Creating more value Saving more lives. Copyright Autoliv Inc., All Rights Reserved

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Transcription:

Creating more value Saving more lives 1

Capitals Markets Day Agenda 08.35-09.20 Strategic Direction Jan Carlson 09.20-09.50 Technology Steve Fredin/ Dennis Nobelius 09.50-10.30 Coffee Break & Exhibition 10.30-11.00 Financial Overview and Targets Mats Backman 11.00-11.50 Q&A 11.50-12.00 CEO Conclusion 12.00-13.00 Lunch served in Palmengarten s Foyer 13.00-14.00 Interactive Exhibition - Free walk around 14.00 CMD ends

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 Autoliv, Inc. or its management believes or anticipates may occur in the future. All forwardlooking statements, including without limitation, statements related to the Company s strategic review of its operating structure or the terms, timing or structure of any such transaction as a result of such review, if any; the outlook for Passive Safety and Electronics as separate businesses; statements related to the future performance of the Company or of any such businesses if any such transaction is completed; other targets regarding the Company s performance as a single entity; management s examination of historical operating trends and data, as well as estimates of future sales, operating margin, cash flow, effective tax rate 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, changes in light vehicle production; fluctuation in vehicle production schedules for which the Company is a supplier, changes in general industry and market conditions or regional growth or decline; changes in and the successful execution of our capacity alignment, restructuring and cost reduction 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 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; costs or difficulties related to the integration of any new or acquired businesses and technologies; continued uncertainty in pricing 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 and customer reactions thereto; (including the resolution of the Toyota recall); 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 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; political conditions; dependence on and relationships with customers and suppliers; the uncertainty as to which strategic alternatives may be available with respect to the Electronics business, whether any transaction will be commenced or completed as a result of such review, and the timing and value of any such transaction; risks related to the potential separation of the Electronics business; 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. (*) Non-US GAAP reconciliations are disclosed in our regulatory filings available at www.sec.gov or www.autoliv.com. 3

Our Board has initiated a strategic review As announced earlier today, Board of Directors has instructed management to conduct a strategic review of its operating structure with the intent to create separate companies of its two current business segments, Passive Safety and Electronics. Certain CMD materials include an illustrative indication of what two standalone companies may look like if our Board were to approve of a separation into two publicly-listed entities. All Passive Safety and Electronics standalone targets presented today include several key assumptions and uncertainties, including among others that following the strategic review initiated today, the Board approves a separation of Passive Safety and Electronics into two publicly traded entities. There is no guarantee that this will occur. All Passive Safety and Electronics standalone targets and assumptions presented illustrate what these businesses may look like as standalone entities and include several key assumptions and uncertainties, including among others (i) that the Board approves a separation of our two operating segments into standalone companies, (ii) an allocation of various corporate costs, which may not be reflective of actual costs of separate companies pursuing their respective strategies, (iii) that it is anticipated that the Electronics business would have additional overhead costs and thus a slight margin compression in the near-term while the Passive Safety business would have a slight margin support from a different allocation of corporate costs, (iv) that the product portfolio will be consistent with current segment portfolios, and (v) that certain items such as transaction costs and costs of any transition services are not reflected in the targets and assumptions.

Welcome Jan Carlson Chairman, President & CEO Creating more value Saving more lives 5

Automotive industry in its largest transformation ever Automotive Mega trends AUTOMATED DRIVING & CONNECTIVITY NEW MOBILITY CLEAN MOBILITY 6

GERMANY 35% INDIA 62% CHINA 65% Are Consumers Consumers ready for are ready! Autonomous Driving? 7 Source: Deloitte study on Consumer opinions on advanced vehicle technology USA 45%

Consumers Technology are is ready! 8

Next big Are we change ready? is here 9

A historical decision that resulted in a world leader Autoliv Group US$ (millions) 10,000 The air bag revolution The China car market revolution The Digital revolution 8,000 Merger with Morton ASP 6,000 Autoliv spin-off from Electrolux 4,000 2,000,0 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 10

Autoliv Stronger than ever QUALITY LEADER in all parts and aspects of our business PEOPLE AND CULTURE We rely on the skills of our people WORLD LEADING FOOTPRINT in manufacturing and engineering INNOVATION builds the long term success 11

Example Q5 Behavior JIDOKA automation with a human touch" A recent example: On August 18, Viktor Tsysar noticed a difference in hardness and gloss of a component for an airbag during assembly in Autoliv Poland He immediately stopped the production line It turns out a that supplier hade used incorrect plastic material while molding the part Thanks to Viktor s swift reaction, a potential major recall could be avoided 12

