Financial highlights Q3 2024 Form 8 K

Financial highlights Q3 2024

$2,555 million net sales

1.6%net sales decrease

0.8% organic sales decline*

8.9%operating margin

9.3%adjusted operating margin*

$1.74 dilutedEPS, 11% increase

$1.84 adjusted diluted EPS*, 11% increase

Full year 2024 guidance

Around 1%organic sales growth

Around 1% negativeFX effect on net sales

Around 9.5-10.0%adjusted operating margin

Around $1.1 billionoperating cash flow

*For non-U.S. GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q3 2024

Q3 2023

Change

9M 2024

9M 2023

Change

Net sales

$2,555

$2,596

(1.6)%

$7,774

$7,724

0.7%

Operating income

226

232

(2.4)%

626

453

38%

Adjusted operating income1)

237

243

(2.3)%

657

586

12%

Operating margin

8.9%

8.9%

(0.1)pp

8.1%

5.9%

2.2pp

Adjusted operating margin1)

9.3%

9.4%

(0.1)pp

8.5%

7.6%

0.9pp

Earnings per share - diluted

1.74

1.57

11%

4.98

3.04

64%

Adjusted earnings per share - diluted1)

1.84

1.66

11%

5.30

4.48

18%

Operating cash flow

177

202

(12)%

639

535

19%

Return on capital employed2)

22.9%

24.2%

(1.3)pp

21.2%

15.6%

5.6pp

Adjusted return on capital employed1,2)

23.9%

24.5%

(0.7)pp

22.1%

19.8%

2.3pp

1) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Non-U.S. GAAP measure, see reconciliation table.
2) Annualized operating income and income from equity method investments, relative to average capital employed.

Comments from Mikael Bratt, President & CEO

Light vehicle production was weak in the third quarter, declining by close to 5% globally. This was driven by a combination of inventory reductions, especially in the Americas and a high comparison base, especially in China. In this tough environment, Autoliv managed to outgrow LVP by 4pp, enabling almost unchanged

Based on sales trends and order intake in recent years, we expect further market share gains with domestic Chinese OEMs in the coming years.

Excess inflation compensation negotiations with our customers have developed in line with our expectations with a few negotiations still outstanding.

With the seasonally strong fourth quarter remaining of the year, we reaffirm our guidance of around 9.5-10.0% adjusted operating margin for 2024. We expect to be at the low end of this range, as we now expect full year 2024 organic growth to be 1% instead of previously expected 2% due to the unfavorable market mix development.

Our operating cash flow is on track towards the full year guidance of $1.1 billion and our balance sheet remains strong with a debt leverage of 1.4x, which supports our continued commitment to a high level of shareholder returns and our financial targets.

sales and operating income. This is despite a$14 million cost item related to a supplier settlement.

We were able to achieve these results mainly due to our cost control, including a continued reduction of our indirect workforce. We accelerated our efficiency improvements, contributing to a reduction of direct headcount by 3,100 compared to a year earlier, which is a reduction of 6%.

I am pleased that we outgrew LVP on a global basis following substantial outperformance in Europe and Asia excl. China. Our sales underperformed LVP in China due to a substantial negative market mix, however, our position with Chinese OEMs continues to improve.

Full Year Indication

Full Year Indication

Organic sales growth

Around 1%

Tax rate2)

Around 28%

FX impact on net sales

Around 1% negative

Operating cash flow3)

Around $1.1 billion

Adjusted operating margin1)

Around 9.5-10.0%

Capex, 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.

Net Sales Development by region

Operating and adjusted operating income and margins

Capex and D&A

Operating Cash Flow

Return on Capital Employed

Cash Conversion*

Adj. operating income and margin*: Operating income adjusted for capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Capacity alignments include non-recurring costs related to our structural efficiency and business cycle management programs.

Capex, net: Capital Expenditure, net.

D&A: Depreciation and Amortization.

Cash conversion*: Free cash flow defined as operating cash flow less capital expenditure, net.

Consolidated sales

Third quarter

Reported change

Currency

Organic

(Dollars in millions)

2024

2023

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,736

$1,761

(1.4)%

(0.7)%

(0.7)%

Seatbelt Products and Other2)

819

835

(2.0)%

(1.0)%

(1.0)%

Total

$2,555

$2,596

(1.6)%

(0.8)%

(0.8)%

Americas

$851

$918

(7.2)%

(3.5)%

(3.8)%

Europe

700

646

8.4%

2.2%

6.3%

China

495

538

(8.1)%

1.3%

(9.3)%

Asia excl. China

508

495

2.7%

(2.1)%

4.8%

Total

$2,555

$2,596

(1.6)%

(0.8)%

(0.8)%

1) Effects from currency translations. 2) Including Corporate sales.

Sales by product - Airbags, Steering Wheels and Other

Sales declined organically* by 0.7% in the quarter. The largest contributor to the decrease was passenger airbags, inflatable curtains, knee airbags and driver airbags, partly offset by growth in steering wheels, inflators and center airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other declined organically* by 1.0% in the quarter. Sales declined organically in China, while it increased in Asia excluding China and the Americas with Europe being virtually unchanged.

