10-Q

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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-looking statements include those that address activities, events or developments that Autoliv, Inc. (“Autoliv,” the “Company” or “we”) or its management believes or anticipates may occur in the future. All forward-looking statements 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 believe 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 are 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 results, 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 “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “may,” “likely,” “might,” “would,” “should,” “could,” or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words.

Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those 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; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; disruptions and impacts relating to the ongoing war between Russia and Ukraine and hostilities 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, cost reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations or restructuring or divestiture of customer brands; 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 operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding 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 respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating 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 impacting or limiting our business; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified in Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q, Item 1A “Risk Factors” and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.

For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation 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.


INDEX

PART I - FINANCIAL INFORMATION		4

ITEM 1. FINANCIAL STATEMENTS		4

1.	Basis of Presentation	9
2.	New Accounting Standards	10
3.	Fair Value Measurements	11
4.	Income Taxes	14
5.	Inventories	14
6.	Restructuring	14
7.	Product-Related Liabilities	15
8.	Retirement Plans	15
9.	Contingent Liabilities	16
10.	Stock Incentive Plan	18
11.	Earnings Per Share	18
12.	Revenue Disaggregation	18
13.	Subsequent Events	18

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		19
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		30
ITEM 4. CONTROLS AND PROCEDURES		30
PART II - OTHER INFORMATION		31
ITEM 1. LEGAL PROCEEDINGS		31
ITEM 1A. RISK FACTORS		31
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		31
ITEM 3. DEFAULTS UPON SENIOR SECURITIES		31
ITEM 4. MINE SAFETY DISCLOSURES		31
ITEM 5. OTHER INFORMATION		31
ITEM 6. EXHIBITS		32

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in millions, except per share data)


	Three Months Ended March 31,
	2024			2023
Net sales	$	2,615		$	2,493
Cost of sales		(2,172	)		(2,113	)
Gross profit		443			379
Selling, general and administrative expenses		(132	)		(132	)
Research, development and engineering expenses, net		(113	)		(116	)
Other income (expense), net		(4	)		(4	)
Operating income		194			127
Income from equity method investment		2			2
Interest income		5			2
Interest expense		(26	)		(19	)
Other non-operating items, net		(1	)		(2	)
Income before income taxes		174			109
Income tax expense		(47	)		(34	)
Net income1)		127			74
Less: Net income attributable to non-controlling interest		0			0
Net income attributable to controlling interest	$	126		$	74

Net earnings per share – basic	$	1.53		$	0.86
Net earnings per share – diluted	$	1.52		$	0.86

Weighted average number of shares outstanding, net of treasury shares (in millions)		82.3			86.1
Weighted average number of shares outstanding, assuming dilution and net of treasury shares (in millions)		83.0			86.3

Cash dividend per share – declared	$	0.68		$	0.66
Cash dividend per share – paid	$	0.68		$	0.66

1) For the three months periods ended March 31, 2024 and 2023, the aggregate transaction gain (loss) included in net income for the period were $(6) million and $(5) million, respectively.

See Notes to the unaudited Condensed Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in millions)


	Three Months Ended March 31,
	2024			2023
Net income	$	127		$	74
Other comprehensive income (loss) before tax:
Change in cumulative translation adjustments		(47	)		36
Net change in unrealized components of defined benefit plans		6			(0	)
Other comprehensive (loss), before tax		(40	)		35
Tax effect allocated to other comprehensive income (loss)		(1	)		0
Other comprehensive (loss), net of tax		(42	)		35
Comprehensive income		85			110
Less: Comprehensive income (loss) attributable to non-controlling interest		0			0
Comprehensive income attributable to controlling interest	$	85		$	110

See Notes to the unaudited Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in millions)


	As of
	March 31, 2024			December 31, 2023
Assets
Cash and cash equivalents	$	569		$	498
Receivables, net		2,194			2,198
Inventories, net		997			1,012
Prepaid expenses and accrued income		180			173
Other current assets		71			93
Total current assets		4,011			3,974
Property, plant and equipment, net		2,192			2,192
Operating lease right-of-use assets		177			176
Goodwill and intangible assets, net		1,381			1,385
Other non-current assets		564			606
Total assets		8,324			8,332

Liabilities and equity
Short-term debt		310			538
Accounts payable1)		1,855			1,978
Accrued expenses		1,129			1,135
Operating lease liabilities - current		41			39
Other current liabilities		323			345
Total current liabilities		3,658			4,035
Long-term debt		1,830			1,324
Pension liability		149			159
Operating lease liabilities - non-current		134			135
Other non-current liabilities		111			109
Total non-current liabilities		2,224			1,728
Common stock		86			88
Additional paid-in capital		1,018			1,044
Retained earnings		2,226			2,289
Accumulated other comprehensive loss		(537	)		(496	)
Treasury stock		(364	)		(368	)
Total controlling interest's equity		2,428			2,557
Non-controlling interest		13			13
Total equity		2,442			2,570
Total liabilities and equity	$	8,324		$	8,332

1) Amount of obligations confirmed under the Company's Supplier Finance Program that remains unpaid is reported as Accounts Payable in the Condensed Consolidated Balance Sheets. Amount of obligations outstanding as of March 31, 2024 and December 31, 2023 are $324 million and $333 million, respectively.

See Notes to the unaudited Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in millions)


	Three Months Ended March 31,
	2024			2023
Operating activities
Net income	$	127		$	74
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		96			92
Other, net		14			(10	)
Net change in operating assets and liabilities		(114	)		(202	)
Net cash provided by (used in) operating activities		122			(46	)

Investing activities
Expenditures for property, plant and equipment		(140	)		(144	)
Proceeds from sale of property, plant and equipment		0			0
Net cash used in investing activities		(140	)		(143	)

Financing activities
Net decrease in short-term debt		(227	)		(135	)
Proceeds from long-term debt		534			533
Dividends paid		(56	)		(57	)
Stock repurchased		(160	)		(42	)
Common stock options exercised		0			0
Net cash provided by financing activities		92			300
Effect of exchange rate changes on cash and cash equivalents		(3	)		7
Net increase in cash and cash equivalents		71			119
Cash and cash equivalents at beginning of period		498			594
Cash and cash equivalents at end of period	$	569		$	713

See Notes to unaudited Condensed Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (UNAUDITED) (Dollars in millions)


	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest			Total equity
Balances at December 31, 2023	$	88		$	1,044		$	2,289		$	(496	)	$	(368	)	$	2,557		$	13		$	2,570
Comprehensive Loss:
Net income								126									126			0			127
Foreign currency translation adjustment											(46	)					(46	)		(0	)		(47	)
Pension liability											5						5						5
Total Comprehensive Income		—			—			126			(41	)		—			85			0			85
Retired and repurchased shared		(1	)		(26	)		(134	)								(161	)					(161	)
Stock-based compensation														4			4						4
Cash dividends declared								(56	)								(56	)					(56	)
Balances at March 31, 2024	$	86		$	1,018		$	2,226		$	(537	)	$	(364	)	$	2,429		$	13		$	2,442


