© Autoliv Inc., All Rights Reserved Teleconference 4 th Quarter Financial Earnings January 31, 2013 Driven for Life Exhibit 99.3 |
ALV Q4’12 Financial Earnings Report - 2 This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations and various assumptions, and apply only as of the date of this report. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because such statements involve risks and uncertainties, the outcome could differ materially from those set out in the statements. For a summary of such risk factors, please refer to our latest 10-K and 10-Q filed with the SEC. Except for our ongoing obligation to disclose information under law, we undertake no obligation to update publicity any forward-looking statements whether as a result of new information or future events. 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 PSLRA. Safe Harbor Statement * (*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com |
Highlights - Solid performance in a challenging environment (*) Excludes legal costs & other charges related to the on-going anti-trust investigations and alignment costs Sales guidance met • organic sales growth 1.5% Margin* guidance slightly exceeded • EBIT margin 9.4% EPS* $1.58 • partly driven by lower tax rate and financial net Cash flow as expected • ~ $0.25B operating cash flow ALV Q4’12 Financial Earnings Report - 3 |
ALV Q4’12 Financial Earnings Report - 4 Mixed Market Conditions - The tale of two cities (*) Growth Markets excludes WEU, North America & Japan, CPV (Content per Vehicle), (LVP) Light Vehicle Production according to IHS @ January 16, 2013. 2013 LVP in WEU similar to Q4’12 run rate 000’s Q1 Q2 Q3 Q4 FY 2008 4,141 4.178 3,250 2.749 14,318 2009 2,471 3,024 2,968 3,271 11,734 2012 3,555 3.230 2,792 2,978 12,554 2013 3,076 3.069 2,642 3,060 11,847 • LVP declining back to 2009 levels • CPV ~ $400 000’s Q1 Q2 Q3 Q4 FY 2008 7,332 7694 6,890 6,312 28,229 2009 6,022 7,323 7,744 8,853 29,942 2012 10,493 10,630 10,203 11,193 42,519 2013 10,807 11,213 11,217 11,935 45,173 • LVP setting new record levels • CPV ~ $200 |
ALV Q4’12 Financial Earnings Report - 5 Continued Strategy Execution - In a challenging environment Capacity alignment activities while investing in growth markets Record order intake Continued investments in technology and growth markets Capacity alignment progressing Strong balance sheet for; • growth opportunities • uncertain environment |
ALV Q4’12 Financial Earnings Report - 6 Renault Clio Ford B-Max Euro NCAP Today - 2012 Best in Class 5 Star Models BMW 3-Series Hyundai Santa Fe Fiat 500L Ford Transit Ford Kuga Volvo V40 |
ALV Q4’12 Financial Earnings Report - 7 Euro NCAP in the Future - Migration towards Active Safety 2014 • Active Safety weighting increases from 10% to 20% • Active Safety required to achieve 5 Star • Euro NCAP points of focus for Active Safety • Lane Departure Warning, Autonomous Braking • Intelligent Speed Assist (50% urban) 2017 • Active Safety required to achieve 4 Star • Euro NCAP points of focus for Active Safety • Lane Departure Warning, Autonomous Braking • Intelligent Speed Assist (100% urban) Active Safety technologies are under evaluation by NHTSA for the new US NCAP |
Investments for Growth - Active and Passive Safety Technologies ACTIVE SAFETY NIGHT VISION Automatic Animal Detection Dynamic Spot Light Sensor Fusion NIR / FIR STEREO VISION Pedestrian Detection RADAR LRR Narrow Band Multi-Mode PASSIVE SAFETY BAG-IN-BELT KNEE AIRBAG ACTIVE SEATBELT PEDESTRIAN AIRBAG DUAL PRETENSIONING Estimate ~ 5% CAGR in our automotive safety market from 2012 thru 2015 ALV Q4’12 Financial Earnings Report - 8 SAFETY DOMAIN CONTROLLER Brake Controls Integration with Airbag ECU |
Investments for Growth - Facility expansions China Jintan (propellant) Changchun Guangzhou Nanjing Shanghai India Webbing Thailand Cushion cut&sewn Sweden Radar U.S. Radar Romania Steering Wheel Indonesia Seatbelt & Airbag Russia Seatbelt & Airbag Investing ~ $0.5BM on growth initiatives in 2011 and 2012 Poland Airbag Turkey Airbags, Seatbelts, Steering Wheel, Component Manufacturing Brazil Airbags, Seatbelts, Steering Wheel, Webbing ALV Q4’12 Financial Earnings Report - 9 (seatbelts & airbags) (seatbelts & airbags) (seatbelts) (ECU’s & crash sensors, Tech Center) |
