autoliv general presentation · pdf filenavigation electronic horizon anti-lock brakes...

Copyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedMarch 24, 20171

2017

AutolivGeneral Presentation

v 1.0

Autoliv General Presentation 2017

Copyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights ReservedCopyright Autoliv Inc., All Rights Reserved

Autoliv in Brief

2 March 24, 2017 Autoliv General Presentation 2017


Every year our products save over 30,000 lives

and prevent ten times as many severe injuries


Copyright Autoliv Inc., All Rights Reserved

Our Guiding Principles



Relentless focus on Operational Excellence

5

Our Strategy to Stay Ahead

Quality – Zero defects by

flawless execution

One Product One Process

to improve cost effectiveness

and robustness

Innovation to lead industry

in Real Life Safety

March 24, 2017 Autoliv General Presentation 2017


Human lives saved by our products

… additionally they prevent ten times as

many severe injuries

0

20000

40000

60000

80000

100000

120000

140000

160000

2016 Target

We Save More Lives while Creating Value


Copyright Autoliv Inc., All Rights Reserved7

Creating Sustainable Value


Saving

More Lives is the most significant

impact we can make

as a Company.


>70,000 ASSOCIATES

Superior Global Presence

8

Americas

34%of sales

Europe

30%of sales

RoA

9%of sales

Japan

9%of sales

China

18%of sales

>83 FACILITIES 27 COUNTRIESWORLDS LARGEST AUTOMOTIVE

SAFETY SUPPLIER



THOUSANDS OF

R,D&E PROJECTS

Autoliv’s Research, Development & Engineering

USA

Ogden

LowellGoleta

Auburn Hills

Southfield

Sweden

Vårgårda

Linköping

Gothenburg

France

Gournay

Rouen

Pont-de-Buis

Cergy-Pontoise

Germany

Dachau

Elmshorn

Holzgerlingen

Schweinfurt

RomaniaBrasov

TimisoaraIndia

Bangalore

China

Shanghai

Japan

Tsukuba

Hiroshima

Tochigi

South Korea

Seoul

Poland

Oława

22 TECHNICAL

CENTERS

19 CRASH

TEST TRACKS~7,900 ASSOCIATES

ENGAGED IN R,D&E



Customers

A global leader in Automotive Safety with a well-balanced footprint

March 24, 201710

Autoliv Today

11%

11%

11%

10%

10%8%

7%

6%

6%

4%

3%3%

2%2%

2%2%

2%

Others

Sales

2016

30%

34%

18%

9%

9%

Sales

2016 52%

27%

10%

7%4%

Sales

2016

Global Footprint Products

Europe

Americas

Airbags

Seatbelts

Active Safety Products

Passive Safety

ElectronicsJapan

China

RoADomestic Chinese OEMs

Brake Control Systems



Key Figures Summary

US$ (in millions) 2016

Sales 10,074

Operating income 848

Net income 562

Earnings per share, US$ 6.42

Cash from operations 868

Return on total equity, % 15

Share holder returns 203

Headcount (no. of persons) 70,000

Light Vehicle Production (millions units) 90



2016 in Summary

total sales growthorganic sales growth in

active safety*

in operational cash flowin direct shareholder returns of CAPEX, supporting growth

market share in the global

passive safety market

March 24, 2017

16% 39% 10%

$203m $868m $499m


* Non-U.S. GAAP measure, please refer to our 2016 Annual Report for reconciliation.


