ALV - Earnings call transcript Q1 2021

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Operator

Welcome to Q1 2021 Autoliv Inc. Earnings Conference Call. [Operator Instructions] Today, I'm pleased to present Anders Trapp, VP Investors Relations. Please begin your meeting.

Anders Trapp

Thank you, Akwasi. first financial our earnings to everyone quarter results XXXX presentation. Welcome Anders President call, Officer, Mikael I'm Relations. we this and Fredrik VP have and Financial On Chief our CEO, Investor our Bratt Westin Trapp, and

today's condition. of fourth an overview update During a our general as as our call, will quarter our provide earnings business brief well of results provide CEO and market

further Fredrik and commentary will financials. provide details Mikael, Following the around

available remain available usual, to respond duly questions. page your home as are website. then to the And of slides will on corporate the on We our

page. the Turning

have an includes Safe this We the the part and Harbor statement, is presentation integrated which Q&A follows. that of

in will US release and our During we reference the be historical non-US the XX-Q reconciliations GAAP that GAAP presentation, with GAAP measures. will the non-US SEC. of disclosed quarterly The to filed press some are measures

call now that follow so to Lastly, I person. of this at should limit our to Time, a is I European PM please Mikael CEO, X:XX hand over intended Bratt. it per Central questions mention conclude two

Mikael Bratt

Anders. you, Thank

Looking on slide. highlights the the now QX next into XXXX

the delivery foreign Before health with and safety, to to quality their hard formal employees start presentation, work commitment like I and control, cost acknowledge precision. we our and would for

been Our of and to safety it company. the focus come as crisis throughout of this has out and health our employees a stronger

for new a exceeded this, to light disruptions, few platform built industry while the solid QX IHS the the automotive past over wrestle a from with behind managing our Markit, three shortage The strong light performance COVID-XX months XXXX, that and the customer semiconductor in us, of not a supply In shows ago. other we demand is to Although have yet according end pandemic vehicles. mid-term expectations continues vehicle production components quarters global towards targets.

sales reported As pleased headwinds and prices. our rising operations am the of flow. cash facing very I strong profits the that is and and growth, from component materials a strong demand disruption, industry supply raw commodity consequence

XX%, We high more This and strong X increase production points on in lower markets. a by percentage was XXXX. that the geographic was pleased order was operation growth, result operating growth which cost production. content strong continued organically light am improved effects the negative increased with despite execute structural than vehicle book significantly, light The vehicle global XXXX than I solid control for and operating mix to vehicle income efficiency our of adjusted versus our sales both good of and margin from the execution, programs. we better sales

flow is and allowed cash strong our to leverage X.X times deleveraging free further our inside times. ratio target generation of Our now range back X.X

evaluate opportunities shareholder value continue for We creation. to

and on Our confirm Based performance at again tied quarter level a the full similar our order intake continued expected the as was we first year. favorable model strong in XXXX control, cost year mix, last guidance.

Looking highlights now on the next on the slide. financial

to light net consolidated cash US first This basis China points costs history. contributed more sales margin or of US to XX normalized US excluding increased increase XX% sales than XX.X%. increased million compared the Our business gain income, flow dollars. was alignments, XXX by Adjusted vehicle by quarter million we to operating by capacity XXX more to by highest XXX share. safety for in million increased increased and market XXX The for Chinese QX sales operating million than XXXX. The by dollars a continued to dollars. our production the passive to in half XX% as market almost Operating adjusted

growth India, than mix. production China, level All outperformed to vehicle suggest and it's Current points. positive vehicle regions per now driven the is as geographical were achieved our effects, replacement a light Looking pleased new strongly on This forecasts only in production grew now mix organic vehicle increased. vehicle sales light vehicle in all on market. the light in points. content production positive quarter. sales solid and second by in insignificant. lower impact by on outperformed is South of very X actually a production vehicle development production more launches Korea adverse South It significant percentage on light XX light next percentage inflators America geographical regions, vehicle effects despite a Sales We was by the that where our had slide. was development I X am global mix self-development sales

including L, XXX on Mitsubishi Jeep airbag, models supported quarter, center of are products important during between Peugeot of product Outlander, by to for of content some of the and introduction vehicle with more We vehicles, launches sort dollars. will the per is next slide content the advanced almost US several The as have shown EV the volume front XXX. pure most trend this knee an long-term of and on seatbelts. had vehicles high the higher to such the Autoliv Looking slide. Cherokee XXX Grand The Two available be vehicle and models airbags powertrain. electrified

who Mitsubishi new financials next as the slide. has as talk a Outlander center front two airbag knee hand about I to airbags the CFO, Fredrik Autoliv. well our the example, over will now on Westin, from For

