June 4th, 2025
Today's Agenda
13:00 - 14:30 Welcome Anders Trapp/ Gabriella Etemad
Leading the Way: Charting Our Path Forward
Mikael Bratt
Driving and Creating growth in a Dynamic Market
Megan Fisher/Sng Yih
Driving Growth Through Innovation in a Dynamic Market
Fabien Dumont/ Cecilia Sunnevång
14:30 - 14:45 Break
14:45 - 16:10 Driving Profitability Through End-to-End
Operational Excellence
Staffan Olsson/
Jesse Crookston
Transforming Growth into Sustainable
Margins and Shareholder Returns
Fredrik Westin
QKA All
Conclusions Mikael Bratt
Welcome to Autoliv's
CMD 2025
Safe Harbor Statement*
This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-l ooking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking sta tements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we beli eve there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements ar e inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future re sults, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "esti mates", "expects", "anticipates", "projects", "plans", "intends", "believes", "may", "likely", "might", "would", "should", "could", or the negative of these terms and other comparable termino logy, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from t hose set out in the forward-looking statements for a variety of reasons, including without limitation, general economic conditions, including inflation; changes in light vehicle production; flu ctuation in vehicle production schedules for which the Company is a supplier; global supply chain crisis, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; geopolitical instability, including the ongoing war between Russia and Ukraine and the hostilitie s in the Middle East; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring, co st reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy, and other costs; changes in consu mer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations, or restructuring or divestiture of customer bra nds; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operati ons of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and inves tigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher fun ding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with r espect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relati ng to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes imp acting or limiting our business, including changes in trade policy and tariffs; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and r elationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified under the headings "Risk Factors" and "Manag ement's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. F or any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Liti gation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.
* Non-US GAAP reconciliations are disclosed in our regulatory filings available at https://www.sec.gov or https://www.autoliv.com
This presentation Includes content supplied by SGP Global; Copyright © Light Vehicle Production Forecast May 2025. All rights reserved.
SGP Global is a global supplier of independent industry information. The permission to use SGP Global copyrighted reports, data and information does not constitute an endorsement or approval by SGP Global of the manner, format, context, content, conclusion, opinion or viewpoint in which SGP Global reports, data and information or its derivations are used or referenced herein.
Autoliv Capital Markets Day 2025Leading the Way: Charting Our Path Forward
Mikael Bratt
President E CEO
Main Topics
Sustainable increase in shareholder returns
Ambition of average annual share repurchases between $300 and 500 million through the end of 2029
Attractive and growing quarterly dividend
New stock repurchase program of up to $2.5 billion effective through end of 2029
Reiterates 2025 Guidance
Reiterates targets
Welcome to Capital Markets Day 2025
Autoliv's Products Save
37,000 Lives per Year
37,000More Life Lived
(illustrated by Copilot)
Copyright Autoliv Inc., All Rights Reserved Public
June 4, 2025 2025 Capital Markets Day
Leading the Way
2022
Light Vehicle Safety Market Leader Mechanical Components
Functional E Divisional Execution
2025 Capital Markets Day Copyright Autoliv Inc., All Rights Reserved Public
Energy Efficient
Aspiration
Safety for Mobility
K Society Market Transformer System Integration
One Team
Carbon Neutral in Own Operations
2025
Light E Commercial
Vehicle Safety
Market E Commercial Influencer
Electronics E Mechatronics Systems
End-to-End Way of Working Low-Carbon Energy
User
Our Strategy for Change
Enables us to Adapt to a Continuously Evolving Automotive Industry
Driving Profitability Through End-to-End Operational Excellence
Driving and Creating Growth in a Dynamic Market
PROFITABLE K CAPITAL
EFFICIENT…
THE AUTOLIV WAY
…GROWTH
Driving Growth Through Innovation
Transforming Growth into Sustainable Margins and Shareholder Returns
Significant Progress Since 2023 Investor Day
- Despite Market Challenges
What have we achieved since last Investor Day?
