UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2013
Autoliv, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-12933 | 51-0378542 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Vasagatan 11, 7th Floor, SE-111 20
Box 70381,
SE-107 24, Stockholm, Sweden
(Address of principal executive offices, including zip code)
+46 8 587 20 600
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 Regulation FD disclosure.
On May 14, 2013, Autoliv, Inc. (the Company) will conduct a conference call and make a webcast presentation at its Capital Markets Day conference being held by the Company for financial analysts and institutional investors. Interested parties are invited to listen to the event via a live internet broadcast on the Companys website at www.autoliv.com beginning at 9:00 a.m. CET. A copy of the press release issued in connection with Capital Markets Day is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The slide presentation to be used during the Capital Markets Day webcast is also furnished herewith as Exhibit 99.2 and incorporated herein by this reference. All information contained in Exhibit 99.2 is presented as of the date referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
The press release and presentation contain certain references to financial measures identified as organic sales, operating working capital, interest coverage ratio, leverage ratio, tax rates excluding discrete items, and free cash flow all of which are adjustments from comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP). These financial measures, as used herein, differ from financial measures reported under GAAP and management believes that these financial presentations provide useful supplemental information which is important to a proper understanding by investors of the Companys core business results. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies. For an explanation of the reasons for which management uses these figures, see the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with SEC on February 22, 2013. Reconciliations of these non-GAAP measures to the directly comparable GAAP measures are provided in the slide presentation or in the Companys Annual Reports.
Item 8.01 Other Events
On May 14, 2013, the Company also issued a press release introducing a new active safety system. The new active safety system is a Stereo Vision System (SVS) that will help vehicle manufacturers meet the new EuroNCAP test criteria for Autonomous Emergency Braking (AEB), Intelligent Speed Assist (ISA) and Pedestrian Protection. A copy of this press release is filed as Exhibit 99.3 to this report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) EXHIBITS
99.1 Press Release of Autoliv, Inc. dated May 14, 2013.
99.2 Slide presentation to be made at Capital Markets Day on May 14, 2013.
99.3 Press Release of Autoliv, Inc. dated May 14, 2013.
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: May 14, 2013
AUTOLIV, INC. | ||||||
By: | /s/ Lars A. Sjöbring | |||||
Name: | Lars A. Sjöbring | |||||
Title: | Group Vice President Legal Affairs General Counsel and Secretary |
Exhibit 99.1
P R E S S R E L E A S E
Autoliv Updates Long-Term Targets and Strategy for Growth
(Stockholm May 14, 2013) At its Capital Market Day today in Vårgårda, Sweden, Autoliv Inc. (NYSE: ALV and SSE: ALIV), the world-wide leader in automotive safety systems, updates its long-term targets and outlines its strategy for growth. The Company also outlines its business plan and the financial effects of the plan and the long-term targets. In addition the Company presents plans for the key areas of growth markets, innovation and active safety.
The long-term targets we are communicating today should allow us to further strengthen our number one position in the automotive safety industry, while providing competitive returns to our shareholders, said Jan Carlson, President & CEO of Autoliv Inc.
Our growth strategy focuses on increasing our active safety market share and strengthening our passive safety leadership position. To achieve this we are investing in technical development in passive and active safetywhile actively pursuing acquisition opportunities, primarily in active safety.
At the same time we are operating in an environment of change and uncertainty. Our industry is undergoing fundamental changes, as the majority of the worlds vehicle production moves to growth markets, and the economic uncertainty in Europe continues, he concluded.
The Companys updated long-term targets are to:
| Grow organic sales* at least in line with its market |
| Have a debt policy with a leverage ratio* (net debt to EBITDA) of around 1x |
| Have an operating margin of 8-9% over the business cycles |
| EPS growth faster than organic sales growth (excluding effects of currency) |
These long-term targets exclude potential costs and expenses from on-going antitrust investigations.
The long-term leverage target is an operating financial leverage ratio of around 1x within a range of 0.5x to 1.5x. This revised debt policy should allow Autoliv to allocate up to $1.3 billion (including its current net cash position of close to $400 million) for acquisitions to support growth, to return funds to shareholders and be prepared for costs associated with the on-going antitrust investigations. The Company intends to start adjusting towards the new policy this year, and plans to be within its target range during 2014.
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
P R E S S R E L E A S E
The Company also predicts that its current market should grow by approximately 5% annually to more than $27 billion until 2015, and that the same level of growth is not unlikely to continue until 2017. This forecast is based on existing vehicle production plans and current penetration rate trends for automotive passive and active safety systems. The Company long-term target is to grow its organic sales at least in line with this market. Autoliv believes that capital expenditure of 4-5% of sales is needed to support this level of continued growth of the Company.
The Company outlines how it intends to grow its market share in the rapidly growing active safety segment to be approaching 25% by 2015 from todays 20%, by organically growing its sales in the active safety technologies it offers. Autoliv will also reiterate its previously communicated organic sales target for active safety of half a billion dollars in 2015, up from $218 million in 2012. Autoliv already offers an array of products in active safety, covering radar, vision and night vision technologies, and is continuing to look for acquisition opportunities to strengthen its product offering even more and advance its market presence in active safety.
In 2012, Autolivs market share in the growth markets increased to 34%, up from less than 30% five years ago. The Company believes there is opportunity to further strengthen this position, as exemplified by its expected continued market share growth for airbags and seatbelts in China from 35% in 2012 to 37% in 2015. A strong position in frontal and side airbags where the penetration rates in some growth markets should increase by up to 20 percentage points between 2013 and 2017, should also support the future sales growth.
The Company further outlines how it intends to continue to deliver among the industrys leading operating margins* of 8-9% over the business cycles. This should be achieved through new value-added products, RD&E for innovation, capacity alignments and savings in direct material and labor.
In a separate press release today, Autoliv announced that it will be introducing a new active safety system. A Stereo Vision System (SVS) that will help vehicle manufacturers meet the new EuroNCAP test criteria for Autonomous Emergency Braking (AEB), Intelligent Speed Assist (ISA) and Pedestrian Protection. Autoliv estimates that these recently announced stricter test criteria from EuroNCAP could increase the average safety content per five star rated vehicle in Europe by at least 60 USD in 2015.
Autolivs Capital Market Day presentations will be webcasted starting 9.00 AM CET, today. Please go to www.autoliv.com to follow the webcast. The slide material used will be available on the companys website following the live presentations and can be found with Autolivs other filings with the SEC at www.sec.gov.
Inquiries: | ||
Jan Carlson, President & CEO Autoliv | Tel +46 8 587 20 600 | |
Thomas Jönsson, Vice President, Corporate Communications | Tel + 46 8 587 20 627 |
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
P R E S S R E L E A S E
About Autoliv
Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has approximately 80 facilities with 52, 000 employees in 29 countries. In addition, the Company has ten technical centers in nine countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2012 amounted to US $8.3 billion. The Companys shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.
* | In this press release we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autolivs performance. We believe that these measures assist investors and management in analyzing trends in the Companys business for the reasons given below. Investors should not consider these non-U.S. GAAP measures as substitutes, but rather as additions, to financial reporting measures prepared in accordance with U.S. GAAP. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. For further details see our annual report on form 10K. |
Safe Harbor
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-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. For example, forward-looking statements include, without limitation, statements relating to industry trends, business opportunities, sales contracts, sales backlog, and on-going commercial arrangements and discussions, as well as any statements about future operating performance or financial results.
