Creating a Trusted Leader in Mobility - autoliv.com...Radar 24 GHz NB Europe (SOP 2020) Asia (SOP 2019) North America (SOP 2018, 2019) Radar 77GHz Europe (SOP 2019) Asia (SOP 2019,

© 2018 Copyright Veoneer Inc. All Rights Reserved

May 31, 2018

Creating a Trusted Leader in Mobility

1


Safe Harbor Statement

This presentation 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 Veoneer, Inc. or its management believes or anticipates may occur in the future. All forward-looking statements, including without limitation, statements related to the completion and timing of the proposed spin-off; the future performance of the Electronics business on a stand-alone basis if the spin-off is completed; the expected strategic, operational and competitive benefits of the proposed spin-off; ; other targets regarding Veoneer’s performance as a stand-alone entity; management’s examination of historical operating trends and data, as well as estimates of future sales, operating margin, market trends, cash flow or other future operating performance or financial results, 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, difficulties and risks associated with Veoneer operating as an independent public company; disputes resulting from the spin-off; expected benefits of the spin-off taking longer than anticipated to realize; changes in light vehicle production; fluctuation in vehicle production schedules for which Veoneer is a supplier, changes in general industry and market conditions or regional growth or decline; costs and difficulties related to the implementation of acquisitions, joint ventures, strategic partnerships and other collaborations; loss of business from increased competition; higher raw material, fuel and energy costs; changes in consumer and customer preferences for end products; market acceptance of our new products; customer losses; changes in regulatory conditions; customer bankruptcies, consolidations, or restructurings; divestiture of customer brands; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; component shortages; market acceptance of our new products; continued uncertainty in pricing negotiations with customers; our ability to be awarded new business; product liability, warranty and recall claims and investigations and other litigation and customer reactions thereto; higher expenses for our pension and other postretirement benefits, including higher funding requirements for our pension plans; work stoppages or other labor issues; possible adverse results of pending or future litigation or infringement claims; our ability to protect our intellectual property rights; negative impacts of 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; political conditions; dependence on and relationships with customers and suppliers; 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 Registration Statement on Form 10 and any amendments thereto.

2


Agenda: Stockholm & New York, May 31/ June 4

VEONEER

12.30 Welcome Thomas Jönsson

12.35 Creating a Trusted Leader in Mobility Jan Carlson

13.05 Our Market and Sales Outlook Art Blanchford

13.20 Operations and Technology Johan Löfvenholm, Ola Boström, Eric Coelingh, Salah Hadi

14.10 Leg Stretch/ Coffee

14.25 Value Creation Mathias Hermansson

14.55 Q&A Jan, Johan, Mathias

15.25 CEO Conclusion & Good Bye!

3


Jan Carlson

Creating a Trusted Leader in Mobility

Chief Executive Officer

5

© 2018 Copyright Veoneer Inc. All Rights Reserved6

I Trust


Our PurposeCreating Trust in Mobility


~20 ~28 ~32 ~43

~29

~33

~49

2017E 2020E 2022E 2025E

Addressing a Market of Around $43 Bn in 2025

8

(1) Source: IHS May 2018.(2) TAM (Total Addressable Market); Active Safety Market includes Radar (Front/Side/Rear), Forward looking Cameras (Mono/Stereo/Night Vision), ADAS ECU and LiDAR (3) Includes additional Active Safety Market TAM from Driver Monitoring, Digital Mapping, Connectivity System – V2V

Upside TAM Market Opportunity ~$6 Bn in Active SafetyVeoneer TAM

Base TAM(2)

Additional TAM(3)

$ Bn


Substantial Growth in Active Safety Market

9

Active Safety Market Growth Driven by Increasing ADAS & AD PenetrationActive Safety TAM

(1) Source: IHS May 2018.(2) TAM (Total Addressable Market); Active Safety Market includes Radar (Front/Side/Rear), Forward looking Cameras (Mono/Stereo/Night Vision), ADAS ECU and LiDAR(3) Includes additional Active Safety Market TAM from Driver Monitoring, Digital Mapping, Connectivity System – V2V

~5 ~11 ~14 ~24

~12

~15

~30

2017E 2020E 2022E 2025E

Base TAM(2)

Additional TAM(3)

$ Bn


Take Rate Increases Drive Content per Vehicle in Active Safety

(1) Including Mono and Stereo Vision, assumes 1 camera per vehicle(2) Radar includes LRR: Long Range Radar; MRR: Multi Range Radar, 4 corner radar, assumes 5 radars per vehicle(3) Active Safety Market CPV includes Radar (Front/Side/Rear), Forward looking Cameras (Mono/Stereo/Night Vision), ADAS ECU and LiDAR(4) Includes additional Active Safety Market CPV from Driver Monitoring, Digital Mapping and Connectivity System – V2V

10

0

50

100

150

200

250

300

2017A 2020E 2022E 2025E

Active Safety CPV ~$225 to $275 in 2025Content per Vehicle

$

Active Safety CPV(3) Including Upside(4)

17%

51%

2017E 2022E

Forward Looking Cameras(1)

Take Rates

Radars(2)

Take Rates

6%

20%

2017E 2022E


Source: European Commission

May 17, 2018 Proposed EU Mandate

New Systems and Features Set to Become Mandatory in Europe by 2021

Active Safety Impact from EU Mandate

1) Advanced Emergency Braking

2) Alcohol interlock installation

3) Drowsiness and attention detection

4) Event (accident) data recorder

5) Emergency stop signal

6) Intelligent speed assist

7) Lane keep assist

8) Reversing camera or detection system


✓ Increased customer penetration

- Record order intake over LTM

- Level 3 System award – including Zenuity software

- Major vision contract with Asian based OEM

- Major vision contract with a major global OEM

- Driver monitoring system contract with a major global OEM

✓ Complementary acquisition in LiDAR

✓ Added 500 software engineers

Continued Execution Since Capital Markets Day – Sept. 2017

12


(1) $ value represents expected average annualized sales from respective years order intake, disclosure of orders will not be made regularly, based on when the orders were awarded

Tremendous Order Intake Increase Over Last Three Years

Selected Recent Business Wins

Active Safety

RCS

Brake Systems

Q4 2017 Large Vision order with Asian OEM

Q2 2018First Driver Monitoring system order with major Global OEM

Q1 2018First Level 3 System order in China with Radar, Camera, ECU, and Software

Q2 2017 Repeat Radar order with European OEM

Q2 2017Latest generation RCS major award with US OEM

Q4 2017 First LiDAR order, from major US OEM

Q4 2017 Second Brake award with major US OEM

Q2 2018First Mono-Vision order with major Global OEM

13

~250

~800

~900

~1,100

2015A 2016A 2017A LTM May-2018A

48% above prior twelve months

Veoneer Order Intake Evolution(1)

$ MM


✓ Achieved broad customer base for Active Safety products by CMD 2017

– On bid list for 14 OEM customers, technical qualification for 12 customers and 8 awarded business

– First awarded customers in RoadScape and Features (Software)

Active Safety Customer Base Strengthened...