Supports organic growth strategy

13

M&A Track Record

,0

2,000

4,000

6,000

8,000

10,000

12,000

1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015

US$ (millions)

Morton ASP

Britax

Autoflug

Sale of Italy

Klippan

Izumi

Norma

NSK

OEA

Visteon Restraint

Electronics Tyco Radar

Delphi OPS

LivBag

IsoDelta

Mando

Visteon Radar,

Aztyx/Hella IP

1) Automotive business


Zenuity

(2017)

Volvo IP License

MACOM1)

ANBS


Innovative Spirit for Robust Solutions



More than 60 years of innovation in Automotive Safety

March 24, 201715

Industry Pioneer with Strong Heritage

MECHANICAL PYROTECHNICAL ELECTRONICS DIGITAL

1950s 1980s 1990s 2000s 2010s



The Road to Saving More Lives


Real Life Safety

Beyond Standardized Test Scenarios… …Towards Real Life Situations and Benefit

REAL LIFE SAFETY

Traffic Safety Research

Passive Technologies

Active Technologies

System Integration


Innovative Spirit

Almost 7,900 people in Research, Development and Application Engineering (R,D&E)

Manufacturing close to customers’ assembly plants in North America, Western Europe and Japan

Local teams support our corporate research efforts

March 24, 201717

R,D&E Expenditure



LIV - The Learning Intelligent Vehicle

March 24, 201718

Shared control between

driver and vehicle

To attain trust required in

autonomous driving

Connecting different

technologies in an

AI-based ECU



Unique Testing Capabilities

ONLY SAFETY SYSTEM SUPPLIER DOING

COMPLETE VEHICLE CRASH-TESTS

6 TRACKS FOR

FULL-SCALE TESTS19 TEST TRACKS

76% OF R,D&E ARE

ASSIGNMENTS ORDERED AND

FUNDED BY CUSTOMERS

TRACKS FOR ACTIVE

SAFETY TESTING

19 March 24, 2017

In 2016, Autoliv continued to lead all automotive safety related

suppliers by globally performing over 625 full vehicle crash tests

in China, Europe and the United States.



Road Fatalities per Country

0

10

20

30

40

50

60

70

80

90

100per 100,000 inhabitants/year

per 100,000 vehicles

Source: Autoliv estimates

105 130



by Major Product Types

0% 10% 20% 30% 40% 50% 60% 70% 80%

Modern Seatbelts

Curtain Airbags

Side Airbags

Driver Airbags

Passenger Airbags

Reduction of Life-Threatening Injuries

Source: Glassbrenner 2009, McCartt & Kyryshenko 2007 and Crandall 2000



Strategy & Products



Our Transformation in a World of Change

Automated Highway Driving

Automated City Driving

Automated Valet Parking

EvasiveManeuvers

Automated Route(Trained)

Automated Route (Destination)

Autonomous Driving

AEB – City AEB – UrbanAEB –

Ped./CyclistIntersection

AssistOvertaking

Assist

ACC /Queue Assist

LaneCentering &

Keeping

Cross-TrafficAssist

Real-CollisionMitigation

Auto ParallelParking

NavigationElectronicHorizon

Anti-Lock Brakes

Stability Control

Electric Power Steering

Blind SpotMonitoring

Ped./CyclistDetection

ParkingAid

Traffic SignRecognition

LaneDepartureWarning

ForwardCollisionWarning

HMISurround /Rear View

Steering Controls

Propulsion Controls

Radar Cameras LIDARUltrasonicSensors

InertiaSensors

GPSBrake

ControlsMAPS V2X

DriverMonitoring



Life-Saving Technologies

March 24, 201724

AIRBAGS

In frontal crashes, driver airbags reduce fatalities

by appr 25%, and front-seat airbags by appr 20%.

Side-curtain airbags reduce life-threatening head

injuries in side impacts by appr 50% for passengers

sitting on the side of the vehicle that is struck.

Side airbags, rear side airbags, knee airbags and

far-side airbags also help save lives and reduce

serious injuries.

SEATBELTS prevent fatalities

The combination of seatbelt, seatbelt

pretensioners, load limiters, lap pretensioners

and frontal airbags reduces the risk of life-

threatening head or chest injuries in frontal

crashes by 75%.