In some cases, you can identify these statements by forward-looking words such as estimates, expects, anticipates, projects, plans, intends, believes, may, might, will, should, or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words.
All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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.
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, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives discussed herein and the market reaction thereto; changes in general industry market conditions or regional growth or declines; 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; divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules for which the Company is a supplier; component shortages; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in program awards and performance; the financial results of companies in which Autoliv has made technology investments or joint-venture arrangements; pricing negotiations with customers; our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits including higher funding requirements of our pension plans; work stoppages or other
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
P R E S S R E L E A S E
labor issues at our facilities or at the facilities of our customers or suppliers; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business (including securities litigation); tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified in Item 1A Risk Factors in our Annual Report and Quarterly Report on Form 10-K and 10-Q and any amendments thereto. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events.
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 any such statement.
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
Exhibit 99.2
Autolivs Business Plan
Capital Market Day Vårgårda, May 14, 2013
Jan Carlson
President & CEO
Copyright Autoliv Inc., All Rights Reserved
Driven for Life.
Safe Harbor Statement *
Each of the presentations herein contain 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. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. The outcome of these forward-looking statements could differ materially from those stated for a variety of reasons, including without limitation, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
(*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com
Page- 2 Copyright Autoliv Inc., All Rights Reserved
Safety is our DNA
Page- 3 Copyright Autoliv Inc., All Rights Reserved
Capital Market Day Press Releases
Strategy and Targets
Outlines Strategy
Updates Long Term Targets
New Debt Policy
First Stereo Vision Contract in Active Safety
Page- 4 Copyright Autoliv Inc., All Rights Reserved
Todays Program
Business Plan and Targets
Financials and New Debt Policy
Growth Markets
Innovations
Active Safety
Page- 5 Copyright Autoliv Inc., All Rights Reserved
Long Term Targets*
Grow organic sales at least in line with our market Net Debt/EBITDA around one times Operating margin 8-9% over the business cycles EPS growth faster than organic sales growth
Excluding effects of currency
(*) US GAAP excluding costs related to the antitrust investigations
Page- 6 Copyright Autoliv Inc., All Rights Reserved
Previous Debt Policy*
Interest Coverage significantly above 2.75 times and Leverage ratio significantly below 3 times.
4 |
|
Old Policy < 3 times Leverage Ratio *
3 |
|
Current limitation
Times 2
1 |
|
0
03 04 05 06 07 08 09 10 11 12
(*) Non US GAAP measure, see Annual Reports for reconciliation
Page- 7 Copyright Autoliv Inc., All Rights Reserved
Revised Debt Policy*
Leverage ratio policy in the range of 0.5 to 1.5 times with a long-term target around 1 time.
4 |
|
Leverage Ratio * Long-term Range
3 |
|
Times 2
Max
1 |
|
New Target |
Min
0
03 04 05 06 07 08 09 10 11 12
We intend to start adjusting this year, and plan to be within the range during 2014
(*) Non US GAAP measure, see Annual Reports for reconciliation
Page- 8 Copyright Autoliv Inc., All Rights Reserved
Steady Growth Hides Dramatic Business Transformation
Challenging World
70
60
Vehicles 50
40
Light 30
Million 20
10
0
LVP Growth Markets LVP Triad
Sales
10
8 |
|
(illions) 6
$
(Billions)US 4
$
US 2
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Protection to Prevention
Page- 9 Copyright Autoliv Inc., All Rights Reserved
How to continue to grow?
US$ (Millions)
3 |
|
69 |
0 000 000 000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
* |
|
(*) DIR estimate. Takata Guidance for FY2012 period ending March 2013 (*) TRW OSS, excludes electronics and driver assist systems
Page- 10 Copyright Autoliv Inc., All Rights Reserved
Market Forecast Current Market
40
35
30 CAGR 5%
25
(Billions) 20
$ 15
US
10
5 |
|
0
2012 2015 2017
Passive Safety Developed Markets Passive Safety Growth Markets Active Safety
Page- 11 Copyright Autoliv Inc., All Rights Reserved
Market Forecast Additional Potential Market
40
35 Potential Market
30 CAGR 5%
25
(Billions) 20
Current Market
US $ 15 10
5 |
|
0
2012 2015 2017
Passive Safety Developed Markets Passive Safety Growth Markets Active Safety
Potential market: Stability Control and Rear/Surround View Systems
Page- 12 Copyright Autoliv Inc., All Rights Reserved
Light Vehicle Production Growth
- 2012 thru 2017
2012-17 CAGR LVP
100.0.0 ~ 98M
Global Market 4%
~ 91M
Growth Markets 7%
~ 80M 33
80.0.0
30 RoW + EEU 5%
25 ~59M
60.0.0 ~42M China 9%
23 26 17
40.0.0
Japan (4%)
8 millions 9 8
13 13
13 WEU 2%
20.0.0 ~39M vehicles ~37M
17 18
Light 15 North America 3%
.0.0
2012 2015 2017
Growth markets expected to increase by approx. 40% by 2017 from 2012
Source: IHS @ April 17, 2013, TRIAD (Japan, Western Europe, North America)
Page- 13 Copyright Autoliv Inc., All Rights Reserved
Market Drivers:
- Rating programs evolution
EuroNCAP
2014
Active Safety weighting increases from 10% to 20%
Active Safety required to achieve 5 Star
2015
Revision of passive safety side impact test
2017
Active Safety required to achieve 4 Star
Other NCAP programs
Active safety inclusion in NCAPs: US, Japan, Korea and Australia starting 2014
ChinaNCAP upgrade in 2015, benchmarks EuroNCAP
LatinNCAP and ASEAN NCAP under implementation
Frontal airbags mandatory from 2014 in Brazil
Active Safety technologies are under evaluation by NHTSA for the new US NCAP
Page- 14 Copyright Autoliv Inc., All Rights Reserved
Market Drivers:
- Increasing penetration in growth markets
China 100% India 100%
80% 80%
60% Frontal 60% Frontal
Chest Chest
40% 40%
Head Head
20% 20%
0% 0%
2012 2015 2017 2012 2015 2017
South 100% 100%
Global
America
80% 80%
60% Frontal 60% Frontal
Chest Chest
40% 40%
Head Head
20% 20%
0% 0%
2012 2015 2017 2012 2013 2015 2017
Side and frontal airbag penetration grows by up to 20% in key markets
Page- 15 Copyright Autoliv Inc., All Rights Reserved
Market Drivers
- Innovation in Passive Safety
Strengthening market leadership through innovation
Pedestrian Protection Airbag Pre pretentioner Knee Airbag Rear seat safety
Page- 16 Copyright Autoliv Inc., All Rights Reserved
Sales Drivers:
- Strong presence in Growth Markets
30
25
Growth Markets excl.
