Financial Report

     January - March 2025

        Stockholm, Sweden, April 16, 2025
        (NYSE: ALV and SSE: ALIV.sdb)

Financial highlights Q1 2025

$2,578 million net sales

1.4% net sales decrease

2.2% organic sales growth*

9.9% operating margin

9.9% adjusted operating margin*

$2.14 diluted EPS, 41% increase

$2.15 adjusted diluted EPS*, 37% increase

Full year 2025 guidance

Around 2% organic sales growth

Around 3% negative FX effect on net sales

Around 10-10.5% adjusted operating margin

Around $1.2 billion operating cash flow

*For non-U.S. GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q1 2025

Q1 2024

Change

Net sales

$2,578

$2,615

(1.4)%

Operating income

254

194

31%

Adjusted operating income1)

255

199

28%

Operating margin

9.9%

7.4%

2.4pp

Adjusted operating margin1)

9.9%

7.6%

2.3pp

Earnings per share - diluted

2.14

1.52

41%

Adjusted earnings per share - diluted1)

2.15

1.58

37%

Operating cash flow

77

122

(37)%

Return on capital employed2)

25.6%

19.7%

5.9pp

Adjusted return on capital employed1,2)

25.6%

20.2%

5.4pp

1) Excluding effects from capacity alignments and antitrust related matters. Non-U.S. GAAP measure, see reconciliation table.
2) Annualized operating income and income from equity method investments, relative to average capital employed.

Comments from Mikael Bratt, President & CEO

I am pleased that we delivered good sales and profitability in the first quarter. Thanks to our adaptability and resilience, driven by our diverse product portfolio and strong customer relationships, we successfully navigated through the first month of North American tariffs. It is encouraging that we, based on LVP data from March, outperformed global

After the slow end to 2024, OEM sourcing of safety products for future car models picked up in the first quarter, despite the geopolitical uncertainty.

Our navigation of the new tariff environment in the first quarter gives us confidence that it is possible to continue on that course when facing increasing or changing tariffs, although there is significant uncertainty. We continue to closely monitor and evaluate the situation, focusing on being adaptive and agile, and we consider our regionalized footprint to be a valuable source for flexibility in a challenging geopolitical environment.

The current geopolitical and business environment uncertainties makes it difficult to predict 2025. However, based on the strong first quarter performance and encouraging near term call-off indications, we reiterate our 2025 guidance of an organic sales growth of around 2% and an adjusted operating margin of around 10-10.5%.

Our strong balance sheet and cash conversion set a solid foundation for our commitment to high shareholder returns. I am looking forward to our Capital Markets Day, on June 4, 2025.

LVP despite continued significant headwinds from LVP mix shifts, particularly in China. Based on a record high number of new launches we look forward to a significantly improved sales performance in China in 2025.

Our strong profitability improvement was a result of well executed operational and commercial efforts. Our structural cost reduction program continued to generate indirect work force reductions, and direct headcount was also reduced significantly although sales grew organically. Results were also supported by reaching Q1 customer compensation agreements for increased costs related to inflation and tariffs. Our continued repurchase of shares also supported a record first quarter EPS.

Full year 2025 Guidance

Organic sales growth

Around 2%

Adjusted operating margin1)

Around 10-10.5%

Operating cash flow2)

Around $1.2 billion

Capex, net, % of sales

Around 5%

1) Excluding effects from capacity alignments, antitrust related matters and other discrete items. 2) Excluding unusual items.

Full year 2025 Assumptions

LVP growth

Around 0.5% negative

FX impact on net sales

Around 3% negative

Tax rate3)

Around 28%

3) Excluding unusual tax items.

Net Sales Development by region

Operating and adjusted* operating income and margins

Capex, net and D&A

Operating cash flow

Return on Capital Employed

Cash Conversion*

Adj. operating income and margin*: Operating income adjusted for capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. Capacity alignments include non-recurring costs related to our structural efficiency and business cycle management programs.

Capex, net: Capital Expenditure, net, defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment.

D&A: Depreciation and Amortization.

Cash conversion*: Free operating cash flow* in relation to net income. Free operating cash flow defined as operating cash flow less capital expenditure, net.

