Allianz Annual Report 2023

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FY2023 Annual Report · Allianz

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Annual and
Sustainability
Report 2023

CONTENT

Autoliv at a Glance
Year in Brief

CEO Message – Transforming with a Changing Industry

70 Years of Saving More Lives

Vision / Mission / Key Behaviors

Financial Summary 2023

Financial and Sustainability Targets

Strategy for Change
Customer Focus

Strengthening Our Position in a Changing Market

Customer Collaboration

Competitive Products and Solutions

Products for Saving More Lives
Innovation as an Enabler to Save More Lives

Efficient Value Delivery

Operational Excellence

Value to Customers

The Autoliv Way

Outstanding People Embracing Change

Sustainability
A Driving Force in Sustainable Mobility

Sustainability Materiality Assessment

Sustainability Governance

Road Safety – a Global Challenge

Climate and Circularity

TCFD Disclosure

A Safe and Inclusive Workplace

Responsible Business

Sustainability Appendix

The Autoliv Share
Creating Shareholder Value

Board and Management
Board of Directors

Executive Management Team

Contacts
Multi-Year Financial Summary

22
24

Forward-Looking Statements
Except for historical information, matters discussed in the annual report are forward-looking statements and are based on
management’s estimates, assumptions and projections. Actual results could vary materially. Please review the “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in the Company’s
annual report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent SEC filings, for factors that could
affect the Company’s performance and cause results to differ materially from management’s expectations. The information
in this report reflected management’s estimates, assumptions and projections as of January 26, 2024. Autoliv has not made
updates since then and makes no representation, express or implied, that the information is still current or complete. The
Company is under no obligation to update any part of this document.

This report includes content supplied by S&P Global. Copyright © Light Vehicle Production Forecast, January 2024. All rights
reserved.

Cover: One of our latest steering wheels include an interactive screen that enhances the driving experience. The display is
integrated into the steering wheel, and feature mini-LED and multi-touch technologies to enable easier interactions, making
driving safer.

Location and Capabilities

Headquartered in Stockholm, Sweden. Incorporated in Delaware, United States

Location 3)

Headcount

Tech center

Production

Sales
support

Other 2)

BRAZIL1)

CANADA

CHINA1)

ESTONIA1)

FRANCE

GERMANY

HUNGARY1)

INDIA1)

INDONESIA1)

JAPAN

MALAYSIA1)

1,159

448

9,466

895

1,669

783

1,680

4,178

193

2,184

MEXICO1)

15,615

PHILIPPINES1)

POLAND1)

1,291

2,343

ROMANIA1)

10,010

SOUTH AFRICA1)

SOUTH KOREA

SPAIN

SWEDEN

SWITZERLAND

THAILAND1)

TUNISIA1)

TURKEY1)

234

480

421

538

4,516

4,397

3,055



UNITED KINGDOM

250

USA

4,321



 



1) Defined as a best-cost country. 2) Includes weaving and sewing of textile cushions and seatbelt webbing, inflators, and components for airbag
and seatbelt products. 3) Our operations in Russia are currently suspended and offices in Italy and the Netherlands are closing in 2024.

Headquartered in Stockholm, Sweden. Incorporated in Delaware, United States

Location 3)

Headcount

Tech center

Production

Sales

support

Other 2)

BRAZIL1)

CANADA

CHINA1)

ESTONIA1)

FRANCE

GERMANY

HUNGARY1)

INDIA1)

INDONESIA1)

JAPAN

MALAYSIA1)

PHILIPPINES1)

POLAND1)

SOUTH AFRICA1)

SOUTH KOREA

SPAIN

SWEDEN

SWITZERLAND

THAILAND1)

TUNISIA1)

TURKEY1)

1,159

448

9,466

895

1,669

783

1,680

4,178

193

2,184

1,291

2,343

234

480

421

538

4,516

4,397

3,055

MEXICO1)

15,615

ROMANIA1)

10,010



UNITED KINGDOM

250

USA

4,321



 



AUTOLIV AT A GLANCE
Year in Brief

The World’s
Largest Automotive
Safety Supplier

Share of total sales by division

E U R O P E

27%

A M E R I C A S

34%

C H I N A

20%

A S I A

19%

A utoliv, Inc. (NYSE: ALV; Nasdaq Stockholm:

ALIV.sdb) is the worldwide leader in automotive
safety systems. At Autoliv, we challenge and
redefine the standards of mobility safety to sus-
tainably deliver leading solutions. We develop, manufacture
and market protective systems, such as airbags, seatbelts,
and steering wheels, for all major automotive manufactur-
ers in the world. In 2023, our products saved 35,000 lives
and reduced more than 450,000 injuries.

A major focus area for us is new safety solutions driven
by the evolution of the global automotive market trends. To
extend into new market areas beyond light vehicles and oc-
cupant safety, Autoliv’s Mobility Safety Solutions (MSS)

complements our core business by pursuing new areas for
profitable growth in adjacent markets. Our focus is on areas
where we can leverage our technological know-how, opera-
tional capabilities, and global footprint. In 2023, we focused
on commercial vehicles, electrical safety solutions like py-
rotechnical safety switches and safety products for motor-
cycles and bikes.

The rise of electric vehicles (EVs) and connected cars in
the global market is one of the trends that are currently trans-
forming the automotive industry. We are well-positioned to
sustainably adapt to the business opportunities that come
with these changes.

Key Figures
2023

$10.5b

net sales

8.8%

adj. operating margin*

$982m

operating cash flow

23%

renewable electricity use

70,300

associates worldwide

45%

market share

29%

improvement in GHG
emissions intensity

$577m

shareholder returns

*) Non-U.S. GAAP Measure. See "Non-U.S. GAAP Performance Measures" section in the 10-K filed with the SEC.

35,000

Lives Saved

Colleagues at Autoliv in Michigan U.S. celebrating Autoliv´s 70 years anniversary.

AUTOLIV AT A GLANCE
CEO Message

Transforming
with a Changing
Industry

The world is changing at an accelerating pace and Autoliv launched a number of strategic
initiatives in 2023 to meet the needs of its customers, to enhance shareholder value, and
deliver safe mobility solutions for society. During the year, Autoliv delivered significantly
improved profits supported by new collaborations, footprint optimization, structural cost
reductions, cost compensations, and a committed focus on sustainability, innovation,
and quality.

Market development
It was an intense and challenging year for the automotive indus-
try. 2023 was marked by inflationary pressure and strong devel-
opment for domestic Chinese OEMs (vehicle manufacturers).
Despite the inflationary environment and rising interest rates,
global car production increased by almost 10% and, according
to S&P Global, is expected to grow by one million vehicles per
year in the coming five years. We have also continued to see
supply chain stability improvements, with reduced customer call
off volatility throughout the year, although the progress stagnat-
ed in the second half of the year.

The rise of electric vehicles (EVs) and connected cars, and
the emergence of Chinese OEMs on the global scene are some
of the trends that are currently transforming the automotive in-
dustry. We are well-positioned to sustainably manage the busi-
ness opportunities that come with these changes.

Strong financial performance
Throughout 2023, we implemented several strategic initiatives
to meet the needs of the evolving global automotive industry,
such as successfully negotiating price adjustments, optimizing
our footprint, and implementing structural cost reductions. As a
result, we have delivered a significantly improved profit, in line
with our guidance at the beginning of the year.

At our Investor Day in June, we reiterated our target of a
12% adjusted operating margin*. We have built a solid founda-
tion in 2023, and expect 2024 to be an important step towards
our financial targets.

Reshaping Autoliv to meet the market today and in the future
In June, we announced forceful actions and footprint optimiza-
tion to respond to a prolonged challenging market environment
and our intention to reduce our workforce by up to 2,000 indirect

employees. Most of these reductions are now communicated
and we aim to complete these activities by 2026. This unfortu-
nately means that we have to part ways with a number of Autoliv
team members in order to secure our long-term competitive-
ness.

The footprint optimization is particularly focused on Europe,
with consolidations in Germany, France and Sweden and
planned site closures in the UK, Italy and the Netherlands.
These actions will help to strengthen the company’s competitive
position in the long term, adapting it to a substantially lower level
of light vehicle production in postpandemic Europe.

A relentless focus on quality and innovation
Quality is at the heart of everything we do and we continuously
strive to improve our performance. This requires us to always
focus on quality across the value chain and, as part of our prod-
uct life-cycle management program, we continue to develop a
proactive End-to-End approach to achieve Zero Defects.

Autoliv’s Mobility Safety Solutions (MSS) is complementing
our core business by pursuing new, attractive areas for profitable
growth in adjacent markets. We are focusing on areas where we
can leverage our technological know-how, operational capabili-
ties, and global footprint. In 2023, our efforts primarily focused
on the products for commercial vehicles, electrical safety solu-
tions like pyrotechnical safety switches, and safety systems for
motorcycles and bikes.

A strong position with fast-growing Chinese OEMs
China manufactures the most EVs in the world and has become
the leading light vehicle exporter. It is encouraging for our me-
dium- and long-term potential that we continue to improve our
position with China's fast-growing domestic OEMs.

We announced several collaborations with Chinese OEMs in

*) Non-U.S. GAAP Measure. See "Non-U.S. GAAP Performance Measures" section in the 10-k filed with the SEC.

2023 that are allowing us to bring new innovations to the mar-
ket at a rapid pace. We signed strategic cooperation agreements
with NIO, Chery, and Great Wall Motor. Together, we are driving
innovation and developing advanced technologies with a focus
on quality and addressing opportunities and challenges in the
rapidly evolving global automotive market.

progress in reducing GHG emissions from our own operations.
For example, year-over-year we reduced GHG emissions from
our own operations by 17%. I also want to highlight our use of
renewable electricity, which has increased from 1% in 2021, to
13% in 2022, to 23% in 2023. I am proud of our team’s success
and eager to see continued action throughout all parts of Autoliv.

New safety products to meet evolving customer demands
Already the market leader in safety products for light vehicles,
we are well-positioned to meet the needs for additional safety for
EVs as well as motorcycles and bikes. We view the strong elec-
tric vehicle trend as positive as the electrification can create de-
mand for new safety solutions and more advanced products. We
are well-positioned regardless of how the demand for electric
vehicles develops as we have a strong presence with both EV
and internal combustion engine (ICE) platforms.

The Bernoulli Airbag™ is a recent example of how we in-
novate to sustainably adapt to the business opportunities that
come with evolving customer and market demands. This new
technology enables cost-efficient large airbags like the ones
needed in newer electric vehicles with roomier cockpits and
comfortable seating.

We are also pioneering improved safety for more than 500
million road users through our holistic approach to motorcycle
and bikes safety. The first new motorcycle safety product to
reach the market will be the Bag-on-Bike airbag. This airbag can
significantly reduce the risk of serious injury for powered two-
wheeler riders in frontal crashes.

Sustainability – an integral part of our business
Sustainability is an integral part of our vision of Saving More
Lives and a fundamental driver for market differentiation and
stakeholder value creation. Our products save 35,000 lives and
reduce more than 450,000 injuries every year. Our ambition is to
save 100,000 lives per year.

Our business directly contributes to the realization of sev-
eral UN Sustainable Development Goals (SDGs) and, as a UN
Global Compact signatory, we are committed to following its prin-
ciples.

Autoliv supports the UN Road Safety Fund (UNRSF) and
its mission to increase awareness and availability of life-saving
products where they are most needed. Through Autoliv’s col-
laboration with the UNRSF, we contribute our knowledge and
experience of global traffic safety challenges, while gaining ad-
ditional insights into the most challenging road safety situations
facing the world today.

Autoliv is committed to providing safe and healthy working
conditions for our employees. We make health and safety an
integral part of everyday business by integrating it into our pro-
duction system and throughout all our projects and processes. In
2023, we took several steps to better manage high-risk activities.
Risk assessments and implementing new ways of working sup-
port an even safer work environment.

As part of our Green Factory program, we identify areas that
will help us save both energy and costs. Our manufacturing fa-
cilities carry out assessments covering energy use, greenhouse
gas (GHG) emissions, water, and waste, to assess their perfor-
mance and identify opportunities for improvement.
We are committed to climate action. During the year, we made

For 70 years, we have been
pioneers in automotive safety
and we have delivered many
world firsts to the market.