Autoliv stronger than ever with sustainability in focus Autoliv s vision of Saving More Lives Directly supports the UN Sustainable Development Goal no 3, Good Health and Well-being, focused on reducing global deaths and injuries from road traffic accidents by 50%. Innovate Life- Saving Products Limit our Impact on the Environment Commit to our Employees Act Responsibly & Commit to Society 13

Our Strategies to Stay Ahead Quality Zero defects by flawless execution One Product One Process to improve cost effectiveness and robustness Autoliv 2% RECALLS* MARKET SHARE 2016** ~ 170M recalled since 2010 Global Europe Americas Japan 39% Innovation to lead industry in Real Life Safety China Rest of Asia 0% 20% 40% 60% 14 *)Scope: Japan, Canada, US, China, South Korea, Australian, EU, UK, DE, AB, SB, Electronics, 2010-01-01 to 2017-06-30 **) Includes Airbags, Steering wheels and Seatbelts

Road Fatalities per Country per 100,000 inhabitants/year per 100,000 vehicles 120 100 80 60 40 20 0 Source: Autoliv estimates France Germany Italy Spain Sweden China India Japan South Korea USA Brazil 15

Additional benefits to consumers Comfort, convenience and productivity 16

A decade of transformation Company transformed for the digital age Made substantial investments in technology, capacity and operational efficiency Made an already strong company even stronger Built Electronics into a world-leading entity Invested in vertical integration for cushions and inflators in China Supported the industry in difficult times Investment in technology for small car safety Building up steering wheels capacity in Eastern Europe Restructuring in South America Capacity alignment in Europe A new technology shift, a new evolution 17

Our Transformation continues 18

Strategic review of transition to stand alone entities Passive Safety Standalone Electronics Standalone 19

Passive Safety never in a better position 20

A Winning Business Formula Number of units (million)* 350 300 250 Statistically, more than 3 airbags and seatbelts from Autoliv have been delivered to every vehicle produced globally last 10 years 200 150 100 CAGR ~12%** 1.3B Airbags* 1.2B Seatbelts* 50 CAGR ~5%** 0 1997 07' 08' 09' 10' 11' 12' 13' 14' 15' 16' Seatbelts Airbags 21 * ) Autoliv airbag and seatbelt production volumes 2007-2016 **) CAGR since 1997

A Winning Business Formula Today the global leader in passive safety 40% 35% 39% global market share 12% 5% 7% 8% 15% Frontal Airbags 21% 32% 7% 13% 5% 5% 7% Side Airbags 14% 49% 30% 25% 20% 15% 10% 11% 3% 7% 16% Seatbelts 24% 39% 9% 10% 10% 4% 15% Steering Wheels 20% 32% 5% 0% Serving 1,300 models and 100 car brands 22

Line Frontal Line Frontal Cost Efficiency: Growth Within Existing Footprint Freeing-up factory space lowers CAPEX and improves RoCE Pyrotechnic inflator plant in Taketoyo, Japan Expanding from 6 to 9 lines Line Frontal Remove parts stock area Line Frontal Reduce prototype area Line ADP Line Frontal Line Frontal Line Side Line Side No of production lines + 50% No of products / production m 2 + 70% No of materialhandlers - 33% 23

Passive Safety a ~$25B Market in 2025 Market is expected to grow 1 pp faster than the underlying LVP LVP CAGR: ~2% US$ (Billions) CAGR: ~3% CPV ($) 26 ~$25B 300 Content Per Vehicle 24 22 20 ~$20B ~$23B 4.3 4.7 0.7 RoW India China 250 200 18 3.8 0.5 Triad 150 16 0.3 5.3 6.5 100 14 12 10 4.4 12.9 13.1 11.5 2017 2020 2025 50 0 Growth Markets ** ** Triad *Company market estimates. Includes seatbelts, airbags, steering wheels. CAGR = Compound Annual Growth Rate, TAM = Total Addressable Market. ** Growth Markets : China, Eastern Europe, India, Southeast Asia, South America and Middle East & Africa. Triad: North America, Western Europe & Japan 24

Passive Safety a ~$25B Market in 2025 Market is expected to grow 1 pp faster than the underlying LVP LVP CAGR: ~2% US$ (Billions) CAGR: ~3% 26 ~$25B New opportunities in the AD World 24 22 20 ~$20B ~$23B 4.3 4.7 0.7 RoW India China 18 3.8 0.5 Triad 16 0.3 5.3 6.5 14 4.4 12 10 11.5 12.9 13.1 2017 2020 2025 *Company market estimates. Includes seatbelts, airbags, steering wheels. CAGR = Compound Annual Growth Rate, TAM = Total Addressable Market. ** Growth Markets : China, Eastern Europe, India, Southeast Asia, South America and Middle East & Africa. Triad: North America, Western Europe & Japan 25

