ALIV Autoliv Inc (PK)

Date of Report (Date of earliest event reported): January 31, 2025

Delaware

001-12933

Not applicable

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

Klarabergsviadukten 70, Section B

7th Floor,

Box 70381,

Stockholm, Sweden

SE-107 24

(Address of Principal Executive Offices)

(Zip Code)

+46 8 587 20 600

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock (par value $1.00 per share)

ALV

New York Stock Exchange

99.1

Press Release of Autoliv, Inc. dated January 31, 2025.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

Exhibit No.

Description

99.1

Press Release of Autoliv, Inc. dated January 31, 2025.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

AUTOLIV, INC

By:

/s/ Anthony J. Nellis

Name:

Anthony J. Nellis

Title:

Executive Vice President, Legal Affairs and General Counsel

    Financial Report

     October - December 2024

        Stockholm, Sweden, January 31, 2025
        (NYSE: ALV and SSE: ALIV.sdb)

Financial highlights Q4 2024

$2,616 million net sales

4.9% net sales decrease

3.3% organic sales decline*

13.5% operating margin

13.4% adjusted operating margin*

$3.10 diluted EPS, 14% increase

$3.05 adjusted diluted EPS*, 19% decrease

Full year 2025 guidance

Around 2% organic sales growth

Around 2% negative FX effect on net sales

Around 10-10.5% adjusted operating margin

Around $1.2 billion operating cash flow

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

(Dollars in millions, except per share data)

Q4 2024

Q4 2023

Change

FY 2024

FY 2023

Change

Net sales

$2,616

$2,751

(4.9)%

$10,390

$10,475

(0.8)%

Operating income

353

237

49%

979

690

42%

Adjusted operating income1)

349

334

4.7%

1,007

920

9.5%

Operating margin

13.5%

8.6%

4.9pp

9.4%

6.6%

2.8pp

Adjusted operating margin1)

13.4%

12.1%

1.2pp

9.7%

8.8%

0.9pp

Earnings per share - diluted

3.10

2.71

14%

8.04

5.72

40%

Adjusted earnings per share - diluted1)

3.05

3.74

(19)%

8.32

8.19

1.6%

Operating cash flow

420

447

(6.0)%

1,059

982

7.8%

Return on capital employed2)

35.8%

24.4%

11pp

25.0%

17.7%

7.2pp

Adjusted return on capital employed1,2)

35.2%

32.9%

2.3pp

25.6%

23.1%

2.5pp

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

I am pleased that we delivered strong profitability and cash flow in the fourth quarter. We reached new record highs in the quarter for operating profit, operating margin and EPS. For the full year, we also had a record high operating cash flow. I am also pleased that we generated a high return on capital employed for the quarter and year and

models, we underperformed the LVP growth in China. However, we expect a record number of new launches in China in 2025 and thereby a significant performance improvement in China in 2025.

We achieved several strategic major wins with new automakers in 2024 although OEMs' sourcing of new business was at a low level in 2024. This was due to technological and geopolitical uncertainties and the sourcing of several large platforms were pushed into 2025.

We expect 2025 to be a challenging year for the automotive industry with LVP declining slightly and continued geopolitical risks. This uncertainty makes it challenging to predict how business conditions in general and automotive markets in particular will develop in 2025. However, our continued focus on efficiency is expected to support further improvement of our profitability towards our mid-term financial targets. Our continued strong cash flow and balance sheet should set a solid foundation for our ongoing commitment to high shareholder returns.

I am looking forward to our Capital Markets Day, planned for June 3, 2025, when we will share our view of our way forward with you. More details to be announced shortly.

that we could achieve this strong performance despite a continued LVP mix deterioration leading to lower sales.

Our strong performance for both the quarter and the full year was mainly a result of our strict cost control. Our structural cost reduction program has enabled a reduction of the indirect work force by 1,400 since Q1 2023. We accelerated our operating efficiency improvements, supported by an improved customer call-off accuracy, which contributed to a reduction of direct headcount by 9% in one year. The strong results for both the quarter and the full year were also supported by reaching agreements with all major customers on excess inflation compensation.