Implemented Strategic Initiatives and Optimized Footprint
Achieved Cost saving through Automation E Digitalization
Successfully Negotiated Cost Compensations
Executed on the Capital Efficiency Program
Grown topline by 18%, outperforming LVP by 9 percentage points
Expanded Adj. Operating Margin with over 2.9 percentage points
Increased Return on Capital Employed (RoCE) to 25%, an improvement by 7.5 percentage points
Returned over $1.5 billion to shareholders
Headwinds since prior Capital Market Days
Inflation
%
12%
Volatility
Average Customer forecast accuracy %
100%
LVP Market Mix in China
Stronger than expected Growth for Lower CPV Vehicles
35
10%
Normal 30
LVP Forecast vs. Actual
US
EU
25
8%
20
6% 80%
15
China @' 25 | ||
China @'23 C-OEM @'25 | ||
C-OEM @'23 | ||
4%
10
2%
5
0%
Source: US (LSEG), EU (Eurostat)
Dilution from Inflation
Meaningful impact from no margins on compensations for cost inflation
This was partly offset by structural cost reduction initiatives and other cost reduction activities
60%
Source: Company estimates
0
2022 2023 2024
Sorcce: SGP Global, @ May 2023 and @ May 2025
Despite This We Have Made Substantial Progress since Last CMD
Adj. Operating Margin Development*
% of sales
9.1%
8.3%
6.8%
6.5%
8.8%
9.7%
~10.0 - 10.5%
Improved Productivity through headcount reduction E automation
Indirect workforce efficiency
Automation E Digitalization
Inflation compensation
2019 2020 2021 2022 2023 2024 2025
Guidance
* Non-US GAAP excluding effects from capacity alignment and antitrust related matters
Substantial Shareholder Returns
Repurchased 11 million shares corresponding to 13% of outstanding shares
219
225
352
552
Shareholder Returns
$ millions
115
108
89
54
164
224
Stock Repurcheses Dividends*
2020 2021 2022 2023 2024 YTD 2025
$1.9 billon
(*) Includes dividends paid including Q2´25 and stock repurchases up to May 30, 2025
Market Transformation K Light Vehicle Market OutlookAutomotive Market - LVP Volumes Growth back to Long-term Trend
Global Light Vehicle volumes historic K forecast*
(Units m)
20+ year history
10 year forecast
86
92
86
88 87 85
92
97
62
68
72
72
55
57
SEP
Linear (SEP)
2.4%
CAGR 2000-2019
-0.1%
CAGR 2019-2024
1.3%
CAGR 2024-2035
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
(*) Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ May 2025
Shifting Market Landscape
- LVP Growth Driven by China OEMs K South Asia
Global Light Vehicle Production - by Region
North America
Europe
China
South Asia
Japan/Korea
30M
30M
30M
30M
30M
25M
25M
25M
+3%
25M
25M
20M
15M
0.2%
20M
15M
0.4%
20M
15M
20M
15M
+5%
20M
15M
-1%
10M
10M
10M
10M
10M
5M 5M 5M 5M 5M
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0M 0M 0M 0M 0M
Total 1
COEMs2
2
Global OEMs
X% CAGR 2024 to 2030
Light Vehicle Production (LVP up to 3.5 tons) according to SGP Global @ May 2025
COEMs: Chinese OEMs excluding Volvo and Polestar ; GOEMs: other vehicle manufactures operating in China
Automotive Market Fueled by Economic Growth, Replacement Demand, and Electrification
Increased standard of living leads to more cars per capita1
Cars per 1k people
US
Japan
Germany
S. Korea
Brazil Thailand
China
Indonesia India
1000
900
800
700
600
500
400
300
200
100
0
0 20 000 40 000 60 000 80 000 100 000
GDP per capita (USD)
Average age of vehicles hits new record2
Example: U.S E Europe Vehicle Average Age in years
13
12
11
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
10
BEVs share of Global LVP3
35%
30%
25%
20%
15%
10%
5%
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0%
Source 1: IMF data for 2024
Source 2: US (SGP Global 2024), Europe (ACEA)
Source 3: SGP Global May 2025
Adapting to an Evolving Automotive IndustryOur Strategy for Change
Strategic Partnerships
Quality Leadership
A Very Diversified Customer Portfolio
Enables us to Adapt to a Continuously Evolving Automotive Industry
Leading Engineering K Manufacturing Footprint
THE AUTOLIV WAY
Market Leader in all Regions
Cost Leadership
Drivetrain Agnostic
Technology
Leadership
A Very Diversified Customer Portfolio
Customer mix - One of the Most Diversified in the Industry
Autoliv Sales by OEM K OEM Origin1
Market share development with our top-20 Customers2
Other
15%
9%
Other
4%
7%
9%
2%
2%
2%
4%
20%
31%
9%
4%
4%
EV Maker
9%
38%
5%
5%
8%
6% 7%
10
8
6
4
2
0
<30% 30%-40% 40-50% 50-60% >60%
COEMs: Chinese OEMs excluding Volvo and Polestar
Company market estimates include seatbelts, airbags and steering wheels, These 20 OEMs are estimated to account for more than 85% of the global safety market. Including 3 Chinese OEMs and 7 other Asian OEMs
Market Leader in all Regions
Leading global footprint with #1 position in all regions
Americas
47%Europe
52%China
33%Japan K Korea
42%Market Share1
India
59%Manufacturing Tech Centers
Company market estimates for 2024 include seatbelts, airbags and steering wheels
Leading Engineering E Manufacturing Footprint
Cost Leadership
Optimizing our Global Footprint K Capacity to a Changing Market
Americas
Reduced POH and SGEA headcount
Transferred functions from USA to Mexico
Increased level of automation in the U.S.