Passive Safety ~50% of Industry Order Wins in 2015 to 2017 YTD Order Intake* Billions $1.3 ~37% ~37% ~37% $2.2 $2.3 $2.4 ~51% ~50% ~48% ~50% ~50% ~50% ~50% 2014 2015 2016 LTM** Stand alone targets 2020: >$10B = 8% CAGR** 2017-2020 ~13% adj Operating Margin*** Beyond 2020: At least maintain market share and grow at least with LVP plus 1 percentage point Successfully capturing the market opportunity while supporting the industry 26 *) Disclosure of orders will not be made regularly, **) Last Twelve month order intake as of August 31,2017.. ***) Non- U.S. GAAP measure excludes costs related to capacity alignment and antitrust related matters. The forward looking non-u.s. GAAP financial measures herein are provided on a non-u.s. GAAP basis. Autoliv has not provided a U.S. GAAP reconciliation of these measures because items that impact these measures, such as costs related to capacity alignments and antitrust matters, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable Copyright efforts Autoliv and Inc., Autoliv All is Rights unable Reserved to determine the probable significance of the unavailable information.

Electronics - built for the future 27

Electronics a ~$43B Market in 2025 ~10% CAGR 2017 to 2025 Electronics TAM* US$ (Billions) 50 CAGR: ~10% 45 ~$43 40 35 30 ~$28 ~$32 25 20 ~$20 15 10 5 0 2017 2020 2022 2025 28 *) TAM (Total Addressable Market), CAGR (Compound Annual Growth Rate), **) Active Safety Market includes Radar (Front/side/rear), Forward looking Cameras (Mono/Stereo/Night Vision, Other (Advanced Driver Assist Electronic Control Unit, LiDAR).

Active Safety Sensor market Active Safety* US$ (millions) 25,000 CAGR: 23% 20,000 15,000 10,000 5,000 Night Vision ADAS ECU LiDAR Radar Systems Vision Systems 0 2017 2018 2019 2020 2025 *) Active Safety Market includes Radar (Front/side/rear), Forward looking Cameras (Mono/Stereo/Night Vision, Other (Advanced Driver Assist Electronic Control Unit, LiDAR).

Electronics Our Journey so far US$ (Millions) 2,500 Zenuity JV (2017) ANBS JV 2,000 Volvo IP License, MACOM 1,500 1,000,500 Sagem / Nokia JV s Visteon Restraint Electronics Visteon Radar, Aztyx/Hella Divest IP Telematics Tyco Radar,0 1997 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 17 (*) Active Safety includes: Radar, Vision (Forward looking Mono/Stereo/Night), Advanced Driver Assist Electronic Control Unit, Positioning Modules. 30

Autoliv Electronics Close to Customers Brake systems 22% Sales* $2,260 million Restraint Control 45% Active Safety 33% 7,100 EMPLOYEES in 10 countries 3,200 ENGINEERS of which 65% software 31 OEM CUSTOMERS and 7 new entry customers 20 FACILITIES * Last Twelve month sales June 31, 2017 31

Restrain Control and Sensing Active Safety and Braking Customer trust Safety Electronics Our Industry First s* Mono FIR Night Vision System Short & Medium Range Radar Sensor Fusion FIR / NIR Night Vision System AEB Radar and Mono Vision Regenerative Braking System 4 Corner Radar And Pre-triggering Passive Safety Long Range Radar (in alliance with Conti as the system supplier) Pedestrian Warning for Night Driving ADAS ECU Airbag ECUs (*) Including Acquisitions 1990 1995 2000 2005 2010 2015 with Dwell Enhancement Adaptive Restraint Controller & Remote Sensors Restraint Controller w Integrated Rollover Restraint Controller w Integrated IMU Pedestrian Detection System Off-road Protection with Belt Control Integrated Restraint Brake Control CV-Enhanced Front Crash Sensing 32

One of the world s broadest safety electronics product range Brake systems Restraint Control Active Safety

Electronics success factor: Technology, Innovation and Agility 34

The Road Towards Saving More Lives Some Pre-Requisites for Success Building Trust in Every Day Traffic USER EXPERIENCE MOBILITY ARTIFICIAL INTELLIGENCE QUALITY ROBUSTNESS INNOVATION 35

