ALV - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Autoliv, Inc. Fourth Quarter and Full Year 2021 Financial Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Anders Trapp, Vice President, Investor Relations. ahead. go Please

Anders Trapp

Chief Welcome, Year Ralf. have our Quarter Investor Bratt; Fourth President me Westin; Thank Trapp, Anders Earnings everyone, Call. Full VP our Mikael Officer, 'XX Chief we Officer, On and Fredrik and and you, Relations. Executive to Financial this our call,

cover During strong balance and cash will topics, our several earnings today's we sales including flow sheet. key call, and earnings, record

asset strong returns in improvement support We will balance as as of sheet how expected and levels outline high XXXX our will well continued margin returns. the shareholder

will Following the available presentation, questions. your we be to answer

As available the autoliv.com. usual, slides are on

to Turning slide. next the

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

historical in During measures in non-use filed the the presentation, quarterly will our the non-U.S. be with we on of GAAP SEC. are XX-K U.S. GAAP reference autoliv.com disclosed GAAP release reconciliations earnings available to will and that The measures.

call I at this Lastly, to Central mention p.m. Time. conclude X should that is intended European

So Bratt. please to Officer, limit Executive person. per Chief our hand questions Mikael will X now I over follow of a

Mikael Bratt

Thank you, Anders.

reach operating Despite quarter highs our production record our the earnings adaptability XXXX hard on dedication a I next them deterioration for by for light diverse Looking and despite driving share. our solid customer and their highlights very our year quarter. market lays expansion. employees' Meeting This commitment, full per and sales in I company's happy operating to current and is continued outstanding lower guidance mix driven the accelerated resilience, also a am only and portfolio vehicle want margin our profit, to showcases will leading to a for with consistently present achievement but and testament to slide. thank contributions record-breaking margin for work, new the strong success relationships. This forward. product success, headwinds, not foundation

pleased also flow. I an level record had capital that of high exceptional operating our For return am year, a also we full on we the cash generated employed.

strict of Our strong a control. performance was result cost mainly

direct program is of USD reduction XXXX. rated X was extension managed indirect program, quarter, cost inflation to accelerate high all supporting major contributed improvements, X,XXX supported reduction by X%. The has accuracy, shares repurchased the call-off our ratings flow for which strong structural Board program of us compensation. We the customer efficiency until reduction our BBB+ XXXX. partly USD in and since retired improved shares end repurchase of operating of enabled by with of were approved reduce on X shares. -- by reached November. million a to in we in continued to an an stable strong, be XXX by Our workforce XXX a by year, headcount agreements In X,XXX returns. repurchase level of a Cash to million the excess shareholder results also supported Directors Fitch which we with customers Under the million a almost the extended outlook QX remains. Autoliv The

slide. record Sales adjusted next development USD the adjusted as the well market-related flow solid a cash mix XX.X%, operating development. XXX by USD includes as the Despite million last a increased USD million this, year-over-year was and several customer million. for from operating income XXX from Looking company. Operating the X% in margin the QX effects by for detail LVP The X% for now This to regional XXX translations, quarter year. more in was negative financials currency fourth on and on decreased reasons.

Looking now on next the slide.

We continue to generate broad-based improvements.

supported X,XXX automation by direct initiatives, of our and year-over-year. is productivity as labor improve direct production including This digitalization. our continues to by Our implementation reduce the we personnel strategic

of result points previous quarter. margin year-over-year. increase offset the settlement mainly an direct labor in reduction, by communicated XX%, lower headcount was basis supplier and XXX of sales as improvement and a gross efficiency Our the The partly was

of Combined this improvement with to the of margin. gross for initiatives, beginning result in the margin structural from continued. As substantial a led positive our efficiency adjusted the trend RD&E improvement, year SG&A operating the and the

Looking now the total by points, markets North third basis high improvement points the in a quarter XX in local development by the over we light America. supported fourth call-off light year-over-year. from performed growth percentage quarter significantly from unfavorable of the OEMs the replacement points. Most in quarter quarter beginning for line market expectation was Europe and our of this on and production more vehicle by improving, driven the This to subsidy both next According scrapping South increased S&P in in by slide. on fourth with Global, mix X the expectations. in quarter, of the regional basis China, negatively. In the global in quarter, outperformance X the vehicle as the exceeding policy and impacting America around see volatility did as production Key well resulted

We will detail market in development talk more in presentation. the the about later

on in Looking more sales our now on the slide. next detail growth

quarter. related Out-of-period million compensation X the in The contributed sales reduced by that's USD almost were a quarters currency in cost quarter. Out-of-period X% effects mainly driven year lower to million translation million This currency settled USD This first quarter. retroactive lower in but earlier, negative in net sales other negative compensations the billion. are than were than by consolidated and X.X light and vehicle with compensations adjustments XX translation the lower Our XXX effect was USD fourth price lower cost out-of-period last production, was the XX the period same approximately USD compensations. year.

