AUBURN HILLS, Mich.,
June 12, 2023 /PRNewswire/
-- Autoliv, Inc. (NYSE: ALV) (SSE: ALIVsdb), the
worldwide leader in automotive safety systems, will host an
Investor Day today. Throughout the day, members of Autoliv
management will outline the Company's strategy, growth
opportunities, financial plans and targets as well as its
contribution to sustainable mobility. Autoliv reiterates its full
year 2023 indications, including organic sales growth of around 15%
and an adjusted operating margin of around 8.5-9.0%.
Autoliv also reiterates its medium- and long-term financial
targets. Since our Capital Markets Day on November 16, 2021, Autoliv has taken forceful
actions to respond to a prolonged market environment of
inflationary pressure, continued supply chain challenges, and lower
and more volatile light vehicle production.
Autoliv is providing world class life-saving solutions for
mobility and society while transforming its operations for the new
age of electrification and autonomous driving, as well as
digitalization and automation throughout the whole value chain.
"We are optimizing our operations for a more effective and
cost-efficient structure to best serve our customers and to build
an even more competitive position" said Mikael Bratt, President, and CEO of Autoliv. "At
the Investor Day, we will outline how continued changes in safety
regulations and ratings drive development of new products
supporting continued growth in safety content per vehicle. Combined
with our strong global market positions, this will drive our sales
and profit growth for many years to come. We will also demonstrate
how we will take operational excellence to the next level, which
will support our journey towards our financial targets and
continued shareholder value creation" continued Mikael Bratt.
Sustainable Growth
Autoliv reiterates its growth targets. For the years 2022-2024,
we expect to grow organically* by around 4 percentage points more
than light vehicle production (LVP) growth per year, on average.
The growth trend is on track to significantly exceed LVP +4pp per
year for the period, partly due to price increases to offset recent
years high-cost inflation. The Company estimates that, also when
adjusting for these price increases, it will meet or exceed the
growth target for the period 2022-2024.
The Company also reiterates its long-term growth target beyond
2024, where it aims to grow sales organically by 4-6% per year,
over time. This is based on growth coming from safety content per
vehicle, LVP and from Mobility Safety Solutions.
Profitability
Autoliv reiterates its medium-term target of a 12% adjusted
operating margin*. This relies on the continued implementation of
our structural and strategic initiatives, including automation,
digitalization and footprint optimization, together with the
conditions that the business environment is a stable global LVP of
at least 85 million and that headwinds from inflation do not have a
greater net negative impact on our operating margin than they had
in 2021 (offset through price compensations or declining raw
material prices).
Balance Sheet and Shareholder Value Creation
Autoliv reiterates its aim for a cash conversion* (operating
cash flow less capex, net vs. net income) of at least 80%.
The Company maintains its target for a leverage ratio* (net debt
to adjusted EBITDA) of around 1x, with a range of 0.5x to 1.5x.
At the Investor Day, the Autoliv will outline its plan to
deliver on its targets for sustainability, growth and
profitability. This will include discussing our capital efficiency
program, which focuses on the efficient management of receivables,
inventories and payables.
Combined with the execution of our strategic plan, this should
lead to a strong cashflow generation. This should provide for
significant shareholder value creation, while maintaining financial
leverage commensurate with a strong investment grade credit rating.
The current stock repurchase program authorizes the Company to
repurchase up to $1.5 billion or up
to 17 million common shares (whichever comes first), between
January 2022 and the end of 2024.
Under the program Autoliv has currently repurchased 2.3 million
shares for a total of $194
million.
Attending the Investor Day
The investor day is today at 12.00 p.m.
EDT at the Autoliv Tech Centre in Auburn Hills, Michigan, USA. The event will be
webcasted live between 12.00 p.m. and
around 3 p.m. EDT. The webcast can be
accessed via the Autoliv webpage
A replay of the webcast will be available on our website Autoliv
webpage shortly after the conclusion of the event and will
remain available for a period of two years.
Inquiries Autoliv:
Investors & Analysts: Anders
Trapp, Tel +46 (0)8 587 206 71
Investors & Analysts: Henrik
Kaar, Tel +46 (0)8 587 206 14
Media: Gabriella Ekelund, Tel +46
(70) 612 64 24
* The forward-looking non-U.S. GAAP financial measures above are
provided on a non-U.S. GAAP basis. Autoliv has not provided a U.S.
GAAP reconciliation of these measures because items that impact
these measures, such as costs and gains related to capacity
alignments and antitrust matters, cannot be reasonably predicted or
determined. As a result, such reconciliation is not available
without unreasonable efforts and Autoliv is unable to determine the
probable significance of the unavailable information. See our
quarterly report on Form 10-Q filed with the SEC on April 21, 2023 for definitions of these non-GAAP
measures.
About Autoliv
Autoliv, Inc. (NYSE: ALV; Nasdaq Stockholm: ALIV.sdb) is the
worldwide leader in automotive safety systems. Through our group
companies, we develop, manufacture and market protective systems,
such as airbags, seatbelts, and steering wheels for all major
automotive manufacturers in the world as well as mobility safety
solutions, such as pedestrian protection, connected safety services
and safety solutions for riders of powered two wheelers. At
Autoliv, we challenge and re-define the standards of mobility
safety to sustainably deliver leading solutions. In 2022, our
products saved close to 35,000 lives and reduced more than 450,000
injuries.
Our close to 70,000 associates in 27 countries are passionate
about our vision of Saving More Lives and quality is at the heart
of everything we do. We drive innovation, research, and development
at our 14 technical centers, with their 20 test tracks. Sales in
2022 amounted to US $ 8.8 billion.
For more information go to www.autoliv.com.
Safe Harbor Statement
This release 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. All medium and long term targets are considered
forward-looking statements. Additionally, 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; 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 judgements 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.
The following files are available for download:
https://mb.cision.com/Main/751/3784618/2119967.pdf
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ALV Investor Day 2023
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