Autoliv (ALV) 26 Jan 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Autoliv, Inc. Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Anders Trapp. ahead. go Please

and Nadia quarter [ this welcome, to Trapp, Mikael everyone, we Westin; Officer, Thank me, and full ]. year fourth Anders Bratt; CEO, and and our Investor On Chief XXXX our Financial have Fredrik Relations. you, VP, President Again, our earnings call, call.

intake of will flow, Mikael and our earnings, sales and general outline business call, earnings among an balance today's provide sequential in record and Fredrik will, margin update market They targets. will other Fredrik XXXX journey strong the cash for things, the expected During and on also and Mikael provide also towards sheet order an XXXX. overview improvement the our and the conditions.

to the per And respond We your questions. slides available will usual, then autoliv.com. on as available are remain to

to Turning next the slide.

the of part follows. We an statement, Q&A this presentation harbor have is that includes the which integrated safe and

non-U.S. to disclosed of we will reconciliations GAAP be XX-K During The will that quarterly our filed and in GAAP the non-U.S. on in press release the the reference presentation, autoliv.com measures. SEC. available GAAP measures with U.S. historical are

Time. Lastly, conclude at European mention intended is to I p.m. Central that should X:XX this call

So of questions please X follow per a person. limit

to CEO, over hand now will I Mikael Bratt. our

Thank you, Anders.

the next slide. Looking on

note product customer for I'd Light quarter, well Asia strong the and Japan. our Light as was strong Production. entire grew sales as result mainly In growth Vehicle we as strong all like to or significantly, of XXXX launches XXXX compensations team Vehicle XX% rest organic reflects indications. a recognize The by Production achieved and another quarter, execution ended which [ pressure higher-than-expected ], the for of delivering on culture. our especially our We inflationary exceeded outperforming strong in a

key in gross margins, year-over-year operating both broad-based and including and We generated sequentially. margin adjusted improvement areas, a

the quarter the the repurchased strong million XXX for or was in for flow and dividend and approximately improved, year. net shares increased $XXX we [indiscernible] our USD million cash debt Our while

workforce by savings $XX We our are initiatives. making X,XXX. expect towards million progress to around from up reducing our in these XXXX We indirect now intention of of

It is strong fast-growing the see with Chinese well. especially encouraging developed OEMs. order intake Order to intake

digits foresee Light decline modest sales Vehicle growth, take growing improved Production. should XXXX, expected to operating driven in strategic important us customer step mid-single call compensations. we margin stability, despite by XXXX an and initiatives For of in our adjusted structural and targets closer one

repeated seasonality heightened XXXX. is prior of to be the likely However, earnings years in of

the X at Now looking on next more slides. detail the in order intake

the the in full well, year and changing to continued long-term EV environment Our for safety XXXX company [indiscernible] The clear many that supporting of order order lifetime intake the growth OEMs X technology develop years. estimated intake an The with platforms. value highest past remains was our is our intake industry. a automotive new evidence rapidly the order the in leader strong in

customer One continues of level. performance high be a on internal key our to indicators, satisfaction

maintaining to services, costs strive improving industry-leading while and quality. products, continue We processes for

customer ICE mix XXXX. satisfaction a regarding Our and strong beyond of high our order of level confidence EV support, with the and good also growth intake platforms

the our may will slide. next at vehicles. EVs that for electric in Consumer was have intake future EV was traditional least OEMs. faded and new for Looking on for changes In Europe. the regulatory term, supporting somewhat XX% short both We high, XXXX, new with in EV but around platform makers of demand increase, XXXX intake EVs order estimate in order

have is growth. a it products both important EVs ICE to are drivetrain balanced agnostic, and to exposure market to capture our Although future

growing good segments. believe to we all that we exposure a With book that the we order have built, have

China. And won XX% new sales XX% supporting XX% America zero our intake. around of to low XXXX. anti-submarine air OEMs order intake of this as rear-seat of expect well Chinese to of in accounted New in XX% from Fast-growing style around and Chinese we automakers, in accounted carbon in our up for group close for vehicles. mainly gravity We North airbags China, account markets cushion multiple in our OEMs for for as for like and XXXX, material passengers, [ with awards self-driving Pretensioner banks ] industry Seatbelts for seats order trends

This strong launches we years, the the in in success. of China product XXXX, long-term and result past to a in an especially for our building even overall an stronger increase Europe. As order development expect contributes in platform intake

base generated key Now have this next slide. the improvements both we the in a slide, looking and at significant sequential improvement year-over-year highlight On during areas, XXXX Year-to-date, on broad-based we cost improvements. to sequentially. sequential cost In to actively compensations our pricing customers that with the negotiating while higher address continued our the inflation. the fourth secure reflect and successfully we other quarter,

by productivity our labor digitalization. direct to including Our strategic and of implementation the continues up, trend support automization initiatives,