Asia reflects of XX%. strong for high Looking and our there. China the position the accounted growth It market automotive split. sales markets regional on in

sales production XX% Asia, excluding for compared slide. China, accounted the XX%. next to Americas light We for vehicle for growth and XX% organic and on outlined our Europe

were to slightly regional but mix. Our unfavorable robust, sales primarily customer our due below more quarterly expectations, a and

launches outperformance in were vehicle light in Asia in fueled of significantly Japan, production and rest by and The outperform Asia driven South by to continued Korea. pricing. of rest India and We product Europe,

of We the tilted by percentage the points, XXXX dealer significance Chinese its outperformance from production mix models the lower China, strong result a underperformed of OEMs. light X expect light market towards Chinese X a customers. mainly CPV be the from as launches. In South underscoring and major growth Asian Japanese, inventory we number this In vehicle OEMs by growth India strong the Among to continued of for and domestic X production underperformed Americas, vehicle were a as continued in reductions were quarter, growth. American and we drivers customers primary company in

organic growth for have year full the On the XXXX. the we sales next slide,

to of we by percentage We For percentage than points, production rest year, estimate global vehicle the vehicle XX mix X by the outperformed and regional around the light in in expected by beginning was worse in in full the XX percentage X percentage production points that percentage of Japan Asia year. outperformed points. points X points. X by We light Europe

to an market XXXX. Even resulted OEMs XX%, up and of mix accounted than sales X Chinese so, from negative XX% in by XX% in China. more still they percentage underperformance points for of in the our Our grew domestic China sales

record order to We in in China. leading launches XXXX intake vehicle light significantly should production XXXX, number better compared sales to expect in as of OEMs strong this a to with our new improve performance in result Chinese

X and all is and share excludes leader around strong position global our categories. In is CPV new global and especially we growth, we product almost components regions Supported XX%. sales to XXXX. are was as with points percentage sales Chinese inflators. X OEMs XXXX, vehicle Our the X by XXXX. percentage This to This points of in market launches, higher outperform in market light than market by such in expect production

saw record XXXX. we from number of QX. see model We On next a in significant key the slide, launches some launches

from we position anticipate a Chinese USD Chinese XXXX, of OEMs. In the around here The and shown capturing in growing alternate For over Indian in X these content XXX success models an Slide, of OEMs to OEMs vehicle with XXX. from our models high per USD India. have number OEMs This launches, our market. from and with this X in also growth highlights especially Chinese are

terms model supported we significant. first the potential. of In higher Autoliv the these sales to highest potential, are sales the most on Desire airbags center models. a with is by trend time Toyota front CPV is of India XRunner long-term Suzuki and in X The have the This and

several the since on next business new the slide. looking In This XXXX. to technological XXXX. of platforms postponed industry's and Now be level by large sourcing of causing lowest sourcing XXXX, at the driven the geopolitical uncertainties, until was was

growing shorter. our share lifetime a average addition, this lifetime from share In with shortening intake a have significant In couple as with the the XX% share Chinese OEMs market compared to rapidly of of OEMs -- is to that book of XX% current is market group. Chinese years improvement an typically Models exceeded model OEMs Chinese order and increase. order close

to the supporting order industry more the the This our driver a order markets on to a self-driving deploys but the strengthens range new broader order bolstering market We slide. vehicles, next the our enhances ability position, in North detail of and In Looking intake of expansion intake that X/X business Safety including new China wins only on our of multiple America Autoliv Solutions in or for mainly trends for vehicle from innovative for intake. not type successfully automakers XXXX, commercial almost safety business. steering dashboard secured airbag mobility ceiling. accounted sector solutions won deliver new in awards like customers. and our foldable has also

product order carbon cushion also airbag level to airbags the We innovative XXXX automotive success. These reduce launches cost We supports contracts in the in a anticipate similar also module. XXXX. impact, a safety. as This in number of of towards environmental featuring Thanks the airbag years. significant the to not progress lower sustainability step won low robust only material that in but the recent our be on long-term intake

