Remarketing Senior Notes Autoliv Inc. March 1, 2012 Driven for Life Copyright Autoliv Inc., All Rights Reserved Filed Pursuant to Rule 433 Registration No. 333-158139 March 23, 2009 |
ALV- Remarketing Senior Notes March 2012 - 2 This presentation contains statements that are not historical facts but rather forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations and various assumptions, and apply only as of the date of this report. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because such statements involve risks and uncertainties, the outcome could differ materially from those set out in the statements. For a summary of such risk factors, please refer to our latest 10-K and 10-Q filed with the SEC. Except for our ongoing obligation to disclose information under law, we undertake no obligation to update publicly any forward-looking statements whether as a result of new information or future events. 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 PSLRA. Safe Harbor Statement * & Important Information (*) Non US GAAP reconciliations are available in our 8-K/10-K/10-Q filings available at www.sec.gov or www.autoliv.com and are available at the end of this presentation Autoliv has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the Senior Notes to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Autoliv has filed with the SEC for more complete information about Autoliv and the remarketing. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov or from the Remarketing Agent by calling the toll-free number 1-866-718-1649. |
ALV- Remarketing Senior Notes March 2012 - 3 Remarketing of Senior Notes Autoliv, Inc., the worldwide leader in automotive safety systems – announced on March 2, 2012 that it intends to remarket its 8% senior notes due 2014, beginning on March 12, 2012 This remarketing provides an opportunity for debt investors to invest in Autoliv, as well as an opportunity for Autoliv to lower its cost of borrowing The total amount to be raised in the remarketing is expected to be approximately $108 million. The maturity of the notes will be April 30, 2014 The remarketing of senior notes issued as part equity units is required as a result of the March 2009 transaction In March 2009, Autoliv offered and sold 6.6MM Corporate Units, each with a $25 stated principal amount. Each unit consisted of – A 5-year 8% Senior Notes instrument – A 3-year forward contract (under which stock is issued) Autoliv must attempt to remarket the 5-year debt in year 3; however, the 3-year forward contract must be settled by April 30, 2012 Morgan Stanley is acting as the re-marketing agent |
ALV- Remarketing Senior Notes March 2012 - 4 Business Overview Financial Performance Table of Contents |
ALV- Remarketing Senior Notes March 2012 - 5 Autoliv in Brief Sales and technology leader Sales: US $8.2 billion Fortune 500 company Sales to all major vehicle manufacturers ~80 facilities in 29 countries 20 crash test tracks ~48,000 associates whereof 4,400 in R,D&E Rated BBB+/stable by Standard & Poor’s RoW 38% Japan Europe 31% Americas 10% 12% 9% China |
ALV- Remarketing Senior Notes March 2012 - 6 **(US $ Mil’s unless specified) 2011 2010 2009 Sales 8,232 7,171 5,121 Operating income 889 869 69 Net income 627 596 13 EPS * (assuming dilution), US$ 6.65 6.39 0.12 Operating cash flow 758 924 493 Net debt/EBITDA *, x 0.0 0.1 1.6 RoE *, % 19.6 22.3 0.5 Dividends paid 154 58 15 Headcount (no. of persons) 47,900 43,300 37,900 GLVP * (millions units) 74.8 71.6 57.2 Key Figures Summary (**) US GAAP reported, (*) Earnings per share, Return on Equity, Global Light Vehicle Production; Net debt/EBITDA is a non US GAAP measure (see reconciliation at end of presentation) |
8% of all automotive industry safety patents 2006 Safety Vent Bag 2005 Night Vision System, Pedestrian Hood 2004 Fixed-Hub Steering Wheel 2002 Anti-Sliding Bag, Adaptive Load Limiter 2000 Telematics 1998 Curtain Airbag, Anti-Whiplash Seat 1997 Side Airbag for Head Protection, Inflatable Tubular Structure 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 2007 Multi Volume Cushion 2008 Integrated Safety Electronics, Pedestrian Detection System Technology Leadership 2009 2 generation Active Seatbelts 2010 Locking Tongue 2011 Mono Vision System ALV- Remarketing Senior Notes March 2012 - 7 nd |
ALV- Remarketing Senior Notes March 2012 - 8 Superior Global Presence – Local Production Seatbelts Airbags Steering wheels Electronics North America Japan Europe South America India China Korea Asia other |
ALV- Remarketing Senior Notes March 2012 - 9 Sales by Customer - 2011 |