Combined the the from to for quarter first is quarter. XXX efficiency operating Our basis substantial led the have and high since as SG&A with labor seasonality QX, by by normal gross compensations. trend now result customer of by higher -- a have adjusted basis the to margin. improvement, positive reimbursements the XXX improvement substantial gross points continued relation The with in compared mainly in XXX and partly basis sales improvement this margin the points third and fourth result engineering of RD&E margin This improved and declined in points quarter. to

higher cost reduction other on effects. sales The next more slide. increase increased details improvement prices in Production, Sales strong activities and due on Looking higher mainly quarter income. the and XX% year-over-year, adjusted operating the in and translation product Vehicle compensations currency by substantial led to in fourth Light to favorable now financials new launches,

from was increased operating by points an points percentage year. increase the year in $XXX from by first over almost last same from income the $XXX quarter. million the X The Adjusted XX% XX.X% than by more margin last to adjusted operating and X period million quarter, percentage

effects same which flow than to reason main cash Operating of million lower which The recoveries. year. timing cash period year $XXX million, was customer flow cash strong flow the was unusual last was the was for lower $XX related last

structural implemented and $XXX headcount the now X,XXX. with reduction Looking $XXX of [ to and and to direct we intent ] XXXX, the the X,XXX $XX targets, with XXXX in and financial amount million that on long-term headcount secure To next the slide. launched our initiative when estimate around around workforce up our medium- cost a annual XXXX. to reductions expected million around We in already will cost reducing in our million fully to cost activities June support of competitiveness the up on reduction savings by indirect

alignment of Total [indiscernible] amounted to and of productivity USD XXXX result. as detailed reduction planned to reductions were million. XXX At already do on positive around a XX% direct not [indiscernible] for in details. capacity plan announced. We XXXX, indirect the end accrual initiative impact the We announce further see

in our on detail next now slide. growth sales Looking more the on

net the and X a USD was volume, earlier with mainly Our and price cost increased compensations out-of-period in the This relate higher year quarter. fourth X.X attractive compensations contributed driven other are over compensation quarterly million million, by that Out-of-period almost consolidated sales were USD new first price, than negotiated to $XXX billion, quarters but adjustments XX a result. mix to currencies.

the on split. sales regional Looking

sales XX%, the to next Americas and accounted growth LVP compared XX% slide. XX%. our Europe Asia for organic for on outlined at We

the year-over-year. global Vehicle as X points Vehicle than more that as on growth the strong more expected. most fourth the pleased domestic of at was significantly This OEMs we very the am percentage of than our from UAW book. higher organic X% than the production sales continue impact growth Light Production the our in and in North China higher-than-expected increased beginning fourth coming outperformed by quarter, order of in to S&P with Production Light to expectations I Global, strike quarter execute According quarter America

around Vehicle X customer rest we especially following underperformance outperformed growth strong Japan. points, in negative Light mainly Asia the a was percentage for performance, content Light driven of strong In Vehicle safety in vehicles. by global modest mix, with Production quarter, The by lower and China Production

the On to slide. next

in Production outperformed points, points we the points. Chinese percentage mainly China China The in X OEMs. in For by in domestic rest performance Vehicle negative to percentage around percentage points of outperformed Vehicle a and by by percentage regional was Light X We global sales by Japan Asia year, Light Production XX mix. driven full increasing despite XX by

this sales sales Vehicle our Our group to Production percentage China, in XX% points in outperformed by to XX% for XX Light and from of XXXX. up accounted

X off. X almost In XXXX, disease was share higher than when the spun years XX%. was percentage is around market points our electronic This global ago

well as in Light belts and we points our market Supported XXXX. by all of is position market expect XX% content Vehicle by XX% XX% global airbags, Production Our to to launches, strong and product outperform of gains categories price further share percentage seat X vehicle X sales of per steering growth wheels. with new increases, in as

On we launches the some model slide, next the for fourth key see quarter.

