Issue: Jun 2018


Autoliv and Veoneer hold Investor Day ahead of spin-off



by Clinton Wright

Autoliv, Inc. (NYSE: ALV and SSE: ALIVsdb), the worldwide leader in automotive safety systems, will hold an Investor Day in Stockholm ahead of the spin-off of Veoneer, the trusted partner in mobility, which is to be completed on June 29, 2018 at which time Autoliv and Veoneer will become two independently listed companies, with the first day of trading of Veoneer common stock and SDRs planned for July 2, 2018.

 

During the Investor Day members of management of Autoliv and Veoneer will outline corporate strategy, operational strengths, technologies and innovation roadmaps and financial plans for their respective companies as stand-alone companies.

 

“The strategy is to build two companies focused on and dedicated to their respective markets, which we believe will unlock substantial additional value. I look forward to seeing both companies prosper on their own,” said Jan Carlson, Chairman, President and CEO of Autoliv (from June 29, President and CEO of Veoneer).

 

Autoliv Highlights

 

“Autoliv is the undisputed market leader in passive safety. The spin-off of the electronics business provides a great opportunity for us to build on this rich heritage and create an even stronger, more focused company for the future.” said Mikael Bratt, President Passive Safety (from June 29, President and CEO of Autoliv).

 

Fully focused on delivering on our 2020 targets.

 

-        Reiterating our 2020 targets of more than $10 billion in sales and an adjusted operating margin* of around 13%.

 

Balance Sheet strength.

 

-        After providing Veoneer with total cash liquidity of approximately $1.0 billion, Autoliv estimates its leverage ratio* of net debt* to EBITDA will be approximately 1.5x at the time of the completion of the spin-off. Adjusted for any discrete items, we aim to be close to our leverage ratio* target of 1x by end of 2019.

 

Long term sustainable market growth.

 

-        The passive safety market is expected to grow on average about 3% annually until 2025, based on approximately 2% average annual growth for light vehicle production and higher penetration rates for passive safety products. Long term we see additional growth from opportunities for more advanced airbag and seatbelt solutions for the future car with new seating configurations.

 

Autoliv has the tools to maintain its new market position.

 

-        Based on 50% or more order intake over the past three years, we look forward to significant sales and market share growth over the next few years. We have the tools to maintain our new position through flawless preparation and execution of the wave of orders, being close to our customers and staying ahead of our competitors with innovative solutions while exploring new avenues for growth.

 

Operational excellence is Autoliv’s DNA.

 

-        Our relentless focus on quality, robustness and operational excellence are key strengths which are at the core of our market leadership, quality leadership and business momentum.

 

Selected historical financial data for Autoliv Continuing Operations is attached as an appendix to this press release. Downloadable excel files of the financial data can be found on www.autoliv.com/investors.

 

Veoneer Highlights

 

“We are creating a trusted technology company for the mobility industry with an unparalleled history and track record in automotive safety. Veoneer is at the center of the revolution that is taking place in the automotive industry,” said Jan Carlson, President and CEO of Veoneer.

 

Exceptional technology growth opportunity.

 

-        The total available market of $43 billion by 2025, indicating a 10% annual growth rate (CAGR). Also in 2025 it is expected that the average active safety content in every vehicle produced will be around $225, five times more than today. Veoneer also sees a potential upside to the 2025 active safety market of an additional $6 billion, leading to a 2025 active safety sales ambition of more than $4 billion, up slightly from the previous estimate of around $4 billion.

 

Focused on long term value creation.

 

-        7,600 associates in Veoneer whereof 2,400 are software engineers, support Veoneer’s long-term focus on strong growth, cash flow generation and double digit operating margins. In support of this growth and development toward profitability, Veoneer expects high RD&E investments to continue and CAPEX levels to be in the high single digits, until 2020.

 

A technology company dedicated to safety, advanced driver assistance and autonomous driving.

 

-        Veoneer’s products are already installed in around 175 car models. More than 30 million radars, around 4 million camera products and around 750 million airbag controllers have been delivered and the pace is accelerating.

 

Proven track record and heritage in automotive safety.

 

-        Record $1.1 billion annual order intake over the last twelve months (up 48% from previous last twelve months) supports 2020 sales target of around $3 billion and around $4 billion by 2022.

 

Focus on software

 

-        Software and combinations of software and hardware will play an ever increasing role in the future of Veoneer and through in-house development, partnerships and acquisitions, Veoneer is well positioned to capture value from this trend. Veoneer has already collected more than 15 petabytes of data from more than 100 test vehicles on the road.

 

Both companies also reiterated financial targets originally set forth at Autoliv’s capital markets day held in September 2017.

 

The event will be webcast. All presentations from management at the Investor Day will be made available on www.autoliv.com <http://www.autoliv.com/>  under Investors – Presentations & Transcripts from 08.00 CET on May 31, 2018.

 

Autoliv and Veoneer will also host an Investor Day on June 4, 2018 in New York. The presentations used at the Investor Day in Sweden will be used for the Investor Day in New York.

 

This information is information that Autoliv, Inc. is obliged to make 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 below, at 08.00 CET on May 31, 2018.

 

* Excluding costs for capacity alignments and antitrust related matters.



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