PROTECTING PEDESTRIANS

Thanks to a pyrotechnic hood-lifter and/or an

outside pedestrian protection airbag, a pedestrian

who is hit can avoid head injury caused by the hard

area between the hood and the windscreen or one

of the windshield pillars.



Passive Safety


$ 7,919

2016

$ 7,621

2015

Headcount

2015 59,861

2016 63,134

Operating income

Share of group sales

SalesProducts

Airbags,

Seatbelts, and

Steering wheels

Organized in geographies:

Europe,

North America,

South America,

China,

Korea,

Japan & South East Asia, and India.


Technologies to Prevent Accidents

March 24, 201726

RADAR avoids crashes

- Detects objects in all weathers and provides an

advance warning of potential collisions.

- To avoid blind spot crashes.

- Controls the stop-and-go functions in the

queue

- Long-range radars are used for Adaptive

Cruise Control systems (ACC) and

Autonomous Emergency Braking (AEB).

Steering Wheels Alert

An integrated electrical motor can vibrate

the steering wheel, alerting the driver to

dangerous situations.

CAMERAS – extra pair of eyes

Mono and stereo vision cameras can recognize

vehicles, pedestrians, speed signs and lane

markings, and are used in the Advanced Driver

Assistance Systems (ADAS) to avoid collisions.

NIGHT VISION ASSIST

In challenging lighting – at night, in fog, blinding

headlight and sunlight glare – collisions can be

avoided as far infrared technology shows a heat-

generated image of animals, pedestrians and more.

OPTIMUM BRAKING

Brake Actuation and Brake Control use sensors to

apply the correct braking pressure for a given

condition. They also offer electronic stability control,

anti-locking brakes and traction control systems.

ADAS ECU – A supporting brain

Monitors the surroundings and fuses data from

cameras, radars and sensors to interpret the

situation and trigger ADAS features like emergency

braking or automatic lane change. Satellite sensors

trigger seatbelt pretensioners and airbag systems.



Electronics

Products

Passive safety electronics:airbag control modules and remote sensing units

Active safety products;automotive radars, night vision systems, cameras with driver assist systems and positioning systems

Brake control systems


Operating income

Share of group sales

Sales

$ 2,216

2016$ 1,589

2015

Headcount

2015 4,080

2016 6,778


Sensors - Vision Technology

BROADEST TECHNOLOGY PLATFORM

– MONO – STEREO – NIGHT VISION –

DRIVER MONITORING


VISIONOur camera-based vision systems are the key

to driver assistance and safety functions, such

as accident avoidance. The comprehensive

information gathered by vision systems

provides vital input data for advanced vehicle-

control systems.

(Our Mono and Stereo-vision cameras capture rich

environmental data and process this using advanced

algorithms to warn the driver of hazardous situations.)


The brain of an active safety system


Controls - ADAS ECU

WORLD FIRST CENTRAL ADAS ECU

ADAS ECUOur ADAS ECU is the brain that fuses all vital

information from sensors to make the best

possible interpretation of the situation and

trigger ADAS features like emergence braking

or automatic lane change.


Broadest portfolio in the market


Sensors - Radar Technology

oldRADAROur radars can “see” when cameras are

blinded by darkness or bad weather. Radars

also note vital information, such as range, angle

and relative velocity, complementing visual

information from our cameras.