As LVP growth mix continued to be tilted towards lower CPV

Full year 2025 Guidance

Organic sales growth

Around 2%

Adjusted operating margin1)

Around 10-10.5%

Operating cash flow2)

Around $1.2 billion

Capex, net, % of sales

Around 5%

1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.

Full year 2025 Assumptions

LVP Growth

Around 0.5% negative

FX impact on net sales

Around 2% negative

Tax rate3)

Around 28%

3) Excluding unusual tax items.

Net Sales Development by region

Operating and adjusted* operating income and margins

Capex, net 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, defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment.

D&A: Depreciation and Amortization.

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

Consolidated sales

Fourth quarter

Reported change

Currency

Organic

(Dollars in millions)

2024

2023

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,760

$1,864

(5.6)%

(1.5)%

(4.1)%

Seatbelt Products and Other2)

856

887

(3.5)%

(1.9)%

(1.6)%

Total

$2,616

$2,751

(4.9)%

(1.6)%

(3.3)%

Americas

$786

$861

(8.7)%

(4.3)%

(4.4)%

Europe

715

755

(5.3)%

(0.1)%

(5.2)%

China

587

617

(4.8)%

0.4%

(5.2)%

Asia excl. China

527

519

1.7%

(1.8)%

3.5%

Total

$2,616

$2,751

(4.9)%

(1.6)%

(3.3)%

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

Sales by product – Airbags, Steering Wheels and Other

Sales declined organically* by 4.1% in the quarter. The largest contributor to the decrease was steering wheels, passenger airbags, driver airbags and knee airbags, partly offset by growth in center airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other declined organically* by 1.6% in the quarter. Sales declined organically in China and Europe while sales increased in Asia excluding China with the Americas being virtually unchanged.

Sales by region

Our global organic sales* decreased by 3.3% compared to the global LVP increase of 0.4% (according to S&P Global, Jan 2025). The underperformance was mainly driven by a negative regional and model LVP mix that we estimate contributed to about 4pp underperformance. This was particularly accentuated in China while dealer inventory reductions by major customers explain most of our underperformance in Americas. Our organic sales growth underperformed LVP growth by 13pp in China and by 2.6pp in Americas while we outperformed by 7.0pp in Asia excluding China and by 3.0pp in Europe.

LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. LVP for global OEMs declined by 8.3% while it increased by 24% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 20% in the quarter. We expect that our strong order intake with domestic OEMs will lead to a record high number of new launches and significantly improve Autoliv's sales performance in China in 2025.

Q4 2024 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

(4.4)%

(5.2)%

(5.2)%

3.5%

(3.3)%

Main growth drivers

Ford, Honda, Toyota

Renault, VW, Ford

Geely, Chery, Changan

Suzuki, Toyota, Subaru

Renault, Geely, Toyota

Main decline drivers

Stellantis, EV OEM, Rivian,

Stellantis, Mercedes, Volvo

Honda, GM, Lixiang auto

Honda, Mazda, Ford

Stellantis, Honda, Volvo

Q4 2024

Americas

Europe

China

Asia excl. China

Global

LVP (Jan 2025)

(1.8)%

(8.2)%

8.3 %

(3.5)%

0.4%

LVP (Oct 2024)

(3.1)%

(8.9)%

(1.6)%

(4.7)%

(4.0)%

Consolidated sales

Full year

Reported change

Currency

Organic

(Dollars in millions)

2024

2023

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$7,023

$7,055

(0.5)%

(1.2)%

0.7%

Seatbelt Products and Other2)

3,367

3,420

(1.6)%

(1.3)%

(0.2)%

Total

$10,390

$10,475

(0.8)%

(1.2)%

0.4%

Americas

$3,424

$3,526

(2.9)%

(1.2)%

(1.7)%

Europe

2,946

2,877

2.4%

1.0%

1.4%

China

2,010

2,105

(4.5)%

(1.3)%

(3.2)%

Asia excl. China

2,010

1,968

2.2%

(4.4)%

6.6%

Total

$10,390

$10,475

(0.8)%

(1.2)%

0.4%

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

Sales by product – Airbags, Steering Wheels and Other

Sales grew organically* by 0.7% in the period. The largest contributor to the increase was steering wheels, followed by center airbags, side airbags, inflatable curtains and inflators, partly offset by decreases for passenger airbags, knee airbags and driver airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other declined organically* by 0.2% in the period. Sales decreased organically in China and Europe, while it increased in Asia excluding China and the Americas.

