Financial Report January - March 2023

Financial highlights Q1 2023

$2,493 million net sales

17% net sales increase

21% organic sales increase*

5.1% operating margin

5.3% adjusted operating margin*

$0.86 EPS - 9% decrease

$0.90 adjusted EPS* - 99% increase

Full year 2023 indications

Around 15% organic sales growth

Around 1% negative FX effect on net sales

Around 8.5%-9.0% adjusted operating margin

Around $900 million operating cash flow

*For non-U.S. GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q1 2023

Q1 2022

Change

Net sales

$2,493

$2,124

17%

Operating income

127

134

(5.4)%

Adjusted operating income1)

131

68

93%

Operating margin

5.1%

6.3%

(1.2)pp

Adjusted operating margin1)

5.3%

3.2%

2.1pp

Earnings per share2)

$0.86

$0.94

(8.8)%

Adjusted earnings per share1,2)

0.90

0.45

99%

Operating cash flow

(46)

70

n/a

Return on capital employed3)

13.0%

14.6%

(1.6)pp

Adjusted return on capital employed1,3)

13.4%

7.4%

6.0pp

1) Excluding effects from capacity alignment 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

I am pleased with our strong sales growth, supported by product launches and price increases, and that we outperformed LVP in all regions significantly. The operating margin impact of the strong sales growth was lower than it should be in the quarter. This is because new product launches normally have lower operating leverage initially. As production ramps up and

We expect a strong full year cash flow, although our cash flow was temporarily weak in Q1 due to strong sales growth in March.

We saw continued updates of crash test standards and safety regulations in the U.S. and in India which will support continued increase in safety content per vehicle. Our market position is strong, and we are investing for increased production with a new textile facility in Vietnam. We also continue to look for ways to improve our footprint and to reduce our costs structurally.

The year has so far developed as expected. Like last year, inflationary pressure impacted the first quarter significantly, and in line with last year, we expect to offset this during the rest of the year through productivity, cost reduction actions and price adjustments.

This supports my confidence in expecting a gradually improving adjusted operating margin, which should allow us to deliver a significant full year increase in cash flow and adjusted operating income and to reach the full year indications we set at the beginning of the year.

stabilizes, operating leverage is expected to improve. Together with our actions for cost reductions and price adjustments, this will give the significant full year profit improvement that we expect.

The operating environment in the first quarter 2023 was, as expected, challenging, especially in Europe. We reported an adjusted operating margin in line with prior communication.

Other highlights in the quarter were that our balance sheet and expected cash flow allowed for continued high shareholder returns, and that we issued our first ever green bond.

Financial Report January - March 2023



Full Year Indication



Full Year Indication

Organic sales growth

Around 15%

Tax rate2)

Around 32%

FX impact on net sales

Around 1% negative

Operating cash flow3)

Around $900 million

Adjusted operating margin1)

Around 8.5%-9%

Capex, net, of sales

Around 6%

1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual tax items. 3) Excluding unusual items.

Financial Report January - March 2023

Financial Report January - March 2023

Net Sales Development by region

Operating and adjusted operating income and margins

Capex and D&A

Operating and adjusted operating Cash Flow

Return on Capital Employed

Cash Conversion*

Capex, net: Capital Expenditure, net.

D&A: Depreciation and Amortization.

Adj. operating income and margin*: Capacity alignments include non-recurring costs related to our structural efficiency and business cycle management programs.

Operating cash flow excluding EC antitrust payment*: Adjusted for EC antitrust payment of $203 million in 2019.

Cash conversion*: Free cash flow* in relation to net income adjusted for EC antitrust payment in 2019. Free cash flow defined as operating cash flow less capital expenditure, net.