20 China CAGR 11%
(Billions) China GAGR 14%
15
$ Japan CAGR (4%)
US
10
W.Europe CAGR 2%
5 |
|
North America CAGR
4%
0
2012 2015
2012 ALV Market Share Growth Markets
34%
Page- 17 Copyright Autoliv Inc., All Rights Reserved
Sales Drivers:
- Strong presence in product growth segments
Market by product
30 000 Autoliv Market Shares
Active Safety CAGR 27%
25 000 Product 2012 2015
Steering Wheel
CAGR 4% Active Safety 20% 24%
20 000
Electronics Steering 27% 27% CAGR 4% Wheel
15 000
Side Airbags Electronics 22% 24% CAGR 3%
10 000 Side Airbags 48% 46% Frontal Airbags CAGR 3% Frontal 29% 29%
5 000 Airbags Seatbelts
CAGR 5% Seatbelts 39% 41%
0
2012 2015
Page- 18 Copyright Autoliv Inc., All Rights Reserved
Active Safetya Strategic Journey
- On track to reach 500 MUSD sales target
Launches Night Vision/ Radar/ Mono Vision/ Brake Stereo
BMW Mercedes BMW Control Vision
1000
900
800 Potential
700 Astyx Acquisitions
600 Radar
Millions Visteon
Acquisitions 500 Visteon RC Tyco Radar Radar Hella
$
US 400 Vision 500 MUSD
300 Organic sales
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 F2013 F2014 F2015
Page- 19 Copyright Autoliv Inc., All Rights Reserved
Sales Drivers:
- Strengthen ALV in Active Safety
Stereo Vision Cameras For Premium OEM Launch 2015 Possible applications:
Autonomous Emergency Braking Intelligent Speed Assist Pedestrian Detection Light Source Recognition Lane and Road Departure Warning Adaptive Cruise Control Queue Assist Road Bump Assist
Page- 20 Copyright Autoliv Inc., All Rights Reserved
Active Safety Summary
Broadest product portfolio today
Innovation and integration in brake control major opportunity
Active M&A strategy to be the most complete supplier in Active Safety
Page- 21 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
Increasing Shareholder Value
Long-term operating margin target*
?8-9% thru the business cycles
Off-set customer pricing margin effect with;
?Direct material savings ? 3%
Direct labor savings ? 5%
New Value-added products
Capacity alignments to manage global footprint RD&E investments in growth thru innovation
Underlying objective is to offset margin effect of pricing with direct cost reductions
Long-term targets exclude potential costs and expenses from on-going antitrust investigations, and currency effects
Page- 22 Copyright Autoliv Inc., All Rights Reserved
Summary
Go aggressively for market share in active safety Strengthen passive safety leadership further Have the best geographical footprint Continue to lead technology in passive & active safety Grow organically and through M&A
150,000 lives saved by our products annually
Page- 23 Copyright Autoliv Inc., All Rights Reserved
AutolivSafety Systems
Active Autoliv
Safety
Every year, Autolivs products
save over 25,000 lives
Passive
Safety
Page- 24 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing
Shareholder Value
Capital Market Day
Vårgårda, May 14, 2013
Driven for Life. Mats Wallin
Vice President & CFO
Copyright Autoliv Inc., All Rights Reserved
Safe Harbor Statement *
This presentation 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. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. The outcome of these forward-looking statements could differ materially from those stated for a variety of reasons, including without limitation, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
(*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com
Page2 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing Shareholder Value
Financial Guiding Principles Cash flow Generation
Margins
EPS
Free Cash Flow & RoCE
Capital Structure
Debt Policy & RoE
Page3 Copyright Autoliv Inc., All Rights Reserved
Financial Guiding Principles
for Increasing Shareholder Value
Cash flow generation focus
Growth with tight cost and capital control
Strong Investment Grade credit rating
Financial Flexibility for growth in a cyclical industry
Shareholder Friendly
Increasing Shareholder Value thru returns to Shareholders and acquisitions
Value creating Cash flow
Page4 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing Shareholder Value
Financial Guiding Principles Cash flow Generation
Margins
EPS
Free Cash Flow & RoCE
Capital Structure
Debt Policy & RoE
Page5 Copyright Autoliv Inc., All Rights Reserved
Long-term Operating Margin Target*
is 8-9% thru the business cycles
10
%
5 |
|
Operating Margin
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13F
Operating margin exceeds 8% over the last 15 years
(*) US GAAP excluding costs related to the antitrust investigations
Page6 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Cost Structure (% of Sales)
Before Crisis After Crisis
7.4 EBIT 8.5
11.4
Other 12.4
4.7 D & A 3.3
Major Fixed Costs 15.8 13.9 Major Fixed Costs
20.5 % Indirect labor 17.2 %
9.6 Direct labor 8.1
26.4
30.7 Value Add
Major Direct Costs Major Direct Costs
60.7 % 61.9 %
Raw Material 27.4
20.4
2007 2012
Fixed costs and direct labor improvement is a direct result of our transformation initiatives
Page7 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Direct Material
Direct material savings ? 3% thru:
Supply base consolidation and local sourcing
Product re-designs and reduce tail-end products
Vertical integration in certain key components
Number of Suppliers*
2 |
|
000 |
1 |
|
570 1 594 |
1 |
|
516 1 490 |
1 |
|
500 |
1 |
|
354 |
1 |
|
000 |
500
0
2008 2009 2010 2011 2012
Direct Material Savings* (%)
6%
3%
0%
2007 2008 2009 2010 2011 2012 2013F
DM Saving DM Saving excl Raw Material Price Impact
Localized Sourcing
60
40
%
20
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Material reductions > 3% per year net of commodity increases over the last business cycle
(*) Target
Page8 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Vertical Integration
Steering Wheel Cushion
Why Vertical Integration?
Margins
Process flow
Supply Chain Management
Module Quality
Inflator Initiator Propellant
Also produce close to 100% of our seatbelt webbing in house
Page9 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
by adapting to specific market needs with Modular Designs
Base Module Content per Vehicle ~ 20%
of the PrePretensioner module
PrePretensioner module Base module (Active Seatbelt) R200.2
Operating margins can even be higher where content per vehicle is lower
Page10 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Direct Labor
10.0%
Direct labor savings ? 5% thru: LMPU Improvements
Productivity 5.7% 6.2% 6.1% 6.0% 6.1%
Adapting our global footprint
5.0%
Automation Target
One Product, One Process
0.0%
2008 2009 2010 2011 2012
Direct labor Headcount
Automation
(when & where it makes sense)
Page11 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Reduce Manufacturing Costs with One Process
Benefits of Flexible Roll-folder
Floor space savings ~ 50%
CapEx savings ~ 25%
Easy to retrofit
Improved Quality
Applies to the majority of side-curtain airbag designs
More than 30 Flexible Roll-folders in operation in all regions launch started in EU / Americas and now in Asia.
This innovation originated in Vårgårda, Sweden
Page12 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- New Innovations
Bag in Belt Pedestrian Airbags New Seatbelt function Stereo Vision System
Introducing new value added products leveraging our core competencies in seatbelts, airbags and vision
Page13 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- Aligning our Global Footprint to the Markets
50
40
millions 30 Growth Markets*
in WEU
LVP 20
10
0
2007 2008 2009 2010 2011 2012 2013 2014 2015
FY12 Q1 13 FY 13
(US$ millions unless
otherwise specified)
Cost (gross) $79 $3 $25-50
Cash outlay$5 $40-70
Savings~ $3 ~ $15
Carry forward $75 $70 Balance Sheet
Ramping up Growth markets and Active Safety while adjusting for the long-term in Europe
(*) Growth Markets excludes the Triad, LVP (Light Vehicle Production) according to IHS @ April 17, 2013.