Consolidated sales

First quarter

Reported change

Currency

Organic

(Dollars in millions)

2025

2024

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,752

$1,781

(1.6)%

(3.3)%

1.7%

Seatbelt Products and Other2)

826

834

(1.0)%

(4.2)%

3.2%

Total

$2,578

$2,615

(1.4)%

(3.6)%

2.2%

Americas

$851

$893

(4.7)%

(6.0)%

1.3%

Europe

764

770

(0.7)%

(2.6)%

1.9%

China

447

460

(2.8)%

(1.2)%

(1.6)%

Asia excl. China

515

491

4.8%

(2.8)%

7.7%

Total

$2,578

$2,615

(1.4)%

(3.6)%

2.2%

1) Effects from currency translations. 2) Including Corporate sales.

Sales by product – Airbags, Steering Wheels and Other

Sales grew organically* by 1.7% in the quarter. The largest contributor to the increase was side airbags and steering wheels, followed by inflatable curtains and center airbags. This was partly offset by declines for knee airbags, driver airbags and passenger airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 3.2% in the quarter. Sales increased organically in Asia excluding China and in the Americas while it declined in China and Europe.

Sales by region

Our global organic sales* increased by 2.2% compared to the global LVP decrease of 0.4% (according to S&P Global, March 2025). The outperformance was mainly driven by product launches and pricing. We estimate that the regional and model LVP mix contributed to about 3pp underperformance. This was particularly accentuated in China where we estimate that changes in LVP model mix contributed around 8pp to our underperformance in China. Our organic sales growth outperformed LVP growth by 11pp in Europe, by 6.1pp in Americas and by 5.4pp in Asia excluding China, while we underperformed by 9.2pp in China.

LVP growth in China was heavily tilted to domestic OEMs with typically lower safety content. LVP for global OEMs declined by 9% while it increased by 19% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 19% in the quarter. We expect that our strong order intake with domestic OEMs will lead to a record high number of new launches and significantly improve Autoliv's sales performance in China in 2025.

Q1 2025 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

1.3%

1.9%

(1.6)%

7.7%

2.2%

Main growth drivers

Toyota, Ford, Honda

Renault, Mercedes, Ford

Geely, BYD, Nio

Toyota, Subaru, Suzuki

Toyota, Ford, VW

Main decline drivers

EV OEM, Mercedes, Hyundai

Volvo, EV OEM, Hyundai

EV OEM, Volvo, Lixiang

Honda, Mitsubishi, Renault

EV OEM, Volvo, Lixiang

Q1 2025

Americas

Europe

China

Asia excl. China

Global

LVP (Mar 2025)

(4.8)%

(9.0)%

7.6 %

2.3%

(0.4)%

LVP (Jan 2025)

(4.5)%

(9.5)%

3.9%

1.3%

(1.8)%

Honda Passport

Ford Expedition

Hyundai Palisade

Dacia Bigster

Renault 5 E-TECH

Mercedes CLA

Audi A6 Avant

Kia Tasman

Citroen C3

Driver/Passenger Airbags

Seatbelts

Side Airbags

Head/Inflatable Curtain Airbags

Steering Wheel

Knee Airbag

Front Center Airbag

Bag-in-Belt

Pyrotechnical Safety Switch

Pedestrian Airbag

Hood Lifter

Available as EV/PHEV

Condensed Income Statement

First quarter

(Dollars in millions, except per share data)

2025

2024

Change

Net sales

$2,578

$2,615

(1.4)%

Cost of sales

(2,100)

(2,172)

(3.3)%

Gross profit

478

443

8.1%

S,G&A

(145)

(132)

9.5%

R,D&E, net

(95)

(113)

(16)%

Other income (expense), net

15

(4)

n/a

Operating income

254

194

31%

Adjusted operating income1)

255

199

28%

Financial and non-operating items, net

(22)

(20)

8.2%

Income before taxes

233

174

34%

Income taxes

(65)

(47)

39%

Net income

$167

$127

32%

Earnings per share - diluted2)

$2.14

$1.52

41%

Adjusted earnings per share - diluted1,2)

$2.15

$1.58

37%

Gross margin

18.6%

16.9%

1.6pp

S,G&A, in relation to sales

(5.6)%

(5.1)%

(0.6)pp

R,D&E, net in relation to sales

(3.7)%

(4.3)%

0.6pp

Operating margin

9.9%

7.4%

2.4pp

Adjusted operating margin1)

9.9%

7.6%

2.3pp

Tax Rate

28.0%

27.0%

1.0pp

Other data

No. of shares at period-end in millions2)

77.3

81.4

(5.0)%

Weighted average no. of shares in millions, basic2)

77.6

82.3

(5.7)%

Weighted average no. of shares in millions, diluted2)

77.9

83.0

(6.2)%

1) Non-U.S. GAAP measure, excluding effects from capacity alignments and antitrust related matters. See reconciliation table. 2) Net of treasury shares.