Celebrating 70 years of Saving More Lives
In 2023, we celebrated our 70th anniversary. Since our founding,
we have been pioneers in automotive safety and we have deliv-
ered many world firsts to the market. Brave decisions, a focus on
quality and innovation, and a desire to remain at the technologi-
cal forefront have made Autoliv the worldwide market leader.

In 2023, our colleagues took part in global birthday celebra-
tions. Together, we celebrated seven decades of Saving More
Lives in our plants and offices across the world.

I am proud of the outstanding efforts of the Autoliv team and
what the team continues to achieve in a challenging environment.
We have a strong foundation that we continue to build on.

Going forward
2023 developed in line with our outlook at the beginning of the
year. We laid a solid foundation in 2023 and expect 2024 to be
an important step towards our 12% adjusted operating margin*
target. Our order intake was strong in 2023 and we ended the
year on a positive note, having executed on our strategic initia-
tives, secured cost compensations, and delivered a sales growth
of 18%, which is a gratifying result considering the environment
in which we operate.

Autoliv’s tax rate for 2023 was lower than previously antici-
pated, with a full-year tax rate of around 20%. This is due to the
ongoing reorganization of our global functions and European
operations. These changes are also expected to reduce the nor-
malized tax rate to be within a range of around 25-30% onwards.
At Autoliv, our everyday work is guided by our important vi-
sion of Saving More Lives. While celebrating our 70th anniver-
sary with the team, I reflected on how well Autoliv has performed
in a challenging market these past few years. I am convinced that
Autoliv's clear vision and strategy for long-term growth, with a fo-
cus on quality, technology, sustainability, and innovation, ensure
that we are well-positioned to adapt to future market trends and
demands.

We welcome you to join us on this exciting continuing journey.

Mikael Bratt
President and CEO

AUTOLIV AT A GLANCE
70 Years of Saving More Lives

70 Years of
Saving More Lives

In 2023, Autoliv celebrated its 70 years anniversary.
The Autoliv story began in 1953 when two brothers,
Lennart and Stig Lindblad, founded a small
automotive parts and service company
in Vårgårda, Sweden.

1997

Autoliv Inc. is formed through a merger of
Autoliv AB, Europe’s leading automotive
safety company, and Morton ASP, the
leading airbag manufacturer in North
America and Asia. Morton ASP began
airbag production in 1980.

1956

The founder Lennart Lindblad
develops the company’s first
seatbelt, a two-point static belt.

1953

The company is founded by Lennart
Lindblad under the name Lindblads
Autoservice AB. After 25 years, Lennart
Lindblad leaves the company in 1977.

1980

Autoliv becomes a subsidiary
of Electrolux when the house-
hold goods manufacturing
group acquires Gränges AB,
an industrial conglomerate.
In 1984, the Company’s
name is changed to
Electrolux Autoliv AB.

1998

Our inflatable curtain side
airbag is introduced. It pro-
tects the occupants’ heads
in a side-impact collision and
covers the upper side of the
vehicle.

Celebrating 70 years all over the world

For 70 years, we have been pioneers
in automotive safety solutions and we
have delivered many world firsts to
the market. Brave decisions, a focus
on quality and a desire to remain at
the technological forefront have made
Autoliv a worldwide market leader.

2012

The world's first outside pedestrian protection
airbag. This helps car manufacturers meet stricter
Euro NCAP requirements. Autoliv introduces the
environmentally friendly airbag inflator APG,
recognized by the PACE Award.

2023

Autoliv unveils a patented
revolutionary new passenger
airbag module based on
Bernoulli’s principle that
can inflate larger airbags
more efficiently and
reduce development
time and costs.

2018

Autoliv spins off its electronics
segment. The new independent
company, Veoneer Inc., begins
trading on the New York Stock
Exchange and Nasdaq Stockholm
on July 2, 2018.

2022

Introducing airbag systems for powered
two-wheelers. The system is mounted
on the vehicle frame and will deploy in
milliseconds, for greater rider safety.

AUTOLIV AT A GLANCE
Vision/Mission/Key Behaviors

Our Vision

Our Mission

Saving
More Lives

Providing World-Class
Life-Saving Solutions
for Mobility and Society

Our Key Behaviors

We are the market leader in our industry and
what we do matters. This calls for a focused
approach to our ways of working. Our Key
Behaviors express the essence of our ways
of working in a clear and consistent way and
define how we strive to achieve success
together with colleagues, customers, and
partners.

Take
Ownership

Be Curious

Add Value

Collaborate

Make it
Easy

Driving Improvements
in all Areas of Our
Business

Through the Autoliv Awards and Recognition Program, we ac-
knowledge and recognize colleagues who exceed expectations in
enhancing Autoliv’s performance and profitability. The award cat-
egories and winning projects in 2023 are presented below, each
of which made outstanding contributions in their respective areas:

• Health, Safety and Sustainability:

Machine safety improvements

• Quality: Airbag cushion folding process

• Operations Excellence – Production:

Reducing helium consumption

• Operations Excellence – Non-Production:

Leadership Academy

•

Innovation: Successful design of a steering
wheel with an illuminated logo

These great achievements truly embody the desired Autoliv Key
Behaviors and ways of working.

Survivor
Story

Every day, our products save lives.
Every time they do, there is a person
and a story behind it.

I wanted to share an incident with you involving my
17-year old son Riley. On a Monday afternoon, he
was on his way home from Fremont High School when he
veered off the road in his 2002 Jeep Grand Cherokee. He
veered off the road directly before a canal. He jumped the
canal in his Jeep and impacted on the far side bank with
the front of his vehicle. When the front of the vehicle dug
into the ground, the Jeep flipped over onto the roof coming
to rest on the driveway of a house.

Riley was able to get out of the vehicle almost unscathed.
All he had was a small goose egg on his head. We are firm

believers in seatbelts in our family and he was wearing his.
I was a police officer for 20 years and have seen a lot of
serious accidents. I truly believe if he had not been wearing
his seatbelt, or had a vehicle without airbags, his injuries
would have been severe. Even though the airbags are 21
years or older, they functioned perfectly!

William Taylor
Security Supervisor
Autoliv Tremonton, United States

AUTOLIV AT A GLANCE
Financial Summary 2023

2023
Summary

We ended the year again with strong profit-
ability and cash flow after managing to off-
set significant market challenges, especially
high inflationary pressure on costs for labor
and energy and a volatile and unpredictable
Light Vehicle Production (LVP).

2023 was another important step towards our targets. We
continued to strengthen our position as the market leader
through our high order intake, strong sales growth and the
solid profitability and cash flow performance.

In 2023, the high cost inflation continued to be driven
by labor and energy costs rather than by raw materials as
in 2022. Through price adjustments, we managed to gradu-
ally offset the inflation, resulting in a year that generated new
company records for sales, adjusted operating income*, op-
erating cash flow as well as adjusted earnings per share*.

in some markets resulted

A continued strong end-consumer demand for new
vehicles and re-stocking
in
global LVP growing by about 9%, and finally recovering
to pre-pandemic level. All regions grew strongly, with Eu-
rope leading the way with 13% growth. Despite some im-
provements, we continued to experience late changes
to call-offs with short notice as global car manufacturers

(OEMs) managed
to match availability
of components. This negatively impacted our production ef-
ficiency and profitability.

their output

Our sales increased organically* by 18%, outperforming
global LVP by around 9 percentage points. This was the sixth
consecutive year that we outperformed global LVP by 5 to
12 percentage points, driven by price increases, increased
market shares and higher safety content per vehicle. Our
adjusted operating margin* improved from 5.3% in the first
quarter to 12.1% in the fourth quarter, as a result of success-
ful negotiations regarding cost compensation and our strong
focus on continuous improvements throughout the organi-
zation. For the full year the adjusted operating margin* im-
proved by 2 percentage points to 8.8%.

Operating cash flow improved from prior year to a new
record of $982 million, mainly due to higher adjusted oper-
ating profit* and positive working capital effects. Free cash
flow* amounted to $414 million, an increase of $186 million.
Capex, net in relation to sales was 5.4%, and cash conver-
sion improved to around 85%.

In 2023, we paid $2.66 per share in dividends, an in-
crease of around 3% from 2022, and repurchased and re-
tired 3.67 million shares.

In 2023, the GHG emissions in our own operations were
reduced by 17% compared to 2022, and our use of renew-
able electricity increased from 13% to 23%.

*) Non-U.S. GAAP Measure. See "Non-U.S. GAAP Performance Measures" section in the 10-k filed with the SEC.

Sales and Global LVP
US$ (Millions) and Units (Millions)

Organic Growth* vs. LVP
Change
Percentage Points

Sales by Division

10,000

8,000

6,000

4,000

2,000

Sales

LVP

Outperformance

Americas
34%

Asia
19%

Europe
27%

China
20%

Japan
8%

China
21%

Americas
33%

27%

Gross Profit & Gross Margin
US$ (Millions) and in relation to sales %

Adjusted Operating Profit
& Margin*
US$ (Millions) and in relation to sales %

Operating Cash Flow & Cash
Conversion*
US$ (Millions) and in %

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

1,200

1,000

800

600

400

200

1,100

1,000

900

800

700

600

500

300

250

200

150

100

Gross Profit

Gross Margin

Adjusted Operating Income*

Adjusted Operating Margin*

Operating Cash Flow

Cash Conversion*

Return on Capital Employed
%

Return on Equity
%

Leverage Ratio
Net Debt/ EBITDA

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Long-Term Target: 1.0x

0.5-1.5x
Long-Term
Range

AUTOLIV AT A GLANCE
Financial and Sustainability Targets

Leveraging Industry
Trends into Sustainable
Growth and Higher
Profitability

Financial targets
Autoliv is providing world-class life-saving mobility solu-
tions while transforming our operations for the new age of
electrification and autonomous driving, as well as digitali-
zation and automation throughout the whole value chain.

Our ability to consistently outperform light vehicle pro-
duction growth and leverage our growth into higher profit-
ability is rooted in our continuous investment in new safety
technologies, a strong focus on quality, and a superior and
cost effective production and engineering footprint. In the
medium-term, we intend to continue to grow our core busi-
ness – airbags, seatbelts and steering wheels – through
successful execution of the current product launch pro-
grams and order book.

In order to maintain the growth momentum, we are
pursuing an ambitious innovation program that includes
creating several world first safety products and investing
in capabilities beyond the light vehicle market. To success-
fully leverage growth into higher profitability, we rely on
driving End-to-End operational excellence while providing
superior quality to our customers in terms of product per-
formance and delivery reliability.

Sustainability targets
Sustainability is an integral part of our business strat-
egy and an important driver for market differentiation and
stakeholder value creation, helping to ensure that our busi-
ness will continue to thrive and contribute to sustainable
development in the long term.

Guided by our vision of Saving More Lives and our mis-
sion to provide world-class, life-saving solutions for mobil-
ity and society, we have set short- and long-term sustain-
ability targets in key areas. Our sustainability targets and
ambitions are anchored in well-established international
frameworks such as the UN Global Compact and Science
Based Targets.

Our sustainability approach is based on four focus ar-
eas – Saving More Lives, A Safe and Inclusive Workplace,
Climate and Circularity and Responsible Business – each
consisting of long-term ambitions and more specific short-
term targets.

Financial Key Targets: Organic sales growth*

2022-
2024

LVP+~4%

Average annual organic growth*
Excluding cost compensations

Long-
Term
(beyond
2024)

4-6%

Average annual organic growth*

Financial Key Target & Ambition: Profitability

Target

~12%

Adjusted operating margin*

Long-
Term
Ambition

~13%

Adjusted operating margin*

Sustainability Key Targets and Ambitions

Saving
More
Lives

100,000

Lives saved per year

A Safe and
Inclusive
Workplace

0.35

Incident Rate
by 2024

95%

of senior and mid-level
management trained
in unconscious bias

Year-on-year
improvement in
employee
experience

Climate and
Circularity

Carbon
neutrality
in own operations
by 2030

Net-zero
emissions
across our supply
chain by 2040

Year-on-year
improvement in
energy
intensity

22%

women in senior
management
by 2024

Year-on-year
reduction
in waste

Responsible
Business

100%

in target group completed
Antitrust training

100%

in target group Code of
Conduct certified

100%

direct material suppliers
sustainability audited

100%

direct material suppliers respond
to conflict minerals survey

*) Non-U.S. GAAP Measure. See "Non-U.S. GAAP Performance Measures" section in the 10-k filed with the SEC.

