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Autoliv Inc. — Download Autoliv Operational Excellence (company IR deck)
Autoliv Inc. (ALV) · 14 slides · Filed Oct 24, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All ALV deck slides
Slide 1 — Operational Excellence
Copyright Autoliv Inc., All Rights Reserved Mikael Bratt Operational Excellence Incoming President & CEO
Slide 2 — Safe Harbor Statement
Copyright Autoliv Inc., All Rights Reserved Safe Harbor Statement 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. 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, including without limitation, statements related to the completion and timing of the proposed spin-off; the future performance of the Passive Safety business on a stand- alone basis if the spin-off is completed; the expected strategic, operational and competitive benefits of the proposed spin-off and the effect of the separation on the Company and its stakeholders; statements related to the future performance of the Company or of any such businesses if any such transaction is completed; other targets regarding the Company’s performance as a single entity; management’s examination of historical operating trends and data, as well as estimates of future sales, operating margin, market trends, cash flow or other future operating performance or financial results, 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, higher than anticipated tax and other costs associated with the spin-off; disputes or operational difficulties resulting from the spin-off; expected benefits of the spin-off taking longer than anticipated to realize; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier, changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring and cost reduction 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 restructurings; divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; component shortages; 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 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 and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding requirements for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; 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; political conditions; dependence on and relationships with customers and suppliers; 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.
Slide 3 — Operational Excellence is in Our DNA
Copyright Autoliv Inc., All Rights Reserved Operational Excellence is in Our DNA Manage Order Intake Flawless Execution Customer Focus Sustainable Growth Profitable Growth
Slide 4 — Navigating in a Competitive Landscape
Copyright Autoliv Inc., All Rights Reserved Navigating in a Competitive Landscape Well-Positioned to Address Industry Challenges Autoliv Strengths and Opportunities Industry Challenges Technology advancements with growing OEM investment needs A dynamic competitive landscape with continued price pressure Cyclicality of automotive industry Vehicle recall risks Innovation leadership and system know-how Leading production system, superior scale and strong business momentum Diversified sales streams, best cost country based workforce and strong cash conversion Reliability and superior quality
Slide 5 — We are Never Satisfied
Copyright Autoliv Inc., All Rights Reserved We are Never Satisfied Relentless Focus on Operational Excellence for Highest Reliability and Increasing Profitability One Product One Process Innovation Zero Defects Autoliv Production System A P S How to Achieve Sustainable Operational Excellence Basic Bronze Silver Gold Tools & Methods Platinum AC G AC P AC S AL H AO A AQ W CC S CM X CN C CN X IB C AM X AC G Policy Deployment Industry 4.0 A P S Target for all Sites Illustrative Example Quality, Delivery and Cost (QDC) Performance Tools and Methods
Slide 6 — Relentless Focus on Quality
Copyright Autoliv Inc., All Rights Reserved It Starts With Me I THINK Q5I SPEAK Q5I FEEL Q5I DO Q5 Relentless Focus on Quality Q5 is Our Journey Towards Zero Defects
Slide 7 — Highest Reliability and Industry-Leading Quality Standards
Copyright Autoliv Inc., All Rights Reserved 100 75 61 59 56 48 39 2011A 2012A 2013A 2014A 2015A 2016A 2017A Highest Reliability and Industry-Leading Quality Standards “Zero Defects by Flawless Execution” Relentless Focus on Quality Through Q5 Program… …Evidenced by Fewer Issues… …& Minimal Recalls Non-Conforming Events(1), Rebased to 2011A vs. 38% Market Share(3) (61%) (1) Failure to meet intended state and/or specification (2) Scope: Recalls related to Passive Safety in Japan, Canada, US, China, South Korea, Australian, EU, UK, DE; 2010-01-01 to 2017-12-31 (3) Estimated 2017A market shares Autoliv 2% Share of Global Recalls(2) Design Robust Products Buy Flawless Components Manufacture Flawless Products Verify Product Conformity Product & Process Development Production System Supplier Management Mistake Proofing
