Autoliv, Inc. (NYSE:ALV) Q4 2022 Earnings Call Transcript

Mattias Holmberg: Perfect. Second question for me. On the buyback program, could you just remind us on how much is left of the program? And given that you’ve been quite conservative in utilizing the mandate so far, do you believe that you’re in a better position to become a bit more aggressive with the buybacks now?

Mikael Bratt: First of all, we are committed to our program that is $1.5 billion program. We have two remaining years, ’23 and ’24, in that program. And as we have said before, I mean, we’ll let you know regularly here when we have made purchases here. And of course, what we have said here is also that the timing and the volumes , of course, judged from time to time. But I feel confident on our way forward here with the track we have laid out here that we will be able to provide good shareholder returns there over time through the buyback program as well as the dividend. So, I can’t give you more details on the breakdown there, because that will become .

Operator: We are now going to proceed with our next question. And the questions come from the line of Vijay Rakesh from Mizuho Group. Please ask your question. Your line is open.

Vijay Rakesh: Hi, Mikael and Fredrik. Just a quick question. First, great — good quarter and a great guide for 2023. But on the ’23 guide, specifically on the 15% top-line, I know you’ve talked about market share and pricing and units, is there a way to parse what would be the approximate magnitudes of all those in that 15% — embedded in that 15%?

Fredrik Westin: Well, as I said, the order of magnitude is pricing first, then launches, market share number two and CPV number three. And CPV, we see around 3%, and then, light vehicle production, of course, around 3% as well. So that gives you the 15%. And then, I’ll leave it to you how you distribute the rest in between pricing and market share gains.

Vijay Rakesh: Okay. Sounds good. And then, on the — as you look at 2023 LVP, obviously, we had two years of benefiting from a pretty nice mix shift to premium vehicles. How do you see ’23? Do you see any mix — any mean reversion in that shift mix moving back to mid-end? I also saw you kind of showed much higher design win rate into EVs, but just trying to see how that changes as you look at 2023. Thanks.

Mikael Bratt: Thank you. No, we don’t expect any dramatic shifts in the distribution there between premium and low-end, as I said there. I think what we feel very positively about is how we continue to be a part of the transition over to electrical vehicles. I mean, we are, of course, working very closely with the pure EV makers here and also, let’s call it, the traditional OEMs that are getting more and more electrical EV platforms. So, we are well positioned in our order book here for the transition of the EVs, and we see that as a very positive momentum. And also, as you know, content in electrical vehicles is positive and it requires also, in many cases, more sophisticated products over time. So…

Vijay Rakesh: Thanks.

Mikael Bratt: Good development there.

Vijay Rakesh: Thank you.