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Autoliv

General
Presentation
2015
v.1.0

Saving Lives

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In Brief

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Every year our products


save over 30,000 lives

and prevent ten times as


many severe injuries

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Our vision
To substantially
reduce traffic accidents,
fatalities and injuries

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Our mission
To create, manufacture
and sell state-of-the-art
automotive safety systems

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We Care
Our Values
Life we have a passion for saving lives.
Customers we are dedicated to
providing satisfaction for our customers
and value for the driving public.

Employees we are committed to


the development of our employees skills,
knowledge and creative potential.

Innovation we are driven for


innovation and continuous improvement.

Ethics we adhere to the highest


level of ethical and social behavior.

Culture we are founded on global


thinking and local actions.

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Our Life Saving Target


Human lives saved by our products
additionally they prevent ten times as many severe injuries

160 000
140 000
120 000
100 000
80 000
60 000
40 000
20 000
0

2014

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Target

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Creating Sustainable Value


To achieve sustainable growth and profitability, we recognize
that every part of our business needs to be run with
responsibility, integrity and operational excellence.

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2014 in Summary

>6%

Organic sales growth*

45%

Organic growth in active safety

$713m

In operational cash flow

$453m

Of CAPEX, supporting growth

$811m

In direct shareholder returns

37%

Market share in the global passive safety market

(*) Non-U.S. GAAP measure


ALV-General Presentation 2015 v.1.0 - 8

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Autoliv in Brief
- Global Footprint

Sales and technology leader

Fortune 500 company with an


A- credit rating (S&P)

~ 80 facilities in 28 countries

> 60,000 associates of which


~ 5,500 in R,D&E

RoA

Sales US$9.2 billion

Europe

Japan

Sales to all major vehicle


manufacturers
China

Sales
2014

18 technical centers and


20 crash test tracks

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Americas

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Autoliv in Brief
- Products

Sales and technology leader

Fortune 500 company with an


A- credit rating (S&P)

~ 80 facilities in 28 countries

> 60,000 associates of which


~ 5,500 in R,D&E

Sales US$9.2 billion


Sales to all major vehicle
manufacturers

18 technical centers and


20 crash test tracks

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Seatbelts

Airbags

Sales
2014
Active
Safety

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Autoliv in Brief
- Customers

Sales and technology leader


Sales US$9.2 billion
Sales to all major vehicle
manufacturers

Others

LocalChineseOEMs

2%2%
2%

5%

14%

3%
4%

11%

5%

Fortune 500 company with an


A- credit rating (S&P)

Sales
2014

5%
5%

~ 80 facilities in 28 countries

> 60,000 associates of which


~ 5,500 in R,D&E

11%
7%

18 technical centers and


20 crash test tracks

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7%

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9%
8%

Strong Acquisition Track Record


- Supports organic growth strategy
US$ (millions)

Visteon Radar, Aztyx/Hella IP


Delphi OPS
Tyco Radar

10,000
9,000

Izumi
VRE
Norma
NSK
Mando OEA
Morton ASP
LivBag
IsoDelta

8,000
7,000
6,000
5,000
4,000

Autoflug

3,000

Sale of Italy

2,000

Klippan

Britax

1,000
,0
1982

1985

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1988

1991

1994

1997

2000

2003

2006

2009

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2012

Major Occupant Restraint Suppliers


- Net Sales Development
US$ (millions)

**

(*) TRW OSS, estimate $300M in 2011, $350M in 2012, $400 in 2013 safety electronics and driver assist systems.
(**) Based on DIR estimate for 1998-2005. FY2014 based on Takatas guidance for the period ending March 2015.
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ALV-General Presentation 2015 v.1.0 - 13

Superior Global Presence


- Operations in 28 countries

China

16%

Europe

of sales

33%
of sales

Americas

Japan

34%

7%

of sales

of sales

RoA

10%
of sales

Autoliv locations

ALV-General Presentation 2015 v.1.0 - 14

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Autolivs Global Engineering


China
Shanghai

Sweden
Vrgrda
Linkping

France

USA
Detroit
Ogden
Lowell

Gournay
Pont-de-Buis
Cergy-Pontoise
Poitiers

Japan
Tsukuba
Hiroshima

Romania
Brasov

Germany
Elmshorn
Dachau

Technical center with crash lab


Other technical center

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South Korea
India
Bangalore

8 crash tracks for full scale tests and 20 sled crash tracks.
Approx. 5,500 employees in R,D&E.