Sustainability the differentiation for stakeholder now during XXXX slide. our at Let's on driver sustainability program important an the is value business next integral an part and creation. market of and strategy look

based area. and with approach for sustainability Our clear is defined each focused on ambitions areas X targets

During a within activities and concluded XXXX, these of areas. number we initiated

example, XX%, emissions by operations share readiness expanding significantly program effects. survey positive our incidence protection for For to and a and their of renewable we support increased launched improved including and to diverse our users. We gas XX% testing, environmental for continue recordable selection goals, performance climate road accelerator reduced chain by supply them. we Through X annual integrated supplier ages supplier our climate to XXXX, net We climate to addressable financial collaborations, into and were we vulnerable to having assess, electricity the address greenhouse users our shapes, conducted own in also compared rate, expand and genders. body

now the slide. will to Fredrik hand Westin. I over Turning it

Fredrik Westin

financials more next few details the about Thank you, talk in on Mikael. I will slides. the

So XXX X% $X.X net percentage quarter operating the million of higher points. representing adjusted income slide turning million by to figures This $XXX margin retired points higher operating XXXX. higher to million reversal our next taxes by by operating number and income the from $X.XX shares. driven impact total by The $X.XX, and sales highlights quarter, increased the impacting key main capital XX%, earnings decreased diluted the and and fourth than reported repurchased shares a share we positive adjusted basis higher slide. XX.X%. The Adjusted from XX% USD alignment decrease. $XXX billion, compared return of million solid nearly dividend increased accruals. capacity partly adjusted quarter on to adjusted exceeded The thanks a income XXX was to per a from equity. We buybacks our million from for were by by per operating drivers $X million for from operating the the of in XXX where shares. margin and the and X.X on adjusted increased gross XXXX nonoperating $X.XX The SEK fourth and $X.XX gross to was items, $XX around income lower return from paid million compensated the employed $X.XX share The share a $X.XX profit and financial equity increased of of of X was

from lower efficiency net operational lower costs U.S. to income million versus Looking Out-of-period the The currency $X positive the increased baht was accuracy Mexican peso adjusted recall well materials Operations yen the effect quarter effects million from higher by with Mexican negative lower bridge versus the the income from million impact was effects the the euro, the $XX around and factor was of was year. Costs for was SG&A the as effects, offsetting now quarter. largest compensation for net despite translation the off production. next and and $XX Thai from call of light costs million, from won. $XX versus higher in Japanese slide. of transaction $XX mainly million X In net $ earlier, the raw The mainly of peso the the adjusted and increase million, settlement, operating contributed lower around as last versus negative SG&A as market offset dollar offset on sales. The on improved XXXX, headwinds fourth million on Korean higher negative. cost U.S. dollar supply engineering slightly vehicle operating than the was by $XX the income. mentioned personnel RD&E increased fourth our impact Mikael from despite the

and the volatile inflation, on production customer and supplier labor XXXX Looking now again vehicle by next light year slide. at results impacted price and cost was lower the full negotiations.

Dividends profit, $X.XX Adjusted paid. Despite adjusted we share, the operating were per headwinds as of billion, decline guidance. operating billion, as sales, USD flow repurchases. partly X.X% result $X.X highest margin translation lower achieved. The on share X.X% operating income earnings The X% was share and line cash increased effects. cash XX%. billion. compared of currency a in ever operating per the over the increased sales share negative around to with adjusted all The $X.XX Our to per well $XX.X to net our market the per were flow adjusted operating to were was as X have share earnings of a guidance X.X% by

next Looking now the flow in slide. the cash detail on more at

$XXX the year, the -- X.X% quarter X.X% by $XXX decreased period cash favorable was in million a by versus the to due flow was decreased cash flow fourth expenditures relation earlier. million mainly positive XXXX, development. $XXX net year. less million the X.X% compared to For sorry, of prior expenditures net the Capital last to year period previous positive to to operating to capital $XX in versus a same operating compared working same the sales $XX million compared million period free the same The Capital year.

