Consolidated sales

Third quarter

Reported
(U.S. GAAP)

Currency
effects¹⁾

Organic
change*

(Dollars in millions)

2020

2019

Airbag Products and Other²⁾

$1,331.6

$1,349.3

(1.3)%

(0.1)%

(1.2)%

Seatbelt Products²⁾

$705.6

$678.4

4.0%

0.3%

3.7%

Total

$2,037.2

$2,027.7

0.5%

0.1%

0.4%

Asia

$806.2

$777.7

3.7%

0.4%

3.3%

Whereof:              

China

$425.2

$381.7

11.4%

1.0%

10.4%

Japan

$180.3

$202.4

(10.9)%

0.9%

(11.8)%

RoA

$200.7

$193.6

3.7%

(1.4)%

5.1%

Americas

$693.3

$713.1

(2.8)%

(4.0)%

1.2%

Europe

$537.7

$536.9

0.1%

4.9%

(4.8)%

Total

$2,037.2

$2,027.7

0.5%

0.1%

0.4%

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

Q3 2020 organic growth*

Americas

Europe

China

Japan

Rest of Asia

Global

Autoliv

1.2%

(4.8)%

10.4%

(11.8)%

5.1%

0.4%

Main growth drivers

Tesla, Toyota, VW

PSA, Toyota

GM, VW, Honda

Suzuki, Toyota, Honda

Hyundai/Kia, GM, Tata

Toyota, Tesla, GM, VW

Main decline drivers

Inflators, Nissan, FCA

Daimler, Renault, BMW

Daimler, Nissan, Mitsubishi

Mitsubishi, Nissan, Mazda

Mitsubishi, Toyota

Mitsubishi, Nissan, Daimler, Inflators

Q3 2020

Americas

Europe

China

Japan

Rest of Asia

Global

IHS LVP (Oct 2020)

(4.3)%

(7.6)%

8.7%

(11.8)%

(16.8)%

(4.3)%

IHS LVP (July 2020)

(7.0)%

(9.3)%

(4.8)%

(19.9)%

(28.0)%

(11.8)%

Consolidated sales

First 9 months

Reported
(U.S. GAAP)

Currency
effects¹⁾

Organic
change*

(Dollars in millions)

2020

2019

Airbag Products and Other²⁾

$3,187.5

$4,232.7

(24.7)%

(1.8)%

(22.9)%

Seatbelt Products²⁾

$1,743.1

$2,123.7

(17.9)%

(2.1)%

(15.8)%

Total

$4,930.6

$6,356.4

(22.4)%

(1.9)%

(20.5)%

Asia

$1,991.2

$2,286.1

(12.9)%

(1.3)%

(11.6)%

Whereof:          

China

$989.1

$1,061.7

(6.8)%

(1.8)%

(5.0)%

Japan

$487.9

$601.6

(18.9)%

1.4%

(20.3)%

RoA

$514.2

$622.8

(17.4)%

(2.9)%

(14.5)%

Americas

$1,578.9

$2,214.2

(28.7)%

(3.5)%

(25.2)%

Europe

$1,360.5

$1,856.1

(26.7)%

(0.8)%

(25.9)%

Total

$4,930.6

$6,356.4

(22.4)%

(1.9)%

(20.5)%

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

First nine months 2020 organic growth*

Americas

Europe

China

Japan

Rest of Asia

Global

Autoliv

(25.2)%

(25.9)%

(5.0)%

(20.3)%

(14.5)%

(20.5)%

Main growth drivers

Tesla, Mazda

Inflators

GM, Ford, Toyota

Suzuki, Honda

GM, Renault

Tesla

Main decline drivers

FCA, Honda, Nissan, Inflators

Daimler, VW, Renault, BMW

Nissan, Great Wall, Inflators

Mitsubishi, Nissan, Mazda

Mitsubishi, Suzuki, Toyota

FCA, Nissan, Daimler, Honda, Inflators

First nine months 2020

Americas

Europe

China

Japan

Rest of Asia

Global

IHS LVP (Oct 2020)

(29.5)%

(29.5)%

(10.5)%

(21.9)%

(31.3)%

(23.9)%

IHS LVP (Jan 2020)

0.9%

(2.6)%

(1.2)%

(3.7)%

(2.6)%

(1.6)%

Cadillac Escalade

Mercedes S-Class

VW ID.3

Citroen C4

Hyundai Tucson

Nissan Rogue/X-Trail

Ford F-150

Ford Bronco

Ford Mustang Mach-E

Driver/Passenger airbags

Seatbelts

Side airbags

Head/Inflatable Curtain airbags

Steering Wheel

Knee Airbag

Front Center Airbag

Bag In Belt

Pyrotechnical Safety Switch

Condensed income statement

Third quarter

First 9 months

(Dollars in millions, except per share data)

