, plant and equipment		98			3			1			98
Net cash used in investing activities		(319	)		(301	)		(419	)		(319	)

Financing activities
Net decrease in short-term debt		(110	)		(278	)
Decrease in long-term debt		(51	)		(1	)
Net increase (decrease) in short-term debt								115			(110	)
Proceeds from long-term debt								557			251
Repayment of long-term debt								(533	)		(302	)
Dividends paid		(167	)		(109	)		(169	)		(167	)
Dividends paid to non-controlling interest		(1	)		(1	)
Stock repurchased		(60	)		—			(202	)		(60	)
Common stock options exercised		0			2			1			0
Dividend paid to non-controlling interest								(1	)		(1	)
Net cash used in financing activities		(389	)		(386	)		(232	)		(389	)
Effect of exchange rate changes on cash and cash equivalents		(28	)		(25	)		(3	)		(28	)
Decrease in cash and cash equivalents		(486	)		(275	)
Net decrease in cash and cash equivalents								(119	)		(486	)
Cash and cash equivalents at beginning of period		969			1,178			594			969
Cash and cash equivalents at end of period	$	483		$	903		$	475		$	483

See Notes to unaudited ~~condensed consolidated financial statements.~~Condensed Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) (Dollars in millions)

Common
stock

Additional
paid-in
capital

Retained
earnings

Accumulated
other
comprehensive
loss

Treasury
stock

Total
controlling
interest's
equity

Non-
controlling
interest

Total
equity

Balances at December 31, 2021
$
103

$
1,329

$
2,742

$
(408
)

$
(1,133
)

$
2,633

$
15

$
2,648

Comprehensive Income:

Net income

83

83

0

83

Foreign currency translation
   adjustment

6

6

0

6

Pension liability

8

8

8

Total Comprehensive Income

—

—

83

14

—

97

0

98

Stock repurchased and retired

(0
)

(4
)

(13
)

(18
)

(18
)
Stock-based compensation

2

2

2

Cash dividends declared

(56
)

(56
)

(56
)
Balances at March 31, 2022
$
103

$
1,325

$
2,755

$
(393
)

$
(1,131
)

$
2,659

$
15

$
2,674

Comprehensive Income:

Net income

79

79

0

79

Foreign currency translation
   adjustment

(121
)

(121
)

(1
)

(122
)
Pension liability

3

3

3

Total Comprehensive Income

—

—

79

(119
)

—

(40
)

(1
)

(40
)
Stock repurchased and retired

(0
)

(6
)

(16
)

(22
)

(22
)
Stock-based compensation

2

2

2

Cash dividends declared

(56
)

(56
)

(56
)
Balances at June 30, 2022
$
102

$
1,319

$
2,762

$
(512
)

$
(1,128
)

$
2,544

$
15

$
2,558

Comprehensive Income:

       Net income

105

105

1

106

       Foreign currency translation
         adjustment

(98
)

(98
)

(1
)

(99
)
       Pension liability

(1
)

(1
)

(1
)
Total Comprehensive Income

—

—

105

(98
)

—

7

0

7

Stock repurchased and retired

(0
)

(4
)

(15
)

(20
)

(20
)
Stock-based compensation

3

3

3

Dividends paid to non-controlling interest
   on subsidiary shares

(1
)

(1
)
Cash dividends declared

(56
)

(56
)

(56
)
Balances at September 30, 2022
$
102

$
1,315

$
2,797

$
(610
)

$
(1,125
)

$
2,478

$
13

$
2,491


	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest			Total equity
Balances at December 31, 2022	$	91		$	1,113		$	2,310		$	(522	)	$	(379	)	$	2,613		$	13		$	2,626
Comprehensive Income:
Net income								74									74			0			74
Foreign currency translation adjustment											36						36			0			36
Pension liability											(0	)					(0	)					(0	)
Total Comprehensive Income		—			—			74			35			—			110			0			110
Stock repurchased and retired		(0	)		(9	)		(33	)								(42	)					(42	)
Stock-based compensation														3			3						3
Cash dividends declared								(57	)								(57	)					(57	)
Balances at March 31, 2023	$	91		$	1,105		$	2,295		$	(487	)	$	(376	)	$	2,627		$	14		$	2,641
Comprehensive Income:
Net income								53									53			0			53
Foreign currency translation adjustment											(45	)					(45	)		(1	)		(46	)
Pension liability											4						4						4
Total Comprehensive Income		—			—			53			(41	)		—			12			(0	)		12
Stock repurchased and retired		(0	)		(9	)		(31	)								(41	)					(41	)
Stock-based compensation														3			3						3
Dividends paid to non-controlling interest on subsidiary shares																	0			(1	)		(1	)
Cash dividends declared								(56	)								(56	)					(56	)
Balances at June 30, 2023	$	90		$	1,096		$	2,260		$	(527	)	$	(374	)	$	2,545		$	13		$	2,557
Comprehensive Income:
Net income								134									134			1			134
Foreign currency translation adjustment											(33	)					(33	)		(0	)		(33	)
Pension liability											1						1						1
Total Comprehensive Income		—			—			134			(32	)		—			101			0			102
Stock repurchased and retired		(1	)		(23	)		(95	)								(120	)					(120	)
Stock-based compensation														3			3						3
Dividends paid to non-controlling interest on subsidiary shares																				—			—
Cash dividends declared								(56	)								(56	)					(56	)
Balances at September 30, 2023	$	89		$	1,072		$	2,242		$	(560	)	$	(371	)	$	2,473		$	13		$	2,486


	Common stock		Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest			Total equity			Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest			Total equity
Balances at December 31, 2020	$	103	$	1,329	$	2,471		$	(347	)	$	(1,147	)	$	2,409		$	14		$	2,423
Balances at December 31, 2021																							$	103		$	1,329		$	2,742		$	(408	)	$	(1,133	)	$	2,633		$	15		$	2,648
Comprehensive Loss:
Net income						157									157			0			157									83									83			0			83
Foreign currency translation adjustment									(64	)					(64	)		(0	)		(64	)											6						6			0			6
Pension liability									1						1						1												8						8						8
Total Comprehensive Income		—		—		157			(63	)		—			94			0			94			—			—			83			14			—			97			0			98
Retired and repurchased shared																								(0	)		(4	)		(13	)								(18	)					(18	)
Stock-based compensation												4			4						4															2			2						2
Balances at March 31, 2021	$	103	$	1,329	$	2,628		$	(410	)	$	(1,143	)	$	2,507		$	14		$	2,521
Cash dividends declared																														(56	)								(56	)					(56	)
Balances at March 31, 2022																							$	103		$	1,325		$	2,755		$	(393	)	$	(1,131	)	$	2,659		$	15		$	2,674
Comprehensive Loss:
Net income						104									104			1			105									79									79			0			79
Foreign currency translation adjustment									37						37			(0	)		37												(121	)					(121	)		(1	)		(122	)
Pension liability									1						1						1												3						3						3
Total Comprehensive Loss		—		—		104			38			—			142			1			143			—			—			79			(119	)		—			(40	)		(1	)		(40	)
Retired and repurchased shared																								(0	)		(6	)		(16	)								(22	)					(22	)
Stock-based compensation												5			5						5															2			2						2
Cash dividends declared						(54	)								(54	)					(54	)								(56	)								(56	)					(56	)
Balances at June 30, 2021	$	103	$	1,329	$	2,678		$	(372	)	$	(1,138	)	$	2,600		$	15		$	2,615
Balances at June 30, 2022																							$	102		$	1,319		$	2,762		$	(512	)	$	(1,128	)	$	2,544		$	15		$	2,558
Comprehensive Income:
Net income						60									60			0			60									105									105			1			106
Foreign currency translation adjustment									(49	)					(49	)		(0	)		(49	)											(98	)					(98	)		(1	)		(99	)
Pension liability									0						0						0												(1	)					(1	)					(1	)
Total Comprehensive Income (loss)		—		—		60			(49	)		—			11			0			11			—			—			105			(98	)		—			7			0			7
Retired and repurchased shared																								(0	)		(4	)		(15	)								(20	)					(20	)
Stock-based compensation												3			3						3															3			3						3
Dividends paid to non-controlling interest on subsidiary shares																		(1	)		(1	)																				(1	)		(1	)
Cash dividends declared						(54	)								(54	)					(54	)								(56	)								(56	)					(56	)
Balances at September 30, 2021	$	103	$	1,329	$	2,683		$	(421	)	$	(1,135	)	$	2,558		$	15		$	2,573
Balances at September 30, 2022																							$	102		$	1,315		$	2,797		$	(610	)	$	(1,125	)	$	2,478		$	13		$	2,491

See Notes to the unaudited Condensed Consolidated Financial Statements.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise noted, all amounts are presented in millions of dollars, except for per share amounts)

September 30, ~~2022~~2023

1. BASIS OF PRESENTATION

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, ~~2022.~~2023.