	Common stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Total controlling interest's equity			Non- controlling interest		Total equity
Balances at December 31, 2022	$	91		$	1,113		$	2,310		$	(522	)	$	(379	)	$	2,613		$	13	$	2,626
Comprehensive Income:
Net income								74									74			0		74
Foreign currency translation adjustment											36						36			0		36
Pension liability											(0	)					(0	)				(0	)
Total Comprehensive Income		—			—			74			35			—			110			0		110
Stock repurchased and retired		(0	)		(9	)		(33	)								(42	)				(42	)
Stock-based compensation														3			3					3
Cash dividends declared								(57	)								(57	)				(57	)
Balances at March 31, 2023	$	91		$	1,105		$	2,295		$	(487	)	$	(376	)	$	2,627		$	14	$	2,641

See Notes to the unaudited Condensed Consolidated Financial Statements.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unless otherwise noted, all amounts are presented in millions of dollars, except for per share amounts)

March 31, 2024

1. BASIS OF PRESENTATION

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the prior year audited consolidated financial statements and all adjustments considered necessary for a fair presentation have been included in the consolidated financial statements. All such adjustments are of a normal recurring nature. The results for the interim period are not necessarily indicative of the results to be expected for any future period or for the fiscal year ending December 31, 2024.

The Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements.

The Company has one reportable segment, which includes Autoliv’s airbag and seatbelt products and components.

Certain amounts in the condensed consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have been calculated using unrounded amounts. Certain amounts in prior periods have been reclassified to conform to current year presentation.

Statements in this report that are not of historical fact are forward-looking statements that involve risks and uncertainties that could affect the actual results of the Company. A description of the important factors that could cause Autoliv’s actual results to differ materially from the forward-looking statements contained in this report may be found in this report and Autoliv’s other reports filed with the Securities and Exchange Commission (the “SEC”). For further information, refer to the consolidated financial statements, footnotes and definitions thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.

2. NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification (“ASC”).

Adoption of new accounting standards

None.

Accounting standards issued but not yet adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update require that a public entity make additional disclosures related to segments if it has them. A public entity that has a single reportable segment would be required to provide all the disclosures required by the amendments in this update and all existing segment disclosures in Topic 280. The amendments in this update are affective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact that ASU 2023-07 will have on its financial statements and will adopt the amendments in this update upon the effective date.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures as well as improve the effectiveness of income tax disclosures. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require that all entities disclose on an annual basis certain detailed information about income taxes paid. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s worldwide operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. The amendments in this update are affective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company is currently assessing the impact that ASU 2023-09 will have on its financial statements and will adopt the amendments in this update prospectively upon the effective date.

In March 2024, the SEC adopted final rules requiring registrants to disclose climate-related information in their annual reports. The final rules require information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in a registrant’s audited financial statements. The new requirements are required on a prospective basis and a phased-in compliance period becomes effective for the Company beginning with its Annual Report on Form 10-K for the year ending December 31, 2025. However, pending the resolution of legal challenges that were subsequently filed against these rules, in April 2024, the SEC stayed the effectiveness of the rules. Therefore, the disclosure requirements of these rules and the timing of their effectiveness is uncertain. The Company is currently assessing the anticipated impact that the rules will have on its financial statements if and when effective and will implement disclosures upon any such effective dates.

3. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and other current financial assets and liabilities approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments (“derivatives”) as part of its debt management to mitigate the market risk that occurs from its exposure to changes in interest rates and foreign exchange rates. The Company does not enter into derivatives for trading or other speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial policy. All derivatives are recognized in the consolidated financial statements at fair value. For certain derivatives, hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet the hedge accounting requirements, although each hedge is entered into applying the same rationale concerning mitigating market risk that occurs from changes in interest rates and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability. Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment utilized in measuring fair value.

All the Company’s derivatives are classified as Level 2 financial instruments in the fair value hierarchy. Level 2 pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

The carrying value is the same as the fair value as these instruments are recognized in the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (“ISDA agreements”) with its derivative counterparties, the fair values in the tables below and in the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 have been presented on a gross basis. According to the ISDA agreements, transaction amounts payable to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company chose not to offset are presented below.

Derivatives designated as hedging instruments

There were no derivatives designated as hedging instruments as of March 31, 2024 or December 31, 2023 related to the Company's operations.

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments relate to economic hedges and are marked to market with all amounts recognized in the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding as of March 31, 2024 and December 31, 2023 were foreign exchange swaps.

For the three months periods ended March 31, 2024 and 2023, the gains (losses) recognized in other non-operating items, net were $10 million and $(5) million, respectively, for derivative instruments not designated as hedging instruments. The realized part of the gains (losses) referred to above is reported under financing activities in the statement of cash flows.

For the three months periods ended March 31, 2024 and 2023, the gains (losses) recognized as interest expense were immaterial.

The tables below present information about the Company’s derivative financial assets and liabilities measured at fair value on a recurring basis (dollars in millions).


	As of
	March 31, 2024									December 31, 2023
				Fair Value Measurements									Fair Value Measurements
Description	Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)			Nominal volume			Derivative asset (Other current assets)			Derivative liability (Other current liabilities)
Derivatives not designated as hedging instruments
Foreign exchange swaps, less than 6 months	$	2,043	1)	$	8	2)	$	14	3)	$	1,895	4)	$	22	5)	$	12	6)
Total derivatives not designated as hedging instruments	$	2,043		$	8		$	14		$	1,895		$	22		$	12

1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,043 million.

2) Net amount after deducting for offsetting swaps under ISDA agreements is $8 million.

3) Net amount after deducting for offsetting swaps under ISDA agreements is $14 million.

4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,895 million.

5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.

6) Net amount after deducting for offsetting swaps under ISDA agreements is $12 million.

Fair Value of Debt

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market, or for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside within Level 2 of the fair value hierarchy.

In February 2024, the Company issued 5.5-year notes for a total of €500 million in the Eurobond market. The notes carry a coupon of 3.625% and mature in August 2029.

The fair value and carrying value of debt is summarized in the table below (dollars in millions).


	As of
	March 31, 2024				December 31, 2023
	Carrying value1)		Fair value		Carrying value1)		Fair value
Long-term debt
Bonds	$	1,549	$	1,555	$	1,023	$	1,022
Loans		281		285		301		306
Total long-term debt		1,830		1,840		1,324		1,328

Short-term debt
Short-term portion of long-term debt		297		302		297		297
Overdrafts and other short-term debt		13		13		241		241
Total short-term debt	$	310	$	315	$	538	$	538

1) Debt as reported in balance sheet.

Assets and liabilities measured at fair value on a nonrecurring basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its balance sheet that are measured at fair value on a nonrecurring basis, including certain long-lived assets, including equity method investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-specific inputs, and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To determine the fair value of long-lived assets, the Company utilizes the projected cash flows expected to be generated by the long-lived assets and then discounts the future cash flows over the expected life of the long-lived assets.