Fredrik Westin

our highlights figures you, quarter. for first Thank This key Mikael. the slide

same XXXX. X.X first The higher X%, being XXX material primarily In alignments of nor and over neither quarter, production to impact sales flow million XXX was points capacity basis and QX The improved driven by margin Gross despite last light gross achieved labor despite to XXX million the profit. the The higher adjusted second efficiency. XX% and XXXX QX due it cash by the million, by an XXX first quarter. any antitrust-related versus by the by to improved quarter gross profit profits. operating versus matters had on adjusted an net adverse to XXX was highest XXXX points the sales for to higher were margin operating This basis Reported focus on operating XXX quarter The by capital per billion, the XXX the increase performance more basis shows lower. was XX% share $X.XX income XX% compared capital. than vehicle Compared return and a return doubled earnings effects gross on and on our in increased points. direct year. from and good was to commitment increased The capital efficiency. increase the adjusted in and ROCE changes XX%. increased employed Our operating was margin million ROE or was equity working

margin slide. next bridge Looking the now operating the on on adjusted

a quarter operating of XX negative raw material US in The dollar. number caused different XXX margin the changes impact This XX.X% most transactional Our significantly effects first of of by is by from negatively XXXX. of was from adjusted currency higher margin operating first impacted versus impact was a than stronger in FX price payers, basis Canadian the basis the small the points points. the dollar quarter.

from X As discipline XXX was negative not impact improvements points. the by of points, from a illustrated higher quarter. related basis personnel by was to basis in efficiency COVID-XX mainly our chart, contributed in of supply impacted around connection SG&A the This in pandemic the to lower RD&E million inefficiencies margin chain by operating of of positively direct and with costs cost due governments lower with and offset structural effects related Operational sales. sales, result XXX was material relation both adjusted COVID-XX manufacturing. indirect partly and the the programs, Support costs and in

Looking next on the slide.

the XX to to million, compared cash increase cash last year. amounted receivables sales. first low was in of supply Especially X.X% free increased flow of chain programs The CapEx, and was quarter year, by capital close in flow year-over-year. XX to of or net the result XX increase higher million increase quarter working conversion were partly with of cost million in result million the capital was flow XXX%, lower last or increased XXX operating payables. the Compared of for by For an uncertainties. and XXXX, operating of XX inventories by the X%. non-cash impacted The expenditures offset income, of cash capital. million operating an structural a Capital cash by and the cash The to working but efficiency capital the Trade XX trade million, last inventories months items. in with unfavorably developed changes X working was expenditures development

on the next slide. looking Now

the noting We that have, end focus a XX half a in sheet as long know, second of end history of unchanged. is times remains debt EBITDA net improved was improved at by is while year prudent debt XXX decreasing from worth of the a ratio ago. our It lower The and of you XXX at the quarter to million, by X.X of than over times financial the X.X balance a leverage a XXXX. net leverage QX peak The result XXXX million. billion last a months increased our the no our quarter policy

strong opportunities flow should in calculation investments. from recalculated our income been been has redefined ratio allow non-operating creation. further shareholder items de-leveraging free exclude provide equity adjustments. minor Our to EBITDA for and Historic and has resulting generation cash Note leverage that value method EBITDA other and

inside Onto longer no back for ratio, As next guide target the we slide. our measure. for will we range are this the leverage

commodities. During prices seen spot in and materials substantial the increases quarter, market have we raw first for

contracts. prices relatively market. and impact than As volatility lower small our spot the in delayed was the we first the Therefore, is substantially in the quarter. are Also, market longer-term mainly buy components, changes the through supply effects from in spot mitigated normally volatility