First quarter 2025 development

Gross profit increased by $36 million, and the gross margin increased by 1.6pp compared to the prior year. The main drivers behind the improvement were the structural cost reduction program combined with the improved customer call-off accuracy, which supported an improved operational efficiency with lower costs for labor, premium freight and waste and scrap, as well as positive effects from the organic sales growth. The main offsetting factor to the improvement were negative FX translation effects.

S,G&A costs increased by $13 million compared to the prior year, mainly due to $8 million in increased IT costs and minor cost increases for other items, including personnel costs and legal fees, partly offset by $5 million from positive FX translation effects. S,G&A costs in relation to sales increased from 5.1% to 5.6%.

R,D&E, net costs decreased by $18 million compared to the prior year, with $8 million of the improvement coming from higher engineering income. The decrease was also supported to a smaller extent from several items, mainly $5 million from positive FX translation effects and $3 million in lower personnel costs. R,D&E, net, in relation to sales decreased from 4.3% to 3.7%.

Other income (expense), net was positive $15 million, compared to negative $4 million in the same period last year. Almost all of the Other income in the quarter was from the recycled accumulated currency translation differences related to the divestment of our idled operations in Russia.

Operating income increased by $60 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and higher Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Adjusted operating income* increased by $56 million compared to the prior year, due to the higher gross profit, lower costs for R,D&E, net, and higher Other income (expense), partly offset by higher costs for S,G&A, as outlined above.

Financial and non-operating items, net, was negative $22 million compared to negative $20 million a year earlier. The increase was mainly due to lower interest income following lower cash holdings.

Income before taxes increased by $59 million compared to the prior year, mainly due to the higher operating income.

Tax rate was 28.0% compared to 27.0% in the prior year. The lower tax rate in 2024 was mainly due to discrete tax benefits for the release of tax reserves recorded in the first quarter of 2024. Discrete tax items, net, did not have a material impact to the tax rate in the first quarter of 2025 vs. a decrease of 2.5pp in the corresponding quarter last year.

Earnings per share, diluted increased by $0.62 compared to the prior year. The main drivers were $0.52 from higher operating income and $0.13 from lower number of outstanding shares, diluted.

Selected Cash Flow items

First quarter

(Dollars in millions)

2025

2024

Change

Net income

$167

$127

32%

Depreciation and amortization

95

96

(0.7)%

Other non-cash adjustments, net

(6)

14

n/a

Changes in operating working capital

(179)

(114)

57%

Operating cash flow

77

122

(37)%

Capital expenditure, net1)

(93)

(140)

(33)%

Free operating cash flow2)

$(16)

$(18)

(11)%

Cash conversion3)

n/a

n/a

n/a

Shareholder returns

- Dividends paid

(54)

(56)

(2.3)%

- Share repurchases

(50)

(160)

(69)%

Cash dividend paid per share

$(0.70)

$(0.68)

2.8%

Capital expenditures, net in relation to sales

3.6%

5.4%

(1.7)pp

1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash flow less Capital expenditure, net. Non-U.S. GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-U.S. GAAP measure. See reconciliation table.

Selected Balance Sheet items

First quarter

(Dollars in millions)

2025

2024

Change

Trade working capital1)

$1,279

$1,336

(4.2)%

Trade working capital in relation to sales2)

12.4%

12.8%

(0.4)pp

- Receivables outstanding in relation to sales3)

21.4%

21.0%

0.4pp

- Inventory outstanding in relation to sales4)

8.9%

9.5%

(0.7)pp

- Payables outstanding in relation to sales5)

17.8%

17.7%

0.1pp

Cash & cash equivalents

322

569

(43)%

Gross Debt6)

2,105

2,140

(1.6)%

Net Debt7)

1,787

1,562

14%

Capital employed8)

4,149

4,003

3.6%

Return on capital employed9)

25.6%

19.7%

5.9pp

Total equity

2,361

2,442

(3.3)%

Return on total equity10)

28.8%

20.2%

8.6pp

Leverage ratio11)

1.3

1.3

0.1pp

1) Outstanding receivables and outstanding inventory less outstanding payables. Non-U.S. GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. Non-U.S. GAAP measure, see reconciliation table. Annualized quarterly sales is calculated as the quarterly sales amount multiplied by four. 3) Outstanding receivables relative to annualized quarterly sales. 4) Outstanding inventory relative to annualized quarterly sales. 5) Outstanding payables relative to annualized quarterly sales. 6) Short- and long-term interest-bearing debt. 7) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. Non-U.S. GAAP measure. See reconciliation table. 8) Total equity and net debt. 9) Annualized operating income and income from equity method investments, relative to average capital employed. See definitions of "Annualized operating income" in footnote to the reconciliation tables below. 10) Annualized net income relative to average total equity. See definitions of "Annualized net income" in footnote to the reconciliation tables below. 11) Net debt adjusted for pension liabilities in relation to EBITDA. Non-U.S. GAAP measure. See reconciliation table.