Financial Report January - March 2023

Consolidated sales

First quarter

Reported
(U.S. GAAP)

Currency
effects1)

Organic
change*

(Dollars in millions)

2023

2022

Airbags, Steering Wheels and Other2)

$1,673

$1,381

21%

(3.6)%

25%

Seatbelt Products2)

820

744

10%

(3.5)%

14%

Total

$2,493

$2,124

17%

(3.6)%

21%

Asia

$936

$857

9.2%

(7.8)%

17%

Whereof:

China

453

447

1.2%

(7.2)%

8.4%

Asia excl. China

483

410

18%

(8.4)%

26%

Americas

831

692

20%

2.4%

18%

Europe

725

575

26%

(4.6)%

31%

Total

$2,493

$2,124

17%

(3.6)%

21%

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

Sales by product – Airbags, Steering Wheels and Other

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

Sales by product - Seatbelts

The main contributor to Seatbelt products organic growth* was Europe, followed by Asia excluding China and Americas.

Sales by region

Our global organic sales* increased by 21% compared to the global LVP increase of 6.1% (according to S&P Global, April 2023). The 15pp outperformance was driven by new product launches, price increases and a positive geographical LVP mix development.

Autoliv outperformed LVP by around 16pp in China, by around 14pp in Europe and in Asia excl. China and by around 7pp in Americas.

Q1 2023 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

18%

31%

8.4%

26%

21%

Main growth drivers

Honda, Nissan, GM

VW, Stellantis, Renault

Lixiang Auto, Honda, BYD

Hyundia, Toyota, Nissan

Honda, Hyundai, VW

Main decline drivers

Ford, BMW

Mitsubishi

Nissan, GM, Xpeng



Ford, Xpeng, Great Wall

Q1 2023

Americas

Europe

China

Asia excl. China

Global

LVP (Apr 2023)

11%

17%

(7.5)%

12%

6.1%

LVP (Jan 2023)

7.1%

5.9%

(8.1)%

9.7%

2.6%

Financial Report January - March 2023

     Fisker Ocean

  Subaru Impreza/Crosstrek

   Buick Electra E5

     Jeep Avenger

   Hyundai Kona

   Havel H-Dog

     Xpeng P7i

   Toyota Prius

   Chevrolet Trax

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

Financial Report January - March 2023

Condensed income statement

First quarter

(Dollars in millions, except per share data)

2023

2022

Change

Net sales

$2,493

$2,124

17%

Cost of sales

(2,113)

(1,836)

15%

Gross profit

$379

$288

32%

S,G&A

(132)

(115)

14%

R,D&E, net

(116)

(107)

8.7%

Amortization of intangibles

(0)

(1)

(70)%

Other income (expense), net

(4)

70

n/a

Operating income

$127

$134

(5.4)%

Adjusted operating income1)

$131

$68

93%

Financial and non-operating items, net

(18)

(15)

22%

Income before taxes

$109

$119

(8.8)%

Income taxes

(34)

(36)

(5.0)%

Net income

$74

$83

(11)%

Earnings per share2)

0.86

0.94

(8.8)%

Adjusted earnings per share1,2)

$0.90

$0.45

99%

Gross margin

15.2%

13.6%

1.6pp

S,G&A, in relation to sales

(5.3)%

(5.4)%

0.1pp

R,D&E, net in relation to sales

(4.7)%

(5.0)%

0.4pp

Operating margin

5.1%

6.3%

(1.2)pp

Adjusted operating margin1)

5.3%

3.2%

2.1pp

Tax Rate

31.6%

30.3%

1.3pp

Other data

No. of shares at period-end in millions3)

85.8

87.4

(1.8)%

Weighted average no. of shares in millions4)

86.1

87.5

(1.7)%

Weighted average no. of shares in millions, diluted4)

86.3

87.8

(1.7)%

1) Non-U.S. GAAP measure, excluding effects from capacity alignment 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 2023 development

Gross profit increased by $91 million and the gross margin increased by 1.6pp compared to the same quarter 2022. The gross profit increase was primarily driven by price increases, volume growth and lower costs for premium freight. This was partly offset by increased costs for personnel to manage the high customer call-off volatility as well as to prepare for higher sales levels expected in coming quarters. Other adverse effects were higher costs for raw materials and unfavorable FX translation effects.

S,G&A costs increased by $16 million compared to the prior year, mainly due to increased costs for personnel and projects, partly offset by positive currency translation effects. S,G&A costs in relation to sales decreased from 5.4% to 5.3%.

R,D&E, net costs increased by around $9 million compared to the prior year, mainly due to higher costs for personnel, partly offset by positive currency translation effects. R,D&E, net, in relation to sales decreased from 5.0% to 4.7%.