Sales by region

Our global organic sales* increased by 0.4% compared to the global LVP decrease of 1.2% (according to S&P Global, Jan 2025). The 1.6pp 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 11pp in Asia excluding China and by 6.1pp in Europe while it was in line with LVP growth in Americas. Our sales growth underperformed LVP growth by 7.4pp in China. LVP growth in China was tilted to domestic OEMs with typically lower safety content. Domestic OEM LVP in China grew by 18% while LVP declined by 9.5% for global OEMs in China in 2024. Autoliv's sales to domestic OEMs increased by 24% in 2024.

FY 2024 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

(1.7)%

1.4%

(3.2)%

6.6%

0.4%

Main growth drivers

Toyota, Honda, VW

Renault, Mercedes, Ford

Geely, Chery, Changan

Hyundai, Suzuki, Tata

Geely, Mercedes, Renault

Main decline drivers

Stellantis, EV OEM, Nissan

Stellantis, Volvo, Fisker

GM, Honda, EV OEM

Nissan, Mazda, Renault

Stellantis, EV OEM, GM

Full year 2024

Americas

Europe

China

Asia excl. China

Global

LVP (Jan 2025)

(1.7)%

(4.7)%

4.2 %

(4.6)%

(1.2)%

LVP (Jan 2024)

1.0%

(2.0)%

(0.5)%

(1.6)%

(0.8)%

  Toyota 4Runner

   Nissan Murano

   Suzuki DZIRE

   Honda Ye S7

   Citroen C3 Aircross

    Honda Amaze

  Acura ADX

   Skoda Kylaq

   Hyundai Ioniq 9

   Lynk&Co Z20

   Zeekr Mix

   Nio ET9

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

Fourth quarter

Full year

(Dollars in millions, except per share data)

2024

2023

Change

2024

2023

Change

Net sales

$2,616

$2,751

(4.9)%

$10,390

$10,475

(0.8)%

Cost of sales

(2,065)

(2,221)

(7.0)%

(8,463)

(8,654)

(2.2)%

Gross profit

551

530

3.8%

1,927

1,822

5.8%

S,G&A

(132)

(120)

9.6%

(530)

(500)

6.0%

R,D&E, net

(74)

(81)

(9.5)%

(398)

(425)

(6.3)%

Other income (expense), net

8

(92)

n/a

(19)

(207)

(91)%

Operating income

353

237

49%

979

690

42%

Adjusted operating income1)

349

334

4.7%

1,007

920

9.5%

Financial and non-operating items, net

(32)

(18)

82%

(105)

(77)

35%

Income before taxes

321

219

47%

875

612

43%

Income taxes

(78)

8

n/a

(227)

(123)

84%

Net income

$243

$227

7.0%

$648

$489

32%

Earnings per share - diluted2)

$3.10

$2.71

14%

$8.04

$5.72

40%

Adjusted earnings per share - diluted1,2)

$3.05

$3.74

(19)%

$8.32

$8.19

1.6%

Gross margin

21.0%

19.3%

1.8pp

18.5%

17.4%

1.2pp

S,G&A, in relation to sales

(5.0)%

(4.4)%

(0.7)pp

(5.1)%

(4.8)%

(0.3)pp

R,D&E, net in relation to sales

(2.8)%

(3.0)%

0.1pp

(3.8)%

(4.1)%

0.2pp

Operating margin

13.5%

8.6%

4.9pp

9.4%

6.6%

2.8pp

Adjusted operating margin1)

13.4%

12.1%

1.2pp

9.7%

8.8%

0.9pp

Tax Rate

24.3%

(3.7)%

28pp

26.0%

20.1%

5.9pp

Other data

No. of shares at period-end in millions2)

77.7

82.6

(6.0)%

77.7

82.6

(6.0)%

Weighted average no. of shares in millions, basic2)

78.3

83.5

(6.3)%

80.2

85.0

(5.7)%

Weighted average no. of shares in millions, diluted2)

78.5

83.7

(6.2)%

80.4

85.2

(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) Net of treasury shares.