14

Customer RADAR VISION ADAS ECU LiDAR RoadScape Driver MonitoringFeatures

(Software)

Total 14 10 6 13 8 3 9 5 2 9 2 0 1 1 1 5 2 0 4 2 1

Customer 1

Customer 2

Customer 3

Customer 4

Customer 5

Customer 6

Customer 11

Customer 14

Customer 15

Customer 18

Customer 19

Customer 21

Customer 23

Customer 9

Customer 10

Customer 12

Customer 13

Customer 17

Customer 22

Sept-2017 CMD

Bid List Technical Qualification Awarded Business

Active Safety

2013


✓ Accelerating rate of winning business

– On bid list for 19 OEM customers, technical qualification for 16 customers and 10 awarded business

– First awarded business in LiDAR, Driver Monitoring RoadScape and Software Features

– Secured orders in all product of our portfolio

...With Accelerating Pace of Customer WinsBroad & Diversified Customer Base TodayMay-2018

15

Total 17 13 8 16 9 5 11 8 3 11 4 1 3 1 2 10 5 1 6 4 2

Customer 1

Customer 2

Customer 3

Customer 4

Customer 5

Customer 6

Customer 11

Customer 14

Customer 15

Customer 18

Customer 19

Customer 21

Customer 23

Customer 9

Customer 10

Customer 12

Customer 13

Customer 17

Customer 22


(Software)


2013

Active Safety

Red = Customer Progression Since September 2017 CMD


Significant Ramp-up of Active Safety New Program Launchesas of Sept – 2017 CMDVision

▪ Europe (SOP 2018)


▪ Asia (SOP 2018)

ADAS ECU


Night Vision

▪ North America (SOP 2020)

Advanced ADAS Software


Radar 24 GHz NB


▪ Asia (SOP 2019)


Radar 77GHz


▪ Asia (SOP 2019)



Significant Ramp-up of Active Safety New Program Launchesas of May – 2018Vision

▪ Europe (SOP 2018, 2019)

▪ Asia (SOP 2018, 2019, 2020)

▪ Major Global OEM (SOP 2022)

ADAS ECU


▪ Asia (SOP 2020)

Night Vision

▪ North America (SOP 2018, 2020)

Advanced ADAS Software


▪ Asia (SOP 2020)

Radar 24 GHz NB


▪ Asia (SOP 2019)

▪ North America (SOP 2018, 2019)

Radar 77GHz


▪ Asia (SOP 2019, 2020)


RoadScapeTM


Driver Monitoring System


LiDAR



Successful Customer Base Expansion Across Segments

5

10

+6

+2

+3

7

19

2013A Today

Active SafetyNumber of Customers

Restraint Control Systems

20

+1

+3

17

24

2013A Today

Brake Systems

1

4+1

+2

+2

2

8

2013A Today(1) (1) (1)

(1) As of May 2018

Number of Customers Number of Customers

18



A Tech Company Delivering Automotive Grade

19

~175 ModelsWith Active Safety in 2017

~4 MMCamera Sensors Delivered

>30 MMRadar Sensors Delivered

~750 MMAirbag ECUs and Crash

Sensors Delivered


A Tech Company Committed to Creating Trust in Mobility

20

~500Patent Families

where more than half are related to applications

~100ADAS/AD test vehiclescollecting data and testing

daily software updates

>15Petabytesof data used

for Simulation


How to Meet the Challenges of Autonomous Driving?

21

✓ Functional customer solutions require Automotive Grade solutions

– Robust, reliable and scalable hardware and software

– Software must be designed towards Safety in all potential driving situations

– Hardware and Software must have designed in redundancy


O U R P U R P O S E I S

Creating trust in mobility

O U R I N S I G H T I S T H A T

In the complex new reality, our customers need an expert partner working in new ways

O U R C O R E S T R A T E G Y I S T O D E L I V E R

Innovative solutions you can trust

T H R O U G H O U R C O R E P I L L A R S

Flawless deliveryCustomer-centric collaboration

Human-centric innovation


Global Recalls in Safety Electronics(1)

Execution of our Core Pillars to Create Trust in Mobility

Flawless Delivery Customer-Centric Collaboration Human-Centric Innovation

Learning Intelligent Vehicle

23

Customer Focus

(1) Scope: Japan, Canada, US, China, South Korea, Australian, EU, UK, DE / AB, SB, Electronics for the period 2010-01-01 to 2017-06-31

Veoneer<1%

~32M recalled

since 2010


Uniquely Positioned to Lead Mobility Innovation

Automotive Grade Development & Scalable Manufacturing

Agility & Adaptability

Automotive Suppliers

Car Manufacturers

Feature Developers/Start-Ups

Technology Industry Entrants

Expert Partner for Mobility

2030 Mobility

24


Software Features as Additional Future Revenue Stream

TodayBundled Solutions

TomorrowSeparate Additional Software Sales

BundleHardware & Software

Software FeaturesHardware

25

✓ Feature based innovative solutions

– High growth in ADAS electronic controllers

– Growth potential in Safety Domain electronic controllers

✓ Expanded sensor suite

– High growth in sensor content per vehicle

– Number of sensors per vehicle increasing significantly

✓ Individual software component

– Exponential growth to manage increased automation of vehicles

– Bespoke solutions for OEMs/ geographies


Veoneer’s Software Model – Customized for the Customer

Vehicle OEMs

ADAS/ AD Software

✓ Addressing all OEMs

– Veoneer sells software and adapts to individual OEM customers

✓ Modular set of features at each level

– From single components to vehicle systems

– Enables customer brand differentiation

✓ Potential subscription model & cloud data

– Increasing customer retention

✓ Zenuity creates value as a company providing ADAS and AD software solutions

– To Veoneer and Volvo Cars

Customer

Application

26

System

Integration

Business Model Illustration

Vehicle OEMs HW+SW

Price per Unit

ADAS/ AD

System Solution

Software Fee per Unit

ADAS/ AD Software

Revenue Model Today

Software Fee

per Unit

ADAS/ AD Software


Our ADAS / AD Ecosystem, Complemented by Partnerships

Partners

Platform

Cloud

SensorsActuators

Partners

Connected Services

Optical TouchTechnology

Partners

Decision & Control SW/ Sensor Fusion

Computing Platform

Mapping

Partners

Driver Monitoring

LiDAR

System Integrator

Sensors/ ADAS ECUs/ Base SW

Brake Control/ HMI

Veoneer Zenuity

27

Active Seatbelts/ Haptic Warning


Hardware & Software Evolution Towards Autonomous Driving

Driver Assistance Partial Automation Conditional Automation High/ Full Automation1 2 3 4/5