Robustness never more important Electronics products needs Robustness at least as much as Passive Products Rarely Constantly

Customer trust Our Passive Safety quality journey extends really well into Electronics Autoliv 2% All Safety Products Autoliv Electronics <1% Electronics ~ 170M recalled since 2010 ~ 32M recalled since 2010 37 Scope: Japan, Canada, US, China, South Korea, Australian, EU, UK, DE AB, SB, Electronics 2010-01-01 to 2017-06-31

Autoliv Electronics Market Shares 2016 RESTRAINT CONTROL SENSING 26% Autoliv ACTIVE SAFETY 18% Autoliv BRAKE CONTROL 5% Autoliv Others 38

Clusters for AD 39

Zenuity bringing Sensor Fusion, Decision and Control Cloud Actuator Decision & Control Vehicle Control Sensor Fusion Sensors Sensing Actuator System 40

ZENUITY the customers Exciting business model A M B I T I O U S & E M E R G I N G O E M S Ambition F A S T F O L L O W E R S I N N O V A T I O N L E A D E R S Impressed by feature offer Legislation positive for ADAS Total system key for AD ZENUITY media positioning F O L L O W E R S Internal capability SYSTEM OFFER Followers, Fast followers, and Ambitious / Emerging OEMs COMPONENTS OFFER Innovation Leaders 41

Technology Cooperations Recently announced LiDAR Volume production of automotive grade LiDAR systems COMPUTING PLATFORM Collaborate on AI computing platform DRIVER MONITORING Collaboration to develop driver monitoring systems CLOUD SOLUTIONS Zenuity are collaborating to develop Connected Cloud Comprehensive tech scouting through investment in Autotec 42

The developing eco-system Cloud Partner Sensors Decision & Control Sensor Fusion Actuators Partners Partner System Partner 43

Electronics Market Trends and Growth Drivers Increasing levels of software in the future are required to enhance safety Market Growth Content per Vehicle $ 250 Consumers are ready Safety Comfort and assistance Convenience (AD) Technology is ready 200 150 100 50 CPV AS* 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 *) Active Safety Market includes Forward looking Cameras (Mono/Stereo/Night Vision), Radar (Front/Side/Rear), Other (ADASA ECU, LiDAR), AEB (Autonomous Emergency Braking) 44

Electronics Active Safety Building for the long-term OUR FOOTPRINT WITHIN THE PYRAMID 2013 Automated Route (Trained) Autonomous Driving Automated Route (Destination) Recent JVs and M&A Partners In-house Automated Highway Driving Automated City Driving Automated Valet Parking Evasive Maneuvers AEB City AEB Urban AEB Ped./Cyclist Intersection Assist Overtaking Assist ACC / Queue Assist Lane Centering & Keeping Cross-Traffic Assist Real-Collision Mitigation Auto Parallel Parking Navigation Electronic Horizon Anti-Lock Brakes Stability Control HMI Electric Power Steering Blind Spot Monitoring Ped./Cyclist Detection Parking Aid Surround / Rear View Lane Departure Warning Forward Collision Warning Traffic Sign Recognition Brake Controls Steering Controls Propulsion Controls Driver Radar Cameras LIDAR Monitoring Ultrasonic Sensors Inertia Sensors MAPS V2X GPS 45

Electronics Active Safety Building for the long-term OUR FOOTPRINT WITHIN THE PYRAMID 2015 Automated Route (Trained) Autonomous Driving Automated Route (Destination) Recent JVs and M&A Partners In-house Automated Highway Driving Automated City Driving Automated Valet Parking Evasive Maneuvers AEB City AEB Urban AEB Ped./Cyclist Intersection Assist Overtaking Assist ACC / Queue Assist Lane Centering & Keeping Cross-Traffic Assist Real-Collision Mitigation Auto Parallel Parking Navigation Electronic Horizon Anti-Lock Brakes Stability Control HMI Electric Power Steering Blind Spot Monitoring Ped./Cyclist Detection Parking Aid Surround / Rear View Lane Departure Warning Forward Collision Warning Traffic Sign Recognition Brake Controls Steering Controls Propulsion Controls Driver Radar Cameras LIDAR Monitoring Ultrasonic Sensors Inertia Sensors MAPS V2X GPS 46