Fourth quarter 2024 development

Gross profit increased by $20 million, and the gross margin increased by 1.8pp compared to the prior year. The improvement was mostly due to that improved customer call-off accuracy supported an improved operational efficiency with around $33 million in lower costs for labor, premium freight and waste and scrap. The gross profit increase was also, to a lesser extent, supported by lower costs related to recalls, insurance and materials. The main offsetting factor to the improvement were negative effects of lower sales.

S,G&A costs increased by $12 million compared to the prior year, mainly due to minor cost increases for several items, including personnel, insurance and IT expenses. S,G&A costs in relation to sales increased from 4.4% to 5.0%.

R,D&E, net costs decreased by $8 million compared to the prior year, with the majority of the improvement coming from higher engineering income. The decrease was also supported to a smaller extent from several items, mainly lower personnel costs and lower costs for samples, prototypes and tools. R,D&E, net, in relation to sales decreased from 3.0% to 2.8%.

Other income (expense), net was positive $8 million, compared to negative $92 million in the same period last year. Almost all of the change was due to lower capacity alignment accruals compared to the prior year.

Operating income increased by $117 million compared to the prior year, due to improvement in Other income (expense), higher gross profit, lower costs for R,D&E, net, partly offset by higher costs for S,G&A, as outlined above.

Adjusted operating income* increased by $16 million compared to the prior year, due to the higher gross profit, and lower costs for R,D&E, net, partly offset by higher costs for S,G&A, as outlined above.

Financial and non-operating items, net, was negative $32 million compared to negative $18 million a year earlier. The increase in costs was mainly due to increased expenses for non-operating items.

Income before taxes increased by $102 million compared to the prior year, mainly due to the higher operating income, partly offset by higher costs for financial and non-operating items.

Tax rate was 24.3% compared to negative 3.7% in the prior year. The higher tax rate was mainly due to discrete tax items, net, in the fourth quarter of 2023 that decreased the tax rate by 47.2pp. That decrease was mainly related to a net deferred tax asset recognized in the fourth quarter of 2023 due to the transfer of certain assets and operations as part of restructuring activities. Discrete tax items, net, decreased the tax rate in the fourth quarter of 2024 by 8.4pp.

Earnings per share, diluted increased by $0.38 compared to the prior year. The main drivers were $1.18 from higher operating income and $0.19 from lower number of outstanding shares, diluted, partly offset by $0.90 from higher taxes and $0.10 from higher financial and non-operating items, net.

Full year 2024 development

Gross profit increased by $106 million, and the gross margin increased by 1.2pp compared to the prior year. The improvement was mostly due to that better customer call-off accuracy supported an improved operational efficiency with around $82 million in lower costs for labor, premium freight and waste and scrap. The gross profit increase was also, to a lesser extent, supported by positive effects from lower material costs. The main offsetting factor to the improvement were negative effects of lower sales.

S,G&A costs increased by $30 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 4.8% to 5.1%.

R,D&E, net costs decreased by $27 million compared to the prior year. Higher engineering income explained almost the entire improvement. R,D&E, net, in relation to sales decreased from 4.1% to 3.8%.

Other income (expense), net was negative $19 million compared to negative $207 million last year. Almost all of the change was due to lower capacity alignment accruals compared to the prior year.

Operating income increased by $290 million compared to the prior year, mainly due to lower capacity alignment accruals, and the increase in gross profit, as outlined above.