STRONG PORTFOLIO OF

RADAR SENSOR TECHNOLOGIES


Technology Leadership2016 Central ADAS ECU

2015 Front-position, Side-looking Radar*

2013 Bag-in-belt / Night Vision Fusion* / Mono Vision Camera / AEB Radar*

2012 Pedestrian airbag* / Dynamic Spot Light*/ Animal detection system* / Green airbag inflator

2011 Camera-based Advanced Driver Assistance System

2010 Seatbelt Locking tongue*

2008 Integrated safety electronics* / Pedestrian detection system*

2007 Multi-volume cushion airbag*

2006 Safety Vent bag*

2005 Night vision system / Pedestrian protection hood*

2004 Fixed hub steering wheel*

2002 Anti-sliding bag* / Adaptive load limiter*

1998 Side curtain airbag*/ Anti-whiplash seat*

1997 Side airbag for head protection*

1995 Knee airbag* / Seatbelt load limiter*

1994 Side thorax bag*

1992 Steering wheel with integrated sensor

1989 Seatbelt with buckle pretensioner*

1986 Belt grabber*

1980 Airbag production

1956 Seatbelt production * World’s first



through early lead-to-market and intellectual property

Technology Leadership

Customer World’s Firsts where Autoliv has contributed;

Daimler – Side-looking radar (2015)

Mercedes – Sensor Fusion NIR/FIR for night driving assist (2013)

Volvo – External pedestrian protection airbag (2012)

BMW – Pedestrian warning for night driving (2008)

Ford – Integrated inertia motion control ECU into the airbag ECU (2008)

Renault – Adaptive Multi-Volume cushion airbag (2007)

Chrysler – Safety-Vent passenger airbag (2006)

Jaguar – Pedestrian protection pop-up hood (2005)

BMW – Seatbelts with adaptive load limiters (2002)

Renault – First company to receive “Five Stars” in the EuroNCAP (2002)

Ford – Integrated gyro-rollover sensor into the airbag ECU (2002)

Volvo and Mercedes – Side curtain airbags (1998)

BMW – Side airbags for head protection (1997)

Kia – Knee airbags(1995)

Volvo – Side airbags (1994)

Volvo – Pretensioner (1989)



Our Market



Our Global Passive Market

Statistically, there were

more than 1.5 airbags and

seatbelts from Autoliv in every

vehicle produced globally, despite

many vehicles not having airbags

39% OF GLOBAL PASSIVE

SAFETY* MARKET SHARE

149 MILLION SEATBELTS

146 MILLION AIRBAGS

* Airbag, steering wheel, seatbelt



Global Safety Market Share by Product

March 24, 201735

Market Shares 2016

Market share by Product Market share by Region1)

39%

0% 20% 40% 60%

Active Safety Sensors

Passive Safety Electronics

Steering Wheels

Airbags

Seatbelts

Overall Passive Safety1)

2)

39%

0% 20% 40% 60%

Rest of Asia

China

Japan

Americas

Europe

Global

1) Airbags, steering wheels, seatbelts.

2) Radars, night vision, front view mono and stereo vision cameras, ADAS ECU’s

Autoliv’s share



Light Vehicle Production Outlook 2006 thru 2019

14 1217 17

1614

15 14

11

8

9 8

6 16

26 2818

24

2329

0

20

40

60

80

100

120

2006 2011 2016 2019

Million Units

36

~ 65M

~ 74M

~96M

~ 90M

~39M

~57M

~34M

~40M

Growth Markets1)

Developed Markets

Other

China

Japan

Western Europe

North America

March 24, 2017

1) Growth Markets (Eastern Europe, China, Rest of Asia, South America, Middle East/Africa).Source: IHS January 16, 2017



Growth Drivers by Region1)

37

8,310,5

5,1

6,53,5

4,05,2

6,55,1

6,5

0

5

10

15

20

25

30

35

40

2016 2019

US$ (Billions)

Other CAGR ~ 8%

China CAGR ~ 8%

Japan CAGR ~ 4%

Western Europe CAGR ~ 8%

North America CAGR ~ 9%

1) Company estimates. Includes seatbelts, airbags, steering wheels, radars, night vision, front view mono and stereo vision cameras, ADAS ECU’s, airbag control modules and remote sensing units.

2) Growth Markets (Eastern Europe, China, Rest of Asia, South America, Middle East/Africa).

