Financial highlights Q1 2024

$2,615 million net sales

5% net sales increase

5% organic sales growth*

7.4% operating margin

7.6% adjusted operating margin*

$1.52 EPS, 77% increase

$1.58 adjusted EPS*, 76% increase

Full year 2024 guidance

Around 5% organic sales growth

Around 0% FX effect on net sales

Around 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)

Q1 2024

Q1 2023

Change

Net sales

$2,615

$2,493

4.9%

Operating income

194

127

52%

Adjusted operating income1)

199

131

51%

Operating margin

7.4%

5.1%

2.3pp

Adjusted operating margin1)

7.6%

5.3%

2.3pp

Earnings per share2)

1.52

0.86

77%

Adjusted earnings per share1,2)

1.58

0.90

76%

Operating cash flow

$122

$(46)

n/a

Return on capital employed3)

19.7%

13.0%

6.7pp

Adjusted return on capital employed1,3)

20.2%

13.4%

6.8pp

1) Excluding effects from capacity alignments and antitrust related matters. Non-U.S. GAAP measure, see reconciliation table. 2) Assuming dilution when applicable and net of treasury shares. 3) Annualized operating income and income from equity method investments, relative to average capital employed.

Comments from Mikael Bratt, President & CEO

We delivered record first quarter sales, outperforming global LVP growth by 6pp. We outperformed in all regions, including China despite a negative LVP mix development with domestic Chinese OEMs growing by 17% and global OEMs declining by 5%. It is encouraging that our sales in India grew organically by 27%.

return on capital employed.

I am particularly pleased with our leverage ratio of 1.3x, which declined significantly compared to a year ago, despite returning $0.7 billion to shareholders and investing in footprint optimization and growth. To support future growth, we are currently investing in increased capacity in Vietnam, China and India.

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

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

The 2024 development we expect should set up a solid base towards a continued high level of shareholder returns and our target of around 12% adjusted operating margin*.

Sales in India are now larger than in South Korea, accounting for more than 4% of our global sales.

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

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

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

Full Year Indication

Full Year Indication

Organic sales growth

Around 5%

Tax rate2)

Around 28%

FX impact on net sales

Around 0%

Operating cash flow3)

Around $1.2 billion

Adjusted operating margin1)

Around 10.5%

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*

Capex, net: Capital Expenditure, net.

D&A: Depreciation and Amortization.

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.

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

Consolidated sales

First quarter

Reported change

Currency

Organic

(Dollars in millions)

2024

2023

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,781

$1,673

6.5%

(0.5)%

7.0%

Seatbelt Products and Other2)

834

820

1.7%

(0.5)%

2.2%

Total

$2,615

$2,493

4.9%

(0.5)%

5.4%

Americas

$893

$831

7.5%

2.9%

4.6%

Europe

770

725

6.1%

2.4%

3.7%

China

460

453

1.7%

(4.8)%

6.5%

Asia excl. China

491

483

1.7%

(6.6)%

8.2%

Total

$2,615

$2,493

4.9%

(0.5)%

5.4%

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

Sales by product – Airbags, Steering Wheels and Other

Sales for all major product categories increased organically* in the quarter. The largest contributor to the increase was steering wheels, followed by inflatable curtains, side airbags, and driver airbags.

Sales by product - Seatbelt Products and Other

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

Sales by region

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

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

Q1 2024 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

4.6%

3.7%

6.5%

8.2%

5.4%

Main growth drivers

Toyota, Mercedes, Ford

Mercedes, BMW, Toyota

Volvo, Chery, BMW

Hyundai, Tata, Honda

Mercedes, Toyota, Hyundai

Main decline drivers

Stellantis, GM

Ford, Renault, Volvo

Honda

Nissan, Renault, Mazda

Stellantis, Nissan

Q1 2024

Americas

Europe

China

Asia excl. China

Global

LVP (Apr 2024)

(0.3)%

(2.4)%

5.1 %

(6.9)%

(0.9)%

LVP (Jan 2024)

1.0%

(4.0)%

7.1%

(4.7)%

0.2%

  BMW 5-Series/i5 Touring

   Subaru Forester

    Dacia Duster

   Hyundai Santa Fe

   VW ID.7 Tourer

    Tata Punch.ev

   Renault Scenic e-Tech

   Tank 700

    Li Auto Mega

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

First quarter

(Dollars in millions, except per share data)