XXXX, Europe record of had launches, Japan. product especially we China, in and During number a

For have of slide, towards The highest the higher XXXX, is the around shown electric here in as [indiscernible]. first XXX The half an number at product year. vehicle particularly with over we content step electrification of see being this per in models another launches, on available versions. a models of [indiscernible] up trend the or with clear X

the most the launch Autoliv of is potential, terms In sales Zeekr XXX significant.

financials Fredrik will on over talk I next slide. Westin, through will to now the CFO, it you the our hand who

you, figures Thank compared Mikael. quarter slide the our of key XXXX to fourth for the XXXX. of quarter highlights This fourth

was by adjusted Non-GAAP $X.XXX year-over-year. million, share where $XXX Adjusted [ by increased the increased almost adjusted almost by adjustments of and $X.XXX [ $XXX million operating points to $X.X to income, were The capacity income sales net XX.X%. partly and million, ] other percentage Our operating billion, $XXX XXX financial from $XX adjusted items. $XXX the increased XX% tax for XX.X%. gross were items, $X.XX diluted amounted to the by operating offset basis margin of Gross to million earnings by from XX% main increase alignments. margin profit entirely or increased to million, from ] $X.XX by higher X.X while an drivers this increased points per

stock on employed purchased return we share billion We quarter, and return adjusted existing the XX% on and and Our program. retired under to dividend respectively. million XX%, and increased for capital in repurchase our shares the million X.X $X.XX $X.X $XXX to equity around per increased

Looking quarter fourth was of bridge the million the adjusted same operating the $XXX adjusted operating income quarter on the slide. than million next our of year. higher now XXXX, last on $XXX income In

by cost positive. impact was from were prices material were inflation. strategic offset million operations The premium headwinds other last by partly FX million compensation The approximately limited. cost SG&A initiatives due $XX unchanged compensations, as impacted well $XX year. combined income but was million positively Our improved to for higher period during cost to was the higher same it net higher, raw In general freight from year. customer volumes, $XX was relation lower cost compared and RD&E Cost as impact to pricing and than labor mainly our sales, engineering Out-of-period for last and inflation. lower

warranty the of million affected to The different basis also by ] was accruals margin The X $XX for XX are related or cases. and points. recalls accruals [

effects As currency warranty upper of excluding XX% a operational typical XX% the result, in half the was recall leverage range. our on leverage and costs higher to sales, the and

on volatile disruptions Production, again Production. year inflation, Looking negotiations year continued results higher-than-expected on turbulent Light next now Light the Vehicle cost customer full and a Despite supply price slide. labor financial Vehicle with was XXXX the

shares operating $XXX were over adjusted Light Vehicle sales The was increased were where partly [indiscernible] by from paid around by $XXX XX% increased $XXX repurchased taxes, share as as offset financial share to flow $X.X around $X.XX ever higher of our with to the flow year. guidance billion, $X.XX operating than achieved. X.X% adjusted Sales, income, for of million Production X%. lower points were and $X.XX Adjusted operating share adjusted X.X retired income cash adjusted compared per items. beginning the by to operating the cash we the underlying $XXX expected income and Dividends guidance million main adjusted earnings in The by of drivers net compared million. earnings higher The from X all million. was $X.XX increasing the the per twice share percentage we highest from Our the margin and $XX.X income in well per have to sales XX%, X.X% around to operating were million. $X.XX of operating organically

prices year. Looking adjusted raw our on full The operating million bridge income income impacted now for FX Cost $XXX from material operating impact combined year In than million net at last higher. next Mexican profit peso a This adjusted the RD&E the limited. result higher XXXX, SG&A $XX was of was negatively operating $XXX of million the negative [ million. effects was was and ]. mainly of by slide. translation $XX

was However, in basis relation to down points. sales, it XX

As leverage range. the excluding sales, a getting on the was This operational despite to leverage slightly currency on XX% our not our any compensation leverage typical the higher inflation above result, customers. effects, XX% from is

the cash Looking on flow next now at the slide.

cash expenditures For the million effects year. Capital fourth about XXXX, decreased cash $XXX it million. Relation same from X.X% last year, positive XXX to was down was million, year, same compared the X.X% decreased $XX to was of $XXX to by last flow by $XXX sales, net million to as this to year. Free flow which operating last quarter the compensations. timing impacted million period of customer SEK

record flow cash net for to the million capital improved $XXX unchanged at the relation sales virtually full year cash was operating a $XXX Full company. Free year-over-year X.X%. million, in to full year Our by new for million. was $XXX expenditures year flow

conversion, cash net to was flow free defined Our as XX%. income in relation cash

next Now development slide. looking on trade on working our capital the

by working sales. fourth inventories by capital due due million, higher receivables. higher million payables, $XX offset by mainly receivables partly higher quarter, trade accounts were higher The the million $XX by and mainly in higher $XXX During inventories decreased million -- to the and $XX driven

to inventories million. to receivables high efficiency lagging million in coal efficiencies. due capital planning changes date, in capital and $XXX achieved have we and of hence, by Our to the volatility aims are especially resulting in program working improve and $XXX Improvements