Page14 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Margins
- RD&E, net looking ahead
30
24
18 % of Sales, Active Safety %
12
% of Sales, Total
6 |
|
0
2012A 2013F 2014F 2015F
Factors Affecting RD&E:
Many new technologies in development not yet launched
Improved leverage as gaining critical mass
Increased RD&E in growth markets
RD&E, net is expected to continue to be in the range of 5.5 to 6% of sales thru 2015
Page15 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing Shareholder Value
Financial Guiding Principles Cash flow Generation
Margins
EPS
Free Cash Flow & RoCE
Capital Structure
Debt Policy & RoE
Page16 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for EPS
- Interest, net and Debt Maturities
70
Int exp, net
60
50 ~ 50%
(millions) 40 $
30
US
20
10
0
02 03 04 05 06 07 08 09 10 11 12 LTM
Maturities
2 |
|
1 |
|
(millions) 1 ies in 2014:
$ M at 5.5% US 0 M at 3.9% at 9.0%
0
0
16 2017 2018 +
Q113 interest cost at historical low levels ~ $7M
Page17 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for EPS
- Factors affecting the Tax Rate
Tax rate may be increased by:
Change in country mix
New or increased start up losses 40% US Tax Rate 35%
Write off of Deferred Tax Assets
Antitrust settlements/penalties 30%
New tax legislation
Underlying Tax Rate
Use of Capital 20%
excluding Discrete*
Tax rate may be decreased by: 10%
Change in country mix
Reduction of start up losses or using old losses 0%
New tax legislation 2010 2011 2012 2013
Use of Capital
Effective tax rate is expected to move to the low 30s % over the next few years
(*) Non US GAAP measure see reconciliation
Page - 18 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for EPS
- Currency
Transaction Effect: Translation Effect: 2013F: $1.7 billion 2012A Sales by Currency
5 |
|
top exposures is 55% ~ 75% Non US currencies |
8 |
|
top exposures is 68% |
74%
26%
0 0
Sell USD buy MXN 17% Sell EUR buy SEK 13% 0 0 0 Buy USD sell KRW 10% Buy EUR sell CNY 10% US Non US Sell EUR buy PLN 5% Other 45%
Natural hedging strategy, total transaction exposure less than 20% of sales
Page19 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing Shareholder Value
Financial Guiding Principles Cash flow Generation
Margins
EPS
Free Cash Flow & RoCE
Capital Structure
Debt Policy & RoE
Page20 Copyright Autoliv Inc., All Rights Reserved
Return on Capital Employed
- Among Industry Leading Returns
30
RoCE
20
%
10
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
4,000
3,500 Operating
Working Capital *
3,000
)
s 2,500
n illio Property, Plant &
(m 2,000
Equipment, net $
S 1,500
U
1,000 Goodwill & other intangible assets
500
0
07 08 09 10 11 12
Goodwill represents ~ 50% of Capital Employed
(*) Non US GAAP measures see Annual Reports for reconciliation
Page21 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Cash Flow
- Operating Working Capital *
12
Target < 10% of sales
9
9.1
8.0 sales 7.0 of 6 6.5
6.2
% 5.4 3
0
07 08 09 10 11 12
Working Capital Management:
Supplier terms to match our customers
Campus Facility Concept
Global Products and Process
Local Sourcing
Target operating cash flow < 10% of sales
(*) Non US GAAP measure see Annual Reports for reconciliation
Page22 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Cash Flow
- Capital Expenditures, Depreciation and Amortization
D&A
900 8
CapEx, net
Capex % of Sales Capital Management:
D&A % of Sales
6 |
|
Source CapEx from low cost countries
600
(millions) % Campus Facility Concept
$ 4
US Global Products and Process
300
2 |
|
Vertical Integration |
0 0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
CapEx is expected to be in the range of 4 to 5% of sales. over the long-term to support 5% organic sales growth
Page23 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for RoCE
- Increasing Capital Employed Turnover*
2.6
2.4 Capital Management:
2.2 Supplier terms to match our customers
2 |
|
Source CapEx from low cost countries Turns 1.8 Campus Facility Concept |
1.6
Global Products and Processes 1.4 Local Sourcing
1.2
Value creating Acquisitions
1 |
|
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Since 1997 Capital Employed has increased only ~ 0.4 times while sales has increased ~ 2.5 times
(*) Sales in relation to average capital employed
Page24 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy for Free Cash Flow*
- Free Cash flow vs. Net Income and Use of Free Cash flow
Net Income Free Cash flow
600
)
s
n
illio 400
(m
$
S
U
200
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Use of Free Cash flow
19972012
Cash Acquisitions
19% 18%
29% 34%
Dividends Buybacks
~ 80% of Free Cash flow been returned to
Shareholders or been used for acquisitions
Over the business cycles Free Cash flow conversion is ~ 98% of net income
(*) Non US GAAP measure see reconciliation
Page25 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
for Increasing Shareholder Value
Financial Guiding Principles Cash flow Generation
Margins
EPS
Free Cash Flow & RoCE
Capital Structure
Debt Policy & RoE
Page26 Copyright Autoliv Inc., All Rights Reserved
Capital Structure
- Debt Limitation Policy
Current Policy
Maintain a financial leverage commensurate with a strong investment grade credit rating.
Interest Coverage (*) significantly above 2.75 xs
Leverage ratio (*) significantly below 3 xs
Revised Policy
Maintain a financial leverage commensurate with a strong investment grade credit rating (Unchanged)
Long-term target is an Operating Financial Leverage ratio (*) of around 1 x within the range of 0.5 to 1.5 xs.
The objective is to provide the company sufficient flexibility to manage the inherent risks and cyclicality in Autolivs business and allow the company to realize strategic opportunities and fund growth initiatives while creating shareholder value.