Slide 8 — Preventing Quality Issues by Proactive Quality Culture
Copyright Autoliv Inc., All Rights Reserved Preventing Quality Issues by Proactive Quality Culture Example Q5 Behavior – JIDOKA “Automation with Human Touch” ALV September CMD Example Viktor Tsysar noticed difference in hardness and gloss of airbag component Supplier used incorrect plastic material Case Study – “Feel the Weight – Save the Life” Potential recall prevented Naime Şen detected 31g weight difference by hand ‒ Thickness of supplier’s rail was off by 0.2 mm Immediately stopped assembly line ‒ All rails checked by scale analysis
Slide 9 — Management & Workforce with First-Class Execution Skills
Copyright Autoliv Inc., All Rights Reserved Management & Workforce with First-Class Execution Skills (1) Leading2Lean; Manufacturing Execution System Examples of Successful Executions Driving Profitable Growth Efficiency Improvement in Operations Implemented L2L as MES System(1) Real-time monitoring of performance data Notification & escalation Standard reason codes Operator certification Increased operation availability by 5% in 2017 Zero Defect Zero Defect (“ZD”) initiative 17% of all lines have achieved ZD 60% of lines in initial plants where the initiative started have achieved ZD Significantly reduced cost for waste & scrap Target Conditions Defined target conditions Covering process, plant layout and design Actively identify new area for improvement Optimization path customized for individual practice
Slide 10 — New Technology Enables Simplified Supply Network
Copyright Autoliv Inc., All Rights Reserved Suppliers Suppliers Suppliers Carrier Logistics Suppliers Suppliers Suppliers Carrier Logistics Global Supply Network Old Model New Model New Technology Enables Simplified Supply Network Complete Visibility of All Logistics Requirements and Ability to Optimize Logistics Network with limited investments
Slide 11 — Copyright Autoliv Inc., All Rights Reserved
Copyright Autoliv Inc., All Rights Reserved Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 New Base Parts New Variants Significant Benefits from 1P1P Global Intelligent Standardization of Designs and Processes ...and Costs... Reducing Complexity... ...While Improving Robustness Global management and sharing of lessons learned and knowledge Product design configurator Master drawings and features Standard parts Focusing on standard parts Value analysis and engineering Increase volumes with few parts Consolidate global supplier base Increase process efficiency Global standardization of products & processes Define standard parts and promote reuse ‒ 20% reduction in new parts created Manage global color requests ‒ 40% less new color parts created Number of New Parts Units Previously Today From 32 parts… …to 2 standard parts ü !
Slide 12 — Direct Profitability Impact from Operational Excellence
Copyright Autoliv Inc., All Rights Reserved 1,263 1,188 1,110 1,027 938 927 2012A 2013A 2014A 2015A 2016A 2017A 6,462 6,046 5,091 4,212 3,840 3,780 100 152 2012A 2013A 2014A 2015A 2016A 2017A 100 94 88 83 77 72 68 2011A 2012A 2013A 2014A 2015A 2016A 2017A Direct Profitability Impact from Operational Excellence One Product One Process to improve cost effectiveness and robustness Continued Focus on Cost Reduction and Efficiency Increase (1) Indexed to 100 in 2012A Productivity Improvement Labor Minutes per Produced Unit, Index to 100 Number of Non-Conforming Materials Number of Suppliers Reduction in Non-Conforming Materials vs. Increasing Number of Deliveries Number of Deliveries(1) Supplier Management Providing Direct Profitability Impact Best Practice Sharing Across Divisions Boosting Efficiency 27% 42% 32%
Slide 13 — Clear Path Towards Manufacturing 4.0
Copyright Autoliv Inc., All Rights Reserved Clear Path Towards Manufacturing 4.0 Autoliv’s Advanced Manufacturing Technology Automation Connectivity Digitalization Suppliers OEMs Selective Approach Towards Continuous Improvement of Production Efficiency Real-time data capture & sharing Significant cost reduction Enhanced productivity Increased speed to market New business opportunities Enabling remote expertise
Slide 14 — Each year, Autoliv’s
autoliv.com Each year, Autoliv’s products save over 30,000 lives