Financial Report January - March 2021

STOCKHOLM, April 23, 2021 /PRNewswire/ -- (NYSE: ALV) (SSE: ALIV.sdb)

Q1 2021: Good progress in sales, profits, balance sheet

Financial highlights Q1 2021

$2,242m net sales

17.9% organic sales growth*

10.6% operating margin

10.6% adjusted operating margin*

$1.79 EPS - an increase of 108%

$1.79 adjusted EPS* - an increase of 103%

Full year 2021 indications

Around 23% net sales growth

Around 20% organic sales growth

Around 10% adjusted operating margin

Key business developments in the first quarter of 2021

• Strong organic sales growth*, fueled by good performance in all regions. Sales increased organically by 17.9%, outperforming global LVP by more than 4pp (according to IHS Markit April 2021) despite adverse geographical mix effects as LVP grew strongly in lower CPV markets. All regions outperformed LVP by 6-23pp driven by launches and positive vehicle mix. Our order intake was in line with a year earlier.

• Strong improvement in operating income, driven by strong sales growth and continued cost control. Adjusted operating margin* improved by 3.2 pp to 10.6%. RoCE improved to 26.3%.

• Strong cash flow and strengthened balance sheet. Operating cash flow increased to $186m and free cash flow* grew to $93m. Net debt* declined substantially and our leverage ratio* of 1.4x is now inside our target range of 0.5x-1.5x.

*For non-U.S. GAAP measures see enclosed reconciliation tables. All change figures in this release compare to the same period of previous year except when stated otherwise.

Key Figures

(Dollars in millions, except per share data)	Q1 2021	Q1 2020	Change
Net sales	$2,242	$1,846	21%
Operating income	$237	$134