2020

2019

Change

2020

2019

Change

Net sales

$2,037.2

$2,027.7

0.5%

$4,930.6

$6,356.4

(22.4)%

Cost of sales

$(1,637.5)

$(1,648.6)

(0.7)%

$(4,185.5)

$(5,198.8)

(19.5)%

Gross profit

$399.7

$379.1

5.4%

$745.1

$1,157.6

(35.6)%

S,G&A

$(91.7)

$(97.7)

(6.1)%

$(283.7)

$(300.2)

(5.5)%

R,D&E, net

$(101.6)

$(99.1)

2.5%

$(292.2)

$(323.5)

(9.7)%

Amortization of intangibles

$(2.4)

$(2.9)

(17.2)%

$(7.5)

$(8.6)

(12.8)%

Other income (expense), net

$(29.5)

$(25.6)

15.2%

$(86.4)

$(28.8)

200.0%

Operating income

$174.5

$153.8

13.5%

$75.3

$496.5

(84.8)%

Adjusted operating income¹⁾

$205.6

$182.5

12.7%

$170.2

$532.1

(68.0)%

Financial and non-operating items, net

$(26.0)

$(19.4)

34.0%

$(62.0)

$(57.7)

7.5%

Income before taxes

$148.5

$134.4

10.5%

$13.3

$438.8

(97.0)%

Tax rate

33.5%

36.0%

(2.5)pp

104.4%

30.1%

74.3pp

Net income (loss)

$98.8

$86.0

14.9%

$(0.6)

$306.9

(100.2)%

Earnings per share^{2, 3)}

$1.12

$0.98

14.3%

$(0.02)

$3.50

(100.6)%

Adjusted earnings per share^{1, 2, 3)}

$1.48

$1.30

13.8%

$0.95

$3.87

(75.5)%

Gross margin

19.6%

18.7%

0.9pp

15.1%

18.2%

(3.1)pp

S,G&A % of sales

(4.5)%

(4.8)%

(0.3)pp

(5.8)%

(4.7)%

1.1pp

R,D&E, net % of sales

(5.0)%

(4.9)%

0.1pp

(5.9)%

(5.1)%

0.8pp

Operating margin

8.6%

7.6%

1.0pp

1.5%

7.8%

(6.3)pp

Adjusted operating margin¹⁾

10.1%

9.0%

1.1pp

3.5%

8.4%

(4.9)pp

1) Non-U.S. GAAP measure, excluding costs for capacity alignment, antitrust related matters and in 2019 separation of our business segments. See reconciliation table. 2) Assuming dilution when applicable and net of treasury shares. 3) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation.

Selected Balance Sheet items

Third quarter

(Dollars in millions)

2020

2019

Change

Operating working capital

$379.3

$619.5

(38.8)%

Operating working capital % of sales¹⁾

5.3%

7.2%

(1.9)pp

Cash & cash equivalents

$1,476.5

$334.4

341.5%

Gross Debt²⁾

$3,032.6

$2,105.0

44.1%

Net Debt³⁾

$1,573.1

$1,781.3

(11.7)%

Total equity

$2,113.3

$1,999.3

5.7%

Leverage ratio⁴⁾

2.4

1.8

33.3%

1) Latest 12 months of net sales. 2) Short- and long-term interest-bearing debt. 3) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. Non U.S. GAAP measure. See reconciliation table. 4) Net debt adjusted for pension liabilities in relation to EBITDA. Non U.S. GAAP measure. See reconciliation table.

Selected Cash Flow items

Third quarter

First 9 months

(Dollars in millions)

2020

2019

Change

2020

2019

Change

Net income (loss)

$98.8

$86.0

14.9%

$(0.6)

$306.9

(100.2)%

Changes in operating assets and liabilities

$137.8

$16.4

740.2%

$163.2

$(37.8)

531.7%

Depreciation and amortization

$92.8

$84.1

10.3%

$268.1

$260.1

3.1%

Other, net¹⁾

$22.8

$8.8

159.1%

$(50.7)

$(200.8)

(74.8)%

Operating cash flow

$352.2

$195.3

80.3%

$380.0

$328.4

15.7%

Capital expenditure, net

$(76.4)

$(122.3)

(37.5)%

$(228.5)

$(358.1)