Adjusted operating income* increased by $87 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 $105 million compared to negative $77 million a year earlier. The change was mainly due to increased interest expense as the result of higher debt and higher interest rates, and increased expenses for non-operating items.

Income before taxes increased by $263 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 26.0% compared to 20.1% in the same period last year. The higher tax rate was mainly due to discrete tax items, net, in the prior year decreased the tax rate by 17.3pp. Discrete tax items, net, decreased the tax rate in 2024 by 4.8pp. In addition, country mix impacted the 2024 tax rate favorably by 6.1pp compared to the prior year.

Earnings per share, diluted increased by $2.32 compared to a year earlier. The main drivers were $2.83 from higher operating income and $0.45 from lower number of outstanding shares, diluted, partly offset by $0.76 from higher taxes and $0.21 from higher financial and non-operating items, net.

Selected Cash Flow items

Fourth quarter

Full year

(Dollars in millions)

2024

2023

Change

2024

2023

Change

Net income

$243

$227

7.0%

$648

$489

32%

Depreciation and amortization

98

97

1.7%

387

378

2.5%

Other, net

(29)

(120)

(76)%

(29)

(119)

(76)%

Changes in operating working capital

107

243

(56)%

53

235

(77)%

Operating cash flow

420

447

(6.0)%

1,059

982

7.8%

Capital expenditure, net1)

(132)

(150)

(12)%

(563)

(569)

(1.0)%

Free operating cash flow2)

$288

$297

(3.0)%

$497

$414

20%

Cash conversion3)

118%

131%

(12)pp

77%

85%

(7.9)pp

Shareholder returns

- Dividends paid

(55)

(57)

(3.5)%

(219)

(225)

(3.0)%

- Share repurchases

(102)

(150)

(32)%

(552)

(352)

57%

Cash dividend paid per share

$(0.70)

$(0.68)

2.6%

$(2.74)

$(2.66)

2.9%

Capital expenditures, net in relation to sales

5.0%

5.4%

(0.4)pp

5.4%

5.4%

(0.0)pp

1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash flow less Capital expenditure, net. Non-U.S. GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-U.S. GAAP measure. See reconciliation table.

Selected Balance Sheet items

Fourth quarter

(Dollars in millions)

2024

2023

Change

Trade working capital1)

$1,115

$1,232

(9.5)%

Trade working capital in relation to sales2)

10.7%

11.2%

(0.5)pp

- Receivables outstanding in relation to sales3)

19.0%

20.0%

(0.9)pp

- Inventory outstanding in relation to sales4)

8.8%

9.2%

(0.4)pp

- Payables outstanding in relation to sales5)

17.2%

18.0%

(0.8)pp

Cash & cash equivalents

330

498

(34)%

Gross Debt6)

1,909

1,862

2.5%

Net Debt7)

1,554

1,367

14%

Capital employed8)

3,840

3,937

(2.5)%

Return on capital employed9)

35.8%

24.4%

11pp

Total equity

2,285

2,570

(11)%

Return on total equity10)

42.5%

36.0%

6.5pp

Leverage ratio11)

1.2

1.2

0.0pp

1) Outstanding receivables and outstanding inventory less outstanding payables. Non-U.S. GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. Non-U.S. GAAP measure, see reconciliation table. Annualized quarterly sales is calculated as the quarterly sales amount multiplied by four. 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. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table.

Fourth quarter 2024 development

Changes in operating working capital impacted operating cash flow by $107 million positive compared to an impact of $243 million positive in the prior year. The $107 million positive impact for the quarter was mainly a result of $108 million in lower receivables and other assets, $26 million in lower inventories, and $45 million from changes in income tax liability partly offset by $72 million in lower accounts payables. These changes are within normal variations related to timings, except for the lower inventories which is related to improved customer call of accuracy.

Other, net was $29 million negative compared to $120 million negative in the prior year. The $29 million negative impact in the quarter was mainly related to a lower amount of deferred taxes.