Sales by region

Our global organic sales* decreased by 0.8% compared to the global LVP decrease of 4.8% (according to S&P Global, October 2024). The outperformance was mainly driven by new product launches and higher prices, partly offset by negative customer and model mix. Our organic sales growth outperformed LVP growth by 12pp in Europe and by 10pp in Asia excluding China while we underperformed by 0.6pp

in the Americas and by 6.4pp in China. LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. LVP for global OEMs declined by 15% while it increased by 8.5% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 18% in the quarter following a strong order intake with domestic OEMs in recent years. In India, we grew organically by around 17%, while LVP was close to unchanged.

Q3 2024 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

(3.8)%

6.3%

(9.3)%

4.8%

(0.8)%

Main growth drivers

GM, Renault, VW

Mercedes, Renault, Ford

Geely, Chery, BMW

Hyundai, Suzuki, Tata

Geely, Mercedes, Renault

Main decline drivers

Stellantis, EV OEM, Nissan

Stellantis, Volvo, Fisker

Lixiang Auto, VW, Honda

Nissan, Mazda

Stellantis, EV OEM, GM

Q3 2024

Americas

Europe

China

Asia excl. China

Global

LVP (Oct 2024)

(3.2)%

(6.1)%

(2.9)%

(5.3)%

(4.8)%

LVP (Jul 2024)

(2.5)%

(5.4)%

(7.0)%

(3.3)%

(5.5)%

Consolidated sales

First 9 months

Reported change

Currency

Organic

(Dollars in millions)

2024

2023

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$5,264

$5,191

1.4%

(1.0)%

2.4%

Seatbelt Products and Other2)

2,511

2,533

(0.9)%

(1.2)%

0.3%

Total

$7,774

$7,724

0.7%

(1.1)%

1.7%

Americas

$2,637

$2,665

(1.0)%

(0.2)%

(0.8)%

Europe

2,231

2,122

5.2%

1.4%

3.7%

China

1,423

1,488

(4.4)%

(2.0)%

(2.3)%

Asia excl. China

1,483

1,449

2.3%

(5.3)%

7.7%

Total

$7,774

$7,724

0.7%

(1.1)%

1.7%

1) Effects from currency translations. 2) Including Corporate sales.

Sales by product - Airbags, Steering Wheels and Other

Sales grew organically* by 2.4% in the period. The largest contributor to the increase was steering wheels, followed by center airbags, inflatable curtains, side airbags and inflators, partly offset by decreases for passenger airbags and knee airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 0.3% in the period. Sales increased organically in Asia excluding China, the Americas and Europe while it declined in China.

Sales by region

Our global organic sales* increased by 1.7% compared to the global LVP decrease of 1.8% (according to S&P Global, October 2024). The 3.5pp outperformance was mainly driven by new product launches and higher prices, partly offset by negative customer and model mix.

Our organic sales growth outperformed LVP growth by 12pp in Asia excluding China, by 7.3pp in Europe and by 0.8pp in the Americas, while it underperformed by 4.6pp in China. LVP growth in China was tilted to domestic OEMs with typically lower safety content. Domestic OEM LVP in China grew by 15% while LVP declined by 10% for global OEMs in the first nine months.

9M 2024 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

(0.8)%

3.7%

(2.3)%

7.7%

1.7%

Main growth drivers

VW, Toyota, Hyundai

Mercedes, Renault, BMW

Geely, BMW, Chery

Hyundai, Tata, Suzuki

Mercedes, Hyundai, Geely

Main decline drivers

Stellantis, EV OEM, Nissan

Stellantis, VW, Volvo

EV OEM, Honda, GM

Nissan, Renault

Stellantis, EV OEM, GM

First 9 months 2024

Americas

Europe

China

Asia excl. China

Global

LVP (Oct 2024)

(1.6)%

(3.6)%

2.3%

(4.8)%

(1.8)%

LVP (Jan 2024)

0.8%

(1.8)%

1.4%

(1.6)%

(0.4)%

Nio Onvo L60

BMX X3

Zeekr 7X

Nissan Patrol & Armada

Alfa Romeo Junior

Audi A6 e-tron

Changan Avatr 15

Audi A5

Tata Curvv

Ford Capri

Chery Luxeed R7

Mahindra Thar (ROXX)

Driver/Passenger Airbags

Seatbelts

Side Airbags

Head/Inflatable Curtain Airbags

Steering Wheel

Knee Airbag

Front Center Airbag

Bag-in-Belt

Pyrotechnical Safety Switch

Pedestrian Airbag

Hood Lifter

Available as EV/PHEV

Condensed income statement

Third quarter

First 9 months

(Dollars in millions, except per share data)

2024

2023

Change

2024

2023

Change

Net sales

$2,555

$2,596

(1.6)%

$7,774

$7,724

0.7%

Cost of sales

(2,095)

(2,131)

(1.7)%

(6,398)

(6,432)

(0.5)%

Gross profit

459

465

(1.3)%

1,377

1,291

6.6%

S,G&A

(129)

(119)

8.4%

(399)

(380)

4.9%

R,D&E, net

(96)