2024

2023

Change

Net sales

$2,615

$2,493

4.9%

Cost of sales

(2,172)

(2,113)

2.8%

Gross profit

443

379

17%

S,G&A

(132)

(132)

(0.0)%

R,D&E, net

(113)

(116)

(3.1)%

Other income (expense), net

(4)

(4)

11%

Operating income

194

127

52%

Adjusted operating income1)

199

131

51%

Financial and non-operating items, net

(20)

(18)

10%

Income before taxes

174

109

60%

Income taxes

(47)

(34)

36%

Net income

$127

$74

70%

Earnings per share2)

$1.52

$0.86

77%

Adjusted earnings per share1,2)

$1.58

$0.90

76%

Gross margin

16.9%

15.2%

1.7pp

S,G&A, in relation to sales

(5.0)%

(5.3)%

0.2pp

R,D&E, net in relation to sales

(4.3)%

(4.7)%

0.4pp

Operating margin

7.4%

5.1%

2.3pp

Adjusted operating margin1)

7.6%

5.3%

2.3pp

Tax Rate

27.0%

31.6%

(4.6)pp

Other data

No. of shares at period-end in millions3)

81.4

85.8

(5.2)%

Weighted average no. of shares in millions4)

82.3

86.1

(4.4)%

Weighted average no. of shares in millions, diluted4)

83.0

86.3

(3.8)%

1) Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters. See reconciliation table. 2) Assuming dilution when applicable and net of treasury shares. 3) Excluding dilution and net of treasury shares. 4) Net of treasury shares.

First quarter 2024 development

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

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

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

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

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

Adjusted operating income* increased by $68 million compared to the prior year, mainly due to higher gross profit.

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

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

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

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

Selected Balance Sheet items

First quarter

(Dollars in millions)

2024

2023

Change

Trade working capital1)

$1,336

$1,409

(5.2)%

Trade working capital in relation to sales2)

12.8%

14.1%

(1.4)pp

- Receivables outstanding in relation to sales3)

21.0%

21.1%

(0.2)pp

- Inventory outstanding in relation to sales4)

9.5%

9.9%

(0.4)pp

- Payables outstanding in relation to sales5)

17.7%

16.9%

0.9pp

Cash & cash equivalents

569

713

(20)%

Gross Debt6)

2,140

2,179

(1.8)%

Net Debt7)

1,562

1,477

5.7%

Capital employed8)

4,003

4,118

(2.8)%

Return on capital employed9)

19.7%

13.0%

6.7pp

Total equity

$2,442

$2,641

(7.5)%

Return on total equity10)

20.2%

11.3%

8.9pp

Leverage ratio11)

1.3

1.6

(0.4)pp

1) Outstanding receivables and outstanding inventory less outstanding payables. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5) Outstanding payables relative to annualized quarterly sales. 6) 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.

Selected Cash Flow items

First quarter

(Dollars in millions)

2024

2023

Change

Net income

$127

$74

70%

Changes in operating working capital

(114)

(202)

(43)%

Depreciation and amortization

96

92

4.1%

Other, net

14

(10)

n/a

Operating cash flow

122

(46)

n/a

Capital expenditure, net

(140)

(143)

(2.2)%

Free cash flow1)

$(18)

$(189)

(90)%

Cash conversion2)

n/a

n/a

n/a

Shareholder returns

- Dividends paid

(56)

(57)

(1.9)%

- Share repurchases

(160)

(42)

286%

Cash dividend paid per share

$(0.68)

$(0.66)

3.5%

Capital expenditures, net in relation to sales

5.4%

5.7%

(0.4)pp

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.

First quarter 2024 development

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

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

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

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

Free cash flow* improved by $171 million compared to the same period the prior year, mainly due to the improved operating cash flow.

Trade working capital* decreased by $73 million compared to the same period last year, where the main drivers were $172 million in higher accounts payable partly offset by $88 million in higher accounts receivables and $12 million in higher inventories. In relation to sales, trade working capital decreased from 14.1% to 12.8%.

Leverage ratio* As of March 31, 2024, the Company had a leverage ratio of 1.3x compared to 1.6x as of March 31, 2023, as the 12 months trailing adjusted EBITDA* increased more than the net debt* increased.