our contractual customers. also some We to have limited pass-throughs but

headwind negotiations We next based that to the the products. estimate also and and long are from the the XXXX, disruptions material current and margin second quarters. the lead varying well There raw times price with production around consumer makers using face as creating of demand on automotive shortage. changes; extend semiconductors. demand operating in competes wider mitigate previous will into the are of to the our consolidation the XX mean the from On with was basis supply as raw the production points. estimate of Chip we increasing situation, year but third supply well capacity, we full XX length an sector, impact points as systems of estimates to of expanding suppliers The will slide. the electronics issues for recovery through material basis redesign But semiconductor

as negative output and global effect production. supply pattern as an of percentage We be of assume This would vehicle net vehicle to distort on production QX not exposed XXXX on that is QX will assessment impact X point level the may QX. further XXXX. X stabilization overall where emerge light in current until have Our seasonality a

is in also supply by LVP we impacted issues, likely QX as and to quarters. and in is already essential in agile adapt Although to production to profitability to Mikael. I plans. and and coming you, most it for directly and sudden to negatively affected not our the What over efficiently sales customers' Autoliv sales any are now be profitability changes impact is always back to semiconductor our hand our continue

Mikael Bratt

Thank you, Fredrik.

slide. a record Turning of next high to and inventory low Demand regions. level new new at the vehicles levels remains some for vehicles remains in

inventory inventory level are at XX-year For clunkers the levels since for are example, especially we inventory European for America in and of low, program premium at in a cash fairly normal vehicles. low, China an Dealers North the in August believe the that levels lowest XXXX.

quarter second it's weeks standstill hence was develops a low the quarter for last a think XXXX. light demand year-over-year, as good and second China; in availability expect growth second expected, in the number reminder expected the half a component very rates that the in year. markets, of that high except the recovery most for year for the worth virtual we of production support We the vehicle a inventories Assuming

content support outperformance around the QX. growth The per quarter. the growth to in almost you second vehicle North in Europe table should than expected the As our to in vehicle to slide. and can is markets, the in see slide, America XX% light next triple. vehicle as by grow vehicle expected light in on is expected production global double strong America North QX, high forecasted production On to Europe Globally, light in is the more production while such

highlight factors negative some we indication. Here positive behind our and XXXX

headwinds. points Our for vehicle indications lowered to Compared previous by market increased the guidance, full almost organic light X margin operating year outlook and to percentage growth is adjusted are due component production our XXXX shortage. unchanged despite

quarter effects, these sales is price as XXXX. points basis year cost estimate material basis these effects from offset raw negative improved improved to points structure, headwinds Our first our XX are XX full mix for evidenced of the and performance. reiterate increased as by Despite we by an guidance

slide. next antitrust potential We capacity details indications on matters. have the and our indications These of alignments exclude the cost for related

by mid-single full production. XX% supporting outperformance expect a organically light year around We vehicle versus digit increase sales to

assumed around effects of XX% Our increase to translation currency sales around is including net be positive X%.

operating around expected margin XXXX. expect adjusted with Operating XX%. We of in be an is cash line flow to

initiatives Our and towards stone we the targets, increase. stepping vehicle as are above solid margin gradually significant to yielding strategic results well XXXX a a expect which include XXXX a good our be to operating as growth production solid XXXX light

page. Turning it call. And concludes will now like formal for line to back our This comments open for today's earnings to I we the the Akwasi. would turn questions.

Operator

first comes go Wells from Langan question ahead. Our Colin Instructions] [Operator Fargo. from you. Please Thank

Your line is now open.

Colin Langan

a Why on bring or taking going buyback, just leverage very there for your forward? range, of Maybe the question. allocation large holding seem relatively not question be well. Great. target capital you sales sort to a thoughts Well, back thank within much dividend now first any you're up plans

Mikael Bratt

I this a and As dividend is Board buyback decision or decisions. mean, know, you a

So question on quarterly quarterly revisit the basis, this Board a call, the is and connection with we a meeting. with - that in Board so

not the today. for is this topic So

for So, when it. come it's we have back to later time

Colin Langan

are over forward levels? through over at then I was and the launches about driving you. of the driver I X, talking implies mid-term year? X mean, about think being the just there? looking you're the sort in Thank very And I to it QX of What's strong higher market at market, Okay. think guidance, X. growth Are what's the just rest largely X% pulled coming

Mikael Bratt

order our built to and of that continuing over back were strong books the years at the It's build.

what here increase that to deliver you slight we'd as this before to is with that. on I of mean contributes in we indicated line have So, and continue And that. said, a launches we

line in we'd the would I according see So mix what talked in as about, the increasing And said vehicle of in we we regularly per say also with to the plan. content course, [ph], past.