Illustrative Example

SAE Level of Autonomy

>25 Sensors+ Control Unit (incl. AI), Driver Monitoring

1-6 Sensors+ Optional Control Unit

2-10 Sensors+ Control Unit

>15 Sensors+ Control Unit (incl. AI), Driver Monitoring

$4,000-10,000/ Vehicle$100-500/ Vehicle $500-800/ Vehicle $1,500-2,000/ Vehicle

Rapidly Increasing Sensors and Content per Vehicle (Hardware & Software)

60+ Features40+ Features 50+ Features 55+ Features

Hardware

Number of Software Features

Total System Content per Vehicle

28


Global Footprint

Creating Trust in Mobility

People are Veoneer’sArchitects of Success

Track-Record of Commercializing

Innovations

World Class Ecosystem and Partnerships

Dedication to Quality and Robustness

29


Our Associates Are the Architects of Our Success

~3,700 in Engineering 65% Software Engineers

Thereof, ~600 Engineers Focused on Vision

~500 Additional Software Engineers in Zenuity

~1,000 hired in Engineering during 2017

30


Proven Track-Record of Commercializing Many World Firsts(1)

1990 19952000

20052010

Restraint Controllerwith Integrated Rollover

Restraint Controllerwith IntegratedIMU

Adaptive RestraintController &Remote Sensors

CV-EnhancedFront Crash Sensing

Off-roadProtection with

Belt Control

IntegratedRestraint

Brake ControlPedestrian DetectionSystem

Airbag ECUs

with Dwell Enhancement

2015

Night Vision Pedestrian Detection System

Short & Medium Range Radar

Night VisionSensor FusionFIR / NIR

4 Corner Radar and Pre-triggering Passive Safety

Long Range Radar(in alliance with Continental as the system supplier)

Autonomous Emergency BrakingRadar and Mono VisionA

ctiv

e S

afet

y an

d B

raki

ng

Re

stra

int

Co

ntr

ol

Syst

em

s

Acceleratinginnovation pace

Night Vision Animal Detection System

(1) Including acquisitions

Learning Intelligent Research Vehicle

2017

ADAS ECU

31


A Global Footprint – Leading “Pure-Play” in Safety Electronics(1)

7,600 ASSOCIATES(1) 3,700 ASSOCIATES IN ENGINEERING

of which 65% software

22 OEM CUSTOMERS 13 COUNTRIES

9 MANUFACTURING SITES17 TECHNICAL CENTERS

Restraint Control

46%

Active Safety34%

Brake systems

20%

Sales(2)

$2.3 Bn

32

(1) As of April 2018 including Joint Ventures(2) As of 2017A


Sales Split by Region% of 2017A Revenue

Sales Split by Customer% of 2017A Revenue

21%

17%

12%12%

8%

8%

5%

3%

14%

Americas35%

Europe 29%

Asia36%

Other

Serving Blue-Chip OEMs Across All Key Regions


Unchanged Medium-Term Targets and Long-Term Ambition

2.3~3.0

~4.0

>6.0

2017A 2020E 2022E 2025E

Veoneer Revenue Targets$ Bn

0-5%

EBIT Margin

>2020E >2022E

0.8 >1.0

~2.0

>4.0

2017A 2020E 2022E 2025E

Active Safety Revenue Targets$ Bn

Strong Double-Digit Growth

Significant Margin Improvement

34

Target Ambition


Summary Key Investment Highlights

35

Exceptional Technology Growth Opportunity

Pure-Play Technology Company Focused on

ADAS & AD

Proven Track-Record & Heritage in Automotive

Safety & Saving Lives

Long-Term Value Creation

Double digit sales growthDouble digit operating margins

Cash flow generation


Art BlanchfordExecutive Vice President Sales and Product Planning

36

Our Market and Sales Outlook


Leading Market Position in Large and Rapid Growing Market

Veoneer25%


Veoneer16%

Active Safety

(1) TAM (Total Addressable Market); Active Safety Market includes Radar (Front/Side/Rear), Forward looking Cameras (Mono/Stereo/Night Vision), ADAS ECU, LiDAR and Other (Driver Monitoring, Digital Mapping, Connectivity System – V2V)

(2) Source: IHS automotive database as of May 2018

Veoneer4%

Brake Systems

Addressable Market including potential opportunity is estimated to reach $49 Bn in 2025ETAM(1)

$ Bn

Leading Market Shares Across Portfolio2017A

Active Safety

Additional Active Safety Upside

4.8

1114

2401

5

3.7

4

4

4

11.6

13

14

15

~20

~29

~33

~49

2017E 2020E 2022E 2025E

Brake Systems



~5~6

~9

~15

~30

2017E 2018E 2019E 2020E 2022E 2025E

Other

Night Vision

ADAS ECU

LiDAR

Radar Systems

Vision Systems

Substantial Growth in Active Safety Market

38

Active Safety Market Growth Driven by Increasing ADAS & AD PenetrationActive Safety TAM(1)

$ Bn

(1) TAM (Total Addressable Market); Active Safety Market includes Radar (Front/Side/Rear), Forward looking Cameras (Mono/Stereo/Night Vision), ADAS ECU, LiDAR and Other (Driver Monitoring, Digital Mapping, Connectivity System – V2V)

✓ Growing customer demand

– Increased safety, comfort & convenience

– Key branding differentiator for OEMs

✓ Increasingly stringent regulation

– High safety ratings require ADAS features

✓ Ongoing race to achieve vehicle autonomy

– Evolution from driver assistance to full autonomy (SAE level 1-5)

– Significant CPV increase with higher level of autonomy

1

3

2

~12


Increasing Customer Demand for Active Safety Features1

Source: Press statements

39


~10%

~50%

>70%

2017A 2022E 2025E

✓ NCAP ratings accelerating growth & importance of ADAS features

✓ Increasing take rates

✓ Higher frequency of innovations

Start Protocol Release Implementation

2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E

Proposal to Release Updates Outof Phase with Overall Rating

Communication OnlyBased on First Ideas

Road Map 2020E

AEB VRU Cyclist

Road Map 2025E

Driver Monitoring

AEB VRU Pedestrian - Back-over

AEB - Head-on

Automatic Emergency Steering

V2X

Rescue, Extrication and Safety

Child Presence Detection

AEB - Junction & Crossing

Revised Subsystem (Pedestrian & Cyclist)

Grading of AD Functions

EU NCAP Ratings Roadmap for Active Safety

2

Example: AEB Take RatesKey Requirement to Achieve High Safety Ratings

ADAS Critical to Achieve Higher Safety Ratings

40


• Piloted Highway Driving

• Geo-fenced City Pilot

• Unattended Valet Parking

• Mobility on Demand (L5)

• Autonomous Emergency Braking

• Lane Keep Assist

• Auto High Beam

• Adaptive Cruise Control

• Lane Change Assist

• Lane Centering

• Advanced Parking Assist

• Traffic / Highway Assist

• Automated Lane Change

• Traffic Jam Pilot

• Automated Parking

Hardware Need for Various Levels of Autonomy

• Stereo-Vision, Long Range Radar

• 4 Corner Radars, Satellites

• LIDAR Front, Mono-Vision Rear

• Driver Monitoring System

• HD Map

• V2X

• Surround View

• Far Infrared Cam.