Operating cash flow decreased by $27 million to $420 million compared to the prior year, mainly due to changes in operating working capital were less positive than in the prior year, partly offset by less negative impact from other net and higher net income, as outline above.

Capital expenditure, net decreased by $18 million compared to the prior year. The level of Capital expenditure, net, in relation to sales declined to 5.0% versus 5.4% a year earlier. The lower level of capital expenditure, net is mainly related to lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.

Free operating cash flow* was positive $288 million compared to positive $297 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 118% in the quarter.

Trade working capital* decreased by $117 million compared to the prior year, where the main drivers were $204 million in lower accounts receivables, $179 million in lower accounts payable and $91 million in lower inventories. In relation to sales, trade working capital decreased from 11.2% to 10.7%. The improvement in trade working capital is a result of our multi-year working capital improvement program and an improvement in customer call-off accuracy enabling a more efficient inventory management.

Cash and cash equivalents as of December 31, 2024 was around $0.3 billion, while committed, unused loan facilities, was around $1.2 billion.

Net debt* was $1,554 million as of December 31, 2024, which was $187 million higher than a year earlier, mainly because dividends paid and share repurchases were higher than free operating cash flow in 2024.

Total equity as of December 31, 2024, decreased by $284 million compared to December 31, 2023. This was mainly due to $219 million in dividend payments and share repurchases including taxes of $558 million and $161 million negative currency translation effects, partly offset by positive net income of $648 million.

Leverage ratio*: On December 31, 2024, the Company had a leverage ratio of 1.2x compared to 1.2x on December 31, 2023, as the 12 months trailing adjusted EBITDA* increased by around $97 million while net debt* per the policy increased by around $181 million.

Full year 2024 development

Operating cash flow increased by $77 million compared to the same period last year, to $1,059 million, mainly due to higher net income and less positive effects from income tax liability, partly offset by less positive effects from decreased operating working capital. The changes between the years are within normal variations related to timing, except for the lower inventories which is related to improved customer call of accuracy.

Capital expenditure, net decreased by $6 million. Capital expenditure, net in relation to sales was stable at 5.4% versus 5.4% the prior year period. The 2024 level is 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 Japan.

Free operating cash flow* was positive $497 million, compared to positive $414 million in the prior year. The improvement was due to the higher operating cash flow.

Cash conversion* defined as free operating cash flow* in relation to net income, was 77% in the period.

Dec 31

Sep 30

Dec 31

2024

2024

2023

Headcount

65,200

67,200

70,300

Whereof: Direct headcount in manufacturing

48,000

49,800

52,400

                 Indirect headcount

17,200

17,400

17,800

Temporary personnel

9%

9%

11%

As of December 31, 2024, total headcount (Full Time Equivalent) decreased by around 5,100, or 7.3%, compared to a year earlier, more than twice the 3.3% organic sales* decline. The indirect workforce decreased by around 600, or 3.4%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by approximately 4,500, or 8.6%. The decrease was supported by an improvement in customer call-off accuracy in the second half year which enabled us to accelerate operating efficiency improvements.

Compared to September 30, 2024, total headcount (Full Time Equivalent) decreased by around 2,000, or 3.0%. Indirect headcount decreased by around 100, or 0.6%, while direct headcount decreased by approximately 1,900, or 3.8%.

Sustainability is an integral part of our business strategy and an important driver for market differentiation and stakeholder value creation. Our sustainability approach is based on four focus areas, with broad ambitions and more specific short-term targets defined for each area. We are a signatory of the UN Global Compact and our work and policies, such as our Code of Conduct, are aligned with international frameworks such as the ILO core conventions and the OECD Guidelines.

Highlighting our core business of Saving More Lives, we continued pioneering the emerging area of equity in vehicle safety by broadening test models to include more body shapes and parameters such as age and gender. We also engage with researchers and policy makers on how to better protect vulnerable road users.

Within Health & Safety we significantly improved our Recordable Incident Rate. We continued the work of integrating health and safety into our operations, with a focus on proactive measures and high-risk activities.