CAGR = Compound Annual Growth Rate

~ 27B

~ 34B

CAGR ~ 8%

March 24, 2017


Growth Markets2)

Developed Markets


Growth Drivers by Segment1)

38

19,722,0

7,5

12,0

0

5

10

15

20

25

30

35

40

2016 2019

US$ (Billions)

Electronics CAGR ~15-20%

Passive Safety CAGR ~4%

1) Company estimates. Includes seatbelts, airbags, steering wheels, radars, night vision, front view mono and stereo vision cameras, ADAS ECU’s, airbag control modules and remote sensing units.

CAGR = Compound Annual Growth Rate

~ 27B

~ 34B

CAGR ~ 8%

March 24, 2017



Long-term expansion in growth markets


Autoliv

Manufacturing

Facilities Se

atb

elt

s

Air

ba

gs

Ste

eri

ng

Wh

eels

Ele

ctr

on

ics

Bra

ke

Sys

tem

s

North America

South America

Europe

Japan

China

Korea

India

Asia other

39 March 24, 2017

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2006 2016

Headcount

Best Cost Countries High Cost Countries



All Major Vehicle Manufacturers

40




Significant Launches in 2016

March 24, 2017

Mercedes E-ClassDriver airbag with steering wheel, passenger

airbag, knee airbag, seatbelt with pretensioner

and bag-in-belt, ADAS control unit, radar

system and camera system.

Volvo S90/V90Driver airbag with steering wheel, inflatable

curtain, active seatbelt with pretensioner, safety electronics and cable cutter.

Honda FreedDriver airbag with steering wheel, seatbelt

with pretensioner and brake control system.

Mazda 3/AxelaDriver airbag with steering wheel,

passenger airbag, side airbag, inflatable

curtain and safety electronics.

Ford F-Series

Super DutySide airbag, inflatable curtain,

positioning system and safety electronics.

Toyota CH-RDriver airbag with steering wheel,

side airbag, inflatable curtain and

seatbelt with pretensioner.

BMW 5 SeriesDriver airbag with steering wheel,

passenger airbag, seatbelt

with pretensioner, night vision

system and cable cutter.

Chrysler PacificaDriver airbag, inflatable curtain,

knee airbag, seatbelt with

pretensioner and radar system.

Honda CR-VRadar system, brake control system

and seatbelt with pretensioner.



Autoliv Production Volumes 2016

42

Front

Chest

Head

Knee

Withpretensioners

Without pretensioners

0

20

40

60

80

100

120

140

160

Seatbelt Airbag Steering Wheel ECU

Million Units

Global Light Vehicle Production



YTD 2016

466

9

10

10

12

13

14

18

21

21

23

23

25

58

60

65

67

75

87

87

100

Phillipines

Tunisia

India

Thailand

Mexico

Indonesia

South Africa

Romania

China

Turkey

Poland

Taiwan

Hungary

Brazil

Estonia

Japan

Spain

South Korea

Canada

US

Germany

France

Sweden

Direct Labor Cost per Country



Our Employees



The Success of Our People

In a highly competitive and rapidly changing environment we rely on the skills of our people to be able to adapt quickly and find ways to meet our customers’ needs and create shareholder value.



Our Human Resources

46

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Headcount

SG&A

RD&E

Production - indirect

Production - direct



Well Balanced Workforce



Financials & Statistics



Autoliv’s Targets

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2012 2013 2014 2015 2016

Organic Sales*

Automotive Safety Market Growth, % Organic Sales growth, %

49

In 2016, Autoliv's organic sales

increased by 7%, compared to our

underlying automotive safety market

that grew by 8%. Sales growth was

particularly strong in China and Europe,

which grew by 14% and 10%,

respectively, partly due to Electronics.




Autoliv’s Targets

50

Our target ratio is around one time, within a

range of 0.5 to 1.5 times. By the end of 2016,

Autoliv had a net debt of $313 million. The

leverage ratio was 0.4. There were no share

repurchases made during 2016.