Other income (expense), net was negative $4 million compared to $70 million in the prior year. The prior year was positively impacted by around $80 million from the sale of a property in Japan.

Operating income decreased by $7 million compared to the same period in 2022, mainly as a consequence of the change in Other income (expense) and the higher costs for S,G&A and R,D&E, net, partly offset by the higher gross profit.

Adjusted operating income* increased by $63 million compared to the prior year, mainly due to higher gross profit, partly offset by the higher costs for S,G&A and R,D&E, net.

Financial and non-operating items, net, was negative $18 million compared to negative $15 million a year earlier, mainly due to increased interest expense as an effect of higher debt and higher interest rates.

Income before taxes decreased by $11 million compared to the prior year, mainly due to the lower operating income.

Tax rate was 31.6% compared to 30.3% in the same period last year. Discrete tax items, net, increased the tax rate this quarter by 0.8pp. Discrete tax items increased the tax rate by 0.6pp in the same period last year.

Earnings per share, diluted decreased by $0.08 compared to a year earlier. The main drivers were $0.52 from capacity alignments and $0.05 from taxes, partly offset by $0.51 from higher adjusted operating income*.

Financial Report January - March 2023

Selected Balance Sheet items

First quarter

(Dollars in millions)

2023

2022

Change

Trade working capital1)

$1,409

$1,352

4.2%

Trade working capital in relation to sales2)

14.1%

15.9%

(1.8)pp

- Receivables outstanding in relation to sales3)

21.1%

21.5%

(0.3)pp

- Inventory outstanding in relation to sales4)

9.9%

10.7%

(0.9)pp

- Payables outstanding in relation to sales5)

16.9%

16.3%

0.6pp

Cash & cash equivalents

713

938

(24)%

Gross Debt6)

2,179

1,994

9.3%

Net Debt7)

1,477

1,057

40%

Capital employed8)

4,118

3,731

10%

Return on capital employed9)

13.0%

14.6%

(1.6)pp

Total equity

$2,641

$2,674

(1.2)%

Return on total equity10)

11.3%

12.5%

(1.2)pp

Leverage ratio11)

1.6

1.4

0.2

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)

2023

2022

Change

Net income

$74

$83

(11)%

Changes in operating working capital

(202)

(18)

1032%

Depreciation and amortization

92

95

(3.6)%

Gain on divestiture of property

-

(80)

n/a

Other, net

(10)

(11)

(9.0)%

Operating cash flow

$(46)

$70

n/a

Capital expenditure, net

(143)

(17)

736%

Free cash flow1)

$(189)

$53

n/a

Cash conversion2)

n/a

64%

n/a

Shareholder returns

- Dividends paid

(57)

(56)

1.7%

- Share repurchases

(42)

(18)

132%

Cash dividend paid per share

$(0.66)

$(0.64)

3.4%

Capital expenditures, net in relation to sales

5.7%

0.8%

4.9pp

1) Operating cash flow less Capital expenditures, 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 2023 development

Trade working capital* increased by $57 million compared to the same period last year, where the main drivers were $282 million in higher receivables and $73 million in higher inventories, partly offset by $298 million in higher accounts payables.

Operating cash flow decreased by $116 million to negative $46 million compared to the same period last year, mainly due to negative working capital effects.

Capital expenditure, net increased by $126 million, mainly due to the impact on the prior year of $95 million from the sale of property, plant and equipment, but also due to increased investments related to capacity expansions and footprint activities. Capital expenditure, net in relation to sales was 5.7% vs. 0.8% a year earlier.

Free cash flow* was negative $189 million, compared to $53 million in the same period prior year. The decline was due to the lower operating cash flow and higher capital expenditure, net.

Financial Report January - March 2023

Cash conversion* defined as free cash flow* in relation to net income, was not meaningful in the period as free cash flow was negative.

Net debt* was $1,477 million as of March 31, 2023, which was $420 million higher than a year earlier.

Liquidity position. As of March 31, 2023, our cash balance was around $0.7 billion, and including committed, unused loan facilities, our liquidity position was around $1.8 billion.