Europe
Consolidated our footprint
Reduced POH and SGEA headcount
Transferred functions from WEU to EEU
China
Reduced headcount
Adding capacity to support growth
Increased focus on C-OEMs
Asia
Reduced headcount
Adding inflator and textile
production capacity
Sweden Moving Inflator
production to EEU
UK
Moving textile production to EEU
France
Moving steering wheel production to Tunisia
Tunisia Consolidated production into one new facility
India
New Airbag E Textile plant New Inflator plant
Japan
Consolidated operations
Closed Inflator plant
Closed Steering Wheel plant
New plant close to OEM cluster
China
Adding capacity for growth
New plant in Hefei
New plant in Guangzhou
2nd Tech Center (Wuhan)
Vietnam
New Textile plant
Drivetrain Agnostic
A Very Diversified Customer Portfolio
Focus on C-OEMs and growing segments to ensure strong sales in a market transition
Market Share with C-OEMs1
%
35%
30%
Drivetrain Agnostic Example:
BMW 550 (ICE) BMW i5 (EV)
25%
20%
No Change to Safety Content
15%
10%
2023 2024 F2025 F2026
2023 2024 F2025 F2026
(1) Company estimates
Technology Leadership
Regulations are driving Real-Life Safety opportunities and the need for new safety innovations
Today
Simple approach with few evaluation points
Transition
NCAP Vision 2030 introduces more evaluation points
Real-World Adaptive System
Restraints systems optimized for the greater variability of scenarios in the real world
Quality
Cost
Leadership Leadership
Driving Profitability K Growth Through Quality and Productivity
Quality Focus
Autoliv has been involved in around 2% of passive safety recalls over the last ten years
Productivity Improvement1
8,1%
Autoliv; 2%
4,1%
Other; 98%
0,1%
1,4%
2,6%
2020 2021 2022 2023 2024
1) Company estimates
Shareholder Value CreationTowards our targeted Adj. Operating Margin* of ~12%
Journey to our adj. op margin target
~12%
0.1%
0.4% -0.1%
8.8% 0.5%
9.7%
2023 adj.
Indirect
Normalization Automation E
Growth, net 2024 Adj.
Indirect
Normalization Automation E
Growth, net Target adj.
Operating margin
headcount reduction
of call-offs
Digitalization
Operating margin
headcount reduction**
of call-offs
Digitalization
(*) Non-US GAAP measure. Excluding costs for capacity alignments. (**) Already announced in 2023
Reiterating our Financial Targets
Drivers
CPV
‐ Rating E Regulations
‐ Industry Trends
LVP
MSS contribution mainly beyond 2030
Average Annual Organic Growth
4-6%
Drivers
Operational leverage
Price
Structural Initiatives
Strategic Roadmap including automation E digitalization
Conditions
Stable global LVP of at least
85 million units
Successful compensation for inflation and tariffs
Adjusted Operating Margin1
~12%
Profit Growth
Capital Efficiency
Capex less than 5%
of sales
Cash Conversion over time2
≥80%
Continued Prudent leverage policy
Shareholder return strategy with increasing dividend
New Stock Repurchase Program
Leverage Ratio over time3
≤1.5x
Non-US GAAP measure. Excluding costs for capacity alignments G Antitrust.
Non-US GAAP measure. Defined as operating cash flow less capital expenditure, net in relation to net income
Non-US GAAP measure, Leverage Ratio and Net Debt includes Pension Liability
Sustainable High Level of Shareholder Returns
Shareholder Returns
$2.5 billion new stock repurchase program through the end of 2029
Stock Repurchases
Ambition
$300M to $500M per year
Increasing Dividend
($0.85 in Q3´25)
Creating Shareholder Value
Strong Balance Sheet
Despite debt from spin-off and five years of market turbulence
Progression
towards targets
Capital Efficiency Program
Improved Debt Leverage
Free Operating Cash Flow*
Operating cash flow
Lower Capex in relation to Sales
Expected payout
~40 to 50%
of Operating Cashflow **
(*) Non-US GAAP measure,. Operating cash flow less Capital expenditures, net. Non U.S. GAAP measure. (**) The payout ratio, which refers to shareholder payouts as a share of cash flow from operations* .
Autoliv Capital Markets Day 2025Driving K Creating Growth in a Dynamic Market
Megan Fisher, Senior Vice President Sales / Sng Yih, President Autoliv China
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Autoliv Inc. published this content on June 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 17, 2025 at 12:21 UTC.