First quarter 2025 development

Changes in operating working capital impacted operating cash flow by $179 million negative compared to an impact of $114 million negative in the prior year. The working capital increase in the quarter of $179 million was mainly a result of $166 million in increased receivables following the strong sales towards the end of the quarter, $46 million from lower accrued expenses and $24 million increase in other current assets. This was to some extent offset by $25 million in positive effects from accounts payables and $22 million in lower inventories. These changes are within normal variations related to timings, especially the high level of sales towards the end of the quarter.

Operating cash flow decreased by $45 million to $77 million compared to the prior year, mainly because the increase in operating working capital was larger than the increase in net income, as outlined above.

Capital expenditure, net decreased by $47 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.6% versus 5.4% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization in Europe and Americas and less capacity expansion, especially in Asia.

Free operating cash flow* was negative $16 million compared to negative $18 million in the prior year. The decrease was due to the lower operating cash flow partly offset by the lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was n/a in the quarter as free operating cash flow was negative.

Trade working capital* decreased by $56 million compared to the prior year, where the main drivers were $11 million in higher accounts receivables, $17 million in lower accounts payable and $84 million in lower inventories. In relation to sales, trade working capital decreased from 12.8% to 12.4%. The improvement in trade working capital is a result of our multi-year working capital improvement program and an improvement in customer call-off accuracy enabling a more efficient inventory management.

Net debt* was $1,787 million as of March 31, 2025, which was $225 million higher than a year earlier, mainly because in the last twelve months, dividends paid and share repurchases were higher than free operating cash flow.

Total equity as of March 31, 2025, decreased by $80 million compared to March 31, 2024. This was mainly due to $218 million in dividend payments, $447 million in share repurchases, including taxes, and $104 million negative currency translation effects, partly offset by positive net income of $688 million.

Leverage ratio*: On March 31, 2025, the Company had a leverage ratio of 1.3x compared to 1.3x on March 31, 2024, following that the 12 months trailing adjusted EBITDA* increased by around $80 million while net debt* per the policy increased by around $241 million.

Mar 31

Dec 31

Mar 31

2025

2024

2024

Headcount

65,900

65,200

70,100

Whereof: Direct headcount in manufacturing

48,800

48,000

52,500

                 Indirect headcount

17,100

17,200

17,600

Temporary personnel

10%

9%

10%

As of March 31, 2025, total headcount (Full Time Equivalent) decreased by around 4,200, or 6.0%, compared to a year earlier, despite that organic sales* increased by 2.2%. The indirect workforce decreased by around 500, or 2.9%, mainly reflecting our structural reduction initiatives. The direct workforce decreased by approximately 3,700, or 7.0%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.

Compared to December 31, 2024, total headcount (Full Time Equivalent) increased by around 700, or 1.1%. Indirect headcount decreased by around 100, or 0.7%, while direct headcount increased by approximately 900, or 1.8%.

Next Report

Autoliv intends to publish the quarterly earnings report for the second quarter of 2025 on Friday, July 18, 2025.

Footnotes

*Non-U.S. GAAP measure, see enclosed reconciliation tables.

Inquiries: Investors and Analysts

Anders Trapp

Vice President Investor Relations

Tel +46 (0)8 5872 0671

Henrik Kaar

Director Investor Relations

Tel +46 (0)8 5872 0614

Inquiries: Media

Gabriella Etemad

Senior Vice President Communications

Tel +46 (0)70 612 6424

Autoliv, Inc. is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP of Investor Relations set out above, at 12.00 CET on April 16, 2025.

Definitions and SEC Filings

Please refer to www.autoliv.com or to our Annual Report for definitions of terms used in this report. Autoliv’s annual report to stockholders, annual report on Form 10-K, quarterly reports on Form 10-Q, proxy statements, management certifications, press releases, current reports on Form 8-K and other documents filed with the SEC can be obtained free of charge from Autoliv at the Company’s address. These documents are also available at the SEC’s website www.sec.gov and at Autoliv’s corporate website www.autoliv.com.