ALV Q4’12 Financial Earnings Report - 10 (*) Non US GAAP and restated for ASC 810-10-45. Cash Flow - Investments for growth in CapEx and RD&E (US $ Mil’s unless specified) Q4 2012 Q4 2011 FY 2012 FY 2011 FY 2010 FY 2009 Net Income 140 160 486 627 596 13 Depreciation & Amortization 69 70 273 268 282 314 Other, net (4) 1 10 38 57 (41) Change in operating WC 36 62 (80) (175) (11) 207 Operating cash flow 241 293 689 758 924 493 Capital Expenditures, net (99) (100) (360) (357) (224) (130) Free cash flow * 142 193 329 401 700 363 Dividend payment 48 40 178 154 58 15 Strong operating cash flow and dividend payment increased YoY |
Dividend Trend - Per share and cash payments* Dividend per share Dividend Payments Dividend Payments * Estimated dividend payment for Q1 2013 based on share count at end of 4 quarter 2012 Annualized payment to shareholders ~ $190M based on $2.00 per share 0.5 0.4 0.3 0.2 0.1 0 60 40 20 0 ALV Q4’12 Financial Earnings Report - 11 th 1997 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 13 |
FY Financial Overview - Record sales and dividend per share Solid result despite LVP decline YoY in WEU ~ 8% (*) Non US GAAP Earnings Before Interest and Taxes, Earnings per share, Return on Capital Employed, Return on Equity (**) US GAAP reported, Dividend per share (***) IHS Global Light Vehicle Production (US $ Mil’s unless specified) 2012 2011 Sales $8,267 $8,232 Gross Profit $1,646 19.9% $1,728 21.0% EBIT * $803 9.7% $908 11.0% EPS * (assuming dilution) $5.82 $6.80 RoCE * 24% 28% RoE * 15% 20% Operating Cash flow $689 $758 DPS ** $1.89 $1.73 GLVP *** ~ 80M ~ 75M ALV Q4’12 Financial Earnings Report - 12 |
(*) Light Vehicle Production, Source IHS January 16, 2013, TRIAD (WEU, North America, Japan), (**) Includes Acquisitions Autoliv Production** - FY2012 Maintaining ~ 36% global passive safety market share Units in Millions (unless specified) 2012 Change vs.’11 Seatbelts 139.1 5% • Pretensioners (of which) [54.9] [3%] • Active Seatbelts (of which) 1.6 40% Frontal airbags 35.1 8% Knee airbags 2.5 89% Side airbags 72.0 7% • Chest (Thorax) 37.3 7% • Head (Curtain) 34.7 8% Steering Wheels 12.9 4% Electronic Control Units 13.6 1% Active Safety Units 1.6 79% LVP* TRIAD 37.2 8% LVP* GLOBAL 79.7 7% ALV Q4’12 Financial Earnings Report - 13 |
Mercedes S-Class Hyundai Genesis Toyota Highlander Acura MDX GMC Sierra Citroën C4 Picasso Jeep Cherokee BMW X5 Peugeot 309 * Images may not reflect new model Major Platform Launches - FY2013 ALV Q4’12 Financial Earnings Report - 14 |
Looking Ahead - Q1 2013 (*) Earnings Before Interest & Taxes excludes legal costs & other charges related to the on-going anti-trust investigations & alignment costs Sales • YoY organic sales decline ~ (4%) EBIT* Margin ~ 8% • Sequential change is mainly due to lower engineering income mainly related to the sharp LVP decline in WEU and Japan mainly related to Q4 launches ALV Q4’12 Financial Earnings Report - 15 • Sequentially organic sales up slightly • YoY change is mainly due to organic sales drop |
• 2 half improvement due to organic sales growth in active safety, launches and underlying LVP improvement • 1 half lower due to higher RD&E and continued low level LVP in WEU Early Indication - FY2013 Sales EBIT* Margin ~ 9% • YoY organic sales effect offset by higher RD&E and temporary margin effect from increasing vertical integration and growth H1 vs. H2 (*) Earnings Before Interest & Taxes excludes legal costs & other charges related to the on-going anti-trust investigations & alignment costs strong growth in Active Safety & China favorable launch mix partially offset by lower LVP in WEU & Japan st nd ALV Q4’12 Financial Earnings Report - 16 + 1 to 3% • YoY organic sales growth |
Financial Outlook Q1 2013 FY2013 Sales Organic (4%) 1 to 3% Acquisitions / (Divestitures) ~ (0.4%) ~ (0.2%) Fx** ~ 0.1% ~ 1.1% Consolidated Sales ~ (4%) 2 to 4 % EBIT Margin * ~ 8 % ~ 9 % (*) Excludes legal costs & other charges related to the on-going anti-trust investigations and alignment costs (**) 1 Euro = 1.33 US$, 1 US$ = 89JPY for Q1’13 & FY2013 ALV Q4’12 Financial Earnings Report - 17 |
Autoliv Every year, Autoliv’s products save over 25,000 lives Passive Safety Active Safety Autoliv - Safety Systems Thank you! ALV Q4’12 Financial Earnings Report - 18 |