expect to significantly over [indiscernible] improve tandem the We reduced this in years. with coming

past Now years shareholder returns looking at over X slide. the the on next

Light supply Autoliv solid its generate such volatile has years, in industry shown to related and with and as chain in flow Ukraine, war the challenges Production. environments, cash Vehicle lockdowns, declining ability Corvid difficult periods Over market

yield payments used to to dividend price. has have usually We X% share X% dividend a both Historically, repurchases the relation to create in represented average share and shareholder value. approximately of the

number by net stock returning million X last program, to a USD reduced the the total almost program. debt of includes Over significantly initiated the repurchases as of we the XXX years, This part stock shareholders. X.X directly shares outstanding X%. we million of have of stock current we repurchase reduced repurchase $X.X for almost billion while Since shares the have

and best sheet, such leverage several the program We outlook, our factors conditions general do business the consider when always our and the long executing not to cash flow as what the our and rating credit shareholders, both is strive balance for short all term. debt ratio. We balance

unchanged. the months ratio our the on ratio debt This slide. December repurchases of the next and higher XX the X.Xx the the of X.Xx third to million XXXX dividend, looking debt Now improved on increased EBITDA result Despite higher development net from a as leverage of trailing at leverage was at end stock was asset end $XXX quarter.

leverage and continued debt going returns cash forward. high shareholder allow that for positive will We our expect flow trend

Mikael. to hand it I back you, now

On next you, the Fredrik. to slide. Thank

where transitional is auto to something see S&P the shaping customer is year reached a reliant the already of With a having on more outlook end many be up XXXX year. pre-pandemic continues production After inventories, regions levels rebuilt finally industry a to demand. global to

half while expects global X% compared in half X%, the to regions new of Vehicle by in [indiscernible] expect Vehicle to last to Light high to decline in almost is and in year. and This Production year is XXXX. EVs is rates. vehicles, Most S&P Light Europe. affordability due Global interest decline softer Japan Production Global close to declining [indiscernible] second X% increase first interest somewhat some

Europe strong the be inventories last years. boost for is decline as export the supported strike production and North by volumes in In America, will to slightly over Light as sales towards EV demand X bolstering no in have vehicle the production reduced China longer the inventory and somewhat XXXX. restocking activity. expected strong was end output Production case XXXX to vehicle UAW continues the of

decline We a global full X%. based Light indication sales on Vehicle of year our around Production

cost and challenges cost the labor, Now In looking inflation main around were the XXXX, next on energy. slide.

XXXX, expect labor our combined the and impact our Already For in higher cost inflation labor mainly and estimate XX% for our our labor XXXX, normal own of costs we suppliers. countries We for market represents more during some suppliers the base. to exposure, us than labor significantly resulted in tight inflation. than

For especially XXXX, America. North we further Europe and headwinds foresee increases, from wage in

raw specific of products, automotive since has as much steel currently our are decline to indices that down we the grade many only as declined generic assume used indices not prices the in costs XXXX, slightly indicate. reason as in raw Although XXXX. quality peak in such The material material steel being their

Additionally, materials yet had and any as such operations. we our see Sea has resin. higher costs measurable situation The for impact [ on [indiscernible] ] not some own Red

We nevertheless, have it volumes too compensation inflation. is noticed that offset that to and what early potential we again expect XXXX. but challenging, Cost short some will negotiations may be have will their estimate customers adjustments price for it have cost compensation impact reduced term, other but

on the XXXX next outlook at the Looking slide. business

Production, expect mainly compensations. and a sales growth, initiatives, stable improvement to We customer supported structural in control compared Vehicle by adjusted a more Light XXXX, cost significantly in and XXXX margin operating strategic organic

from in the be first operating the compensation. inflation income, timing cost margin X engineering X%, with lower This seasonality the significant around Vehicle the XXXX quarter adjusted line Production, lower quarter Light expect and in the in is in cost decline due We to years. of past fourth a to

quarter seen pattern in throughout limited adjustments year effects will cost pattern the similar as supported Light positive and to with expected as expected the structural stability. compensations chain strict the of improvements gradually by XXXX This XXXX further supply cost and is anticipate first ]. gradual offset quarterly savings We Vehicle inflation Production price [ be the well trajectory to the improvement from be cost should and control, in and

financial items. our other guidance and alignment, our guidance, matters which slide. Looking the shows This antitrust-related next slide excludes discrete from on at year capacity XXXX XXXX costs and full gains

to a net is USD Production X%. X.X Our full effects on margin operating decline be expected Vehicle by translation cash Light Production, flow X%. lower around year expected on guidance organic Operating to Despite is sales. are The our guidance based expected No is Vehicle around adjusted increase XX.X%. sales billion. around is Light for around currency of

