AUTOLIV, INC.

“The automotive passive safety market is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV).”

Annual report 2024A · The company itself

“Since 1997, the Company’s sales compound annual growth rate (CAGR) for passive safety has been around 5% compared to the market rate of around 2.7% which includes an LVP growth of around 1.8%. The Company's outperformance is a result of a steady flow of new passive safety technologies, strong focus on quality and a superior global footprint both in products and engineering.”

Annual report 2024A · The company itself

“In the next three years, all LVP growth is expected to come in medium- and low-income regions with lower CPV, leading to a dilution of the average global CPV. Despite this negative regional LVP mix effect, the annual passive safety market (seatbelts and airbags, including steering wheels), is expected to grow from around $23 billion in 2024 to more than $25 billion over the next three years, based on the current macro-economic outlook and the Company's internal market intelligence and estimates.”

Annual report 2024A · The company itself

“In 2024, the Company's top five customers represented around 44% of its consolidated net sales and the Company's top ten customers represented around 71% of its consolidated net sales.”

Annual report 2024A · The company itself

“In the U.S., federal legislation requires frontal airbags on the driver-side and the passenger-side of all new passenger cars, sport utility vehicles, pickup trucks, and vans.”

Annual report 2024A · The company itself

“A delivery contract is typically for the lifetime of a vehicle model, which is normally between five and seven years depending on customer platform sourcing preferences and strategies. For information on the Company's dependence on customers, see “Risk Factors – Our business could be materially and adversely affected if we lost any of our largest customers or if they were unable to pay their invoices” in Item 1A of this Annual Report, and “Dependence on Customers” under the section “Strategic Risks” in Item 7 of this Annual Report, and Note 20 “Segment Information” to the Consolidated Financial Statements Customer sales trends Asian vehicle producers have steadily become increasingly important, mainly driven by growth with Japanese and Chinese OEMs.”

Annual report 2024A · The company itself

“The discontinuation, lack of commercial success, or loss of business with respect to a particular vehicle model for which we are a significant supplier could reduce our sales and harm our business A number of our customer contracts generally require us to supply a customer’s annual requirements for a particular vehicle model and assembly facilities, rather than for manufacturing a specific quantity of products. Such contracts range from one year to the life of the model, which is generally four to seven years.”

Annual report 2024A · The company itself

“Escalating pricing pressures from our customers may adversely affect our business The automotive industry continues to experience aggressive pricing pressure from customers. This trend is partly attributable to the major automobile manufacturers’ strong purchasing power.”

Annual report 2024A · The company itself

“Our business could be materially and adversely affected if we lost any of our largest customers or if they were unable to pay their invoices We are dependent on a few large customers with strong purchasing power. This is the result of customer consolidation in the last few decades. In 2024, our top five customers represented around 44% of our consolidated sales, and our largest customer contract accounted for around 4% of our consolidated sales.”

Annual report 2024A · The company itself

“Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance To compete effectively in the automotive supply industry, we must be able to launch new products to meet our customers’ timing, performance, and quality standards. At times, we face an uneven number of launches and some launches, for various reasons, may have shortened launch lead times.”

Annual report 2024A · The company itself

“Significant changes in the United States Mexico Canada Agreement (USMCA) could adversely affect our financial performance The U.S., Mexico and Canada entered into the USMCA, a successor to the North American Free Trade Agreement (NAFTA), effective as of July 1, 2020. The USMCA changed the automotive rules of origin that dictate what percentage of an automobile must be built from parts that originated from countries in the NAFTA region. The rules require that at least 75% of parts be made in North America and that 40-45% of an automobile must be made by workers earning at least $16 an hour. Reflective of the automotive industry, our vehicle parts manufacturing facilities in the U.S., Mexico and Canada are highly dependent on duty-free trade amongst the U.S., Mexico, and Canada.”

Annual report 2024A · The company itself

“31 (DOLLARS IN MILLIONS, EXCEPT EPS) Reported 1) change Reported 1) change Global light vehicle production (in thousands) 86,708 (1.2 ) % 87,772 % Consolidated net sales $ 10,390 (0.8 ) % $ 10,475 % % 4.7 % Operating margin, % 9.4 2.8 pp 6.6 (0.9 ) pp % % Earnings per share - diluted 2) 8.04 % 5.72 % 1,059 7.8 % % Return on capital employed, % 25.0 7.3 pp 17.7 0.2 pp 1) Reported figures impacted by costs for capacity alignments and antitrust related matters.”

Annual report 2024A · The company itself

“GROWTH IMPACTED BY LIGHT VEHICLE PRODUCTION AND SAFETY CONTENT PER VEHICLE The most important driver for Autoliv’s sales is the LVP. In 2024, global LVP declined by 1.2%.”

Annual report 2024A · The company itself

“Source: S&P Global, January 2025 The increase in LVP in China of 4.2% was significantly more than what was expected in the beginning of the year, driven mainly by a multitude of successful launches of new models by domestic Chinese OEMs, especially BYD.”

Annual report 2024A · The company itself

“Japan declined by 8.8% impacted by model homologation issues.”

Annual report 2024A · The company itself

“The Company believes that the more stringent crash rating requirements and consumer demand for more safety should enable the global automotive safety market to grow around 1-2 percentage points per year faster than the global LVP in the medium and long term.”

Annual report 2024A · The company itself

“GAAP measure, see reconciliation table below) by 0.4% compared to the global LVP decrease of 1.2% (according to S&P Global, Jan 2025). The 1.6pp outperformance was mainly driven by new product launches, and to a lesser extent higher prices, partly offset by negative customer and model mix.”

Annual report 2024A · The company itself

“Pricing pressure from customers is an inherent part of the automotive components business. The historical extent of price reductions varies from year to year and takes the form of one time give backs, reductions in direct sales prices and/or discounted reimbursements for engineering work.”

Annual report 2024A · The company itself

“The Company relies on internal and/or external suppliers in order to meet its delivery commitments to the customers. In some cases, suppliers are dictated by the customers.”

Annual report 2024A · The company itself

“Increased competition may result in price reductions, reduced margins and the Company's inability to gain or hold market share.”

Annual report 2024A · The company itself

“Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells.”

Annual report 2024A · The company itself

“In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new orders, which may have a material impact on the Company’s results of operations.”

Annual report 2024A · The company itself

“GAAP measure) of around 1.6pp above growth in global LVP.”

Annual report 2024A · The company itself

“During 2024, growth was positively affected through recent launches of several new models, including Subaru Forester, Hyundai Santa Fe, Nissan Kicks, Dacia Duster, Toyota Landcruiser, Zeekr 7z and Toyota 4Runner.”

Annual report 2024A · The company itself

“GAAP measure, see reconciliation table above) by 0.7% in 2024. The largest contributor to the increase was steering wheels, followed by center airbags, side airbags, inflatable curtains and inflators, partly offset by decreases for passenger airbags, knee airbags and driver airbags.”

Annual report 2024A · The company itself

“Segment Information The Company has a single operating and reportable segment which includes Autoliv’s airbag and steering wheels and seatbelt products and components.”

Annual report 2024A · The company itself

“We develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels, for all major vehicle manufacturers in the world.”