• Mid-Range Side Sensors

• AD ECU

• Mono-Vision

• Mid Range Radar

• 2 Front Corner Radar

• 2 Rear Corner Radars

• ADAS ECU

• Mono-Vision

• 2 Front Corner Radar

• Mid Range Radar

• 2 Rear Corner Radars


• ADAS ECU

• E - Horizon

• Rear/ Surround View

• Driver Monitoring

• HD Map

• 4 Corner Radars

• Stereo Vision

• Mid Range Radar


• ADAS ECU

• Mono-Vision Rear

• V2X

• Lidar

• HD Map

• E- Horizon

• Driver Monitoring System

• Rear/ Surround View

>25 Sensors

+ Control Unit (incl. AI), Driver Monitoring

1-6 Sensors

+ Optional Control Unit

2-10 Sensors

+ Control Unit

>15 Sensors

+ Control Unit (incl. AI), Driver Monitoring

X SAE Level of Autonomy

Driver Assistance Partial Automation Conditional Automation High/ Full Automation1 2 3 4/5

Optional FitStandard Fit

Illustrative Example3

41


2017A 2022E

LRR - Front

2017A 2022E

MRR - Front

2017A 2022E

Side/Rear

Estimated Take Rates for Selected Active Safety Products

17%

51%

2017A 2022E

Forward Looking Cameras(1)

Take Rates

3%

13%

2017A 2022E

ADAS ControllersTake Rates

RadarsTake Rates

4%

10%

7%

25% 25%

10%

(2) (2)

(1) Including Mono and Stereo Vision(2) LRR: Long Range Radar; MRR: Multi Range Radar

42


Restraint Control Systems Market Largely Unchanged

43

✓ Stable market size

– Veoneer is expected to remain market leader

✓ Volume growth offset by cost reduction and integration of RCS ECU into Safety Domain ECU (Active Safety)

– RCS expertise critical for leadership in

– Safety Domain Controllers

– Event Data Recorder

– Our leadership here is foundation for OEM trust in making advanced technology Automotive Grade


~12 ~11 ~10

~3 ~5

2017E 2020E 2022E 2025E

NextGeneration

CurrentGeneration

Next Generation Braking Systems Driving Market Growth

Global Brake Controls & Actuation Market to Reach $15 Bn in 2025EBrake Systems TAM(1)

$ Bn

(1) TAM (Total Addressable Market)

~12

~13

~14~15

44

✓ Stricter regulations on vehicle emission

– Improves fuel/ electricity efficiency

– Reduces exhaust emission

✓ Growing demand of long range EVs

– Extends journey distance

✓ Extends life of brake systems

✓ Reduced manufacturing cost

~1.5

~11.6


Successful Customer Base Expansion Across Segments…

5

10

+6

+2

+3

7

19

2013A Today

Active SafetyNumber of Customers


20

+1

+3

17

24

2013A Today

Brake Systems

1

4+1

+2

+2

2

8

2013A Today(1) (1) (1)

(1) As of May 2018

Number of Customers Number of Customers

45



…Increasingly Diversified Today

(1) The 27 customers shown represent >95% of light vehicle production (Source: IHS)

Broad & Diversified Customer Base TodayMay-2018

(1)

46


(Software) RCS Brake Systems

Customer 8

Customer 1

Customer 2

Customer 3

Customer 4

Customer 5

Customer 6

Customer 7

Customer 11

Customer 14

Customer 15

Customer 16

Customer 18

Customer 19

Customer 20

Customer 21

Customer 23

Customer 24

Customer 25

Customer 26

Customer 27

Total 17 13 8 16 9 5 11 8 3 11 4 1 3 1 2 10 5 1 6 4 2 24 21 20 8 6 4

Customer 9

Customer 10

Customer 12

Customer 13

Customer 17

Customer 22

2013

Active Safety




Tremendous Order Intake Increase Over Last Three Years


$ MM

47

~250

~800

~900

~1,100

2015A 2016A 2017A LTM May-2018A

48% above prior twelve months

Active Safety

Other

Selected Recent Business Wins

Active Safety

RCS

Brake Systems

Q4 2017 Large Vision order with Asian OEM

Q2 2018First Driver Monitoring system order with major Global OEM

Q1 2018First Level 3 System order in China with Radar, Camera, ECU, and Software

Q2 2017 Repeat Radar order with European OEM

Q2 2018Latest generation RCS major award with US OEM

Q4 2017 First LiDAR order, from major US OEM

Q4 2017 Second Brake award with major US OEM

Q2 2018First Mono-Vision order with major Global OEM


Veoneer Outcompetes for L3 Awards

2016 2017 2018

RFQ Received

– L3 system to meet NCAP requirements

– 3-5 competing suppliers

Selection Process

– Performance & capability reviews

– Client visits

Customer Win

– Sales negotiation

– Sourcing secured

RFI from Geely

– Veoneer and Zenuity together initiated studies

– System specification, technical reviews & workshops with Geely

Driver Monitoring System

Vision System (Mono & Stereo)

Front Looking RadarFront Corner Radar

ADAS ECU

Rear Corner RadarOther Supplier

Other Supplier

Other Supplier

Case Study

48


✓ Capitalizing on our Market Opportunity

− Increasing vehicle take rates

− Increasing penetration with customers in all geographies

− Record order intake continues

− Software content is expected to increase significantly over the next decade

49

Summary


Johan LöfvenholmChief Operating Officer

50

Operations and Technology


For Veoneer – Innovation, Reliability and Quality is Creating Trust

Veoneer<1%

~32Mrecalled since

2010

Long industry experience and heritage of proven solutions, based on “Saving Lives”

Credibility from track record of breakthrough Innovations in passive and active safety

Reliability from solid engineering expertise and production capabilities with a Relentless focus on Zero Defects

Global Recalls in Safety Electronics2010A-17A

Automotive Safety Grade Solutions Evermore Important

51


Our Customers Are Global and So Are We

17 TECHNICAL SITES

Production Plant

Engineering Site

Joint Venture

France

Cergy

Saint-Etienne-du-Rouvray

India

Bangalore

China

Shanghai

Zhongshan

Romania

Timisoara

Iasi

Italy

Turin

UK

Coventry

Japan

Hiroshima

Yokohama

Tochigi

Ueda

Shimo-MurogaSaku

Australia

Melbourne

USA

Goleta, CASouthfield, MILowell, MAFindlay, OHFarmington Hills, MI

Canada

Markham Korea

Seoul

Sweden

Stockholm

Vårgårda

Linköping

Göteborg

Skellefteå

Germany

Dachau

Schweinfurt

Holzgerlingen

Elmshorn

Munich

9 MANUFACTURING SITES13 COUNTRIESAs of April 2018 .

52


Autonomous Driving

Automated Route(Trained)

Automated Route (Destination)

