Financial Report

October- December 2025

Stockholm, Sweden, January 30, 2026
(NYSE: ALV and SSE: ALIV.sdb)

Financial Report October - December 2025

Financial highlights Q4 2025

$2,817 million net sales

7.7% net sales increase

4.2% organic sales growth*

11.3% operating margin

12.0% adjusted operating margin*

$2.98 diluted EPS, 4% decrease

$3.19 adjusted diluted EPS*, 5% increase

Full year 2026 guidance

Around 0% organic sales growth

Around 1% positive FX effect on net sales

Around 10.5-11.0% adjusted operating margin

Around $1.2 billion operating cash flow

*For Non-GAAP measures see enclosed reconciliation tables.

(Dollars in millions, except per share data)

Q4 2025

Q4 2024

Change

FY 2025

FY 2024

Change

Net sales

$2,817

$2,616

7.7%

$10,815

$10,390

4.1%

Operating income

319

353

(9.6)%

1,088

979

11%

Adjusted operating income1)

337

349

(3.6)%

1,114

1,007

11%

Operating margin

11.3%

13.5%

(2.2)pp

10.1%

9.4%

0.6pp

Adjusted operating margin1)

12.0%

13.4%

(1.4)pp

10.3%

9.7%

0.6pp

Earnings per share - diluted

2.98

3.10

(3.8)%

9.55

8.04

19%

Adjusted earnings per share - diluted1)

3.19

3.05

4.7%

9.85

8.32

18%

Operating cash flow

544

420

30%

1,157

1,059

9.2%

Return on capital employed2)

30.3%

35.8%

(5.5)pp

26.4%

25.0%

1.5pp

Adjusted return on capital employed1,2)

31.8%

35.2%

(3.4)pp

27.0%

25.6%

1.5pp

1) Excluding effects from capacity alignments and antitrust related matters. Non-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

We reached new record high sales for a quarter and a full year, driven mainly by strong growth in India and with Chinese OEMs. Sales to COEMs grew by almost 40% in the quarter and by 23% for the full year. Our organic sales growth outperformed LVP in all regions in Q4. We recovered close to 100% of the tariff costs in Q4 and more than 80% for the full year.

In 2025, we reached several significant milestones: operating income exceeded $1 billion for the first time, earnings per share rose above $9 and we paid more than $3 per share in dividends. Our ability to continue delivering attractive shareholder returns remains strong. In the fourth quarter, we accelerated shareholder returns while also improving our leverage ratio - demonstrating both financial strength and disciplined capital management.

Our 2026 guidance, assuming 1% GLVP decline, is organic growth of around 0% and adjusted operating margin of around 10.5-11.0%. We expect Q1 2026 adjusted operating margin to be considerably weaker than Q1 2025, with improvements in the following three quarters.

Our solid position and strong performance in Asia are instrumental to our continued progress. I am confident that together with our demonstrated ability to improve performance in a low-growth environment, we have a solid foundation for continued attractive shareholder returns and a clear path towards our 12% adjusted operating margin target.

Our profit development and balance sheet control resulted in record high operating cash flow and free operating cash flow for both the quarter and the full year. For 2025, operating cash flow was 11% of sales and free operating cash flow was 7% of sales.

Over the past few years, we have taken significant steps to strengthen our position in China with COEMs through investments in footprint and engineering capacity, and by signing several strategic co-operation agreements. This is paying off, evidenced by the fact that 30% of our order intake in 2025 was from COEMs, which includes order intake for COEM production in Europe and the world's first foldable steering wheel for autonomous driving.

Financial Report October - December 2025

Full year 2026 Guidance

Organic sales growth

Around 0%

Adjusted operating margin1)

Around 10.5-11.0%

Operating cash flow2)

Around $1.2 billion

Capex, net, % of sales

Less than 5%

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

Full year 2026 Assumptions

LVP growth

Around 1% negative

FX impact on net sales

Around 1% positive

Tax rate3)

Around 28%

3) Excluding unusual tax items.

Financial Report October - December 2025

Financial Report October - December 2025

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.

Financial Report October - December 2025

Consolidated sales

Fourth quarter

Reported change

Currency

Organic

(Dollars in millions)

2025

2024

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$1,907

$1,760

8.4%

3.3%

5.1%

Seatbelt Products and Other2)

910

856

6.3%

4.0%

2.2%

Total

$2,817

$2,616

7.7%

3.5%

4.2%

Americas

$841

$786

6.9%

3.6%

3.3%

Europe

779

715

9.0%

8.9%

0.1%

China

645

587

9.8%

1.5%

8.3%

Asia excl. China

552

527

4.8%

(1.7)%

6.5%

Total

$2,817

$2,616

7.7%

3.5%

4.2%

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

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically* by 5.1% in the quarter. The largest contributors to the increase was steering wheels, side airbags, center airbags and driver airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 2.2% in the quarter. Sales increased organically in all regions, led by China, followed by Asia excluding China, Europe and Americas.

Sales by region

Our global organic sales* increased by 4.2% compared to the global LVP increase of 1.3% (according to S&P Global, January 2026). The relative performance was positively impacted mainly by product launches but also by tariff compensations of around 1pp. This was partially offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 1.5pp underperformance. Our organic sales growth* outperformed LVP growth by 5.3pp in China, by 4.8pp in Asia excluding China, 3.7pp in Americas and by 1.5pp in Europe.