(36.2)%

Free cash flow²⁾

$275.8

$73.0

277.8%

$151.5

$(29.7)

(610.1)%

Cash conversion³⁾

279.1%

84.9%

194.2pp

n/a

n/a

n/a

Dividends paid

–

$(54.2)

(100.0)%

$(54.1)

$(162.7)

(66.7)%

1) For first 9 months 2019 including EC antitrust non-cash provision and payment. 2) Operating cash flow less Capital expenditures, net. Non-U.S. GAAP measure. See enclosed reconciliation table. 3) Free cash flow relative to Net income. Non U.S. GAAP measure. See reconciliation table. The comparative cash conversion for first 9 months 2019 has been adjusted to n/a from that previously published. This is to align with the current period methodology applied that cash conversion is not applicable when the free cash flow or net income is negative in a period.

Sep 30, 2020

Jun 30, 2020

Sep 30, 2019

Headcount

65,289

61,767

64,868

Whereof:  Direct workers in manufacturing

72%

70%

71%

             Best cost countries

81%

81%

80%

             Temporary personnel

9%

6%

9%

Third quarter

First 9 months

Latest 12

Full Year      

2020

2019

2020

2019

months

2019

Income Statement

Earnings per share, basic¹⁾

$1.13

$0.98

$(0.02)

$3.51

$1.76

$5.29

Earnings per share, diluted^{1, 2)}

$1.12

$0.98

$(0.02)

$3.50

$1.76

$5.29

Gross margin, %³⁾

19.6

18.7

15.1

18.2

16.5

18.5

Adjusted operating margin, %⁴⁾

10.1

9.0

3.5

8.4

5.8

9.1

R,D&E net in relation to sales, %

(5.0)

(4.9)

(5.9)

(5.1)

(5.3)

(4.7)

Balance Sheet

Operating working capital in relation to sales, %⁵⁾

5.3

7.2

5.3

7.2

5.3

6.6

Capital employed, $ in millions⁶⁾

3,686

3,781

3,686

3,781

3,686

3,772

Return on total equity, %⁷⁾

19.4

17.1

0.0

20.7

7.6

23.1

Return on capital employed, %⁸⁾

18.7

16.2

2.7

18.0

8.2

19.7

Cash dividend paid per share

–

$0.62

$0.62

$1.86

$1.24

$2.48

Net debt, $ in millions⁹⁾

1,573

1,781

1,573

1,781

1,573

1,650

Leverage ratio¹⁰⁾

2.4

1.8

2.4

1.8

2.4

1.7

Days receivables outstanding¹¹⁾

73

75

90

72

84

70

Days inventory outstanding¹²⁾

36

37

45

35

41

35

Cash flow Statement

Operating Cash flow, $ in millions

352.2

195.3

380.0

328.4

692.3

640.7

Depreciation and amortization, $ in millions

92.8

84.1

268.1

260.1

358.6

350.6

Capital expenditures, net in relation to sales, %

(3.8)

(6.0)

(4.6)

(5.6)

(4.9)

(5.6)

Free Cash flow, $ in millions¹³⁾

275.8

73.0

151.5

(29.7)

345.8

164.6

Cash conversion, %¹⁴⁾

279.1

84.9

n/a

n/a

222.7

35.6

Direct shareholder return, $ in millions¹⁵⁾

–

(54.2)

(54.1)

(162.7)

(108.4)

(217.0)

Other

No. of shares at period-end in millions¹⁶⁾

87.3

87.2

87.3

87.2

87.3

87.2

Weighted average no. of shares in millions²⁾

87.5

87.3

87.3

87.4

87.4

87.3

1) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation. 2) Assuming dilution when applicable and net of treasury shares. 3) Gross profit relative to sales. 4) Excluding costs for capacity alignment, antitrust related matters and in 2019 separation of our business segments. Non-U.S. GAAP measure. See reconciliation table. 5) Latest 12 months of net sales. 6) Total equity and net debt. 7) Annualized net income relative to average total equity. 8) Annualized operating income and income from equity method investments, relative to average capital employed. 9) Non-U.S. GAAP measure. See reconciliation table. 10) Net debt adjusted for pension liabilities in relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table. 11) Outstanding receivables relative to average daily sales. 12) Outstanding inventory relative to average daily sales. 13) Operating cash flow less Capital expenditures, net. Non-U.S. GAAP measure. See reconciliation table. 14) Free cash flow relative to Net income. Non-U.S. GAAP measure. See reconciliation table. The comparative cash conversion for first 9 months 2019 has been adjusted to n/a from that previously published. This is to align with the current period methodology applied that cash conversion is not applicable when the free cash flow or net income is negative in a period. 15) Dividends paid and Shares repurchased. 16) Excluding dilution when applicable and net of treasury shares.