This report includes content supplied by S&P Global; Copyright © Light Vehicle Production Forecast, January and March 2025. All rights reserved. S&P Global is a global supplier of independent industry information. The permission to use S&P Global copyrighted reports, data and information does not constitute an endorsement or approval by S&P Global of the manner, format, context, content, conclusion, opinion or viewpoint in which S&P Global reports, data and information or its derivations are used or referenced herein.

This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Autoliv, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations, various assumptions and/or data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “may”, “likely”, “might”, “would”, “should”, “could”, or the negative of these terms and other comparable terminology, although not all forward-looking statements contain such words. Because these forward-looking statements involve risks and uncertainties, the outcome could differ materially from those set out in the forward-looking statements for a variety of reasons, including without limitation, general economic conditions, including inflation; changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier; global supply chain disruptions, including port, transportation and distribution delays or interruptions; supply chain disruptions and component shortages specific to the automotive industry or the Company; geopolitical instability, including the ongoing war between Russia and Ukraine and the hostilities in the Middle East; changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring, cost reduction and efficiency initiatives and the market reaction thereto; loss of business from increased competition; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products;

customer losses; changes in regulatory conditions; customer bankruptcies, consolidations, or restructuring or divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing and other negotiations with customers; successful integration of acquisitions and operations of joint ventures; successful implementation of strategic partnerships and collaborations; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation, civil judgments or financial penalties and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding needs for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims and the availability of insurance with respect to such matters; our ability to protect our intellectual property rights; negative impacts of antitrust investigations or other governmental investigations and associated litigation relating to the conduct of our business; tax assessments by governmental authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting our business; including changes in trade policy and tariffs, our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships with customers and suppliers; the conditions necessary to hit our medium term financial targets; and other risks and uncertainties identified under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q and any amendments thereto. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

First quarter

Latest 12

Full Year

(Dollars in millions, except per share data, unaudited)

2025

2024

months

2024

Airbags, Steering Wheels and Other1)

$1,752

$1,781

$6,994

$7,023

Seatbelt products and Other1)

826

834

3,359

3,367

Total net sales

2,578

2,615

10,353

10,390

Cost of sales

(2,100)

(2,172)

(8,391)

(8,463)

Gross profit

478

443

1,963

1,927

Selling, general & administrative expenses

(145)

(132)

(543)

(530)

Research, development & engineering expenses, net

(95)

(113)

(380)

(398)

Other income (expense), net

15

(4)

0

(19)

Operating income

254

194

1,040

979

Income from equity method investments

1

2

6

7

Interest income

2

5

10

13

Interest expense

(25)

(26)

(107)

(107)

Other non-operating items, net

0

(1)

(16)

(16)

Income before income taxes

233

174

934

875

Income taxes

(65)

(47)

(246)

(227)

Net income

167

127

688

648

Less: Net income attributable to non-controlling interest

0

0

2

1

Net income attributable to controlling interest

$167

$126

$687

$646

Earnings per share - diluted

$2.14

$1.52

$8.67

$8.04

1) Including Corporate sales.

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions, unaudited)

2025

2024

2024

2024

2024

Assets

Cash & cash equivalents

$322

$330

$415

$408

$569

Receivables, net

2,205

1,993

2,192

2,090

2,194

Inventories, net

913

921

997

936

997

Prepaid expenses

184

167

172

193

180

Other current assets

75

72

90

76

71

Total current assets

3,699

3,483

3,865

3,703

4,011

Property, plant & equipment, net

2,286

2,239

2,317

2,197

2,191

Operating leases right-of-use assets

168

158

173

167

177

Goodwill and intangible assets, net

1,380

1,375

1,386

1,379

1,381

Investments and other non-current assets

581

548

565

564

564

Total assets

8,114

7,804

8,306

8,010

8,324

Liabilities and equity

Short-term debt

540

387

624

455

310

Accounts payable

1,839

1,799

1,881

1,858

1,855

Accrued expenses

1,053

1,056

1,189

1,120

1,129

Operating lease liabilities - current

42

41

44

41

41

Other current liabilities

327

351

297

312

323

Total current liabilities

3,800

3,633

4,034

3,785

3,658

Long-term debt

1,565

1,522

1,586

1,540

1,830

Pension liability

163

153

147

140

149

Operating lease liabilities - non-current

120

118

130

127

134

Other non-current liabilities

103

92

110

106

111

Total non-current liabilities

1,952

1,885

1,974

1,913

2,224

Total parent shareholders’ equity

2,351

2,276

2,288

2,298

2,428

Non-controlling interest

10

10

10

13

13

Total equity

2,361

2,285

2,298

2,311

2,442

Total liabilities and equity

$8,114

$7,804

$8,306

$8,010

$8,324

First quarter

Latest 12

Full Year

(Dollars in millions, unaudited)