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Seoul

Key Figures Summary

US$ (in millions)

2014

2013

2012

$9,240

$8,803

$8,267

Operating income

723

761

705

Net income

469

490

486

Earnings per share, US$

5.06

5.07

5.08

Cash from operations

713

838

689

Return on total equity, %

12.3

12.5

13.6

811

339

178

60,000

56,500

51,000

86

83

80

Sales

Share holder returns


Headcount (no. of persons)
Light Vehicle Production (millions units)

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Strategy & Products

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Our Strategies

Quality
As peoples lives depend on
our safety products, quality is
the base in all we do.

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One Product
One Process

Innovation

Reducing production complexity


by decreasing the number of
variants and processes without
losing customer focus.

By boosting the innovative spirit


among all employees, Autoliv will
continue to be the undisputed
leader in our industry.

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Our Strategies

Quality

As peoples lives depend on our safety products,


quality is the base in all we do.

Our continuous proactive quality work

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Product and process development

Supplier management

Production

After delivery

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Our Strategies

One Product
One Process

Reducing production complexity


by decreasing the number of variants and
processes without losing customer focus.

1P1P is Autolivs strategy towards global


standardization of products and processes for:

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Profitability

Robustness

Customer Excellence

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Our Strategies

Innovation

By boosting the innovative spirit among all


employees, Autoliv will continue to be the
undisputed leader in our industry.

To boost innovation, we need to


1

Look ahead: Plan the destination, route and check conditions ahead.

Fuel our car: Make sure we never run out of high quality fuel

Drive our car: Use the capabilities of our car to get us to our destination

Adapt our driving: Strengthen our ability get to the right destination
safety and efficiently

ALV-General Presentation 2015 v.1.0 - 21

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Key Focus Areas

Saving lives and safety around the


automobile

Lead through innovation and technology

Leverage global footprint and talentedskilled people

Zero defects and customer focus

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Road Traffic Fatalities

Total 2004
Leading Cause

Total 2030
%

Leading Cause

1 Ischaemic heart disease

12.2

1 Ischaemic heart disease

14.2

2 Cerebrovascular disease

9.7

2 Cerebrovascular disease

12.1

3 Lower respiratory infections

7.0

3 Chronic obstructive pulmonary disease

8.0

4 Chronic obstructive pulmonary disease

5.1

4 Lower respiratory infections

3.8

5 Diarrhoeal diseases

3.6

6 HIV/AIDS

3.5

6 Trachea, bronchus, lung cancers

3.4

7 Tuberculosis

2.5

7 Diabetes mellitus

3.3

8 Trachea, bronchus, lung cancers

2.3

8 Hypertensive heart disease

2.1

2.2

9 Stomach cancer

1.9

2.0

10 HIV/AIDS

1.8

1.3 million 9 Road traffic injuries


10 Prematurity and low birth weight

2.4 million 5 Road traffic injuries

Source: World Health Organization

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3.6

The Road to Saving More Lives

Passive safety products, such as airbags and seatbelts, are


there to help protect you from injury if a crash is unavoidable.
More than a million human beings owe their life to them.

The major advancement from Active Safety products is to


reduce the crash severity and avoid the crash altogether by
warning the driver or automatically braking the car.

Allowing the car to act automatically is crucial


when moving towards our vision of saving
150,000 lives per year.

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PROTECTION

AUTONOMOUS
DRIVING

PREVENTION

In the future, self driving


cars will ultimately provide
the third level of automotive
safety, significantly reducing
the element of human error.

AUTOMATION

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Lead through Innovation and Technology

vision algorithms

night vision

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adaptable seatbelt

bag-in-belt

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Complete Safety System Supplier


Bag-in-belt
Extra safety belt
Far-side airbag

Inflatable curtain airbag


Mono or stereo vision system
Electronic control unit and
Brake control/ESC

Blind spot radar


Driver airbag
Steering wheel

Rear-side airbag
Integrated child seat

Pelvis restraint cushion


Knee airbag

Side airbag
Anti-whiplash system

Battery disconnect
switch

Seatbelt systems
Side impact sensor

Passenger airbag

Night driving assist

Pedestrian protection
Driver assist radar
Satellite sensor
Dynamic spot light
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Autonomous Emergency Braking (AEB)

AEB systems, which provide protection in all types of weather and


light conditions for vehicle occupant, pedestrians as well as cyclist,
will be a key enabler for the self-driving car.