(107)

(10)%

(325)

(343)

(5.5)%

Other income (expense), net

(9)

(8)

11%

(27)

(115)

(76)%

Operating income

226

232

(2.4)%

626

453

38%

Adjusted operating income1)

237

243

(2.3)%

657

586

12%

Financial and non-operating items, net

(29)

(30)

(3.7)%

(73)

(60)

21%

Income before taxes

197

201

(2.2)%

554

393

41%

Income taxes

(58)

(67)

(13)%

(149)

(131)

14%

Net income

$139

$134

3.4%

$404

$262

55%

Earnings per share - diluted3)

$1.74

$1.57

11%

$4.98

$3.04

64%

Adjusted earnings per share - diluted1,3)

$1.84

$1.66

11%

$5.30

$4.48

18%

Gross margin

18.0%

17.9%

0.1pp

17.7%

16.7%

1.0pp

S,G&A, in relation to sales

(5.0)%

(4.6)%

(0.5)pp

(5.1)%

(4.9)%

(0.2)pp

R,D&E, net in relation to sales

(3.7)%

(4.1)%

0.4pp

(4.2)%

(4.4)%

0.3pp

Operating margin

8.9%

8.9%

(0.1)pp

8.1%

5.9%

2.2pp

Adjusted operating margin1)

9.3%

9.4%

(0.1)pp

8.5%

7.6%

0.9pp

Tax Rate

29.6%

33.4%

(3.8)pp

27.0%

33.4%

(6.4)pp

Other data

No. of shares at period-end in millions3)

78.8

84.1

(6.4)%

78.8

84.1

(6.4)%

Weighted average no. of shares in millions3)

79.2

84.9

(6.6)%

80.7

85.5

(5.6)%

Weighted average no. of shares in millions, diluted3)

79.3

85.0

(6.7)%

80.9

85.7

(5.6)%

1) Non-U.S. GAAP measure, excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. See reconciliation table. 2) Assuming dilution when applicable and net of treasury shares. 3) Net of treasury shares.

Third quarter 2024 development

Gross profit decreased by $6 million, and the gross margin increased by 0.1pp compared to the same quarter 2023. The gross profit decrease was primarily driven by a $14 million cost increase in direct material related to a settlement and to a lesser extent the lower net sales. This was partly offset by lower costs for mainly premium freight and labor, partly due to improved customer call-off accuracy.

S,G&A costs increased by $10 million compared to the prior year, mainly due to higher costs for personnel due to wage inflation while headcount was unchanged. Costs for digitalization, IT projects and licenses also increased, impacted by inflation. S,G&A costs in relation to sales increased from 4.6% to 5.0%.

R,D&E, net costs decreased by $11 million compared to the prior year, mainly due to $6 million in higher engineering income. The decrease was also supported to a smaller extent from several items, mainly positive FX translation effects, lower personnel costs and lower costs for samples and prototypes. R,D&E, net, in relation to sales decreased from 4.1% to 3.7%.

Other income (expense), net was close to unchanged at negative $9 million, compared to negative $8 million in the same period last year.

Operating income decreased by $6 million compared to the same period in 2023, due to the lower gross profit, higher S,G&A costs and other income (expenses) partly offset by lower costs for R,D&E, net, as outlined above.

Adjusted operating income* decreased by $6 million compared to the prior year, due to the lower gross profit, higher S,G&A costs and other income (expenses) partly offset by lower costs for R,D&E, net, as outlined above.

Financial and non-operating items, net, was negative $29 million compared to negative $30 million a year earlier.

Income before taxes decreased by $4 million compared to the prior year, mainly due to the lower operating income.

Tax rate was 29.6% compared to 33.4% in the same period last year. The lower tax rate was impacted by a favorable country mix compared to the same quarter last year. Discrete tax items, net, decreased the tax rate this quarter by 1.2pp. Discrete tax items, net, increased the tax rate by 0.2pp in the same period last year.

Earnings per share, diluted increased by $0.17 compared to a year earlier. The main drivers were $0.12 from lower number of shares and $0.10 from lower taxes, partly offset by $0.05 from lower operating income.

First nine months 2024 development

Gross profit increased by $85 million, and the gross margin increased by 1.0pp compared to the same period in 2023. More than half of the improvement in gross profit was driven by the increase in net sales, but lower costs for labor and premium freight also contributed to the improvement following more stable customer call-offs and headcount reductions.

S,G&A costs increased by $18 million compared to the prior year. The main reason for the cost increase was higher costs for personnel, due to the high wage inflation. S,G&A costs in relation to sales increased from 4.9% to 5.1%.

R,D&E, net costs decreased by $19 million compared to the prior year. Higher engineering income explain almost the entire improvement. R,D&E, net, in relation to sales decreased from 4.4% to 4.2%.

Other income (expense), net was negative $27 million compared to negative $115 million in the same period last year, almost entirely due to lower capacity alignment accruals compared to the same period previous year.

Operating income increased by $173 million compared to the same period in 2023, mainly due to the increase in gross profit, and lower capacity alignment accruals, as outlined above.