2025

2024

months

2024

Net income

$167

$127

$688

$648

Depreciation and amortization

95

96

386

387

Gain on divestiture of property

(6)

-

(10)

(4)

Other non-cash adjustments, net

(1)

14

(39)

(24)

Net change in operating working capital:

   Receivables

(166)

(41)

(79)

47

   Other current assets

(24)

34

9

67

   Inventories

22

(8)

57

28

   Accounts payable

25

(95)

38

(83)

   Accrued expenses

(46)

22

(80)

(12)

   Income taxes

11

(26)

43

6

Net cash provided by operating activities

77

122

1,015

1,059

Expenditures for property, plant and equipment

(102)

(140)

(541)

(579)

Proceeds from sale of property, plant and equipment

8

0

25

17

Net cash used in investing activities

(93)

(140)

(516)

(563)

Net increase (decrease) in short term debt

123

(227)

224

(126)

Decrease in long-term debt

-

-

(306)

(306)

Increase in long-term debt

39

534

31

526

Dividends paid

(54)

(56)

(217)

(219)

Share repurchases

(50)

(160)

(442)

(552)

Common stock options exercised

0

0

1

1

Dividend paid to non-controlling interests

-

-

(5)

(5)

Net cash provided by (used in) financing activities

57

92

(715)

(680)

Effect of exchange rate changes on cash

(49)

(3)

(30)

16

(Decrease) increase in cash and cash equivalents

(8)

71

(247)

(168)

Cash and cash equivalents at period-start

330

498

569

498

Cash and cash equivalents at period-end

$322

$569

$322

$330

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2025

2024

2024

2024

2024

Total current assets

$3,699

$3,483

$3,865

$3,703

$4,011

Total current liabilities

(3,800)

(3,633)

(4,034)

(3,785)

(3,658)

Working capital (U.S. GAAP)

(101)

(150)

(169)

(83)

353

Less: Cash and cash equivalents

(322)

(330)

(415)

(408)

(569)

          Prepaid expenses

(184)

(167)

(172)

(193)

(180)

          Other current assets

(75)

(72)

(90)

(76)

(71)

Less: Short-term debt

540

387

624

455

310

          Accrued expenses

1,053

1,056

1,189

1,120

1,129

          Operating lease liabilities - current

42

41

44

41

41

          Other current liabilities

327

351

297

312

323

Trade working capital (non-U.S. GAAP)

$1,279

$1,115

$1,307

$1,169

$1,336

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2025

2024

2024

2024

2024

Receivables, net

$2,205

$1,993

$2,192

$2,090

$2,194

Inventories, net

913

921

997

936

997

Accounts payable

(1,839)

(1,799)

(1,881)

(1,858)

(1,855)

Trade working capital (non-U.S. GAAP)

$1,279

$1,115

$1,307

$1,169

$1,336

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Total current assets

$3,974

$3,714

$3,675

$4,269

Total current liabilities

(4,035)

(3,642)

(2,821)

(3,147)

Working capital (U.S. GAAP)

(61)

72

853

1,122

Less: Cash and cash equivalents

(498)

(594)

(969)

(1,178)

          Prepaid expenses

(173)

(160)

(164)

(164)

          Other current assets

(93)

(84)

(65)

(307)

Less: Short-term debt

538

711

346

302

          Accrued expenses

1,135

915

996

1,270

          Operating lease liabilities - current

39

39

38

37

          Other current liabilities

345

283

297

284

Trade working capital (non-U.S. GAAP)

$1,232

$1,183

$1,332

$1,366

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Receivables, net

$2,198

$1,907

$1,699

$1,822

Inventories, net

1,012

969

777

798

Accounts payable

(1,978)

(1,693)

(1,144)

(1,254)

Trade working capital (non-U.S. GAAP)

$1,232

$1,183

$1,332

$1,366

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

(Dollars in millions)

2025

2024

2024

2024

2024

Short-term debt

$540

$387

$624

$455

$310

Long-term debt

1,565

1,522

1,586

1,540

1,830

Total debt

2,105

1,909

2,210

1,996

2,140

Cash & cash equivalents

(322)

(330)

(415)

(408)

(569)