ALV-General Presentation 2015 v.1.0 - 27

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Unique Testing Capabilities


Autoliv is the only safety system supplier doing complete vehicle crash-tests
8 tracks for full-scale tests
20 sled test tracks
22% of R,D&E are assignments ordered and funded by customers
Tracks for active safety testing

ALV-General Presentation 2015 v.1.0 - 28

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Technology Leadership
2013

Bag-in-belt / Night Vision Fusion*

2012

Pedestrian airbag* / Dynamic Spot Light*/ Animal detection system*

2011

Camera-based Advanced Driver Assistance System

2010

Seatbelt Locking tongue*

2008

Integrated safety electronics* / Pedestrian detection system*

2007

Multi-volume cushion airbag*

2006

Safety Vent bag*

2005

Night vision system / Pedestrian protection hood*

2004

Fixed hub steering wheel*

2002

Anti-sliding bag* / Adaptive load limiter*

1998

Side curtain airbag*/ Anti-whiplash seat*

1997

Side airbag for head protection*

1995

Knee airbag* / Seatbelt load limiter*

1994

Side thorax bag*

1992

Steering wheel with integrated sensor

1989

Seatbelt with buckle pretensioner*

1986

Belt grabber*

1980

Airbag production

1956

Seatbelt production

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* Worlds first

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Technology Leadership
- through early lead-to-market and intellectual property
Customer Worlds Firsts where Autoliv has contributed;

Mercedes Sensor Fusion NIR/FIR for night driving assist (2013)


Volvo External pedestrian protection airbag (2012)
BMW Pedestrian warning for night driving (2009)
Ford Integrated inertia motion control ECU into the airbag ECU (2008)
Renault Adaptive Multi-Volume cushion airbag (2007)
Chrysler Safety-Vent passenger airbag (2006)
Jaguar Pedestrian protection pop-up hood (2005)
BMW Seatbelts with adaptive load limiters (2002)
Renault First company to receive Five Stars in the EuroNCAP (2002)
Ford Integrated gyro-rollover sensor into the airbag ECU (2002)
Volvo and Mercedes Side curtain airbags (1998)
BMW Side airbags for head protection (1997)
Kia Knee airbags(1995)
Volvo Side airbags (1994)

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Investment in R,D&E

US$ (Millions)

700

10

600
8
500
6

400
300

200
2
100
0

0
2010
Net

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2011
Customer funded

2012

2013

2014

% of sales, gross

% of sales, net

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Our Market

ALV-General Presentation 2015 v.1.0 - 32

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Superior Global Presence


- All Major Vehicle Manufacturers

ALV-General Presentation 2015 v.1.0 - 33

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Best Selling Platforms, 2014

Ford Focus/Escape/Kuga

BMW 3 and 4 Series

Mercedes E-Class

VW Golf

Chevrolet Silverado, K2XX

Chevrolet Cruze, GM Delta

Great Wall Haval H6

Hyundai ix35/Tucson

Chevrolet Equinox, GM Theta

ALV-General Presentation 2015 v.1.0 - 34

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Market Shares 2014


- Global Safety Market Share by Product

Overall Passive Safety

37%

Seatbelts

Frontal Airbags

Side Airbags

Steering Wheels

Electronic Control Unit


1

Active Safety sensors*

1
0%

20%

40%

60%

Autolivs share
*Radar, night vision, mono/stereo forward sensing

ALV-General Presentation 2015 v.1.0 - 35

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Market Shares 2014


- Passive Safety Market

37%

Global

Europe

Americas

Japan
1

Asia (excl. Japan)


1

0%

20%

40%

60%

Autolivs share

ALV-General Presentation 2015 v.1.0 - 36

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Autoliv Production Volumes 2014

Million Units
150

Knee

125

100

Without
pret.

Head

Global Light Vehicle Production


75
Chest

50

25

With
pret.

Front

Seatbelt

Airbag

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Steering Wheel

ECU

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Employees & Quality

ALV-General Presentation 2015 v.1.0 - 38

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Our Human Resources

Headcount

70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Production - direct

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Production - indirect

RD&E

SG&A

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Well-balanced Workforce
- Average age 34 years
Employees by age groups %

12
10
8
6
4
2
0
<20

20-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60

Men

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Women

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>60

Our Zero Defect Policy

Design robust
products

Product & Process


Development

Buy flawless
components

Supplier
Management

ALV-General Presentation 2015 v.1.0 - 41

Manufacture
flawless products

Production System

Verify conformity of
products

After Delivery

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Q5
- Autoliv Employees with Quality in Focus

ALV-General Presentation 2015 v.1.0 - 42

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Q5 Definition and Objective

Q5 is the journey which will shape an Autoliv culture


leading to zero defects and best value for all our customers

Reduce risk for critical quality issues and near misses. Drive toward
zero customer issues and zero defects

Provide customers with products and services of value that is and is


perceived to be higher than anyone elses

Reduce waste and internal errors

ALV-General Presentation 2015 v.1.0 - 43

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Every year, Autolivs products


save over 30,000 lives
and prevent ten times
as many severe injuries

ALV-General Presentation 2015 v.1.0 - 44

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