(Dollars in millions, except per share data)

Third quarter

First 9 months

Latest 12

Full Year

(Unaudited)

2020

2019

2020

2019

months

2019

Airbag and Other products¹⁾

$1,331.6

$1,349.3

$3,187.5

$4,232.7

$4,631.1

$5,676.3

Seatbelt products¹⁾

705.6

678.4

1,743.1

2,123.7

2,490.7

2,871.3

Total net sales

$2,037.2

$2,027.7

$4,930.6

$6,356.4

$7,121.8

$8,547.6

Cost of sales

(1,637.5)

(1,648.6)

(4,185.5)

(5,198.8)

(5,949.9)

(6,963.2)

Gross profit

$399.7

$379.1

$745.1

$1,157.6

$1,171.9

$1,584.4

Selling, general & administrative expenses

(91.7)

(97.7)

(283.7)

(300.2)

(382.4)

(398.9)

Research, development & engineering expenses, net

(101.6)

(99.1)

(292.2)

(323.5)

(374.2)

(405.5)

Amortization of intangibles

(2.4)

(2.9)

(7.5)

(8.6)

(10.4)

(11.5)

Other income (expense), net

(29.5)

(25.6)

(86.4)

(28.8)

(100.3)

(42.7)

Operating income

$174.5

$153.8

$75.3

$496.5

$304.6

$725.8

Income from equity method investments

0.7

0.4

1.0

1.6

1.4

2.0

Interest income

1.1

0.7

3.7

2.7

4.6

3.6

Interest expense

(21.2)

(17.1)

(53.3)

(52.6)

(70.2)

(69.5)

Other non-operating items, net

(6.6)

(3.4)

(13.4)

(9.4)

(17.5)

(13.5)

Income before income taxes

$148.5

$134.4

$13.3

$438.8

$222.9

$648.4

Income taxes

(49.7)

(48.4)

(13.9)

(131.9)

(67.6)

(185.6)

Net income (loss)

$98.8

$86.0

$(0.6)

$306.9

$155.3

$462.8

Less: Net income attributable to non-controlling interest

0.5

0.6

1.0

1.0

1.3

1.3

Net income (loss) attributable to controlling interest

$98.3

$85.4

$(1.6)

$305.9

$154.0

$461.5

Earnings per share^{2, 3)}

$1.12

$0.98

$(0.02)

$3.50

$1.76

$5.29

1) Including Corporate and other sales. 2) Assuming dilution when applicable and net of treasury shares. 3) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from EPS calculation.

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions, unaudited)

2020

2020

2020

2019

2019

Assets

Cash & cash equivalents

$1,476.5

$1,223.2

$907.2

$444.7

$334.4

Receivables, net

1,615.7

1,179.5

1,428.1

1,626.7

1,656.2

Inventories, net

713.8

757.8

771.6

740.9

731.8

Other current assets

230.5

222.4

200.1

189.8

186.4

Total current assets

$4,036.5

$3,382.9

$3,307.0

$3,002.1

$2,908.8

Property, plant & equipment, net

1,779.1

1,753.1

1,749.5

1,815.7

1,747.9

Investments and other non-current assets

475.6

486.3

367.1

386.4

371.1

Operating leases right-of-use assets

137.3

150.0

148.5

156.8

154.1

Goodwill assets

1,389.6

1,385.0

1,382.4

1,387.9

1,383.3

Intangible assets, net

15.3

17.2

19.4

22.3

24.3

Total assets

$7,833.4

$7,174.5

$6,973.9

$6,771.2

$6,589.5

Liabilities and equity

Short-term debt¹⁾

$1,025.5

$492.9

$318.8

$368.1

$289.9

Accounts payable

912.4

615.7

862.5

950.6

900.2

Operating lease liabilities, current

35.9

36.7

35.9

37.8

37.7

Other current liabilities

1,247.5

1,006.7

1,009.0

1,053.7

1,077.0

Total current liabilities

$3,221.3

$2,152.0

$2,226.2

$2,410.2

$2,304.8

Long-term debt¹⁾

2,007.1

2,567.0

2,209.4

1,726.1

1,815.1

Pension liability

239.2

235.7

231.8

240.2

199.9

Operating lease liabilities, non-current

102.0

114.4

113.4

119.4

117.0

Other non-current liabilities

150.5

150.4

149.0

152.9

153.4

Total non-current liabilities

$2,498.8

$3,067.5

$2,703.6

$2,238.6

$2,285.4

Total parent shareholders’ equity

2,099.8

1,941.5

2,031.0

2,109.2

1,986.7

Non-controlling interest

13.5

13.5

13.1

13.2

12.6

Total equity

$2,113.3

$1,955.0

$2,044.1

$2,122.4

$1,999.3

Total liabilities and equity

$7,833.4

$7,174.5

$6,973.9

$6,771.2

$6,589.5

Third quarter

First 9 months

Latest 12

Full Year

(Dollars in millions, unaudited)