The Condensed Consolidated Balance Sheet as of December 31, ~~2021~~2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.

The Company has one reportable segment, which includes Autoliv’s airbag and seatbelt products and components.

Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods have been reclassified to conform to current year presentation.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 filed with the SEC on February ~~22, 2022.~~16, 2023.

2. NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

Adoption of new accounting standards

~~In November 2021, the FASB issued ASU 2021-10,~~ ~~Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance,~~ which increases the transparency of government assistance, including the disclosure of (1) the types of assistance, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. ASU 2021-10 is effective for business entities for annual periods beginning after December 15, 2021, and early adoption is permitted. The amendments in this update should be applied either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. The Company adopted this standard prospectively on January 1, 2022 and the adoption of this standard did not have a material impact on our Consolidated Financial Statements or related disclosures.

~~Accounting standards issued but not yet adopted~~

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50), Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. The amendments in this update do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. During the fiscal year of adoption, the information on the key terms of the programs and the balance sheet presentation of the program obligations, which are annual disclosure requirements, should be disclosed in each interim period. The amendments in this update should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on ~~rollforward~~roll-forward information, which should be applied prospectively.

The Company ~~is currently assessing the impact that~~adopted ASU 2022-04 ~~will have~~as of January 1, 2023. The Company has an agreement with an external payment service provider to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are recorded in Accounts Payable in the Condensed Consolidated Balance Sheet until payment has been effected. The Company has undertaken to make sure the payment is effected on the original invoice maturity date. The payment terms range between 30 days and 165 days, with a weighted average of 127 days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its ~~consolidated financial statements and will adopt~~supplier finance program for the ~~amendments~~nine months period ended September 30, 2023 is as follows (dollars in ~~this update upon~~millions):


	Nine Months Ended
	September 30, 2023
Confirmed obligations outstanding at beginning of the period	$	314
Invoices confirmed during the period		1,046
Confirmed invoices paid during the period		(1,030	)
Confirmed obligations outstanding at end of the period1)	$	330

1) Amount of obligations confirmed under the ~~effective dates.~~program that remains unpaid by the Company is reported as Accounts Payable in the Condensed Consolidated Balance Sheet.

Accounting standards issued but not yet adopted

None.

3. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.

All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with all derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of September 30, ~~2022~~2023 and December 31, ~~2021~~2022 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.

Derivatives designated as hedging instruments

There were no derivatives designated as hedging instruments as of September 30, ~~2022~~2023 or December 31, ~~2021~~2022 related to the Company's operations.

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives ~~not~~not designated as hedging instruments outstanding as of September 30, ~~2022~~2023 and December 31, ~~2021~~2022 were foreign exchange swaps.

For the three months ~~period~~periods ended September 30, ~~2022~~2023 and ~~2021,~~2022, the gains (losses) recognized in other non-operating items, net were $($912) million and $(29) million, respectively, for derivative instruments not designated as hedging instruments. For the nine months ~~period~~periods ended September 30, ~~2022~~2023 and ~~2021,~~2022, the gains (losses) recognized in other non-operating items, net were $($2421) million and $(4024) million, respectively. The realized part of the losses referred to above is reported under financing activities in the statement of cash flows.

For the three and nine months periods ended September 30, ~~2022~~2023 and September 30, ~~2021,~~2022, the gains (losses) recognized as interest expense were immaterial.

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).

As of

September 30, 2022

December 31, 2021

Fair Value Measurements

Fair Value Measurements

Description

Nominal
volume

Derivative
asset
(Other
current assets)

Derivative
liability
(Other
current
liabilities)

Nominal
volume

Derivative
asset
(Other
current assets)

Derivative
liability
(Other
current
liabilities)

Derivatives not designated as hedging
   instruments

Foreign exchange swaps, less
   than 6 months

$
2,258

1)
$
11

2)
$
51

3)

$
1,348

4)
$
5

5)
$
16

6)
Total derivatives not designated
   as hedging instruments

$
2,258

$
11

$
51

$
1,348

$
5

$
16


	As of
	September 30, 2023									December 31, 2022
				Fair Value Measurements									Fair Value Measurements
Description	Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)			Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	2,016	1)	$	13	2)	$	25	3)	$	2,616	4)	$	22	5)	$	15	6)
Total derivatives not designated as hedging instruments	$	2,016		$	13		$	25		$	2,616		$	22		$	15

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $~~2,258~~2,016 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $1113 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $5125 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $~~1,326~~2,616 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $522 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $1615 million.

Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.

During the first quarter of 2023, the Company issued a five-year €500 million Eurobond. These notes were issued as green bonds. In the second quarter of 2023, the Company repaid the €500 million for the five-year Eurobond that matured in June 2023.

The fair value and carrying value of debt is summarized in the table below (dollars in millions).

As of

September 30, 2022

December 31, 2021

Carrying
value1)

Fair
value

Carrying
value1)

Fair
value

Long-term debt

Bonds

$
767

$
737

$
1,330

$
1,400

Loans

270

274

332

347

Total long-term debt

1,037

1,011

1,662

1,747

Short-term debt

Short-term portion of long-term debt

491

479

332

333

Overdrafts and other short-term debt

202

202

14

14

Total short-term debt

$
692

$
681

$
346

$
348


	As of
	September 30, 2023				December 31, 2022
	Carrying value1)		Fair value		Carrying value1)		Fair value
Long-term debt
Bonds	$	1,000	$	980	$	767	$	735
Loans		277		282		287		292
Total long-term debt		1,277		1,262		1,054		1,027

Short-term debt
Short-term portion of long-term debt		297		295		533		527
Overdrafts and other short-term debt		293		293		178		178
Total short-term debt	$	590	$	588	$	711	$	705

1) Debt as reported in balance sheet.

Assets and liabilities measured at fair value on a nonrecurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.

For the three and nine months periods ended September 30, ~~2022~~2023 and September 30, ~~2021,~~2022, the Company did not record any material impairment charges on its long-lived assets for its operations.

1314

4. INCOME TAXES

The effective tax rate for the three months period ended September 30, ~~2022~~2023 was ~~30.8~~33.4% compared to ~~30.9~~30.8% for the three months period ended September 30, ~~2021.~~2022. Discrete tax items, net for the three months period ended September 30, 2023 had an unfavorable impact of 0.2%. Discrete tax items, net for the three months period ended September 30, 2022 had an unfavorable impact of 1.4%. ~~Discrete tax items, net for the three months period ended September 30, 2021 had an unfavorable impact of~~ ~~5.7~~%.

The effective tax rate for the nine months period ended September 30, ~~2022~~2023 was ~~31.1~~33.4% compared to ~~29.5~~31.1% for the nine months period ended September 30, ~~2021.~~2022. Discrete tax items, net for the nine months period ended September 30, 2023 had a favorable impact of 0.6%. Discrete tax items, net for the nine months period ended September 30, 2022 had an unfavorable impact of 1.2~~%. Discrete tax items, net for the nine months period ended September 30, 2021 had an unfavorable impact of~~ ~~1.0~~%.