Annual report 2024A · The company itself

“Autoliv global market share 44% Global Industry Leader 1) 44% 45% Seatbelts 2015 Building on a long history of collaboration with vehicle manufacturers (OEMs), Autoliv has one of the industry’s most diverse customer bases reflecting a strong position with mass market brands, premium brands, and new entrants to the automotive industry.”

Annual report 2024A · The company itself

“Our ability to consistently outperform market growth is rooted in a strong focus on innovation, quality, and a superior production system serving around 100 car brands globally.”

Annual report 2024A · The company itself

“The Company is a leading developer, manufacturer, and supplier of passive safety systems to the automotive industry with a broad range of product offerings. Passive safety systems are primarily meant to improve safety for occupants in a vehicle. Passive safety systems include modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, pedestrian protection systems, steering wheels, inflator technologies, battery cut-off switches and seatbelts.”

Annual report 2024A · The company itself

“The Company has 62 production facilities in 23 countries and its customers include the world’s largest car manufacturers.”

Annual report 2024A · The company itself

“The Company's drive for excellence is what makes Autoliv the world’s leading supplier of automotive safety systems.”

Annual report 2024A · The company itself

“Although business with any given customer is typically split into several contracts (either on the basis of one contract per vehicle model or on a broader platform basis), the loss of business from any of our major customers (whether by lower overall demand for vehicles, cancellation of existing contracts or the failure to award us new business) could have a material adverse effect on our business, results of operations, and financial condition.”

Annual report 2024A · The company itself

“ORDER INTAKE ADDING TO AN ALREADY STRONG CUSTOMER BASE The Company's order intake in 2024, with high win rates for new platforms with both new and traditional OEMs as well as for both EV and ICE platforms, added to the Company's already strong base, which includes supplying products to more than 1,300 vehicle models and around 100 car brands. The order intake in 2024 supports the Company's ability to defend its around 45% sales market share in the near and medium term.”

Annual report 2024A · The company itself

“During this period the products are engineered into the vehicle to provide the expected protection for occupants in case of a crash and to meet legal and regulatory requirements, as well as other requirements from the vehicle manufacturer.”

Annual report 2024A · The company itself

“In China, domestic OEMs have gained significant market shares and as a group now has larger market share than global OEMs have in China. Autoliv's sales to domestic OEMs in China has grown rapidly. In 2022, this group accounted for 22% of Autoliv's sales in China, and in 2024 their share of Autoliv sales in China was 37%.”

Annual report 2024A · The company itself

“The fastest growing OEM in China in recent years is BYD. BYD has a uniquely high degree of vertical integration, with a large proportion of in-house sourcing of products and systems. This includes passive safety systems, which is supplied by its subsidiary FinDreams Technology. Autoliv supplies components, especially inflators, to FinDreams Technology.”

Annual report 2024A · The company itself

“The Company’s sales are split over several hundred contracts covering more than 1,300 vehicle models. This moderates the effect of changes in vehicle demand of individual countries and regions as well as production issues.”

Annual report 2024A · The company itself

“As a result of this highly consolidated market, the Company is dependent on a relatively small number of customers with strong purchasing power. In 2024, the Company's five largest customers accounted for around 41% of global LVP and the ten largest accounted for around 62% of global LVP. In 2024, the Company’s five largest customers accounted for around 44% of consolidated sales and the ten largest customers accounted for around 71% of consolidated sales.”

Annual report 2024A · The company itself

“% of Autoliv sales % of Global LVP 1) VW 9.2 % 10.0 % Toyota 9.1 % 12.1 % Stellantis 9.1 % 5.9 % Honda 8.7 % 4.4 % Hyundai 7.6 % 8.4 % Ford 6.8 % 4.1 % General Motors 5.6 % 4.7 % Nissan 5.4 % 4.7 % Mercedes 5.2 % 2.7 % Major EV maker 4.5 % 2.0 % 1) Source: S&P Global January 2025 Although business with every major customer is split into at least several contracts (usually one contract per vehicle platform) and although the customer base has become more balanced and diversified as a result of the Company's significant expansion in China and other rapidly-growing markets, the loss of all business from a major customer (whether by a cancellation of existing contracts or not awarding Autoliv new business), the consolidation of one or more major customers or a bankruptcy of a major customer could have a material adverse effect on the Company.”

Annual report 2024A · The company itself

“PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made, and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly.”

Annual report 2024A · The company itself

“The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers.”

Annual report 2024A · The company itself

“Our market share with the fast-growing domestic OEMs increased significantly as our sales grew by 24% to this group.”

Annual report 2024A · The company itself

“Source: S&P Global, January 2025 The increase in LVP in China of 4.2% was significantly more than what was expected in the beginning of the year, driven mainly by a multitude of successful launches of new models by domestic Chinese OEMs, especially BYD.”

Annual report 2024A · The company itself

“Autoliv have therefore increasingly focused resources on developing new products and to strengthen our position with new automakers to capture the growth opportunities that comes with these changes. This includes long term development agreements with several new automakers in China in recent years as well as increased investments in capacity and capabilities in India.”

Annual report 2024A · The company itself

“In China, the Company estimates that around 60% of order intake in 2024 was with domestic Chinese OEMs, which supports our expectation that domestic OEMS in China will continue to increase its share of the Company's sales in China in 2025.”

Annual report 2024A · The company itself

“In China, domestic OEMs have gained significant market shares and as a group now has larger market share than global OEMs have in China. Autoliv's sales to domestic OEMs in China has grown rapidly. In 2022, this group accounted for 22% of Autoliv's sales in China, and in 2024 their share of Autoliv sales in China was 37%.”

Annual report 2024A · The company itself

“The fastest growing OEM in China in recent years is BYD. BYD has a uniquely high degree of vertical integration, with a large proportion of in-house sourcing of products and systems. This includes passive safety systems, which is supplied by its subsidiary FinDreams Technology. Autoliv supplies components, especially inflators, to FinDreams Technology.”

Annual report 2024A · The company itself

“Domestic OEM LVP in China grew by 18% while LVP declined by 9.5% for global OEMs in China in 2024. Autoliv's sales to domestic OEMs increased by 24% in 2024.”

Annual report 2024A · The company itself

“To support our growth we are investing in new facilities in China, Vietnam, and India.”

Annual report 2024A · The company itself

“Autoliv is the leading automotive safety supplier to both global and domestic OEMs in China, and our China division contributed 19% to Autoliv’s global sales in 2024. Chinese light vehicle manufacturers have become increasingly important contributors to Autoliv’s sales.”

Annual report 2024A · The company itself

“As a group, Asian OEMs now represent around 47% of our global sales, whereof Chinese OEMs accounted for 7 percentage points.”

Annual report 2024A · The company itself

“The Chinese OEMs as a group accounted for around 7% of the Company's consolidated net sales in 2024, with Geely representing more than 2% of the Company's consolidated net sales.”

Annual report 2024A · The company itself

“For example, in high-income markets, light vehicles have an average passive safety content values of around $340 per vehicle, whereas in growth markets such as China and India the average passive safety content per vehicle is approximately $200 and $120, respectively. Due to the concentration of the majority of the growth in global LVP over time in growth markets, our operating results may be impacted if the passive safety content per vehicle remains low and if the penetration of automotive safety systems does not increase in these regions.”