Renewable electricity and GHG emissions: in own operations, focus remained on reducing GHG emissions from own operations (scope 1+2) through energy efficiency and increasing the use of renewable electricity. Scope 1+2 emissions decreased 15% compared to 2023, and operational GHG emissions intensity improved. The share of renewable electricity increased to 30%, and we took the first steps in the implementation of large-scale solar power generation in Utah.

Within Supply chain sustainability, we carried out the annual supplier climate survey covering all direct material suppliers, to help us understand their readiness to meet our requirements and contribute to meeting our net-zero supply chain ambition. We also began integrating climate performance into the supplier selection process and launched a climate accelerator program to support our suppliers.

We continued assessing how we best meet current and future sustainability-related requirements and expectations. To guide future CSRD reporting, we carried out a double materiality assessment as well as impact assessments of topics related to CSDDD compliance.

Next Report

Autoliv intends to publish the quarterly earnings report for the first quarter of 2025 on Wednesday, April 16, 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 January 31, 2025.

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 10-Q, 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 2024, October 2024 and January 2025. 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; geopolitical instability, including 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; including changes in trade policy and tariffs, 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.

Fourth quarter

Full year

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

2024

2023

2024

2023

Airbags, Steering Wheels and Other1)

$1,760

$1,864

$7,023

$7,055

Seatbelt products and Other1)

856

887

3,367

3,420

Total net sales

2,616

2,751

10,390

10,475

Cost of sales

(2,065)

(2,221)

(8,463)

(8,654)

Gross profit

551

530

1,927

1,822

Selling, general & administrative expenses

(132)

(120)

(530)

(500)

Research, development & engineering expenses, net

(74)

(81)

(398)

(425)

Other income (expense), net

8

(92)

(19)

(207)

Operating income

353

237

979

690

Income from equity method investments

2

1

7

5

Interest income

3

3

13

13

Interest expense

(27)

(25)

(107)

(93)

Other non-operating items, net

(10)

3

(16)

(3)

Income before income taxes

321

219

875

612

Income taxes

(78)

8

(227)

(123)

Net income

243

227

648

489

Less: Net income attributable to non-controlling interest

0

0

1

1

Net income attributable to controlling interest

$243

$227

$646

$488

Earnings per share - diluted

$3.10

$2.71

$8.04

$5.72

1) Including Corporate sales.

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions, unaudited)

2024

2024

2024

2024

2023

Assets

Cash & cash equivalents

$330

$415

$408

$569

$498

Receivables, net

1,993

2,192

2,090

2,194

2,198

Inventories, net

921

997

936

997

1,012

Prepaid expenses

167

172

193

180

173

Other current assets

72

90

76

71

93

Total current assets

3,483

3,865

3,703

4,011

3,974

Property, plant & equipment, net

2,239

2,317

2,197

2,192

2,192

Operating leases right-of-use assets

158

173

167

177

176

Goodwill and intangible assets, net

1,375

1,386

1,379

1,381

1,385

Investments and other non-current assets

548

565

564

564

606

Total assets

7,804

8,306

8,010

8,324

8,332

Liabilities and equity

Short-term debt

387

624

455

310

538

Accounts payable

1,799

1,881

1,858

1,855

1,978

Accrued expenses

1,056

1,189

1,120

1,129

1,135

Operating lease liabilities - current

41

44

41

41

39

Other current liabilities

351

297

312

323

345

Total current liabilities

3,633

4,034

3,785

3,658

4,035

Long-term debt

1,522

1,586

1,540

1,830

1,324

Pension liability

153

147

140

149

159

Operating lease liabilities - non-current

118

130

127

134

135

Other non-current liabilities

92

110

106

111

109

Total non-current liabilities

1,885

1,974

1,913

2,224

1,728

Total parent shareholders’ equity

2,276

2,288

2,298

2,428

2,557

Non-controlling interest

10

10

13

13

13

Total equity

2,285

2,298

2,311

2,442

2,570

Total liabilities and equity

$7,804

$8,306

$8,010

$8,324

$8,332

Fourth quarter

Full year

(Dollars in millions, unaudited)