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before ~~2010.~~2012.

As of September 30, ~~2022,~~2023, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the nine months period ended September 30, ~~2022,~~2023, the Company recorded a net increase of $7 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years. Of the total unrecognized tax benefits of $5653 million recorded as of September 30, ~~2022,~~2023, $1716 million is classified as current tax payable within Other current liabilities and $3937 million is classified as non-current tax payable within Other non-current liabilities on the Condensed Consolidated Balance Sheet.

~~On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains a number of revisions to the Internal Revenue Code, including a~~ 15~~% corporate alternative minimum income tax and a~~ 1~~% excise tax on corporate stock repurchases in tax years beginning after December 31, 2022.~~ While these tax law changes have no immediate effect and are not expected to have a material adverse effect on our results of operations going forward, we will continue to evaluate its impact as further information becomes available.

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):


	As of						As of
	September 30, 2022			December 31, 2021			September 30, 2023			December 31, 2022
Raw materials	$	450		$	395		$	454		$	445
Work in progress		321			283			325			350
Finished products		238			190			289			265
Inventories		1,009			868			1,068			1,060
Inventory valuation reserve		(85	)		(91	)		(87	)		(91	)
Total inventories, net of reserve	$	924		$	777		$	982		$	969

1415

6. RESTRUCTURING

As of September 30, ~~2022,~~2023, approximately $7105 million ~~out~~ of the $34122 million in total reserve balance can be attributed to the structural efficiency program initiated in the second quarter of 2020 and mainly relates to Europe. This program is expected to be concluded in 2022. Approximately $15 ~~million of the~~ total reserve balance can be attributed to footprint optimization activities in Europe, ~~initiated in~~mainly Germany and the ~~third quarter of 2020.~~United Kingdom (UK) amounting to $89 million. These activities are expected to be concluded during 2024 and 2025.

The provision charges for the three and nine months periods ended September 30, 2023 mainly relate to restructuring activities in ~~2023.~~Germany and UK. The cash payments for the three and nine months ~~period~~periods ended September 30, ~~2022~~2023 relate to restructuring activities in Europe. The majority of the cash payments for the nine months period ended September 30, 2022 ~~relate~~mainly related to footprint optimization activities in Asia.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Reserve at beginning of the period	$	45		$	107		$	88		$	126		$	127		$	45		$	32		$	88
Provision - charge		2			10			14			11			8			2			118			14
Provision - reversal		(1	)		(5	)		(1	)		(6	)		(1	)		(1	)		(1	)		(1	)
Cash payments		(9	)		(7	)		(59	)		(23	)		(9	)		(9	)		(24	)		(59	)
Translation difference		(3	)		(3	)		(8	)		(6	)		(3	)		(3	)		(2	)		(8	)
Reserve at end of the period	$	34		$	102		$	34		$	102		$	122		$	34		$	122		$	34

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability and warranty issues. For further explanation, see Note 9. Contingent Liabilities below.

For the three and nine months periods ended September 30, ~~2022,~~2023, provisions ~~and cash payments~~ primarily relate to warranty related ~~issues.~~issues and cash payments mainly relate to the Andrews litigation settlement. For the three and nine months periods ended September 30, ~~2021,~~2022, provisions and cash payments primarily related to ~~recall~~warranty related issues. Cash payments in the nine months period ended September 30, 2021 mainly related to the recall by Toyota Motor Corp. of vehicles equipped with a certain model of the Company’s side curtain airbag that was settled and resolved in April 2021. As of September 30, ~~2022,~~2023, the reserve for product related liabilities mainly ~~relates~~relate to recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in accrued expenses and ~~Other~~other non-current liabilities on the Condensed Consolidated Balance Sheets. A majority of the Company’s product-related liabilities as of September 30, ~~2022~~2023 are covered by insurance. Insurance receivables are included within ~~Other~~other current assets and ~~Other~~other non-current assets on the Condensed Consolidated Balance Sheets. As of September 30, ~~2022,~~2023, the Company had total insurance receivables of $~~149~~120 million. ~~The total product liability reserve currently is less than the product liability insurance receivable because the timing of insurance recoveries does not match the timing of our product liability.~~


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Reserve at beginning of the period	$	145		$	103		$	144		$	341		$	178		$	145		$	145		$	144
Change in reserve		5			18			17			23			3			5			46			17
Cash payments		(3	)		(1	)		(12	)		(243	)		(61	)		(3	)		(71	)		(12	)
Translation difference		(2	)		(1	)		(3	)		(1	)		(0	)		(2	)		(1	)		(3	)
Reserve at end of the period	$	146		$	120		$	146		$	120		$	120		$	146		$	120		$	146

1516

8. RETIREMENT PLANS

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):

U.S. Plans

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Service cost

$
—

$
2

$
—

$
6

Interest cost

3

3

9

7

Expected return on plan assets

(7
)

(4
)

(11
)

(13
)
Amortization of actuarial loss

0

0

0

1

Settlement loss

2

3

3

3

Net Periodic (Benefit) Cost

$
(2
)

$
3

$
1

$
4

Non-U.S. Plans

Three Months Ended September 30,

Nine Months Ended September 30,

2022

2021

2022

2021

Service cost

$
2

$
3

$
7

$
9

Interest cost

1

1

4

4

Expected return on plan assets

(0
)

(1
)

(1
)

(1
)
Amortization of actuarial loss

1

0

1

1

Settlement gain

—

—

(3
)

—

Curtailment gain

—

—

(2
)

—

Net Periodic Cost

$
4

$
4

$
6

$
13


U.S. Plans	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Interest cost	$	3		$	3		$	9		$	9
Expected return on plan assets		(3	)		(7	)		(8	)		(11	)
Settlement loss		1			2			1			3
Net periodic benefit cost	$	1		$	(2	)	$	2		$	1
Non-U.S. Plans	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Service cost	$	2		$	2		$	7		$	7
Interest cost		2			1			7			4
Expected return on plan assets		(1	)		(0	)		(2	)		(1	)
Amortization of actuarial loss		1			1			1			1
Settlement/curtailment gain		0			(0	)		0			(5	)
Net periodic benefit cost (gain)	$	4		$	4		$	13		$	6

The Service cost ~~and Amortization of prior service cost components~~component in the ~~tables~~table above ~~are~~is reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components - Interest cost, Expected return on plan assets, Amortization of actuarial loss, Settlement loss (gain) and Curtailment gain - are reported as Other non-operating items, net in the Consolidated Statements of Income.

~~Settlement~~The Company triggered settlement accounting ~~has been triggered~~ for the primary U.S. pension ~~plans~~plan in the third quarter of ~~2022~~2023 because the lump-sum payments made during the ~~third~~ quarter exceeded the sum of ~~service~~Service cost and ~~interest~~Interest cost for ~~these~~this U.S. ~~plans.~~plan. Due to the settlement accounting, the obligation and plan assets for ~~these~~the primary U.S. ~~plans~~plan have been re-measured as of September 30, ~~2022,~~2023, which resulted in ~~a higher~~an immaterial change in the net pension liability ~~of $~~2 ~~million~~ compared to ~~June 30,~~December 31, 2022. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from ~~4.76~~5.32% ~~in the second quarter~~ to ~~5.56~~5.98% in the third ~~quarter.~~quarter of 2023. The expected long-term rate of return on plan asset is unchanged at 5.05%.

treasury stock were utilized by the Plan. During the three and nine months periods ended September 30, 2022, approximately 5 thousand and 144 thousand shares, respectively, of common stock from the treasury stock were utilized by the Plan. ~~During the three and nine months periods ended September 30, 2021, approximately~~ 15

~~thousand and~~ ~~132~~ ~~thousand shares, respectively, of common stock from the treasury stock were utilized by the Plan.~~

Contract assets relate to the Company's rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts and is included in Other current assets in the Condensed Consolidated Balance Sheet. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. The net change in the contract assets balance, reflecting the adjustments needed to align revenue recognition for work completed but not billed, for the three and nine months periods ended September 30, ~~2022~~2023 and September 30, ~~2021,~~2022, were not material in any period.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes thereto included elsewhere herein and with our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 filed with the United States Securities and Exchange Commission (the “SEC”) on February ~~22, 2022.~~16, 2023. Unless otherwise noted, all dollar amounts are in millions.