Annual report 2024A · The company itself

“Our business in Asia is subject to aggressive competition and is sensitive to economic, market, and political conditions We operate in the automotive supply market throughout Asia including the highly competitive markets in China, South Korea, and India. In each of these markets we face competition from both international and smaller domestic manufacturers.”

Annual report 2024A · The company itself

“The lowest major CPV region is India, which saw its share of LVP increase from 6.1% to 6.5%. CPV in China is below the global average, and China’s share of global LVP increased from 32.0% to 33.7%.”

Annual report 2024A · The company itself

“Our sales growth underperformed LVP growth by 7.4 percentage points in China. LVP growth in China was tilted to domestic OEMs with typically lower safety content.”

Annual report 2024A · The company itself

“NET SALES BY REGION (Dollars in millions) 2024 2023 2022 China $ 2,010 $ 2,105 $ 1,883 Asia, excl. China 2,010 1,968 1,638 Americas 3,424 3,526 2,967 Europe 2,946 2,877 2,355 Total $ 10,390 $ 10,475 $ 8,842 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.”

Annual report 2024A · The company itself

“Work stoppages, slow-downs or other labor issues at our customers’ facilities or at our facilities could adversely affect our operations Because the automotive industry relies heavily on “just-in-time” delivery of components during the assembly and manufacture of vehicles, a work stoppage or slow-down at one or more of the Company’s facilities could have a material adverse effect on our business.”

Annual report 2024A · The company itself

“In addition, there is a risk that inflation, high-turnover rates, and increased competition may reduce the efficiencies now available in bestcost countries to levels that no longer allow for cost-beneficial restructuring opportunities.”

Annual report 2024A · The company itself

“2024 light vehicle market was impacted by a technological and geopolitical uncertainties with continued high customer call-off volatility and inflationary pressure on costs for labor.”

Annual report 2024A · The company itself

“The improvement was mostly due to that better customer call-off accuracy supported an improved operational efficiency with around $82 million in lower costs for labor, premium freight and waste and scrap.”

Annual report 2024A · The company itself

“Our approximately 65,000 colleagues in operations across 25 countries give us opportunities to leverage synergies, best practices, and scale.”

Annual report 2024A · The company itself

“We expect suppliers and third parties to enact the same standards and processes as we do when it comes to proactively managing key sustainability impacts and risks such as GHG emissions, labor rights, and anti-corruption. To manage our global supply chain in a responsible manner, we focus on integrating sustainability into relevant supply chain management processes.”

Annual report 2024A · The company itself

“The Company provides market-based competitive compensation through its salary, annual incentive, and long-term incentive programs and benefits packages that promote employee well-being across all aspects of their lives.”

Annual report 2024A · The company itself

“Cost inflation moderated but remains elevated, especially for labor • Continued growth above LVP despite unfavorable LVP mix development • Order intake impacted by developments in technology, geopolitics and customer landscape.”

Annual report 2024A · The company itself

“Cost pressures from labor, in our own operations and related to our suppliers' labor costs, had a negative impact on our profitability in 2024. Most of the inflationary cost pressure was offset by customer price and other compensations.”

Annual report 2024A · The company itself

“The main reason for the cost increase was higher costs for personnel, due to high wage inflation.”

Annual report 2024A · The company itself

“Cost inflation remained significant and related primarily to labor.”

Annual report 2024A · The company itself

“The Company's productivity improvement target is to achieve at least 5% savings per year.”

Annual report 2024A · The company itself

“It is the Company’s strategy to reduce the risks associated with fluctuating LVP by using temporary personnel in direct production, when appropriate. During 2024 and 2023, the level of temporary personnel in relation to total personnel in direct production decreased to 11% from 13%.”

Annual report 2024A · The company itself

“In response, Autoliv management continued to implement strict cost control measures, as well as initiating significant structural cost reduction measures.”

Annual report 2024A · The company itself

“We also saw positive results on direct labor efficiency in 2024, especially in the second half year.”

Annual report 2024A · The company itself

“Autonomous driving, connected cars and electric vehicles are transforming the automotive industry. We are wellpositioned to sustainably adapt to these new business opportunities.”

Annual report 2024A · The company itself

“Our understanding of these trends, paired with our approach to real-life safety, enables us to innovate and stay competitive. We challenge and redefine the standards of mobility safety to sustainably deliver leading solutions. Our research and innovation capabilities are well-equipped to deal with electrified and automated cars and to create specially designed safety products to protect vulnerable road users.”

Annual report 2024A · The company itself

“Our ability to maintain and improve existing products, while successfully developing and introducing distinctive new and enhanced products that anticipate changing customer and consumer preferences and capitalize upon emerging technologies will be a significant factor in our ability to remain competitive. We may not be able to effectively implement new technologydriven products and services or be successful in marketing such products and services.”

Annual report 2024A · The company itself

“The APS, based on the goals of improving quality and efficiency, is at the core of Autoliv’s manufacturing philosophy. APS integrates essential quality elements, such as mistake proofing, statistical process control and operator involvement, into the manufacturing processes so all Autoliv associates are aware of and understand the critical connection between themselves and the Company's lifesaving products.”

Annual report 2024A · The company itself

“Autoliv’s assembly operations generally are not constrained by capacity considerations unless there is a disruption in the supply of raw materials and components. When dramatic shifts in LVP occur, Autoliv can generally adjust capacity in response to any changes in demand within a few days by adding or removing work shifts and within a few months by adding or removing standardized production and assembly lines. Most of Autoliv’s assembly factories can make sufficient space available to accommodate additional production lines to satisfy foreseeable increases in capacity.”

Annual report 2024A · The company itself

“Restructuring, efficiency, and strategic initiatives and capacity alignments are complex and difficult and at any time additional restructuring steps may be necessary, possibly on short notice and at significant cost Our restructuring, efficiency, and strategic initiatives and capacity alignments include efforts to adjust our manufacturing capacity, direct and indirect labor workforce, and cost structure to meet current and projected operational and market requirements, including plant closures, transfer of sourcing to best cost countries, consolidation of our supplier base, and standardization of products to reduce our overhead costs and consolidate our operational centers. The successful implementation of our restructuring activities and capacity alignments will involve sourcing, logistics, technology, and employment arrangements.”

Annual report 2024A · The company itself

“In 2024, however, the Company achieved its 5% productivity target, as gradual improvement in customer call -off volatility enabled an improved operational efficiency.”

Annual report 2024A · The company itself

“We also saw positive results on direct labor efficiency in 2024, especially in the second half year.”

Annual report 2024A · The company itself

“To meet this target, Autoliv has developed a set of strategies to reduce costs in manufacturing: • Autoliv production system (APS) is based on lean manufacturing methodology which aims to continuously increase output with less resources.”

Annual report 2024A · The company itself

“Autoliv’s products are generally powertrain-agnostic and can be fit - ted in electric vehicles and plug-in hybrid vehicles with only modelspecific adjustments needed. Around 14% of sales in 2024 came from battery electric vehicles with zero tailpipe emissions, and we estimate that our global EV market share is in line with our total global market share of 44%.”

Annual report 2024A · The company itself

“For example, our customers are increasingly focused on developing electric vehicles. If we fail to be awarded business on electric vehicle models, or these electric vehicles are not successful commercially, it will harm our future business prospects.”