Automated Highway Driving

Automated City Driving

Automated Valet Parking

EvasiveManeuvers

AEB – City AEB – UrbanAEB –

Ped./CyclistIntersection

AssistOvertaking

Assist

Cross-TrafficAssist

Real-CollisionMitigation

Auto ParallelParking

NavigationACC /

Queue Assist

LaneCentering &

Keeping

ElectronicHorizon

Electric Power

Steering

Blind SpotMonitoring

Ped./CyclistDetection

ParkingAid

LaneDepartureWarning

ForwardCollisionWarning

HMISurround /Rear View

Anti-Lock Brakes

Stability Control

Traffic SignRecognition

Steering Controls

Propulsion Controls

Radar Cameras LIDARUltrasonic

SensorsInertia

SensorsV2X GPS

BrakeControls

MAPSDriver

Monitoring

Recent JV’s

Partners

In-house

2013High/ Full

Automation

DriverAssistance

PartialAutomation

ConditionalAutomation

Our Vision of a Full Stack Active Safety Offering for All Levels of Autonomy


Automated Route(Trained)

Automated Route (Destination)

Automated Highway Driving

Automated City Driving

Automated Valet Parking

EvasiveManeuvers

AEB – City AEB – UrbanAEB –

Ped./CyclistIntersection

AssistOvertaking

Assist

Cross-TrafficAssist

Real-CollisionMitigation

Auto ParallelParking

NavigationACC /

Queue Assist

LaneCentering &

Keeping

ElectronicHorizon

Electric Power Steering

Blind SpotMonitoring

Ped./CyclistDetection

ParkingAid

LaneDepartureWarning

ForwardCollisionWarning

HMISurround /Rear View

Anti-Lock Brakes

Stability Control

Traffic SignRecognition

Autonomous Driving

Steering Controls

Propulsion Controls

Radar Cameras LiDARUltrasonic

SensorsInertia

SensorsV2X GPS

BrakeControls

MAPSDriver

Monitoring

Recent JV’s Partners In-house

High/ FullAutomation

DriverAssistance

PartialAutomation

ConditionalAutomation

Our Vision Becomes Reality2013

54

Today


Our Technology Showcase

55

BRAKE SYSTEMSOptimum braking

DRIVER MONITORING SYSTEMSDetects driver distraction,emotions and reactions

VISION SYSTEM(Mono and Stereo)An extra pair of eyes

RADAR Multimode detectionand ranging

REAR CORNER RADAR

ROADSCAPEKnows the road ahead

ADAS ECU A supporting brain

RESTRAINT CONTROL SYSTEMWhen accidents are unavoidable

LIDAR high resolution3D imaging

NIGHT VISION Improves detection in challenging lightning

V2XThe vehicle can communicate to everything

SATELLITE CRASH SENSORS

LIDAR 360deg coverageL4 automation

REAR FRONTCORNER RADAR


Our Safety System Approach - How Our Product Lines fit Together


Brake Systems

Active Safety

Software

56

Learning Intelligent Vehicle (LIV) / Human System Interface (HSI)

Decision Making, Vehicle Control and ConnectivityActuation Sensors

Pressure

Radar

LiDARDMS

V2X

Roadscape “Digital

mapping"

G Based

Vision

Regenerative Brake Systems

Current Brake Systems

Integrated(1 Box)

Non-Integrated

(2 Box)

ADAS Controllers

Zenuity Software Stack

ADAS

Sensor Fusion

DecisionMaking

VehicleControl

Gateway Controllers

Restraint Controllers

BrakeController

Safety Domain Controllers

ESC ABS Booster

AD


Learning Intelligent Vehicle (LIV) / Human System Interface (HSI)

Decision Making, Vehicle Control and ConnectivityActuation Sensors

Pressure

Radar

LiDARDMS

V2X

Roadscape “Digital

mapping"

G Based

Vision

Regenerative Brake Systems

Current Brake Systems

Integrated(1 Box)

Non-Integrated

(2 Box)

ADAS Controllers

Zenuity Software Stack

ADAS

Sensor Fusion

DecisionMaking

VehicleControl

Gateway Controllers

Restraint Controllers

BrakeController

Safety Domain Controllers

ESC ABS Booster

AD

Our Safety System Approach - How Our Product Lines fit Together


Brake Systems

Active Safety

Software

57


Vision Development

Salah HadiMasters, Applied Physics and Electrical Engineering

Director, Vision Systems

Core differentiating Innovations – Three Examples

58

System Software

Erik CoelinghPhD Electrical Engineering, Adjunct Professor Mechatronics, Chalmers University of Technology

Technology Advisor

Human Systems

Ola BoströmPhD Theoretical and Mathematical Physics, Associate Professor Traffic Safety, Chalmers University of Technology

Vice President Research and Patents

1 2 3


Vision Systems Software Long-Term ResearchFocus on human/machine interaction

Three Core Examples

59

1 2 3


2017 Mono Vision AEB (3rd Generation)

• Mono Camera with Vision only based AEB capabilities

• Cost effective solution to meet NCAP 2018 (Lane, AEB, TSR)

► Launched on new A-Class, confirmed SOP with additional OEM

2019 Mono and Stereo Vision (4th Generation)

• Next generation Stereo and Mono cameras

• Support Automated Driving and NCAP 2020

► Confirmed SOPs with 5 OEMs

2022+ Next generation Vision systems(5th Generation)

• High resolution imagers

• Advanced algorithms and processing

• Multiple camera support

► In RFQ/RFI with multiple OEMs

Vision Roadmap - ADAS and HAD Sensing

Award winning driver assistance system (Stereo Camera key contributor)

Launched 2018 on new A-Class


RGB Image from Left camera

Occupancy grid

Occupancy grid overlay

3D point cloud



Pro

du

ct

2016

Feat

ure

2018 20222020

Mono Vision 21.2 Mp / 50°



Mono Vision 54-8 Mp / >120°

Stereo Vision 22x 1.2 Mp / 50°

Stereo Vision 42x 1.7 Mp / 100°

Stereo Vision 52x 4-8 Mp / >120°

MVS2:Lane Departure WarningLane Departure PreventionLane Keep AssistHigh Beam AutomationAdaptive High BeamTraffic Sign Assist (Fused with Navi System)Cross Walk Alert/Wrong Way Alert

SVS2:MVS2 features +3D Object Detection for ACC S&G/TJA, Automatic Lane Change Assist, Collision Warning and AEB by fusionGeneral Object Detection3D Lane DetectionRoad Surface PreviewSupport Object enhanced Map

MVS3:MVS2 Features +Object Detection (Vehicle/Pedestrian/Cyclist) for ACC S&G and AEB by FusionRoad Boundary LightTraffic Sign Recognition (without Map information)NCAP 2018

MVS4:2:nd Generation Object Detection2:nd Generation Lane Detection& Road BoundaryFree Space DetectionTraffic Light DetectionSupport Object Enhanced MapNCAP 2020SVS4:2:nd Generation 3D Object DetectionParking AssistSmall Object Detection