Adjusted operating income* increased by $71 million compared to the prior year, mainly due to higher gross profit and lower R,D&E, net partly offset by higher costs for S,G&A, as outlined above.

Financial and non-operating items, net, was negative $73 million compared to negative $60 million a year earlier. The change was mainly due to increased interest expense as the result of higher debt and higher interest rates.

Income before taxes increased by $161 million compared to the prior year, mainly due to the increase in operating income and financial and non-operating items, net, as outlined above.

Tax rate was 27.0% compared to 33.4% in the same period last year. The lower tax rate was impacted by favorable country mix compared to the prior year. Discrete tax items, net, decreased the tax rate this period by 2.8pp. Discrete tax items, net, decreased the tax rate by 0.6pp in the same period last year.

Earnings per share, diluted increased by $1.94 compared to a year earlier. The main drivers were $1.67 from higher operating income, $0.29 from lower number of shares and $0.09 from taxes partly offset by $0.11 from higher financial and non-operating items, net.

Selected Cash Flow items

Third quarter

First 9 months

(Dollars in millions)

2024

2023

Change

2024

2023

Change

Net income

$139

$134

3.4%

$404

$262

55%

Changes in operating working capital

(68)

(36)

88%

(54)

(8)

593%

Depreciation and amortization

97

95

1.8%

289

281

2.7%

Other, net

10

9

14%

1

1

6%

Operating cash flow

177

202

(12)%

639

535

19%

Capital expenditure, net

(145)

(151)

(4.1)%

(431)

(419)

3%

Free cash flow1)

$32

$50

(36)%

$208

$117

79%

Cash conversion2)

23%

37%

(14)pp

52%

45%

7pp

Shareholder returns

- Dividends paid

(54)

(56)

(3.8)%

(164)

(169)

(2.8)%

- Share repurchases

(130)

(120)

8.2%

(450)

(202)

123%

Cash dividend paid per share

$(0.68)

$(0.66)

2.7%

$(2.04)

$(1.98)

2.7%

Capital expenditures, net in relation to sales

5.7%

5.8%

(0.1)pp

5.5%

5.4%

0.1pp

1) Operating cash flow less Capital expenditure, net. Non-U.S. GAAP measure. See enclosed reconciliation table. 2) Free cash flow relative to Net income. Non-U.S. GAAP measure. See reconciliation table.

Selected Balance Sheet items

Third quarter

(Dollars in millions)

2024

2023

Change

Trade working capital1)

$1,307

$1,303

0.3%

Trade working capital in relation to sales2)

12.8%

12.5%

0.2pp

- Receivables outstanding in relation to sales3)

21.5%

21.0%

0.5pp

- Inventory outstanding in relation to sales4)

9.8%

9.5%

0.3pp

- Payables outstanding in relation to sales5)

18.4%

17.9%

0.5pp

Cash & cash equivalents

415

475

(13)%

Gross Debt6)

2,210

1,867

18%

Net Debt7)

1,787

1,375

30%

Capital employed8)

4,085

3,861

5.8%

Return on capital employed9)

22.9%

24.2%

(1.3)pp

Total equity

2,298

2,486

(7.6)%

Return on total equity10)

24.1%

21.3%

2.8pp

Leverage ratio11)

1.4

1.3

0.1pp

1) Outstanding receivables and outstanding inventory less outstanding payables. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. Non-U.S. GAAP measure, see reconciliation table. 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) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. Non-U.S. GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to average capital employed. 10) Annualized net income relative to average total equity. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table.

Third quarter 2024 development

Changes in operating working capital impacted operating cash flow by $68 million negative compared to an impact of $36 million negative in the same period the prior year. Almost all of the $68 million impact in the quarter came from increases in inventories due to high customer call off volatility at the end of the quarter and higher receivables, mainly as a result of seasonally higher sales in September.

Other, net was $10 million positive compared to $9 million positive in the same period the prior year.

Operating cash flow decreased by $25 million to $177 million compared to the same period last year, mainly due to that operating working capital increased by $34 million more than it increased the same period last year, as outlined above.

Capital expenditure, net decreased by $6 million compared to the same period the previous year. The level of Capital expenditure, net, in relation to sales was relatively stable at 5.7% versus 5.8% a year earlier. The level is currently above what we expect for the longer term, due to investments in capacity, mainly in Asia, and in footprint optimization, mainly in Europe and the Americas.

Free cash flow* was positive $32 million compared to positive $50 million in the same period the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net.

Cash conversion* defined as free cash flow* in relation to net income, was 23% in the quarter.

Trade working capital* increased by $4 million compared to the same period last year, where the main drivers were $13 million in higher accounts receivables, $24 million in higher accounts payable and $15 million in higher inventories.In relation to sales, trade working capital increased from 12.5% to 12.8%.

Cash and cash equivalents as of September 30, 2024 was around $0.4 billion, while committed, unused loan facilities, was around $1.2 billion.

Net debt* was $1,787 million as of September 30, 2024, which was $412 million higher than a year earlier.

Total equity as of September 30, 2024, decreased by $188 million compared to September 30, 2023. This was mainly due to $221 million in dividend payments and stock repurchases including taxes of $608 million, partly offset by $632 million from net income.