Our allow rate We XX%, tax of of around high normal continued positive a for flow line XX% in cash shareholder tax to indications, our the rate. returns. XX% foresee should new trend with previous as

Looking sustainability saving on the approach lives. by to slide. of our more our next Guided vision

development life-saving driver Our from mission differentiation an and for our that important stakeholder world-class society. continue solutions helping [indiscernible] to the creation, and our is ensure part and Sustainability to long strategy of value sustainable is an to and in to business provide business term. integral contribute thrive will market

Our more responsible targets. sustainability approach and areas: saving more specific and long-term lives, consisting focus based short-term inclusive is business, ambitions workplace, safe on X and each climate of

well-established XXXX. among frameworks UN sustainability out Compact We and our and broader aim live by aim to our Science-based emissions group be Global approach runners such These operations in further ambitions automotive Our for suppliers. anchored in the front plays chain the own XXXX, to Targets. the as of zero supply is neutral international net across carbon by in

slide. in progress at sustainability next on XXXX the Now looking the

UN of development and sustainable our and initiated XXXX, sustainability concluded highlight targets. that goals activities we own contribution our to number During and a the commitment

shapes broadening For gender. and more are body and forefront to parameters include example, such age of models at we we -- the as are and test

have significant to our alignment have We in at suppliers from their survey climate carried incidence and improved, climate track emissions electricity, with out The of annual greenhouse use own renewable our operations. and direct requirements we contributing gas the increased material a rates our to decrease ambitions.

expecting look steering slide Turning the on are core current to and grow through to the targets. to seatbelts business, wheels In towards at our books. the progress execution term, medium continue airbags, strong order our we

content safety vehicle, cross The continuous driver by ratings. test is government and per other is of important updates regulation which growth driven

for by targets. other XXXX costs. years, Vehicle the for XXXX growth for Light excludes growth around target and per percentage grow we material average. and in Our year growth than any XXXX expect raw was means to XXXX inflationary the XXXX, and The and organically This more XXXX exceed X points guidance that X on price to these Production compensation

innovation growth ambitious we maintain momentum. beyond momentum an the intake XXXX continued strong To supports XXXX, growth pursuing are order the program,

X Now next looking for reduced levers years, on past slide. the base. margin improvement significantly has on multiple cost its the In Autoliv the

have especially efficiency hundreds and projects, chain. of supply We in implemented cost production

inflation ] framework we [indiscernible] operating in adjusted from margin million is production around at stable vehicle environment at We of global these and $XX headwinds compensations. our a a to Investor light XXXX. is the Day adjusted capable operating communicated the least June of met on are offset when XX% conditions target confident target. A year, based that business reach [ Our with full for price are through remain margin XX% that and

the that be conditions expect during vehicle now fulfilled We light production will XXXX.

will be call than the negative that of volatility higher productivity having through efficiency. XXXX expect lower and on a level, impact pre-pandemic in XXXX our but remain than We

We launched step we increases. a conditions expect We compensations XXXX in lagging XXXX offset our a and effects target. our inflationary headwinds secure activities. behind and should operating cost to have with substantial market margin net saving long-term adjusted competitiveness, the that result believe actions of our and number To inflation cost towards from effect the in in continued negative the of customer pressure

and on shareholder slide. targets and to on health efficiency. our our continuing Now safety our our deliver delivering the priority, through of drive more XXXX shareholder employees business towards further improve To agenda while first is looking and activities value, quality the value next financial

for our cash sets inventory with attractive execution of creation. combined receivables, flow from flawless Through program, our a our capital strong strong value efficiency customer aim launches, generation the to plan, satisfaction lead supporting continue thereby, this and and new new capital up of position. to further, Autoliv payables, shareholder efforts improving strategic our which also and should unlock execution We of we market

we we resource our on strategic OEMs on progress footprint targets, negotiating climate focus efficiency initiatives, believe To footprint. carbon from headwinds from cost reduction executing optimization compensation increased and towards mitigate By will inflation. and will of our we

I hand to back it will now Anders.