Leverage ratio*. As of March 31, 2023, the Company had a leverage ratio of 1.6x compared to 1.4x as of March 31, 2022, as the net debt* increased proportionally more than the 12 months trailing adjusted EBITDA* increased.

Total equity decreased by $33 million compared to March 31, 2022. This is mainly due to $225 million in dividend payment and stock repurchases of $139 million as well as $106 million in adverse currency translation effects, partly offset by $416 million from net income.

Mar 31

Dec 31

Mar 31

2023

2022

2022

Headcount

71,300

69,100

64,800

Whereof: Direct headcount in manufacturing

52,700

50,600

47,000

                 Indirect headcount

18,600

18,400

17,800

Temporary personnel

11%

11%

9.4%

By March 31, 2023, total headcount increased by 6,500 compared to a year earlier. The indirect workforce increased by 4.5% while the direct workforce increased by 12%, as sales grew organically by 21% compared to a year earlier. The increase also reflects preparations for the expected sales growth in coming quarters.

Compared to December 31, 2022, total headcount increased by around 2,200, direct workforce increased by around 2,100 and the indirect workforce increased by around 200.

Financial Report January - March 2023

Next Report

Autoliv intends to publish the quarterly earnings report for the second quarter of 2023 on Friday, July 21, 2023.

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 Ekelund

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 21, 2023.

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 2023. 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.

Financial Report January - March 2023

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; the impacts of the coronavirus (COVID-19) pandemic on the Company’s financial condition, business operations, operating costs, liquidity and competition and on the global economy; 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.

Financial Report January - March 2023

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

First quarter

Latest 12

Full Year

2023

2022

months

2022

Airbags, Steering Wheels and Other1)

$1,673

$1,381

$6,099

$5,807

Seatbelt products1)

820

744

3,111

3,035

Total net sales

$2,493

$2,124

$9,211

$8,842

Cost of sales

(2,113)

(1,836)

(7,724)

(7,446)

Gross profit

$379

$288

$1,487

$1,396

Selling, general & administrative expenses

(132)

(115)

(454)

(437)

Research, development & engineering expenses, net

(116)

(107)

(400)

(390)

Amortization of intangibles

(0)

(1)

(2)

(3)

Other income (expense), net

(4)

70

20

93

Operating income

$127

$134

$652

$659

Income from equity method investments

2

1

4

3

Interest income

2

1

7

6

Interest expense

(19)

(13)

(67)

(60)

Other non-operating items, net

(2)

(4)

(4)

(5)

Income before income taxes

$109

$119

$592

$603

Income taxes

(34)

(36)

(176)

(178)

Net income

$74

$83

$416

$425

Less: Net income attributable to non-controlling interest

0

0

1

2

Net income attributable to controlling interest

$74

$83

$415

$423

Earnings per share2)

$0.86

$0.94

$4.78

$4.85

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

Financial Report January - March 2023

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions, unaudited)