Leverage ratio*: On September 30, 2024, the Company had a leverage ratio of 1.4x compared to 1.3x on September 30, 2023, as the 12 months trailing adjusted EBITDA* increased by around $187 million while the net debt* per the policy increased by around $407 million.

First nine months 2024 development

Operating cash flow increased by $104 million compared to the same period last year, to $639 million, mainly due to higher net income, partly offset by more negative effects from increased operating working capital.

Capital expenditure, net increased by $12 million.Capital expenditure, net in relation to sales was relatively stable at 5.5% versus 5.4% the prior year period. The level is currently slightly above what we expect for the longer term, due to investments in capacity, mainly in Asia, and in footprint optimization, mainly in Europe and the Americas.

Free cash flow* was positive $208 million, compared to positive $117 million in the same period last year. The improvement was due to the higher operating cash flow partly offset by higher capital expenditure, net.

Cash conversion* defined as free cash flow* in relation to net income, was 52% in the period.

Sep 30

Jun 30

Sep 30

2024

2024

2023

Headcount

67,200

68,700

71,200

Whereof: Direct headcount in manufacturing

49,800

51,100

52,900

Indirect headcount

17,400

17,500

18,200

Temporary personnel

9%

9%

11%

As of September 30, 2024, total headcount (Full Time Equivalent) decreased by around 4,000, or by 5.6%, compared to a year earlier, despite almost unchanged sales. The indirect workforce decreased by around 800, or by 4.4%,mainly reflecting our structural reduction initiatives.The direct workforce decreased by approximately 3,100, or by 5.9%, partly due to that an improvement in customer call-off accuracy in the third quarter has enabled us to accelerate operating efficiency improvements.

Compared to June 30, 2024, total headcount (FTE) decreased by around 1,500, or by 2.2%. Indirect headcount decreased by around 100, or by 0.6%, while direct headcount decreased by approximately 1,300, or by 2.5%.

Next Report

Autoliv intends to publish the quarterly earnings report for the fourth quarter of 2024 on Friday, January 31, 2025.

Footnotes

*Non-U.S. GAAP measure, see enclosed reconciliation tables.

Inquiries: Investors and Analysts

Anders Trapp

Vice President Investor Relations

Tel +46 (0)8 5872 0671

Henrik Kaar

Director Investor Relations

Tel +46 (0)8 5872 0614

Inquiries: Media

Gabriella Etemad

Senior Vice President Communications

Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on October 18, 2024.

Definitions and SEC Filings

Please refer to www.autoliv.com or to our Annual Report for definitions of terms used in this report. Autoliv's annual report to stockholders, annual report on Form 10-K, quarterly reports on Form 10Q, proxy statements, management certifications, press releases, current reports on Form 8-K and other documents filed with the SEC can be obtained free of charge from Autoliv at the Company's address. These documents are also available at the SEC's website www.sec.gov and at Autoliv's corporate website www.autoliv.com.

This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January, July and October 2024. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.

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 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 the 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 medium term financial targets; and other risks and uncertainties identified under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. 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.

Third quarter

First 9 months

Latest 12

Full Year

(Dollars in millions, except per share data, unaudited)

2024

2023

2024

2023

months

2023

Airbags, Steering Wheels and Other1)

$1,736

$1,761

$5,264

$5,191

$7,128

$7,055

Seatbelt products and Other1)

819

835

2,511

2,533

3,398

3,420

Total net sales

2,555

2,596

7,774

7,724

10,526

10,475

Cost of sales

(2,095)

(2,131)

(6,398)

(6,432)

(8,619)

(8,654)

Gross profit

459

465

1,377

1,291

1,907

1,822

Selling, general & administrative expenses

(129)

(119)

(399)

(380)

(519)

(500)

Research, development & engineering expenses, net

(96)

(107)

(325)

(343)

(406)

(425)

Other income (expense), net

(9)

(8)

(27)

(115)

(119)

(207)

Operating income

226

232

626

453

863

690

Income from equity method investments

2

1

5

4

6

5

Interest income

3

3

10

10

13

13

Interest expense

(27)

(24)

(81)

(68)

(105)

(93)

Other non-operating items, net

(7)

(11)

(7)

(6)

(4)

(3)

Income before income taxes

197

201

554

393

773

612

Income taxes

(58)

(67)

(149)

(131)

(141)

(123)

Net income

139

134

404

262

632

489

Less: Net income attributable to non-controlling interest

0

1

1

1

2

1

Net income attributable to controlling interest

$138

$134

$403

$261

$630

$488

Earnings per share - diluted

$1.74

$1.57

$4.98

$3.04

$7.70

$5.72

1) Including Corporate sales.