Autoliv, Inc. (“Autoliv” or the “Company”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden. The Company functions as a holding corporation and owns two principal operating subsidiaries, Autoliv AB and Autoliv ASP, Inc.

Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels and pedestrian protection systems.

Autoliv’s filings with the SEC, including this Quarterly Report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K, proxy statements and all of our other reports and statements, and amendments thereto, are available free of charge on our corporate website at www.autoliv.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC (generally the same day as the filing).

The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.

Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales”, “Trade working capital”, “Free cash flow”, “Net debt”, “Leverage ratio”, “Adjusted operating income”, “Adjusted operating margin” and “Adjusted earnings per share, diluted” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.

As the market leader, the Company is building resilience and strength in turbulent times. The Company believes these actions enable it to build an even more competitive position. Despite the challenging macro environment, the third quarterOur performance enables the Company to update its full year 2022 adjusted operating margin indication towards the upper end of the 6.0-7.0% range. The Company's actions initiated earlier in the year are now delivering results, especially the Company's price adjustments to compensate for the inflationary pressures and its cost reduction activities.

~~The Company achieved a strong recovery~~ in the third quarter ~~delivering record~~was very encouraging. Our organic sales ~~for a third quarter~~growth continued to significantly outperform LVP and ~~increasing~~ the adjusted operating income was a new third quarter record since the spin-off in 2018.

We are pleased that our strong performance in the third quarter was broad based, with improvements in several key areas - both year-over-year and sequentially - including gross and operating margin, labor efficiency and SG&A and RD&E costs in relation to ~~7.5% despite~~sales. Cash flow was strong, and the debt leverage remained well within our target range while maintaining our dividend and almost tripling the number of shares repurchased compared to the second quarter.

We continue to work hard to secure a strong medium- and long-term competitive position. In the quarter, we detailed a large part of our structural cost reduction intentions of reducing our indirect workforce by up to 2,000. In addition, the ongoing reorganization of our global functions and European operations is expected to lead to a reduced normalized tax rate. It is also encouraging for our medium- and long-term potential that we continue to improve our position in China with the fast-growing domestic OEMs. In the first nine months, we increased our sales to this group by more than 50% year over year.

We increase our full year sales indication to reflect that LVP has developed better than expected, even with the UAW strike in the U.S. We have continued to see an improvement of supply chain stability throughout the year, with reduced customer call off volatility. However, the improvement is slower than we had expected, as it deteriorated somewhat in Europe in the third quarter. This, together with the higher sales and adverse foreign currency ~~effects~~exchange development, means that we expect a fourth quarter adjusted operating margin (Non-U.S. GAAP measure) improvement year-over-year of ~~almost~~around 1.5-2pp, in line with the previously communicated improvement pattern of around 2pp and challenges from inflationary pressure and high call-off volatility. This is an important step towards the Company's medium-term targets. The Company also achieved another strong organic sales outperformance versus LVP, despite an unfavorable regional LVP mix development.each quarter throughout 2023.

~~During~~Our performance in the first nine months and the outlook for the final quarter of the ~~Company retained~~year makes us confident that we will deliver a ~~strong balance sheet, the Company's~~substantial full year increase in sales, operating cash flow ~~recovered compared to recent quarters~~ and its leverage ratio improved compared to the previous quarter. The Company has reached agreements in more than 90% of the raw material related price adjustment discussions that the Company initiated earlier this year. Price adjustment discussionsadjusted operating income. Together with the ~~Company's customers~~advancement of our structural cost reduction activities, the improving position with fast growing OEMs, the continued gradual improvement of supply chain stability, and the development of inflation compensation, we have a solid foundation for ~~cost increases related to labor, logistics and utilities are progressing.~~

~~The Company expects~~a continued ~~sequential margin improvement~~strong development in the ~~fourth quarter, due~~years to positive seasonal effects, price increases, cost and headcount activities and somewhat lower volatility in customer call-offs. The gradual improvement in the Company's performance throughout the year underlines the Company's confidence in reaching itscome, that support our medium-term targets. ~~In addition, the Company expects that its balance sheet and positive cash flow trend will allow for increasing shareholder returns.~~

Financial highlights in the ~~third quarter~~three months period ended September 30, 2023

Change figures below compare to the same period of ~~2022~~the previous year, except when stated otherwise.

11% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)

9.4% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)

$1.66 adjusted EPS (Non-U.S. GAAP measure, see reconciliation table below), 35% increase

Change figures below compare to the same period of the previous year, except when stated otherwise.

~~Change figures below compare to the same period of the previous year, except when stated otherwise.~~

Business and market condition update ~~relating to COVID-19, the war in Ukraine and other market conditions~~

~~The COVID-19 pandemic continued to impact the Company's business in~~for the third quarter ~~of 2022 through limited LVP by the Company's customers caused by global semiconductor shortage and other industry supply chain disruptions. Third quarter of 2022 saw global LVP~~2023

Global light vehicle production growth ~~year over year by around 29%~~year-over-year was 3.8% (according to S&P Global October ~~2022). Supply chain disruptions that led~~2023) in the third quarter, with all major regions growing except China. We saw continued gradual improvement in call-off volatility as supply chains are less strained compared to a year earlier. However, volatility is still significantly higher than pre-pandemic levels, and low customer demand visibility and ~~material~~ changes to customer call-offs with short notice ~~negatively impacted~~still had a negative impact on our production efficiency and profitability in the quarter. ~~Rising raw material costs amounted~~We expect the current industry-wide supply chain disruptions to ~~more than 4pp in operating margin headwind~~continue to fade in the ~~third~~fourth quarter of ~~which~~2023, but not enough to return to pre-pandemic levels of efficiency by year-end.

In Q3 2023, cost pressures from labor, logistics, utilities, and other items had a ~~large part~~negative impact on our profitability. Most of the inflationary cost pressure was offset by ~~commercial~~ customer ~~recoveries, including retroactive compensations.~~

~~Direct COVID-19 related costs, such as personal protective equipment, quarantine costs~~price and ~~similar items, were around $1 million~~other compensations in the ~~third quarter of 2022. Governmental support~~quarter. Raw material cost inflation and its impact on our profitability was negligible in ~~connection with furloughing, short-term work weeks, and other similar activities were less than $1 million in the quarter.~~

The Company expects the current industry-wide semiconductor supply shortage to be a limiting factor for the global LVP recovery in 2022. The Company also expects that the current price environment could lead to raw material costs of up to 5pp in operating margin headwind for the full year of 2022. The Company has reached agreements in more than 90% ofQ3 2023. We expect the raw material ~~related~~ price ~~adjustment discussions that the Company initiated earlier this year. Price adjustment discussions~~changes in 2023 to be largely reflected in price changes in our products, albeit with ~~the Company's customers for~~delays of several months. We also expect continued cost ~~increases related~~pressure from broad based inflation relating to labor, logistics, utilities and ~~utilities are progressing. The Company believes product price increases will~~other items, especially in Europe. We continue to ~~gradually~~execute on productivity and cost reduction activities to offset ~~raw~~these cost pressures, and we continue to have challenging discussions with our customers on non-raw material cost inflation.

~~In response~~Autoliv expects its tax rate for full year 2023 to be lower than previously anticipated. The full year tax rate is now projected to be around 20% for full year 2023. This is due to the ~~increased challenging market conditions,~~ongoing reorganization of our global functions and European operations, which is expected to lead to a reduced tax rate for 2023. These changes are also expected to reduce the ~~Company continue with strict hiring and cost control measures, and accelerated cost savings and footprint activities. The situation is monitored closely, and further actions are being evaluated.~~

~~The war in Ukraine~~normalized tax rate to be within a range of around 25-30% from 2024 onward.