Thank you, Mikael.

the for call, questions from would comments page. formal like the This open and and today's analysts last to concludes we investors. for Turning earnings to our line

back I Nadia. it you, now to hand

And Instructions] going our to from and line comes now [Operator we're it take Langan question, Fargo. Wells Colin of the first from

Just The X% this looking is Slides the so target strong on bit, that kind last China guidance also inflationary your market. including I know on And at recoveries of this X, maybe of -- a continue? comment over going you you expecting? about year. a it's X%, implies long-term on reason X is quarter. was why think help to any you year? the cost of thoughts you're that a the called in out some headwind that Is to And any I bit that the said

takes Thank XXXX. into X% outperformance your LVP you there. questions versus for us The

the there, we expect we have last growth intake have as that target the of X%. X% the X-year the over-deliver the through should next where on. last a And the And it we to This created target. growth the X$, core on of on course, we XXXX, have on content And we is X% have period year the Then is couple of course, that. years. we that to year. over and we where see excluded, seen organic we thanks also to current, that to price development said let's mentioned good X% per communicated beyond is this to as of also X% negotiations So vehicle be the to top order here, that say, business core also, the expect of

XXXX. So our that beyond take is

we China, Regarding mix minus LVP, fourth to effects. quarter the saw X% in due versus the is the

year. the mentioned lower -- a at here, growth usual. we the low-end As full strong vehicles if we significant let's content safety with full year, the for had say, But of very vehicles had you there X% than the we outperformance or, growth on look

the we general China, that on new and So -- feel we well look there. and let's are very we in EV also say, with positively players positioned the OEMs

So on view a China going forward. positive

any way your it. this impact called that's again large year? of terms in to Any frame out color margins -- inflation you labor the dollars how other And Got costs. on dragging this with or is

somewhere Yes. I the be same normal it we mid-single digit as expect mean where we which to said level inflation. had -- we actually year, about above be last would

basically. on So we're our And [indiscernible]. on breakdown slides the some here also labor percent a the giving pre -- on -- as of cost

with the you a impact also is. we calculate can expecting. of where that, inflation basically on that energy increases the some top that's expect major surcharge So textiles. on materials Then that, we're on as especially what And buying,

So those components. X main are the

question Pescatore the from the And comes BNP next Exane. Paribas of Giulio line from

The the buyback. first one on

good cash in for generation closer the getting in and margin comfortable XXXX, flow XXXX you're the end uplift further if you expect wondering upper the to Just of leverage this in range a year? potentially especially considering

implement second Then my compensation. on question

compensation end mentioned costs. year. You of full the mean Does you expect for the that that at

the year, we can first that but the fair describe So XXXX have few by in it? to you whole the way as with some a full compensation on expect Is shouldn't full compensation a end months. slippage think of potentially you

Thank you for your question.

on regular On the report you know, done only what page here. we basis as buybacks, have on we through web a our

We have flow sure committed the making see buybacks. you in generation we And we back have. cash and course, the the will regular today. -- and we report say that's as are think mean, program, from as when here, committed we quarter And are of here, the lot of that could program level comes as come dividend But And also see to to focusing to as can on I we healthy have here. that needed. a be that we progress fourth both that the -- we are, very a it much you here to I our I shareholder-friendly company buyback on a

then Regarding we as in us in a inflation were we the stating last indicated the have the effect -- you have is same fashion year. negotiation the say, inflationary, there already, throughout cost let's year. here the And earlier and the lead see And we from time. year, hitting as

full Our looking at is the get focus here quarter-by-quarter than height compensation of to here. the the the compensation rather and to

the that compensation is full and of it's So year the the priority it. height

that, you call you therefore, QX year. this, then let's new if the revenue say, So improved and we have get it where throughout seasonality,

So that. that's behind reason the

know there, if like you would don't anything and add I to Fredrik?

No. XXXX, component case not compensation, the effect effect. expect a for was for And should was there whereas in also but we 'XX, into compensated were Hence, the our in with not overall, also -- there don't that we a full that same be expectation carryover XXXX, And that material is pattern then we for the compensated year 'XX. 'XX. was raw

question Emmanuel Deutsche from comes the next of the Bank. And line Rosner from

My end the ask first could your little Very was to more scorecard the path that a you, at I towards appreciated much of comment target? bit the about operating XX% but question, you deck. hoping the you put reiterated margin slide

of level maybe by I'm the some it sort cost reduction of least, if So offset cost production understanding is it programs. recovery probably like in right looks like correctly, your at

you this these it guess, your what the accuracy? fair further if is main So to I there normalize? targets, to co-op of that is will that impediment so, Or the to get line to assume are sight? actions to Is the getting And you targets? need

of Okay. I lot components in a mean question. your there's

from have seems million, pretty assumption year to in ambition XXXX place as come when Then as be other and compensation, to are $XX think, Again, overall, now, XXXX. X always to impact in be the also an for. catch-up are will have when the inflation remains inflation seen it as to we that also million $XX a costs looks here that whole on long until effect made compensated full place the right this that in an framework So it during develops we is inflation comes for year. clear. that we say there's have the is, but also how potentially as on we for I our

