Hampus Engellau

Hampus Engellau asked if the domestic Chinese OEM client for European business is an existing client and about the underlying fundamentals. He also inquired if the upper range of the full-year margin guidance (11%) is primarily within Autoliv's control or if it's heavily influenced by customer call-off stability.

Answer

President and CEO Mikael Bratt confirmed that the Chinese OEM is an existing customer. Mikael Bratt and CFO Fredrik Westin stated that the margin guidance is based on their best knowledge and largely within their control, though external factors play a role. Mikael Bratt added that the Q4 2025 call-off volatility was temporary, expecting a return to around 95% stability and eventually pre-pandemic levels.

Hampus Engellau from Handelsbanken Capital Markets inquired about the domestic Chinese OEM client with whom Autoliv secured new business in Europe, asking if it was an existing relationship and the underlying reasons for the win. He also questioned the extent to which the upper range of Autoliv's full-year margin guidance (11%) is within the company's control versus being influenced by customer call-off stability.

Answer

President and CEO Mikael Bratt confirmed that the Chinese OEM client for the European business is an existing and established customer. Regarding the margin guidance, Mikael Bratt stated that the projected range is largely within Autoliv's control, based on their best assessment of future conditions, and noted that the recent Q4 call-off volatility is considered temporary, with expectations for a return to more stable levels.

Hampus Engellau sought clarification on the tariff cost compensation, specifically if Autoliv expects 100% compensation, and asked for insights into planned launches for 2026 compared to 2025.

Answer

Fredrik Westin, EVP Finance and CFO, confirmed Autoliv is still net negative on tariff compensation but expects full compensation and catch-up in Q4. Mikael Bratt, President and CEO, stated no specific figures for 2026 launches are available yet, but noted good order intake despite some EV program delays or cancellations leading to reshuffling.

Hampus Engellau from Handelsbanken asked if intense price competition among Chinese domestic OEMs has negatively impacted Autoliv's pricing. He also requested an update on the company's performance in India, including market share and growth contribution.

Answer

CEO Mikael Bratt stated that Autoliv remains competitive and that the main challenge in China has been product mix, not pricing pressure. CFO Fredrik Westin reported that in India, Autoliv has a ~60% market share, significantly outperformed LVP in H1, and expects India to account for about 5% of total group sales in 2025.

Hampus Engellau inquired about the progress of the capacity alignment and headcount reduction program. He also asked for the outlook on regional and product mix for the remainder of the year.

Answer

CFO Fredrik Westin confirmed the headcount reduction program is progressing well, with over 1,500 indirect staff reduced and total headcount down 6% year-over-year, contributing to expected savings. He noted that the negative regional mix seen in Q1 would likely continue in Q2, but a more favorable development is expected in the second half, particularly in China, though a negative mix for the full year is still anticipated.

Hampus Engellau asked about the status of the capacity alignment program, specifically regarding headcount reduction targets, and inquired about the expected sales mix development for the upcoming quarters based on the LVP outlook.

Answer

CFO Fredrik Westin confirmed the headcount reduction program is progressing well, with over 1,500 indirect staff reduced and savings on track. Regarding mix, he stated that the negative 3-percentage-point mix from Q1 will likely persist in Q2. While a more favorable development is expected in the second half, the full year is still anticipated to have a negative mix of over one percentage point.

Hampus Engellau from Handelsbanken asked whether Autoliv's LVP outlook was based on its own discussions with OEMs or on S&P Global's forecast, noting potential discrepancies. He also requested details on the content per vehicle (CPV) trend in the growing Indian market.

Answer

CEO Mikael Bratt confirmed that the full-year LVP guidance of -0.5% is primarily based on S&P Global's forecast and has not been adjusted for potential tariff impacts. Regarding India, Bratt highlighted significant growth, with CPV at around $120 in 2024, expected to rise to nearly $140 in 2025 and potentially $160 thereafter. He noted Autoliv is well-positioned to capture this growth with its 60% market share.

Hampus Engellau inquired about the progress of Autoliv's cost reduction program, specifically the expected headcount reductions in Q4, and asked about the company's increasing business with Chinese domestic OEMs.

Answer

CFO Fredrik Westin clarified that indirect headcount has been reduced by over 1,200 and direct headcount by 6%, with progress aligning with expectations for savings. CEO Mikael Bratt added that the company is gaining significant traction with Chinese OEMs, which is expected to be a positive contributor to performance in 2025.