Electronics Active Safety Building for the long-term OUR FOOTPRINT WITHIN THE PYRAMID TODAY Automated Route (Trained) Autonomous Driving Automated Route (Destination) Recent JVs and M&A Partners In-house Automated Highway Driving Automated City Driving Automated Valet Parking Evasive Maneuvers AEB City AEB Urban AEB Ped./Cyclist Intersection Assist Overtaking Assist ACC / Queue Assist Lane Centering & Keeping Cross-Traffic Assist Real-Collision Mitigation Auto Parallel Parking Navigation Electronic Horizon Anti-Lock Brakes Stability Control HMI Electric Power Steering Blind Spot Monitoring Ped./Cyclist Detection Parking Aid Surround / Rear View Lane Departure Warning Forward Collision Warning Traffic Sign Recognition Brake Controls Steering Controls Propulsion Controls Driver Radar Cameras LIDAR Monitoring Ultrasonic Sensors Inertia Sensors MAPS V2X GPS 47

2013 2015 2017 48

Active Safety Customer snapshot Customer RADAR VISION* ADAS ECU LIDAR 2013 Represents >90% of global light vehicle production Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Total 5 5 5 3 1 1 1 1 1 0 0 0 Bid List Technical Qualification Awarded business 49 *Vision based on Autoliv developed algorithms,

Active Safety Customer snapshot Customer RADAR VISION* ADAS ECU LIDAR 2015 Represents >90% of global light vehicle production Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Total 10 5 4 4 1 1 3 2 2 0 0 0 Bid List Technical Qualification Awarded business 50 *Vision based on Autoliv developed algorithms,

Active Safety Customer snapshot Customer RADAR VISION* ADAS ECU LIDAR 2017 YTD Represents >90% of global light vehicle production Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Total 14 11 7 13 8 3 9 5 2 9 2 0 Bid List Technical Qualification Awarded business *Vision based on Autoliv developed algorithms, 51

Active Safety Order Intake Expect to increase sales beyond 2018 ALV Active Safety Order Intake* US$ (Millions) 400 200 Due to a significant broadening of the product offering and customer bid-list, order intake in 2016 increased substantially over previous years Active Safety order intake in 2016 of around $0.4B was almost twice as high as in any previous year Lead time from time of order to start of production is usually around 3 years Targeted 2017 orders towards end of the year 0 2012 2013 2014 2015 2016 LTM** * $ value represent expected average annualized sales from respective years order intake, Disclosure of orders will not be made regularly ** Last Twelve month order intake, as of August 31, 2017 52

Active Safety - Selected Customer Launches Vision Europe (SOP 2018) Europe (SOP 2019) Asia (SOP 2018) ADAS ECU Europe (SOP 2019) Night Vision North America (SOP 2020) Radar 24 GHz NB Europe (SOP 2020) Asia (SOP 2019) North America (SOP 2019) Radar 77GHz Europe (SOP 2019) Asia (SOP 2019) North America (SOP 2019) Advanced ADAS Software Europe (SOP 2019) 53

Awarded by Geelyannounced today 77GHz high-resolution radar systems Complements the Mono Vision camera award For autonomous driving 54

Active Safety Revenue by OEM group 2022 Sales LTM Sales 2020 Sales $0.75 B >$1 B ~$2 B 55

Autoliv Active Safety Sales Growth 2020 Sales target of >$1B Active Safety Sales US$ Billion High market growth CAGR* ~23% Strong product offering Strong bid-list presence ~2 2025 Ambition Active Safety sales ~$4B New order wins during 2016-17 0.49 0.61 0.74 0.75 >1 2014 2015 2016 LTM** 2020 2022 (** CAGR Compound Annual Grpwth Rate. (**) Last Twelve month sale as of June 30,2017. 56

Autoliv Electronics Sales Growth 2020 Sales target of ~$3B corresponds to a ~10% CAGR from 2017 Electronics Sales US$ Billion High market growth Strong product offering CAGR* ~10% CAGR* ~15% 2025 Ambition Electronics sales >$6B Strong bid-list presence New order wins during 2016-17 1.5 1.6 2.2 2.3 LVP* >2% ~3 ~4 Active Safety sales ~$4B 2014 2015 2016 LTM** 2020 2022 (*) LVP (Light Vehicle Production) according to IHS as of June 16, 2017, CAGR (Compound Annual Growth Rate). (**) Last Twelve month sales as of June 30, 2017. 57

Safety Electronics Moving on Technology 58

Different success factors shaping the future PASSIVE SAFETY ELECTRONICS MARKET & TECHNOLOGY KEY PRIORITIES CRITICAL COMPETENCES ATTRACT TALENT MANAGEMENT WORKING ENVIRONMENT KEY SELLING POINTS CAPITAL MARKETS ATTRACTION 59

Customers Owners & Creditors VA L U E Business Partners Family & Society Employees Creating more value Saving more lives 60