LVP growth in China was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 3% while it increased by 6% for domestic OEMs. Autoliv's sales growth with domestic OEMs grew by around 40% while our sales with global OEMs decreased by 11%. We expect continued strong sales growth in China in 2026, driven by our performance with domestic OEMs.

Q4 2025 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

3.3%

0.1%

8.3%

6.5%

4.2%

Main growth drivers

Stellantis, Subaru, Mercedes

Volvo, Stellantis, Renault

Geely, EV COEM, Chery

Suzuki, Tata, Hyundai

Stellantis, Suzuki, Geely

Main decline drivers

Honda, EV GOEM, GM

JLR, VW, Hyundai

VW, Toyota, EV GOEM

Subaru, Honda, GM

Honda, VW, EV GOEM

Q4 2025

Americas

Europe

China

Asia excl. China

Global

LVP (Jan 2026)

(0.4)%

(1.4)%

3.0 %

1.7%

1.3%

LVP (Oct 2025)

0.0%

(1.8)%

(5.0)%

(1.6)%

(2.7)%

Financial Report October - December 2025

Consolidated sales

Full year

Reported change

Currency

Organic

(Dollars in millions)

2025

2024

(U.S. GAAP)

effects1)

change*

Airbags, Steering Wheels and Other2)

$7,302

$7,023

4.0%

0.6%

3.4%

Seatbelt Products and Other2)

3,513

3,367

4.3%

0.8%

3.5%

Total

$10,815

$10,390

4.1%

0.7%

3.4%

Americas

$3,480

$3,424

1.6%

(1.7)%

3.3%

Europe

3,116

2,946

5.8%

4.4%

1.4%

China

2,095

2,010

4.2%

0.2%

4.0%

Asia excl. China

2,124

2,010

5.7%

(0.2)%

5.9%

Total

$10,815

$10,390

4.1%

0.7%

3.4%

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

Sales by product - Airbags, Steering Wheels and Other

Sales for Airbags, Steering Wheels and Other grew organically* by 3.4% in the period. The largest contributor to the increase was side airbags and inflatable curtains, followed by steering wheels, center airbags and driver airbags.

Sales by product - Seatbelt Products and Other

Sales for Seatbelt Products and Other grew organically* by 3.5% in the period. Sales growth was mainly driven by Americas and Asia excluding China followed by Europe and China.

Sales by region

Our global organic sales* increased by 3.4% compared to the global LVP increase of 3.9% (according to S&P Global, January 2026). The relative performance was positively impacted by product launches and tariff compensations. This was more than offset by negative effects from the regional and model LVP mix development, which we estimate contributed to about 2.5pp underperformance. This was particularly accentuated in China. Our organic sales growth outperformed LVP growth by 3.4pp in Americas, by 3.3pp in Asia excluding China and by 2.4pp in Europe, while we underperformed by 6.1pp in China.

LVP growth in China in 2025 was driven by domestic OEMs with typically lower safety content. LVP for global OEMs declined by 1.3% while it increased by 16% for domestic OEMs. Autoliv's sales to domestic OEMs increased by 23% in 2025 while it decreased by 7.3% to global OEMs in China. We expect continued strong sales growth in China in 2026, driven by our performance with domestic OEMs.

FY 2025 organic growth*

Americas

Europe

China

Asia excl. China

Global

Autoliv

3.3%

1.4%

4.0%

5.9%

3.4%

Main growth drivers

Stellantis, Toyota, Ford

Stellantis, BMW, VW

Chery, Great Wall, Nio

Suzuki, Toyota, Hyundai

Stellantis, Suzuki, Toyota

Main decline drivers

EV GOEM, GM, Hyundai

EV GOEM, JLR, Hyundai

EV GOEM, VW, Mercedes

Mitsubishi, Honda, GM

EV GOEM, JLR, Lixiang

Full year 2025

Americas

Europe

China

Asia excl. China

Global

LVP (Jan 2026)

0.0%

(1.0)%

10.0 %

2.6%

3.9%

LVP (Jan 2025)

(0.4)%

(2.8)%

(0.4)%

1.1%

(0.5)%

Financial Report October - December 2025

Chery Fengyun

Mercedes GLB

Ford Bronco (China)

Nissan Leaf

Chevrolet Bolt EUV

ORA 5

Honda WR-V

Mercedes CLA

Buick GL8

Nissan Micra

Daihatsu Traz

Porsche Cayenne

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

Financial Report October - December 2025

Condensed Income Statement

Fourth quarter

Full year

(Dollars in millions, except per share data)

2025

2024

Change

2025

2024

Change

Net sales

$2,817

$2,616

7.7%

$10,815

$10,390

4.1%

Cost of sales

(2,245)

(2,065)

8.7%

(8,741)

(8,463)

3.3%

Gross profit

572

551

3.9%

2,074

1,927

7.6%

S,G&A

(144)

(132)

9.4%

(571)

(530)

7.6%

R,D&E, net

(94)

(74)

28%

(413)

(398)

3.8%

Other income (expense), net

(15)

8

n/a

(2)

(19)

(91)%

Operating income

319

353

(9.6)%

1,088

979

11%

Adjusted operating income1)

337

349

(3.6)%

1,114

1,007

11%

Financial and non-operating items, net

(26)

(32)

(17)%

(102)

(105)

(2.5)%

Income before taxes

293

321

(8.8)%

986

875

13%

Income taxes

(68)

(78)

(13)%

(250)

(227)