kind of call stabilizing the half I component stability we it's not of seen last around we've year. where presentation graph is into our during or the year. here, clearly Then a the last at now it have place second XX% mean of in in on going and

during now even when it right to levels, We pre-pandemic come lag will out is in also to we can also improve there's until then up get And this that were a closer there's sure the -- efficiency place say actually network. our also accuracy time are to not significantly in that XXXX. of the XXX%, if

during the it seen and 'XX, towards #X will of be come much X impact for for but and framework, and to it the how So then not in yes, be what it 'XX. that sure, place it's -- in remains here is the place will -- trending XXXX,

can of headcount how XX%. you initiatives into from at to had -- get structural in the and Looking that X blocks the up reductions. roughly It's 'XX, divide to the One building the the X.X% we now is buckets.

X margin buckets. volatility growth The labor contribution from second initiatives. one the improvement, strategic it's those I sales is our would then is productivity And the component combined X/X the and development. say, with third roughly, And

of on So let piece the -- me second for question just sales growth it. my

we reported you is few framework? market on this were win share confidence sometimes had XX% your to the we share, year oftentimes, towards you And And better. annual your over -- some able What market comment capture look started past, the next Obviously, your I additional As your I reported targets, or XX%. in guess think you in they being on at like beyond win of and at past the can rates? rate. XXXX the the what years is level

Yes.

we XXXX, have As of the that -- terms very we have, order And the revenue what to I XX% reached fund in market we that with we what book revenue. we the a grow was some order years us And into. since last intake good order lifetime share share. in here back which And X lifetime XXXX expect think, since intake. is and have the expected we on here indicated that, are we you had market to saying highest this in know, around the and years the we communicated here year

target share more a It grow it, level do our defend this but to or set healthy a market course, say, We is we healthy market of an will course. do can of new position we business, If share really would in not I with itself. it's not have, way, a of ambition to here. targeting

X% I we with is X%, and Production connected to as [indiscernible] XXXX about, Light expect forward earlier and have the the Vehicle going talked growth we beyond So announced products. that sophisticated to more

the question of from comes next And America Securities. line Jacks of Michael Bank from

First one, just recoveries. on price

more could you clearly you towards anything same compensation achieve have been other to XXXX? gives that structural inflation for you struggled Is the can the there successful. point Some confidence that Autoliv wage and in has suppliers

What on mind? the you [indiscernible] XXXX working that improvement target is then the magnitude to remaining just relation gap of capital. expected of to in in $XXX have And the million in the question second is

Thank you.

price with the comment recovery Fredrik on me Let the and working there. start capital will

On [indiscernible] the structural can't I recovery, it. to price

I dialogues And see on mentioned here. now, I here have mean, we those for we made indication doing I And mean, last have customers to materials. years, what And indexation starting have increases in the there, with -- of around very we're contracts also our think here. we can it's of raw out the above we and course, that X we have higher over also. only constructive are comment level I the system cost some normal had with

mean, works both ways, I So obviously. it

come see So back that when we will hand customers. we that our also down, to

the I end it's bit to When what nature. different But here day. needs nature the the passed end to here, for consumer -- to this inflationary it have here. be other we And It And the is of the meaning of think for its it mean to on components little the definitely inflation. car price to comes that's year, in the the is components compensation labor of at get I important a and the focus here.

not So we we need that's on our compensate get unless will possibility with to as here need us our to to pass something there is push on well. that's continue and and work going hard forward suppliers here. to also sustainable, we because for we It's cost the that no And do that.

target on In improved target, million that million had have detailed already ourselves. achieved million so Michael, question, to also million capital. even that at we Yes, we that date. working the of of reported around that set we achieved have $XXX overachieved the we And to $XXX here around payables. would we your $XX or come second $XXX