STRATEGY FOR CHANGE

Strategy
for Change

Autoliv's Strategic Framework consists of four
elements that directly support our financial
and sustainability objectives and targets.

Our focus areas require everyone's commitment in order to realize our
strategy and meet our objectives and targets:

Customer Focus
• We create value for the customer by creating a fit between

the customer need and our offering

Competitive Products and Solutions
• Develop competitive products and solutions to meet the

identified customer needs

• Create efficient processes and actively manage our

portfolio to deliver on our profitability targets

Efficient Value Delivery
• We align our value chain to ensure value is delivered to our
customers at the right time, in the right place, at the right
cost and with the right capital intensity

The Autoliv Way
• The Autoliv Way gives us a common view of what great

looks like at Autoliv and how we get there

PROFITABLE & CAPITAL
EFFICIENT GROWTH

The
Autoliv
Way

STRATEGY FOR CHANGE
Customer Focus

Strengthening
Our Position in a
Changing Market

Our strategy, business priorities and targets are deeply
rooted in the growing global demand for traffic safety. 1.2
million lives are lost annually on the roads according to the
World Health Organization (WHO). Vulnerable road users
– pedestrians, cyclists, and motorcyclists – make up about
half of these fatalities. Road traffic accidents are a ma-
jor cause of death among all age groups and the leading
cause of death for children and young adults between the
ages of 5 and 29. In addition, tens of millions suffer non-
fatal traffic-related injuries, causing not only human suffer-
ing, but also costs corresponding to about 10% of GDP in
a majority of countries. This underlines the importance of
our commitment to save more lives and reduce the num-
ber of injuries on our roads.

Market development
The automotive safety market is driven by two fundamen-
tal factors: Light Vehicle Production (LVP) and safety con-
tent per vehicle (CPV). In the long term, new technologies
such as autonomous driving and drivetrain electrification
are expected to have positive effects on the safety con-
tent per vehicle. With advanced protective systems for
new flexible seating positions, safety integration in seats,
human-machine interface (HMI) in steering wheels, and
protection systems outside the vehicle for vulnerable
road users, there is an increasing need for innovations in
safety systems. In the medium-term, content per vehicle is
expected to grow mainly due to increased government reg-
ulations and test rating requirements in growth markets,

as well as from higher installation rates of knee airbags,
front-center airbags, more advanced steering wheels and
more advanced seatbelt systems in more mature markets.

Market position
Our long-term focus on quality, delivery and cost in eve-
rything we do is the foundation for our long-term success.
We have been involved in only around 2% of recalls of air-
bags and seatbelts in the last 10 years, an important indi-
cator that we are delivering on our quality strategy. Since
2017, our market share has increased by 7 percentage
points to 45% in 2023. Our market position is strong in all
product categories, with 47% in airbags, 45% in seatbelts
and 40% in steering wheels. All three product categories
have substantially improved their positions since 2017. All
of our largest regions have increased their market shares
since 2017, to 48% in Americas, 50% in Europe, 36% in
China and 44% in Asia excluding China.

Global Light Vehicle Production
LVP has increased at an average annual growth rate of
1.9% since 1997. However, global LVP has declined from
the peak of 92 million in 2017, to 87 million in 2023. We
expect that light vehicle production will continue to grow
both in the medium and long-term. The growth is expected
to take place in all regions. With many regions having al-
ready rebuilt vehicle inventories, we see a short-term light
vehicle production outlook that is more reliant on end-cus-
tomer demand.

Safety Content Per Vehicle
A global development towards increased safety stand-
ards with stricter regulations and increasingly stringent
rating frameworks is a strong driver of safety content in
vehicles. Other drivers are the premium vehicle trend
and the increasing focus on safety in medium- and low-
income markets. By continuously researching, develop-
ing and introducing new technologies with higher value-
added features, Autoliv can
influence safety content
per vehicle. In 2023, global average CPV increased to
around $261. As a result of the increase, the automo-
tive safety market has outgrown LVP historically and we
expect this trend to continue. Since 2017, CPV has in-
creased in all regions, except in Japan, due to currency
effects. In recent years, India
introduced regulations
leading to mandatory frontal airbags for all new models,

and most vehicle manufacturers has also decided to make
side airbag systems standard on future vehicles.

Competitive landscape
Although Autoliv is the undisputed leader in automotive
safety, we face a variety of competitors in a landscape that
is constantly evolving. We consider our key competitors to
be ZF and Joyson Safety Systems (JSS), which we regard
as global, full-scope competitors. ZF is a broad-based au-
tomotive supplier. JSS was formed through the combina-
tion of KSS and Takata and is owned by Ningbo Joyson
Electronic. In Japan, Brazil, South Korea and China, we
also compete with a number of domestic suppliers, often
with close ties to domestic vehicle manufacturers. We also
face competition from product specialists.

Global Industry Leader 1)

Market Share by Product Area1)

45%

Airbags
47%

Seatbelts
45%

Steering
wheels
40%

Autoliv global market share

Content per Vehicle1)
US$ per vehicle

Competitive Landscape

450

400

350

300

250

200

150

100

Average 2023: ~$261

Global
Full Scope

China
Challengers

OEM
Associated

Product
Specialists

WEU

Japan

EEU

China

India

2023

2017

1) Company estimates. Includes seatbelts, airbags, steering wheels and pedestrian safety.

STRATEGY FOR CHANGE
Customer Focus

Customer
Collaboration

Building on a long history of collaboration with OEMs, Autoliv
has one of the industry’s most diverse customer bases, re-
flecting a strong sales mix with high-volume global vehicle
manufacturers, global premium brands, as well new entrants
to the automotive industry. Technology-driven trends are
disrupting the automotive industry, necessitating collabora-
tion to address the challenges and opportunities that the in-
dustry is facing, notably connectivity, automation, emissions
and safety. In 2023, Autoliv announced partnerships with
three leading Chinese vehicle manufacturers to address
opportunities and challenges in the rapidly evolving global
automotive landscape.

Autoliv currently delivers products to around 100 vehicle
brands around the world and has a leading market position
with almost all OEMs. During 2023, we launched a record
number of new products on a number of important electric
vehicles (EVs) and internal combustion engine vehicles
(ICE), supporting our future growth.

around 31% of our global sales, compared to their 29%
share of global LVP. This is a result of our high order intake
with Japanese OEMs in recent years, built on our strong lo-
cal presence in Japan and our global manufacturing foot-
print. Globally, European-based brands accounted for 29%
of our sales in 2023. U.S.-based brands (including Chrysler
and new EV OEMs) accounted for 23% of our global sales,
while domestic Chinese OEMs accounted for around 6% of
our sales in 2023. The fastest growing customer in 2023 was
Honda followed by a global EV manufacturer and Toyota.

The Company estimates that its sales in 2023 for EVs
(not including plug-in hybrid vehicles) amounted to around
$1.4 billion. The positive sales trend for EVs is expected to
continue as around 45% of our total order intake in 2023
was for future EVs. Additionally, we have been successful in
winning contracts with new automakers. New automakers,
mainly in North America and China, accounted for around
25% of our order intake, up from 12% just two years ago.

Sales by customer and vehicle type
In 2023, our top five customers represented 48% of sales
and the ten largest represented 78% of sales. This reflects
the concentration in the automotive industry. The five larg-
est customers in 2023 accounted for 46% of global Light
Vehicle Production (LVP) and the ten largest for 66%. The
top ten customer list includes many of the major Asian ve-
hicle manufacturers as well as one pure EV manufacturer.
Asian vehicle producers have steadily become increasingly
important, mainly driven by growth among Japanese and
Chinese OEMs. As a group, Japanese OEMs now represent

Sales by region
With operations in 25 countries and having one of the broad-
est customer bases of any automotive supplier, Autoliv has
the best global footprint in the industry. In 2023, the Asian
market, the China and Asian divisions combined, accounted
for 39% of Autoliv's sales. The second largest market was
Americas, representing 34% of sales. The European mar-
ket accounted for 27% of sales in 2023, which is roughly 10
percentage points less than a decade ago, reflecting a weak
LVP as well as our strong market share gains in Asia and
North America over the past few years.

Sales by Product

Sales by Customer

Sales by Division

Nissan /Mitsubishi/Renault 10%

Others 9%

67%

33%

Stellantis 10%

VW 9%

Honda 9%

Subaru 2%

Volvo 2%

BMW 3%

Mercedes 4%

EV Maker 5%

Americas
34%

Chinese OEMs 6%

General Motors 6%

Asia
19%

Europe
27%

China
20%

Airbags and
Steering Wheels

Seatbelts

Toyota 9%

Ford 7%

Hyundai/Kia 7%

Japan

China

21%

Americas
33%

27%

Important Launches in 2023

Fisker Ocean

Xpeng P7i

Wey Blue Ocean

Dodge Ram Rampage

Toyota Alphard

Zeekr X

BMW i5/5-series

Nio ES 6

Hyundai MUFASA

STRATEGY FOR CHANGE
Competitive Products and Solutions

Products for
Saving More
Lives

Based on our extensive research into
real-life accidents, we develop and
engineer automotive safety solutions
to save more lives and prevent injuries
on the roads. What sets us apart from
our competitors is the Autoliv Circle of
Life, a research-based approach to
Saving More Lives in real-life
situations.

INTEGRATED CHILD BOOSTER SEAT
Provides protection
and comfort

The integrated booster seat is specially
designed to provide safety for children,
together with the car's seatbelt.

SIDE AIRBAG
Protects in side collisions

Side airbags reduce the risk of chest injuries by approximately 25%. With
dual-chamber side airbags, both the pelvis and the chest areas are protected
which further reduces the risk of serious injuries in side-impact crashes.

KNEE AIRBAG
Reduces leg injuries

Knee airbags, which deploy from a vehicle’s lower dashboard, distribute the impact
forces on an occupant's legs, thereby reducing leg and knee injuries. Additionally,
they are designed to control the movement of the occupant so that the driver and
passenger airbags can provide optimal protection.

Reduces pedestrian head injuries

ACTIVE HOOD LIFTER

Active hood lifters help to mitigate the impact of a pedestrian's head against
the structure beneath the hood, meaning the engine, suspension, etc.

SEATBELT
Top life-saving device

Seatbelts are considered the primary restraint system, because of their
vital role in occupant safety, and can reduce fatalities by as much as 45%.

FRONT CENTER AIRBAG
Enhances front-row protection

Front center airbag can prevent front-row passengers
from colliding with each other during side impacts.

SIDE-CURTAIN AIRBAG
Reduces head injuries

Reduces the risk of life threatening head injuries
by approximately 50%.

DRIVER AND PASSENGER AIRBAG
Saves lives and reduces injuries

The driver airbag reduces fatalities in frontal crashes
by approximately 25% (for belted drivers) and
reduces serious head injuries by over 60%.

STEERING WHEEL
With the lives of others
in your hands

The steering wheel is a vital part of
the safety system and controls many
of the vehicle’s functions.

PEDESTRIAN AIRBAG
Protects pedestrians

The pedestrian airbag aims to mitigate and
reduce the severity of a head impact in case
of a pedestrian-vehicle accident.

PYRO SAFETY SWITCH
Prevents fire and electrocution

Pyro safety switches can disconnect or
cut power during/after an accident.

STRATEGY FOR CHANGE
Competitive Products and Solutions

Innovation as
an Enabler to
Save More Lives

The Bernoulli AirbagTM – our innovative and costefficient
solution for very large airbags.

At Autoliv, we are accelerating our innova-
tion agenda which is shaped by industry
megatrends, key industry technology and
product development. A major focus area
is new occupant safety solutions driven by
the evolution of advanced driver assistance
systems and new interiors.

Shifting demographics, sustainability, and fast develop-
ment of new technology will shape our industry’s future, and
global megatrends like automation, electrification, and con-
nectivity are changing and influencing the future transport
system. Our understanding of these trends, paired with our
approach to Real Life Safety, enables us to embrace and
influence the new horizons in mobility. As trends and new
technologies reshape the mobility landscape, staying com-
petitive requires disruptive strategies – and innovation.

Our research and innovation capability allow our develop-
ment teams to redefine the standards of safety for future
challenges such as electrified and autonomous cars and
create specially designed safety procucts for motorcyclists
and cyclists.