Annual report 2024A · The company itself

“In 2024, OEMs sourcing of new business was at the lowest level since 2018 for the industry, as OEMs are reconsidering certain future product offerings due to geopolitical and technological uncertainties.”

Annual report 2024A · The company itself

“The Company estimates that the sales to Electric Vehicles (not including PHEVs) amounted to around $1.4 billion in 2024 .”

Annual report 2024A · The company itself

“Domestic OEM LVP in China grew by 18% while LVP declined by 9.5% for global OEMs in China in 2024. Autoliv's sales to domestic OEMs increased by 24% in 2024.”

Annual report 2024A · The company itself

“Our understanding of these trends, paired with our approach to real-life safety, enables us to innovate and stay competitive. We challenge and redefine the standards of mobility safety to sustainably deliver leading solutions. Our research and innovation capabilities are well-equipped to deal with electrified and automated cars and to create specially designed safety products to protect vulnerable road users.”

Annual report 2024A · The company itself

“Our ability to maintain and improve existing products, while successfully developing and introducing distinctive new and enhanced products that anticipate changing customer and consumer preferences and capitalize upon emerging technologies will be a significant factor in our ability to remain competitive. We may not be able to effectively implement new technologydriven products and services or be successful in marketing such products and services.”

Annual report 2024A · The company itself

“In addition, our future success will depend on, among other factors, our ability to attract, develop, and retain other qualified personnel, particularly engineers and other employees with software and technical expertise.”

Annual report 2024A · The company itself

“We develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels, for all major vehicle manufacturers in the world.”

Annual report 2024A · The company itself

“Autonomous driving, connected cars and electric vehicles are transforming the automotive industry. We are wellpositioned to sustainably adapt to these new business opportunities.”

Annual report 2024A · The company itself

“Our understanding of these trends, paired with our approach to real-life safety, enables us to innovate and stay competitive. We challenge and redefine the standards of mobility safety to sustainably deliver leading solutions. Our research and innovation capabilities are well-equipped to deal with electrified and automated cars and to create specially designed safety products to protect vulnerable road users.”

Annual report 2024A · The company itself

“For example, our customers are increasingly focused on developing electric vehicles. If we fail to be awarded business on electric vehicle models, or these electric vehicles are not successful commercially, it will harm our future business prospects.”

Annual report 2024A · The company itself

“Utilizing Autoliv’s competence from our core business, we have developed several products for electrical safety, with the common denominator being utilization of pyrotechnics. The products range from high volume, off-the-shelf products, primarily the Pyro Safety Switch, to tailor-made solutions.”

Annual report 2024A · The company itself

“The component factories manufacture inflators, propellant, initiators, textile cushions, webbing, pressed steel parts, springs, and over molded steel parts used in seatbelt and airbag assembly and steering wheels. The assembly factories source components from a number of parties, including Autoliv’s own component factories, and assemble complete restraint systems for “just-in-time” delivery to customers.”

Annual report 2024A · The company itself

“Direct material cost represents approximately 55% of the Company's net sales in 2024.”

Annual report 2024A · The company itself

“The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals.”

Annual report 2024A · The company itself

“The Company takes several actions to manage the raw material fluctuations, such as competitive sourcing and looking for alternative materials. The Company is also taking necessary actions to gradually implement raw materials with a lower carbon emission footprint.”

Annual report 2024A · The company itself

“The component factories manufacture inflators, propellant, initiators, textile cushions, webbing, pressed steel parts, springs, and over molded steel parts used in seatbelt and airbag assembly and steering wheels. The assembly factories source components from a number of parties, including Autoliv’s own component factories, and assemble complete restraint systems for “just-in-time” delivery to customers.”

Annual report 2024A · The company itself

“Direct material cost represents approximately 55% of the Company's net sales in 2024.”

Annual report 2024A · The company itself

“The Company takes several actions to manage the raw material fluctuations, such as competitive sourcing and looking for alternative materials. The Company is also taking necessary actions to gradually implement raw materials with a lower carbon emission footprint.”

Annual report 2024A · The company itself

“Most of the growth is expected to come from markets in Asia and South America.”

Annual report 2024A · The company itself

“According to S&P Global, LVP is forecasted to grow to close to 91 million by 2027 from almost 87 million in 2024, due to growing demand and export in medium- and low-income markets.”

Annual report 2024A · The company itself

“In medium- and low-income markets (all markets other than the high-income markets above), the Company sees great opportunities for CPV growth from more airbags and advanced seatbelt products. Average CPV in these markets is around $200 or almost $140 less than in the high-income markets.”

Annual report 2024A · The company itself

“Changes in our product mix may impact our financial performance We sell products that have varying profit margins. Our financial performance can be impacted depending on the mix of products we sell during a given period. Our earnings guidance, estimates, and financial targets assume a certain product sales mix as well as a geographic sales mix as many of the growth markets have a lower content per vehicle.”

Annual report 2024A · The company itself

“India requires frontal airbags for the driver from July 2019, and passenger airbags from 2021 for all new passenger vehicles (M1), moreover has announced that side airbags shall become mandatory in 2023. In addition, India's Bharat NCAP went into effect in 2023 and was updated in 2024.”

Annual report 2024A · The company itself

“Autoliv have therefore increasingly focused resources on developing new products and to strengthen our position with new automakers to capture the growth opportunities that comes with these changes. This includes long term development agreements with several new automakers in China in recent years as well as increased investments in capacity and capabilities in India.”

Annual report 2024A · The company itself

“To support our growth we are investing in new facilities in China, Vietnam, and India.”

Annual report 2024A · The company itself

“As a group, Asian OEMs now represent around 47% of our global sales, whereof Chinese OEMs accounted for 7 percentage points.”

Annual report 2024A · The company itself

“In 2024, the total Asian market, accounted for 39% of Autoliv’s sales. The second largest market was Americas, representing 33% of sales.”

Annual report 2024A · The company itself

“As a group they represented around 46% of the Company's consolidated net sales in 2024, of which Japanese OEMs accounts for almost two thirds. This is a result of the Company's stronger market position based on its local presence in Japan.”

Annual report 2024A · The company itself

“For example, in high-income markets, light vehicles have an average passive safety content values of around $340 per vehicle, whereas in growth markets such as China and India the average passive safety content per vehicle is approximately $200 and $120, respectively. Due to the concentration of the majority of the growth in global LVP over time in growth markets, our operating results may be impacted if the passive safety content per vehicle remains low and if the penetration of automotive safety systems does not increase in these regions.”

Annual report 2024A · The company itself

“RISKS RELATED TO INTERNATIONAL OPERATIONS Our business is exposed to risks inherent in international operations We currently conduct operations in various countries and jurisdictions, including locating certain of our manufacturing and distribution facilities internationally, which subjects us to the legal, political, regulatory and social requirements and economic conditions in these jurisdictions. Some of these countries are considered growth markets and emerging markets.”

Annual report 2024A · The company itself

“Our business in Asia is subject to aggressive competition and is sensitive to economic, market, and political conditions We operate in the automotive supply market throughout Asia including the highly competitive markets in China, South Korea, and India. In each of these markets we face competition from both international and smaller domestic manufacturers.”

Annual report 2024A · The company itself

“The lowest major CPV region is India, which saw its share of LVP increase from 6.1% to 6.5%. CPV in China is below the global average, and China’s share of global LVP increased from 32.0% to 33.7%.”