So we don't expect more to be contributed component. from that

specifically, to improve core right due expect we mentioned, And also we we affordability during as this the So the be here but of that so for side [indiscernible] to billion, challenging we that inventory expect guide cash much show flow here a don't able either we is strong And do capital accordingly, operating see very and the is opportunity still kind working inventory on XXXX. working do coming further. of I now it's then more to significantly to but levels. later do $X.X the you stabilizing capital in XXXX at there from guidance call as not improving will

the Hampus from comes question And Engellau the of Handelsbanken. line from

given the compensating cost maybe are going, you well, guys quarters. rising more side, that that getting compensated permanent come And question had XX%, give are cost But savings by how to work? curiosity. sorry dynamics for and quarter, the can [indiscernible] in X% some in drop because are going take given But curious for to cost that sales -- labor the does the the have on I I for about I mean, understand that [indiscernible]? spread the trying back here. Two my how you [indiscernible] more if that later, negations minus you guys Despite I'm but the big it's this these the see definitely also? [indiscernible] quite could us those increased [indiscernible]. those during I'm to we don't And than -- me. on active you inflation LVP can are retroactively just [indiscernible]

on that. think I no -- is side, active the seatbelt into drama

you And also here. years a here course, car you see maybe active recovery expectation case, -- get in is that in year in mix Of you where where effect had outgoing some recurring the should specific have of the you seatbelts. this that high next model level my

mix to drama with that more of effect. no temporary So a

of -- I Then on here, if it nature therefore, mean, you will cost as labor sticky, and compensation the mean I come down. is the it's you I right. I mean, not said, cost understand increase

we can think call I it.

detailed correlated. are when means for of how supporting their course, no has absolute to through. what that, to necessity inflationary that we and business else, room of to an connects there course, anything it's So component we, customers, that here. And very we There to specific is our doing how come and is is that go have

and went regions, through. last through So already in year we that's that to that And go already something cases saw partly need in mean in I we some impact we some XXXX. when

do of So we expect that. to more

Danske And our of question Bank. [indiscernible] comes from the from line

also question. have successful I we coming have situation cars. on we this Or been to I profitability the how of yourself, are perhaps has coming see in accepting in impact I high as a inflation price seen, as question very cuts seen mean, in OEMs also and to way, past? But And have say, a getting also a price. you a we first probability. but have mentioned you the compensation, seen price investing general? price on my mean, need subsuppliers profitability been in cars. that That's the I lower also lower is they reporting OEMs We've it in from

you, ], easy the No, never us on. Thank has with mean, suppliers profitability inflation I point not think I sustainable think all, when what see I the we is referring you I here. profitability. OEMs has first It's be get saw from of unless not it and our dissociation [indiscernible]. to we pay nothing that pass-through. even But This do it for that profitability my to their side our is or record to passed can [ been needs to here at

needs on So on. and to way that. be that's to very we just continue than something no that firm firm other are is There

reductions think is, more look towards down, different you price consumers, I course, prices the when see those of think an there the OEMs. I coming Then at which on and reasons end between the probably basis that is individual on you for so

focus we to on doing. we but no need have comments around business I here, our are that So which

to there. on continue press just to So

correlation And and other customers at with I there there actual negotiations. the between just the not for past, really we then mean, correlation? perhaps you the your is cars? prices a on negotiations teams car price -- and price follow-up team are your your in and have Or a the have in a selling seen

need perspective, system, I care get takes it's which compensation not inflation need their -- business. no that's our they to our case each And of that in think includes... here, our company from we my here No. mean, mean and the point I [indiscernible] I for in

people more sales what S&P was as are back an more that a now outlook industry thing. saw than And to a in where LVP talking in last with the below market will market highlight bit more line line them. and remember catch-up your you it's had or visible you assets in or in heading little on I when mean, on then driven to last and was we market. more like based last the that an with one this you year? the year, I'd up And year, maybe by now also are Is year we a slowdown are you into there customers end the or of more nervousness

don't the see minus I on in I any here. at I general we No, here. mean, the from the dialogues with what least to discrepancies we here S&P think, X% from forward Global as have refer our to customers way

ICE more in because agnostic slowing more we driveline well question EVs neutral that and Europe, is this and it's you are And of somewhat categories, there is for mix represented think the to here. between effect there. where mix the EVs we in effect down I and especially are is but a know, both as us, maybe

the our effect don't here. on So see we end

not are time, we participants to due taking questions. any further Dear

the to over remarks. I to Bratt any hand would for conference like closing now Mikael

Thank much, you very Nadia.

sales, shareholder in a will increase and flow -- cash operating operating adjusted we in deliver while substantial return. substantial am confident substantial I maintaining that shareholder return XXXX and income maintaining

us actions short-term take these actions to targets. and towards believe important improvements, we our long-term steps both Our enable are and creating

remain adverse we prepare that agile more and necessary. should be market for While development,

of our on focus more saving to direct continues most to important vision contribution our is society. Autoliv a sustainable lives, which

XXXX. Friday, call. you, in Our everyone, continued in April first stay Autoliv. Until sincerely appreciate call earnings participating for next XX, time, is quarter scheduled for your interest We safe. Thank today's

for That participating. you today. conference Thank conclude for does our

may disconnect. day. all Have nice a now You