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions, unaudited)

2024

2024

2024

2023

2023

Assets

Cash & cash equivalents

$415

$408

$569

$498

$475

Receivables, net

2,192

2,090

2,194

2,198

2,179

Inventories, net

997

936

997

1,012

982

Prepaid expenses

172

193

180

173

180

Other current assets

90

76

71

93

63

Total current assets

3,865

3,703

4,011

3,974

3,879

Property, plant & equipment, net

2,317

2,197

2,192

2,192

2,067

Operating leases right-of-use assets

173

167

177

176

162

Goodwill and intangible assets, net

1,386

1,379

1,381

1,385

1,378

Investments and other non-current assets

565

564

564

606

500

Total assets

8,306

8,010

8,324

8,332

7,987

Liabilities and equity

Short-term debt

624

455

310

538

590

Accounts payable

1,881

1,858

1,855

1,978

1,858

Accrued expenses

1,189

1,120

1,129

1,135

1,093

Operating lease liabilities - current

44

41

41

39

37

Other current liabilities

297

312

323

345

274

Total current liabilities

4,034

3,785

3,658

4,035

3,851

Long-term debt

1,586

1,540

1,830

1,324

1,277

Pension liability

147

140

149

159

152

Operating lease liabilities - non-current

130

127

134

135

125

Other non-current liabilities

110

106

111

109

96

Total non-current liabilities

1,974

1,913

2,224

1,728

1,649

Total parent shareholders' equity

2,288

2,298

2,428

2,557

2,473

Non-controlling interest

10

13

13

13

13

Total equity

2,298

2,311

2,442

2,570

2,486

Total liabilities and equity

$8,306

$8,010

$8,324

$8,332

$7,987

Third quarter

First 9 months

Latest 12

Full Year

(Dollars in millions, unaudited)

2024

2023

2024

2023

months

2023

Net income

$139

$134

$404

$262

$632

$489

Depreciation and amortization

97

95

289

281

385

378

Other, net

10

9

1

1

(119)

(119)

Changes in operating working capital, net

(68)

(36)

(54)

(8)

189

235

Net cash provided by operating activities

177

202

639

535

1,086

982

Expenditures for property, plant and equipment

(146)

(152)

(440)

(420)

(593)

(572)

Proceeds from sale of property, plant and equipment

1

0

9

1

12

4

Net cash used in investing activities

(145)

(151)

(431)

(419)

(581)

(569)

Free cash flow1)

32

50

208

117

505

414

Increase in short term debt

152

110

85

115

32

61

Decrease in long-term debt

-

-

(306)

(533)

(306)

(533)

Increase in long-term debt

46

1

581

557

583

559

Dividends paid

(54)

(56)

(164)

(169)

(221)

(225)

Share repurchases

(130)

(120)

(450)

(202)

(600)

(352)

Common stock options exercised

-

0

0

1

1

1

Dividend paid to non-controlling interests

(4)

-

(5)

(1)

(5)

(1)

Net cash used in financing activities

11

(64)

(259)

(232)

(516)

(490)

Effect of exchange rate changes on cash

(36)

14

(33)

(3)

(50)

(20)

Increase (decrease) in cash and cash equivalents

6

(0)

(84)

(119)

(61)

(96)

Cash and cash equivalents at period-start

408

475

498

594

475

594

Cash and cash equivalents at period-end

$415

$475

$415

$475

$415

$498

1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliation table.

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions)

2024

2024

2024

2023

2023

Total current assets

$3,865

$3,703

$4,011

$3,974

$3,879

Total current liabilities

(4,034)

(3,785)

(3,658)

(4,035)

(3,851)

Working capital (U.S. GAAP)

(169)

(83)

353

(61)

28

Less: Cash and cash equivalents

(415)

(408)

(569)

(498)

(475)

Prepaid expenses

(172)

(193)

(180)

(173)

(180)

Other current assets

(90)

(76)

(71)

(93)

(63)

Less: Short-term debt

624

455

310

538

590

Accrued expenses

1,189

1,120

1,129

1,135

1,093

Operating lease liabilities - current

44

41

41

39

37

Other current liabilities

297

312

323

345

274

Trade working capital (non-U.S. GAAP)

$1,307

$1,169

$1,336

$1,232

$1,303

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions)

2024

2024

2024

2023

2023

Receivables, net

$2,192

$2,090

$2,194

$2,198

$2,179

Inventories, net

997

936

997

1,012

982

Accounts payable

(1,881)

(1,858)

(1,855)

(1,978)

(1,858)

Trade working capital (non-U.S. GAAP)

$1,307

$1,169

$1,336

$1,232

$1,303

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions)

2024

2024

2024

2023

2023

Short-term debt

$624

$455

$310

$538

$590

Long-term debt

1,586

1,540

1,830

1,324

1,277

Total debt

2,210

1,996

2,140

1,862

1,867

Cash & cash equivalents

(415)

(408)

(569)

(498)

(475)

Debt issuance cost/Debt-related derivatives, net

(9)

(8)

(9)

3

(17)

Net debt

$1,787

$1,579

$1,562

$1,367

$1,375

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2022

2021

2020

2019

Short-term debt

$711

$346

$302

$368

Long-term debt

1,054

1,662

2,110

1,726

Total debt

1,766

2,008

2,411

2,094

Cash & cash equivalents

(594)

(969)

(1,178)

(445)

Debt issuance cost/Debt-related derivatives, net

12

13

(19)