(*) Non US GAAP measures see Annual Reports for reconciliation
Page27 Copyright Autoliv Inc., All Rights Reserved
Capital Structure
- Debt Limitation Policy
4 |
|
Old Policy < 3 times Leverage Ratio * |
Long-term Range Effects of Revised Policy
3 |
|
$1.3B headroom available for |
Current limitation
acquisitions, shareholder returns and others
Times 2
Max We intend to start adjusting this year and Target plan to be within the range during 2014
1 |
|
Min ?Incremental improvement in RoE, excluding effects of antitrust
0
03 04 05 06 07 08 09 10 11 12
Along with Autolivs refinancing risk policy of a long-term credit facility target of 1.5 xs net debt
(*) Non US GAAP measure see Annual Reports for Reconciliation
Page28 Copyright Autoliv Inc., All Rights Reserved
Capital Structure
- Share Count vs. Earnings per Share and RoE
8 |
|
100
6 |
|
75
Shares
(millions) $
EPS US
Count 50 4 EPS
Share 25 2
0 0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
25
Return on Equity
20
15
%
10
5 |
|
0
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
The revised debt limitation policy creates headroom of $1.3B for acquisitions, Shareholder returns and others
Page29 Copyright Autoliv Inc., All Rights Reserved
Financial Strategy
- Continued focus on value creation
Solid growth with industry leading margins
Continued focus on cash flow and returns on capital
Increase Shareholder Value thru
acquisitions or returns in line with the revised debt limitation policy
Long-term EPS growth rate faster than organic sales* growth
EPS growth rate excludes effects of currency and antitrust investigations
Increasing Shareholder Value thru Value creating Cash flow and returns
(*) Non US GAAP measure
Page30 Copyright Autoliv Inc., All Rights Reserved
Reconciliations
Page31 Copyright Autoliv Inc., All Rights Reserved
Free Cash flow
Millions unless specified 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Oper CF $ 343 $ 314 $ 436 $ 266 $ 266 $ 509 $ 529 $ 680 $ 479 $ 560 $ 781 $ 614 $ 493 $ 924 $ 758 $ 689
Capex, net $ 183 $ 285 $ 261 $ 235 $ 248 $ 228 $ 258 $ 324 $ 315 $ 292 $ 312 $ 279 $ 130 $ 224 $ 357 $ 360
Free Cash Flow (OCF-CapEx, net) $ 160 $ 29 $ 175 $ 31 $ 18 $ 281 $ 271 $ 356 $ 164 $ 268 $ 469 $ 335 $ 363 $ 700 $ 401 $ 329
Page32 Copyright Autoliv Inc., All Rights Reserved
Items Affecting the Tax Rate
2010 2011 2012
Reported Pre-Tax Income 805.5 828.3 668.6
U.S. Federal Income Tax Rate 35.0% 35.0% 35.0%
R&D and Other tax credits -3.3% -3.0% -3.2%
Foreign rate variance ex. holidays -6.4% -6.3% -5.5%
Withholding Taxes 2.7% 1.9% 1.3%
Cost of Double Taxation 1.9% 0.7% 0.9%
State taxes and Other-net -0.1% 0.4% -0.9%
Rate excluding holidays and losses* 29.8% 28.7% 27.6%
Tax holidays -2.2% -1.2% -1.8%
Other 0.0% -1.4% -2.3%
Tax losses -0.8% 1.0% 3.0%
Antitrust Settlement 0.0% 0.0% 0.9%
Reclassifications to Discrete 1.5% 0.2% 0.6%
Underlying Tax Rate Trend* 28.3% 27.3% 28.0%
Tax reserves, Other discrete -2.2% -3.0% -0.6%
Reported Effective Income Tax Rate 26.1% 24.3% 27.4%
*Non-US GAAP measures **2013 Current projection
Page33 Copyright Autoliv Inc., All Rights Reserved
Thank you!
AutolivSafety Systems
Active Autoliv
Safety
Every year, Autolivs products
save over 25,000 lives
Passive
Safety
Page34 Copyright Autoliv Inc., All Rights Reserved
Safety in the Growth Markets
Capital Market Day Vårgårda, May 14, 2013
George Chang
President Autoliv Asia
Copyright Autoliv Inc., All Rights Reserved
Driven for Life.
Safe Harbor Statement *
This presentation 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. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. The outcome of these forward-looking statements could differ materially from those stated for a variety of reasons, including without limitation, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
(*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com
Page2 Copyright Autoliv Inc., All Rights Reserved
Sales Drivers:
- Strong presence in Growth Markets
30
25
Growth Markets excl.
China CAGR 11%
20
(Billions) China GAGR 14%
15
$ Japan CAGR (4%)
US
10
W.Europe CAGR 2%
5 |
|
North America CAGR 4%
0
2012 2015
2012 ALV Market Share* Growth Markets
34%
Page3 Copyright Autoliv Inc., All Rights Reserved
The Growth Markets
Russia
China
India Thailand
Brazil Philipinnes Indonesia South Africa
Page4
Growth Markets Snapshot
Country Population GDP/Capital Vehicle/1,000 Safety Fatalities per Fatalities per (Million) (US $) People Content/ 100,000 inhabitants 100,000 motor Vehicle (US $) vehicles
China 1,344 6,000 85 210 5.1 36 India 1,241 1,500 18 60 11.1 315 Indonesia 242 4,700 60 140 16.2 210 Thailand 70 5,700 165 220 19.6 119 Brazil 197 12,100 260 140 19.9 71
United States 314 49,900 800 440 12.3 15 Germany 82 41,500 570 470 4.5 7 Japan 128 46,700 600 375 3.8 7 South Korea 50 23,100 360 280 11.3 26 Sweden 9 40,400 520 n/a 2.9 7
Page5 Copyright Autoliv Inc., All Rights Reserved
Growth Drivers:
- Light Vehicle Production (LVP)
30
25
20
units 15 Million 10
5 |
|
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source : IHS data
Page6 Copyright Autoliv Inc., All Rights Reserved
India
- ALV sales expected to increase 80%
Light Vehicle Production
30 2012* 2015*
25
20 units ALV
ALV
15 35% 42% Others Others
Million 58%
10 65%
5 |
|
0
* |
|
Combined market share for airbags and seatbelts |
Current CPV: $60 per vehicle
Source : IHS data
Page7 Copyright Autoliv Inc., All Rights Reserved
ASEAN
- Strong growth with JOEMs
Light Vehicle Production
30 2012* 2015*
25
20
ALV units ALV
15 32% 37% Others Million Others 63%
10 68%
5 |
|
0
* |
|
Combined market share for airbags and seatbelts |
Current CPV: $200 per vehicle
Source : IHS data
Page8 Copyright Autoliv Inc., All Rights Reserved
South America
- Stable market shares with increasing CPV
Light Vehicle Production
30 2012* 2015*
25
20 units ALV ALV
15 32% 33% Million Others Others
10 68% 67%
5 |
|
0
* |
|
Combined market share for airbags and seatbelts |
Current CPV: $140 per vehicle
Source : IHS data
Page9 Copyright Autoliv Inc., All Rights Reserved
South America
- Brazil: Frontal airbags mandated by law from 2014
Light Vehicle Production
30 Safety Content & Safety Market Brazil
25 180 800 160 700
20 140 600 units car 120 500
15
100
USD/ 400
Million 10 80 MUSD
CPV 60 300 200
5 |
|
40 |
20 100
0
0 0 2012 2015
Supply Value Market Value
Current CPV: $140 per vehicle
Source : IHS data
Page10 Copyright Autoliv Inc., All Rights Reserved
China
- Increasing market share, CPV & LVP
Light Vehicle Production
30 2012* 2015*
25
20 units ALV ALV
15 35% 37% Million Others Others
10 63% 65%
5 |
|
0
* |
|
Combined market share for airbags and seatbelts |
Current CPV: $210 per vehicle
Source : IHS data
Page11 Copyright Autoliv Inc., All Rights Reserved
China
- Increasing market share, CPV & LVP
Light Vehicle Production
30 2012* 2015*
25
Chinese Chinese
20 15% 13% units ALV ALV
15 35% 37%
Million Others
10 Others 50% 50%
5 |
|
0
* |
|
Combined market share for airbags and seatbelts |
Current CPV: $210 per vehicle
Source : IHS data
Page12 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Strong growth driver for vehicle safety
India
Only
Page13 Copyright Autoliv Inc., All Rights Reserved
Investments for Growth
- Recent announcements
Propellant Campus for Asia
_ Global capacity + 25%
_ For increasing demand
_ Closer to demand & cost optimization
_ $33 million
Seat Belt Webbing _ SOP 2014
_ Global capacity +20%
_ For increasing demand
_ Closer to demand & cost optimization
_ $10 Million Steering Wheel Plant for
_ SOP 2011 Asia 3rd phase
_ Adding 25% to Autoliv Asias existing capacity
_ For increasing demand
_ $8 million
_ SOP 2014
Airbag Plant Tech Center Expansion
_ Asian capacity +10% _ New crash test track
_ For increasing demand _ Passive & active safety capabilities
_ $3 million _ + 430 engineers
_SOP 2013 _ $8 million
_ SOP 2013-2014
Seat Belt Plant
_ For booked business
_ Doubles local sales to $25 million
_ $3 million
_ SOP 2012
Page14 Copyright Autoliv Inc., All Rights Reserved
Conclusions Growth Markets 2012-15
- Rapid sales growth at least in line with the growth markets
30 Market Share Growth Markets
40%
25
Growth Markets 35% excl. China CAGR
20 30%
11%
China GAGR 14% 25%
(Billions) 15
20% $
US 10 15%
5 |
|
10% 5% |
0 0%
2012 2015 2009 2010 2011 2012
Page15 Copyright Autoliv Inc., All Rights Reserved
Conclusion:
- Better Balanced Sales Mix Globally
100%
90%
80% Asian OEMs
70%
60%
Other
50% Chinese OEMs 40% Korean OEMs Japanese OEMs
30%
European Volume
20%
European Premium
10%
D3
0%
2012 2015
Page16 Copyright Autoliv Inc., All Rights Reserved
Thank you!