2020

2019

2020

2019

months

2019

Net income (loss)

$98.8

$86.0

$(0.6)

$306.9

$155.3

$462.8

Depreciation and amortization

92.8

84.1

268.1

260.1

358.6

350.6

Other, net¹⁾

22.8

8.8

(50.7)

(200.8)

(69.8)

(219.9)

Changes in operating assets and liabilities

137.8

16.4

163.2

(37.8)

248.2

47.2

Net cash provided by operating activities

$352.2

$195.3

$380.0

$328.4

$692.3

$640.7

Capital expenditures, net

(76.4)

(122.3)

(228.5)

(358.1)

(346.5)

(476.1)

Net cash used in investing activities

$(76.4)

$(122.3)

$(228.5)

$(358.1)

$(346.5)

$(476.1)

Net cash before financing²⁾

$275.8

$73.0

$151.5

$(29.7)

$345.8

$164.6

Net decrease in short-term debt³⁾

(55.7)

(58.6)

(197.7)

(309.4)

(252.4)

(364.1)

Net (decrease) increase in long-term debt³⁾

–

(1.7)

1,090.6

243.5

1,090.6

243.5

Debt issuance costs

–

–

–

(0.3)

–

(0.3)

Dividends paid

–

(54.2)

(54.1)

(162.7)

(108.4)

(217.0)

Common stock options exercised

–

0.1

0.2

0.3

0.8

0.9

Dividend paid to non-controlling interests

(1.0)

(1.1)

(1.0)

(1.1)

(1.0)

(1.1)

Net cash (used in) provided by financing activities

$(56.7)

$(115.5)

$838.0

$(229.7)

$729.6

$(338.1)

Effect of exchange rate changes on cash

34.2

(29.5)

42.3

(22.0)

66.7

2.4

Increase (decrease) in cash and cash equivalents

$253.3

$(72.0)

$1,031.8

$(281.4)

$1,142.1

$(171.1)

Cash and cash equivalents at period-start

1,223.2

406.4

444.7

615.8

334.4

615.8

Cash and cash equivalents at period-end

$1,476.5

$334.4

$1,476.5

$334.4

$1,476.5

$444.7

1) Mainly related to EC antitrust payment in Q2 2019. 2) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliation table. 3) As of September 30, 2020, $600 million of the revolving credit facility loan was classified as short-term debt in Balance Sheet since it was repaid on October 2, 2020.

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions)

2020

2020

2020

2019

2019

Total current assets

$4,036.5

$3,382.9

$3,307.0

$3,002.1

$2,908.8

Total current liabilities

(3,221.3)

(2,152.0)

(2,226.2)

(2,410.2)

(2,304.8)

Working capital

$815.2

$1,230.9

$1,080.8

$591.9

$604.0

Cash and cash equivalents

(1,476.5)

(1,223.2)

(907.2)

(444.7)

(334.4)

Short-term debt

1,025.5

492.9

318.8

368.1

289.9

Derivative asset and liability, current

15.1

(2.6)

4.4

(4.2)

5.9

Dividends payable¹⁾

–

–

54.1

54.1

54.1

Operating working capital

$379.3

$498.0

$550.9

$565.2

$619.5

1) As of April 2, 2020, the dividend payable in Mar 31, 2020 was cancelled.