10%

Net income

$226

$243

(7.3)%

$736

$648

14%

Earnings per share - diluted2)

$2.98

$3.10

(3.8)%

$9.55

$8.04

19%

Adjusted earnings per share - diluted1,2)

$3.19

$3.05

4.7%

$9.85

$8.32

18%

Gross margin

20.3%

21.0%

(0.7)pp

19.2%

18.5%

0.6pp

S,G&A, in relation to sales

(5.1)%

(5.0)%

(0.1)pp

(5.3)%

(5.1)%

(0.2)pp

R,D&E, net in relation to sales

(3.3)%

(2.8)%

(0.5)pp

(3.8)%

(3.8)%

0.0pp

Operating margin

11.3%

13.5%

(2.2)pp

10.1%

9.4%

0.6pp

Adjusted operating margin1)

12.0%

13.4%

(1.4)pp

10.3%

9.7%

0.6pp

Tax Rate

23.0%

24.3%

(1.2)pp

25.4%

26.0%

(0.6)pp

Other data

No. of shares at period-end in millions2)

74.7

77.7

(3.9)%

74.7

77.7

(3.9)%

Weighted average no. of shares in millions, basic2)

75.4

78.3

(3.6)%

76.6

80.2

(4.4)%

Weighted average no. of shares in millions, diluted2)

75.7

78.5

(3.5)%

76.9

80.4

(4.3)%

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

Fourth quarter 2025 development

Gross profit increased by $22 million and gross margin decreased by 0.7pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for logistics and labor as well as positive effects from higher sales and lower material costs. This was partly offset by less out-of-period customer compensations, negative effects from higher production overhead costs due to less capitalization to inventories and higher depreciation.

S,G&A costs increased by $12 million compared to the prior year, mainly due to $9 million in higher costs for personnel driven by wage inflation, $9 million in higher costs for IT mainly due to increased license costs and $5 million in negative FX translation effects partly offset by lower costs for professional services. S,G&A costs in relation to sales increased from 5.0% to 5.1%.

R,D&E, net, costs increased by $20 million compared to the prior year, mainly due to $10 million in lower engineering income related to timing effects and $5 million in higher personnel costs due to wage inflation. R,D&E, net, in relation to sales increased from 2.8% to 3.3%.

Other income (expense), net, was negative $15 million, compared to positive $8 million in the same period last year. Almost all of the $15 million expense are costs for recycled accumulated currency translation differences related to the closure of our entities in the Netherlands and Italy.

Operating income decreased by $34 million compared to the prior year, due to the higher costs for R,D&E, net, Other income (expense) and S,G&A, partly offset by higher gross profit as outlined above.

Adjusted operating income* decreased by $13 million compared to the prior year, due to the higher costs for R,D&E, net, and S,G&A, partly offset by higher gross profit as outlined above.

Financial and non-operating items, net, was negative $26 million compared to negative $32 million a year earlier. The improvement comes from $5 million in lower costs for non-operating items.

Income before taxes decreased by $28 million compared to the prior year, mainly due to the lower operating income.

Tax rate was 23.0% compared to 24.3% the prior year. Discrete tax items, net, had a favorable impact of 6.2pp in the fourth quarter of 2025, while discrete tax items, net had a favorable impact of 8.4pp in the corresponding quarter last year.

Earnings per share, diluted decreased by $0.12 compared to the prior year. The main drivers were $0.37 from lower operating income, partly offset by $0.10 from taxes, $0.11 from lower number of outstanding shares, diluted, and $0.05 from financial items.

Financial Report October - December 2025

Full year 2025 development

Gross profit increased by $147 million, and gross margin increased by 0.6pp compared to the prior year. The drivers behind the gross profit improvement were mainly improved operational efficiency with lower costs for labor, logistics, premium freight and waste and scrap. We also had positive effects from the organic sales growth and lower material costs partly offset by negative effects from recall and warranty costs, un-recovered tariffs and higher depreciation.

S,G&A costs increased by $40 million compared to the prior year, mainly due to $20 million in increased personnel costs driven by wage inflation, $13 million in higher IT costs mainly due to higher license costs, $6 million in negative FX translation effects. S,G&A costs in relation to sales increased from 5.1% to 5.3%, a level that is considered to be slightly above normal.

R,D&E, net, costs increased by $15 million compared to the prior year, mainly due to $18 million in lower engineering income due to timing effects and $7 million in higher personnel costs due to wage inflation partly offset by $5 million from positive FX translation effects. R,D&E, net, in relation to sales was unchanged at 3.8%.

Other income (expense), net, was negative $2 million, compared to negative $19 million in the same period last year. The improvement compared to last year is mainly due to lower restructuring costs.

Operating income increased by $109 million compared to the prior year, due to the higher gross profit and the improvement in Other income (expense), partly offset by higher costs for S,G&A and R,D&E, net, as outlined above.

Adjusted operating income* increased by $108 million compared to the prior year, due to the higher gross profit and the improvement in Other income (expense), partly offset by higher costs for S,G&A, and R,D&E, net, as outlined above.

Financial and non-operating items, net, was negative $102 million compared to negative $105 million a year earlier. The improvement was mainly due to lower interest expense partly offset by lower interest income.

Income before taxes increased by $112 million compared to the prior year, mainly due to the higher operating income.

Tax rate was 25.4% compared to 26.0% in the prior year. Discrete tax items, net, had a favorable impact of 3.1pp in 2025 compared to 4.8pp favorable impact in 2024. The reported 25.4% tax rate as well as the underlying tax rate excluding discrete items was within our expected normal tax rate range of 25-30%.