2023

2022

2022

2022

2022

Assets

Cash & cash equivalents

$713

$594

$483

$327

$938

Receivables, net

2,106

1,907

1,893

1,779

1,824

Inventories, net

986

969

924

903

913

Prepaid expenses

166

160

218

195

170

Other current assets

90

84

69

81

79

Total current assets

$4,061

$3,714

$3,587

$3,285

$3,923

Property, plant & equipment, net

2,045

1,960

1,795

1,806

1,853

Operating leases right-of-use assets

169

160

116

120

126

Goodwill

1,376

1,375

1,364

1,373

1,384

Intangible assets, net

7

7

5

6

7

Investments and other non-current assets

528

502

467

439

476

Total assets

$8,185

$7,717

$7,334

$7,030

$7,769

Liabilities and equity

Short-term debt

$577

$711

$692

$559

$347

Accounts payable

1,683

1,693

1,503

1,303

1,385

Accrued expenses

969

915

965

944

1,050

Operating lease liabilities - current

41

39

35

37

38

Other current liabilities

258

283

263

218

253

Total current liabilities

$3,529

$3,642

$3,458

$3,061

$3,073

Long-term debt

1,601

1,054

1,037

1,060

1,647

Pension liability

159

154

149

155

172

Operating lease liabilities - non-current

127

119

81

83

87

Other non-current liabilities

128

121

118

113

116

Total non-current liabilities

$2,015

$1,450

$1,385

$1,410

$2,022

Total parent shareholders’ equity

2,627

2,613

2,478

2,544

2,659

Non-controlling interest

14

13

13

15

15

Total equity

$2,641

$2,626

$2,491

$2,558

$2,674

Total liabilities and equity

$8,185

$7,717

$7,334

$7,030

$7,769

Financial Report January - March 2023

First quarter

Latest 12

Full Year

(Dollars in millions, unaudited)

2023

2022

months

2022

Net income

$74

$83

$416

$425

Depreciation and amortization

92

95

359

363

Gain on divestiture of property

-

(80)

-

(80)

Other, net

(10)

(11)

(53)

(54)

Changes in operating working capital, net

(202)

(18)

(126)

58

Net cash (used in) provided by operating activities

$(46)

$70

$597

$713

Expenditures for property, plant and equipment

(144)

(112)

(617)

(585)

Proceeds from sale of property, plant and equipment

0

95

6

101

Net cash used in investing activities

$(143)

$(17)

$(611)

$(485)

Net cash before financing1)

$(189)

$53

$(13)

$228

(Decrease) increase in short term debt

(135)

9

23

167

Decrease in short-term part of long-term debt

-

-

(302)

(302)

Increase (decrease) in long-term debt

533

(10)

487

(55)

Dividends paid

(57)

(56)

(225)

(224)

Share repurchases

(42)

(18)

(139)

(115)

Common stock options exercised

0

0

0

0

Dividend paid to non-controlling interests

-

-

(2)

(2)

Net cash provided by (used in) financing activities

$300

$(74)

$(157)

$(531)

Effect of exchange rate changes on cash

7

(11)

(55)

(73)

Increase (decrease) in cash and cash equivalents

$119

$(31)

$(225)

$(375)

Cash and cash equivalents at period-start

594

969

938

969

Cash and cash equivalents at period-end

$713

$938

$713

$594

1) Non-U.S. GAAP measure comprised of "Net cash provided by operating activities" and "Net cash used in investing activities". See reconciliation table.

Financial Report January - March 2023

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2023

2022

2022

2022

2022

Receivables, net

$2,106

$1,907

$1,893

$1,779

$1,824

Inventories, net

986

969

924

903

913

Accounts payable

(1,683)

(1,693)

(1,503)

(1,303)

(1,385)

Trade Working capital

$1,409

$1,183

$1,314

$1,379

$1,352

Financial Report January - March 2023

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2023

2022

2022

2022

2022

Short-term debt

$577

$711

$692

$559

$347

Long-term debt

1,601

1,054

1,037

1,060

1,647

Total debt

$2,179

$1,766

$1,729

$1,619

$1,994

Cash & cash equivalents

(713)

(594)

(483)

(327)

(938)

Debt issuance cost/Debt-related derivatives, net

12

12

42

26

1

Net debt

$1,477

$1,184

$1,288

$1,318

$1,057

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2021

2020

2019

2018

Short-term debt

$346

$302

$368

$621

Long-term debt

1,662

2,110

1,726

1,609

Total debt

$2,008

$2,411

$2,094

$2,230

Cash & cash equivalents

(969)

(1,178)

(445)

(616)

Debt issuance cost/Debt-related derivatives, net

13

(19)

0

5

Net debt

$1,052

$1,214

$1,650

$1,619

Financial Report January - March 2023

Mar 31

Dec 31

Mar 31

(Dollars in millions)

2023

2022

2022

Net debt1)

$1,477

$1,184

$1,057

Pension liabilities

159

154

172

Debt per the Policy

$1,636

$1,338

$1,229

Net income2)

$416

$425

$363

Income taxes2)

176

178

153

Interest expense, net2, 3)

60

54

53

Other non-operating items, net2)

4

5

5

Income from equity method investments2)

(4)

(3)

(2)

Depreciation and amortization of intangibles2)

359

363

391

Capacity alignments and antitrust related matters2)

10

(61)

(58)

EBITDA per the Policy (Adjusted EBITDA)

$1,021

$961

$905

Leverage ratio

1.6

1.4

1.4

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.