capacity, operating mainly free net to we to expect term to in flow relation on is free target net due line expenditures flow in million. full was The to billion, in $XX in increased footprint slightly the net our in mainly cash in the For XXXX, above $X.X in Asia X.X%. This Capital year Capital was cash optimization. operating by and decreased expenditures what $X.X XX%. higher net cash longer relation unchanged was as around sales investments conversion million operating $X for billion. of XX%, The flow cash income almost income. XXXX, with by at defined level

decreased development inventories. the XX.X% lower where main The working million million trade at working by $XXX slide. accounts call-off improvement $XXX $XX on efficient Trade looking year. $XXX improvement compared result trade million a capital payables in the working enabling accounts XX.X%. trade Now to sales, capital drivers and multiyear our in capital to the lower million in working to period program improvement an capital lower last were and In inventory next of receivables, more accuracy, working from a decreased relation our is customer capital management. in in same

we date, working $XXX Our to have improve And million. capital capital $XXX program efficiency to million. by aims around achieved

next Now looking slide. on on shareholder returns the our

capability years, Over different conditions. solid the cash across its to flow Autoliv market has demonstrated generate

new company. buybacks, returned setting record During XXX for to through share dividends shareholders we USD million and the XXXX, over a

We to our X.X shareholders USD returning billion. by stock program, for X flow the shareholders, repurchases factors, conditions general have executing reduced we term. in leverage billion short the credit the current in debt the outlook, and the debt as including long XX%. When XXXX, best always reduced we both is consider the Since significantly well ratio. number the our program directly this rating cash strive the to stock repurchase shares sheet, and over over what years, net several our business X last totaling as of balance Over balance initiating USD our the includes we while have outstanding

our Now consistently has next prudent to balance on a ratio, looking the reflecting and continue to leverage approach has our invest Slide. fluctuations, a stakeholders. commitment financial leverage development in company strong on sheet. enabled to This delivering value and ratio navigate debt the strong maintaining Autoliv management prioritized economic innovation

While million, XX-month XXXX, you, X.Xx. it our net to during was hand and investing increased ratio by leverage the in footprint back over debt at while X.Xx unchanged XXX shareholders I $XXX EBITDA million million. With to Mikael. USD ratio trailing our that, by $XX debt third the quarter, decreased Compared by as returning leverage decreased our adjusted our to

Mikael Bratt

On the Fredrik. next you, to slide. Thank

we production we As S&P factoring the vehicle particularly the X.X%. The market latest in forecast of moderate for following China specific first enter and fourth a last outlook quarters. Global stands expected adaptation EV decline vehicle the light X strong inventory vehicles. This it North following analysis, of fourth on scrappage X to vehicle almost first over for share The to due America is in by vehicle quarter, system in over year. is to for quarter, mainly quarter built on replacement X.X%. for guidance The XXXX X% need light S&P's the of first versus years, America the in global production main regional in S&P full is for slower has continued where is line persist, minus the drop our X%. have LVP the ongoing past quarter vehicle the to light global at is inventory LVP projected averaged extension policy drop China, and headwinds X% the region decline forecast a XXXX. and to production what LVP more the is light than trend mix year. LVP first the Global's million of in minus a the year global a performance indicates significantly forecast observed the global X% to in particularly of of is reason XXXX, is quarter, X%. From vehicle forecast The quarter recent the the and The projected is Based the increase a by expected XX%, own OEMs to the losing adjustments. but first our higher and quarter influences, with around And Europe Europe corrections. around decline for full in outlook growth. in The reduction production North

business the Slide. on outlook the looking Now on next

We geopolitical LVP year risks and the with be to XXXX expect for a declining challenging industry automotive remaining.

continued our efficiency further expected to of support focus our is improvement profitability. However,

significantly a financial continued level shareholder of sales cash improve to that continued expect flow foundation performance in to sets and for solid and high balance returns targets. We a our and China sheet strong the our commitment our

We pressure Americas. some and from labor, pressure moderate we expect expect Europe in but the from especially XXXX, coming cost still inflation in to mainly

in on level. than We average but of be expect XXXX, XXXX to call was pre-pandemic volatility the than higher slightly in remaining lower it

development also We throughout in gradual improvements the year. in a the improve gradually first margin, of quarter should and throughout few similarly the anticipate operating years with past relatively sequential quarter terms which challenging a we've weak first seen as year,

we production, closing, sales to compared continued supported summarize and currency higher we of that conditions outlook, versus initiatives, to structural XXXX. future We light improvement confident But and enable as potential manage experience become the have next our expect to the favorable economic challenging improved more cost position, the In mindful and risk effect. outperformance our XXXX well tariffs. This strategic is Slide. vehicle primarily as resilient leading done agility to am deteriorating profitability and to I reduction will remain work by conditions. us our Turning sales of

other our which from effects Now year Slide. detail the excludes and guidance XXXX guidance, full discrete in Slide looking XXXX on antitrust-related shows on capacity This next matters items. alignment, the

we tax currency operating increase full rate is decline Our translation be adjustment by to be around global light USD Based and on around for effects this, vehicle around on to adjusted -- a that is around expected organic will cash of based X.X%, expect guidance around is our X%. the XX% sales minus net X%. sales X.X margin XX.X%. Operating to a year billion. the guidance around flow on of for The XX% guidance production

flow XXXX sheet our may cash positive impact any trade balance supports include returns. level trend and increased does strong to high Our our continued not shareholder new operations. other which or of tariffs for our or commitment guidance limitations, The

are adjust to closely monitoring to prepared agile any are and situation as to be We such the development. possible

earnings now to the open from formal I on our call. comments for Looking next for it we would investors. like today's And to operator, the concludes questions hand This line Raf. analysts Slide. up and back