The Autoliv Circle of Life
The Autoliv Circle of Life is a research-based approach to
Saving More Lives in real-life situations, beyond standard-
ized test scenarios. This means that instead of using the ex-
isting pre-defined load cases, Autoliv conducts traffic safety
research to verify or develop new test methods and tools
to continuously push the agenda of road safety. The effect
of new innovations is estimated from real life data and can
later be verified. This research-based approach has enabled
Autoliv to be a leader in automotive safety.

The Bernoulli Airbag™
Autoliv’s research-based approach, paired with Swiss
mathematician and physicist Daniel Bernoulli's fundamen-
tal principles of fluid dynamics, has resulted in a revolution-
ary new passenger airbag. This new technology can inflate
very large airbags, like the ones needed in newer electric ve-
hicles with roomier cockpits and comfortable seating, with a
smaller single stage inflator.

The Bernoulli Airbag™ is an example of our commit-
ment to saving lives and redefining the standards of safety
so our customers can build the safest possible vehicles. By
doing this, we can affect other aspects of the safety system
and offer our customers options that do not exist today. The
Bernoulli Airbag™ is a significant step forward in making
vehicles safer in a more efficient and sustainable manner.

Real Life Safety
Autoliv has a research-based approach to Saving More Lives
in real-lite situations. This approach has allowed us to be a leader
in automotive safety for 70 years.

Start of Production
Once validated, these
new technologies move
into the Autoliv produc-
tion system.

Real
Life
Safety

Start of
Production

Crash
Statistics on
a Macro Level

Validation of New
Safety Systems
We then validate the
feasibility of these
technologies in real-life
traffic situations.

Developing New
Test Methods
Continued research
also drives us to develop
new methods for testing
real-life safety technologies.

Validation of
New Safety
Systems for
Real-Life
Traffic

The Autoliv
Circle of Life for
Traffic Safety

In-Depth
Studies of
Crashes and
Incidents

Developing
New Test
Methods

Biomechanics
and Human
Factors

Finding
the Best
Technology
for Safety
Needs

Crash Statistics
on a Macro Level
Autoliv's research team gath-
ers and analyzes Real Life
Safety statistics on a global
level to understand traffic
crashes.

ln-Depth Studies of
Accidents and Incidents
Autoliv partners with
leading safety institutions
to study traffic crashes,
their causes and outcomes.

Biomechanics and
Human Factors
Autoliv is a global leader
in understanding how
biomechanics and driver
behavior affect safety in
real-life traffic conditions.

Finding the Best Technology
Our research allows us to develop technologies that meet the
needs of real-life traffic situations for all people.

Developing safety for mobility and society
Our innovation agenda supports our evolution into safety
for mobility and society. Autoliv’s Mobility Safety Solutions
(MSS) utilizes our research and technology to develop
products and services for businesses adjacent to Autoliv’s
core areas of airbags, steering wheels, and seatbelts for
light passenger vehicles. Such adjacent products and ser-
vices include electrical safety solutions with our pyrotech-
nical safety switches, safety solutions for commercial ve-
hicles, and providing components to customers outside of
light vehicle markets.

Motorcycles and bikes
The number of motorcycles and bikes in the world con-
tinues to rise. In many regions, they offer an affordable
way to travel and in other parts of the world they are used
for convenience or leisure. Motorcycle and bike riders have
not benefited to the same extent as car occupants from the
many developments in vehicle safety. Today, some motor-
cycles are equipped with advanced safety systems, but
there is a need for more safety products. Autoliv's exten-
sive research into motorcycle and bike riding behavior and
crashes has resulted in two sets of solutions: on-vehicle
safety solutions and on-rider safety solutions (wearables).
Our first product to reach the market will be an on-motor-
cycle airbag system, which is planned to go into production

for the first customer in 2025, that can improve rider pro-
tection in frontal and oblique crashes. Our goal is to offer a
complete and cost-efficient airbag system, that can improve
rider protection in front and oblique crashes, to facilitate the
introduction of this technology for a wide variety of motorcy-
cles. The Autoliv airbag system will include an airbag and an
in-house-developed electronic crash sensor.

UNRSF collaboration – accelerating road safety
progress in low- and middle-income countries
Autoliv's global presence, in-depth knowledge of how peo-
ple are injured, and effective solutions are all highly valu-
able assets to support progress towards the global road
safety targets. Since 2022, Autoliv supports the UN Road
Safety Fund (UNRSF), which is the lead agency in charge of
coordinating funding and deployment of road safety projects
in low- and middle-income countries. Autoliv supports the
UNRSF financially and with expertise to stimulate and guide
global efforts to improve road safety policies, technical regula-
tion, and safe system capacities. Autoliv has built strong cred-
ibility among policymakers and key road safety stakeholders,
as demonstrated by the election of Autoliv's CEO Mikael
Bratt to the Advisory Board of the UNRSF. Through the col-
laboration with UNRSF, Autoliv has gained greater access
to the highest level of political forums and a stronger voice
in the prioritization of policy actions to reach the Sustainable

STRATEGY FOR CHANGE
Competitive Products and Solutions

Inflatable Helmet
Concept for Bike Riders

Airbag System on Motorbike

Integrated Seat Airbag
for "Zero Gravity"

Pyrotechnical
Safety Switches

Development Goals by 2030. As motorcycle safety is a high
priority in low- and middle-income countries, Autoliv will focus
its attention on efforts that drive progress in motorcycle safety
and rider protection and continue to advocate for substantial
enhancements to the safety of vulnerable road users.

Equity in vehicle road safety – the SAFER Human
Body Model
Autoliv is a forerunner in road safety equity. Current occu-
pant substitutes used for estimating injury risk in crash test-
ing are limited to three sizes representing small, mid-size
and large occupants, and are based on 1970s U.S. popula-
tion height and weight distributions. In an effort to change
this, Autoliv has been working with finite element human
body models since 2008. These virtual representations of
humans with bones and flesh are much more detailed than
traditional crash test dummies. Together with SAFER,
an open research arena for vehicle and traffic safety, our
SAFER Human Body Model (HBM) can be morphed seam-
lessly to represent any weight and height – for both males
and females. The work culminated in a PhD thesis in 2023
on Human Body Model Morphing for Assessment of Crash
Rib Fracture Risk for the Population of Car Occupants.
There are various projects, both ongoing and planned, to
make our SAFER HBM ever better. As presented at the

27th International Technical Conference on the Enhanced
Safety of Vehicles (ESV) in Yokohama, Japan in April 2023,
SAFER HBM can today predict human kinematics and
injury risk for various human shapes and road user types.
Assessing injury risk for a diverse population in a range of
crashes will promote more personalized safety solutions for
car occupants as well as for vulnerable road users.

Electrical safety solutions
With the further electrification of society, new innovative
solutions are required to enable a safe transition to a more
sustainable future. Utilizing Autoliv’s competence from
our core business, we have developed several different
products for electrical safety, with the common denomina-
tor being utilization of pyrotechnics. The products range
from highvolume, off-the-shelf products, primarily the Pyro
Safety Switch, to tailor-made solutions. Today, most of our
products for electrical safety target the automotive industry,
but we also see potential to grow in new markets such as
electricity transmission and energy storage.

The triple helix model of innovation at Autoliv
An ever-changing world presents us with challenges, and
we cannot solve all problems ourselves. For Autoliv, collab-
oration is a success factor. We often collaborate according

Low Carbon
Footprint Cushions

Steering Wheels with
Multi-Zone Hands-on-Detection

Belt in Seat

The Bernoulli Airbag™

to the triple helix model of innovation, which refers to the
open collaborative spirit between academia, industry, and
government, and aims to foster economic and social devel-
opment.

Cross-sector collaboration ensures that the engine of
private sector innovation is pointed in the right direction –
towards targets with the greatest societal benefit, leveraging
the opportunities of technology. Autoliv strategically choos-
es its partners to develop its innovative capabilities, differen-
tiate itself from its competitors, and become more efficient

in manufacturing. Collaboration is an enabler to save more
lives and creates growth and profitability for Autoliv.

Autoliv has a global research and innovation network
and specific research collaborations with world-leading uni-
versities within biomechanics, human factors, and data sci-
ence. We partner with universities, research institutes and
policymakers, engaging with innovative start-ups and other
industrial partners to innovate, develop and produce scal-
able and quick-to-market safety innovations.

Collaboration
Industry partners
Academia
Policy Makers

Innovative Capabilities
Future Advantages

Differentiating Capabilities
Competitive Advantages

Operational Capabilities
Efficiency, Quality and
Standardization

Saving
More Lives
From 35,000
to 100,000
lives annually

Growth
Outgrowing
the market
New products
and services
New businesses

STRATEGY FOR CHANGE
Efficient Value Delivery

Operational
Excellence

Mega trends

Market insights

Safety research

Autoliv strategy

We align our value chain to ensure value is
delivered to our customers at the right time,
in the right location, with the right quality,
at the right cost and with the right capital
intensity.

RD&E Effectiveness
We are enhancing our engineering productivity through
the Engineering 4.0 program. This program is aimed at
streamlining our processes through different initiatives,
such as one flow of project data and virtual engineering
to optimize part and product development and to reduce
prototype and testing. Furthermore, our engineering pro-
cesses are made more efficient through digitalization, au-
tomation and smart connectivity.

Robust and competitive end-to-end supply chain
The success of Autoliv is dependent on competitive and
innovative suppliers and partners who are successful in
their respective businesses.

During the past years the global trade system has suf-
fered from shortages, wars, natural disasters and geopo-
litical tensions. This has required focus on building a cost-
and capital efficient supply chain which at the same time is
resilient, adaptive and sustainable.

Autoliv will continue to combine commercial supplier
initiatives, development of our supply chain and supplier
portfolio with improved change management. This is central

for our ability to continuously reduce product cost. We are
identifying core and non-core processes in our make vs. buy
studies and developing relevant associated strategies. Our
supply chain has improved and reinforced its End-to-End
and cross-functional abilities to reduce costs pre and post
start of production.

Quality assured projects with seamless launches
We see increasing complexity and functionality of our
products, in combination with shorter develop time expec-
tations from our customers. To meet customer require-
ments while achieving profitable and sustainable launches
into serial production, we are strengthening the focus on
proactive quality assurance, profitability improvement and
program management capability.

Cost reductions through operational excellence and
optimized footprint
Benchmark manufacturing in Autoliv will ensure that our
manufacturing operations operate at benchmark levels.
We will continue to drive our Autoliv Production System
(APS), aiming for a top rating for all plants. We have al-
ready raised a meaningful number of our plants to a top
rating. APS principles are also be expanded to other non-
manufacturing areas. We have developed a roadmap for
our Manufacturing 4.0 program and will accelerate our
path to the connected factory. Further, we are reviewing
and optimizing our manufacturing and technical center
footprint. We continously evaluate our footprint to be able
to meet the customers demands and remain competitive.

Feedback loop for continuous improvement

Built in Quality throughout the product lifecycle for
Zero Defects at target cost
Our products save lives. They do not get a second chance.
Therefore, we have a Zero Defect mindset that empha-
sizes the importance of getting things right the first time.

It aims to eliminate defects, improve product or service
quality, and reduce costs associated with waste. We work
to build in quality in all dimensions across the product life-
cycle, with the total cost and End-to-End process in mind.

Operational excellence at Autoliv seatbelt plant in Tsukuba, Japan.

STRATEGY FOR CHANGE
Efficient Value Delivery

Value to
Customers

Every year, we compete in several hundred
tenders for new business. To remain the pre-
ferred choice for our customers, we work dili-
gently with quality, reliability, technology and
flexibility. This is, and has been, instrumental
in building our brand and business over the
last 70 years.

The trust our customers have in Autoliv is further sup-
ported by incorporating sustainability into everything we
do. We are uniquely positioned to benefit from the industry
transformation. Our ability to consistently outperform mar-
ket growth is rooted in a strong focus on innovation, quality
and a superior production system serving around 100 car
brands globally. To ensure that we maintain and strengthen
our position as the industry leader, we have developed a
number of strategies.

Brand Strength
We are committed to further strengthening the visibility and
recognition of the Autoliv brand. In a fast-changing world,
company reputation and public responsibility are increas-
ingly important to all stakeholders and can have a direct
influence and impact on commercial potential. A strong
Autoliv brand is equally important as we develop our new
adjacent business areas. Based on our proven market suc-
cess, we are taking further steps to increase our visibility
beyond our current customer strongholds.