Financial Report January - March 2023

First quarter

Latest 12

Full Year

(Dollars in millions)

2023

2022

months

2022

Net income

$74

$83

$416

$425

Changes in operating working capital

(202)

(18)

(126)

58

Depreciation and amortization

92

95

359

363

Gain on divestiture of property

-

(80)

-

-

(80)

Other, net

(10)

(11)

(53)

(54)

Operating cash flow

$(46)

$70

$597

$713

Capital expenditure, net

(143)

(17)

(611)

(485)

Free cash flow1)

$(189)

$53

$(13)

$228

Net cash before financing

$(189)

$53

$(13)

$228

Cash conversion2)

n/a

64%

n/a

54%

1) Operating cash flow less Capital expenditures, net. 2) Free cash flow relative to Net income.

Full year

Full year

Full year

Full year

(Dollars in millions)

2021

2020

2019

20181)

Net income

$437

$188

$463

$184

Changes in operating assets and liabilities

(63)

277

47

(229)

Depreciation and amortization

394

371

351

397

Other, net2)

(15)

13

(220)

239

Operating cash flow

$754

$849

$641

$591

EC antitrust payment

-

-

(203)

-

Operating cash flow excl antitrust

$754

$849

$844

$591

Capital expenditure, net

(454)

(340)

(476)

(555)

Free cash flow3)

$300

$509

$165

$36

Free cash flow excl antitrust payment4)

$300

$509

$368

$36

Acquisitions of businesses and other, net

-

-

-

(73)

Net cash before financing

$300

$509

$165

$(37)

Cash conversion5)

69%

270%

36%

20%

Cash conversion excl antitrust6)

69%

270%

79%

20%

1) Including Discontinued Operations. 2) Including EC antitrust non-cash provision 2018 and EC antitrust payment 2019. 3) Operating cash flow less Capital expenditures, net. 4) For 2019, Operating cashflow excluding EC antitrust payment less Capital expenditures, net. 5) Free cash flow relative to Net income. 6) For 2019, Free cash flow excluding EC antitrust payment relative to Net income.

Financial Report January - March 2023

First quarter 2023

First quarter 2022

(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

$127

$4

$131

$134

$(66)

$68

Operating margin

5.1%

0.2%

5.3%

6.3%

(3.1)%

3.2%

Income before taxes

109

4

113

119

(66)

53

Net income attributable to controlling interest

74

3

77

83

(43)

40

Capital employed

4,118

3

4,121

3,731

(43)

3,688

Return on capital employed2)

13.0%

0.4%

13.4%

14.6%

(7.1)%

7.4%

Return on total equity3)

11.3%

0.5%

11.8%

12.5%

(6.5)%

6.1%

Earnings per share4)

$0.86

$0.03

$0.90

$0.94

$(0.49)

$0.45

1) Effects from capacity alignment 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.

Financial Report January - March 2023

Latest 12 months

Full year 2022

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$652

$10

$661

$659

$(61)

$598

Operating margin

7.1%

0.1%

7.2%

7.5%

(0.7)%

6.8%

1) Effects from capacity alignment.

Full year 2021

Full year 2020

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Reported
U.S. GAAP

Adjust-ments1)

Non-U.S.
GAAP

Operating income

$675

$8

$683

$382

$99

$482

Operating margin

8.2%

0.1%

8.3%

5.1%

1.4%

6.5%

1) Costs for capacity alignment and antitrust related matters.

Full year 2019

Full year 2018

(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

$726

$49

$774

$686

$222

$908

Operating margin, %

8.5%

0.6%

9.1%

7.9%

2.6%

10.5%

1) Costs for capacity alignment and antitrust related matters.