Colin Langan

my for taking Okay. question. Alright. Thank you

Operator

Thank you.

from Holmberg question ahead. comes next from Our go Mattias DNB. Please

line now open. Your is

Mattias Holmberg

Thank have questions. you. two I

faulty is The vehicles one in in Can airbags make of first the on any any investigation see you're if some this where comments way? I involved that in the GM looked at. US you are

Mikael Bratt

and GM the and is are I models. customer are we among to of we other mean, delivering important aware investigation airbags different us GM an things of

our which of is an we course So, we support do if GM our see needs responsible. help but based investigation, upon be not in the should this will for we understanding, issue

Mattias Holmberg

the on announcement can this disconnect type sort perhaps of or become recent something you that make more you. could small on see material for it's side you devices potential business, Thank And what growth will electric you vehicles, elaborate a business? for if bit outlook a that of

Mikael Bratt

and development. growing course to role of don't vehicle have I in at point. electrical numbers content per it's you any meaningful a But give No, terms of this our effort vehicle also in

continue growing So we see for interesting this sure as to opportunity that a very part.

Mattias Holmberg

Thank Great. you.

Mikael Bratt

you. Thank

Operator

next Please Our from ahead. Banc. Picariello comes question James Key go from

James Picariello

unchanged the the Starting shortage the you're acknowledging on growth semiconductor growth the from top organic line, maintained guide, X-to-X-point the and on revenue just your guide. in headwind guys, organic margins. but Hey, operating

So is function a much a - launches, the favorable is just is mix? new business there attributed or of with how new of it that backlog

Mikael Bratt

it No, I is several think factors.

think year. mean, first I had start all, I strong of the of the we

also that's have I factors think sales And main there. seen mix. We the the improved yeah,

us here about and see that booking. in we comes talking believe on general we're order the in delivering numbers development when it So to our good

Fredrik Westin

that us - negative quarter a the have out both more X% mix maybe that substantially addition first North grow Maybe rather positive of achieved was one and quarter, second will with significant performance sort currency that in and we here for one addition of to as in the will America CPV laid especially much impact, faster. Europe we the terms a of that in

especially would tailwind for So extent, to a then that the quarter. us be larger much second in

James Picariello

collectively, expected And points of X Right. than to better you what quarter. X as last

are structural XX essentially Is revenue Okay. the on headwind curious offset doubled to has that difference. your right basis then XX, Thank from commodities Just to hasn't And you. savings million line it's What's on points changed, about because - the margin the that. growth side, higher? top XX that? the

Fredrik Westin

agility I I the build paying through. quarter are to now can that to to in direct complete changes, fourth good XX% basically programs productivity of strong we see quarter. both were first structural the is here. and in the also both Initiatives that coming here the the progress second then really the we proven in at off very second demand all, but one the improvement, as on. the efficiency about think we on in which it doing quarter first we first foundation the think fourth well. shows And that think I a through then Strategic They the quarter and be react to labor we aim - have that see side. Then And And materials,

makes possible perform how offset raw also side. all that impact margin So and to guidance, then for materials the can higher from the received combined, we that's the XX% us it

James Picariello

Okay. Thanks, guys.

Operator

you. Thank

Our next ahead. question Please Joseph Spak from go from comes RBC.

Joseph Spak

guess concern very much the this how but maybe quarter, is saw that you trust I you you year, last to Thank forecast. is right, talked what forecasting everyone. about I some - for

sort bigger Now a semiconductor and that of you've that lowered hurdle. right there's acknowledged

XX% there or want to different? is I are something And your internally I'll guidance little actually second. a be just So like, you clear, still for stop assuming bit a assuming

Mikael Bratt

here to semiconductor, visibility into of out use see I it a now is is references external year. we the here mean, we'd year as effect the net But the to impact we the - talking further I time our and that the seen view are would what that. is come, take for X% the I mean, full on the about that see according we I when And comes in then judgment, outlook course, No, the think to number. have always, range in baked you we have that think it in guidance we full our there of what X% have through and and that,