Annual report 2024A · The company itself

“GAAP measure) outperformed LVP growth by 11 percentage points in Asia excluding China supported by strong outgrowth in India, Japan and South Korea. We outperformed by 6.1 percentage points in Europe due mainly to product launches and to a smaller extent higher prices, while it was in line with LVP growth in Americas.”

Annual report 2024A · The company itself

“NET SALES BY REGION (Dollars in millions) 2024 2023 2022 China $ 2,010 $ 2,105 $ 1,883 Asia, excl. China 2,010 1,968 1,638 Americas 3,424 3,526 2,967 Europe 2,946 2,877 2,355 Total $ 10,390 $ 10,475 $ 8,842 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.”

Annual report 2024A · The company itself

“Furthermore, our customers are also increasingly requiring us to track sustainable sources of certain raw materials, which also requires additional diligence efforts and there can be no assurance that we will be able to obtain these materials in a cost-efficient and sustainable manner.”

Annual report 2024A · The company itself

“In 2024, we launched a collaboration and engagement program with our direct material suppliers to drive the low-carbon electricity transition and overall GHG emissions reductions in the supply chain. The program consists of workshops with selected strategic supplier groups, as well as webinars reaching all direct material suppliers.”

Annual report 2024A · The company itself

“In 2021, we published our Sustainable Financing Framework aligned with the ICMA Green Bond Principles. In March 2023, we issued our inaugural €500M green bond, with all proceeds allocated to Clean Transportation.”

Annual report 2024A · The company itself

“In June 2021, the Company launched an updated climate strategy including new long-term climate ambitions: • Carbon neutrality in own operations by 2030, and • Net-zero emissions across our supply chain by 2040 These industry-leading climate ambitions are aligned with a 1.5°C trajectory and should position the Company as the supplier of choice for the most climate-focused customers, helping to ensure the Company's competitiveness now and in the future. In addition to these ambitions, the Company adopted Science Based Targets (SBTs) for 2030 covering its own operations as well as the supply chain.”

Annual report 2024A · The company itself

“Our access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors. Our ability to obtain unsecured funding at a reasonable cost is dependent on our credit ratings or our perceived creditworthiness.”

Annual report 2024A · The company itself

“Our pension obligations are dependent on several factors, including factors outside our control such as changes in interest rates, the market performance of the diversified investments underlying the pension plans, actuarial data and adjustments and an increase in the minimum funding requirements or other regulatory changes governing the plans. Adverse equity market conditions and volatility in the credit market may have an unfavorable impact on the value of our pension assets and our future estimated pension liabilities.”

Annual report 2024A · The company itself

“Autoliv is committed to maintain a “strong investment grade credit rating."”

Annual report 2024A · The company itself

“From a financial impact perspective, the most material transi - tion risks identified were: • The risk of a global decrease in overall vehicles sales • Increasing prices for certain raw materials as a result of carbon pricing mechanisms (such as CBAM) • Potential revenue loss if Autoliv fails to meet increasingly strict supplier requirements from OEMs who themselves have set strict GHG emissions reduction targets The most material physical risks identified, generally connected to a 3-4°C scenario, were factors that would lead to significant production disruptions.”

Annual report 2024A · The company itself

“In June 2021, the Company launched an updated climate strategy including new long-term climate ambitions: • Carbon neutrality in own operations by 2030, and • Net-zero emissions across our supply chain by 2040 These industry-leading climate ambitions are aligned with a 1.5°C trajectory and should position the Company as the supplier of choice for the most climate-focused customers, helping to ensure the Company's competitiveness now and in the future. In addition to these ambitions, the Company adopted Science Based Targets (SBTs) for 2030 covering its own operations as well as the supply chain.”

Annual report 2024A · The company itself

“In addition, our future success will depend on, among other factors, our ability to attract, develop, and retain other qualified personnel, particularly engineers and other employees with software and technical expertise.”

Annual report 2024A · The company itself

“The APS, based on the goals of improving quality and efficiency, is at the core of Autoliv’s manufacturing philosophy. APS integrates essential quality elements, such as mistake proofing, statistical process control and operator involvement, into the manufacturing processes so all Autoliv associates are aware of and understand the critical connection between themselves and the Company's lifesaving products.”

Annual report 2024A · The company itself

“The improvement of operating assets and liabilities, net in both 2023 and 2024 was mainly a result of improved customer call-off accuracy enabling more precise planning and use of resources as well as a multi-year working capital efficiency program aiming at improving working capital by $800 million. At the end of 2024, the Company estimates that around $700 million improvement in working capital has been achieved since the start of the program.”

Annual report 2024A · The company itself

“We develop, manufacture and market protective systems, such as airbags, seatbelts, and steering wheels, for all major vehicle manufacturers in the world.”

Annual report 2024A · The company itself

“Additionally, we may experience disruptions if there are newly imposed trade restrictions or delays in customs processing, including if we are unable to obtain government authorization to export or import certain materials, including materials that may be viewed as dangerous such as the propellant used for our inflators.”

Annual report 2024A · The company itself

“Governmental restrictions may impact our business adversely Some of our customers are (or may be) owned by a governmental entity, receive various forms of governmental aid or support, or are subject to governmental influence in other forms, which may impact us as a supplier to these customers. As a result, they may be required to partner with local entities or procure components from local suppliers to achieve a specific local content or be subject to other restrictions regarding localized content or ownership.”

Annual report 2024A · The company itself

“The current U.S. presidential administration has created uncertainty about the future relationship between the U.S. and certain of its trading partners, including with respect to the trade policies and agreements, treaties, government regulations and tariffs that could apply to trade between the U.S. and other nations. For example, the U.S. administration has indicated that it intends to impose tariffs on imports from Mexico, Canada, and the European Union. In February 2025, additional tariffs have been applied to imports from China and China responded with retaliatory tariffs on the import of American goods.”

Annual report 2024A · The company itself

“Significant changes in the United States Mexico Canada Agreement (USMCA) could adversely affect our financial performance The U.S., Mexico and Canada entered into the USMCA, a successor to the North American Free Trade Agreement (NAFTA), effective as of July 1, 2020. The USMCA changed the automotive rules of origin that dictate what percentage of an automobile must be built from parts that originated from countries in the NAFTA region. The rules require that at least 75% of parts be made in North America and that 40-45% of an automobile must be made by workers earning at least $16 an hour. Reflective of the automotive industry, our vehicle parts manufacturing facilities in the U.S., Mexico and Canada are highly dependent on duty-free trade amongst the U.S., Mexico, and Canada.”

Annual report 2024A · The company itself

“However, these regulations are subject to change based on a number of factors that are not within our control, including new scientific or medical data, adverse publicity regarding the industry recalls and safety risks of airbags or seatbelts (for instance, to children and small adults), domestic and foreign political developments or considerations, and litigation relating to our products and our competitors’ products. Changes in government regulations in response to these and other considerations could have a severe impact on our business.”

Annual report 2024A · The company itself

“Geopolitical uncertainties could continue to create a challenging operating environment. We also see a likelihood that there could be new or increased tariffs or other related trade restrictions imposed in 2025 that may impact our operations.”

Annual report 2024A · The company itself

“The Company still sees effects coming from import tariffs and trade barriers across borders. These barriers are impacting the raw material market and creating pricing and availability uncertainties.”