Items included in non-U.S. GAAP adjustments

First quarter 2023

First quarter 2022

Adjustment
Million

Adjustment
Per share

Adjustment
Million

Adjustment
Per share

Capacity alignment

$3

0.04

$(66)

$(0.76)

Legal costs

1

0.01

-

-

Total adjustments to operating income

$4

$0.05

$(66)

$(0.76)

Tax on non-U.S. GAAP adjustments1)

(1)

(0.01)

23

0.26

Total adjustments to net income

$3

0.03

$(43)

$(0.49)

Average number of shares outstanding - diluted2)

86.9

87.8

Annualized adjustment on return on capital employed

17

(265)

Adjustment on return on capital employed

0.4%

(7.1)%

Annualized adjustment on Return on total equity

$12

$(173)

Adjustment on return on total equity

0.5%

(6.5)%

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

Financial Report January - March 2023

(Dollars in millions, unaudited)

2022

2021

2020

2019

2018

Sales and Income

Net sales

$8,842

$8,230

$7,447

$8,548

$8,678

Airbag sales1)

5,807

5,380

4,824

5,676

5,699

Seatbelt sales

3,035

2,850

2,623

2,871

2,980

Operating income

659

675

382

726

686

Net income attributable to controlling interest

423

435

187

462

376

Earnings per share (USD) – basic

4.86

4.97

2.14

5.29

4.32

Earnings per share (USD) – assuming dilution2)

4.85

4.96

2.14

5.29

4.31

Gross margin3)

15.8%

18.4%

16.7%

18.5%

19.7%

R,D&E net in relation to sales

(4.4)%

(4.7)%

(5.0)%

(4.7)%

(4.8)%

S,G&A in relation to sales

(4.9)%

(5.3)%

(5.2)%

(4.7)%

(4.5)%

Operating margin4)

7.5%

8.2%

5.1%

8.5%

7.9%

Adjusted operating margin5,6)

6.8%

8.3%

6.5%

9.1%

10.5%

Balance Sheet

Trade working capital7)

1,183

1,332

1,366

1,417

1,396

Trade working capital in relation to sales8)

12.7%

15.7%

13.6%

16.2%

15.9%

Receivables outstanding in relation to sales9)

20.4%

20.0%

18.1%

18.6%

19.0%

Inventory outstanding in relation to sales10)

10.4%

9.2%

7.9%

8.5%

8.6%

Payables outstanding in relation to sales11)

18.1%

13.5%

12.5%

10.8%

11.7%

Total equity

2,626

2,648

2,423

2,122

1,897

Total parent shareholders’ equity per share (USD)

30.30

30.10

27.56

24.19

21.63

Current assets excluding cash

3,119

2,705

3,091

2,557

2,670

Property, plant and equipment, net

1,960

1,855

1,869

1,816

1,690

Intangible assets (primarily goodwill)

1,382

1,395

1,412

1,410

1,423

Capital employed

3,810

3,700

3,637

3,772

3,516

Net debt6)

1,184

1,052

1,214

1,650

1,619

Total assets

7,717

7,537

8,157

6,771

6,722

Long-term debt

1,054

1,662

2,110

1,726

1,609

Return on capital employed12,13)

17.5%

18.3%

10.0%

20.0%

17.0%

Return on total equity13,14)

16.3%

17.1%

9.0%

23.0%

13.0%

Total equity ratio

34%

35%

30%

31%

28%

Cash flow and other data

Operating Cash flow15)

713

754

849

641

591

Depreciation and amortization15)

363

394

371

351

397

Capital expenditures, net15)

485

454

340

476

555

Capital expenditures, net in relation to sales15)

5.5%

5.5%

4.6%

5.6%

5.7%

Free Cash flow6,15,16)

228

300

509

165

36

Cash conversion6,15,17)

54%

69%

270%

36%

20%

Direct shareholder return15,18)

339

165

54

217

214

Cash dividends paid per share (USD)

2.58

1.88

0.62

2.48

2.46

Number of shares outstanding (millions)19)

86.2

87.5

87.4

87.2

87.1

Number of employees, December 31

61,700

55,900

61,000

58,900

57,700

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 costs for capacity alignment, antitrust related matters and separation of our business segments. 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) 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. 14) Income relative to average total equity. 15) Including Discontinued Operations 2018. 16) Operating cash flow less Capital expenditures, net. 17) Free cash flow relative to Net income. 18) Dividends paid and Shares repurchased. 19) At year end, excluding dilution and net of treasury shares.