The ~~direct~~UAW strike has had negligible impact on our sales and profitability in the third quarter, with around $2 million in lost sales. We estimate that the current strike actions, as known as of October 19, 2023 by UAW are currently negatively impacting our weekly sales by around $6 million.

In June 2023, Autoliv communicated a cost reduction framework which included the ~~war in Ukraine~~intention of reducing our indirect headcount by up to 2,000. We announced more details on these initiatives on July 13, 2023 and followed up with another announcement with details on October 5, 2023. Based on the ~~Company's business has been relatively limited. In 2021, sales~~intended work force reductions in ~~Russia were less than 1.0% of total sales. Autoliv has one facility with fewer than 100 employees in Russia. The operations are currently idled. Autoliv net assets in Russia, mainly USD cash items,~~these announcements, we estimate that the annual cost reductions will amount to around ~~$11 million. Autoliv has no operations~~$35 million in ~~Ukraine.~~2024, $65 million in 2025 and reaching $85 million when fully implemented. We expect to announce further details, as plans materialize further.

We expect 2024 to be an important step towards our medium-term target of 12% adjusted operating margin (Non-U.S. GAAP measure). We intend, as usual, to come back with a full year indication in connection with our fourth quarter earnings release in January next year.

The following table shows some of the key ratios management uses internally to analyze the Company's current and future financial performance and core operations as well as to identify trends in the Company’s financial conditions and results of operations. The Company has provided this information to investors to assist in meaningful comparisons of past and present operating results and to assist in highlighting the results of ongoing core operations. These ratios are more fully explained below and should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K and the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

The Company's management uses the Return on capital employed (ROCE) and Return on total equity (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. The Company believes ROCE is a useful indicator of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.

ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.

Outstanding receivables and outstanding inventory less outstanding payables. See calculation of this non-U.S. GAAP measure in the table below.

1)2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales.

2)9) Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-U.S. GAAP measure to U.S. GAAP below.

6)11) Operating income and income from equity method investments, relative to average capital employed.

8) ~~Outstanding receivables and outstanding inventory less outstanding payables. See calculation of this non-U.S. GAAP measure in the table below.~~

9) ~~Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales.~~

three months period ended September 30, ~~2022~~2023 COMPARED WITH three months period ended September 30, ~~2021~~2022

~~All~~Sales for all major product categories increased organically (Non-U.S. GAAP measure) in the quarter. The largest contributor to the increase was ~~inflatable curtains and~~ steering wheels, followed by ~~passenger~~inflatable curtains, side airbags, and ~~side~~passenger airbags.

The main contributor to Seatbelt ~~products~~Products organic sales growth (Non-U.S. GAAP measure) was Asia excl. China and Europe, followed by ~~Europe and~~ Americas.

~~The Company's~~Our global organic sales (Non-U.S. GAAP measure, see reconciliation table below) increased by ~~32.5%~~11% compared to the global LVP increase of ~~28.8%~~3.8% (according to S&P Global, ~~Oct 2022)~~October 2023). The ~~3.7pp~~7pp outperformance was mainly driven by price increases and new product ~~launches, partly offset by negative geographical mix effects.~~ launches.

Autoliv organic sales growth outperformed LVP growth by ~~around 11pp~~15pp in ~~Europe,~~Asia excl. China, by ~~around 7pp~~6pp in China, by 3pp in Americas ~~by around 6pp in Japan~~ and by ~~around 1pp in China. The Company underperformed by around~~ 2pp in ~~Rest of Asia.~~Europe.

1) Non-U.S. GAAP measure, excluding ~~costs for~~effects from capacity ~~alignment~~alignments, antitrust related matters and ~~gain on sale of property.~~the Andrews litigation settlement.

2) Assuming dilution, when applicable, and net of treasury shares. ~~Participating share awards with right to receive dividend equivalents are under the two-class method excluded from the EPS calculation.~~

Gross profitincreased by ~~$83~~$82 million, and the gross margin increased by ~~0.4pp~~1.3pp compared to the same quarter ~~2021.~~2022. The gross profit increase was primarily driven by price increases, ~~and~~ volume growth, lower costs for material and premium freight. This was partly offset by ~~higher~~increased costs for ~~raw materials, unfavorable foreign currency translation effects~~personnel related to volume growth and ~~higher costs for premium freight.~~wage inflation.

S,G&Acosts increased by $4$13 million compared to the prior year, mainly due to increased costs for personnel ~~and IT expenses partly offset by positive~~as well as adverse foreign currency translation effects. S,G&A costs in relation to sales ~~decreased from 5.5% to~~was unchanged at 4.6%.

R,D&E, netcosts ~~increased by around $8 million~~was almost unchanged compared to the prior year, ~~mainly due to~~as higher costs for personnel ~~prototypes~~ and ~~tools partly~~adverse foreign currency translation effects were almost offset by higher engineering income. R,D&E, net, in relation to sales decreased from ~~5.3%~~4.6% to ~~4.6%~~4.1%.

Other income (expense), net was ~~unchanged~~negative $8 million compared to negative $1 million in the ~~prior~~same period last year. The difference was mainly related to higher capacity alignment accruals in the third quarter of 2023.

Operating income increased by ~~$72~~$61 million compared to the same period in ~~2021,~~2022, mainly ~~as a consequence of~~due to the increase in gross profit, partly offset by higher costs for S,G&A.

Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $70 million compared to the prior year, mainly due to higher gross profit, partly offset by the higher costs for S,G&A.

Financial and non-operating items, net, was negative $30 million compared to negative $18 million a year earlier. The difference was mainly due to increased interest expense as an effect of higher debt and higher interest rates and foreign currency revaluation effects.

Income before taxes increased by $49 million compared to the prior year, mainly due to the increase in operating income, partly offset by a larger Financial and non-operating items, net.

Tax rate was 33.4% compared to 30.8% in the same period last year. Discrete tax items, net, increased the tax rate this quarter by 0.2pp. Discrete tax items increased the tax rate by 1.4pp in the same period last year.

Earnings per share, diluted increased by $0.36 compared to a year earlier. The main drivers were $0.49 from operating income partly offset by $0.10 from financial items.

nine months period ended September 30, 2023 COMPARED WITH nine months period ended September 30, 2022

Sales for all major product categories increased organically (Non-U.S. GAAP measure) in the first nine months. The largest contributor to the increase was inflatable curtains and steering wheels, followed by side airbags and passenger airbags.

The main contributor to Seatbelt Products organic sales growth (Non-U.S. GAAP measure) was Europe, followed by Americas, Asia excl. China, and China.

Our global organic sales (Non-U.S. GAAP measure, see reconciliation table below) increased by 19% compared to the global LVP increase of 9.1% (according to S&P Global, October 2023). The 10pp outperformance was mainly driven by new product launches and price increases.

Autoliv outperformed LVP by around 15pp in Asia excl. China, by 12pp in China, by 6pp in Europe and in Americas.

1) Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters, the Andrews litigation settlement, and gain on sale of property in the first quarter of 2022.

Gross profit increased by $294 million, and the gross margin increased by 1.4pp compared to the same period in 2022. The gross profit increase was primarily driven by price increases, volume growth and lower costs for premium freight. This was partly offset by increased costs for personnel related to higher volumes and wage inflation as well as adverse effects from foreign currency translation and higher costs for energy.

S,G&A costs increased by $46 million compared to the prior year, mainly due to increased costs for personnel projects. S,G&A costs in relation to sales decreased from 5.1% to 4.9%.

R,D&E, net costs increased by around $19 million compared to the prior year, mainly due to higher costs for personnel. R,D&E, net, in relation to sales decreased from 5.0% to 4.4%.