For the three months period ended March 31, 2024, the Company did not record any material impairment charges on its long-lived assets for its operations.

4. INCOME TAXES

The effective tax rate for the three months period ended March 31, 2024 was 27.0% compared to 31.6% for the three months period ended March 31, 2023. Discrete tax items, net for the three months period ended March 31, 2024 had a favorable impact of 2.5%. Discrete tax items, net for the three months period ended March 31, 2023 had an unfavorable impact of 0.8%.

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states and non-U.S. jurisdictions. At any given time, the Company is undergoing tax audits in several tax jurisdictions covering multiple years. The Company is no longer subject to income tax examination by the U.S. federal income tax authorities for years prior to 2015. With few exceptions, the Company is no longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2012.

As of March 31, 2024, the Company is not aware of any proposed income tax adjustments resulting from tax examinations that would have a material impact on the Company’s condensed consolidated financial statements. The conclusion of such audits could result in additional increases or decreases to unrecognized tax benefits in some future period or periods.

During the three months period ended March 31, 2024, the Company recorded a net increase of $2 million to income tax reserves for unrecognized tax benefits based on tax positions related to the current year, including accruing additional interest related to unrecognized tax benefits from prior years. Also, during the first quarter of 2024, the Company recorded a net decrease of $13 million to income tax reserves for unrecognized tax benefits based on tax positions taken in prior years, mainly due to the conclusion of tax audits and the expiration of statute of limitations in various jurisdictions. Of the total unrecognized tax benefits of $53 million recorded as of March 31, 2024, $14 million is classified as current tax payable within Other current liabilities and $39 million is classified as non-current tax payable within Other non-current liabilities in the Condensed Consolidated Balance Sheet.

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):


	As of
	March 31, 2024			December 31, 2023
Raw materials	$	453		$	457
Work in progress		328			347
Finished products		304			296
Inventories		1,085			1,100
Inventory valuation reserve		(87	)		(89	)
Total inventories, net of reserve	$	997		$	1,012

6. RESTRUCTURING

As of March 31, 2024, the majority of the restructuring reserve balance is attributed to global structural cost reduction program activities initiated in Europe in 2023. These activities are expected to be concluded during 2024 and 2025.

The cash payments for the three months periods ended March 31, 2024 and 2023 relate to restructuring activities in Europe.

The table below summarizes the change in the balance sheet position of the employee-related restructuring reserves (dollars in millions). The restructuring reserve balances are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The changes in the employee-related reserves have been charged against Other income (expense), net in the Consolidated Statements of Income. Restructuring costs other than employee related costs are immaterial for all periods presented.


	Three Months Ended March 31,
	2024			2023
Reserve at beginning of the period	$	213		$	32
Provision - charge		1			2
Provision - reversal		0			(0	)
Cash payments		(16	)		(5	)
Translation difference		(6	)		1
Reserve at end of the period	$	193		$	29

7. PRODUCT-RELATED LIABILITIES

The Company is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues, including recalls, product liability and warranty issues. For further explanation, see Note 9. Contingent Liabilities below.

For the three months ended March 31, 2024, provisions mainly relate to warranty related issues and cash payments mainly relate to recall related issues. For the three months ended March 31, 2023, provisions and cash payments primarily related to warranty related issues. As of March 31, 2024, the reserve for product related liabilities mainly relates to recall related issues.

The table below summarizes the change in the balance sheet position of the product-related liabilities (dollars in millions). The reserve for product related liabilities is included in Accrued expenses and Other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company’s product-related liabilities as of March 31, 2024 are partly covered by insurance. Insurance receivables are included within Other current assets and Other non-current assets in the Condensed Consolidated Balance Sheets. As of March 31, 2024, the Company had total insurance receivables of $58 million.


	Three Months Ended March 31,
	2024			2023
Reserve at beginning of the period	$	96		$	145
Change in reserve		(8	)		1
Cash payments		(10	)		(5	)
Translation difference		(1	)		0
Reserve at end of the period	$	78		$	141

8. RETIREMENT PLANS

The components of total Net Periodic Benefit Cost associated with the Company’s defined benefit retirement plans are as follows (dollars in millions):


U.S. Plans	Three Months Ended March 31,
	2024			2023
Interest cost	$	3		$	3
Expected return on plan assets		(3	)		(2	)
Amortization of actuarial (gain) loss		0			0
Settlement loss		0			0
Net periodic benefit cost	$	(0	)	$	1

Non-U.S. Plans	Three Months Ended March 31,
	2024			2023
Service cost	$	2		$	2
Interest cost		3			2
Expected return on plan assets		(1	)		(1	)
Amortization of actuarial loss		0			0
Settlement/curtailment gain		—			—
Net periodic benefit cost (gain)	$	5		$	3

The Service cost component in the table above is reported among other employee compensation costs in the Consolidated Statements of Income. The remaining components - Interest cost, Expected return on plan assets, Amortization of actuarial loss, Settlement loss (gain) and Curtailment gain - are reported as Other non-operating items, net in the Consolidated Statements of Income.

The Company triggered settlement accounting for the closed U.S. pension plans in the first quarter of 2024 because the lump-sum payments made during the quarter exceeded the sum of Service cost and Interest cost. Due to the settlement accounting, the obligation and plan assets for the U.S. plans have been re-measured as of March 31, 2024, which resulted in an immaterial change in the net pension liability compared to December 31, 2023. The discount rate used to determine the U.S. net periodic benefit cost because of the re-measurement was changed from 5.13% to 5.35% in the first quarter of 2024. The expected long-term rate of return on plan assets remained unchanged at 6.21%.

9. CONTINGENT LIABILITIES

Legal Proceedings

Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of potential future losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability, or other losses in the future.

ANTITRUST MATTERS

Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells. In addition to concluded matters, authorities of other countries with significant light vehicle manufacturing or sales may initiate similar investigations. As a result of the outcome of the EC investigation that the Company resolved in 2019, the Company is subject to subsequent civil disputes with non-governmental third parties stemming from the same facts and circumstances underlying the EC investigation.

PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY

Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such (actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product (or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However, the Company believes its established reserves are adequate. Autoliv’s warranty reserves are based upon the Company’s best estimates of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves and adjusts them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s recorded estimates.

In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.

The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including the Spin-off Agreements, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future, or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.

As noted in Note 7 above, as of March 31, 2024, the Company has accrued $78 million for total product related liabilities. The majority of the total product liability accrual as of March 31, 2024, relates to recalls, which are generally covered by insurance. Insurance receivables for such recall related liabilities total $58 million as of March 31, 2024.