Debt issuance cost/Debt-related derivatives, net

4

(24)

(9)

(8)

(9)

Net debt

$1,787

$1,554

$1,787

$1,579

$1,562

Dec 31

Dec 31

Dec 31

Dec 31

(Dollars in millions)

2023

2022

2021

2020

Short-term debt

$538

$711

$346

$302

Long-term debt

1,324

1,054

1,662

2,110

Total debt

1,862

1,766

2,008

2,411

Cash & cash equivalents

(498)

(594)

(969)

(1,178)

Debt issuance cost/Debt-related derivatives, net

3

12

13

(19)

Net debt

$1,367

$1,184

$1,052

$1,214

Mar 31

Dec 31

Mar 31

(Dollars in millions)

2025

2024

2024

Net debt1)

$1,787

$1,554

$1,562

Pension liabilities

163

153

149

Net debt per the Policy

$1,950

$1,708

$1,711

Net income2)

$688

$648

$541

Income taxes2)

246

227

136

Interest expense, net2, 3)

97

95

83

Other non-operating items, net2)

16

16

1

Income from equity method investments2)

(6)

(7)

(5)

Depreciation and amortization of intangibles2)

386

387

381

Adjustments2), 4)

23

27

231

EBITDA per the Policy (Adjusted EBITDA)

$1,449

$1,394

$1,369

Leverage ratio

1.3

1.2

1.3

1) Short- and long-term debt less cash and cash equivalents and debt-related derivatives. 2) Latest 12 months. 3) Interest expense including cost for extinguishment of debt, if any, less interest income. 4) Capacity alignments and antitrust related matters. See Items Affecting Comparability below.

First quarter

Latest 12

Full Year

(Dollars in millions)

2025

2024

months

2024

Net income

$167

$127

$688

$648

Depreciation and amortization

95

96

386

387

Gain on divestiture of property

(6)

-

(10)

(4)

Other, net

(1)

14

(39)

(24)

Changes in operating working capital, net

(179)

(114)

(12)

53

Operating cash flow

77

122

1,015

1,059

Expenditures for property, plant and equipment

(102)

(140)

(541)

(579)

Proceeds from sale of property, plant and equipment

8

0

25

17

Capital expenditure, net1)

(93)

(140)

(516)

(563)

Free operating cash flow2)

$(16)

$(18)

$499

$497

Cash conversion3)

n/a

n/a

72%

77%

1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash flow less Capital expenditure, net. 3) Free operating cash flow relative to Net income.

Full year

Full year

Full year

Full year

(Dollars in millions)

2023

2022

2021

2020

Net income

$489

$425

$437

$188

Depreciation and amortization

378

363

394

371

Gain on divestiture of property

-

(80)

-

-

Other, net

(119)

(54)

(15)

13

Changes in operating working capital, net

235

58

(63)

277

Operating cash flow

982

713

754

849

Expenditures for property, plant and equipment

(572)

(585)

(458)

(344)

Proceeds from sale of property, plant and equipment

4

101

4

4

Capital expenditure, net1)

(569)

(485)

(454)

(340)

Free operating cash flow2)

$414

$228

$300

$509

Cash conversion3)

85%

54%

69%

270%

1) Defined as Expenditures for Property, Plant and Equipment less Proceeds from sale of Property, Plant and Equipment. 2) Operating cash flow less Capital expenditure, net. 3) Free operating cash flow relative to net income.

First quarter

(Dollars in millions)

2025

2024

Operating income (GAAP)

$254

$194

Non-GAAP adjustments:

   Less: Capacity alignments

2

2

   Less: Antitrust related items

(1)

3

Total non-GAAP adjustments to operating income

1

5

Adjusted Operating income (Non-GAAP)

$255

$199

(Dollars in millions)

2024

2023

2022

2021

2020

Operating income (GAAP)

$979

$690

$659

$675

$382

Non-GAAP adjustments:

   Less: Capacity alignments1)

19

218

(61)

8

99

   Less: The Andrews litigation settlement

-

8

-

-

-

   Less: Antitrust related items

8

4

-

-

1

Total non-GAAP adjustments to operating income

27

230

(61)

8

99

Adjusted Operating income (Non-GAAP)

$1,007

$920

$598

$683

$482

1) For 2022, including a gain on divestiture of property of $80 million.