AutolivSafety Systems
Active Autoliv
Safety
Every year, Autolivs products save over 25,000 lives
Passive
Safety
Page17 Copyright Autoliv Inc., All Rights Reserved
The Next Decade of Innovations
Capital Market Day Vårgårda, May 14, 2013
Driven for Life. Johan Löfvenholm
V.P. Engineering
Copyright Autoliv Inc., All Rights Reserved
Safe Harbor Statement *
This presentation 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. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. The outcome of these forward-looking statements could differ materially from those stated for a variety of reasons, including without limitation, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
(*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com
Page2 Copyright Autoliv Inc., All Rights Reserved
Is our RD&E paying off?
US$ (millions) %
10 600
8 |
|
500 |
400 6
300
4 |
|
200 |
100 2
0 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
RD&E expenses net Customer funded
Page3 Copyright Autoliv Inc., All Rights Reserved
Is our RD&E paying off?
- New Products and Patents
Safety Patents First Filings 2010 2013 Bag-in-belt
2012 Pedestrian airbag* / Dynamic Spot Light*/ Animal detection system*
GM 2011 Camera-based Advanced Driver Assistance System
6% AUTOLIV 2010 Locking tongue*
5%
2008 Integrated safety electronics* / Pedestrian detection system*
TOYOTA
2007 Multi-volume cushion airbag*
5%
2006 Safety Vent bag*
Bosch
5% 2005 Night vision system / Pedestrian protection hood* 2004 Fixed hub steering wheel*
TAKATA
2002 Anti-sliding bag* / Adaptive load limiter*
4%
Denso 1998 Side curtain airbag*/ Anti-whiplash seat*
Other
3% 1997 Side airbag for head protection*
53%
HONDA 1995 Knee airbag* / Seatbelt load limiter*
3%
1994 Side thorax bag*
FORD
3% 1992 Steering wheel with integrated sensor
HYUNDAI KIA
3% 1989 Seatbelt with buckle pretensioner* VW 1986 Belt grabber*
3%
Tokai Rika +TG DAIMLER SUZUKI 1980 Airbag production
3% 2% 2% 1956 Seatbelt production
*) Worlds first
Page4 Copyright Autoliv Inc., All Rights Reserved
Road Traffic Fatalities acc. to WHO
Total 2004 Total 2030
Leading Cause % Leading Cause %
1 |
|
Ischaemic heart disease 12.2 1 Ischaemic heart disease 12.2 |
2 |
|
Cerebrovascular disease 9.7 2 Cerebrovascular disease 9.7 |
3 |
|
Lower respiratory infections 7.0 3 Chronic obstructive pulmonary disease 7.0 |
4 |
|
Chronic obstructive pulmonary disease 5.1 4 Lower respiratory infections 5.1 |
5 |
|
Diarrhoeal diseases 3.6 2.4 million 5 Road traffic injuries 3.6 |
6 |
|
HIV/AIDS 3.5 6 Trachea, bronchus, lung cancers 3.5 |
7 |
|
Tuberculosis 2.5 7 Diabetes mellitus 2.5 |
8 |
|
Trachea, bronchus, lung cancers 2.3 8 Hypertensive heart disease 2.3 |
1.3 million 9 Road traffic injuries 2.2 9 Stomach cancer 2.2
10 HIV/AIDS 2.0
10 Prematurity and low birth weight 2.0
Source: World Health Statistics 2008
Page5 Copyright Autoliv Inc., All Rights Reserved
Our Vision
Human lives saved by our products
150 000 125 000 100 000
75 000
50 000
25 000
0
2012 Vision
additionally they prevent ten times as many severe injuries
Page6 Copyright Autoliv Inc., All Rights Reserved
Just How Important is Safety
- North America Consumers Attitude & Perception study
February 2013 Frost & Sullivan Report
Page7 Copyright Autoliv Inc., All Rights Reserved
R,D&E Rational
_ Safety content per vehicle
Consumer Demand
New Ratings & Regulations
_ ALVs market share
_ Reduce costs
Page8 Copyright Autoliv Inc., All Rights Reserved
Reduce Costs
- example of redesign to save costs and weight
Weight: 3.3 kg
-30%
Weight: 2.3 kg
-26%
Weight: 1.7 kg
Page9 Copyright Autoliv Inc., All Rights Reserved
Trends & NeedsAutomotive Safety
_ Safety Ratings & Regulations
- Safer transportation
_ Environment and Society
- Shifting mobility needs
_ Growth Markets
- Focus increases
Page10 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Strong growth driver for vehicle safety
Page11 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Euro NCAP in migration towards Active Safety and Adaptivety
_ 2014
_ Active Safety weighting increases from 10% to 20%
_ Active Safety required to achieve 5 Star
_ 2015
_ Revision of passive safety side impact test
_ IC coverage will be evaluated
_ New deformable barrier
_ Revised pole test at 75° and 32 km/h
_ Revision of passive safety front impact test
_ 50th% male driver and passenger in 64 km/h
_ Intention to introduce child dummies in the backseat on booster & restrained by the adult seat belt.
_ New test at 50 km/h with small female driver and passenger .