0

0,5

1

1,5

2

2012 2013 2014 2015 2016

Target range Long-term Target

Leverage ratio*




Autoliv’s Targets

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2012 2013 2014 2015 2016

Operating margin*

51

Target range

Autoliv achieved an adjusted operating

margin of 8.5% in 2016, within our long-term

target range. This was achieved despite higher

R,D&E, net, and other costs related to

investments for capacity and growth as well as

acquisition effects.




Autoliv’s Targets

52

In 2016, adjusted EPS (excluding antitrust related

costs) grew by 11%, which was approximately 4

percentage points better than the organic sales

increase. The operating profit and the number of

outstanding shares were higher than prior year. The

increase in EPS was mainly driven by lower costs

for capacity alignments.

Earnings per Share*




Strong Organic Sales Growth

53

-

2 000

4 000

6 000

8 000

10 000

12 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US$ (Millions)

Europe

Americas

Asia

In 2016, consolidated sales were

$10,074 million. Excluding negative

currency translation effects and positive

M&A effects from our recent acquisition,

Autoliv grew 7% organically, making it

the seventh consecutive year with

organic sales growth.*




Active Safety Adoption

0

20

40

60

80

100

120

140

160

180

200

220

0

1

2

3

4

5

6

7

8

9

10

11

2012 2013 2014 2015 2016

Million units Models

No. of units No. of vehicle models

54

The rapid adoption of Active Safety

continues. In 2016 we shipped ~32%

more AS units than in 2015. Organic

sales grew by 16%, and we delivered

Active Safety products to more than

160 different vehicle models.*




Investing for Growth

55

Our capital expenditure, net in 2016,

was 4.9% of overall sales or $499

million. Investments in production

capacity to support further growth,

vertical integration and inflator

replacement business continued.

Major investments were mainly made

in Europe, North America, China and

Active Safety.

3

4

5

0

100

200

300

400

500

2012 2013 2014 2015 2016

Capex, net % of sales, net

US$ (Millions) %



Shareholder Returns

56

0

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

US$ (Millions)

Dividend Share Buybacks

In 2016 Autoliv returned a total of $203

million to shareholders through regular

dividends. There were no share re-

purchases in 2016.



Cash Flow vs. Capital Expenditures

0

100

200

300

400

500

600

700

800

900

1000

2012 2013 2014 2015 2016

Cash flow from operations Capital expenditures, net



Capital Expenditures, net vs. D&A

58

%US$ (Millions)

0

1

2

3

4

5

6

0

100

200

300

400

500

2012 2013 2014 2015 2016

Depreciation & Amortization Capital Expenditures, net Capex % of Sales



Capital Turnover Rate1)

59

1,0

1,2

1,4

1,6

1,8

2,0

2,2

2,4

2,6

2,8

2012 2013 2014 2015 2016

Times

1) Sales in relation to average capital employed



Net Sales and Light Vehicle Production


8 2678 803

9 240 9 17010 074

8083

85 8690

0

10

20

30

40

50

60

70

80

90

100

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

11 000

2012 2013 2014 2015 2016

Consolidated sales Global light vehicle production (LVP)

US$ (Millions) Units (Millions)

Source: IHS @ January 16, 2017


Target= 1,000 (end of 2016)

14901403

1248

11191010

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2012 2013 2014 2015 2016

61

Autoliv’s Targets

1) From 2014, the count excludes spare or service part suppliers. The General Purchasing Conditions, GPC, commit suppliers to provide parts for 15 years after end of production.

2) Excluding the ANBS joint venture supply base.

Target

1)

1)

Numbers of Suppliers


1,2)


Direct labor productivity measured in LMPU (labor minutes per produced unit). Target= at least 5% reduction in LMPU

6,1% 6,2% 6,2%6,4%

6.7%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

5,5%

6,0%

6,5%

7,0%

2012 2013 2014 2015 2016

62

Productivity Improvement

Target


Each year, Autoliv’sproducts save over30,000 lives

autoliv.com

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