Joseph Spak

alluded little couple talk And better the that I'm I to you about of a got outgrowth Okay. you a as like, it your wondering has outgrowth, it or guidance. convexity or as be growth then, ends outgrowth if been of a your versus could of if prior actually, times, see XX%, bit it production, X% organic don't or XX%, being, see should meaning, vehicle there I linear? to sort change light to up pretty guess, to you do know, your meaningful

Fredrik Westin

particularly nicely mix, a we with now, growth combination into in, details see in once books the and I of you plus many that and vehicle. again, through is in here, And see I'd that wouldn't go say, - of across timing forth. more any with new a is that have what also also are order safety the good now I terms into I But that coming coming globe we parts there the new mean, and is development also that so models think, we strong content delivering. with also

Joseph Spak

Okay. sort so stronger like of guess outgrowth products the the Yeah, Like, similar the through making seem something the what's that of I mix helping expect a seems would that would you, are to was automakers keeping it that or balance. continue sort - you of going question. that is

Fredrik Westin

yes. Yes,

Joseph Spak

you. Thank Okay.

Operator

you. Thank

comes ahead. Please Engellau go from question from Handelsbanken. next Our Hampus

Hampus Engellau

me. questions very for you Two Thank much.

be X.X, to Sort the with view include millimeters your interesting on in the XXXX. EVs, this Mersen potentially it hear the significant of maybe by going potential for given back on having XX but this would for up that step with NCAPs collaboration

production if other impacted weeks you stopping my back take the to shortage, said is, be have shortages i.e. will were deliver remainder for makers stopped to I OEMs are could Is have questions. are it subsidized of year. they from some two airbags starting that if semi they production semis. that Those the to for we guys, pick something the up other you. question balancing three or Thank delivery OEMs even weeks. that has will the Second coming that the even because believe still this subsidize fear you

Mikael Bratt

you. Thank

Let say I think which voltage in that there here product. put of is But also, include NCAP - would vehicles can't power this vehicles is with a question, this until then growing those kind yeah, anything with first. product. I that don't kind NCAP interest see collaboration. I pipeline, into if the opportunity like we we I think higher And this to of an have with provide that safeties,

opportunity, as details but in we are of So further no point that time than said, I quite here. about this numbers this at positive

to either in vehicles and call production, mean, delivering it's course, customers But are have fully extend On to dealers. We seen or up ultimately in how that according of an we their to the the their insight our have I ending yard out. - the meaningful side do those are semiconductor extend. not nothing here really detailed we heard or delivered on

it's us, the according that. doing about to for delivering all our from So call are expectation we and customers and outs

Hampus Engellau

Motors question planned outs ask they For of that in call given that that announced, stoppage has way I Can to announcement? guys, instance, provided you General that the that after this change instead then? did the

Mikael Bratt

again, we specific can't there, on behavior don't comments call we a following are But request schedules OEM's are in see regards customers' their I our I mean, so. once so any there, offs. we we according comment your delivering to to - specific and

Hampus Engellau

you. Thank you. Thank

Operator

from next Please Jefferies. Sascha question from go ahead. comes Our Gommel

Sascha Gommel

Good afternoon. question. for Thanks Good my taking afternoon.

and you quarter would you're QX be that that be a would earnings? run in think color The mentioned similar the that on exposed on Because as bit quarter. that first started? terms the first to second of top actually Does as to same quarter How I QX. mean on one line is shortage in rate second the

Fredrik Westin

can't you next on quarter as outlook any here. know, the mean, comment I I

Sascha Gommel

April color on And that? how started, any has

Fredrik Westin

semiconductors, related I were in question situation the we if as - your mean, think we to ago. I mean, are I weeks couple is the same a still about the of

worse better any that regard. not any I think or it's in

semiconductor mean, it through it [inaudible]. how we take time I will are before think So plays issue But the out. some I have to we see

Sascha Gommel

on Very second would again, the question safety And clear. Okay. be, my switch.

technology or every broad or needs for they adoption at does Just competing very that every wise, technology technologies that competing are EV need all? will technology car - clear are or they it are a one have is one not available

Mikael Bratt

that it their No, would say. I - voltage I as it up, But think more particular the - goes in of terms feature, of solution, that's it's becomes main relevant. even course

I EV have play to add we a a of features technology transformation, think the new to speak. see So we there so from role safety to that into type

So I think a good opportunity there to build the business.

Sascha Gommel

Alright. Appreciate it. Thank you.