2024

2023

2024

2023

Net income

$243

$227

$648

$489

Depreciation and amortization

98

97

387

378

Other, net

(29)

(120)

(29)

(119)

Net change in operating working capital:

   Receivables and other assets

108

82

114

(213)

   Inventories

26

5

28

(22)

   Accounts payable and accrued expenses

(72)

88

(95)

426

   Income taxes

45

69

6

43

Net cash provided by operating activities

420

447

1,059

982

Expenditures for property, plant and equipment

(139)

(152)

(579)

(572)

Proceeds from sale of property, plant and equipment

7

3

17

4

Net cash used in investing activities

(132)

(150)

(563)

(569)

Net decrease (increase) in short term debt

(211)

(54)

(126)

61

Decrease in long-term debt

(54)

-

(306)

(533)

Increase in long-term debt

-

2

526

559

Dividends paid

(55)

(57)

(219)

(225)

Share repurchases

(102)

(150)

(552)

(352)

Common stock options exercised

0

0

1

1

Dividend paid to non-controlling interests

-

(0)

(5)

(1)

Net cash used in financing activities

(422)

(258)

(680)

(490)

Effect of exchange rate changes on cash

49

(16)

16

(20)

Increase (decrease) in cash and cash equivalents

(84)

23

(168)

(96)

Cash and cash equivalents at period-start

415

475

498

594

Cash and cash equivalents at period-end

$330

$498

$330

$498

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2024

2024

2024

2024

2023

Total current assets

$3,483

$3,865

$3,703

$4,011

$3,974

Total current liabilities

(3,633)

(4,034)

(3,785)

(3,658)

(4,035)

Working capital (U.S. GAAP)

(150)

(169)

(83)

353

(61)

Less: Cash and cash equivalents

(330)

(415)

(408)

(569)

(498)

          Prepaid expenses

(167)

(172)

(193)

(180)

(173)

          Other current assets

(72)

(90)

(76)

(71)

(93)

Less: Short-term debt

387

624

455

310

538

          Accrued expenses

1,056

1,189

1,120

1,129

1,135

          Operating lease liabilities - current

41

44

41

41

39

          Other current liabilities

351

297

312

323

345

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

$1,115

$1,307

$1,169

$1,336

$1,232

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2024

2024

2024

2024

2023

Receivables, net

$1,993

$2,192

$2,090

$2,194

$2,198

Inventories, net

921

997

936

997

1,012

Accounts payable

(1,799)

(1,881)

(1,858)

(1,855)

(1,978)

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

$1,115

$1,307

$1,169

$1,336

$1,232

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2022

2021

2020

Total current assets

$3,714

$3,675

$4,269

Total current liabilities

(3,642)

(2,821)

(3,147)

Working capital (U.S. GAAP)

72

853

1,122

Less: Cash and cash equivalents

(594)

(969)

(1,178)

          Prepaid expenses

(160)

(174)

(401)

          Other current assets

(84)

(55)

(70)

Less: Short-term debt

711

346

302

          Accrued expenses

915

996

1,270

          Operating lease liabilities - current

39

38

37

          Other current liabilities

283

297

284

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

$1,183

$1,332

$1,366

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2022

2021

2020

Receivables, net

$1,907

$1,699

$1,822

Inventories, net

969

777

798

Accounts payable

(1,693)

(1,144)

(1,254)

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

$1,183

$1,332

$1,366

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2024

2024

2024

2024

2023

Short-term debt

$387

$624

$455

$310

$538

Long-term debt

1,522

1,586

1,540

1,830

1,324

Total debt

1,909

2,210

1,996

2,140

1,862

Cash & cash equivalents

(330)

(415)

(408)

(569)

(498)

Debt issuance cost/Debt-related derivatives, net

(24)

(9)

(8)

(9)

3

Net debt

$1,554

$1,787

$1,579

$1,562

$1,367

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2022

2021

2020

Short-term debt

$711

$346

$302

Long-term debt

1,054

1,662

2,110

Total debt