Product Liability:

Autoliv and some of its subsidiaries have been named as one of several defendants in a consolidated class action lawsuit in a multi-district litigation (In Re: ARC Airbag Inflators Products Liability Litigation MDL, No. 3051) in the Northern District of Georgia. The plaintiffs in the MDL (the "ARC Inflator Class Action") bring claims for fraud, breach of warranty, and violation of consumer protection and trade practices stemming from ARC inflators included in airbag modules that Autoliv or its subsidiaries allegedly supplied after Autoliv acquired certain Delphi assets (the “Delphi Acquisition”) in December 2009. The Company denies these allegations. Autoliv is not aware of any performance issues regarding ARC inflators included with its airbags at the directions of its customers that it shipped following the Delphi Acquisition. The proceedings remain ongoing. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ARC Inflator Class Action. However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot predict the ultimate outcome of the ARC Inflator Class Action.

On September 5, 2023, the National Highway Traffic Safety Administration (the “NHTSA”) issued an initial decision to recall approximately 52 million frontal driver and passenger airbag inflators manufactured by ARC and Delphi Automotive Systems because the NHTSA determined that the airbag inflators contain a safety defect resulting in field ruptures. Some of the ARC inflators included in the airbag modules that Autoliv or its subsidiaries supplied after the Delphi Acquisition were included in such initial decision. The NHTSA has yet to release its final decision. If NHTSA final decision results in a recall, it is anticipated that such decision will be challenged in US federal court. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the NHTSA ARC recall. However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot predict the ultimate outcome of the NHTSA ARC recall.

Specific Recalls:

In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of approximately 449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle Recall”). The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an amount that is reflected in the total product liability accrual in the fourth quarter of 2020, increased the accrual in the fourth quarter of 2021 and reduced the accrual in the fourth quarter of 2023 based on vehicle repair cost data. Following the accrual reduction in the fourth quarter of 2023, the amount by which the product liability accrual exceeds the product liability insurance receivable with respect to the Honda Buckle Recall is $10 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of the Honda Buckle Recall could be materially different from the amount the Company has accrued.

Volvo Car USA, LLC (together with its affiliates, “Volvo”) has recalled approximately 762,000 vehicles relating to the malfunction of inflators produced by ZF (the “ZF Inflator Recall”). The recalled ZF inflators were included in airbag modules supplied by the Company only to Volvo. The recall commenced in November 2020 and later expanded in September 2021. Because the Company’s airbags were involved with the ZF Inflator Recall, the Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the ZF Inflator Recall. The Company continues to evaluate this matter with Volvo and ZF and no accrual has been made. Although the Company currently estimates a range of $0 to $43 million with respect to this potential loss, the Company anticipates that any losses net of insurance claims and claims against ZF will be immaterial.

Intellectual Property:

In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result thereof. Such claims could be material.

The table in Note 7 above summarizes the change in the balance sheet position of the product-related liabilities.

10. STOCK INCENTIVE PLAN

Eligible employees and non-employee directors of the Company participate in the Autoliv, Inc.1997 Stock Incentive Plan, as amended, (“the Plan”) and receive Autoliv stock-based awards which include restricted stock units (“RSUs”) and performance stock units (“PSUs”) and in the past included stock options.

For the three months ended March 31, 2024, the Company recorded approximately $3 million in stock-based compensation expense related to RSUs and PSUs. For the three months ended March 31, 2023, the Company recorded approximately $3 million in stock-based compensation expense related to RSUs and PSUs.

During the three months ended March 31, 2024, approximately 102 thousand shares of common stock from the treasury stock were utilized by the Plan. During the three months ended March 31, 2023, approximately 92 thousand shares of common stock from the treasury stock were utilized by the Plan.

11. EARNINGS PER SHARE

The computation of basic and diluted earnings per share is set forth in the table below.


	Three Months Ended March 31,
(In millions, except per share amounts)	2024		2023
Numerator:
Basic and diluted:
Net income attributable to controlling interest	$	126	$	74
Denominator:
Basic: Weighted average common stock		82.3		86.1
Add: Weighted average stock options/share awards		0.7		0.2
Diluted weighted average common stock:		83.0		86.3

Net earnings per share - basic	$	1.53	$	0.86

Net earnings per share - diluted	$	1.52	$	0.86

12. REVENUE DISAGGREGATION

The Company’s disaggregated revenue for the three months periods ended March 31, 2024 and 2023 were as follows (dollars in millions).


Net Sales by Products	Three Months Ended March 31,
	2024		2023
Airbags, Steering Wheels and Other1)	$	1,781	$	1,673
Seatbelt Products and Other1)		834		820
Total net sales	$	2,615	$	2,493

Net Sales by Region	Three Months Ended March 31,
	2024		2023
Americas	$	893	$	831
Europe		770		725
China		460		453
Asia excl. China		491		483
Total net sales	$	2,615	$	2,493

1) Including Corporate sales.

Contract Balances

Contract assets relate to the Company's rights to consideration for work completed but not billed (generally in conjunction with contracts for which revenue is recognized over time) at the reporting date on production parts and is included in Other current assets in the Condensed Consolidated Balance Sheet. The contract assets are reclassified into the receivables balance when the rights to receive payments become unconditional. The net change in the contract assets balance, reflecting the adjustments needed to align revenue recognition for work completed but not billed, for the three months period ended March 31, 2024 were not material in any period.

13. SUBSEQUENT EVENTS

There were no reportable events subsequent to March 31, 2024.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and accompanying Notes thereto included elsewhere herein and with our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (the “SEC”) on February 20, 2024. Unless otherwise noted, all dollar amounts are in millions.

Autoliv, Inc. (“Autoliv” or the “Company”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden. The Company functions as a holding corporation and owns two principal operating subsidiaries, Autoliv AB and Autoliv ASP, Inc.

Through its operating subsidiaries, Autoliv is a supplier of automotive safety systems with a broad range of product offerings, including modules and components for passenger and driver airbags, side airbags, curtain airbags, seatbelts, steering wheels and pedestrian protection systems.

Autoliv’s filings with the SEC, including this Quarterly Report on Form 10-Q, annual reports on Form 10-K, current reports on Form 8-K, proxy statements and all of our other reports and statements, and amendments thereto, are available free of charge on our corporate website at www.autoliv.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC (generally the same day as the filing).

The primary exchange market for Autoliv’s securities is the New York Stock Exchange ("NYSE") where Autoliv’s common stock trades under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts ("SDRs") are traded on Nasdaq Stockholm’s list for large market cap companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv shares are traded on Nasdaq OMX PHLX and on NYSE Amex Options under the symbol “ALV”.

Autoliv’s fiscal year ends on December 31.

Non-U.S. GAAP financial measures

Some of the following discussions refer to non-U.S. GAAP financial measures: see reconciliations for “Organic sales”, “Trade working capital”, “Free cash flow”, “Net debt”, “Leverage ratio”, “Adjusted operating income”, “Adjusted operating margin” and “Adjusted earnings per share, diluted” provided below. Management believes that these non-U.S. GAAP financial measures provide supplemental information to investors regarding the performance of the Company’s business and assist investors in analyzing trends in the Company's business. Additional descriptions regarding management’s use of these financial measures are included below. Investors should consider these non-U.S. GAAP financial measures in addition to, rather than as substitutes for, financial reporting measures prepared in accordance with U.S. GAAP. These historical non-U.S. GAAP financial measures have been identified as applicable in each section of this report with a tabular presentation reconciling them to the most directly comparable U.S. GAAP financial measures. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.