Operator

We are from to our Fargo. Wells Colin Langan questions of going come [Operator Instructions] question. with proceed the first from now The line

Colin Langan

Maybe margins if of we the some you could about just the start with think when maybe takes and year-over-year. puts framing

million we recoveries? maybe I then And that XXX% is inflation, through framework like is the the of kind that Is the of be a the think transaction. about? of $XX the And with think framing should drag. that then restructuring you help we thinking any be news was good that Or negative? net year mean expecting? of mentioned does maybe that offsetting labor should effects a in I I 'XX,

Fredrik Westin

Yes.

also gradual and is excess $XX labor small had the the recoveries in with expecting from are in where all of down. I versus inflation customers, a inflation It's million cost we've mean, our from and said commercial expect, other this than offset refrain are the And from last XXXX I sum what we're the But talking On a the should feed will have inflation. first here now headwind FX, that, our to settlements be we throughout about already. what replace price us. on inflation when majority numbers continues line but pairs then labor in -- of side. the was savings on continue And when then cost from the the the restructuring, to it's different ambition gradually before, operating it here fall versus is we headwinds lump that obviously, XXXX. year, And had savings expect us. we we it's give expectations expecting the were that to cost to to gradual seen in, but don't we the for guidance in contribution Then we throughout in. we from them included of contribute. want the $XX percentage hitting as I although -- offset year, we've the inflation clearly than come to million a agreements But them currency is from the kicked improvement, as we would for positive the be supplier to some quarter around now but margin And by an year. need away have a incremental higher full pairs inflation and what

Colin Langan

goods to place, Mexico offset lot Obviously, days of be That's offset us impact headlines Got if the might work these you tariff frame U.S. from very would able a to in help on And an is you how think you and tariffs, it. that customers how with helpful. much be? that? to of around particularly a Can

Mikael Bratt

us, implemented of And it's tariffs No, would I there. for mostly tariffs. Mexico, think or U.S. question when a be if

that's to necessary on passed course, that our Of customer is there.

at a vehicles I be any as why ourselves be our absorb that are a as as will it there because discussion that to immediately with preparing sold higher for for come. ultimately, in mean, supplier, should might in reason that like we, customer no U.S. cost I that. mean would we the And soon cost all And So is start

that So immediately. That's discussion. would start

Operator

proceed going to of Edison line question. are with our next questions Deutsche the Bank. from come We now The from

Unknown Analyst

going mix I'm First positive that of up you impact going actually are on Is kind from what forward relative embedding to in XXXX? be XXXX? the to curious, outlook. a

Fredrik Westin

a around versus percentage expect in mix point negative XXXX. We XXXX X

'XX. better should in it was -- we So it than be

around mix, point. said, we as X 'XX improve there points, a we and around And negative and X So between percentage maybe that to then percentage had correction. should X in X

presentation be X I mix in X would percentage basis the in negative think points points QX, we said that before, QX. in

Unknown Analyst

Understood. there a think Understood. you the And I kind called the platforms. order programs and Can slide decline. a you those then what you And the when know of of or I you big couple obviously, there's couple a would intake, sense showing happened growth, have or on out impact big on you any? us expect give if what expect of a of

Fredrik Westin

seen, since we the Yes. -- from I activity as lower basically spun business. customers mean we we the I saw, mean, electronics sourcing our off it's have

on mean, So it unusually come is I to also on production. of is location But what rather side. the down sourcing see discussions is continued that has around there uncertainty what a year. we of low the uncertainties that see of to we which also OEMs sourcing, unusually been top are that, a activity, leading due it lower the sourcing was throughout projects What drivetrain on to lot

And in more would than significant XXXX actually which location produce into had start where going platform. would overall development and they expected year. the on the impact that's or So had certain in a we market a

there year. incumbent that of the half that come the couple that that, here also said have are into also that we a We during should are expectation platforms this XXXX. first in been of here And delayed sourcing the is