Sustainability
The automotive industry is undergoing a major transforma-
tion, as sustainability becomes a defining issue for car buy-
ers as well as governments and regulators. Our sustain-
ability approach of Saving More Lives, safe and inclusive
workplace, climate and circularity and responsible busi-
ness is aligned with and supports our customers' broader
sustainability agendas.

Innovation (i)
Our ability to consistently outperform market growth is de-
pendent on our ability to provide new safety technologies.
We have accelerated our innovation agenda, focusing on
key industry technology and product trends. A major focus
area is new passive safety solutions driven by the evolu-
tion of new interiors for electrical and self-driving vehicles.

Quality Leadership (Q5)
Continued focus on quality is imperative for remaining the
preferred choice of our customers. Accordingly, we are
committed to delivering the highest quality, safety and per-
formance in our products and services, in alignment with
our vision of Saving More Lives. We continue to invest in
our quality culture and Zero Defect mindset. We are adapt-
ing our processes to incorporate quality earlier in the de-
sign process and cooperate more closely with suppliers to
further improve our Zero Defect performance by applying
our Q5 methodology – quality in all dimensions.

One Product One Process (1P1P)
1P1P is Autoliv’s journey towards a global standardization
of products and processes. Its main objective is to create
lower total cost by reduction of complexity through global
management of knowledge. We thereby ensure the best
technical solutions (product robustness), providing higher
value for our customers (customer excellence). Essen-
tially, the idea is that there should be only one process for
every product and one product for every function.

Autoliv Production System (APS)
APS is how we stay competitive and grow towards excel-
lence in our daily work. It contributes to every single part of
Autoliv and it is particularly central to manufacturing. APS
is the backbone of how we drive operations across our pro-
duction network. Combined with digitalization of manufac-
turing and automation of processes, we are continuously
progressing our operational excellence journey.

APS

STRATEGY FOR CHANGE
The Autoliv Way

Outstanding
People Embracing
Change

Our position as a worldwide leader in auto-
motive safety systems, saving 35,000 lives
every year, is achieved by our 70,000 out-
standing colleagues around the world. Their
diverse assets, breadth and depth of exper-
tise and desire to develop, in combination
with Autoliv’s ambition to enable fulfilling
careers, supports our vision of Saving More
Lives.

Guided by our vision, 2023 was a dynamic year for Autoliv,
with both highlights and challenging moments for our col-
legues. Examples include the global celebration of Auto-
liv’s 70th anniversary, during which our colleagues’ passion
and pride in the company was clear, as well as the improve-
ment and cost reduction activities carried out during the
year, including reducing positions and closing some of our
facilities.

People development
We want all our colleagues to achieve professional success
and reach their full potential. This creates a clear win-win
situation since we need high-performing people doing their
utmost to deliver on our vision and safeguarding our market
leading position. Key components of this continuous ambi-
tion include Speak Up (page 55), our strategic workforce
planning where we identify talent requirements, gaps and
strategies to enable people to grow, and our Key Behaviors
(page 10), which remind us all how to act to bring the best
version of Autoliv to life every day.

The dialogue between managers and team members,
which includes all of these components, is a cornerstone of
everyone’s growth. This dialogue is summarized in an an-
nual Performance and Development Dialogue (PDD). Dur-
ing 2023, 99% of targeted employees conducted a PDD
with their managers.

To further support our people’s growth, we use several de-
velopment channels, such as facilitated and self-paced
development programs, technical and specialist career
paths, international assignments and continuous on-the-
job training.

Health and safety
Ensuring a safe workplace is a top priority for us and our
goals are clear: we want zero accidents, and we want to
prevent all occupational injuries. Autoliv’s management is
strongly committed to providing safe and healthy working
conditions for all our employees and contractors, and we
work actively to make health and safety an integrated part
of our daily work, on all levels and across functions. Just
like our vision, Saving More Lives, ensuring a safe work en-
vironment is a collective achievement. In 2023, we contin-
ued our safety leadership training and performed general
awareness-raising activities as well as activities with a par-
ticular focus on high-risk tasks.

Diversity and inclusion
Our workforce reflects the diversity of the countries and
cultures in which we operate. The more diverse our organi-
zation, the better we will be at anticipating, leveraging, and
adapting to future needs and changes. We believe that eve-
ryone should be respected and treated fairly, and we are
committed to providing an inclusive and diverse workplace
where everyone can be their authentic selves and deliver
results. Inclusive ways of working are a fundamental part of
our Key Behaviors.

Labor rights
We strive to offer fair terms and conditions of employment.
Our Key Behaviors, Code of Conduct, talent development
strategies and employment policies support the principles
in the United Nations Universal Declaration of Human
Rights, and the International Labour Organization’s Funda-
mental Principles and Labour Standards.

SUSTAINABILITY

A Driving Force
in Sustainable
Mobility

Our sustainability approach is designed to
create long-term stakeholder value by focus-
ing on the most material areas supported by
long-term ambitions and concrete targets.

Guided by our vision of Saving More Lives, our mission
is to provide world-class, life-saving solutions for mobility
and society. Sustainability is an integral part of our busi-
ness strategy and a fundamental driver for market differ-
entiation and stakeholder value creation, helping to ensure
that our business will continue to thrive and contribute to
sustainable development in the long term. To truly be a
driving force in sustainable mobility, we strive to systemati-
cally assess and manage key impacts, risks and opportuni-
ties to society and the environment related to our business,
operations and supply chain. We also engage with our cus-
tomers to ensure that we are part of driving the transition to
low-carbon and circular mobility, thus realizing new busi-
ness potential for us and our customers.

Our sustainability approach is based on four focus ar-
eas with broad ambitions and more specific short-term
targets defined for each area. These areas represent the
strongest links to our business risks and opportunities and
the greatest impact on key stakeholder groups, society and
the environment. All four areas represent global challenges

where we believe that our work can make a positive differ-
ence, through our ways of working or by inspiring and col-
laborating with others. We are a signatory of the UN Global
Compact and our work and policies, such as our Code of
Conduct, are aligned with international frameworks such
as the ILO core conventions and the OECD Guidelines.

Our core business and sustainability work contribute to
our goal of the realization of a number of UN Sustainable
Development Goals (SDGs). Our core business contrib-
utes to reducing the number of road fatalities (SDG 3) and
making transportation systems safer for everyone, includ-
ing vulnerable road users (SDG 11). We support research
and knowledge sharing that benefit developing markets
(SDG 17). Over time, our climate and circularity agenda
aims to not only reduce our own negative environmental im-
pact (SDG 9, SDG 13) but also help drive green innovation
(SDG 12) among direct material suppliers, vehicle manu-
facturers and energy providers (SDG 7). By proactively
managing health and safety risks and labor rights (SDG 8),
promoting diversity and inclusion (SDG 5) and holding all
employees to the highest ethical business standards (SDG
16), we lay the foundation for a high-performing organiza-
tion where every employee has the means to speak up and
drive improvement.

For more information about performance data, defini-
tions, etc., see the Sustainability Appendix on pages 59-63.

Focus Area

Targets and Ambitions

Contribution to UN
Sustainable Development Goals

Saving More Lives

100,000 lives saved
per year

A Safe and Inclusive
Workplace

• Zero accidents
• Embrace inclusive ways of working

Climate and Circularity

• Carbon neutrality in own operations by 2030

• Net zero emissions across our supply
chain by 2040

Responsible Business

• Proactively prevent corruption and
other unethical business practices

• Respect human rights

• Manage supply chain sustainability risks

SUSTAINABILITY

Sustainability
Materiality
Assessment

An integrated approach to assessing the
impacts, risks and opportunities of our busi-
ness allows us to focus on managing the
most material topics.

The starting point for sustainability management and report-
ing is understanding our most material topics. Our materi-
ality assessment process aims to identify the key sustain-
ability topics in our own operations and our value chain. The
process is based on the double materiality principle: both
impact materiality (how Autoliv impacts people and the en-
vironment) and financial materiality (how various sustain-
ability topics impact Autoliv) are considered.

The materiality assessment process is aligned with the
Enterprise Risk Management (ERM) process with activities
carried out continuously throughout the year. We continu-
ously develop our materiality assessment process to align
with future management and reporting requirements.

Assessment activities during the year included:
• Cross-functional workshops with internal topic experts
and representatives from key functions to ensure a broad
inside-out understanding of current and future material
topics

• Review of industry-related reports etc. regarding im-

pacts, risks and opportunities

• Market research as well as direct dialogue to understand
our customers’ sustainability priorities, challenges and
opportunities for collaboration

• Review of investor-driven sustainability/ESG assess-

ments as well as meetings with key shareholders

• Review of the results of the quarterly employee surveys
and reports filed through the Autoliv Helpline and other
Speak Up channels

For many topics, we also carry out topic-specific assess-
ments to gain a deeper understanding of both impact and
financial materiality. For example, for climate change, we
have carried out a value chain GHG footprint assessment,
identified emission sources and reduction levers, and identi-
fied key transition and physical risks and opportunities that
could impact our business.

Sustainability impacts and performance of our supply
chain cut across most of the above topics, in particular re-
garding climate change, circularity, product safety, health
and safety, labor rights and business ethics.

While many of the topics listed above have been con-
sidered as material for several years, some topics such as
inclusion and circularity are growing in importance driven
by trends of natural resources scarcity, digitalization, more
complex operating environments and new legislation. The
material topics are covered by our sustainability focus ar-
eas, with targets and action plans defined to ensure that we
make measurable progress.

In 2023, key material topics identified included:

Environment

Social

Climate change

Circularity

Life-saving products and
innovations

Product safety

Health and safety

Inclusion

Labor rights

Governance

Anti-corruption

Antitrust

Shaping the
industry agenda

Autoliv is engaged in several global and regional associa-
tions and organizations, as well as academic and public-
private partnerships, in order to contribute actively to driv-
ing progress in our most material areas. Autoliv is an active
member of committees that shape the organizations’ posi-
tions and communication on key topics such as furthering
traffic and vehicle safety standards in regulations and rat-
ings, equity in crash safety, and how the automotive supplier
industry can actively drive low-carbon mobility.

Moreover, Autoliv is actively engaging to contribute to the
resilience of the automotive supplier sector, to encourage
enhancements in national and international traffic and vehi-
cle safety standards, research funding and capacity, advo-
cating for greater priority to road traffic safety in global policy
and national legislation as well as how the industry can sup-
port the transition towards low-carbon mobility.

Examples of some of the organizations Autoliv is a mem-
ber of include:

• Since 2022, Autoliv is a Board member of the UN Road
Safety Fund (UNRSF) Advisory Board. UNRSF’s aim is
to promote road safety in developing countries in order to
meet Sustainable Development Goal 3.6 of halving road
traffic fatalities by 2030. Autoliv is advising the UNRSF
about its direction and operational work. Through its part-
nership with the UNRSF, Autoliv has been able to work
more actively on the global policy level and communicate
its recommendations, and to directly support the UN-
funded initiatives carried out in low- and middle-income
countries, both financially and with our expertise.

•

In the U.S., the Automotive Safety Council (ASC) focus-
es on promoting global deployment of automotive safety
technology. ASC is active in providing industry guidance
on road traffic safety-related legislation.

In Europe, Autoliv is actively engaged in a number of
working groups of the European Association of Auto-
motive Suppliers (CLEPA). Much of the work relates to
shaping future safety regulations as well as industry’s
role in the EU sustainability agenda through collabora-
tion with other automotive suppliers on topics such as
circularity, the EU Taxonomy, corporate sustainability
due diligence and reporting.

SUSTAINABILITY

Sustainability
Governance

Autoliv’s sustainability work is managed
within a well-defined governance structure,
with clearly established ownership and re-
sponsibilities at all levels in the organization.

The underlying principle of our governance model is in-
tegrating sustainability responsibilities into the ordinary
course of business and company processes. This means
that the ultimate responsibility for executing sustainability
activities and targets lies with the line organization and is
monitored through management reporting. According to our
Key Behaviors, we expect every employee to take owner-
ship of sustainability topics by proactively contributing im-
provement ideas as well as by following company policies
and standards.

Ultimate oversight of the company’s sustainability ac-
tivities lies with the Board of Directors. The Board sets the
direction for sustainability activities and regularly monitors
progress on Autoliv’s sustainability strategy and targets
through its Nominating and Corporate Governance Com-
mittee (NCGC). The Board reviews and approves the Code
of Conduct as well as the Annual and Sustainability Report
and the Modern Slavery Act Statement.