EXECUTIVE OVERVIEW

We delivered record first quarter sales, outperforming global light vehicle production (LVP) growth by 6pp. We outperformed in all regions, including China despite a negative LVP mix development with domestic Chinese OEMs growing by 17% and global OEMs declining by 5%. It is encouraging that our sales in India grew organically by 27%. Sales in India are now larger than in South Korea, accounting for more than 4% of our global sales.

We delivered results in line with what we previously communicated, despite LVP being 1pp below what was expected three months ago, and we are on track to deliver on our full year outlook. We expect a record number of product launches in 2024, despite some OEMs changing certain vehicle model launch plans, mainly for EV platforms.

Profitability continued to improve significantly, driven mainly by volume growth and cost reductions. Restructuring activities are yielding results with indirect headcount declining by around 1,000, or by more than 5%, in the past 12 months.

Our continued focus on balance sheet efficiency is supporting our strong performance for cash flow, cash conversion, and return on capital employed.

We are particularly pleased with our leverage ratio of 1.3x, which declined significantly compared to a year ago, despite returning $0.7 billion to shareholders and investing in footprint optimization and growth.

To support future growth, we are currently investing in increased capacity in Vietnam, China and India.

We are facing inflationary pressure again this year and we continue to expect compensation for what is in excess of what we can offset through normal productivity measures. The discussions with our customers are progressing according to plan.

As we have previously communicated, we expect the seasonality of past years to likely continue in 2024, with a gradual improvement throughout the year, leading to a full year adjusted operating margin (Non-U.S. GAAP measure) of around 10.5%. Key drivers for the full year margin progression are organic growth, our structural and strategic cost reduction initiatives, and a lower call-off volatility.

The 2024 development we expect should set up a solid base towards a continued high level of shareholder returns and our target of around 12% adjusted operating margin (Non-U.S. GAAP measure).

Financial highlights in the three months period ended March 31, 2024

Change figures below compare to the same period of the previous year, except when stated otherwise.

$2,615 million net sales

5% net sales increase

5% organic sales growth (Non-U.S. GAAP measure, see reconciliation table below)

7.4% operating margin

7.6% adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below)

$1.52 earnings per share, 77% increase

$1.58 adjusted earnings per share (Non-U.S. GAAP measure, see reconciliation table below), 76% increase

Key business developments in the three months period ended March 31, 2024

Change figures below compare to the same period of the previous year, except when stated otherwise.

•

Record first quarter sales, increased organically by 5% (Non-U.S. GAAP measure, see reconciliation table below), which was 6pp better than global LVP decline of 1% (S&P Global April 2024). We outperformed in all regions, mainly due to new product launches and higher prices carried over from last year.

•

Profitability improved substantially, driven mainly by organic growth and cost reduction activities. Operating income was $194 million and operating margin was 7.4%. Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) improved from $131 million to $199 million and adjusted operating margin (Non-U.S. GAAP measure, see reconciliation table below) increased from 5.3% to 7.6%. Return on capital employed was 19.7%.

•

Strong cash flow improvement. Operating cash flow improved by $168 million and free cash flow (Non-U.S. GAAP measure, see reconciliation table below) improved by $171 million. The leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) of 1.3x was close to unchanged compared to three months earlier and 0.3x lower than a year earlier despite returning $0.7 billion to shareholders as dividends and share repurchases in the last 12 months. In the quarter, a dividend of $0.68 per share was paid, and 1.37 million shares were repurchased and retired.

Business and market condition update for the first quarter 2024

Supply Chain

In the first quarter, global light vehicle production declined year-over-year by around 1% (according to S&P Global April 2024). Call-off volatility was lower compared to a year earlier, as supply chains are less strained compared to a year ago. However, volatility did not improve compared to the fourth quarter 2023, and is still higher than pre-pandemic levels, and low customer demand visibility and changes to customer call-offs with short notice still had a negative impact on our production efficiency and profitability in the quarter. We expect call-off volatility in 2024 on average to be lower than it was in 2023 but remain higher than the pre-pandemic level.

Inflation

In the first quarter 2024, cost pressure from labor and other items had a negative impact on our profitability. Most of the inflationary cost pressure was offset by price increases and other customer compensations in the quarter. Raw material price changes had a negligible impact on our profitability in the first quarter 2024. We expect the effects of raw material price changes in 2024 to be negligible for the full year. We expect continued cost pressure from inflation relating mainly to labor, especially in Europe and the Americas. We continue to execute on productivity and cost reduction activities to offset these cost pressures and will continue to seek inflation compensation from our customers.

RESULTS OF OPERATIONS

Overview

The following table shows some of the key ratios management uses internally to analyze the Company's current and future financial performance and core operations as well as to identify trends in the Company’s financial conditions and results of operations. The Company has provided this information to investors to assist in meaningful comparisons of past and present operating results and to assist in highlighting the results of ongoing core operations. These ratios are more fully explained below and should be read in conjunction with the consolidated financial statements in the Company's Annual Report on Form 10-K and the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

The Company's management uses the Return on capital employed (ROCE) and Return on total equity (ROE) measures for purposes of comparing its financial performance with the financial performance of other companies in the industry and providing useful information regarding the factors and trends affecting the Company’s business. As used by the Company, ROCE is annualized operating income and income from equity method investments relative to average capital employed. The Company believes ROCE is a useful indicator of long-term performance both absolute and relative to the Company's peers as it allows for a comparison of the profitability of the Company’s capital employed in its business relative to that of its peers.

ROE is the ratio of annualized income (loss) relative to average total equity for the periods presented. The Company’s management believes that ROE is a useful indicator of how well management creates value for its shareholders through its operating activities and its capital management.

KEY RATIOS

(Dollars in millions, except per share data)


	Three Months Ended
	or As of March 31,
	2024			2023
Trade working capital1)		1,336			1,409
Trade working capital relative to sales, %2)		12.8	%		14.1	%
Receivables outstanding relative to sales, %3)		21.0	%		21.1	%
Inventory outstanding relative to sales, %4)		9.5	%		9.9	%
Payables outstanding relative to sales, %5)		17.7	%		16.9	%

Gross margin, %6)		16.9	%		15.2	%
Operating margin, %7)		7.4	%		5.1	%

Capital employed8)		4,003			4,118
Net debt9)		1,562			1,477
Return on total equity, %10)		20.2	%		11.3	%
Return on capital employed, %11)		19.7	%		13.0	%

Headcount at period-end12)		70,100			71,300

1) Outstanding receivables and outstanding inventory less outstanding payables. See calculation of this non-U.S. GAAP measure in the table below.

2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales.

3) Outstanding receivables relative to annualized quarterly sales.

4) Outstanding inventory relative to annualized quarterly sales.

5) Outstanding payables relative to annualized quarterly sales.