Mikael Bratt

Thank you.

Operator

Thank you.

comes Please Our from Erik from next question Golrang SEB. go ahead.

Erik Golrang

you. questions. Thank few I've

First digit growth. outperformance to you've XX% you X% back digit your one, Which for one in organic as guidance. is higher assuming you If mid-single And not last than say wrong, it? outperformance outperformance a LVP implicitly guided coming mid-single well. is the are quarter or figure that I'm either

Fredrik Westin

always digit I do. is further as I comments on same we and think the mean, assumptions have mean, I is mid-single it built to mid-single digit no it And we that.

Erik Golrang

Okay.

X% [inaudible]. So

Fredrik Westin

help. say clarify so should also around that in we your calculation, XX, I Maybe the for

Erik Golrang

to guess it's points. given in quarters that half quarter. XXX the in zero margin second than more I two you thank in Okay, coming down time there question XXX is, raw then some to compared The around the on the the on you. last And And point, prices remaining XX that you steel I would was an the second of made the is at a around assume think basis second questions QX, case? right impact that's particularly have if assumption still three material side, then

Mikael Bratt

higher point we're our guidance you actually guidance points assumption textile going buying all is course large, we but have. reduced also that forward. tailwind also And not we guidance gave prices plastics material here. raw and equally, XX prices the say components assume it from basis that to - which time the But material significantly compare was they any only it's that we're would on the from the almost raw steel, don't So impact if of from XX steel is increase further basing on not the of from now basis points on a impact on,

not And the it So, yes, QX, prices bit then then then it's be the was QX based on timing, quarter, and And will to third gradual increase year-over-year the close remain the a from a of you terms down the at probably fourth the into that in levels. impact hit. current zero. come peak It quarter if in look QX. at the would

Erik Golrang

good. you. Very Thank

Operator

Thank you.

from question next Barclays. go ahead. comes Brian from Our Please Johnson

Brian Johnson

so two strategic. Yeah, more have a bit I questions,

is China something first more looking mix a content market. is growth significant that Is to quarter, or just there could a your there So random around China, in the a move either or at China very be tailwind? around that over more was accident in permanent

Mikael Bratt

No, it's it's not - I random. I think mean,

vehicle is I it that per think you see growing. content are

strong growing think position have with customers and we in good there. also I China a we our portfolio

So I think it's a growing market that does products. support the safety

Brian Johnson

life view ESG Autoliv E obviously, saved. discussions focus do had great to investors a talk to investors, contribution When of they societal over footprint? And the safety, an company, saving ESG think and you aside the the S your and maybe lives as carbon improvements in you on been of and EVs miss your decades, does speaking kind slide your on is with up do Okay, kind it mission big from a that come discussions, you've energy up come of or driving? green the you in does how

Mikael Bratt

have that in think no about we - more strong of position I a doubt think believe a course, I activity, we it. is sustainability definitely saving and mean lives I this

report, and course to well together details positioned we sustainability positioned there. can little I that think we With those positioned that think we said, good well still we I think in our I you are more have I are So and do see all think in are also feedback. areas all there. of bit get you But more well But mentioned.

Brian Johnson

is funds American Europe you think impression My in North than the in do the reflected Europeans understand and ownership that better And that's in ESG your investors? America? ESG

Mikael Bratt

Yeah, be could like that. Yes.

Brian Johnson

Okay, thanks.

Operator

you. Thank

Our next Enarson Bank. Please go from ahead. Bjorn from Danske question comes

Bjorn Enarson

about will A OpEx. year? versus that now the even going margin gross bit right elevated say forward in what now Yes, little you. or Are at margin low? reasonable little something for they your your on level the device the you to or Can are development QX targets the lead thank level or bit OpEx OpEx you

Fredrik Westin

Now development major of then in was quarter, terms of both course, the labor and the gross we mean, contributing one material good highlighted, volume as in first margin But I we productivity. also factor. had the

been third in having first core through the have had structure the year the where what we side, both production overhead at factories. also and constraints that is labor much coming the loss, restrictions to we've in in that of the large the And had has through that the in during in And of because the quarters the we been operate targeted but see manufacturing But from Efficiency coming that previous On nicely. the better we've COVID a struggling our under setup. part Programs really the Structural element then before. quarter is than volatility

and focused bit And As here very, of from good to the side both of And the development materials. side definitely so in the I remain a improve of and to productivity also little increase the one a remainder can far. said, very on but Structural labor left reasons on year. we material also through the we offset continuing there's the very, Efficiency it's headwinds then Program very come