MVS5 Base:3:nd Generation Object Detection (DNN)3:nd Generation Lane Detection& Road Boundary (DNN)

MVS5 Mid:Enhanced detection range Objects

SVS5:3:nd Generation 3D Object Detection2:nd Generation Small Object Detection

63


Shape the

FUTUREof DRIVING

Dr. Erik CoelinghTechnology Advisor


Combining driver support (ADAS) and autonomous driving (AD)

65

CITY PILOT & AUTO VALET PARKING

Larger urban roads

Increased functionality over time (OTA)

Intersection & Traffic light

Driverless auto park on public roads

TRAFFIC JAM PILOT

Unsupervised case

Driver monitoring camera

Boxed-in (<60 km/h)

Redundant architecture

ROBOTAXI CAPABILITY

Driverless

Increased coverage over time (OTA)

High availability

High-performance sensing and compute

HIGHWAY PILOT & AUTO VALET PARKING

On highway (<130 km/h)

Increased functionality over time (OTA)

Driverless in park areas

Additional driver support & NCAP functionality

NEXT GEN DRIVER SUPPORT

NCAP 2018 - 2020

Connected Cloud

Driver Support

Connected Road View

202x

2023

2021

2020

2019

Our Product Roadmap


Scalability to Match OEM Needs

CAM360 L

CAM360 R

CAM360 FWD

CAM360 RWD

Surround VisionECU

OEM CloudZenuity Cloud Apps

Radar

USS x12 (option)

Radar

vehicle network

HMI – LVDS

Radar

Radar

Driver Monitor

FLL

ADAS

Traffic Jam Pilot

ADAS ECU

+

Front Camera

+

AD ECU

SideSensors

CAMFL

Highway Pilot

external

Front RadarLongRadar

CAMFR

CAMRL

CAMRR

CAMrear

CAMnarrow

ETH

optional

66


As it has to be significantly safer than the average human driver

Combine agile development with robust solutions

Objects

Confidence Capability

Planned Path

Executed PathPerceptionDecision-

MakingVehicle

Control

Safety Goal

Sensor 1

Sensor 2

Sensor n

AD-Brain Power

Steering Primary

Brake Secondary

Brake

Vehicle

Control Unit

Autonomous Driving is All About Safety

67


Perception

Deep Learning

68


Building Complete Customer FeaturesHighway Pilot

Perception

Decision-

Making

Vehicle

Control

with Speed, Agility, Robustness and Safety

69


Conclusions

• We can deliver a complete SW stack from sensing to actuation.

• Our starting point was a world-leading ADAS technology, which we continuously enhance and expand with state-of-the-art technologies.

• We scale our SW stack from ADAS to AD, by the combination of speed and robustness.

70


2018

1

3billion

1.4million


2040

1

6billion

0.7million

3billion

1.4million


LIV - The Learning Intelligent Vehicle

Human and Machine

as a joint cognitive system,

sharing control and

trusting each other


AI and UX in LIVCognitive load (MIT AgeLab)


AI and UX in LIVEmotions (Affectiva)


2040 6billion

3billion

0.7million

1.4million

Half as many traffic fatalities with twice as many consumers, thanks to our human centric approach!


✓ Leading through Innovation, Reliability and Quality

− Proven Quality track record producing Automotive Grade

− Proven vision technology and are on track for Highly Automated driving

− Complete scalable software solutions from perception to vehicle control

− By creating trust, we can make the future journey not only safe and sound, but an enjoyable user experience

77

Summary


Mathias HermanssonChief Financial Officer

ValueCreation

78


Drivers for Long-Term Value Creation

Profitable Growth

~4x higher order intake

compared to 2015A and

continued strong momentum

Strong operating leverage

providing path to

sustained profitability

$1.0 Bn cash liquidity, providing

stability to positive cash flow and

foundation for growth

2Strong Growth in Order Intake

1Capitalized for Growth Plan

3

79


Well Balanced Footprint and Growing Benefits From Asia

80

1

Americas27%

Europe36%

Asia37%

~$3.0 Bn

Americas29%

Europe33%

Asia38%

~$4.0 Bn

Americas35%

Europe29%

Asia36%

$2.3 Bn

2017A Sales

2020E Sales

2022E Sales


Active Safety With Increasingly Balanced Customer Base

81

(1) Highly indicative target, customers might differ over years

1

$0.8 Bn

~50%

>$1.0 Bn

~40%(1)

~$2.0 Bn

~20%(1)

2017A Sales

2020E Sales

2022E Sales


How Order Intake Translates into Revenue

82

Order Revenue

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 9Year 7Year 6 Year 8

Time until Start of Production:

2-4 years

Order Billing Cycle: 4-6 Years

Illustrative Example

$1 Bn order intake typically accumulates into ~$4-6 Bn of lifetime revenue

1

$1 Bn

Engineering Cost


Tracking Towards our Revenue Targets

83



$ Bn

1

~0.9

~1.1

2017A LTM May 2018Active Safety Other

> $2.5 BnLifetime Active Safety

Order Value

> $5.5 BnLifetime Veoneer

Order Value

Total Revenue Targets

2020E: $3 Bn – Nearly Booked

2022E: $4 Bn – Close to 70% Booked

✓

(✓)

Active Safety Revenue Targets

2020E: >$1 Bn – Booked

2022E: $2 Bn – Close to 70% Booked

✓

(✓)


Significant Investment Towards Future Growth

84

2

RD&E, Net($ MM; % of Sales)

CapEx($ MM; % of Sales)

Total Investment($ MM; % of Sales)

214

300

375

2015A 2016A 2017A

267

402

485

2015A 2016A 2017A

13.4% 13.5% 16.2%

53103 110

2015A 2016A 2017A

3.3% 4.6% 4.7% 16.7% 18.1% 20.9%

✓ 20% of sales re-invested to accelerate future growth

– Zenuity run rate approx. $15 million net cost per quarter (equity participation)

✓ Planned increase in RD&E over recent years…

– Driven by strategic priorities

– Timing effect in %, normalizing as revenues materialize

✓ …and capex, to support revenue targets

– Enhanced delivery capability across portfolio

– 5x Active Safety revenues from 2017 to 2025Approx. $70 million increase in 2018

High-single digits in 2018(% of sales )


Multiple Levers Providing Clear Path to Sustained Profitability

85

2

Gross Profit Growth Driven by Revenue Increase

EBIT Margin Target 2020E

0-5%

Gross Profit($ MM; Margin in %)

RD&E, Net(% of Sales)

SG&A(% of Sales)