First quarter

2025

2024

Operating margin (GAAP)

9.9%

7.4%

Non-GAAP adjustments:

   Less: Capacity alignments

0.1%

0.1%

   Less: Antitrust related items

(0.0)%

0.1%

Total non-GAAP adjustments to operating margin

0.0%

0.2%

Adjusted Operating margin (Non-GAAP)

9.9%

7.6%

2024

2023

2022

2021

2020

Operating margin (GAAP)

9.4%

6.6%

7.5%

8.2%

5.1%

Non-GAAP adjustments:

   Less: Capacity alignments

0.2%

2.1%

(0.7)%

0.1%

1.4%

   Less: The Andrews litigation settlement

-

0.1%

-

-

-

   Less: Antitrust related items

0.1%

0.0%

-

-

0.0%

Total non-GAAP adjustments to operating margin

0.3%

2.2%

(0.7)%

0.1%

1.4%

Adjusted Operating margin (Non-GAAP)

9.7%

8.8%

6.8%

8.3%

6.5%

First quarter

(Dollars in millions)

2025

2024

Income before income taxes (GAAP)

$233

$174

Non-GAAP adjustments:

   Less: Capacity alignments

2

2

   Less: Antitrust related items

(1)

3

Total non-GAAP adjustments to Income before income taxes

1

5

Adjusted Income before income taxes (Non-GAAP)

$233

$179

First quarter

(Dollars in millions)

2025

2024

Net income (GAAP)

$167

$127

Non-GAAP adjustments:

   Less: Capacity alignments

2

2

   Less: Antitrust related items

(1)

3

   Less: Tax on non-GAAP adjustments

(0)

(1)

Total non-GAAP adjustments to Net income

1

4

Adjusted Net income (Non-GAAP)

$168

$131

First quarter

(Dollars in millions)

2025

2024

Net income attributable to controlling interest (GAAP)

$167

$126

Non-GAAP adjustments:

   Less: Capacity alignments

2

2

   Less: Antitrust related items

(1)

3

   Less: Tax on non-GAAP adjustments

(0)

(1)

Total non-GAAP adjustments to Net income attributable to controlling interest

1

4

Adjusted Net income attributable to controlling interest (Non-GAAP)

$167

$131

First quarter

2025

2024

Earnings per share - diluted (GAAP)

$2.14

$1.52

Non-GAAP adjustments:

   Less: Capacity alignments

0.02

0.03

   Less: Antitrust related items

(0.02)

0.03

   Less: Tax on non-GAAP adjustments

(0.00)

(0.01)

Total non-GAAP adjustments to Earnings per share - diluted

0.01

0.05

Adjusted Earnings per share - diluted (Non-GAAP)

$2.15

$1.58

Weighted average number of shares outstanding - diluted

77.9

83.0

First quarter

2025

2024

Return on capital employed1) (GAAP)

25.6%

19.7%

Non-GAAP adjustments:

   Less: Capacity alignments

0.2%

0.2%

   Less: Antitrust related items

(0.1)%

0.3%

Total non-GAAP adjustments to Return on capital employed1)

0.1%

0.5%

Adjusted Return on capital employed1) (Non-GAAP)

25.6%

20.2%

Annualized adjustment2) on Return on capital employed1)

$3

$20

1) Annualized operating income and income from equity method investments, relative to average capital employed. The average capital employed amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.

2) The quarterly annualized adjustment to the operating income and income from equity method investments amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the operating income and income from equity method investments amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.

First quarter

2025

2024

Return on total equity1) (GAAP)

28.8%

20.2%

Non-GAAP adjustments:

   Less: Capacity alignments

0.3%

0.4%

   Less: Antitrust related items

(0.2)%

0.4%

   Less: Tax on non-GAAP adjustments

(0.0)%

(0.1)%

Total non-GAAP adjustments to Return on total equity1)

0.1%

0.7%

Adjusted Return on total equity1) (Non-GAAP)

28.9%

20.9%

Annualized adjustment2) on Return on total equity1)

$2

$18

1) Annualized net income relative to average total equity. The average total equity amount is calculated as an average of the opening balance amount and the closing balance amounts for each quarter included in the period.

2) The quarterly annualized adjustment to net income amount is calculated as the quarterly amount multiplied by four. The year-to-date annualized adjustment to the net income amount is calculated as the year-to-date amount divided by the quarterly period number (two, three or four) multiplied by four.

(Dollars in millions, except per share data, unaudited)

2024

2023

2022

2021

2020

Sales and Income

Net sales

$10,390

$10,475

$8,842

$8,230

$7,447

Airbags, Steering Wheels and Other1)

7,023

7,055

5,807

5,380

4,824

Seatbelt Products and Other1)

3,367

3,420

3,035