Earnings per share, diluted increased by $1.52 compared to the prior year. The main drivers were $0.90 from higher operating income, $0.41 from lower number of outstanding shares, diluted, $0.17 from taxes and by $0.03 from financial items.

Financial Report October - December 2025

Selected Cash Flow items

Fourth quarter

Full year

(Dollars in millions)

2025

2024

Change

2025

2024

Change

Net income

$226

$243

(7.3)%

$736

$648

14%

Depreciation and amortization

108

98

10%

407

387

5.2%

Other non-cash adjustments, net

5

(29)

n/a

26

(29)

n/a

Changes in operating working capital

205

107

91%

(12)

53

n/a

Operating cash flow

544

420

30%

1,157

1,059

9.2%

Capital expenditure, net1)

(110)

(132)

(17)%

(423)

(563)

(25)%

Free operating cash flow2)

$434

$288

51%

$734

$497

48%

Cash conversion3)

192%

118%

74pp

100%

77%

23pp

Shareholder returns

- Dividends paid

(66)

(55)

20%

(238)

(219)

9.0%

- Share repurchases

(150)

(102)

47%

(351)

(552)

(36)%

Cash dividend paid per share

$(0.87)

$(0.70)

23%

$(3.12)

$(2.74)

14%

Capital expenditures, net in relation to sales

3.9%

5.0%

(1.1)pp

3.9%

5.4%

(1.5)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-GAAP measure. See enclosed reconciliation table. 3) Free operating cash flow relative to Net income. Non-GAAP measure. See reconciliation table.

Selected Balance Sheet items

Fourth quarter

(Dollars in millions)

2025

2024

Change

Trade working capital1)

$1,221

$1,115

9.5%

Trade working capital in relation to sales2)

10.8%

10.7%

0.2pp

- Receivables outstanding in relation to sales3)

19.8%

19.0%

0.8pp

- Inventory outstanding in relation to sales4)

8.8%

8.8%

0.0pp

- Payables outstanding in relation to sales5)

17.8%

17.2%

0.6pp

Cash & cash equivalents

604

330

83%

Gross Debt6)

2,153

1,909

13%

Net Debt7)

1,566

1,554

0.8%

Capital employed8)

4,148

3,840

8.0%

Return on capital employed9)

30.3%

35.8%

(5.5)pp

Total equity

2,582

2,285

13%

Return on total equity10)

35.1%

42.5%

(7.4)pp

Leverage ratio11)

1.1

1.2

(0.1)

1) Outstanding receivables and outstanding inventory less outstanding payables. Non-GAAP measure, see reconciliation table. 2) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized quarterly sales. Non-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-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-GAAP measure. See reconciliation table.

Fourth quarter 2025 development

Changes in operating working capital impacted operating cash flow by $205 million positive compared to an impact of $107 million positive in the prior year. The $205 million positive impact mainly comes from $170 million in lower receivables and other assets, which mainly is a consequence of lower sales level towards the end of the quarter, and also from $44 million improvement in inventories mainly due to lower sales level towards the end of the quarter.

Operating cash flow increased by $124 million to $544 million compared to the prior year, mainly because of more favorable effects from changes in operating working capital, as outlined above, and non-cash adjustments, mainly positive effects from deferred income taxes, pension liabilities, long term liabilities and other non-cash items, partly offset by lower net income.

Capital expenditure, net, decreased by $22 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.0% a year earlier. The lower level of capital expenditure, net is mainly related to the lower activity level of footprint optimization and less capacity expansion.

Free operating cash flow* was positive $434 million compared to positive $288 million in the prior year. The increase was due to the higher operating cash flow and lower capital expenditure, net, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 192% in the quarter compared to 118% a year earlier. The increase occurred because free operating cash flow increased while net income decreased.

Financial Report October - December 2025

Trade working capital* increased by $106 million compared to the prior year, where the main drivers were $242 million in higher accounts receivables, $208 million in higher accounts payable and $72 million in higher inventories. The increase in trade working capital is mainly due to increased sales. In relation to sales, trade working capital increased slightly from 10.7% to 10.8%.

Net debt* was $1,566 million as of December 31, 2025, which was $12 million higher than a year earlier, mainly due to that in the last twelve months, free operating cash flow was lower than dividends paid, share repurchases and negative effect of exchange rate changes on cash.

Total equity as of December 31, 2025, increased by $297 million compared to December 31, 2024. This was mainly due to net income of $736 million and $137 million in positive currency translation effects, partly offset by $355 million in share repurchases, including taxes and $239 million in dividend payments.

Leverage ratio*: On December 31, 2025, the Company had a leverage ratio of 1.1x compared to 1.2x on December 31, 2024, as the 12 months trailing adjusted EBITDA* increased by $127 million while net debt* per the policy increased by $28 million. Our target is to have a leverage ratio not higher than 1.5x.

Full year 2025 development

Operating cash flow increased by $98 million to $1,157 million compared to the prior year, mainly due to higher net income and more positive effects of non-cash items mainly effects from deferred income taxes, pension liabilities, long term liabilities and other non-cash items, partly offset by less favorable effects from changes in operating working capital.

Capital expenditure, net, decreased by $140 million compared to the prior year. The level of capital expenditure, net, in relation to sales declined to 3.9% versus 5.4% a year earlier. The lower level of capital expenditure, net is mainly related to the finalizing of several footprint optimization projects in Europe and Americas and less capacity expansion projects, especially in Asia.