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

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

Mar 31

Dec 31

Mar 31

2024

2023

2023

Headcount

70,100

70,300

71,300

Whereof: Direct headcount in manufacturing

52,500

52,400

52,700

                 Indirect headcount

17,600

17,800

18,600

Temporary personnel

10%

11%

11%

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

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

Next Report

Autoliv intends to publish the quarterly earnings report for the second quarter of 2024 on Friday, July 19, 2024.

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 April 26, 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 and April 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.

First quarter

Latest 12

Full Year

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

2024

2023

months

2023

Airbags, Steering Wheels and Other1)

$1,781

$1,673

$7,163

$7,055

Seatbelt products and Other1)

834

820

3,434

3,420

Total net sales

2,615

2,493

10,597

10,475

Cost of sales

(2,172)

(2,113)

(8,712)

(8,654)

Gross profit

443

379

1,885

1,822

Selling, general & administrative expenses

(132)

(132)

(500)

(500)

Research, development & engineering expenses, net

(113)

(116)

(421)

(425)

Other income (expense), net

(4)

(4)

(207)

(207)

Operating income

194

127

756

690

Income from equity method investments

2

2

5

5

Interest income

5

2

16

13

Interest expense

(26)

(19)

(99)

(93)

Other non-operating items, net

(1)

(2)

(1)

(3)

Income before income taxes

174

109

677

612

Income taxes

(47)

(34)

(136)

(123)

Net income

127

74

541

489

Less: Net income attributable to non-controlling interest

0

0

2

1

Net income attributable to controlling interest

$126

$74

$540

$488

Earnings per share2)

$1.52

$0.86

$6.40

$5.72

1) Including Corporate sales. 2) Assuming dilution when applicable and net of treasury shares.

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions, unaudited)

2024

2023

2023

2023

2023

Assets

Cash & cash equivalents

$569

$498

$475

$475

$713

Receivables, net

2,194

2,198

2,179

2,189

2,106

Inventories, net

997

1,012

982

947

986

Prepaid expenses

180

173

180

166

166

Other current assets

71

93

63

120

90

Total current assets

4,011

3,974

3,879

3,898

4,061

Property, plant & equipment, net

2,192

2,192

2,067

2,047

2,045

Operating leases right-of-use assets

177

176

162

149

169

Goodwill

1,381

1,385

1,378

1,381

1,383

Investments and other non-current assets

564

606

500

484

528

Total assets

8,324

8,332

7,987

7,959

8,185

Liabilities and equity

Short-term debt

310

538

590

481

577

Accounts payable

1,855

1,978

1,858

1,844

1,683

Accrued expenses

1,129

1,135

1,093

1,122

969

Operating lease liabilities - current

41

39

37

35

41

Other current liabilities

323

345

274

274

258

Total current liabilities

3,658

4,035

3,851

3,756

3,529

Long-term debt

1,830

1,324

1,277

1,290

1,601

Pension liability

149

159

152

152

159

Operating lease liabilities - non-current

134

135

125

113

127

Other non-current liabilities

111

109

96

91

128

Total non-current liabilities

2,224

1,728

1,649

1,645

2,015

Total parent shareholders’ equity

2,428

2,557

2,473

2,545

2,627

Non-controlling interest

13

13

13

13

14

Total equity

2,442

2,570

2,486

2,557

2,641

Total liabilities and equity

$8,324

$8,332

$7,987

$7,959

$8,185

First quarter

Latest 12

Full Year

(Dollars in millions, unaudited)

2024

2023

months

2023

Net income

$127

$74

$541

$489

Depreciation and amortization

96

92

381

378

Other, net

14

(10)

(96)

(119)

Changes in operating working capital, net

(114)

(202)

323

235

Net cash provided by (used in) operating activities

122

(46)

1,150

982

Expenditures for property, plant and equipment

(140)

(144)

(569)

(572)

Proceeds from sale of property, plant and equipment

0

0

4

4

Net cash used in investing activities

(140)

(143)

(565)

(569)

Free cash flow1)

(18)

(189)

584

414

(Decrease) increase in short term debt

(227)

(135)

(31)

61

Decrease in long-term debt

-

-

(533)

(533)

Increase in long-term debt

534

533

561

559

Dividends paid

(56)

(57)

(224)

(225)

Share repurchases

(160)

(42)

(471)

(352)

Common stock options exercised

0

0

1

1

Dividend paid to non-controlling interests

-

-

(1)

(1)

Net cash provided by (used in) financing activities

92

300

(698)

(490)

Effect of exchange rate changes on cash

(3)

7

(30)

(20)

Increase (decrease) in cash and cash equivalents

71

119

(144)

(96)

Cash and cash equivalents at period-start

498

594

713

594

Cash and cash equivalents at period-end

$569

$713

$569

$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.