Implementation responsibility for sustainability lies with
the Executive Management Team (EMT). The EMT has
appointed a Sustainability Board charged with providing
regular direction and oversight. The Sustainability Board
consists of the CEO and other EMT members and meets
on a quarterly basis. The Sustainability Board reviews and
approves Autoliv’s sustainability strategy, annual and long-
term plans, targets and policies for key topics, and monitors
implementation and performance.

Integration of sustainability into Autoliv’s business is led
by the HR & Sustainability function. The Vice President,
Sustainability, who reports to the Executive Vice President,
HR & Sustainability, coordinates, develops and monitors
Autoliv’s sustainability agenda and facilitates the Sustain-
ability Board meetings and other sustainability-related re-
porting to management. Everyday sustainability topics are

managed, as appropriate, by the HR & Sustainability func-
tion, divisions and other corporate functions such as supply
chain management, research, development and engineer-
ing, and legal and compliance. Divisions and corporate
functions have dedicated sustainability resources such as
climate coordinators, health & safety coordinators, eco-de-
sign/life-cycle assessment (LCA) experts and supply chain
sustainability specialists.

Risk management
Autoliv has a global risk management organization and
utilizes several different tools, such as an enterprise risk
management (ERM) framework which includes annual, di-
visional, functional and corporate risk mapping activities,
monitoring of risk trends, implementation of risk improve-
ment plans and follow-up of the effectiveness of risk miti-
gation measures. Risk reporting is carried out on a regular
basis to the Board of Directors and the Audit and Risk Com-
mittee. With regard to sustainability-related risks, the ERM
framework takes into consideration the double materiality
perspective. This means assessing both how Autoliv’s op-
erations impact people and the environment, and how vari-
ous sustainability topics impact Autoliv’s business. Sustain-
ability risks, such as product safety, climate change, natural
resources scarcity, environmental compliance, health and
safety and other labor rights, business ethics, business
conduct and supply chain sustainability, are included in the
ERM framework.

We assess how sustainability relates to business risks,
such as legal proceedings, regulatory changes, contingent
liabilities, supply chain disruptions and operational disrup-
tions. Furthermore, there are relevant corporate standards
for topics such as site risk management, loss prevention,
emergency procedures, business contingency planning
and physical security. A more detailed description of Autoliv’s
material operational, strategic and financial risks, including
sustainability-related risks, can be found in the “Risk Fac-
tors” and “Risks and Risk Management” sections of the
10-K filed with the SEC. More information on climate-related
risks can be found in the TCFD disclosure, on pages 48-49.

Sustainability Governance

Board of Directors

Nominating & Corporate Governance Committee

Executive Management Team

Sustainability Board

EVP, HR & Sustainability

VP, Sustainability

Organization

Functions

Divisions

All employees

SUSTAINABILITY

Ambition:

Road Safety
– a Global
Challenge

100,000

Lives saved per year

2023 outcome:
35,000 lives saved
More than 450,000 injuries reduced

As the global leader in automotive safety,
our core business, supported by multi-level
stakeholder engagement, is making a signif-
icant contribution to global road safety.

When the UN Sustainable Development Goals (SDGs)
were launched, road safety was made a global priority for
good reason: according to the WHO global status report on
road safety 2023, around 1.2 million people die in traffic in-
cidents every year, a figure likely to increase significantly un-
less disruptive action is taken. According to the World Health
Organization (WHO), road traffic injuries are the leading
cause of death among young people between the ages of 5
and 29. As well as being a public health problem, road traffic
injuries carry a huge cost for society: according to some

estimates, the global macroeconomic cost of road traffic in-
juries is around 10% of global GDP. Many families are driven
into poverty by the loss of a breadwinner or by the expenses
of prolonged medical care.

In August 2020, the UN General Assembly adopted
the resolution "Improving global road safety", proclaiming
the Second Decade of Action for Road Safety 2021-2030.
The target, represented as SDG 3.6, is to reduce road traf-
fic deaths and injuries by at least 50% by 2030. According
to the resolution, vehicle safety is a key component and
member states are encouraged to adopt vehicle safety
regulations that make seatbelts, airbags and active safety
systems standard equipment. In addition to safer vehicles,
infrastructure improvements, road user behavior and pro-
tective equipment are also key to achieving the target.

Safe System Approach

The countries most successful in curbing road traffic
injuries apply a Safe System Approach - a combina-
tion of five critical factors underpinned by collaboration
between key stakeholders:

• Safe vehicles

• Safe speeds

• Safe roads

• Safe road user behavior

• Post-crash care

Share of global population, road traffic deaths, paved inter-urban roads, and registered
motor vehicles, by country income level, 2021

16%

13%

43%

32%

44%

35%

<1%

28%

38%

34%

<1%

10%

88%

Population

Estimated road fatalities

Powered vehicles

Paved roads 1)

High-income

Upper middle-income

Lower middle-income

Low-income

1) Excludes expressways

Our ambition and approach
Saving More Lives is our core business and our most im-
portant contribution to sustainable development and the
realization of SDG 3.6. According to our estimations, our
products in use already save 35,000 lives and reduce more
than 450,000 injuries every year. Our long-term ambition is
for our products to save 100,000 lives per year. Achieving
this ambition is based on:

• Retaining our strong market position and continuing to
grow in our core business, including increasing content
per vehicle. This needs to be done while maintaining the
highest level of quality as our products never get a second
chance.

• Successfully expanding our business in new mobility seg-
ments aimed at motorcyclists, cyclists and pedestrians

• Proactively broadening the scope of research and devel-
opment to also cover a wider range of occupant protec-
tion parameters regarding height, weight, age and gender

•

Increased multi-stakeholder efforts, in particular educa-
tion to increase seatbelt use since seatbelts are the most
effective way of reducing fatalities and serious injuries

Read more about our innovation agenda on pages 24-27.

Research and development collaborations
We proactively engage with national and international au-
thorities as well as academia to further our impact. Below
are some examples of our collaborations during 2023.

• Research and development for improved motorcyclist
safety continued in close dialogue with customers and
partners. In addition to in-vehicle solutions, we are also

Source: WHO global status report on road safety 2023.

exploring how to increase the comfort and safety of per-
sonal protective equipment, such as helmets with integrat-
ed airbags that provide improved protection of the head
and face and inflatable vests that improve protection of the
thorax and shoulders.

• To reach SDG 3.6, there is a need to accelerate technol-
ogy adoption and a Safe System Approach in develop-
ing countries. Even though Africa has only a few percent
of the total motor vehicles in the world, more than 10% of
traffic fatalities globally occur on African roads. Together
with a regional Non Governmental Organisation (NGO)
and other partners, Autoliv works in the project AfroSAFE
to promote the Safe System Approach, build connections
with key stakeholders and provide guidance on minimum
safety standards.

• Autoliv is a member of the multi-stakeholder Research
Consortium for Crashworthiness in Automated Driving
Systems, which aims to collaboratively work towards vali-
dation methods for automated driving systems. We are
also part of an Massachusetts Institute of Technology
(MIT) consortium on Advanced Vehicle Technology to bet-
ter understand and increase safety related to automated
driving.

• Around 15% of the over 8,000 car occupant fatalities in
the EU in 2020 occurred in crashes with Heavy Goods
Vehicles (HGVs). In addition to supporting the Swedish
Transport Administration with collision testing, Autoliv en-
gaged in research around relevant injury criteria together
with University of Virginia and potential protection systems
together with Chalmers University of Technology, Volvo
AB and the Swedish Transport Administration.

SUSTAINABILITY

•

In 2023, the UN created a working group to revise the UN
vehicle safety regulations regarding occupant protection.
The group's role is to determine how greater diversity in
terms of representation of crashes and occupants should
be implemented in crash safety regulations, and to as-
sess virtual crash testing as a method to further improve
equity in occupant protection. The group gathers around
50 participants and, as a member, Autoliv is actively con-
tributing with relevant research findings and know-how.

More information about our engagement in industry asso-
ciations and other organizations is available in Materiality
Assessment on pages 36-37.

Collaboration with universities
To ensure real-life benefits and to develop evidence-based
test methods for product development, Autoliv engages in
collaboration with universities globally. One such collabora-
tion relates to Vulnerable Road Users (VRUs).

Equity in
vehicle safety

Autoliv is a forerunner in the emerging area of equity in
vehicle safety. Current occupant substitutes used for esti-
mating injury risk in crash testing are limited to three sizes
representing small, mid-size and large occupants, based on
1970’s U.S. population height and weight distributions. The
mid-size male has historically been the one most frequently
used in rating and regulatory testing. However, over the past
decades, there has been a consistent trend of increasing
population weight. Car crash injury statistics highlight that
both obese male and female occupants are at increased
risk of injury and death when compared to average weight
males. Beyond sex and size, injury and fatality risks in-
crease substantially with age.

Autoliv researchers have looked upon safety-belt fit as an
important safety aspect for many years, and how safety
belts distribute forces on human bodies. Our hypothesis
is that the belt system and how it distributes load on the
body to protect people can still be developed further, pro-
vided that next generation tools and evaluation methods

To be able to better protect VRUs, several studies have
been initiated during last year with focus on two-wheelers.
Current helmet standards and ratings do not consider the
complexity of neither facial impact protection performance
nor Traumatic Brain Injury (TBI). Both virtual and physical
test methods are being developed and newly developed
brain injury assessment tools and injury-specific risk func-
tions will be used for evaluation and optimization of safety
systems. In this area, we collaborate with the Royal Institute
of Technology in Sweden, and Imperial College London,
and a Swedish helmet manufacturer with the aim of influ-
encing standards and ratings.

become ready to use and widely accepted. For this rea-
son, to enable the development of safety systems that are
as effective as possible for everyone, Autoliv is actively
researching tools and methods that can be used to repre-
sent the contemporary population in different crash sce-
narios, for example through virtual crash testing with human
body models representing the population variability in age,
height, and weight for both males and females.

According to research, the seatbelt is the
top life-saving device, belts alone reduce
occupant fatalities by 45%.

1) Kahane, 2015

Ambitions:

Climate and
Circularity

Carbon neutrality
in own operations

Net-zero emissions
across our supply chain

Targets:

Carbon
neutrality
in own operations
by 2030

2023 Outcome:
358 kton CO2e

Year-on-year
improvement in
energy intensity
Continuous

2023 Outcome:
3% improvement

Year-on-year
reduction
in waste
Continuous

2023 Outcome:
12% increase

Autoliv’s approach aims to reduce green-
house gas (GHG) emissions and increase
circular use of materials, also supporting its
customers’ transition to lowcarbon friendly
mobility.

Ambition and approach
We are committed to operating our business in an en-
into account
vironmentally sustainable manner, taking
life-cycle of
impact throughout the
our environmental
sourcing, design, production and end of life. Our key en-
vironmental impacts are (GHG) emissions, energy use,
waste generation and water use. With particular empha-
sis on climate action, we actively engage with customers,
suppliers and other stakeholders to take on the decarboni-
zation challenge across the value chain and drive sustain-
able mobility.

Environmental management
Autoliv’s environmental management system (EMS) em-
phasizes continuous improvement and is aligned with ISO
14001 requirements. The EMS establishes the require-
ments for a standardized approach to environmental man-
agement, including identification of material environmental
aspects, objective setting, competence development, per-
formance follow-up and standardized reporting. At year end,
92% of all manufacturing facilities were externally certified
in accordance with ISO 14001.

Climate action
In 2021, we launched an updated climate strategy including
new long-term climate target and ambition:
• Carbon neutrality in own operations by 2030
• Net-zero emissions across our supply chain by 2040

These climate ambitions, aligned with a 1.5°C trajectory,
helping to ensure our competitiveness now and in the future.

SUSTAINABILITY

In addition to these ambitions, we have adopted separate
Science Based Targets for 2030 covering our own opera-
tions (Scope 1+2) as well as our supply chain (Scope 3 up-
stream). More information about the targets is available on
page 60.

Our GHG footprint
To fully understand our GHG footprint as well as key climate-
related risks and opportunities, we carried out a value chain
GHG footprint assessment and scenario analysis in 2021.
The assessment was carried out in accordance with the
GHG Protocol Scope 3 Calculation Guidance. Scope 1 + 2
emissions were calculated based on actual operational data
covering energy consumption and fugitive emissions,while

Scope 3 emissions were modelled based on actual and es-
timated sourcing data and generic emission factors.