Free operating cash flow* was positive $734 million compared to positive $497 million in the prior year. The increase was due to the lower capital expenditure, net and the higher operating cash flow, as outlined above.

Cash conversion* defined as free operating cash flow* in relation to net income, was 100% for the period, compared to 77% in the prior year. The increase occurred because free operating cash flow growth was higher than net income growth.

Dec 31

Sep 30

Dec 31

2025

2025

2024

Total headcount

64,300

65,200

65,200

Whereof: Direct headcount in manufacturing

47,300

47,900

48,000

Indirect headcount

17,000

17,300

17,200

Temporary personnel

10%

9%

9%

As of December 31, 2025, total headcount (Full Time Equivalent) decreased by around 900, or 1.4%, compared to a year earlier, despite that organic sales* increased by 4.1% and that we in-sourced about 250 FTEs (mainly indirect) in Tunisia and expansions in India and Vietnam. The indirect workforce decreased by around 200, or 1.2%, mainly reflecting our structural reduction initiatives, partly offset by the above mentioned in-sourcing. The direct workforce decreased by approximately 700, or 1.4%. The decrease was supported by an improvement in customer call-off accuracy which enabled us to accelerate operating efficiency improvements.

Compared to September 30, 2025, total headcount (Full Time Equivalent) decreased by around 900, or 1.4%. Indirect headcount decreased by around 300, while direct headcount decreased by approximately 600.

Financial Report October - December 2025

Next Report

Autoliv intends to publish the quarterly earnings report for the first quarter of 2026 on Friday, April 17, 2026.

Footnotes

*Non-GAAP measures, see enclosed reconciliation tables.

Inquiries: Investors and Analysts

Anders Trapp

Vice President Investor Relations

Tel +46 (0)709 578 171

Henrik Kaar

Director Investor Relations

Tel +46 (0)709 578 114

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 January 30, 2026.

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 October 2025 and January 2026. 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.

Financial Report October - December 2025

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 global and regional economic conditions, including the impact of 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; potential changes to beneficial free trade agreements and regulations, such as the United States-Mexico-Canada Agreement; changes in geopolitical and other economic and political conditions or developments, including inflation, changes trade policies, tariff regimes, and other developments in and by countries in which we do business that could materially impact supply chains, margins, access to capital, or overall business performance; political stability or geopolitical conflicts; changes in general industry or market conditions, including regional economic 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; volatility or increases in raw material, fuel, and energy costs; changes in consumer and customer preferences for end products; loss of customers or sales; legislative or regulatory changes; 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, including inflation and tariff compensations; 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 or results of tax audits by governmental authorities and changes in our effective tax rate; dependence on key personnel; our ability to meet our sustainability targets, goals and commitments; dependence on and relationships with customers and suppliers; the conditions necessary to hit our 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.

Financial Report October - December 2025

Fourth quarter

Full year

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

2025

2024

2025

2024

Airbags, Steering Wheels and Other1)

$1,907

$1,760

$7,302

$7,023

Seatbelt products and Other1)

910

856

3,513

3,367

Total net sales

2,817

2,616

10,815

10,390

Cost of sales

(2,245)

(2,065)

(8,741)

(8,463)

Gross profit

572

551

2,074

1,927

Selling, general & administrative expenses

(144)

(132)

(571)

(530)

Research, development & engineering expenses, net

(94)

(74)

(413)

(398)

Other income (expense), net

(15)

8

(2)

(19)

Operating income

319

353

1,088

979

Income from equity method investments

2

2

6

7

Interest income

3

3

10

13

Interest expense

(26)

(27)

(103)

(108)

Other non-operating items, net

(5)

(9)

(15)

(16)

Income before income taxes

293

321

986

875

Income taxes

(68)

(78)

(250)

(227)

Net income

226

243

736

648

Less: Net income attributable to non-controlling interest

(0)

0

1

1

Net income attributable to controlling interest

$226

$243

$735

$646

Earnings per share - diluted

$2.98

$3.10

$9.55

$8.04

1) Including Corporate sales.

Financial Report October - December 2025

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions, unaudited)

2025

2025

2025

2025

2024

Assets

Cash & cash equivalents

$604

$225

$237

$322

$330

Receivables, net

2,236

2,357

2,341

2,205

1,993

Inventories, net

992

1,036

957

913

921

Prepaid expenses

212

226

249

184

167

Other current assets

57

102

146

75

72

Total current assets

4,101

3,946

3,929

3,699

3,483

Property, plant & equipment, net

2,419

2,402

2,399

2,286

2,239

Operating leases right-of-use assets

171

167

171

168

158

Goodwill and intangible assets, net

1,386

1,387

1,389

1,380

1,375

Investments and other non-current assets

568

561

588

581

548

Total assets

8,644

8,463

8,476

8,114

7,804

Liabilities and equity

Short-term debt

419

654

679

540

387

Accounts payable

2,007

1,889

1,945

1,839

1,799

Accrued liabilities

1,050

1,172

1,138

1,053

1,056

Operating lease liabilities - current

43

44

44

42

41

Other current liabilities

404

383

430

327

351

Total current liabilities

3,923

4,141

4,235

3,800

3,633

Long-term debt

1,734

1,374

1,372

1,565

1,522

Pension liability

169

167

167

163

153

Operating lease liabilities - non-current

122

118

121

120

118

Other non-current liabilities

113

105

102

103

92

Total non-current liabilities

2,138

1,763

1,762

1,952

1,885

Total parent shareholders' equity

2,572

2,549

2,469

2,351

2,276

Non-controlling interest

10

10

11

10

10

Total equity

2,582

2,559

2,480

2,361

2,285

Total liabilities and equity

$8,644

$8,463

$8,476

$8,114

$7,804

Financial Report October - December 2025

Fourth quarter

Full year

(Dollars in millions, unaudited)