ALV- Remarketing Senior Notes March 2012 - 10 Product Sales - increases in passive and active electronics FAB ~ 17% and SAB ~ 27% in 2011 Seatbelts Airbags Steering Wheels Other Passive Electronics Active Electronics 32% 46% 8% 3% 10% 1% 2010 $7.2B 31% 45% 8% 3% 11% 2% 2011 $8.2B |
ALV- Remarketing Senior Notes March 2012 - 11 Market Shares - global passive safety market share 0% 20% 40% 60% 80% 100% Driver A/B Passenger A/B Chest A/B Head A/B ECU Seatbelts SW Total Autoliv estimated market share ~ 36% |
ALV- Remarketing Senior Notes March 2012 - 12 Table of Contents Business Overview Financial Performance |
ALV- Remarketing Senior Notes March 2012 - 13 Operational execution record sales and strong cash generation in Q4 and FY11 double-digit margins for the 8 consecutive quarter Growth outperformed GLVP for the 9 consecutive quarter Active Safety and Growth Markets • ~ 120% increase in radar and vision volumes in FY11 • organic growth in China was close to 4 times the LVP in FY11 Balance Sheet Strength $1.3 Bn reduction in net debt since January 2009 rated BBB+/stable by Standard & Poor’s DoJ and EC anti-trust investigations on-going Overview - highlights market outperformance due to exceptional global presence & customer diversification th th |
ALV- Remarketing Senior Notes March 2012 - 14 Q4 Financial Overview - record sales, gross profit and DPS for a 4 quarter strong performance despite commodity headwinds & active safety RD&E investments (**) US GAAP reported, (*) Earnings per share, Dividend per share, Return on Capital Employed, Return on Equity, Global Light Vehicle Production ** 2011 2010 Sales $2,045 $1,907 Gross Profit $429 21.0% $423 22.2% Operating Income $224 11.0% $243 12.7% EPS * $1.70 $1.89 DPS * $0.45 $0.35 Operating Cash flow $293 $326 RoCE * 27% 32% RoE * 19% 25% GLVP * ~ 77M ~ 76M th (US $ Mil’s unless specified) (assuming dilution) (annual run rate) |
ALV- Remarketing Senior Notes March 2012 - 15 FY Financial Overview - record sales, gross profit, EBIT, EPS and DPS strong performance despite commodity headwinds & active safety RD&E investments (**) US GAAP reported, (*) Earnings per share, Dividend per share, Operating cash flow less capital expenditure (net), Return on Capital Employed, Return on Equity, Global Light Vehicle Production ** 2011 2010 Sales $8,232 $7,171 Gross Profit $1,728 21.0% $1,592 22.2% Operating Income $889 10.8% $869 12.1% EPS * $6.65 $6.39 DPS * $1.73 $0.65 Operating cash flow $758 $924 Free cash flow * $401 $700 RoCE * 28% 28% RoE * 20% 22% GLVP * ( ~ 75M ~ 73M (US $ Mil’s unless specified) (assuming dilution) |
ALV- Remarketing Senior Notes March 2012 - 16 (*) Non US GAAP and restated for ASC 810-10-45. Cash Flow - higher CapEx to support growth initiatives (US $ Mil’s unless specified) 2011 Q4 2010 Q4 2011 FY 2010 FY 2009 FY 2008 FY 2007 FY Net Income 160 179 627 596 13 172 296 Depreciation & Amortization 70 68 268 282 314 347 321 Other non-cash items 1 19 38 58 (42) 22 (5) Change in operating WC 62 60 (175) (12) 207 73 169 Operating Cash Flow 293 326 758 924 492 614 781 CapEx, net (100) (82) (357) (224) (130) (279) (314) Free cash flow (*) 193 244 401 700 362 335 467 Dividend 40 31 154 58 15 115 121 2 nd best operating cash flow for a 4 th quarter |
Capital Structure - strong investment grade credit rating gross debt $666M with net cash position $92M Net Debt to Capitalization – N/A Credit Rating Agency Overview S&P Moody’s Long-Term BBB+/stable not rated Short-Term A-2/stable P-2/stable * (*) Leverage Ratio refers to Net debt/EBITDA, Non US GAAP measure (see reconciliation at end of presentation) * 0 10 20 30 40 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -4 0 4 8 12 16 Interest Coverage Policy > 2.75 times 0 1 2 3 4 5 6 Leverage Ratio Policy < 3 times ALV- Remarketing Senior Notes March 2012 - 17 |
ALV- Remarketing Senior Notes March 2012 - 18 739.2 647.2 400.0 59.2 107.2 43.3 37.5 0 100 200 300 400 500 600 700 800 Net Debt (3) Breakdown 2011 $ MM Net Cash: 92.0 (1) Notes 1. Pre adjustment for $19.1 MM of debt-related derivatives; total debt adjusted for DRD equals $666 MM 2. 2014 maturity post remarketing exercise 3. Net debt is a non GAAP measure (see reconciliation at the end of the presentation) Cash Net Debt Overview Total Debt Debt Maturity Profile $ MM 43.3 22.4 298.8 208.3 110.0 125.0 165.0 59.2 107.2 2.9 10.5 1.7 127.9 0.0 0 50 100 150 200 250 300 350 400 Notes Issued as Part of Equity Units Medium-Term Notes Overdraft/Other Short-Term Debt US Private Placement Notes Other Long-Term Loans 2012 Maturities 2013 Maturities 2014 Maturities 2015 Maturities 2016 Maturities Later Maturities (2) |