_ 2017
_ Further increases of Active Safety Weight
_ Active Safety required to achieve 4 Star
Page12 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- US NCAP in migration towards Active Safety and Adaptivety
_ 2013 IIHS
_ Add additional Small overlap crash rating
_ NHTSA request for comments
_ Active Safety Areas Under Consideration
_ Crash Avoidance and Post-Crash Technology Areas Under Consideration
_ Features: Blind Spot Detection, Advanced Lighting, Lane Departure Prevention, Crash Imminent Braking, Dynamic Brake Support, Automatic Pedestrian Detection and Braking (Frontal & Rearward)
_ Passive Safety Areas Under Consideration
_ Improved Rating of Rear Seat Safety
_ Rating of Safety for Older Occupants
_ Rating of Pedestrian Protection
_ Improved Test Dummies and Injury Criteria
_ New Test Protocols for Electric Vehicles
Page13 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Rear Seat Safety
New smart retractor: Bag-in-Belt:
_ For all occupants (adaptivity) _ A combination of a seatbelt and an airbag
_ Fully mechanical solution to reduce _ Distributes the crash force over a three time system cost larger surface
Page14 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Pedestrian Airbag
Page15 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Pedestrian Airbag
Page16 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Knee airbags to prevent long-term disabling injuries
Installation Rates
50% 40% 30% 20% 10%
0%
2012 2015 2017
Europe North America
Page17 Copyright Autoliv Inc., All Rights Reserved
Rating and Regulations
- Small Overlap a quarter of all fatalities in frontal crashes
Oblique IC Concept Test by IIHS
Car to Car at 64 km/h
Page18 Copyright Autoliv Inc., All Rights Reserved
Growth Markets
- Products developed directly for Growth Markets
_ First Seatbelt to be developed in China and India
_ Component design to take advantage of Low Labor Country (LLC) sourcing
_ Industrialization for LLC production
Page19 Copyright Autoliv Inc., All Rights Reserved
Environment and Society
Electrical Cars create new challenges New Green Inflator Familly
Old AGP-1
_ Example Battery Disconnect switch
Benefits
_ No harmful waste products only water vapor and argon gas
_ Recyclable components
_ Weight and cost reduction ~30%
Page20 Copyright Autoliv Inc., All Rights Reserved
Addressing the Trends into the Next Decade
Addressed by ALV
_ Safety Ratings & Regulations
- Safer transportation
_ Environment and Society
- Shifting mobility needs
_ Growth Markets
- Focus increases
We will continue to deliver Worlds-first safety products to support sales to outperform our market
Page21 Copyright Autoliv Inc., All Rights Reserved
Is our RD&E paying off?
- growing market shares in a growing market
Global Market Shares Market by product
50% 30
40% 25
20
30% (Billions) $ 15
20% US
10
10%
5 |
|
0%
Total Frontal Side ECU Seatbelts Steering
Restraints Airbags Airbags Wheels 0
2009 2012 2012 2015
Page22 Copyright Autoliv Inc., All Rights Reserved
Thank you!
AutolivSafety Systems
Active Autoliv
Safety
Every year, Autolivs products save over 25,000 lives
Passive
Safety
Page23 Copyright Autoliv Inc., All Rights Reserved
Capturing the Lead in Integrated Safety
Capital Market Day Vårgårda, May 14, 2013
Driven for Life. Steve Rodé
President Autoliv
Copyright Autoliv Inc., All Rights Reserved Electronics
Safe Harbor Statement *
This presentation 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. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. The outcome of these forward-looking statements could differ materially from those stated for a variety of reasons, including without limitation, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities; dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
(*) Non-US GAAP reconciliations are disclosed in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com
Page2 Copyright Autoliv Inc., All Rights Reserved
Press Release
_ Stereo Vision Cameras For Premium OEM
_ Launch 2015
_ Possible applications:
Autonomous Emergency Braking
Intelligent Speed Assist
Pedestrian Detection
Light Source Recognition
Lane and Road Departure Warning
Adaptive Cruise Control
Queue Assist
Road Bump Assist
Page3 Copyright Autoliv Inc., All Rights Reserved
Market Forecast
40
35
Potential Market
30 My topic
CAGR 5%
25
(Billions) 20
$ Current Market
UD 15 10
5 |
|
0
2012 2015 2017
Passive Safety Developed Markets Passive Safety Growth Markets Active Safety
Potential market: Stability Control and Rear/Surround View Systems
Page4 Copyright Autoliv Inc., All Rights Reserved
Active Safety Sensors Market
Sensors Market by Technology 2012 Estimated Market Shares
2500
2000
Other #2 (Millions) 1500 Night Vision
$ Autoliv
Radar US 1000 Vision 500
0
2012 2015
Page5 Copyright Autoliv Inc., All Rights Reserved
Estimated Effect of New EuroNCAP
On 5 Star Vehicles US$ On Total European Market
US$ (millions)
160 1 000
800 120
600 80 400
40
200
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016
Page6 Copyright Autoliv Inc., All Rights Reserved
What is Integrated Safety?
POINT OF NO RETURN
(One third of
Assistance a second)
Active Safety
Passive Safety
INTEGRATED SAFETY
Page7 Copyright Autoliv Inc., All Rights Reserved
How ALV will Capture the Lead in Integrated Safety?
The Right People Speed to Market The Right Partners
The Right Products
Leverage Our Passive Safety Leadership
Page8 Copyright Autoliv Inc., All Rights Reserved
Leverage Our Passive Safety Leadership
Vision Brake Control
Active and Passive Safety
Radar
as One System
Prevention & Protection Passive Safety
Control
Night Vision
Page9 Copyright Autoliv Inc., All Rights Reserved
Leverage Our Passive Safety Leadership
- Example Electronic Control Units (ECU)
Restraint Controls Volumes 2008-2015 up 230%
Brake
20
ECU
ESC 15 IMU
Restraint
Control Units
+ IMU
Million 10 5
0
2008 2010 2012 F2015
IMU Integration 2008
Page10 Copyright Autoliv Inc., All Rights Reserved
Leverage Our Passive Safety Leadership
- Example Electronic Control Units (ECU)
Brake Brake OEM ECU ECU
ESC IMU
Restraint
Control Restraint/
+ IMU Chassis Controller
IMU Integration 2008 Brake Controls Integration 2014
Page11 Copyright Autoliv Inc., All Rights Reserved
Leverage Our Passive Safety Leadership
- Example Electronic Control Units (ECU)
Brake Brake OEM ECU ECU
ESC IMU
Restraint
Control Restraint/
+ IMU Chassis Controller
_ Electronic Stability Control (ESC)
_ Anti-Lock Brakes (ABS)
_ Traction Control
_ Autonomous Emergency Braking (AEB)
IMU Integration 2008 Brake Controls Integration 2014
Page12 Copyright Autoliv Inc., All Rights Reserved
Leverage Our Passive Safety Leadership
- Example Electronic Control Units (ECU)
Radar
Steering ECU
Brake Brake OEM Brake Suspension ECU ECU ECU ECU
Vision
ESC IMU
Safety/
Restraint Chassis Control Restraint/ Radar
+ IMU Chassis Controller Radar
Controller
GPS
Driveline ECU
Radar Radar
IMU Integration 2008 Brake Controls Integration 2014 Safety Domain Controler
Page13 Copyright Autoliv Inc., All Rights Reserved
The Right Products
- Active Safety Sensors
Radar Vision Infrared Sensing
_ Detects vehicles and objects _ Detects visible shapes, markings, objects _ Does not need visible light
_ Measures distances _ Reads lane markings, light sources, traffic signs _ Classifies pedestrians and animals
_ Is not sensitive to light conditions _ Classifies objects as vehicles and pedestrians
Goal: 24 hour Driver Assistance, Driver Protection, Road User Protection
Page14 Copyright Autoliv Inc., All Rights Reserved
The Right Products
- Active Safety Sensors
Supplier Vision Radar Night Vision
Mono Stereo 77 Radar 24 NB 25 UWB Far Near Radar Radar Infrared Infrared
Autoliv
Continental
Bosch Delphi Magna Valeo Denso Gentex Hella Calsonic TRW Takata