2025

2024

2025

2024

Net income

$226

$243

$736

$648

Depreciation and amortization

108

98

407

387

Gain on divestiture of property

(0)

-

(6)

-

Other non-cash adjustments, net

6

(29)

32

(29)

Net change in operating working capital:

Receivables

73

50

(98)

47

Other current assets

97

58

(26)

67

Inventories

44

26

(8)

28

Accounts payable

109

(7)

119

(83)

Accrued expenses

(137)

(65)

(30)

(12)

Income taxes

19

45

30

6

Net cash provided by operating activities

544

420

1,157

1,059

Expenditures for property, plant and equipment

(118)

(139)

(441)

(579)

Proceeds from sale of property, plant and equipment

8

7

18

17

Net cash used in investing activities

(110)

(132)

(423)

(563)

Net (decrease) increase in short term debt

(237)

(211)

11

(126)

Decrease in long-term debt

-

(54)

(311)

(306)

Increase in long-term debt

399

-

521

526

Dividends paid

(66)

(55)

(238)

(219)

Share repurchases

(150)

(102)

(351)

(552)

Common stock options exercised

-

0

0

1

Dividend paid to non-controlling interests

-

-

(1)

(5)

Net cash used in financing activities

(53)

(422)

(369)

(680)

Effect of exchange rate changes on cash

(2)

49

(90)

16

Increase (decrease) in cash and cash equivalents

379

(84)

274

(168)

Cash and cash equivalents at period-start

225

415

330

498

Cash and cash equivalents at period-end

$604

$330

$604

$330

Financial Report October - December 2025

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2025

2025

2025

2025

2024

Total current assets

$4,101

$3,946

$3,929

$3,699

$3,483

Total current liabilities

(3,923)

(4,141)

(4,235)

(3,800)

(3,633)

Working capital (GAAP)

178

(195)

(305)

(101)

(150)

Less: Cash and cash equivalents

(604)

(225)

(237)

(322)

(330)

Prepaid expenses

(212)

(226)

(249)

(184)

(167)

Other current assets

(57)

(102)

(146)

(75)

(72)

Less: Short-term debt

419

654

679

540

387

Accrued expenses

1,050

1,172

1,138

1,053

1,056

Operating lease liabilities - current

43

44

44

42

41

Other current liabilities

404

383

430

327

351

Trade working capital (Non-GAAP)

$1,221

$1,504

$1,354

$1,279

$1,115

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2025

2025

2025

2025

2024

Receivables, net

$2,236

$2,357

$2,341

$2,205

$1,993

Inventories, net

992

1,036

957

913

921

Accounts payable

(2,007)

(1,889)

(1,945)

(1,839)

(1,799)

Trade working capital (Non-GAAP)

$1,221

$1,504

$1,354

$1,279

$1,115

Quarterly sales

$2,817

$2,706

$2,714

$2,578

$2,616

Annualized quarterly sales1)

11,269

10,822

10,857

10,312

10,463

Trade working capital in relation to annualized quarterly sales

10.8%

13.9%

12.5%

12.4%

10.7%

1) Calculated as the current quarterly sales multiplied by four.

Financial Report October - December 2025

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 (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-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-GAAP)

$1,232

$1,183

$1,332

$1,366

Quarterly sales

$2,751

$2,335

$2,119

$2,517

Annualized quarterly sales1)

11,006

9,340

8,476

10,067

Trade working capital in relation to annualized quarterly sales

11.2%

12.7%

15.7%

13.6%

1) Calculated as the fourth quarterly sales multiplied by four.

Financial Report October - December 2025

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

(Dollars in millions)

2025

2025

2025

2025

2024

Short-term debt

$419

$654

$679

$540

$387

Long-term debt

1,734

1,374

1,372

1,565

1,522

Total debt (GAAP)

2,153

2,027

2,051

2,105

1,909

Cash & cash equivalents

(604)

(225)

(237)

(322)

(330)

Debt issuance cost/Debt-related derivatives, net

17

(30)

(62)

4

(24)

Net debt (Non-GAAP)

$1,566

$1,772

$1,752

$1,787

$1,554

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 (GAAP)

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 (Non-GAAP)

$1,367

$1,184

$1,052

$1,214

Dec 31

Sep 30

Dec 31

(Dollars in millions)

2025

2025

2024

Net debt1) (Non-GAAP)

$1,566

$1,772

$1,554

Pension liabilities

169

167

153

Net debt per the Policy (Non-GAAP)

$1,736

$1,939

$1,708

Net income2)

$736

$754

$648

Income taxes2)

250

261

227

Interest expense, net2, 3)

93

94

95

Other non-operating items, net2)

15

20

16

Income from equity method investments2)

(6)

(6)

(7)

Depreciation and amortization of intangibles2)

407

397

387

Capacity alignments2)

23

(1)

19

Antitrust related items2)

3

5

8

Other items2)

-

-

0

EBITDA per the Policy (Adjusted EBITDA) (Non-GAAP)

$1,521

$1,524

$1,394

Leverage ratio (Non-GAAP)

1.1

1.3

1.2

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.