Operator

proceed to question. our going of the Chris The now line come are with from next Evercore. McNally from We questions

Chris McNally

China, obviously think X guide a by different region. of ranking at your think in Actually, from I up the just and of across strongest don't X% shot could about think But to regions, just was question sort a Europe. plus if weakest Edison's midpoint, you you mix about on organic and America sort wanted I I North way. take wondering non don't when to follow organic Asia, at

to the Just sort highest we of see may lowest? where

Mikael Bratt

No.

position Asia, see that of growing, there. we I OEMs in is our as And course, there. strongest have would have, we in Chinese where India share here say, at LVP have here think challenging I market we where but rest also market are America continue the strong general the from see growth already mean, to I we a I indicated situation growth in only growth we have, strengthen Asia. LVP when and the I And you leading opportunities then, course, we in Europe say, content with also, North China, course, here, also not of taking mean, contribution look of the there. you and also, would growing of

here. I So have picture a year we it's the as bit think this little yes, seen same

So the trend continues more.

Chris McNally

hear with towards to that positive. super turning it's It's growth of is encouraging. implies top nice I but market it the know sort China qualitative, over had there

that. mentioned You

down X sort German regulations. America Second America the the question less mix it's of Europe, to Again, of that the North be probably NEV when Europe? a in Detroit going North X where digits, given and of mentioned -- should on the is the Or in mix X X weakness a for growth is about more XXXX and the really sort the forecasters most, OEM regions? independent of low we also the issue the think in X, you in to it Europe, there year, tougher is impact mid-single where minus those some is the secular

Mikael Bratt

those I mean, to, would regions. I overall, related think, I the it's would No, in situation I say, much economic say, very

the So I is production mean the LVP it's that se, there. per challenge biggest

drivelines to forth. the the around it's here specific so and more from an consumer end on level, end on no, there OEM I uncertainty mentioned related the was from would overall nothing what So affordability before say consumer,

So it down. holding

Fredrik Westin

of these when also course, comes to it the of regions could export competitiveness, you And say. out

Operator

line going questions now of Vijay to our the next come Mizuho. proceed The are We question. with from Rakesh from

Vijay Rakesh

wondering growth, Just look assumption?. embedding potential down of in the here I any how that just the EV like we the organic tariffs at tariffs LVP you're pipe XXXX how looks what side Mexico impact the what embedding coming pace, you in terms a or do quick even to question. are X% mandate -- or you When in the on Canada, that

Mikael Bratt

think very about the the many and would in it's tariff I say, as I scenarios of to guidance example. here. it. on can for XXXX of length you basically view No, included reason, no for an level the Yes. is It's tariffs tariffs, different assumptions mean difficult have a there the

we on. in we detail here, included terms potentially have So about then impact the the of point here. the may own It's end consumer, immediately closely. very customer on our it the from we following have outlook in And there, negotiating this not will no as And that we that is something time. impact the with are demand in if start said at passing around

Vijay Rakesh

is Got out to the see and would look CPV average focusing And definitely on of encouraging you're CPV, where like When there on China, just on how approximately on you much wondering say, see it. XXXX. step-up at that XXXX, a in average then you let's the that.

Fredrik Westin

slightly. mostly to in year-over-year, the we as that And was more these market XXXX have XXXX that where saw, we to mix said China before, went Actually, premiums, CPV favored down due the lower-end scrappage vehicles.

to see we reverse but market we saw So overall vehicle expect the XXXX. the in actually China this that year-over-year, with have went content down to that, -- per in

Mikael Bratt

is, of course, vehicles And the market content all the the the in segments increase to here. trend in gradually different in

a of nature say, would this result OEM the is shift in temporary more mix, so the speak. I as So to a

Operator

from our going of Hampus come line questions now with the from We're Handelsbanken. proceed to question. Engellau next The

Hampus Engellau

on maybe lot changing average. I your on in Europe And to it OEMs having outlook, on on on just LVP me. MG has for X relation you for moving because on of directly of just years the the at over questions the Two your in XX.X the LVP. will a with a the at that the I when come measured same parts a I talks on on penalties par look tariff time, S&P on and that the OEMs fail -- the maybe think with or first we that also back wanted based XX% included it S&P ongoing is your what being battery electrics have massive my question. series operating program That's and X.X with U.S.

with bit little is vehicle a if on per what's by a India? I could have talk content market about the OEMs? you in this share know question and there more Second commitment happening -- you