Annual report 2024A · The company itself

“Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products that the Company sells.”

Annual report 2024A · The company itself

“An unfavorable outcome could have a material adverse impact on our customer relationships, business prospects, reputation, operating results, cash flows or financial condition, and our insurance would likely not mitigate such impact. The Company cannot predict the ultimate outcome of such dispute and is unable to estimate the loss or a range of loss, or predict the reporting periods in which any such loss may be recorded.”

Annual report 2024A · The company itself

“Light vehicle sales have decreased in several regions, inflation remained high, and although the volatility in Light Vehicle Production (LVP) improved, it remained above pre-pandemic level.”

Annual report 2024A · The company itself

“However, global LVP has declined from a peak of 92 million in 2017, to 87 million in 2024. We expect that LVP will continue to grow both in the medium and in the long term.”

Annual report 2024A · The company itself

“When significant volatility in LVP occurs, as we saw in 2022 and 2023 due to supply disruptions, or when there is a shift in regional LVP, the capacity adjustments can take more time and be more costly. During 2024 the volatility of LVP continued to improve, although it is still more volatile than prior to the COVID-19 pandemic.”

Annual report 2024A · The company itself

“The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy producing countries and growth markets), changes in interest rate levels and credit availability, and other factors.”

Annual report 2024A · The company itself

“A prolonged recession and/or a downturn in our industry could result in us having insufficient funds to continue our operations and external financing may not be available to us or available only on materially different terms than what has historically been available Our ability to generate cash from our operations is highly dependent on automotive sales and LVP, the global economy, and the economies of our important markets. If LVP were to remain on low levels for an extended period of time, we would experience a significantly negative cash flow.”

Annual report 2024A · The company itself

“2024 light vehicle market was impacted by a technological and geopolitical uncertainties with continued high customer call-off volatility and inflationary pressure on costs for labor.”

Annual report 2024A · The company itself

“Around 30% of Autoliv’s costs are fixed; therefore, short-term earnings are dependent on sales volumes and highly dependent on capacity utilization in the Company’s plants. Global LVP is an indicator of the Company’s sales development.”

Annual report 2024A · The company itself

“The LVP decline of 4.7% in Europe was impacted by affordability issues and technology uncertainties.”

Annual report 2024A · The company itself

“Outside the U.S., the Company’s most significant currency is the Euro. The Company estimates that 27% of its consolidated net sales will be denominated in Euro or other European currencies during 2025, while 18% of its consolidated net sales are estimated to be denominated in U.S. dollars. The Company estimates that a 1% increase in the value of the U.S. dollar versus European currencies will decrease reported U.S. dollar annual net sales in 2025 by $28 million, while operating income for 2025 will decline by $3 million, assuming reported corporate average margin.”

Annual report 2024A · The company itself

“Globally, European-based brands accounted for 30% of our sales in 2024.”

Annual report 2024A · The company itself

“European based brands accounted for 30% of the Company's consolidated net sales in 2024.”

Annual report 2024A · The company itself

“Rest of World 3% Rest of Europe 7% United Kingdom 10% Sweden 33% United States 47% and operational efficiencies.”

Annual report 2024A · The company itself

“GAAP measure) outperformed LVP growth by 11 percentage points in Asia excluding China supported by strong outgrowth in India, Japan and South Korea. We outperformed by 6.1 percentage points in Europe due mainly to product launches and to a smaller extent higher prices, while it was in line with LVP growth in Americas.”

Annual report 2024A · The company itself

“NET SALES BY REGION (Dollars in millions) 2024 2023 2022 China $ 2,010 $ 2,105 $ 1,883 Asia, excl. China 2,010 1,968 1,638 Americas 3,424 3,526 2,967 Europe 2,946 2,877 2,355 Total $ 10,390 $ 10,475 $ 8,842 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.”

Annual report 2024A · The company itself

“The successful execution of the Company's strategies relies on its ability to shape a quality and performance-oriented culture, and to adapt quickly to sudden shifts in its circumstances, such as supply chain disruptions and geopolitical instability.”

Annual report 2024A · The company itself

“Disruptions in our supply chain may result for many reasons, including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes, mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions issues (including epidemics and pandemics), natural disasters, war, political upheaval, as well as logistical complications due to labor disruptions, weather or natural disasters, acts of terrorism or violence (such as the disruptions in shipping in the Red Sea), mechanical failures, and legislation or regulation regarding the transport of hazardous goods.”

Annual report 2024A · The company itself

“The current U.S. presidential administration has created uncertainty about the future relationship between the U.S. and certain of its trading partners, including with respect to the trade policies and agreements, treaties, government regulations and tariffs that could apply to trade between the U.S. and other nations. For example, the U.S. administration has indicated that it intends to impose tariffs on imports from Mexico, Canada, and the European Union. In February 2025, additional tariffs have been applied to imports from China and China responded with retaliatory tariffs on the import of American goods.”

Annual report 2024A · The company itself

“Unfavorable global economic conditions and geopolitical events could adversely affect our business, results of operations and financial condition The macro-economic uncertainty has been exacerbated by the war in Ukraine and the war in Israel/Gaza, and disruptions to shipping in the Red Sea. Although the length and impact of the ongoing war/conflicts is highly unpredictable, it exacerbated volatility in commodity prices, energy prices, inflationary pressures, credit markets, foreign exchange rates and supply chain disruptions.”

Annual report 2024A · The company itself

“There are also trade and political tensions between China and other countries in the western world.”

Annual report 2024A · The company itself

“Geopolitical uncertainties could continue to create a challenging operating environment. We also see a likelihood that there could be new or increased tariffs or other related trade restrictions imposed in 2025 that may impact our operations.”

Annual report 2024A · The company itself

“In 2024, OEMs sourcing of new business was at the lowest level since 2018 for the industry, as OEMs are reconsidering certain future product offerings due to geopolitical and technological uncertainties.”

Annual report 2024A · The company itself

“Light vehicle sales have decreased in several regions, inflation remained high, and although the volatility in Light Vehicle Production (LVP) improved, it remained above pre-pandemic level.”

Annual report 2024A · The company itself

“From a financial impact perspective, the most material transi - tion risks identified were: • The risk of a global decrease in overall vehicles sales • Increasing prices for certain raw materials as a result of carbon pricing mechanisms (such as CBAM) • Potential revenue loss if Autoliv fails to meet increasingly strict supplier requirements from OEMs who themselves have set strict GHG emissions reduction targets The most material physical risks identified, generally connected to a 3-4°C scenario, were factors that would lead to significant production disruptions.”

Annual report 2024A · The company itself

“Inflation is currently high world-wide and may continue for some time, which could lead to fluctuations in interest rates.”

Annual report 2024A · The company itself

“In addition, there is a risk that inflation, high-turnover rates, and increased competition may reduce the efficiencies now available in bestcost countries to levels that no longer allow for cost-beneficial restructuring opportunities.”

Annual report 2024A · The company itself

“Inflation is also currently high world-wide and may continue for an unforeseen time, which could lead to fluctuations in interest rates.”

Annual report 2024A · The company itself

“Changes in raw material costs had a limited impact on our profitability in 2024. The Company expects only limited raw material price changes in 2025.”