Financial Report October - December 2025

Fourth quarter

Full year

(Dollars in millions)

2025

2024

2025

2024

Net income

$226

$243

$736

$648

Depreciation and amortization

108

98

407

387

Gain on divestiture of property

(0)

-

(6)

-

Other, net

6

(29)

32

(29)

Changes in operating working capital, net

205

107

(12)

53

Operating cash flow (GAAP)

544

420

1,157

1,059

Expenditures for property, plant and equipment

(118)

(139)

(441)

(579)

Proceeds from sale of property, plant and equipment

8

7

18

17

Capital expenditure, net1)

(110)

(132)

(423)

(563)

Free operating cash flow2) (Non-GAAP)

$434

$288

$734

$497

Cash conversion3) (Non-GAAP)

192%

118%

100%

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 (GAAP)

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) (Non-GAAP)

$414

$228

$300

$509

Cash conversion3) (Non-GAAP)

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.

Financial Report October - December 2025

Fourth quarter

Full year

(Dollars in millions)

2025

2024

2025

2024

Operating income (GAAP)

$319

$353

$1,088

$979

Non-GAAP adjustments:

Less: Capacity alignments

17

(6)

23

19

Less: Antitrust related items

0

2

3

8

Total non-GAAP adjustments to operating income

17

(4)

26

27

Adjusted Operating income (Non-GAAP)

$337

$349

$1,114

$1,007

(Dollars in millions)

2023

2022

2021

2020

Operating income (GAAP)

$690

$659

$675

$382

Non-GAAP adjustments:

Less: Capacity alignments1)

218

(61)

8

99

Less: The Andrews litigation settlement

8

-

-

-

Less: Antitrust related items

4

-

-

1

Total non-GAAP adjustments to operating income

230

(61)

8

99

Adjusted Operating income (Non-GAAP)

$920

$598

$683

$482

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

Financial Report October - December 2025

Fourth quarter

Full year

2025

2024

2025

2024

Operating margin (GAAP)

11.3%

13.5%

10.1%

9.4%

Non-GAAP adjustments:

Less: Capacity alignments

0.6%

(0.2)%

0.2%

0.2%

Less: Antitrust related items

0.0%

0.1%

0.0%

0.1%

Total non-GAAP adjustments to operating margin

0.6%

(0.2)%

0.2%

0.3%

Adjusted Operating margin (Non-GAAP)

12.0%

13.4%

10.3%

9.7%

2023

2022

2021

2020

Operating margin (GAAP)

6.6%

7.5%

8.2%

5.1%

Non-GAAP adjustments:

Less: Capacity alignments

2.1%

(0.7)%

0.1%

1.4%

Less: The Andrews litigation settlement

0.1%

-

-

-

Less: Antitrust related items

0.0%

-

-

0.0%

Total non-GAAP adjustments to operating margin

2.2%

(0.7)%

0.1%

1.4%

Adjusted Operating margin (Non-GAAP)

8.8%

6.8%

8.3%

6.5%

Fourth quarter

Full year

(Dollars in millions)

2025

2024

2025

2024

Income before income taxes (GAAP)

$293

$321

$986

$875

Non-GAAP adjustments:

Less: Capacity alignments

17

(6)

23

19

Less: Antitrust related items

0

2

3

8

Total non-GAAP adjustments to Income before income taxes

17

(4)

26

27

Adjusted Income before income taxes (Non-GAAP)

$310

$317

$1,012

$902

Fourth quarter

Full year

(Dollars in millions)

2025

2024

2025

2024

Net income (GAAP)

$226

$243

$736

$648

Non-GAAP adjustments:

Less: Capacity alignments

17

(6)

23

19

Less: Antitrust related items

0

2

3

8

Less: Tax on non-GAAP adjustments

(1)

0

(3)

(5)

Total non-GAAP adjustments to Net income

16

(4)

23

22

Adjusted Net income (Non-GAAP)

$242

$240

$759

$670

Financial Report October - December 2025

Fourth quarter

Full year

(Dollars in millions)

2025

2024

2025

2024

Net income attributable to controlling interest (GAAP)

$226

$243

$735

$646

Non-GAAP adjustments:

Less: Capacity alignments

17

(6)

23

19

Less: Antitrust related items

0

2

3

8

Less: Tax on non-GAAP adjustments

(1)

0

(3)

(5)

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

16

(4)

23

22

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

$242

$239

$758

$668

Fourth quarter

Full year

2025

2024

2025

2024

Earnings per share - diluted (GAAP)

$2.98

$3.10

$9.55

$8.04

Non-GAAP adjustments:

Less: Capacity alignments

0.23

(0.08)

0.29

0.24

Less: Antitrust related items

0.00

0.03

0.04

0.10

Less: Tax on non-GAAP adjustments

(0.01)

0.00

(0.04)

(0.06)

Total non-GAAP adjustments to Earnings per share - diluted

0.22

(0.05)

0.30

0.28

Adjusted Earnings per share - diluted (Non-GAAP)

$3.19

$3.05

$9.85

$8.32

Weighted average number of shares outstanding - diluted

75.7

78.5

76.9

80.4

Fourth quarter

Full year

2025

2024

2025

2024

Return on capital employed1) (GAAP)

30.3%

35.8%

26.4%

25.0%

Non-GAAP adjustments:

Less: Capacity alignments

1.5%

(1.0)%

0.5%

0.4%

Less: Antitrust related items

0.0%

0.4%

0.1%

0.2%

Total non-GAAP adjustments to Return on capital employed1)

1.5%

(0.6)%

0.6%

0.6%

Adjusted Return on capital employed1) (Non-GAAP)

31.8%

35.2%

27.0%

25.6%

Annualized adjustment2) on Return on capital employed1)

$69

$(16)

$26

$27

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.