ALV- Remarketing Senior Notes March 2012 - 19 0 0.1 0.2 0.3 0.4 0.5 0 10 20 30 40 50 M US$ $ / share Dividend per share Dividend Payments Dividend Payments Dividend Trend - per share vs. cash paid 1997 98 99 2000 01 02 03 04 05 06 07 08 09 2010 11 12 |
ALV- Remarketing Senior Notes March 2012 - 20 19.5 11.9 20.4 22.2 21.0 9.2 (2.3) 6.6 12.7 11.0 (15.0) (10.0) (5.0) 0.0 5.0 10.0 15.0 20.0 25.0 2007 2008 2009 2010 2011 % (*) US GAAP Margin* Performance Operating Margin Gross Margin Strong margins trend |
ALV- Remarketing Senior Notes March 2012 - 21 (*) US GAAP reported Operating Income and Net Income % Returns* Performance Strong returns trend 18.9 31.5 27.4 15.7 (6.7) 10.6 24.9 19.2 (3.1) 13.9 (15.0) (5.0) 5.0 15.0 25.0 35.0 2007 2008 2009 2010 2011 Return on Capital Employed Return on Equity |
Our Response to the Uncertain Macro Situation - flexibility, liquidity and market presence PERSONNEL COST STRUCTURE LIQUIDITY SALES ALV- Remarketing Senior Notes March 2012 - 22 |
ALV- Remarketing Senior Notes March 2012 - 23 Financial Outlook Q1 2012 FY2012 Sales Organic nearly 5% ~ 7 % Acquisitions 0% 0% Fx* ~ (3%) ~ (3%) Consolidated Sales ~ 2% nearly 4% Operating Margin ** ~ 10% 10-11% (*) 1 Euro = 1.28 US$, 1 US$ = 77 JPY for Q1 & FY2012 (**) Excludes legal costs & other charges related to the on- going anti-trust investigations and alignment costs double-digit margins should continue |
ALV- Remarketing Senior Notes March 2012 - 24 Autoliv Every year, Autoliv’s products save over 25,000 lives Passive Safety |
ALV- Remarketing Senior Notes March 2012 - 25 Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP In this document we sometimes refer to non-U.S. GAAP measures that we and securities analysts use in measuring Autoliv’s performance. We believe that these measures assist investors and management in analyzing trends in the Company’s business for the reasons given below. Investors should not consider these non-U.S. GAAP measures as substitutes, but rather as additions, to financial reporting measures prepared in accordance with U.S. GAAP. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.` Operating Working Capital Net (Cash) Debt December 31 2011 September 30 2011 June 30 2011 March 31 2011 December 31 2010 Total current assets $3000.3 $2,943.3 $2,979.6 $3,024.6 $2,688.6 Total current liabilities (2,085.9) (1,983.5) (2,074.7) (2,047.8) (1,834.5) Working capital 914.4 959.8 904.9 976.8 854.1 Cash and cash equivalents (739.2) (630.7) (559.7) (605.2) (587.1) Short-term debt 302.8 221.8 205.9 107.1 87.1 Derivative asset and liability current (4.0) (15.5) 8.0 (4.1) (0.7) Dividends payable 40.2 40.2 40.2 38.3 35.6 Operating working capital $514.2 $575.6 $599.3 $512.9 $388.4 December 31 2011 September 30 2011 June 30 2011 March 31 2011 December 31 2010 Short-term debt $302.8 $221.8 $205.9 $107.1 $87.1 Long-term debt 363.5 480.2 487.9 639.9 637.7 Total debt 666.3 702.0 693.8 747.0 724.8 Cash and cash equivalents (739.2) (630.7) (559.7) (605.2) (587.7) Debt-related derivatives (19.1) (30.8) (2.3) (12.4) (10.0) Net (cash) debt $(92.0) $40.5 $131.8 $129.4 $127.1 |
ALV- Remarketing Senior Notes March 2012 - 26 Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP (cont’d) 2011 Interest Coverage Ratio & Leverage Ratio Interest coverage ratio Leverage ratio Full year 2011 December 31, 2011 Operating income $889.2 Net debt (cash) (3) ($92.0) Amortization of intangibles (1) 18.6 Pension liabilities 193.1 Operating profit per the Policy $907.8 Less: Debt portion of equity units (107.2) Debt (cash) per the Policy ($6.1) Income before income taxes $828.3 Interest expense net (2) $63.3 Plus: Interest expense net (2) 63.3 Depreciation and amortization of intangibles (1) 268.3 EBITDA per the Policy $1,159.9 Interest coverage ratio 14.3 Leverage ratio 0.0 Notes 1. Including impairment write-offs, if any 2. Interest expense, net is interest expense including cost for extinguishment of debt less interest income 3. Net debt (cash) is short- and long-term debt and debt-related derivatives less cash and cash equivalents 2010 Interest Coverage Ratio & Leverage Ratio Interest coverage ratio Leverage ratio Full year 2010 December 31, 2010 Operating income $869.2 Net debt (cash) (3) $127.1 Amortization of intangibles (1) 18.0 Pension liabilities 136.0 Operating profit per the Policy $887.2 Less: Debt portion of equity units (100.2) Debt (cash) per the Policy $162.9 Income before income taxes $805.5 Interest expense net (2) $63.1 Plus: Interest expense net (2) 63.1 Depreciation and amortization of intangibles (1) 281.7 EBITDA per the Policy $1,150.3 Interest coverage ratio 14.1 Leverage ratio 0.1 |