Other income (expense), net was negative $115 million compared to positive $91 million in the prior year. The prior year was positively impacted by around an $80 million gain from the sale of a property in Japan and around $20 million from a patent litigation settlement, partly offset by around $10 million in capacity alignment provisions for the closure of a plant in South Korea while the first nine months of 2023 was negatively impacted by around $105 million in accruals for capacity alignments.

Operating income increased by $24 million compared to the same period in 2022, mainly due to higher gross profit, partly offset by the changes in Other income (expense), net and the higher costs for S,G&A and R,D&E, net.

Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table ~~below~~) below) increased by ~~$70~~$221 million compared to the prior year, mainly due to higher gross profit, partly offset by the higher costs for S,G&A and R,D&E, net.

Financial and non-operating items, net, was $6negative $60 million ~~more~~compared to negative ~~compared to~~$40 million a year earlier, mainly due to ~~adverse currency translation effects.~~increased interest expense as an effect of higher debt and higher interest rates.

Income before taxes increased by ~~$66~~$3 million compared to the prior year, mainly due to the higher operating income partly offset by ~~higher costs for financial and non-operating items, net.~~the increased interest expense.

Tax ratewas ~~30.8%, almost unchanged~~33.4% compared to ~~30.9%~~31.1% in the same period last year. Discrete tax items, net, ~~increased~~decreased the tax rate this ~~quarter~~year by ~~1.4pp.~~0.6pp. Discrete tax items increased the tax rate by ~~5.6pp in the same period last year.~~

~~Earnings per share, diluted~~ increased by $0.53 compared to a year earlier, where the main driver was $0.59 from higher adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) partly offset by $0.06 from financial and non-operating items.

~~nine months period ended September 30, 2022 compared with nine months period ended September 30, 2021~~

~~The largest contributors to the organic growth (Non-U.S. GAAP measure) was steering wheels and inflatable curtains, followed by passenger airbags and side airbags.~~

~~The main contributors to Seatbelt products organic growth (Non-U.S. GAAP measure) was China and Europe, followed by Rest of Asia and Americas.~~

The Company's global organic sales (Non-U.S. GAAP measure, see reconciliation table below) increased by around 12% compared to the LVP increase of around 8% (according to S&P Global, Oct 2022). The 3.8pp outperformance was driven by new product launches and price increases partly offset by negative geographical mix. Autoliv outperformed LVP by around 13pp in Europe, by around 8pp in Japan, and by around 6pp in Americas. The Company underperformed by around 2pp in China and by around 5pp in Rest of Asia.

1) ~~Non-U.S. GAAP measure, excluding costs for capacity alignment and gain on sale of property.~~

2) ~~Assuming dilution, when applicable, and net of treasury shares. Participating share awards with right to receive dividend equivalents are under the two-class method excluded from the EPS calculation.~~

~~Gross profit~~ decreased by $146 million, and the gross margin decreased by 3.4pp compared to the same period 2021. The gross profit decrease was primarily driven by adverse effects from higher costs for raw material and premium freight, adverse foreign currency translation effects partly offset by price increases.

~~S,G&A~~ ~~costs increased by $13 million compared to the prior year, mainly relating to investments in personnel and IT and improvement projects partly offset by positive currency translation effects.~~

~~R,D&E, net~~ ~~costs increased by $14 million, mainly due to lower engineering income. R,D&E, net, in relation to sales was close to unchanged at 5.0%.~~

~~Other income (expense), net~~ improved by $96 million compared to the prior year, mainly due to around $80 million gain from the sale of a property in Japan and around $20 million from a patent litigation settlement partly offset by around $10 million in capacity alignment provision for the closure of a plant in South Korea.

~~Operating income~~ ~~decreased by $71 million compared to the same period in 2021, mainly as a consequence of the lower gross profit, partly offset by the improved Other income (expense).~~

~~Adjusted operating income~~ ~~(Non-U.S. GAAP measure, see reconciliation table below) decreased by $141 million compared to the prior year, mainly due to lower gross profit.~~

~~Financial and non-operating items, net, improved by $4 million, mainly due to lower interest expenses due to lower debt in 2022 compared to 2021.~~

~~Income before taxes~~ ~~decreased by $67 million compared to the prior year, mainly due to the lower operating income partly offset by improved financial and non-operating items, net.~~

~~Tax rate~~ was 31.1%, compared to 29.5% in the same period last year, mainly due to unfavorable country mix. In addition, discrete tax items, net, increased the tax rate this year by 1.2pp. Discrete tax items, net increased the tax rate by 1.0pp1.2pp in the same period last year.

Earnings per share, diluted decreased by ~~$0.60~~$0.02 compared to a year ~~earlier, where~~earlier. The main drivers behind the ~~main driver was $1.15~~decrease were $0.17 from financial items and $0.14 from lower ~~adjusted~~ operating income, ~~(Non-U.S. GAAP measure, see reconciliation table below)~~ partly ~~mitigated~~offset by ~~$0.53~~$0.23 from ~~capacity alignment.~~taxes.

The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial position, results of operations or cash flows. The Company’s future contractual obligations have not changed materially from the amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 filed with the SEC on February ~~22, 2022.~~16, 2023.

Trade working capital~~(Non-U.S.~~ (Non-U.S. GAAP measure, see ~~reconciliation~~calculation table below) ~~was reduced~~decreased by ~~$107~~$11 million compared to the same period last year, where the main ~~driver was related to $427~~drivers were $354 million in higher accounts ~~payables,~~payable partly offset by ~~$318~~$286 million in higher receivables and $58 million in higher inventories. Compared to the second quarter of 2023, trade working capital increased by $11 million, driven by $35 million in higher inventories, partly offset by $14 million in higher accounts payable and $10 million in lower receivables.

Operating cash flow ~~increased~~decreased by ~~$43~~$30 million to ~~$232~~$202 million compared to the same period last year, mainly due to ~~higher net income and positive~~less favorable working capital effects partly offset by ~~adverse effects from changes in deferred income taxes.~~higher net income.

Capital expenditure, net~~increased~~ decreased by ~~$52~~$12 million ~~which mainly was due~~compared to ~~investments related to footprint and capacity expansions. The higher level reflects a temporary catch up of investments that were delayed during~~ the ~~pandemic.~~same period the previous year. Capital expenditure, net in relation to sales was ~~7.1%~~5.8% vs. ~~6.0%~~7.1% a year earlier.

Free cash flow (Non-U.S. GAAP measure, see ~~reconciliation~~calculation table below) was ~~$68~~$50 million compared to ~~$77~~$68 million ~~a year earlier.~~in the same period prior year. The ~~decline~~decrease was mainly due to the ~~higher capital expenditure, net,~~lower operating cash flow partly offset by lower capital expenditure, net.

Cash conversion (Non-U.S. GAAP measure) defined as free cash flow (Non-U.S. GAAP measure, see calculation table below) in relation to net income, was 37% in the ~~higher operating cash flow.~~period.

Net debt~~(Non-U.S.~~ (Non-U.S. GAAP measure, see reconciliation table below) was ~~$1,288~~$1,375 million as of September 30, ~~2022,~~2023, which was ~~$123~~$87 million higher than a year earlier.

Liquidity position. As of September 30, ~~2022, the Company's~~2023, our cash balance was around $0.5 billion, and including committed, unused loan facilities, ~~its~~our liquidity position was around $1.6 billion.

Leverage ratio~~(Non-U.S.~~ (Non-U.S. GAAP measure, see ~~reconciliation~~calculation table below). As of September 30, ~~2022,~~2023, the Company had a leverage ratio of ~~1.6x,~~1.3x compared to ~~1.1x~~1.6x as of September 30, ~~2021,~~2022, as ~~the net debt (Non-U.S. GAAP measure) increased and~~ the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure) ~~decreased.~~increased more than the net debt (Non-U.S. GAAP measure) increased.