Annual report 2024A · The company itself

“Due in part to the negative impact of the war in Ukraine, we have experienced exacerbated increases in raw materials and increased costs for transportation, energy, and commodities. Although we have negotiated and continue to negotiate with our customers with respect to these additional costs, commercial negotiations with our customers may not be successful or may not offset all of the adverse impact of higher transportation, energy and commodity costs.”

Annual report 2024A · The company itself

“Global megatrends such as climate change, circular economy and urbanization are shaping the automotive industry and future transport systems. These megatrends influence policy and regulations, technological developments, our key stakeholders’ priorities and create both opportunities and risks for Autoliv.”

Annual report 2024A · The company itself

“These include wildfires, flooding and ex - treme heat. These risks were seen as particularly high in countries and regions such as southwest U.S., Mexico, India and China.”

Annual report 2024A · The company itself

“Disruptions in our supply chain may result for many reasons, including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes, mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions issues (including epidemics and pandemics), natural disasters, war, political upheaval, as well as logistical complications due to labor disruptions, weather or natural disasters, acts of terrorism or violence (such as the disruptions in shipping in the Red Sea), mechanical failures, and legislation or regulation regarding the transport of hazardous goods.”

Annual report 2024A · The company itself

“We also face physical and transition risks from climate change. The manifestations of climate change, such as extreme weather conditions or more frequent extreme weather events, including wildfires, flooding, water stress and extreme heat, could disrupt our operations, damage our facilities, disrupt our supply chain, including our customers or suppliers, impact the availability and cost of materials needed for manufacturing or increase insurance and other operating costs.”

Annual report 2024A · The company itself

“Consumer research clearly shows that consumers want safe vehicles, and several significant trends are likely to positively influence overall safety content per vehicle. These include: 1) Society becoming increasingly focused on Vision Zero and its goal of reducing traffic fatalities and their associated costs; 2) Demographic trends of increased urbanization, aging driver populations, and increased safety focus in growth markets; 3) Evolving government regulations and test rating systems to improve the safety of vehicles in various markets, such as the updated European New Car Assessment Program (Euro NCAP), China NCAP, and USNCAP; and 4) The trend towards more electrical vehicles may lead to roomier interiors that may require more advanced passive safety systems, as well as products to cut the electrical power in case of an accident.”

Annual report 2024A · The company itself

“The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy producing countries and growth markets), changes in interest rate levels and credit availability, and other factors.”

Annual report 2024A · The company itself

“We saw an improvement in call-off volatility in 2024, especially in the second half year. This improvement supported our improvement in operating efficiency and productivity, including a significant reduction in direct workforce. However, customer call-off volatility remained higher than pre-pandemic levels, and low customer demand visibility and changes to customer call-offs with short notice still had a negative impact on our production efficiency and profitability.”

Annual report 2024A · The company itself

“The LVP decline of 4.7% in Europe was impacted by affordability issues and technology uncertainties.”

Annual report 2024A · The company itself

“The improvement was mostly due to that better customer call-off accuracy supported an improved operational efficiency with around $82 million in lower costs for labor, premium freight and waste and scrap.”

Annual report 2024A · The company itself

“There is also volatility in the sea freight rates driven by geopolitical events.”

Annual report 2024A · The company itself

“We could experience disruption in our supply or delivery chain, which could cause one or more of our customers to halt or delay production We, as with other component manufactures in the automotive industry, ship our products to customer vehicle assembly facilities throughout the world on a “just-in-time” basis for our customers to maintain low inventory levels. Our suppliers (external suppliers as well as our own production sites) use a similar method in providing raw materials to us.”

Annual report 2024A · The company itself

“Due in part to the negative impact of the war in Ukraine, we have experienced exacerbated increases in raw materials and increased costs for transportation, energy, and commodities. Although we have negotiated and continue to negotiate with our customers with respect to these additional costs, commercial negotiations with our customers may not be successful or may not offset all of the adverse impact of higher transportation, energy and commodity costs.”

Annual report 2024A · The company itself

“Direct material cost represents approximately 55% of the Company's net sales in 2024.”

Annual report 2024A · The company itself

“The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals.”

Annual report 2024A · The company itself

“We could experience disruption in our supply or delivery chain, which could cause one or more of our customers to halt or delay production We, as with other component manufactures in the automotive industry, ship our products to customer vehicle assembly facilities throughout the world on a “just-in-time” basis for our customers to maintain low inventory levels. Our suppliers (external suppliers as well as our own production sites) use a similar method in providing raw materials to us.”

Annual report 2024A · The company itself

“We could experience disruption in our supply or delivery chain, which could cause one or more of our customers to halt or delay production We, as with other component manufactures in the automotive industry, ship our products to customer vehicle assembly facilities throughout the world on a “just-in-time” basis for our customers to maintain low inventory levels. Our suppliers (external suppliers as well as our own production sites) use a similar method in providing raw materials to us.”

Annual report 2024A · The company itself

“Outside the U.S., the Company’s most significant currency is the Euro. The Company estimates that 27% of its consolidated net sales will be denominated in Euro or other European currencies during 2025, while 18% of its consolidated net sales are estimated to be denominated in U.S. dollars. The Company estimates that a 1% increase in the value of the U.S. dollar versus European currencies will decrease reported U.S. dollar annual net sales in 2025 by $28 million, while operating income for 2025 will decline by $3 million, assuming reported corporate average margin.”

Annual report 2024A · The company itself

“Inflation is currently high world-wide and may continue for some time, which could lead to fluctuations in interest rates.”

Annual report 2024A · The company itself

“Our access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors. Our ability to obtain unsecured funding at a reasonable cost is dependent on our credit ratings or our perceived creditworthiness.”

Annual report 2024A · The company itself

“Our pension obligations are dependent on several factors, including factors outside our control such as changes in interest rates, the market performance of the diversified investments underlying the pension plans, actuarial data and adjustments and an increase in the minimum funding requirements or other regulatory changes governing the plans. Adverse equity market conditions and volatility in the credit market may have an unfavorable impact on the value of our pension assets and our future estimated pension liabilities.”

Annual report 2024A · The company itself

“Inflation is also currently high world-wide and may continue for an unforeseen time, which could lead to fluctuations in interest rates.”

Annual report 2024A · The company itself

“Financing risk refers to the risk that it will be difficult and/or expensive to finance new or existing debt to meet the financing needs of the Autoliv Group. The management of the financing risk ensures access to funding in a cost-efficient way by diversification of funding sources and debt maturities.”

Annual report 2024A · The company itself

“A global development towards increased safety standards with stricter regulations and increasingly stringent rating frameworks is a strong driver of safety content in vehicles. Other drivers are the premium vehicle trend and the increasing focus on safety in medium- and low-income markets.”

Annual report 2024A · The company itself

“Around 60 percent of the Company’s workforce outside the United States is covered by a collective bargaining agreement.”

Annual report 2024A · The company itself

“We are subject to existing stringent requirements under the National Traffic and Motor Vehicle Safety Act of 1966 (the “Vehicle Safety Act”), including a duty to report, subject to strict timing requirements, safety defects with our products. The Vehicle Safety Act imposes potentially significant civil penalties for violations including the failure to comply with such reporting actions.”