17.5% 19.1% 20.0%

Mid-Term Outlook Mid-Term Outlook

Operating Leverage Driving Margin Expansion

278

423466

2015A 2016A 2017A

4.3% 4.9% 4.7%

2015A 2016A 2017A

13.4% 13.5%16.2%

2015A 2016A 2017A

Mid-Term Outlook


Solid Capital Structure to Maximize Potential

Cash Balance at Separation

Total Cash Liquidity of ~$1Bn at spin-off

~$1.0 Bn

3

Growth Liquidity

Operational Funding

✓ Well capitalized until cash-flow positive

– RD&E and Engineers

– Capex

– Zenuity

✓ Supports potential M&A and partnerships

✓ Provides stability for key stakeholders

– Customers

– Employees

– Shareholders

86


Acquisition

Nov-2017

50-50 JV with Volvo Cars

Apr-2017

51-49 JV with Nissin Kogyo

Apr-2016

Non-exclusive collaboration

Oct-2017


Aug-2017


Jul-2017

M&A and Collaborations to Accelerate Organic Plan

✓ Strengthen our ADAS & AD eco system

– Bolt-on

– Next generation sensors

– Software

✓ Strong technology focus

– Accelerate speed to market

– Strengthen AD capabilities

– Add specific niche expertise

✓ Strategic focus to accelerate system integrator role

Acquisition

Aug-2015

Recent Acquisitions & JVs Collaborations

3

87


Well Positioned for Long-Term Value Creation

PROFITABILITY

REVENUE TARGETS

ON TRACK

PROFITABILITY TARGETS

ON TRACK

STRONG FINANCIAL FOUNDATION

SUPPORTING TARGETS

2REVENUES

1CAPITAL STRUCTURE

3

88


Q&A

89


Closing remarks

90


Thank You!

91


Appendix

92


Glossary of Abbreviations

ACC Adaptive Cruise Control

AD Autonomous Driving

ADAS Automated Driver Assistance Systems

AEB Autonomous Emergency Braking

AES Autonomous Emergency Steering

AI Artificial Intelligence

AS Active Safety

AS Market Includes Radar (Front/side/rear), Forward looking Cameras (Mono/Stereo/Night Vision), Other (Advanced Driver Assist Electronic Control Unit, LiDAR, Driver Monitor Systems, Positioning Systems, Digital Mapping, V2X)

CAGR Compound Annual Growth Rate

CapEx Capital Expenditure

CPV Content per Vehicle

DMS Driver Monitoring System

EBITDA Earnings before Interest, Taxes, Depreciation & Amortization

ECU Electronic Control Unit

ENR European Nation Regulation

D-3 OEM

EPS Earnings per share

EU Europe

EV Electric Vehicle

FMVSS Federal Motor Vehicle Safety Standards

GLVP Global Light Vehicle Production

GPS Global Positioning System

HAD Highly Automated Driving

IIHS Insurance Institute of Highway Safety

LRR Long Range Radar

MRR Multi Range Radar

NCAP New Car Assessment Program

SAE Society of Automotive Engineers

TAM Total Addressable market includes Active Safety, Brake Control Systems and Restraint Control Systems

UN United Nations

V2V Vehicle to Vehicle

V2I Vehicle to Infrastructure

V2X V2V + V2I

93


Income Statement Bridge

94

Segment vs. Carve-out Form 10, Unaudited

US$ Millions (except where specified) Q1 2018 2017 2016 2015

Sales $594.3 $2,322.2 $2,218.3 $1,588.6

Gross Profit $111.7 18.8% $465.6 20.0% $423.2 19.1% $278.4 17.5%

SG&A $(30.8) (5.2)% $(110.0) (4.7)% $(109.8) (4.9)% $(68.0) (4.3)%

RD&E $(106.1) (17.9)% $(375.4) (16.2)% $(299.7) (13.5)% $(213.6) (13.4)%

Amortization $(5.3) (0.9)% $(37.0) (1.6)% $(34.5) (1.6)% $(9.8) (0.6)%

Other income (expense), net $14.5 2.4% $8.3 0.4% $(4.0) (0.2)% $4.6 0.3%

Operating Income / (Loss)* as “Carve-out” Standalone** $(16.0) (2.7)% $(48.5) (2.1)% $(24.8) (1.1)% $(8.4) (0.5)%

Operating Income / (Loss) as Segment* $30.2 5.1% $54.0 2.3% $61.5 2.8% $64.5 4.1%

Difference Standalone vs. Segment $(46.2) (7.8)% $(102.5) (4.4)% $(86.3) (3.9)% $(72.9) (4.6)%

RD&E costs fully attributed to Veoneer ($31.7) (5.3)% ($73.8) (3.2)% ($57.9) (2.6)% ($53.5) (3.4)%

Corporate costs and Other are re-distributed to Veoneer ($14.5) (2.4)% ($28.7) (1.2)% ($28.4) (1.3)% ($19.4) (1.2)%

P&L Effect - 2017

• SpinCo (Veoneer) Combined Financial Statements are based on a derived “Carve-out” of a standalone business from Autoliv

1) “R&D costs” are fully attributed to Veoneer ~$70M

2) “Corporate cost and other” are re-distributed to Veoneer ~$30M

P&L Effect – Q1 2018

• Segment result impacted by MACOM earn-out release and reduced amortization in 2018

• SpinCo (Veoneer) result derived from “carve-out” adjustments with higher attributable R&D cost in the first quarter

• GM recall cost of $6M included in Corporate costs and Other adjustments

(*) Non US GAAP reported excludes on-time goodwill impairment charge related to ANBS in 2017, (**) Veoneer based on a derived from “carve-out” of Combined Financial Statements as a Standalone company filed in the Form 10 for Veoneer Inc.


Form 10 – Income Statement(2015 – 2017)

95

2017 2016 2015

Net sales Note 18 2,322.2$ 2,218.3$ 1,588.6$

Cost of sales (1,856.6) (1,795.1)

Gross profit 465.6 423.2

Selling, general and administrative expenses (110.0) (109.8)

Research, development and engineering expenses, net (375.4) (299.7)

Goodwill, impairment charge Note 10 (234.2) -

Amortization of intangibles Note 10 (37.0) (34.5)

Other income (expense), net 8.3 (4.0)

Operating loss (282.7) (24.8)

Loss from equity method investments Note 8 (30.7) -

Interest income Note 19 0.3 0.1

Interest expense (0.3) (0.2)

Other non-operating items, net (0.8) 3.1

Loss before income taxes (314.2) (21.8)

Income tax expense Note 5 (30.1) (38.3)

Net loss (344.3) (60.1)

Less: Net loss attributable to non-controlling interest (127.3) (7.0)

Net loss attributable to controlling interest (217.0)$ (53.1)$ $

Years ended December 31

(1,310.2)

278.4

(68.0)

(213.6)

-

(9.8)

4.6

(8.4)

-

-

(0.3)

0.5

(8.2)

(21.8)

(30.0)

-

(30.0)


Form 10 – Balance Sheet(2015 – 2017)