Total equity decreased by ~~$82~~$5 million compared to September 30, ~~2021.~~2022. This was mainly due to ~~$225~~$226 million in ~~adverse currency translation effects, dividends paid~~dividend payment and stock repurchases of ~~$224~~$257 million ~~and $60 million from share repurchases~~ partly offset by ~~$384~~$418 million from net ~~income.~~income and $36 million in positive currency translation effects.

Operating cash flow ~~decreased~~increased by ~~$186 million to $251~~$285 million compared to the same period last year to $535 million, mainly due to ~~lower net~~higher adjusted operating income and ~~adverse effects from changes in deferred income taxes.~~less negative working capital effects.

Capital expenditure, net increased by ~~$19~~$99 million, ~~which~~ mainly ~~reflects increased investments related~~due to ~~footprint and capacity expansions partly offset by~~the impact on the prior year of $95 million ~~in proceeds~~ from the sale of property, plant and equipment. Capital expenditure, net in relation to sales was ~~unchanged at~~5.4% vs. 4.9%. the prior year period.

Free cash flow(Non-U.S. GAAP measure, see reconciliation table below) was $117 million, compared to negative $69 million in the same period last year. The improvement was due to the higher operating cash flow partly offset by higher capital expenditure, net.

Cash conversion (Non-U.S. GAAP measure, see reconciliation table below) defined as free cash flow (Non-U.S. GAAP measure, see reconciliation table below) in relation to net income,was ~~negative $69 million, compared to positive $136 million a year earlier. The decline was due to~~45% in the ~~lower operating cash flow and higher capital expenditure, net.~~period.

The Company believes 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.

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 U.S. GAAP financial measures to “Adjusted operating income”, “Adjusted operating margin” and “Adjusted Earnings per share, diluted”

1) ~~Costs for~~Effects from capacity ~~alignments.~~alignments, antitrust related matters and the Andrews litigation settlement.

1) ~~Costs for~~Effects from capacity alignments, antitrust related matters and the Andrews litigation settlement, including gain on sale of property in ~~Japan in~~the first quarter of 2022.

1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).

1) Whereof gain on sale of property ~~in Japan~~ of $80 million in ~~March~~first quarter of 2022.

2) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).

The Company uses the non-U.S. GAAP measure “Trade working capital,” as defined in the table below, in its communications with investors and for management’s review of the development of the trade working capital cash generation from operations. The reconciling items used to derive this measure are, by contrast, managed as part of the Company’s overall cash and debt management, but they are not part of the responsibilities of day-to-day operations’ management.

~~The non-U.S.~~Management uses the non-U.S GAAP measure ~~“Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses this measure~~"Net debt" to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. ~~For details on leverage ratio refer~~The Company, 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 the Company provides this non-U.S. GAAP measure. DRDs are fair value adjustments to the ~~table below.~~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.

The non-U.S. GAAP measure “Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.

1) Net debt (non-U.S. GAAP measure) is short- and long-term debt and debt-related derivatives, less cash and cash equivalents.

3) Interest expense, net including cost for extinguishment of debt, if any, less interest income.

Management uses the non-U.S. GAAP measure ~~free~~“free cash ~~flow~~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 the calculation of free cash flow, see the table below. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.

ByAt September 30, ~~2022,~~2023, total headcount increased by ~~5,800~~3,400 compared to a year earlier. The indirect workforce ~~increased~~decreased by ~~2.2%~~1% while the direct workforce increased by ~~12.2%~~7%, asreflecting that sales grew organically ~~(Non-U.S. GAAP measure, see reconciliation table above)~~ by ~~32%~~11% in the third quarter compared to a year earlier. ~~The increase also reflects preparations for the expected strong sales growth in the fourth quarter.~~

Compared to June 30, ~~2022,~~2023, total headcount ~~increased by around 3,100,~~was unchanged, with a 1% increase in direct ~~workforce increased by almost 3,100~~headcount and ~~the~~2% decrease in indirect ~~workforce increased by around 50.~~headcount.

~~The Company's~~Our outlook indications for ~~2022 reflect continuing uncertainty in the automotive markets and~~2023 are mainly based on ~~its~~our customer call-offs, a full year ~~2022~~2023 global LVP growth of around 6%7%, ~~that the Company achieves its~~achievement of our targeted cost compensation effects, and ~~some market stabilization.~~a reduction of customer call-off volatility. Our full year 2023 indications are also based on the assumption that the UAW strike is not prolonged beyond what is included in the S&P Global October outlook.

The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. The Company 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 the Company is unable to determine the probable significance of the unavailable information.

Key launches in the ~~third quarter of 2022~~nine months period ended September 30, 2023

As of September 30, ~~2022,~~2023, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 filed with the SEC on February ~~22, 2022.~~16, 2023.

An evaluation has been carried out, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.

See Part I, Item 1, "Financial Statements, Note 9 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.

~~Except as set forth below, as~~As of September 30, ~~2022,~~2023, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, ~~2021~~2022 filed with the SEC on February ~~22, 2022.~~16, 2023.

We are currently operating in a period of significant macro-economic uncertainty, including global disruption of LVP due to supply-chain disruptions and COVID-related lockdowns and increasing inflationary pressures and commodity costs. Although we have minimum operations in Russia, the war in Ukraine and the current COVID-related lockdowns in China are exacerbating commodity cost increases, supply chain challenges and volatility with our customers’ production schedules. If the war in Ukraine continues for a lengthy period or spreads or the COVID-related lockdowns in China continue for a lengthy period or spread, it may have a materially negative impact on our business and results of operations.

The macro-economic uncertainty has been exacerbated by the war in Ukraine. Although the length and impact of the ongoing war is highly unpredictable, it exacerbated volatility in commodity prices, inflationary pressures, credit markets, foreign exchange rates and supply chain disruptions. Furthermore, governments in the United States, United Kingdom, Canada and European Union have each imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia. Existing or additional sanctions could further adversely affect the global economy further disrupt the global supply chain. Inflation is also currently high world-wide and may continue for an unforeseen time.

Due in part to the negative impact of the war in Ukraine and the current COVID lock-downs in China, we have experienced exacerbated increases in raw materials and increased costs for transportation, energy, and commodities. Although we are negotiating with our customers with respect to these additional commodity costs increases, commercial negotiations with our customers may not be successful or may not offset all of the adverse impact of higher transportation, energy and commodity costs. Additionally, even if we are successful with respect to negotiations with customers relating to commodity cost increases, there may be delay before we recover any increased costs. These may have a material negative impact on our business and results of operations.

~~For additional information see Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 22, 2022.~~

The following table provides information with respect to common stock repurchases by the Company during the three months period ended September 30, ~~2022.~~2023.

(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For

accounting purposes, shares repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.

(2) Average price paid per share includes costs associated with the repurchases.

(3) On November 16, 2021, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $1.5 billion or up to 17 million common shares, whichever comes first, between January 2022 and the end of 2024.