The assessment showed that for the emissions covered
by our long-term ambitions, materials used in our production
(in particular steel, textiles and other plastics, and magne-
sium) were the largest contributors, followed by emissions
from logistics and electricity used in our own operations.
Downstream Scope 3 emissions, in particular use-phase
emissions, constituted the largest share of the total GHG
footprint. Since we consider our possibility to reduce down-
stream Scope 3 emissions to be greatly limited (such reduc-
tions are mainly driven by our customers' work on electrifica-
tion), they are excluded from our long-term ambitions and
Science Based Target covering Scope 3.

Autoliv’s GHG footprint across own operations and our supply chain¹ 2023 (kton CO2e)

3,070 (74%)

460 (11%)

240 (6%)

100 (2%)

260 (6%)

4,130 (100%)

Scope 1

Scope 2

Scope 3¹:
Purchased goods
and services

Scope 3¹:
Upstream
transportation

Scope 3¹:
Other upstream

Total

Own operations

Upstream activities

GHG emissions
from fossil fuels and
fugitive emissions in
operations

GHG emissions
from purchased
electricity, heat and
steam in operations

GHG emissions
from materials used
in products and
packaging
(Scope 3 Category 1)

GHG emissions
from upstream
transportation
(Scope 3 Category 4)

GHG emissions
from business travel,
employee commuting
and more (Scope 3
Categories 2, 3, 5, 6, 7)

1) Considering the challenges related to accurately modelling upstream Scope 3 emissions, such as the accuracy of historical data and the availability and applicability of emission fac-
tors, actual upstream Scope 3 emissions may differ materially from those modelled. The modelling primarily aims to identify the major sources of Scope 3 emissions across the value
chain, which supports Autoliv in developing specific activities for improvement and implementing the relevant measures. Autoliv aims to, over time, increase the accuracy of reported
upstream Scope 3 emissions by addressing material uncertainties. The illustration above does not include modelled downstream Scope 3 emissions, which include emissions from the
use phase of vehicles where Autoliv's products are installed.

Autoliv's climate program
Based on the results of the GHG footprint assessment, we
designed a climate program organized into a number of op-
erational initiatives focusing on the most important decar-
bonization levers or value creation and enabling activities.
A number of cross-cutting initiatives related to governance,
performance measurement, business strategy integration,
risk management and competence development support
the operational initiatives. Guided by our 1.5°C aligned long-
term ambitions, the climate program and related processes
such as risk assessments represent Autoliv’s low-carbon
transition plan.

Decarbonization levers
The most impactful decarbonization levers identified within
our own operations include:

• Transitioning to low-carbon electricity at our facilities us-
ing a mix of on-site solar generation, long-term Power
Purchase Agreements (PPA), Renewable Energy Cer-
tificates (REC) and Energy Attribute Certificates (EAC)

• Continued focus on energy and materials efficiency

• Phasing out current fossil-fuel equipment such as natu-

ral gas furnaces with electric alternatives

• Phasing out fugitive emissions

Low-Carbon1) Supply Chain

Low-Carbon1) and Efficient Operations

Low-Carbon1) Product Offering

Low-carbon electricity in the
supply chain

Low-carbon material sourcing

Low-carbon logistics

Energy and resource efficiency

Low-carbon product design

Phase-down of natural gas equipment

Low-carbon sales strategy

Elimination of fugitive emissions

Renewable energy for operations

Cross-Cutting initiatives

Program governance
and performance
measurement

Business strategy
integration

Risk management

Organization and compe-
tence development

Key initiatives that we intend to implement to reach net-zero
emissions across our supply chain include:

• Transitioning to recycled, bio-based and other low-car-
bon materials in our products as well as in packaging

• Requiring our suppliers to use low-carbon electricity in

their production

• Reducing the GHG footprint of our logistics through
route, capacity and footprint optimization as well as a
shift towards low-carbon transportation modes and ve-
hicles

Below is a summary of some of the work and key achieve-
ments within the program during the year.

Low-carbon supply chain
In 2023, we carried out our regular climate survey to our
direct material suppliers, with the purpose of better under-
standing the current situation at our supply base: if suppliers
can quantify their GHG emissions, whether they are using re-
newable electricity, and whether their climate-related targets
and roadmaps are aligned with Autoliv’s net-zero ambition.
We also released our Sustainable Sourcing Requirements
for direct material suppliers, that include climate-related re-
quirements and expectations such as renewable electricity
targets by 2024, 2025 and 2030.

Low-carbon materials are crucial to meet our GHG emis-
sion reduction targets. In 2023, we engaged with a broad
range of raw material suppliers on sustainable material
solutions, to systematically review and validate options for
increasing the recycled content, bio-based and low-carbon
materials in our product. Examples covering key materials
include:

• Textiles: We are assessing low-carbon alternatives
based on higher recycled content or bio-based mate-
rials, prioritizing new materials interchangeable with
currently used materials

• Steel: In addition to a fossil-free steel partnership with
SSAB, we made progress on a broader low and fossil-
free steel buying program

• Magnesium: an estimated 20% of purchased magne-
sium came from recycled sources, a significant improve-
ment from an estimated less than 5% in 2022

In the low carbon logistics program, focus is on shifting
transportation from air to sea, optimizing routes and im-
proving capacity utilization. During the year, we continued
work on developing division-level strategies based on local
conditions, and set emissions reduction targets for logistics
and packaging. We also carried out successful local pilots in
Asia using hydrogen fuel cell and electric light goods vehi-
cles as well as low-carbon packaging solutions with biode-
gradable bags replacing plastic bags.

Low-carbon and efficient operations
With a focus on renewable electricity, we expanded purchas-
ing of renewable electricity and initiated a long-term solar
PPA agreement in the U.S. In 2023, 23% of our total elec-
tricity consumption came from renewable instruments, up
from 13% in 2022. In addition to renewable electricity instru-
ments, several production have installed or are in the pro-
cess of installing on-site solar generation capacity. While still
representing less than 1% of our total energy consumption,
we are working to grow this share over the coming years.

As part of our Green Factory Program, we regularly con-
duct assessments covering energy, water and waste in order
to continuously improve environmental performance in our
operations. To ensure better integration of our climate pro-
gram into our operations, these assessments were made an
integral part of Autoliv’s operational excellence assessment.
As part of the program, we set site-level targets for GHG
emissions and energy intensity for all manufacturing sites.
With a greater focus on energy, we implemented a num-
ber of energy efficiency projects in all divisions during the

1) Low-carbon is generally understood as referring to actions/solutions that reduce carbon emissions aligned with limiting global warming to 1.5 degrees Celsius.

SUSTAINABILITY

In addition to renewable electricity instruments, many sites have
installed or are in the process of installing on-site solar generation
capacity. Here represented by Autoliv in Utah, U.S.

year, targeting areas such as air compressor leaks, waste
heat recovery, installing LED lighting, and replacing older
equipment with new, more efficient equipment. We im-
proved the operational energy intensity, measured as total
energy consumption per part delivered, by 3% compared to
2022. We also conducted energy management workshops
and trainings in different divisions.

To reduce our GHG emissions from natural gas in the
production processes, we undertook several studies and
trials to assess the potential for energy efficiency improve-
ment, e.g. from gas reduction and heat recovery, and
electrification of some equipment. The trials were conduct-
ed to ensure that any abatement measures do not compro-
mise product quality. Preliminary results showed significant
improvement potential for some equipment, to be further
assessed and implemented where feasible.

Sulfur hexafluoride (SF6 ), used in steering wheel pro-
duction, is our largest source of fugitive emissions, mak-
ing up around 6% of Autoliv’s total Scope 1+2 emissions.
We launched an action plan in 2022 to fully phase out the
remaining use of SF₆. As a first step, SF₆ emissions were
reduced in 2023.

Despite an increase in total energy consumption, our ef-
forts in particular in increasing renewable electricity use and
SF6 phase-out combined with updated emission factors
lead to a 17% decrease in Scope 1+2 emissons compared
to 2022.

Low-carbon product offerings
Our ambition is to develop attractive, low-carbon product
offerings to support our customers in their transition to zero-
emission, low environmental impact vehicles. We are see-
ing constantly increasing ambition levels among our cus-
tomers who are increasing requirements on us as a supplier.
During the year, all product lines developed action plans
for net-zero aligned product roadmaps as well as set emis-
sions reduction targets. We continued our work to evalu-
ate our products’ overall environmental footprint through-
out their life cycle. These life-cycle assessments (LCAs)
help prioritize actions in product development such as
light-weighting and sourcing of low-carbon materials. The
LCAs also allow us to proactively engage with customers,
highlighting the carbon footprint of our products and how
embedded emissions can be reduced. We already offer
our customers specific products that support their carbon
footprint reduction strategies, such as products with lower
weight and higher content of recycled non-ferrous metals
and low-carbon polymers. Examples include increased use
of recycled magnesium and switching to textile fabrics with
a significantly lower GHG footprint.

Cross-cutting initiatives
During the year, we extended our climate program train-
ing to also include mid-level management and employees
across divisions and corporate functions.

We continued the
implementation of our Sustainabil-
ity Guidelines for Capex investments, with specific climate
impact guidance and assessment. The guidelines aim to
ensure that all investments are aligned with our 2030 cli-
mate ambitions and specify exclusion criteria for invest-
ments that could lead to increased GHG emissions above
certain emission thresholds beyond 2030. The guidelines
also encourage investments with positive climate impact,
such as, installation of solar panels, improvements to ener-
gy efficiency, and replacement of fossil-fuel equipment with
electric alternatives.

To strengthen our capacity for accurate and transparent
GHG accounting and forecasting, we are implementing a
corporate-wide GHG accounting solution covering both our
own operations and Scope 3 upstream activities with focus
on direct materials and logistics. The solution enables better
product carbon footprinting and target setting, and helps us
track both climate and financial impacts of a large number
of projects. During the year, we trained and onboarded 340
users across the organization and began tracking over 200
projects.

Read more about climate-related governance and risk

management in the TCFD disclosure, pages 48-49.

Circularity and natural resources
Waste and circularity
In 2023, we expanded our approach to natural resources
management in our own operations and value chain with the
aim of implementing a comprehensive circularity approach.
We undertook an assessment to evaluate our circularity-re-
lated risks and opportunities, in order to set our priorities for
the coming years. As part of the assessment, we evaluated
our current status and identified a large number of potential
circularity initiatives in three key areas:

• materials recirculation, including share of recycled content
in input materials

• materials efficiency, including materials utilization and
lightweighting rate

• product utilization rate, ensuring the lifetime of our product
lasts the lifetime of a vehicle

Identified initiatives include, for example, circular prod-
uct design principles, scrap optimization in the supply chain
and within our operations for key input materials, further
improvements in lightweighting, closed loop processes for
select materials, increased recycled inputs for strategic
materials, and packaging optimization and reuse. The work
continues in 2024 with the aim of finalizing our circularity
strategy including further validating and prioritizing the op-
portunities and risks identified, setting our ambition and de-
fining the roadmap.

We continuously manage and monitor waste manage-
ment practices at site level through the Green Factory pro-
gram, in which waste management is part of the quarterly
assessment. Directing waste away from landfill remains a

priority at our production sites. The rate of reuse, recycling
and energy recovery increased to 91% (90% in 2022) of to-
tal waste reported.

Water
Our most water intensive operations are associated with the
production of airbag components, accounting for around
60% of water withdrawal. Based on the WRI Aqueduct Wa-
ter Risk Atlas, around 20% of Autoliv’s facilities are located
in regions with high or extremely high water stress levels.
Nevertheless, only one of the ten most water intensive pro-
duction sites is located in high water stress region.

During the year, we conducted water footprint analysis
within our own operations and across key raw materials val-
ue chain as well as water risk assessments for our facilities.
Based on the ENCORE sectoral water impact methodol-
ogy, the largest water footprint in the value chain came from
steel, aluminium and textiles (PET).

Biodiversity
To better understand our impact on biodiversity, we con-
ducted an initial assessment on biodiversity risks and de-
pendencies, both faced by and associated with our opera-
tions, and related to our supply chain. The assessment was
based on both the recommended approach from the Task-
force for Nature-related Financial Disclosures (TNFD) and
EU Corporate Sustainability Reporting Directive. Using an
established methodology (LEAP) and tool (ENCORE), we
performed an initial screening of biodiversity risks at all our
manufacturing sites and and certain materials value chains.
Based on the initial results, we then conducted a more de-
tailed assessment of biodiversity impacts and dependen-
cies on select Autoliv sites and raw materials supply chains.
In 2024, we will continue assessing biodiversity with the
overall goal of implementing key aspects into existing pro-
cesses such as environmental impact assessments.