0

Net debt

$1,184

$1,052

$1,214

$1,650

Sep 30

Jun 30

Sep 30

(Dollars in millions)

2024

2024

2023

Net debt1)

$1,787

$1,579

$1,375

Pension liabilities

147

140

152

Debt per the Policy

$1,934

$1,720

$1,527

Net income2)

$632

$627

$418

Income taxes2)

141

150

188

Interest expense, net2, 3)

93

89

75

Other non-operating items, net2)

4

8

5

Income from equity method investments2)

(6)

(6)

(4)

Depreciation and amortization of intangibles2)

385

384

371

Adjustments2), 4)

128

128

136

EBITDA per the Policy (Adjusted EBITDA)

$1,376

$1,380

$1,189

Leverage ratio

1.4

1.2

1.3

1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense including cost for extinguishment of debt, if any, less interest income. 4) Capacity alignments, antitrust related matters and for FY2023 the Andrews litigation settlement. See Items Affecting Comparability below.

Third quarter

First 9 months

Latest 12

Full Year

(Dollars in millions)

2024

2023

2024

2023

months

2023

Net income

$139

$134

$404

$262

$632

$489

Changes in operating working capital

(68)

(36)

(54)

(8)

189

235

Depreciation and amortization

97

95

289

281

385

378

Other, net

10

9

1

1

(119)

(119)

Operating cash flow

177

202

$639

$535

1,086

982

Capital expenditure, net

(145)

(151)

(431)

(419)

(581)

(569)

Free cash flow1)

$32

$50

$208

$117

$505

$414

Cash conversion2)

23%

37%

52%

45%

80%

85%

1) Operating cash flow less Capital expenditure, net. 2) Free cash flow relative to Net income.

Full year

Full year

Full year

Full year

(Dollars in millions)

2022

2021

2020

2019

Net income

$425

$437

$188

$463

Changes in operating assets and liabilities

58

(63)

277

47

Depreciation and amortization

363

394

371

351

Gain on divestiture of property

(80)

-

-

-

Other, net1)

(54)

(15)

13

(220)

Operating cash flow

713

754

849

641

EC antitrust payment

-

-

-

(203)

Operating cash flow excl antitrust

713

754

849

844

Capital expenditure, net

(485)

(454)

(340)

(476)

Free cash flow2)

$228

$300

$509

$165

Free cash flow excl antitrust payment3)

$228

$300

$509

$368

Cash conversion4)

54%

69%

270%

36%

Cash conversion excl antitrust5)

54%

69%

270%

79%

1) Including EC antitrust payment 2019. 2) Operating cash flow less capital expenditure, net. 3) For 2019, operating cash flow excluding EC antitrust payment less capital expenditures, net. 4) Free cash flow relative to net income. 5) For 2019, free cash flow excluding EC antitrust payment relative to net income.

Third quarter 2024

Third quarter 2023

(Dollars in millions, except per share data)

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$226

11

$237

$232

11

$243

Operating margin

8.9%

0.4%

9.3%

8.9%

0.4%

9.4%

Income before taxes

197

11

208

201

11

212

Net income attributable to controlling interest

138

8

146

134

8

141

Return on capital employed2)

22.9%

1.0%

23.9%

24.2%

0.4%

24.5%

Return on total equity3)

24.1%

1.1%

25.2%

21.3%

0.2%

21.5%

Earnings per share - diluted

$1.74

0.10

$1.84

$1.57

0.09

$1.66

1) Effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 2) Annualized operating income and income from equity method investments, relative to average capital employed. 3) Annualized income relative to average total equity.

First 9 months 2024

First 9 months 2023

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$626

31

$657

$453

133

$586

Operating margin

8.1%

0.4%

8.5%

5.9%

1.7%

7.6%

Income before taxes

554

31

585

393

133

526

Net income attributable to controlling interest

403

26

429

261

123

384

Capital employed

4,085

26

4,111

3,861

123

3,985

Return on capital employed2)

21.2%

1.0%

22.1%

15.6%

4.2%

19.8%

Return on total equity3)

22.4%

1.3%

23.7%

13.5%

5.9%

19.5%

Earnings per share - diluted

$4.98

0.32

$5.30

$3.04

1.44

$4.48

1) Effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 2) Annualized operating income and income from equity method investments, relative to average capital employed. 3) Annualized income relative to average total equity.

Latest 12 months

Full year 2023

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$863

128

$991

$690

230

$920

Operating margin

8.2%

1.2%

9.4%

6.6%

2.2%

8.8%

1) Costs for capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement.

Full year 2022

Full year 2021

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$659

(61)

$598

$675

8

$683

Operating margin

7.5%

(0.7)%

6.8%

8.2%

0.1%

8.3%

1) Costs for capacity alignment and antitrust related matters.

Full year 2020

Full year 2019

(Dollars in millions, except per share data)

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$382

99

$482

$726

49

$774

Operating margin, %

5.1%

1.4%

6.5%

8.5%

0.6%

9.1%

1) Costs for capacity alignments and antitrust related matters.

