Financial Report October - December 2013

Record Sales

(Stockholm, Jan. 31, 2014) – – – For the three-month period ended December 31,
2013, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in
automotive safety systems – reported record consolidated sales of $2,352
million. Quarterly organic sales (non-U.S. GAAP measures, see enclosed
reconciliation table) grew by close to 15%, exceeding our guidance for organic
sales* growth of “more than 9%”.
The higher than expected organic sales* in the quarter led to record full year
sales of $8,803 million and organic sales* growth of 7% compared to the “more
than 5%” expected at the beginning of the quarter. The adjusted operating
margin* for the quarter was 10.0%, exceeding our guidance of “around 9%”. For
the full year 2013, the adjusted operating margin* was 9.2%.

For the first quarter 2014 we expect organic sales to increase by around 7%, and
an adjusted operating margin of around 8%. The indication for the full year is
for organic sales growth of around 5%, and an adjusted operating margin of
around 9%.

Key Figures

(Dollars in millions,    Q4 2013   Q4 2012   Change
except per share data)
Net sales               $2,351.9  $2,051.9    14.6%
Operating income          $202.7    $174.3    16.3%
Operating margin            8.6%      8.5%    0.1pp
Adjusted operating         10.0%      9.4%    0.6pp
margin1)
Earnings per share,        $1.04     $1.45  (28.3)%
diluted2)
Adjusted earnings per      $1.70     $1.58     7.6%
share, diluted1, 2, 3)
Operating cash flow       $299.2    $241.2    24.0%
1) Excluding costs for
capacity alignments
and antitrust
investigations*.
2) Assuming dilution
and net of treasury
shares.
3) Excluding a non
-cash, non-recurring
valuation allowance
for deferred tax
assets in 2013 (non
-U.S. GAAP measures,
see enclosed
reconciliation table).

Comments from Jan Carlson, President & CEO

[image]  “The growth in global car production in 2013 was stronger than
         anticipated at the beginning of the year. It is satisfying to see
         that, by executing our strategies, we managed to benefit from this
         growth, ending the year with a quarter of both record sales and
         double digit sales growth. I’m also proud that we during the quarter
         were able to return $200 million to our shareholders through
         dividends and share buy backs.
         China is today the world’s biggest auto market and we anticipate that
         it will continue to grow at healthy rates. In 2013 we grew our
         Chinese business by over 25% and in the fourth quarter it grew by
         over 40%, a tremendous achievement. In 2014 we continue to invest for
         further growth as well as vertical integration in China, as Autoliv’s
         two biggest investments to date will both start their production,
         supporting the further expansion.

Active Safety is the other strategic focus area which stands out in 2013. The
strong growth across the active safety product lines gives us confidence that we
are well on track to achieve our active safety targets of half a billion dollars
in sales in 2015 and an operating margin within our long term corporate target
range in the next two to three years.

In 2014 our transition continues. We will have a year of high investments in
order to support further expansion in the growth markets, partly through
vertical integration. At the same time we are adjusting our global footprint to
adapt to the changes in the market. We also continue to address our operational
margin challenges in Europe and Brazil.
Through a combination of our growth strategy, focus on quality, and execution of
the 2014 transition, we believe we will be able to achieve margin improvements
beyond 2014.”


An earnings conference call will be held at 2:30 p.m. (CET) today, January 31.
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.