Annual report 2024A · The company itself

“We have been, and likely will continue to be, subject to cyberattacks. Although we seek to deploy comprehensive security measures to prevent, detect, address and mitigate these threats, there has been an increased level of activity, and an associated level of sophistication, in cyber-attacks against large multinational companies.”

Annual report 2024A · The company itself

“Third parties that maintain certain of our confidential and proprietary information could experience a cybersecurity incident We rely on third parties to provide or maintain some of our IT systems, data centers and related services and do not exercise direct control over these systems. Despite the implementation of security measures at third party locations, these IT systems, data centers and cloud services are also vulnerable to security breaches or other disruptions.”

Annual report 2024A · The company itself

“Furthermore, our customers are also increasingly requiring us to track sustainable sources of certain raw materials, which also requires additional diligence efforts and there can be no assurance that we will be able to obtain these materials in a cost-efficient and sustainable manner.”

Annual report 2024A · The company itself

“If our sustainability practices do not meet investor or other stakeholder expectations and standards, which continue to evolve, our reputation, our ability to attract or retain employees, and our attractiveness as an investment or business partner could be negatively affected. Similarly, our failure or perceived failure to pursue or fulfill our sustainability-focused goals, targets, ambitions and objectives, to comply with ethical, environmental, or other standards, regulations, or expectations, or to satisfy various reporting standards with respect to these matters, within the timelines we announce, or at all, could adversely affect our business or reputation, as well as expose us to government enforcement actions and private litigation.”

Annual report 2024A · The company itself

“Additionally, we may experience disruptions if there are newly imposed trade restrictions or delays in customs processing, including if we are unable to obtain government authorization to export or import certain materials, including materials that may be viewed as dangerous such as the propellant used for our inflators.”

Annual report 2024A · The company itself

“Our foreign operations may subject us to risks relating to laws governing international relations Due to our global operations, we are subject to many laws governing international relations (including, but not limited to, the Foreign Corrupt Practices Act, and other anti-bribery regulations in foreign jurisdictions where we do business), which prohibit improper payments to government officials and restrict where and how we can do business, what information or products we can supply to certain countries and what information we can provide to authorities in governmental authorities. We also export components and products that are subject to certain trade-related U.S. laws, including the U.S. Export Administration Act and various economic sanctions programs administered by the U.S. Treasury’s Office of Foreign Assets Control.”

Annual report 2024A · The company itself

“The component factories manufacture inflators, propellant, initiators, textile cushions, webbing, pressed steel parts, springs, and over molded steel parts used in seatbelt and airbag assembly and steering wheels. The assembly factories source components from a number of parties, including Autoliv’s own component factories, and assemble complete restraint systems for “just-in-time” delivery to customers.”

Annual report 2024A · The company itself

“The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals.”

Annual report 2024A · The company itself

“Global megatrends such as climate change, circular economy and urbanization are shaping the automotive industry and future transport systems. These megatrends influence policy and regulations, technological developments, our key stakeholders’ priorities and create both opportunities and risks for Autoliv.”

Annual report 2024A · The company itself

“In addition to vehicle production, the Company’s market is driven by the safety content per vehicle, which is affected by new regulations and new vehicle rating programs, in addition to consumer demand for new safety technologies. The most important regulations are the seatbelt installation laws that exist in all vehicle-producing countries.”

Annual report 2024A · The company itself

“Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy producing countries and growth markets), changes in interest rate levels and credit availability, and other factors.”

Annual report 2024A · The company itself

“Global integration may result in additional risks Because of our efforts to manage costs by integrating our operations globally, we face the additional risk that, should any of the other risks discussed herein materialize, the negative effects could be more pronounced. For example, while supply delays of a component have typically only affected a few customer vehicle models, such a delay could now affect several vehicle models of several customers in several geographic areas.”

Annual report 2024A · The company itself

“RISKS RELATED TO OUR BUSINESS We may incur material losses and costs as a result of product liability, warranty, and recall claims that may be brought against us or our customers We face risks related to product liability claims, warranty claims, and recalls in the event that any of our products actually or allegedly are defective, fail to perform as expected, or the use of our products results, or is alleged to result, in bodily injury and/or property damage.”

Annual report 2024A · The company itself

“Third parties that maintain certain of our confidential and proprietary information could experience a cybersecurity incident We rely on third parties to provide or maintain some of our IT systems, data centers and related services and do not exercise direct control over these systems. Despite the implementation of security measures at third party locations, these IT systems, data centers and cloud services are also vulnerable to security breaches or other disruptions.”

Annual report 2024A · The company itself

“Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy producing countries and growth markets), changes in interest rate levels and credit availability, and other factors.”

Annual report 2024A · The company itself

“Our business is directly related to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy producing countries and growth markets), changes in interest rate levels and credit availability, and other factors.”

Annual report 2024A · The company itself

“Disruptions in our supply chain may result for many reasons, including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes, mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions issues (including epidemics and pandemics), natural disasters, war, political upheaval, as well as logistical complications due to labor disruptions, weather or natural disasters, acts of terrorism or violence (such as the disruptions in shipping in the Red Sea), mechanical failures, and legislation or regulation regarding the transport of hazardous goods.”

Annual report 2024A · The company itself

“Governmental restrictions may impact our business adversely Some of our customers are (or may be) owned by a governmental entity, receive various forms of governmental aid or support, or are subject to governmental influence in other forms, which may impact us as a supplier to these customers. As a result, they may be required to partner with local entities or procure components from local suppliers to achieve a specific local content or be subject to other restrictions regarding localized content or ownership.”

Annual report 2024A · The company itself

“Additionally, various government regulators require companies that manufacture products containing certain minerals and their derivatives that are known as “conflict minerals”, originating from the Democratic Republic of Congo or adjoining countries to perform due diligence and report the source of such materials. There are significant resources associated with complying with these requirements, including diligence efforts to determine the sources of conflict minerals used in our products and potential changes to our processes or supplies as a consequence of such diligence efforts.”

Annual report 2024A · The company itself

“Global megatrends such as climate change, circular economy and urbanization are shaping the automotive industry and future transport systems. These megatrends influence policy and regulations, technological developments, our key stakeholders’ priorities and create both opportunities and risks for Autoliv.”

Annual report 2024A · The company itself

“The LVP decline in North America LVP was mainly driven by vehicle inventory corrections.”

Annual report 2024A · The company itself

“U.S.-based brands (including Chrysler and new EV OEMs) accounted for 21%.The fastest growing customer in 2024 was Geely followed by Mercedes and Renault.”

Annual report 2024A · The company itself

“The U.S. based OEMs (including Chrysler and new EV manufactures) accounted for 21% of the Company's global sales in 2024.”

Annual report 2024A · The company itself

“Rest of World 3% Rest of Europe 7% United Kingdom 10% Sweden 33% United States 47% and operational efficiencies.”

Annual report 2024A · The company itself

“NET SALES BY REGION (Dollars in millions) 2024 2023 2022 China $ 2,010 $ 2,105 $ 1,883 Asia, excl. China 2,010 1,968 1,638 Americas 3,424 3,526 2,967 Europe 2,946 2,877 2,355 Total $ 10,390 $ 10,475 $ 8,842 The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.”

Annual report 2024A · The company itself

“Furthermore, some of our suppliers may not be able to sufficiently manage the currency commodity cost volatility and/or sharply changing volumes while still performing as we expect.”

Annual report 2024A · The company itself