96

At December 31

2017 2016Assets

Receivables, net Note 6 $ $

Inventories, net Note 7

Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net Note 9

Investments and other non-current assets Note 8

Goodwill Note 10

Intangible assets, net Note 10

Related party notes receivable Note 19

Total assets $ $

Liabilities and equity

Accounts payable $ $

Related party payables Note 19

Accrued expenses Note 11

Income tax payable

Other current liabilities

Related party short-term debt -

Total current liabilities $ $

Related party long-term debt Note 19

Pension liability Note 17

Other non-current liabilities

Total non-current liabilities $ $

Commitments and contingencies Note 15, 16

Parent Equity

Net parent investment

Accumulated other comprehensive loss

Total Parent Equity

Non-controlling interest

Total Parent Equity and non-controlling interests

Total liabilities, Parent Equity and non-controlling interests $ $

460.5

154.2

34.0

648.7

361.9

162.0

291.7

122.2

76.0

1,662.5

322.8

5.0

195.2

41.3

25.7

590.0

62.2

13.9

39.3

115.4

843.9

(8.3)

835.6

121.5

957.1

1,662.5

445.0

164.4

39.5

648.9

327.1

36.0

490.1

163.0

74.0

1,739.1

318.2

5.0

192.6

31.6

25.0

3.5

575.9

11.1

15.0

48.0

74.1

876.7

(29.3)

847.4

241.7

1,089.1

1,739.1


Form 10 – Cash Flow(2015 – 2017)

97

2017 2016 2015

Operating activities

Net loss $ $ $

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization

Goodwill, impairment charge

Deferred income taxes

Undistributed loss from equity method investments Note 8

Gain on investment in Zenuity Note 8

Stock-based compensation

M/A COM earn-out adjustment Note 3

Net change in:

Related party payables, net

Receivables and other assets, gross

Inventories, gross

Accounts payable and accrued expenses

Income taxes

Other, net

Net cash (used in) provided by operating activities

Investing activities

Expenditures for property, plant and equipment

Proceeds from sale of property, plant and equipment

Acquisition of intangible assets

Acquisition of businesses and interest in affiliates, net of cash acquired Note 13

Net increase in related party notes receivable

Net cash used in investing activities

Financing activities

Net increase / (decrease) in short-term debt including related party

Repayments and other changes in related party long-term debt

Net transfers from Parent

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Increase / (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year $ $ $

Years ended December 31

(344.3)

118.8

234.2

(11.3)

30.7

(10.7)

2.1

(12.7)

(0.1)

2.2

18.9

(20.8)

9.9

(18.1)

(1.2)

(110.0)

6.9

(125.3)

(2.0)

(230.4)

(3.6)

50.8

184.4

231.6

-

-

-

-

(60.1)

105.5

(10.9)

2.8

5.1

(182.6)

(7.7)

132.6

20.2

(12.2)

(7.3)

(102.5)

1.5

(226.3)

(8.1)

(335.4)

3.7

11.9

327.1

342.7

-

-

-

-

(30.0)

53.1

-

0.3

-

-

1.8

-

-

(91.8)

(38.0)

117.7

8.6

(2.8)

18.9

(53.4)

3.8

(24.9)

(98.9)

(28.9)

(202.3)

(0.3)

-

183.7

183.4

-

-

-

-

-

- -

-

-

-


Form 10 – Income Statement(Q1 2018 unaudited)

98

March 31, 2018 March 31, 2017

Net sales Note 3, 15 594.3$ 583.3$

Cost of sales (482.6) (469.9)

Gross profit 111.7 113.4

Selling, general and administrative expenses (30.8) (29.4)

Research, development and engineering expenses, net (106.1) (87.5)

Amortization of intangibles (5.3) (19.1)

Other income (expense), net 14.5 12.2

Operating loss (16.0) (10.4)

Loss from equity method investments Note 8 (14.0) -

Interest income Note 16 0.1 -

Interest expense Note 16 (0.2) -

Other non-operating items, net 0.1 (0.6)

Loss before income taxes (30.0) (11.0)

Income tax expense Note 6 (7.0) (11.0)

Net loss (37.0)$ (22.0)$

Less: Net loss attributable to non-controlling interest (4.7) (2.2)

Net loss attributable to controlling interest (32.3)$ (19.8)$

Three months ended


Form 10 – Balance Sheet(Q1 2018 unaudited)

99

March 31, 2018 December 31, 2017

(unaudited)

Assets

Receivables, net 503.8$ 460.5$

Inventories, net Note 7 160.7 154.2

Prepaid expenses and other current assets 40.8 34.0

Total current assets 705.3 648.7

Property, plant and equipment, net 398.1 361.9

Investments and other non-current assets 244.6 162.0

Goodwill Note 5, 9 291.5 291.7

Intangible assets, net Note 5 121.1 122.2

Related party notes receivable Note 16 - 76.0

Total assets 1,760.6$ 1,662.5$

Liabilities and equity

Accounts payable 325.3$ 322.8$

Related party payables Note 16 5.6 5.0

Accrued expenses Note 10 213.2 195.2

Income tax payable 42.0 41.3

Other current liabilities 35.8 25.7

Short-term debt 23.8 -

Total current liabilities 645.7 590.0

Related party long-term debt Note 16 36.2 62.2

Pension liability 14.4 13.9

Other non-current liabilities 26.4 39.3

Total non-current liabilities 77.0 115.4

Commitments and contingencies Note 14

Parent Equity

Net parent investment Note 2 917.0 843.9

Accumulated other comprehensive income (loss) 0.4 (8.3)

Total Parent Equity 917.4 835.6

Non-controlling interest 120.5 121.5

Total Parent Equity and non-controlling interests 1,037.9 957.1

Total liabilities, Parent Equity and non-controlling interests 1,760.6$ 1,662.5$

As of


Form 10 – Cash Flow(Q1 2018 unaudited)

100

March 31, 2018 March 31, 2017

Operating activities

Net loss $ (37,0) $ (22,0)

Depreciation and amortization 27,9 40,4

Other, net 5,8 (3,6)

M/A COM earn-out adjustment (14,0) (12,7)

Changes in operating assets and liabilites (61,4) 5,5

Net cash (used in) provided by operating activities (78,7) 7,6

Investing activities

Expenditures for property, plant and equipment (30,9) (27,3)

Proceeds from sale of property, plant and equipment 1,5 3,1

Acquisition of businesses and interest in affiliates, net of cash acquired (71,5) -

Net decrease in related party notes receivable 76,0 7,8

Net cash used in investing activities (24,9) (16,4)

Financing activities

Net increase in short-term debt including related party 23,4 8,7

Repayments and other changes in related party long-term debt (26,4) -

Net transfers from Parent 106,6 0,1

Net cash provided by financing activities 103,6 8,8

Effect of exchange rate changes on cash and cash equivalents - -

Increase / (decrease) in cash and cash equivalents - -

Cash and cash equivalents at beginning of year - -

Cash and cash equivalents at end of year -$ -$

Three months ended

Documents

Creating a Trusted Leader in Mobility - autoliv.com...Radar 24 GHz NB Europe (SOP 2020) Asia (SOP 2019) North America (SOP 2018, 2019) Radar 77GHz Europe (SOP 2019) Asia (SOP 2019,