36During the three months period ended September 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Delaware		51-0378542
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

Klarabergsviadukten 70, Section B7
Box 70381,
Stockholm, Sweden		SE-107 24
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $1.00 per share)	ALV	New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


Net Sales by Products	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Airbags, Steering Wheels and Other1)	$	1,761	$	1,510	$	5,191	$	4,226
Seatbelt Products and Other1)		835		792		2,533		2,281
Total net sales	$	2,596	$	2,302	$	7,724	$	6,507

Net Sales by Region	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
China	$	538	$	537	$	1,488	$	1,347
Asia, excl. China		495		418		1,449		1,197
Americas		918		794		2,665		2,225
Europe		646		552		2,122		1,738
Total net sales	$	2,596	$	2,302	$	7,724	$	6,507


	Three Months Ended						Nine Months Ended
	or As of September 30,						or As of September 30,
	2023			2022			2023			2022
Trade working capital1)		1,303			1,314			1,303			1,314
Trade working capital relative to sales, %2)		12.5	%		14.3	%		12.5	%		14.3	%
Receivables outstanding relative to sales, %3)		21.0	%		20.6	%		21.0	%		20.6	%
Inventory outstanding relative to sales, %4)		9.5	%		10.0	%		9.5	%		10.0	%
Payables outstanding relative to sales, %5)		17.9	%		16.3	%		17.9	%		16.3	%

Gross margin, %6)		17.9	%		16.7	%		16.7	%		15.3	%
Operating margin, %7)		8.9	%		7.4	%		5.9	%		6.6	%

Capital employed8)		3,861			3,779			3,861			3,779
Net debt9)		1,375			1,288			1,375			1,288
Return on total equity, %10)		21.3	%		16.8	%		13.5	%		13.8	%
Return on capital employed, %11)		24.2	%		18.0	%		15.6	%		15.3	%

Headcount at period-end12)		71,200			67,800			71,200			67,800


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2022		2021		2022		2021
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	105	$	60	$	267	$	320
Participating share awards with dividend equivalent rights		0		0		0		0
Net income applicable to common shareholders		105		60		267		320
Earnings allocated to participating share awards1)		0		0		0		0
Net income attributable to common shareholders	$	105	$	60	$	267	$	320
Denominator: 1)
Basic: Weighted average common stock		87.0		87.4		87.2		87.4
Add: Weighted average stock options/ share awards		0.2		0.3		0.2		0.3
Diluted:		87.2		87.7		87.4		87.7

Net earnings per share - basic	$	1.21	$	0.68	$	3.06	$	3.66

Net earnings per share - diluted	$	1.21	$	0.68	$	3.06	$	3.65


	As of
	December 31, 2021
Related party receivables1)	$	1
Related party payables2)		15
Related party accrued expenses3)		9


	Three Months Ended September 30,							Components of change in net sales
	2022		2021		Reported change			Currency effects 1)			Organic 3)
Airbag products and Other2)	$	1,510	$	1,199		25.9	%		(7.6	)%		33.5	%
Seatbelt products 2)		792		647		22.4	%		(8.2	)%		30.6	%
Total	$	2,302	$	1,847		24.7	%		(7.8	)%		32.5	%

Asia	$	955	$	778		22.9	%		(9.7	)%		32.6	%
Whereof: China		537		414		29.7	%		(5.7	)%		35.4	%
Japan		175		160		9.7	%		(20.0	)%		29.7	%
Rest of Asia		243		204		19.3	%		(9.7	)%		29.0	%
Americas		794		596		33.3	%		(0.3	)%		33.7	%
Europe		552		473		16.7	%		(14.2	)%		30.8	%
Total	$	2,302	$	1,847		24.6	%		(7.8	)%		32.5	%


	Three Months Ended September 30, 2022									Three Months Ended September 30, 2021
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	171		$	2		$	173		$	99		$	4		$	103
Operating margin, %		7.4	%		0.1	%		7.5	%		5.4	%		0.2	%		5.6	%
Earnings per share, diluted	$	1.21		$	0.02		$	1.23		$	0.68		$	0.05		$	0.73


	Three Months Ended September 30, 2023									Three Months Ended September 30, 2022
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	232		$	11		$	243		$	171		$	2		$	173
Operating margin, %		8.9	%		0.4	%		9.4	%		7.4	%		0.1	%		7.5	%
Earnings per share, diluted	$	1.57		$	0.09		$	1.66		$	1.21		$	0.02		$	1.23


	Nine Months Ended September 30, 2022									Nine Months Ended September 30, 2021
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	429		$	(64	)	$	365		$	500		$	6		$	506
Operating margin, %		6.6	%		(1.0	)%		5.6	%		8.2	%		0.1	%		8.3	%
Earnings per share, diluted	$	3.06		$	(0.47	)	$	2.58		$	3.65		$	0.06		$	3.72


	Nine Months Ended September 30, 2023									Nine Months Ended September 30, 2022
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	453		$	133		$	586		$	429		$	(64	)	$	365
Operating margin, %		5.9	%		1.7	%		7.6	%		6.6	%		(1.0	)%		5.6	%
Earnings per share, diluted	$	3.04		$	1.44		$	4.48		$	3.06		$	(0.47	)	$	2.58


	September 30, 2022			December 31, 2021			September 30, 2021			September 30, 2023			June 30, 2023			September 30, 2022
Receivables, net	$	1,893		$	1,699		$	1,575		$	2,179		$	2,189		$	1,893
Inventories, net		924			777			922			982			947			924
Accounts payable		(1,503	)		(1,144	)		(1,076	)		(1,858	)		(1,844	)		(1,503	)
Trade working capital	$	1,314		$	1,332		$	1,421		$	1,303		$	1,292		$	1,314


Financial measure		Full year indication
Organic sales growth		Around ~~15%~~17%
Foreign currency impact on net sales		Around ~~6% negative~~1% positive
Adjusted operating margin 1)		~~Upper end of around 6%-7%~~Around 8.5%-9%
Tax rate 2)		Around ~~30%~~20%
Operating cash flow 3)		Around ~~$700-750~~$900 million
~~Capex,~~Capital expenditures, net % of sales		Around ~~5.5%~~6%
1) Excluding ~~costs for~~effects from capacity alignments, antitrust related matters, the Andrews litigation settlement and other discrete items.
2) Excluding unusual tax items.
3) Excluding unusual items.


	Americas	Europe	China	Asia excl. China	Global
Autoliv	11%	8.5%	5.6%	20%	11%
Main growth drivers	Mercedes, Nissan, Honda	Mercedes, BMW	Lixiang, GWM, Chery	Toyota, Hyundai, Subaru	Honda, Toyota, Mercedes
Main decline drivers	BMW, Ford, Stellantis	Volvo, Ford, VW	VW, Nissan, GM	Renault, Bodrin, Stellantis	VW, Renault, Ford


	New York Stock Exchange (NYSE)
Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (USD) (2)		Maximum Number of Shares that May Yet Be Purchased Under the Program (3)
July 1-31, 2022		23,895	$	83.71		16,441,552
August 1-31, 2022		96,980	$	82.50		16,344,572
September 1-30, 2022		135,463	$	73.85		16,209,109


Exhibit No.		Description

3.1		Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).

3.2		Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-12933, filing date December 18, 2015).

4.1		Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009).

4.2		Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 15, 2012).

4.3		Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 25, 2014).

4.4		Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018, among Autoliv, Inc., Autoliv ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

4.5		General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of May 30, 2018, with Skandinaviska Enskilda Banken AB (publ) serving as a custodian, incorporated herein by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

4.6		Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP, Inc. and HSBC Bank PLC, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

4.7		Base Listing Particulars Agreement, dated April 11, 2019, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.7 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 26, 2019).

~~4.8~~		Base Listing Particulars Agreement, dated February 21, 2020, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.10 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 24, 2020).

~~4.9~~		Base Listing Particulars Agreement, dated February 19, 2021, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.13 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 23, 2021).

~~4.10~~		Amended and Restated Programme Agreement, dated February 19, 2021, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 23, 2021).

~~4.11~~		Amended and Restated Agency Agreement, dated February 19, 2021, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.15 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 23, 2021).

~~4.12~~		Base Listing Particulars Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.12 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).

~~4.13~~		Amended and Restated Programme Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.13 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).

~~4.14~~		Amended and Restated Agency Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).


10.1* 4.8		Base Listing Particulars Agreement, dated February 17, 2023, among Autoliv, Inc. ~~Non-Employee Director Compensation Policy, effective November 1, 2022.~~, Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 16, 2023).

4.9		Amended and Restated Programme Agreement, dated February 17, 2023, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K (File No. 001-12933, filing date March 16, 2023).

10.1+*		Amendment No. 1 to Employment Agreement, dated October 1, 2023, by and between Autoliv, Inc. and Colin Naughton.

31.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.

31.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.

32.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File because its XBRL tags are embedded within the inline XBRL document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.


101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104*		Cover Page Interactive Data File (embedded within the inline XBRL document).


By:		/s/ Fredrik Westin
		Fredrik Westin
		Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)