Page15 Copyright Autoliv Inc., All Rights Reserved
The Right Products
- Active Safety Sensors
Supplier Vision Radar Night Vision Potential Market
Mono Stereo 77 Radar 24 NB 25 UWB Far Near Rear View Surround Stability Radar Radar Infrared Infrared View Control
Autoliv 2014
Continental
Bosch
Delphi
Magna Valeo
Denso
Gentex
Hella Calsonic
TRW
Takata
Page16 Copyright Autoliv Inc., All Rights Reserved
The Right Products
- Integrated Safety
ACTIVE PASSIVE
SAFETY SAFETY
RADAR SAFETY DOMAIN CONTROLLER
Blind Spot, Rear Cross Traf PEDESTRIAN AIRBAG Collision Prevention, Adap Cruise Control
NIGHT VISION
KNEE AIRBAG Automatic Animal Detectio Dynamic Spot Light Sensor Fusion NIR / FIR
VISION
BAG-IN-BELT Collision Prevention Pedestrian Detection Traffic Signs, Lane & Light Road Surface DUAL PRETENSIONING ACTIVE SEATBELT
Page17
The Right Partners
- Our Development Partners
Vision Systems Radar Night Vision
Page18 Copyright Autoliv Inc., All Rights Reserved
The Right Partners
- Our Current Customers
North America Europe Asia
Page19 Copyright Autoliv Inc., All Rights Reserved
Co-development
- Mercedes Collision Prevention Assist (CPA)
Page20 Copyright Autoliv Inc., All Rights Reserved
The Right People in the Right Places
- Global footprint
Sweden USA
Motala/Linköping Lowell
Canada
Markham
Great Britain Korea USA Coventry Seoul Goleta Japan France Hiroshima USA Cergy/Rouen Yokohama
China
Detroit Romania
Shanghai Timisoara
India Germany
Bangalore Cologne Dachau Development Holzgerlingen Production Schweinfurt Berlin (Aglaia)
Customer support center
Ottobrun (Astyx)
Page21 Copyright Autoliv Inc., All Rights Reserved
Speed to Market
- Active Safety is a dynamic market. Speed is a competitive advantage
Need Technology Needed Start of Production Award Development
Frequency Regulation 24GHz NB Radar 2011 2012
Asia
Customer Demand 77GHz Multi-Mode Radar 2011 2012 Vision System Capability Autoliv Vision Algorithms 2010 2012 Brake Control Capability Brake Control Algorithms 2010 2012
Page22 Copyright Autoliv Inc., All Rights Reserved
Active Safetya Strategic Journey
- On track to reach 500 MUSD sales target
Launches Night Vision/ Radar/ Mono Vision/ Brake Stereo BMW Mercedes BMW Control Vision
1000
900
Potential
800
Acquisitions 700 Astyx 600 Radar
Millions Visteon
Acquisitions 500 Visteon RC Tyco Radar $ Radar Hella
US 400 Vision 500 MUSD 300 Organic sales
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 F2014 F2015
Page23 Copyright Autoliv Inc., All Rights Reserved
AutolivSafety Systems
Active Autoliv
Safety
Every year, Autolivs products save over 25,000 lives
Passive
Safety
Page24 Copyright Autoliv Inc., All Rights Reserved
Exhibit 99.3
P R E S S R E L E A S E
Autoliv Introduces New Safety Cameras
- With Eight Safety and Driver Assist Applications
(Stockholm, May 14, 2013) Autoliv Inc. (NYSE: ALV and SSE: ALIV sdb) the worldwide leader in automotive safety systems has developed a Stereo Vision Sensing (SVS) system that will make driving safer and more comfortable.
The new Autoliv system will help vehicle manufacturers meet the new test criteria that EuroNCAP recently announced to promote Autonomous Emergency Braking, Intelligent Speed Assist, Lane Departure Assists and Pedestrian Protection. Autolivs new active safety system can also be used for four additional applications.
Autoliv start deliveries of the system in 2015 to European premium vehicle model.
Currently, an increasing number of vehicles have Mono Vision Systems (MVS). These systems have one camera which is used for such functions as Speed Sign Recognition, Lane Departure Warnings, and even Autonomous Emergency Braking.
By adding another camera in tandem with the first camera, the system can provide a three dimensional view of the area in front of a vehicle. As a result, the Autoliv Stereo Vision System can ¬ in just one single measurement cycle calculate the distance to different objects in front of the vehicle and determine the shape and the size of them. Autolivs Stereo Vision System will calculate the direction and speed of objects moving closer to the vehicle. As a result, Autolivs Stereo Vision System is able to predict if, for instance, a pedestrian is at risk of being hit by the vehicle and warn the driver or brake the car.
The Autolivs Stereo Vision System has a field of view of 50 degrees and can recognize objects within 120 meters. To provide the best view, the stereo vision cameras are mounted high on the front windshield behind the rear view mirror.
Autolivs new system will be used for Autonomously Emergency Braking, Intelligent Speed Assist, Road/Lane departure warning and Pedestrian Protection, which is proposed to be included in EurNCAPs star rating of new vehicles from 2017. Additionally, the new vision system can do Adaptive Cruise Control, Queue Assist, Light Source Recognition (to automatically control the headlights to avoid blinding oncoming traffic) and Road Surface Monitoring (to automatically adjust the suspension ahead of hitting pot-holes or other bumps).
Inquiries:
Jan Carlson, President & CEO, Autoliv Inc. | Tel. +46 8 587 20600 | |
Steve Rode, President Autoliv Electronics | Tel. +1 248 223 8083 |
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
P R E S S R E L E A S E
About Autoliv
Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with more than 50,000 employees in 28 vehicle-producing countries. In addition, the Company has technical centers in eleven countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2012 amounted US $8.3 billion. The Companys shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.
Safe Harbor
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-looking 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 statements, including without limitation, managements examination of historical operating trends and data, are based upon our current expectations, various assumptions and 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. 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, changes in and the successful execution of our capacity alignment, restructuring and cost reduction initiatives discussed herein and the market reaction thereto; changes in general industry or regional market conditions; 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 or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; fluctuation in vehicle production schedules; component shortages; 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 negotiations with customers, our ability to be awarded new business; product liability, warranty and recall claims and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; negative impacts of antitrust investigations or other governmental investigations and associated litigation (including securities litigation) relating to the conduct of our business; tax assessments by governmental authorities dependence on key personnel; legislative or regulatory changes limiting our business; political conditions; dependence on customers and suppliers; and other risks and uncertainties identified under the headings Risk Factors and Managements 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. The Company undertakes no obligation to update publicly or revise any forward-looking statements in light of new information or future events. 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 any such statement.
Autoliv Inc. | Autoliv Americas | |
Vasagatan 11, 7th floor | 26545 American Drive | |
P. O. Box 703 81, SE-107 24 Stockholm, Sweden | Southfield, MI 48034, USA | |
Tel +46 (8) 58 72 06 27, Mobile +46 709 57 81 27 | Tel +1 (248) 223 8107, Mobile +1 (248) 794 4537 | |
e-mail: thomas.jonsson@autoliv.com | e-mail: ray.pekar@autoliv.com |
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