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2024

2023

2023

2023

2023

Receivables, net

$2,194

$2,198

$2,179

$2,189

$2,106

Inventories, net

997

1,012

982

947

986

Accounts payable

(1,855)

(1,978)

(1,858)

(1,844)

(1,683)

Trade Working capital

$1,336

$1,232

$1,303

$1,292

$1,409

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2024

2023

2023

2023

2023

Short-term debt

$310

$538

$590

$481

$577

Long-term debt

1,830

1,324

1,277

1,290

1,601

Total debt

2,140

1,862

1,867

1,771

2,179

Cash & cash equivalents

(569)

(498)

(475)

(475)

(713)

Debt issuance cost/Debt-related derivatives, net

(9)

3

(17)

4

12

Net debt

$1,562

$1,367

$1,375

$1,299

$1,477

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

Mar 31

Dec 31

Mar 31

(Dollars in millions)

2024

2023

2023

Net debt1)

$1,562

$1,367

$1,477

Pension liabilities

149

159

159

Debt per the Policy

$1,711

$1,527

$1,636

Net income2)

$541

$489

$416

Income taxes2)

136

123

176

Interest expense, net2, 3)

83

80

60

Other non-operating items, net2)

1

3

4

Income from equity method investments2)

(5)

(5)

(4)

Depreciation and amortization of intangibles2)

381

378

359

Adjustments2), 4)

231

230

10

EBITDA per the Policy (Adjusted EBITDA)

$1,369

$1,297

$1,021

Leverage ratio

1.3

1.2

1.6

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.

First quarter

Latest 12

Full Year

(Dollars in millions)

2024

2023

months

2023

Net income

$127

$74

$541

$489

Changes in operating working capital

(114)

(202)

323

235

Depreciation and amortization

96

92

381

378

Other, net

14

(10)

(96)

(119)

Operating cash flow

122

(46)

1,150

982

Capital expenditure, net

(140)

(143)

(565)

(569)

Free cash flow1)

$(18)

$(189)

$584

$414

Cash conversion2)

n/a

n/a

108%

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.

First quarter 2024

First 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

$194

5

$199

$127

4

$131

Operating margin

7.4%

0.2%

7.6%

5.1%

0.2%

5.3%

Income before taxes

174

5

179

109

4

113

Net income attributable to controlling interest

126

4

131

74

3

77

Return on capital employed2)

19.7%

0.5%

20.2%

13.0%

0.4%

13.4%

Return on total equity3)

20.2%

0.7%

20.9%

11.3%

0.5%

11.8%

Earnings per share4)

$1.52

0.05

$1.58

$0.86

0.03

$0.90

1) Effects from capacity alignments and antitrust related matters. 2) Annualized operating income and income from equity method investments, relative to average capital employed. 3) Annualized income relative to average total equity. 4) Assuming dilution and net of treasury shares.

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

$756

$231

$987

$690

230

$920

Operating margin

7.1%

2.2%

9.3%

6.6%

2.2%

8.8%

1) Costs for capacity alignments, antitrust related matters and 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

First quarter 2024

First quarter 2023

Adjustment
Million

Adjustment
Per share

Adjustment
Million

Adjustment
Per share

Capacity alignments

$2

$0.03

$3

$0.04

Antitrust related matters

3

0.03

1

0.01

Total adjustments to operating income

5

0.06

4

0.05

Tax on non-U.S. GAAP adjustments1)

(1)

(0.01)

(1)

(0.01)

Total adjustments to net income

$4

$0.05

$3

$0.03

Average number of shares outstanding - diluted2)

84.4

86.9

Annualized adjustment on return on capital employed

$20

$17

Adjustment on return on capital employed

0.5%

0.4%

Annualized adjustment on return on total equity

$18

$12

Adjustment on return on total equity

0.7%

0.5%

1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s). 2) Annualized average number of outstanding shares.

(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 – basic

5.74

4.86

4.97

2.14

5.29

Earnings per share – assuming dilution2)

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) Assuming dilution and 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 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.