Mikael Bratt

Hampus. you, Thank

On own coming we -- adjusted we're based we negative S&P upon, what our that on what it in the with But mentioning adjust are we when the LVP look X.X% short year-on-year Global is there. mean, maybe -- outlook as weeks, mainly the next LVP-based here. we insights with I is the the always, and at based the on on months, I here total say will I

not, as we have own and judgment tariffs here So our I so mentioned here, impact before, made on potential on. on

not we our included it have the So side S&P in here. in it on massaged is there, the is but extent

that here, $XXX. to and we when here I was XXXX, in crystal else. anybody think close it for I to said, so see onwards even raise we a comes ball to Overall, And mean, around here. better expect as have $XXX in year, don't than we continue to next to $XXX size India, it improve. we it And So

So And are alluded CPV and opportunities with in the to share to XX% have about well market positioned both growth the see we to here our India, what India before we we contributing this. in this. LVP capture

our for X% equal India is And -- here. to Korean which the basically it's of market sales, stands of South X%

Operator

going the from our now the question come next proceed to of and --. has We're question line with

Unknown Analyst

you're like first then goes My quite specific the question that great to second color reading just I compares to that an kind And Or guide to some QX. imply share is don't a know, you're an transactional you that into be specific back level the in nicely. of accuracy that my question that. line the ForEx if headwinds picks ForEx offset more It exit for give But at could it you you effects. favorable referring built rate on guidance. EBIT want see the that And net on a just does on up looks a expecting? top against is how point to very would 'XX the level? tailwind Fred,

Fredrik Westin

Yes.

exit XX% on be a fourth also and better of Americas that that, lower call as stability, in -- Europe, see development rest as good indicated should and XXXX be saw to of average the at at Asia, the And 'XX average. say, on reliability we whereas we than we we at China in levels. on graph believe were So here, you there, so level terms the in quarter, rate a around in in we of continues

we believe, be I it again? you think, So between can question continues ask second somewhere Michael, that And your XX%, is to encouraging. range, XX% which

Unknown Analyst

for Yes, sure. Thanks that.

against back that Just or Or be to that for that you're the top that just statement tailwind an see point effects? is on you to level imply an ForEx headwind from guide net ForEx. line transactional a it transactional EBIT meant at the offset seeing? effects Does

Fredrik Westin

about fourth peso Mexico, around effect they saw for yen yes, on I don't base mean But offset honestly, with effect. when transactional we importing said, the in that million obviously, by -- all development, against baht, the full want our cost effect dollar they the I as But Mexican a and with quarter million roughly I -- very the and I the into Japanese what for dollar peso was euro-denominated a U.S. $XX had won, transactional positive Korean in to to guide development positive us. that pairings Thai were year. had then negative then mentioned the against already products currency the was U.S. $X the

from almost positive So effect saw peso. we completely the that offset the

depending up. how on have assumptions moves guidance the and forecast this -- basing to our so the see FX slide where on rates what on it's the currency you we're And end here, , we'll have then

Unknown Analyst

If one. X clear. just Okay, in I final could sneak

in of HX beginning Or you previously, think the at the Just in of confident see still more it I around the expectations that outperformance that Is you're could some to more start outperformance a phasing already China, case? is your XXXX. improved of little situation? terms an

Mikael Bratt

No.

and it's exact here, I to, a shift as the that here as orders result that due we here timing always taking. seeing it you be of about the we think incentives said, said increased share real difficult is push in have the place. here are I But a feel what will here on of we're to to we trend mean, gradually are we that the confident due in the improve

to So are the back as on through. right place exact track and come the we the come on detail

Operator

from come next George We our of from are questions now question. The going line proceed Sachs. to the Goldman with Galliers

George Galliers-Pratt

I had I X questions, may. if

order the related OEMs it OEMs to It's you offerings? Slide would that apply XX. if order the on The to take, new of could OEMs. Chinese if accruing the and to shorter related is? year-over-year. from intake first intake amount to point new on explain order the because absolute on perhaps which you helpful also yes, one, that Slide XX, of to see is I share that Is But having some program. that new is Slide just dollar seem reconsidering around XX XX imply down it very order to product why the of it Or And lifetime that was make Is the OEMs correct?

is reasonable XXXX? more once But to had look that think, is at I we second annum. focused step-up and EBIT per respect implied remained step-up there to buyback The been buybacks this appreciate on year? step-up like the $XXX has expect cash what on forecast I the to the If a give And I dividends? similar for dividend the this has with the returns given more possible mandate into shareholder on any be average, was be around and the any reason $XXX guide expect and looks mark also it flat any Is us X can it question you assume we insight step-up is, around if flow, million last years, to year in shareholder split. the outstanding. returns. might not should in current It the a