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

(Dollars in millions)

2020

2020

2020

2019

2019

Short-term debt

$1,025.5

$492.9

$318.8

$368.1

$289.9

Long-term debt

2,007.1

2,567.0

2,209.4

1,726.1

1,815.1

Total debt

$3,032.6

$3,059.9

$2,528.2

$2,094.2

$2,105.0

Cash & cash equivalents

(1,476.5)

(1,223.2)

(907.2)

(444.7)

(334.4)

Debt issuance cost/Debt-related derivatives, net

17.0

1.2

8.5

0.3

10.7

Net debt

$1,573.1

$1,837.9

$1,629.5

$1,649.8

$1,781.3

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2018

2017

2016

2015

Short-term debt

$620.7

$19.7

$216.3

$39.6

Long-term debt

1,609.0

1,310.7

1,312.5

1,499.4

Total debt

$2,229.7

$1,330.4

$1,528.8

$1,539.0

Cash & cash equivalents

(615.8)

(959.5)

(1,226.7)

(1,333.5)

Debt issuance cost/Debt-related derivatives, net

4.9

(2.5)

(3.4)

(3.9)

Net debt

$1,618.8

$368.4

$298.7

$201.6

Sep 30

Dec 31

Sep 30

(Dollars in millions)

2020

2019

2019

Net debt¹⁾

$1,573.1

$1,649.8

$1,781.3

Pension liabilities

239.2

240.2

199.9

Debt per the Policy

$1,812.3

$1,890.0

$1,981.2

Net income²⁾

155.3

462.8

216.1

Less; Net loss, Discontinued Operations²⁾

–

–

(2.0)

Net income, Continuing Operations²⁾

$155.3

$462.8

$214.1

Income taxes²⁾

67.6

185.6

226.8

Interest expense, net^{2, 3)}

65.6

65.9

67.0

Depreciation and amortization of intangibles²⁾

358.6

350.6

348.8

Antitrust related matters, capacity alignments and separation costs^{2, 4)}

107.8

48.6

254.5

EBITDA per the Policy (Adjusted EBITDA)

$754.9

$1,113.5

$1,111.2

Leverage ratio

2.4

1.7

1.8

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) No separation costs LTM Sep 30, 2020.

Third quarter

First 9 months

Latest 12

Full Year

(Dollars in millions)

2020

2019

2020

2019

months

2019

Net income

$98.8

$86.0

$(0.6)

$306.9

$155.3

$462.8

Changes in operating assets and liabilities

137.8

16.4

163.2

(37.8)

248.2

47.2

Depreciation and amortization

92.8

84.1

268.1

260.1

358.6

350.6

Other, net¹⁾

22.8

8.8

(50.7)

(200.8)

(69.8)

(219.9)

Operating cash flow

$352.2

$195.3

$380.0

$328.4

$692.3

$640.7

EC antitrust payment

–

–

–

(203)

–

(203)

Operating cash flow excl antitrust payment

$352.2

$195.3

$380.0

$531.4

$692.3

$843.7

Capital expenditure, net

(76.4)

(122.3)

(228.5)

(358.1)

(346.5)

(476.1)

Free cash flow²⁾

$275.8

$73.0

$151.5

$(29.7)

$345.8

$164.6

Free cash flow excl antitrust payment³⁾

$275.8

$73.0

$151.5

$173.3

$345.8

$367.6

Net cash before financing

$275.8

$73.0

$151.5

$(29.7)

$345.8

$164.6

Cash conversion⁴⁾

279.1%

84.9%

n/a

n/a

222.7%

35.6%

Cash conversion excl antitrust payment⁵⁾

279.1%

84.9%

n/a

56.5%

222.7%

79.4%

1) Mainly related to EC antitrust payment in Q2 2019. 2) Operating cash flow less Capital expenditures, net. 3) Operating cash flow excl EC antitrust payment less Capital expenditures, net. 4) Free cash flow relative to Net income. The comparative cash conversion for first 9 months 2019 has been adjusted to n/a from that previously published. This is to align with the current period methodology applied that cash conversion is not applicable when the free cash flow or net income is negative in a period. 5) Free cash flow excl EC antitrust payment relative to Net income.

Full year

Full year

Full year

Full year

(Dollars in millions)

2018¹⁾

2017¹⁾

2016¹⁾

2015¹⁾

Net income

$183.7

$303.0

$561.6

$457.5

Changes in operating assets and liabilities

(229.3)

(0.3)

(77.8)

(26.1)

Depreciation and amortization

397.1

425.8

383.0

319.1

Goodwill impairment charges

–

234.2

–

–

Other, net⁴⁾

239.1

(26.8)

1.6

0.0

Operating cash flow

$590.6

$935.9

$868.4

$750.5

Capital expenditure, net

(554.8)

(569.6)

(498.6)

(449.6)

Free cash flow²⁾

$35.8

$366.3

$369.8

$300.9

Acquisitions of businesses and other, net

(72.9)

(127.7)

(227.4)

(141.5)

Net cash before financing

$(37.1)

$238.6

$142.4

$159.4

Cash conversion³⁾

19.5%

120.9%

65.8%

65.8%

1) Including Discontinued Operations. 2) Operating cash flow less Capital expenditures, net. 3) Free cash flow relative to Net income. 4) For full year 2018 including EC antitrust non-cash provision. 