Items included in non-U.S. GAAP adjustments

Third quarter 2024

Third quarter 2023

Adjustment
Million

Adjustment
Per share

Adjustment
Million

Adjustment
Per share

Capacity alignments

$9

$0.12

$10

$0.12

The Andrews litigation settlement

-

-

(0)

(0.00)

Antitrust related matters

2

0.02

1

0.01

Total adjustments to operating income

11

0.14

11

0.13

Tax on non-U.S. GAAP adjustments1)

(3)

(0.04)

(3)

(0.04)

Total adjustments to net income

$8

$0.10

$8

$0.09

Average number of shares outstanding - diluted

79.3

85.0

Annualized adjustment on return on capital employed

$44

$44

Adjustment on return on capital employed

1.0%

0.4%

Annualized adjustment on return on total equity

$32

$31

Adjustment on return on total equity

1.1%

0.2%

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

Items included in non-GAAP adjustments

First 9 months 2024

First 9 months 2023

Adjustment
Million

Adjustment
Per share

Adjustment
Million

Adjustment
Per share

Capacity alignments

$25

$0.31

$122

$1.42

The Andrews litigation settlement

-

-

8

0.09

Antitrust related matters

6

0.07

3

0.04

Total adjustments to operating income

31

0.39

133

1.55

Tax on non-U.S. GAAP adjustments1)

(5)

(0.06)

(10)

(0.11)

Total adjustments to net income

$26

$0.32

$123

$1.44

Average number of shares outstanding - diluted

80.9

85.7

Annualized adjustment on return on capital employed

$42

$177

Adjustment on return on capital employed

1.0%

4.2%

Annualized adjustment on return on total equity

$35

$164

Adjustment on return on total equity

1.3%

5.9%

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

(Dollars in millions, except per share data, unaudited)

2023

2022

2021

2020

2019

Sales and Income

Net sales

$10,475

$8,842

$8,230

$7,447

$8,548

Airbag sales1)

7,055

5,807

5,380

4,824

5,676

Seatbelt sales

3,420

3,035

2,850

2,623

2,871

Operating income

690

659

675

382

726

Net income attributable to controlling interest

488

423

435

187

462

Earnings per share - basic2)

5.74

4.86

4.97

2.14

5.29

Earnings per share - diluted2)

5.72

4.85

4.96

2.14

5.29

Gross margin3)

17.4%

15.8%

18.4%

16.7%

18.5%

S,G&A in relation to sales

(4.8)%

(4.9)%

(5.3)%

(5.2)%

(4.7)%

R,D&E net in relation to sales

(4.1)%

(4.4)%

(4.7)%

(5.0)%

(4.7)%

Operating margin4)

6.6%

7.5%

8.2%

5.1%

8.5%

Adjusted operating margin5,6)

8.8%

6.8%

8.3%

6.5%

9.1%

Balance Sheet

Trade working capital7)

1,232

1,183

1,332

1,366

1,417

Trade working capital in relation to sales8)

11.2%

12.7%

15.7%

13.6%

16.2%

Receivables outstanding in relation to sales9)

20.0%

20.4%

20.0%

18.1%

18.6%

Inventory outstanding in relation to sales10)

9.2%

10.4%

9.2%

7.9%

8.5%

Payables outstanding in relation to sales11)

18.0%

18.1%

13.5%

12.5%

10.8%

Total equity

2,570

2,626

2,648

2,423

2,122

Total parent shareholders' equity per share

30.93

30.30

30.10

27.56

24.19

Current assets excluding cash

3,475

3,119

2,705

3,091

2,557

Property, plant and equipment, net

2,192

1,960

1,855

1,869

1,816

Intangible assets (primarily goodwill)

1,385

1,382

1,395

1,412

1,410

Capital employed

3,937

3,810

3,700

3,637

3,772

Net debt6)

1,367

1,184

1,052

1,214

1,650

Total assets

8,332

7,717

7,537

8,157

6,771

Long-term debt

1,324

1,054

1,662

2,110

1,726

Return on capital employed12)

17.7%

17.5%

18.3%

10.0%

20.0%

Return on total equity13)

19.0%

16.3%

17.1%

9.0%

23.0%

Total equity ratio

31%

34%

35%

30%

31%

Cash flow and other data

Operating Cash flow

982

713

754

849

641

Depreciation and amortization

378

363

394

371

351

Capital expenditures, net

569

485

454

340

476

Capital expenditures, net in relation to sales

5.4%

5.5%

5.5%

4.6%

5.6%

Free Cash flow6,14)

414

228

300

509

165

Cash conversion6,15)

85%

54%

69%

270%

36%

Direct shareholder return16)

577

339

165

54

217

Cash dividends paid per share

2.66

2.58

1.88

0.62

2.48

Number of shares outstanding (millions)17)

82.6

86.2

87.5

87.4

87.2

Number of employees, December 31

62,900

61,700

55,900

61,000

58,900

1) Including steering wheels, inflators and initiators. 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 6) Non-US GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10) Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to average total equity. 14) Operating cash flow less Capital expenditures, net. 15) Free cash flow relative to Net income. 16) Dividends paid and Shares repurchased. 17) At year end, excluding dilution and net of treasury shares.