6) Gross profit relative to sales.

7) Operating income relative to sales.

8) Total equity and net debt.

9) Net debt adjusted for pension liabilities in relation to EBITDA. See tabular presentation reconciling this non-U.S. GAAP measure to U.S. GAAP below.

10) Net income relative to average total equity.

11) Operating income and income from equity method investments, relative to average capital employed.

12) Employees plus temporary, hourly personnel.

three months period ended March 31, 2024 COMPARED WITH three months period ended March 31, 2023

Consolidated Sales Development

(dollars in millions)


	Three Months Ended March 31,							Components of change in net sales
	2024		2023		Reported change			Currency effects 1)			Organic 3)
Airbags, Steering Wheels and Other2)	$	1,781	$	1,673		6.5	%		(0.5	)%		7.0	%
Seatbelt products and Other2)		834		820		1.7	%		(0.5	)%		2.2	%
Total	$	2,615	$	2,493		4.9	%		(0.5	)%		5.4	%

Americas	$	893	$	831		7.5	%		2.9	%		4.6	%
Europe		770		725		6.1	%		2.4	%		3.7	%
China		460		453		1.7	%		(4.8	)%		6.5	%
Asia excl. China		491		483		1.7	%		(6.6	)%		8.2	%
Total	$	2,615	$	2,493		4.9	%		(0.5	)%		5.4	%

1) Effects from currency translations.

2) Including Corporate sales.

3) Non-U.S. GAAP measure.

Sales by product - Airbags, Steering Wheels and Other

Sales for all major product categories increased organically (Non-U.S. GAAP measure, see reconciliation table above) in the quarter. The largest contributor to the increase was steering wheels, followed by inflatable curtains, side airbags, and driver airbags.

Sales by product - Seatbelts and Other

Sales for Seatbelt Products and Other increased organically (Non-U.S. GAAP measure, see reconciliation table above) in the Americas, Asia excluding China and Europe, while it declined in China.

Sales by region

Our global organic sales (Non-U.S. GAAP measure, see reconciliation table above) increased by 5.4% compared to the global LVP decrease of 0.9% (according to S&P Global, April 2024). The 6.3pp outperformance was mainly driven by new product launches and higher prices carried over from last year.

Our organic sales growth outperformed LVP growth by 15pp in Asia excluding China, by 6.1pp in Europe, by 4.9pp in the Americas, and by 1.4pp in China. LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. Domestic OEM LVP in China grew by 17% while LVP declined by 5% for global OEMs.

First quarter of 2024 organic growth1)


	Americas	Europe	China	Asia excl. China	Global
Autoliv	4.6%	3.7%	6.5%	8.2%	5.4%
Main growth drivers	Toyota, Mercedes, Ford	Mercedes, BMW, Toyota	Volvo, Chery, BMW	Hyundai, Tata, Honda	Mercedes, Toyota, Hyundai
Main decline drivers	Stellantis, GM	Ford, Renault, Volvo	Honda	Nissan, Renault, Mazda	Stellantis, Nissan

1) Non-U.S. GAAP measure.

Light Vehicle Production Development

Change first quarter of 2024 versus first quarter of 2023


	Americas	Europe	China	Asia excl. China	Global
LVP1)	(0.3)%	(2.4)%	5.1 %	(6.9)%	(0.9)%

1) Source: S&P Global, April 2024.

Earnings


	Three Months Ended March 31,
(Dollars in millions, except per share data)	2024			2023			Change
Net Sales	$	2,615		$	2,493			4.9	%
Gross profit		443			379			17	%
% of sales		16.9	%		15.2	%		1.7	pp
S, G&A		(132	)		(132	)		(0.0	)%
% of sales		(5.0	)%		(5.3	)%		0.2	pp
R, D&E, net		(113	)		(116	)		(3.1	)%
% of sales		(4.3	)%		(4.7	)%		0.4	pp
Other income (expense), net		(4	)		(4	)		11	%
Operating income		194			127			52	%
% of sales		7.4	%		5.1	%		2.3	pp
Adjusted operating income1)		199			131			51	%
% of sales		7.6	%		5.3	%		2.3	pp
Financial and non-operating items, net		(20	)		(18	)		10	%
Income before taxes		174			109			60	%
Income taxes		(47	)		(34	)		36	%
Tax rate		27.0	%		31.6	%		(4.6	)pp
Net income		127			74			70	%
Earnings per share, diluted2)		1.52			0.86			77	%
Adjusted earnings per share, diluted1,2)		1.58			0.90			76	%

1) Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters.

2) Assuming dilution, when applicable, and net of treasury shares.

First quarter of 2024 financial development

Gross profit increased by $63 million, and the gross margin increased by 1.7pp compared to the same quarter 2023. The gross profit increase was primarily driven by volume growth, price increases and lower costs for production overhead and premium freight. This was partly offset by wage inflation and adverse foreign currency exchange effects.

S,G&A costs were unchanged compared to the prior year, positively impacted by lower costs for professional service which was offset by higher costs for personnel, as wage inflation outpaced the headcount reductions. S,G&A costs in relation to sales decreased from 5.3% to 5.0%.

R,D&E, net costs decreased by $4 million compared to the prior year, mainly due to higher engineering income. R,D&E, net in relation to sales decreased from 4.7% to 4.3%.

Other income (expense), net was unchanged at $4 million compared to the same period last year.

Operating income increased by $67 million compared to the same period in 2023, mainly due to the increase in gross profit.

Adjusted operating income (Non-U.S. GAAP measure, see reconciliation table below) increased by $68 million compared to the prior year, mainly due to higher gross profit.

Financial and non-operating items, net was negative $20 million compared to negative $18 million a year earlier. The difference was mainly due to increased interest expense as the result of higher debt and higher interest rates.

Income before taxes increased by $65 million compared to the prior year, mainly due to the increase in operating income.

Tax rate was 27.0% compared to 31.6% in the same period last year. Discrete tax items, net, decreased the tax rate this quarter by 2.5pp. Discrete tax items, net, increased the tax rate by 0.8pp in the same period last year.

Earnings per share, diluted increased by $0.66 compared to a year earlier. The main drivers were $0.52 from higher operating income and $0.10 from lower income taxes.

LIQUIDITY AND CAPITAL RESOURCES

The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on its financial position, results of operations or cash flows. The Company’s future contractual obligations have not changed materially from the amounts reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.

First quarter of 2024 development

Changes in operating working capital was $114 million negative in the first quarter, compared to $202 million negative in the same period the prior year. The $88 million improvement was mainly driven by smaller negative effects on cash flow from receivables and other assets, partly offset by increased negative effects from payables and accrued expenses.

Other, net was $14 million positive in the first quarter, mainly related to deferred income taxes and other. The $10 million negative in Other, net in the same period the prior year mainly related to deferred income taxes.

Operating cash flow increased by $168 million to $122 million compared to the same period last year, mainly due to lower increase in working capital and higher net income.