Bjorn Enarson

disturbances time. less as it quite quite was for we've the the in in extraordinary So, quarter, some nothing, it is margin of production, development seen gross volumes in basically and solid

Fredrik Westin

our in it and strict, yeah, around better we I but call be better, any it disturbances, are managing of but arms the it less wouldn't extraordinary getting we're I would interest. quarter that nothing think

Bjorn Enarson

guidance etc. something now, you within say your And are range. and situation Perfect. your can about if buybacks gearing you on when potential

Mikael Bratt

to my refer that when quarterly it with it the Board the to happens, so will the Board answer it's And decision I we reviews there. buybacks, when have mean, comes I earlier one we comes connection a think to to when in it I Board speak. dividends, I when with here. meetings think No, announced

this report not So at in point to nothing time.

Bjorn Enarson

Nope. Got it. Thank you.

Mikael Bratt

you. Thank

Operator

from Vijay Please from comes ahead. question next Our Mizuho. Rakesh go

Vijay Rakesh

thanks, Hey, guys. Yeah.

goes Any up demand XX% Just or how push on know about fiscal do LVP year-on-year. in Do of the some 'XX going see talked you away? you you briefly, some fiscal I 'XX? 'XX out fiscal just thoughts see about

Mikael Bratt

XXXX the on same that comes question? outlook your question, a for a If when was to LVP, it the

Vijay Rakesh

yes. Yes, Yeah.

Mikael Bratt

mean, we comments have said No, no Yeah. I as have I situation. have positive mean see I we XXXX this on a demand I here, at point. commented we around think but we XXXX mean,

supply glaring We come low in more chain - think carry into it's inventories that right which to have is XXXX, to. I here. mentioned the will will as and supply situation how we [inaudible] very have of And the chain a now, with back we

Vijay Rakesh

want of same you mentioned, on and on inventories, And Thanks. was of it. you inventory in Got inventories. concrete at Europe? for dealer look I know you an XX-year - US some but just I where trending low inventories dealership side, terms auto get low know at to is mentioned terms had in the Any China number you if there. thoughts

Mikael Bratt

a there. primarily there. Europe side. numbers. But little say cars where where have mean, geared here in inventory more lower are. dramatic But anything the bit we China, is should nothing what a I more say I And on course luxury bit premium be or And Europe, little have seems lower we I situation. about see of in to you no towards that's dramatic wouldn't it's I stable, the that a inventory

Vijay Rakesh

Thanks. it. Got

Operator

you. Thank

Emmanuel Our Deutsche next ahead. Bank. question go comes from from Rosner Please

Emmanuel Rosner

much. very Yeah, thank you

Sorry than go once from back understand this improved months the mix just to point in I'm sales on of again, trying positive back you better ago lower outlook the LVP to offsets is to view? still a but guess, what you top sales and and mix. line few out expected explain the particular, the the to I come playing Can

Mikael Bratt

have is, strong I mean, the as mean, we it's But course, outperform thing and I mean, the indicated - here how mean, I otherwise, it's said that - out the back it's that's I year it comes we are this that we mean, as one in with of I content that it's mix. - book we premium think think it's cars should favorable. high mean, here. And I I well. here, - of have we order vehicles I delivering

So you the maybe than what mix it's really indicated. is positive that more then only

Emmanuel Rosner

that's function if chips there are Would shortages, to of shortages is something that during is longer last automakers would sustainable contented the - the in term fearing fewer essentially are the be that it chip context vehicles? where the could that time or be And of, just be available that highest of some a case, something the there?

Mikael Bratt

I As of programs, that I not priorities of support is reshuffling get, they indicated best in course, be, that have we that need in plays on don't to in their impacted. make have where, phase. see that. so before, get very they yeah, it to out semiconductors terms can are Could use full they And what optimize in they which mean, I their terms but point different the the OEMs between hard from insights that how for of mean, we we the where imagine that they view a different

Emmanuel Rosner

was win you question And - Okay. comment to expectation the press that the this that commented year? is compared a and or this a intake, last I slides in And term the on order stable in for release what rate? then think it a the year dollar I in guess, year-over-year, was

Mikael Bratt

as the mean, intake indicating speak, in the we once shares, here we give year. order only year, year's I a we're close with was dollar the to is so line What you in last terms. know, when

Emmanuel Rosner

remind COVID year a just to in Last And result Okay. year, good impacted last wasn't QX. by us, was so it yet, QX?