Financial Report October - December 2025

Fourth quarter

Full year

2025

2024

2025

2024

Return on total equity1) (GAAP)

35.1%

42.5%

30.0%

27.2%

Non-GAAP adjustments:

Less: Capacity alignments

2.4%

(1.9)%

0.8%

0.7%

Less: Antitrust related items

0.0%

0.7%

0.1%

0.3%

Less: Tax on non-GAAP adjustments

(0.1)%

0.1%

(0.1)%

(0.2)%

Total non-GAAP adjustments to Return on total equity1)

2.3%

(1.1)%

0.9%

0.8%

Adjusted Return on total equity1) (Non-GAAP)

37.4%

41.4%

30.8%

28.0%

Annualized adjustment2) on Return on total equity1)

$65

$(15)

$23

$22

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.

Financial Report October - December 2025

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

2025

2024

2023

2022

2021

Sales and Income

Net sales

$10,815

$10,390

$10,475

$8,842

$8,230

Airbags, Steering Wheels and Other1)

7,302

7,023

7,055

5,807

5,380

Seatbelt Products and Other1)

3,513

3,367

3,420

3,035

2,850

Operating income

1,088

979

690

659

675

Net income attributable to controlling interest

735

646

488

423

435

Earnings per share - basic2)

9.59

8.06

5.74

4.86

4.97

Earnings per share - diluted2)

9.55

8.04

5.72

4.85

4.96

Gross margin3)

19.2%

18.5%

17.4%

15.8%

18.4%

S,G&A in relation to sales

(5.3)%

(5.1)%

(4.8)%

(4.9)%

(5.3)%

R,D&E net in relation to sales

(3.8)%

(3.8)%

(4.1)%

(4.4)%

(4.7)%

Operating margin4)

10.1%

9.4%

6.6%

7.5%

8.2%

Adjusted operating margin5,6)

10.3%

9.7%

8.8%

6.8%

8.3%

Balance Sheet

Trade working capital6,7)

1,221

1,115

1,232

1,183

1,332

Trade working capital in relation to sales8)

10.8%

10.7%

11.2%

12.7%

15.7%

Receivables outstanding in relation to sales9)

19.8%

19.0%

20.0%

20.4%

20.0%

Inventory outstanding in relation to sales10)

8.8%

8.8%

9.2%

10.4%

9.2%

Payables outstanding in relation to sales11)

17.8%

17.2%

18.0%

18.1%

13.5%

Total equity

2,582

2,285

2,570

2,626

2,648

Total parent shareholders' equity per share

34.43

29.26

30.93

30.30

30.10

Current assets excluding cash

3,497

3,153

3,475

3,119

2,705

Property, plant and equipment, net

2,419

2,239

2,192

1,960

1,855

Goodwill and Intangible assets

1,386

1,375

1,385

1,382

1,395

Capital employed

4,148

3,840

3,937

3,810

3,700

Net debt6)

1,566

1,554

1,367

1,184

1,052

Total assets

8,644

7,804

8,332

7,717

7,537

Long-term debt

1,734

1,522

1,324

1,054

1,662

Return on capital employed12)

26.4%

25.0%

17.7%

17.5%

18.3%

Return on total equity13)

30.0%

27.2%

19.0%

16.3%

17.1%

Total equity ratio

30%

29%

31%

34%

35%

Cash flow and other data

Operating cash flow

1,157

1,059

982

713

754

Depreciation and amortization

407

387

378

363

394

Capital expenditures, net

423

563

569

485

454

Capital expenditures, net in relation to sales

3.9%

5.4%

5.4%

5.5%

5.5%

Free operating cash flow6,14)

734

497

414

228

300

Cash conversion6,15)

100%

77%

85%

54%

69%

Direct shareholder return16)

590

771

577

339

165

Cash dividends paid per share

3.12

2.74

2.66

2.58

1.88

Number of shares outstanding (millions)17)

74.7

77.7

82.6

86.2

87.5

Number of employees, December 31

58,000

59,500

62,900

61,700

55,900

1) Including Corporate sales 2) Net of treasury shares. 3) Gross profit relative to sales. 4) Operating income relative to sales. 5) Excluding effects from capacity alignments, antitrust related matters and for FY 2023 the Andrews litigation settlement. 6) Non-GAAP measure, for reconciliation see tables above. 7) Outstanding receivables and outstanding inventory less outstanding payables. 8) Outstanding receivables and outstanding inventory less outstanding payables relative to annualized fourth quarter sales. 9) Outstanding receivables relative to annualized fourth quarter sales. 10)Outstanding inventory relative to annualized fourth quarter sales. 11) Outstanding payables relative to annualized fourth quarter sales. 12) Operating income and income from equity method investments, relative to average capital employed. 13) Income relative to total equity. 14) Operating cash flow less Capital expenditures, net. 15) Free operating cash flow relative to Net income. 16) Dividends paid and Shares repurchased.
17) At year end, excluding dilution and net of treasury shares.