Mikael Bratt

you. thank Let me -- start

have new we I launches you call in of let's RFQs. many world thereby mean, the there order to the intake Let we OEMs, support of to in difference factors mainly order that all Chinese order around shortening western here we an also when intake vehicle look lifetime. the, strong also factors market have with of order the here described here this our forward. share in -- intake I me mentioned which the we see out And adding at we and the Chinese safeguarding value those X see comes it, ambition we the the also in the main in growth is start here very feel is in up factors that it we time said, the here, OEMs And we as the there, XX% to is, pushing that it have, that the detail as when we is that And is also move the here. have the that here there. encouraging

is regard, else. as strong more it the is do a said dynamics we and you we now ambition to that what in more When can't our than have very to to the shareholders. industry anything by comes do in than communicate liquidity know, have shareholder-friendly this what in here, we right the here a return this around anything that might not So shareholders we reflecting past, the be or to company returning the

forward going about think forward. would that. of ability couple in And the that are I serious I indicated supports about say, something the years we also, last that to here shows also have that generate we what liquidity going statement is

We that. have and when using we and today are we the have how mandates

in on know, on dividend we homepage frequency -- direct there weekly there. that. of weekly have stable basis Under we a post We on basis our the afterwards. a And report to a increasing dividend, have to ambition you as and have

So much we can that. as yes, think I around that say there's

Operator

with last questions line X question. We Agnieszka proceed are Vilela from the of from Nordea. going now come the to And

Agnieszka Vilela

also, if I in marginally in the a Perfect. it I that? Starting than XXXX, in just you share the what X questions, market expect do may. Can for XX% was have decline 'XX. share, market reason lower And further your 'XX. with in say was you

Mikael Bratt

you. Thank No.

we the 'XX BYD growth that we meaningful around that's marginal. they to and between them. share, to for have book market see no of to And in-house example, selling where the strong it's our feel you a very in their 'XX that for have our is inflator that XX%. The are with market share As of to I not we them included as comfortable China But else and one And selling, safety difference reason support in and the volume would I products. is I is main say actually have we manufacturer them. said, order

if that, here, stable little you in book standing are But my -- So around count XX%. so we would different. a

Agnieszka Vilela

a X Understood. the challenging QX. of And be at mentioned performance, some QX also when in look margin percentage Fair will in terms operating previous point. X the quarter sequentially to that And points then your usually, you margin. by I decreased

production? So similar maybe even due pressure should we expect car to a somewhat more kind of now weaker decrease Q-on-Q or

Fredrik Westin

Right to want It's it's for been of decline don't of number. operating if couple XX%, X sequentially the mean, margin the the would also our years, have points guide I twice we drivers at been been the that, what And mentioned was quarter. decline from during last QX on a operating income. and around higher we're your the on have begin where X specifics leverage look over I a of of as the that in first you X% But seeing the the now, course, lower to impact a so QX. years, past quarter-over-quarter. percentage LVP, presentation, also that

year that side. not be of in year fallaway to the it previous this we've last not income this what than recoveries then in previously because coming different take the need Then and engineering seasonality decline. But typical maybe the has LVP we has also X than so have going in is in it's then year any we That's the years. that if traditional very dissimilar year is to the the combined and what the And to on effect seen you been the that larger that's lower all seen we've of reinstate of or been of lump-sum years. it previous combined, combination throughout inflation

Operator

Bratt hand for session now will closed. Q&A now Mikael The is I back to remarks. closing

Mikael Bratt

June on invite Thank announced be shortly. forward. to you XXXX, I you, I looking with to and pleased we way to am forward our sharing to Day More am Capital our details Russ. how you see XX, Markets

target call, around to emphasize of Before to we margins. our commitment want achieving conclude our operating today's I XX% adjusted

such as LVP our we our in performance. fluctuating markets, trend cost positive and important reinforce in shareholder quality remains challenges Our strong and delivering lower strong continued our return. reduction sheet cash sustainability. Despite market to in structural flow innovation, significant and balance on focus demand The dedication

for your joining call. for Until quarter call first April time, today's value truly Autoliv. Wednesday, is We next in XXXX. Thank you interest scheduled all continued safely. XX, Our drive

Operator

conference all today's call. participating. concludes you for This Thank

You disconnect Thank you. now may your lines.

Autoliv (ALV) 31 Jan 252024 Q4 Earnings call transcript