Mikael Bratt

impact that COVID no there in no in QX, No, was I regards, no. mean, problem

Emmanuel Rosner

you. right. Thank All

Operator

Thank you.

McNally Chris next Our from go comes from Please Evercore. question ahead.

Chris McNally

one just ones, on - quick raw the Two on first team. Thank one mat.

Would pass sense X to stayed even fasteners. in months twos about, to the XX XX time, take through a steel materials the you for things like belts some little if make tier about Given think probably it they maybe flat takes year? continuing have pressure about annualization some We increases next into it one we price into through. now, are right this pressure and two some or given think where year, just probably to raw should it to raw and next points, it bit send material talked basis the

Mikael Bratt

guidance Sorry. fair to they be at prices next we also are where carryover the you We course, raw think on at I that quarter, in if first the the assume a of currently XXXX. material should give be year. that levels effect the impact, remain would don't there and into they look will But it had

Chris McNally

of on second where your a 'XX, you probably share terms to for that envelope, puts sounds order it longer-term great. content four sort be is on could growth. at on from out on think book question last years, about, something know you'll your vehicle peak and think based we in the that maybe sort market faculty possible you Okay, Primarily And XX%. from I revenue you really then over XXXX, XX%, gain your per projections, just it could of don't XX%, XX%. And of like it three the the market share comment

just still vehicle wanted view have good high-level a so to share content per will kind So you 'XX that growth. 'XX of see market and gains,

Mikael Bratt

in mid-XXs, an But I and mean, XX-ish we share position years of around, to here. continue have we grow market built targets that to we to believe book have order we I market a come order pace what so give strong indicated share here book we but will we the we around not the is a don't speak. by that mean, build year, there, and given, have into

share So market will forward. that define we going

Chris McNally

great. Okay,

Operator

Our go you. comes Thank from Instructions] Agnieszka Vilela next question ahead. [Operator Please from Nordea.

Agnieszka Vilela

QX, of think structural the you what it for is the money than on at is and now share in the your indirect that basis situation. kind started the with to When I example. Can the about car see you given from first do now production can look question number back My quarterly us concerning headcount lower is action, the workers, the situation how of also, quarter. fact increase you. step a that your your Thank was numbers I in

Fredrik Westin

I first down end year. if then you less down it employees, headcount all, is is it versus support year-over-year, XXX mean, take if flat headcount, or and compare the and you of the it's of around more

selective also some we've said mainly through as we any very, had, be the But in IT strategic of not program, remain will also digitalization initiatives with to And focused the cost additions. the So there. second had efficiency focused about and I have likely we're support second area additions ongoing we the quarter. which very and and before, here of during headcount the diligent have we yet very that most completed step

Agnieszka Vilela

you thank to And your Perfect, right the like now you. ask would pricing then also, for about I environment industry.

excluding to that a becoming see year. products also general, or Is you X% similar of X% on in used meet you so every pressure more for bit same positive you impact, to and situation own you I think that kind now the material price now your a pressure of guys? the say do their pricing is historically,

Mikael Bratt

going at still. and No, I is any in to so that X point reference see least, range we interim think it's definitely expect that don't the changes today within to a forward good to X

Agnieszka Vilela

Thank you.

Mikael Bratt

you. Thank

Operator

further There questions registered. appears be Thank to you. no

will to the back now I hand So speakers. it

Mikael Bratt

Akwasi. Thank you,

past the a and value our few Before in we mid-term targets, opportunities and health that our quarters to shareholder priority end, that of remains fact call, today's weight are the light the towards back employee. would our like for our in Despite the progress almost we and pandemic say creation. global supports to journey I is our our level, in our XXXX first production still safety confidence

second July Our call everyone We quarter Autoliv. Thank on sincerely participating for stay earnings Until time, safe. appreciate XXXX. Friday, interest XX, today's you, continued next is for in your scheduled call.

Autoliv (ALV) 23 Apr 212021 Q1 Earnings call transcript