Third quarter 2020

Third quarter 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

$174.5

$31.1

$205.6

$153.8

$28.7

$182.5

Operating margin, %

8.6

1.5

10.1

7.6

1.4

9.0

Income before taxes

$148.5

$31.1

$179.6

$134.4

$28.7

$163.1

Net income attributable to controlling interest

$98.3

$31.1

$129.4

$85.4

$28.3

$113.7

Return on capital employed, %²⁾

18.7

3.0

21.7

16.2

2.9

19.1

Return on total equity, %³⁾

19.4

5.3

24.7

17.1

5.4

22.5

Earnings per share^{4, 5)}

$1.12

$0.36

$1.48

$0.98

$0.32

$1.30

1) Costs for capacity alignment, antitrust related matters and in 2019 separation of our business segments. 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 when applicable and net of treasury shares. 5) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation.

First 9 months 2020

First 9 months 2019

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Operating income

$75.3

$94.9

$170.2

$496.5

$35.6

$532.1

Operating margin, %

1.5

2.0

3.5

7.8

0.6

8.4

Income before taxes

$13.3

$94.9

$108.2

$438.8

$35.6

$474.4

Net income attributable to controlling interest

$(1.6)

$85.0

$83.4

$305.9

$32.6

$338.5

Capital employed

$3,686

$85

$3,771

$3,781

$32

$3,813

Return on capital employed, %²⁾

2.7

3.4

6.1

18.0

1.3

19.3

Return on total equity, %³⁾

0.0

5.4

5.4

20.7

2.1

22.8

Earnings per share^{4, 5)}

$(0.02)

$0.97

$0.95

$3.50

$0.37

$3.87

Total parent shareholders' equity per share

$24.05

$0.97

$25.02

$22.78

$0.37

$23.15

1) Costs for capacity alignment, antitrust related matters and in 2019 separation of our business segments. 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 when applicable and net of treasury shares. 5) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation.

Latest 12 months

Full year 2019

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Operating income

$304.6

$107.8

$412.4

$725.8

$48.6

$774.4

Operating margin, %

4.3

1.5

5.8

8.5

0.6

9.1

1) Costs for capacity alignment, antitrust related matters and separation of our business segments.

Full year 2018

Full year 2017

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Operating income

$686.0

$222.2

$908.2

$859.6

$39.7

$899.3

Operating margin, %

7.9

2.6

10.5

10.6

0.5

11.1

1) Costs for capacity alignment and antitrust related matters in 2017 and 2018, and separation of our business segments in 2018.

(Dollars in millions)

Full year 2016

Full year 2015

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments¹⁾

Non-U.S.
GAAP

Operating income

$831.0

$34.5

$865.5

$707.7

$166.4

$874.1

Operating margin, %

10.5

0.4

10.9

9.3

2.2

11.5

1) Costs for capacity alignment and antitrust related matters.

Items included in Non-U.S. GAAP adjustments

Third quarter 2020

Third quarter 2019

Adjustment
Millions

Adjustment
Per share

Adjustment
Millions

Adjustment
Per share

Capacity alignment

$30.9

$0.36

$27.4

$0.31

Antitrust related matters

0.2

0.00

0.1

0.00

Separation costs

–

–

1.2

0.01

Total adjustments to operating income

$31.1

$0.36

$28.7

$0.32

Tax on non-U.S. GAAP adjustments¹⁾

0.0

0.00

(0.4)

0.00

Total adjustments to net income

$31.1

$0.36

$28.3

$0.32

Average number of shares outstanding – diluted²⁾

87.4

87.3

Annualized adjustment on Return on capital employed

$124.4

$114.8

Adjustment return on capital employed, %

  3.0

  2.9

Annualized adjustment on Return on total equity

$124.4

$113.2

Adjustment return on total equity, %

  5.3

  5.4

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.

