Financial Report July - September 2014


$2.2 billion in sales with 8.5% adjusted operating margin

(Stockholm, October 23, 2014) – – – For the three-month period ended September
30, 2014, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in
automotive safety systems – reported consolidated sales of $2,208 million, the
highest third quarter sales ever for the Company. Quarterly organic sales (for
non-U.S. GAAP measures* see enclosed reconciliation table) grew by close to 5%.
The adjusted operating margin* was 8.5%.
The expectation at the beginning of the quarter was for an organic sales growth
of “around 6%” and an adjusted operating margin of “around 8.5%”. The lower than
expected organic sales growth was primarily due to unfavorable vehicle mix in
China, but also due to lower overall production in the Chinese market. We had
record operating cash flow for a third quarter of $212 million.

For the fourth quarter of 2014 we expect organic sales to increase by around 2%,
and an adjusted operating margin of around 9.5%. The expectation for the full
year is now for organic sales growth of around 5.5%, and an adjusted operating
margin of around 9%.

Key Figures
For Key Figures summary table, please refer to attached file below.

Comments from Jan Carlson, Chairman, President & CEO
“Our strong operational and quality execution continues which resulted in
another quarter of solid financial performance. We managed to deliver record
sales, gross profit and operating cash flow for a third quarter. In addition, we
returned a record $288 million to our shareholders through dividends and share
repurchases. Over the last twelve months we have returned $772 million to our
shareholders.

During the 3rd quarter our overall solid organic growth continued despite our
slower than expected growth in China. Since 2011 we have consistently
outperformed the light vehicle production in China, with the exception of this
quarter due to a negative vehicle mix. We expect this negative mix in China to
continue in the fourth quarter however we remain confident in our long-term
strategies for growth and vertical integration in this market.

Uncertainties around the macro environment have gradually increased throughout
the year. This has resulted in a slower light vehicle production growth rate for
the 2nd half of this year, compared to what was anticipated in January. The
early indication is that this slower LVP growth rate will continue into the
first half of 2015. We will continue to monitor the overall market conditions
very closely and are prepared to take appropriate actions in a timely manner.

During the quarter we also introduced a new operating structure which will be
important for the further growth of the Company. Starting in 2015 Autoliv will
have two segments for reporting purposes - passive safety and electronics
(including our fast growing active safety business). Operational improvements in
our European steering wheel operations developed according to plan, while
improvement efforts in Brazil are being hampered by the sharp decline in the
Brazilian vehicle production.

In this current environment we continue to execute on our three core strategies
with quality first, efficiency through one product one process and innovation
for long term market leadership”.

An earnings conference call will be held at 3:00 p.m. (CET) today, October 23.
To follow the webcast or to obtain the pin code and phone number, please access
www.autoliv.com. The conference slides will be available on our web site as soon
as possible following the publication of this earnings report.

Attachments

10235056.pdf