Capital expenditure, net decreased by $3 million compared to the same period the previous year. Capital expenditure, net in relation to sales was 5.4% versus 5.7% a year earlier.

Free cash flow (Non-U.S. GAAP measure, see reconciliation table below) improved by $171 million compared to the same period the prior year, mainly due to the improved operating cash flow.

Trade working capital (Non-U.S. GAAP measure, see reconciliation table below) decreased by $73 million compared to the same period last year, where the main drivers were $172 million in higher accounts payable partly offset by $88 million in higher accounts receivables and $12 million in higher inventories. In relation to sales, trade working capital decreased from 14.1% to 12.8%.

Leverage ratio (Non-U.S. GAAP measure, see reconciliation table below) As of March 31, 2024, the Company had a leverage ratio of 1.3x compared to 1.6x as of March 31, 2023, as the 12 months trailing adjusted EBITDA (Non-U.S. GAAP measure, see reconciliation table below) increased more than the net debt (Non-U.S. GAAP measure, see reconciliation table below) increased.

Liquidity position As of March 31, 2024, our cash balance was around $0.6 billion, and including committed, unused loan facilities, our liquidity position was around $1.7 billion.

Total equity as of March 31, 2024, decreased by $199 million compared to March 31, 2023. This was mainly due to $225 million in dividend payments and stock repurchases including taxes of $476 million, as well as $63 million in negative currency translation effects, partly offset by $541 million from net income.

NON-U.S. GAAP MEASURES

The Company believes that comparability between periods is improved through the exclusion of certain items. To assist investors in understanding the operating performance of Autoliv's business, it is useful to consider certain U.S. GAAP measures exclusive of these items.

Accordingly, the tables below reconcile from U.S. GAAP to the equivalent non-U.S. GAAP measure.

Reconciliation of U.S. GAAP financial measures to “Adjusted operating income”, “Adjusted operating margin” and “Adjusted Earnings per share, diluted”

(Dollars in millions, except per share data)


	Three Months Ended March 31, 2024									Three Months Ended March 31, 2023
	Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP			Reported U.S. GAAP			Adjustments1)			Non-U.S. GAAP
Operating income	$	194		$	5		$	199		$	127		$	4		$	131
Operating margin, %		7.4	%		0.2	%		7.6	%		5.1	%		0.2	%		5.3	%
Earnings per share, diluted	$	1.52		$	0.05		$	1.58		$	0.86		$	0.03		$	0.90

1) Effects from capacity alignments and antitrust related matters.

Items included in Non-U.S. GAAP adjustments

(Dollars in millions, except per share data)


	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	Millions			Per share			Millions			Per share
Capacity alignments	$	2		$	0.03		$	3		$	0.04
Antitrust related matters		3			0.03			1			0.01
Total adjustments to operating income		5			0.06			4			0.05
Tax on non-U.S. GAAP adjustments1)		(1	)		(0.01	)		(1	)		(0.01	)
Total adjustments to net income	$	4		$	0.05		$	3		$	0.03

1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).

The Company uses the non-U.S. GAAP measure “Trade working capital,” as defined in the table below, in its communications with investors and for management’s review of the development of the trade working capital cash generation from operations. The reconciling items used to derive this measure are, by contrast, managed as part of the Company’s overall cash and debt management, but they are not part of the responsibilities of day-to-day operations’ management.

Calculation of “Trade working capital”

(Dollars in millions)


	March 31, 2024			December 31, 2023			March 31, 2023
Receivables, net	$	2,194		$	2,198		$	2,106
Inventories, net		997			1,012			986
Accounts payable		(1,855	)		(1,978	)		(1,683	)
Trade working capital	$	1,336		$	1,232		$	1,409

Management uses the non-U.S GAAP measure "Net debt" to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company, from time to time enters into “debt-related derivatives” (DRDs) as a part of its debt management and as part of efficiently managing the Company’s overall cost of funds. Creditors and credit rating agencies use net debt adjusted for DRDs in their analyses of the Company’s debt, therefore the Company provides this non-U.S. GAAP measure. DRDs are fair value adjustments to the carrying value of the underlying debt. Also included in the DRDs is the unamortized fair value adjustment related to a discontinued fair value hedge that will be amortized over the remaining life of the debt. By adjusting for DRDs, the total financial liability of net debt is disclosed without grossing debt up with currency or interest fair values.

Reconciliation of U.S. GAAP financial measure to “Net debt”

(Dollars in millions)


	March 31, 2024			December 31, 2023			March 31, 2023
Short-term debt	$	310		$	538		$	577
Long-term debt		1,830			1,324			1,601
Total debt		2,140			1,862			2,179
Cash and cash equivalents		(569	)		(498	)		(713	)
Debt issuance cost/Debt-related derivatives, net		(9	)		3			12
Net debt	$	1,562		$	1,367		$	1,477

The non-U.S. GAAP measure “Net debt” is also used in the non-U.S. GAAP measure “Leverage ratio”. Management uses the non-U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to leverage its operations. The Company's long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is 1.0x with the aim to operate within the range of 0.5x to 1.5x. For details and calculation of leverage ratio, refer to the table below.

Calculation of “Leverage ratio”

(Dollars in millions)


	March 31, 2024			December 31, 2023			March 31, 2023
Net debt1)	$	1,562		$	1,367		$	1,477
Pension liabilities		149			159			159
Debt per the Policy		1,711			1,527			1,636

Net income2)		541			489			416
Income taxes 2)		136			123			176
Interest expense, net2,3)		83			80			60
Other non-operating items, net2)		1			3			4
Income from equity method investments2)		(5	)		(5	)		(4	)
Depreciation and amortization of intangibles2)		381			378			359
Capacity alignments, antitrust related matters and the Andrews litigation settlement2)		231			230			10
EBITDA per the Policy (Adjusted EBITDA)	$	1,369		$	1,297		$	1,021
Leverage ratio		1.3			1.2			1.6

1) Net debt (non-U.S. GAAP measure) is short- and long-term debt and debt-related derivatives, less cash and cash equivalents.

2) Latest 12-months.

3) Interest expense, net including cost for extinguishment of debt, if any, less interest income.

Management uses the non-U.S. GAAP measure “free cash flow” to analyze the amount of cash flow being generated by the Company’s operations after capital expenditure, net. This measure indicates the Company’s cash flow generation level that enables strategic value creation options such as dividends or acquisitions. For details on the calculation of free cash flow, see the table below. Management uses the non-U.S. GAAP measure “cash conversion” to analyze the proportion of net income that is converted into free cash flow. The measure is a tool to evaluate how efficiently the Company utilizes its resources. For details on cash conversion, see the table below.

Calculation of “Free Cash Flow”

(Dollars in millions)


	Three Months Ended March 31,
	2024			2023
Net income	$	127		$	74
Changes in operating working capital		(114	)		(202	)
Depreciation and amortization		96			92
Other, net		14			(10	)
Operating cash flow		122			(46	)
Capital expenditure, net		(140	)		(143	)
Free cash flow1)	$	(18	)	$	(189	)
Cash conversion2)	n/a			n/a
1) Operating cash flow less Capital expenditures, net.
2) Free cash flow relative to Net income.