Items included in Non-GAAP adjustments

First 9 months 2020

First 9 months 2019

Adjustment
Millions

Adjustment
Per share

Adjustment
Millions

Adjustment
Per share

Capacity alignment

$94.4

$1.08

$40.5

$0.46

Antitrust related matters

0.5

0.01

(6.1)

(0.07)

Separation costs

–

–

1.2

0.01

Total adjustments to operating income

$94.9

$1.09

$35.6

$0.40

Tax on non-U.S. GAAP adjustments¹⁾

(9.9)

(0.12)

(3.0)

(0.03)

Total adjustments to Income from Continuing operations

$85.0

$0.97

$32.6

$0.37

Average number of shares outstanding – diluted²⁾

87.4

87.4

Annualized adjustment on Return on capital employed

$126.5

$47.5

Adjustment Return on Capital employed, %

3.4

1.3

Annualized adjustment on Return on total equity

$113.3

$43.5

Adjustment Return on Total equity, %

5.4

2.1

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)

2019

2018

2017

2016

2015

Sales and Income    

Net sales

$8,548

$8,678

$8,137

$7,922

$7,636

Airbag sales¹⁾

5,676

5,699

5,342

5,256

5,036

Seatbelt sales

2,871

2,980

2,794

2,665

2,599

Operating income

726

686

860

831

708

Net income attributable to controlling interest

462

376

586

558

443

Earnings per share (US$) – basic²⁾

5.29

4.32

6.70

6.33

5.03

Earnings per share (US$) – assuming dilution^{2, 3)}

5.29

4.31

6.68

6.32

5.02

Gross margin, %⁴⁾

18.5

19.7

20.6

20.6

20.5

R,D&E net in relation to sales, %

(4.7)

(4.8)

(4.6)

(4.5)

(4.1)

S,G &A net in relation to sales, %

(4.7)

(4.5)

(5.0)

(5.0)

(4.8)

Operating margin, %⁵⁾

8.5

7.9

10.6

10.5

9.3

Adjusted operating margin, %^{6, 7)}

9.1

10.5

11.1

10.9

11.5

Balance Sheet

Operating working capital

565

478

581

488

525

Days receivables outstanding⁸⁾

70

71

76

70

71

Days inventory outstanding⁹⁾

35

35

35

32

31

Total equity

2,122

1,897

4,169

3,926

3,468

Total parent shareholders’ equity per share (US$)

24.19

21.63

46.38

41.69

39.22

Current assets excluding cash

2,557

2,670

2,598

2,269

2,259

Property, plant and equipment, net

1,816

1,690

1,609

1,329

1,265

Intangible assets (primarily goodwill)

1,410

1,423

1,440

1,430

1,445

Capital employed

3,772

3,516

4,538

4,225

3,670

Net debt⁷⁾

1,650

1,619

368

299

202

Total assets

6,771

6,722

6,947

6,565

6,518

Long-term debt

1,726

1,609

1,311

1,313

1,499

Operating working capital in relation to sales, %

6.6

5.5

7.1

6.2

6.9

Return on capital employed, %^{10, 11)}

20

17

n/a

n/a

n/a

Return on total equity, %^{11, 12)}

23

13

n/a

n/a

n/a

Total equity ratio, %

31

28

49

48

46

Cash flow

Operating Cash flow¹³⁾

641

591

936

868

751

Depreciation and amortization¹³⁾

351

397

426

383

319

Capital expenditures, net¹³⁾

476

555

570

499

450

Capital expenditures, net in relation to sales, %¹³⁾

5.6

5.7

5.5

4.9

4.9

Free Cash flow^{7, 13, 14)}

165

36

366

369

301

Cash conversion, %^{7, 13, 15)}

35.6

19.5

120.8

65.7

65.8

Direct shareholder return^{13, 16)}

(217)

(214)

(366)

(203)

(300)

Cash dividends paid per share (US$)

2.48

2.46

2.38

2.30

2.22

Other data

Number of shares outstanding (million)¹⁷⁾

87.2

87.1

87.0

88.2

88.1

Number of employees, December 31

58,900

57,700

56,700

55,800

51,300

1) Including steering wheels, inflators and initiators. 2) Participating share awards with right to receive dividend equivalents are (under the two-class method) excluded from the EPS calculation. 3) Assuming dilution and net of treasury shares. 4) Gross profit relative to sales. 5) Operating income relative to sales. 6) Excluding costs for capacity alignment, antitrust related matters and separation of our business segments. 7) Non-US GAAP measure, for reconciliation see tables above. 8) Outstanding receivables relative to average daily sales. 9) Outstanding inventory relative to average daily sales. 10) Operating income and income from equity method investments, relative to average capital employed. 11) The Company has decided not to recalculate prior periods since the distribution of Veoneer had a significant impact on total equity and capital employed making the comparison less meaningful. 12) Income relative to average total equity. 13) Including Discontinued Operations. Free cash flow and cash conversion are non-US GAAP measures, see reconciliation tables above. 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.