Headcount


	March 31, 2024			December 31, 2023			March 31, 2023
Total headcount		70,100			70,300			71,300
Whereof:
Direct personnel in manufacturing		52,500			52,400			52,700
Indirect personnel		17,600			17,800			18,600
Temporary personnel		10	%		11	%		11	%

As of March 31, 2024, total headcount (Full Time Equivalent) decreased by 1,200 compared to a year earlier. The indirect workforce decreased by 1,000, or by 5.4%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by 0.4%, despite sales growing organically by 5% compared to a year earlier.

Compared to December 31, 2023, total headcount (FTE) decreased by 0.2%. Indirect headcount decreased by 200, or by 1.1% while direct headcount increased by 0.1%.

Full year 2024 guidance

Our 2024 guidance is mainly based on our customer call-offs, a full year 2024 global LVP decline of around 1%, the achievement of our targeted cost compensation effects, and a sustained reduction in customer call-off volatility.


Financial measure		Full year indication
Organic sales growth		Around 5%
Foreign currency impact on net sales		Around 0%
Adjusted operating margin 1)		Around 10.5%
Tax rate 2)		Around 28%
Operating cash flow 3)		Around $1.2 billion
Capital expenditures, net % of sales		Around 5.5%
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items.
2) Excluding unusual tax items.
3) Excluding unusual items.

The forward-looking non-U.S. GAAP financial measures above are provided on a non-U.S. GAAP basis. The Company has not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs and gains related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and the Company is unable to determine the probable significance of the unavailable information.

Other recent events

Key launches in the three months period ended March 31, 2024

•

BMW 5-Series/i5 Touring: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts.

•

Subaru Forester: Driver/Passenger Airbags, Side Airbags, Seatbelts, Pedestrian Airbag.

•

Dacia Duster: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Seatbelts.

•

Hyundai Santa Fe: Side Airbags, Head/Inflatable Curtain Airbags.

•

VW ID.7 Tourer: Driver/Passenger Airbags, Side Airbags, Steering Wheel, Front Center Airbag, Seatbelts, Hood Lifter.

•

Tata Punch.ev: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Seatbelts.

•

Renault Scenic e-Tech: Driver/Passenger Airbags, Side Airbags, Steering Wheel, Front Center Airbag, Seatbelts.

•

Tank 700: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags, Knee Airbag, Steering Wheel, Front Center Airbag, Seatbelts, Hood Lifter.

•

Li Auto Mega: Driver/Passenger Airbags, Side Airbags, Head/Inflatable Curtain Airbags.

Other Items

•

On February 1, 2024, Autoliv announced it had priced a 5.5-year bond offering of €500 million in the Eurobond market. The notes were issued as green bonds on February 7, 2024 at a coupon of 3.625%.

•

On March 6, 2024, Autoliv announced the renewal for one year of its €3 billion guaranteed euro medium term note program, originally established on April 11, 2019.

•

In first quarter of 2024, Autoliv repurchased and retired 1.37 million shares of common stock at an average price of $116.78 per share under the Autoliv 2022-2024 stock purchase program.

•

Following Autoliv's first partnership in 2021 with SSAB on fossil-free steel, we now introduce two additional collaborations for carbon-reduced steel with Arvedi and ThyssenKrupp. The aim is to reduce greenhouse gas emissions in our products by utilizing low-emission steel and increase recycled content in the material.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of March 31, 2024, there have been no material changes to the information related to quantitative and qualitative disclosures about market risk that were provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.

ITEM 4. CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures

An evaluation has been carried out, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective.

(b)

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of our business, we are subject to legal proceedings brought by or against us and our subsidiaries.

See Part I, Item 1, "Financial Statements, Note 9 Contingent Liabilities" of this Quarterly Report on Form 10-Q for a summary of certain ongoing legal proceedings. Such information is incorporated into this Part II, Item 1—"Legal Proceedings" by reference.

ITEM 1A. RISK FACTORS

As of March 31, 2024, there have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Stock repurchase program

The following table provides information with respect to common stock repurchases by the Company during the three months period ended March 31, 2024.


	New York Stock Exchange (NYSE)
Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (USD) (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (3)		Maximum Number of Shares that Yet May Be Purchased Under the Plans or Programs (3)
January 1-31, 2024		—	$	—		5,111,824		11,888,176
February 1-29, 2024		528,771	$	113.51		5,640,595		11,359,405
March 1-31, 2024		841,286	$	118.84		6,481,881		10,518,119

(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For accounting purposes, shares repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.

(2) The average price paid per share in U.S. dollars exclude brokerage commissions and other costs of execution.

(3) On November 16, 2021, the Company announced that its Board of Directors approved a stock repurchase program that authorizes the Company to repurchase up to $1.5 billion or up to 17 million common shares, whichever comes first, between January 2022 and the end of 2024.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

On February 25, 2024, Jan Carlson, Chairman of the Board of Directors, adopted a trading plan intended to satisfy Rule 10b5-1(c) for the potential sale of the shares of the Company's common stock that he would acquire upon the vesting of a restricted stock units award on May 11, 2024. The plan provides for the potential sale of up to 2,715 shares of the Company's common stock. These sales would occur between May 31, 2024 and June 7, 2024 if the minimum price threshold specified in the plan is met.

ITEM 6. EXHIBITS


Exhibit No.		Description

3.1		Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).

3.2		Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-12933, filing date December 18, 2015).

4.1		Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009).

4.2		Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 15, 2012).

4.3		Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 25, 2014).

4.4		Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018, among Autoliv, Inc., Autoliv ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

4.5		Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP, Inc. and HSBC Bank PLC, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

4.6		Amended and Restated Agency Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein, incorporated herein by reference to Exhibit 4.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 22, 2022).

4.7*		Base Listing Particulars Agreement, dated March 6, 2024, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein.

4.8*		Amended and Restated Programme Agreement, dated March 6, 2024, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named therein.

4.9*		General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv, Inc., effective as of April 8, 2024, with Skandinaviska Enskilda Banken AB (publ) serving as custodian.

10.1*+		Form of Employee 2024 restricted stock units grant agreement promised under Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated.

10.2*+		Form of Employee 2024 performance share units grant agreement promised under the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated.

31.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.

31.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.

32.1*		Certification of the Chief Executive Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of the Chief Financial Officer of Autoliv, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File as its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents.

104		Cover page formatted as Inline XBRL and contained in Exhibit 101.

* Filed herewith.

+ Management contract or compensatory plan.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: April 26, 2024

AUTOLIV, INC.

(Registrant)


By:		/s/ Fredrik Westin
		Fredrik Westin
		Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)


Delaware		51-0378542
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

Klarabergsviadukten 70, Section B7
Box 70381,
Stockholm, Sweden		SE-107 24
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $1.00 per share)	ALV	New York Stock Exchange


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934