Materials management and substances of concern
For Autoliv as a global automotive component manufac-
turer, compliance with chemical and material regulations is
essential for our business. At the core is our standard that
defines Autoliv's requirements for material data reporting
and substance use restrictions, applicable for both Autoliv
and its suppliers. This standard is updated twice a year to
reflect the latest legal and customer requirements. Through
reporting to the automotive industry databases IMDS and
CAMDS, we trace the content in our components delivered
to customers and confirm compliance regarding applicable
legal and customer requirements.

We follow up continuously with our suppliers to find al-
ternative materials in case a substance needs to be phased
out. In 2023, special efforts were devoted to identifying
PFAS used in our parts and assessing suitable alternatives.

SUSTAINABILITY

TCFD Disclosure

Autoliv considers the management of cli-
mate-related risks and opportunities to be a
key component of ensuring long-term busi-
ness success. This disclosure is aligned with
the Task Force on Climate-Related Financial
Disclosures (TCFD) recommendations.

Governance
The Board of Directors is ultimately responsible for the over-
sight of sustainability-related matters, including climate
change, and has delegated certain responsibilities to its
committees. The Board of Directors and the Nominating
and Corporate Governance Committee (NCGC) receive
regular updates on climate-related matters and perfor-
mance. In 2021, the Board of Directors endorsed Autoliv’s
current long-term climate ambitions as well as the strategic
direction for reaching the ambitions. Throughout 2023, the
Board and NCGC received updates on progress related to
the climate program and our plans for 2024.

The Executive Management Team (EMT) is respon-
sible for implementation of sustainability-related matters,
including climate change. The Sustainability Board, which
consists of the CEO and several EMT members, has over-
all operational oversight of Autoliv's climate program. Other
relevant Management Boards, such as the Industrial & Prod-
uct Board, Innovation Board and Commercial Board, focus
on specific climate program initiatives such as low-carbon
product design. Performance against climate-related targets

is reviewed regularly by the EMT, divisional and other func-
tional management teams and followed up in monthly busi-
ness reviews. The underlying governance principle of the
climate program is close integration into existing govern-
ance structures.

Supported by the VP Sustainability, the Executive Vice
President HR & Sustainability, is ultimately responsible for
the overall direction and governance of the program, and for
ensuring implementation progress.

For more information about sustainability governance,

see pages 38-39.

Strategy
Scenario analysis
In 2021, as part of the development of the updated climate
strategy, we carried out our first climate scenario analysis.
The analysis, which covered both transition and physical
risks, was based on a 2°C (equivalent to RCP 4.5) sce-
nario and a 3-4°C (equivalent to RCP 8.5) scenario. Transi-
tion risks were assessed on a 2030-2040 timeframe, while
physical risks were assessed on a 2050 timeframe.

From a financial impact perspective, the most material tran-
sition risks identified were:

•

the risk of a global decrease in overall vehicles sales

increasing prices for raw materials with a large carbon foot-
print as a result of various carbon pricing mechanisms

• potential revenue loss if Autoliv fails to meet increasingly
strict supplier requirements from OEMs who themselves
have set strict GHG emissions reduction targets

Climate risk assessment

Transition risks

Policy and legal

Technology

Market

Reputational

Physical risks

Acute/short term

Chronic/long term

Most material risks

Potential financial impacts

Carbon pricing mechanisms leading to
increasing prices for raw materials with a
large carbon footprint

Increased Opex

Decrease in overall vehicle sales

Loss of revenue

Higher demand for renewable electricity
and low-carbon raw materials

Increased Opex

Increasing stakeholder requirements or
expectations on Autoliv to aggressively re-
duce GHG emissions in its own operations
and/or supply chain

Loss of revenue, reduced
access to capital

Wildfires
Extreme heat
Flooding

Extreme heat
Water stress

Loss of revenue related to production
disruptions
Disruption to water and energy supply

Costs related to the need to relocate
production

The most material physical risks identified, generally con-
nected to a 3-4°C scenario, were factors that would lead to
significant production disruptions. These include wildfires,
flooding and extreme heat. These risks were seen as par-
ticularly high in countries and regions such as the South-
west U.S., Mexico, India and China. These risks are also ex-
pected to impact suppliers and customers in these regions.
The most material opportunities identified pertained
to building a strong position among climate-progressive
OEMs including electric vehicel (EV) manufacturers as a
supplier of low-carbon components as well as opportunities
to increase operational energy and materials efficiency.

Strategy and business impact integration
Climate change is integrated into Autoliv’s business strate-
gy, which is cascaded through established steering mecha-
nisms such as annual business planning and target setting.
To realize key climate-related business opportunities,
we are continuously working on low-carbon product offer-
ings and forming partnerships with customers to help them
reduce the carbon footprint of their products. In addition, ef-
forts to increase the energy and materials efficiency of our
operations will support in reducing related Opex. As part of
our climate transition plan, we aim to gradually further devel-
op and use scenarios as a supporting tool in quantifying the
financial impacts of climate-related risks and opportunities,
including setting a price on carbon and other climate-related
financial KPIs.

Autoliv's strategic plan was updated in 2022, covering
the years 2023-2025. Climate is included as one of the focus

areas in the strategic plan. During 2023, we focused on fur-
ther integrating climate considerations into the company's
strategic product planning process and other key process-
es, such as Capex decisions.

Risk management
Climate-related risks are generally integrated into the En-
terprise Risk Management (ERM) process. For more infor-
mation about ERM and management of sustainability risks,
see pages 38-39.

Transition risks are generally considered mitigated
through continuous legal and market intelligence reviews,
sales forecasting and external stakeholder engagement.
Physical risks are generally considered mitigated through
site risk and impact assessments as well as ongoing busi-
ness continuity management.

Metrics and targets
In addition to Autoliv's long-term ambitions and Science
Based Targets, the climate program covers a number of
more detailed performance metrics and related targets.
These cover the most important emissions reduction levers
such as sourcing of low-carbon raw materials, low-carbon
logistics and a transition towards renewable electricity use.

Since 2022, GHG emissions from own operations
(Scope 1+2) is a performance component to the long-term
equity incentive program. The program covers around 300
participants, including the CEO and all EMT members.
For more information on GHG emissions and target out-
comes, see pages 61-62.

SUSTAINABILITY

A Safe and
Inclusive
Workplace

Ambitions:

Zero accidents
Embrace inclusive
ways of working

Targets:

0.35

Incident Rate
by 2024

reported unsafe act
or condition per
employee per year

95%

of senior and mid-level
management trained in
unconscious bias by 2023

Year-on-year
improvement in
Employee
experience
Continuous

2023 Outcome:
Decrease

22%

women in senior
management by 2024

2023 Outcome:
19%

2023 Outcome:
0.381)

2023 Outcome:
1.4

2023 Outcome:
96%

1) See comments under Changes and corrections on page 60.

Health, safety, and inclusion are pillars of
our people strategy, ensuring that we create
value from and for our most valuable asset -
our employees.

Health and Safety
Our ambition and approach
Autoliv is committed to providing safe and healthy working
conditions for our employees and contractors. We believe
that work-related injuries and illnesses are preventable and
continually strive to eliminate all workplace accidents. The
responsibility for health and safety (H&S) starts with senior
management. All employees share a responsibility for iden-
tifying and eliminating unsafe conditions and behaviors and
speaking up.

Health and safety management system
We make H&S an integral part of everyday business by
integrating H&S into our production system and all our

projects and processes that may affect the working environ-
ment of our employees. All production sites are required to
implement Autoliv’s health and safety management system
(HSMS), which is aligned with ISO 45001 requirements.
The cornerstone of our HSMS is the global safety assess-
ment that is an integrated part of the Autoliv Production
System. These quarterly assessments establish the princi-
ples and internal standards by which H&S activities and op-
erations are managed, provide a factual basis for identifying
significant hazards and risks, and support in implementing
continuous improvement activities to eliminate or mitigate
these hazards and risks.

The HSMS is supported by local leadership teams who
encourage operators and visitors to engage in and proac-
tively speak up about health and safety concerns and to
take responsibility for safety. Implementation of the system
is monitored through internal audits and external certifica-
tion audits. At year end, 61% of production sites were ISO
45001 certified.

Autoliv's H&S work principles

Leadership
commitment
Leaders at all levels of the
organization are ac-
tively involved in creating
a behavior that supports
and promotes strong H&S
performance and continu-
ous improvement.

Employee
involvement
Employees are actively
engaged in all aspects of
H&S performance, including
establishing goals, identify-
ing and reporting hazards/
risks, investigating incidents
and tracking progress.

Workplace safety
is a condition
for employment
Every employee is
responsible for
contributing to their
own workplace safety.

Recognition
and control
of risks
Processes and procedures
are implemented to pro-
actively identify, prevent,
reduce and/or control
potential hazards/risks.

Continuous
improvement
Processes and proce-
dures are implemented
to monitor H&S, verify
implementation, identify
defects and provide
opportunities for
improvement.

As part of our continuous focus on accident prevention, we
are continuously expanding the use of leading H&S indica-
tors. In 2022, we added identified unsafe acts and condi-
tions to monthly management reporting and during 2023,
the reporting of unsafe acts and conditions significantly in-
creased surpassing the target of 1 per employee. This re-
flects an increased awareness of the importance of report-
ing safety issues.

H&S training and awareness building
During 2023, H&S continued to be a key topic at EMT and
Divisional Management Team meetings. Leadership safety
training continued throughout the year and in 2024 the train-
ing will be deployed to team leaders in operations. All em-
ployees working in production are trained in relevant H&S
topics and H&S is included as a mandatory item in daily
team meetings. In addition, they are trained in the use of
on-site H&S reporting tools and empowered to immediately
stop production if an actual or potential serious risk is identi-
fied.

Focus on high-risk activities
During 2023, we continued the focus on high-risk activi-
ties within our operations. To better control these risks, we
have developed and implemented internal standards cov-
ering a number of high-risk areas:

• Working at height
• Lock-out/tag-out
• Traffic safety
• Machine safety
• Lifting and rigging
• Contractor safety

These standards are implemented and followed up through
the global safety assessment.

We are increasingly focusing on incidents that could have
resulted in a serious injury or fatality. All such incidents are
reviewed by the responsible management team and shared
globally so that measures can be put in place to prevent re-
peat incidents.

Inclusion
Our ambition and approach
Inclusive ways of working are an asset and a fundamen-
tal part of the Autoliv Key Behaviors that were launched in
2021. Including a multitude of perspectives is an integral
aspect of successful decision-making in all parts of the or-
ganization and helps drive innovation and create long-term
sustainable shareholder value in a rapidly changing industry.
We believe that everyone should be respected and treated
fairly, and we are committed to providing an inclusive and di-
verse workplace where everyone can be themselves, deliver
results and bring their authentic selves to work.

Activities during the year
During 2023, we continued our activities to deliver on inclu-
sion targets, including a focus on increasing the share of
women in management. While we did not meet our target
for the share of women in senior management compared to
2022, we took important steps to create a more diverse can-
didate base, and began to use scientific selection methods
to increase objectivity in both internal and external recruit-
ment. We also continued unconscious bias training for sen-
ior and middle management to enhance managers’ insight
and ability to take diversity into account in everyday work.

Measuring inclusion and Employee Experience
The company-wide quarterly employee survey includes
statements that measure key aspects of an inclusive work
environment including: whether employees feel that they
can be themselves at work (“Authenticity”) and whether they
have the same opportunity to advance in the organization
(“Perceived fairness”). The scores were lower in 2023 com-
pared to 2022, largely attributable to a general decrease in
employee sentiment related to organizational changes im-
plemented from the second quarter. Women were, in gen-
eral, more positive than men and had a more positive per-
ception of inclusion within the company.

For more information about employee development, see

pages 32-33.

SUSTAINABILITY

Ambitions:

Responsible
Business

Proactively prevent corruption and
other unethical business practices

Respect human rights

Manage supply chain
sustainability risks

Targets:

100%

of target group completed
Antitrust training
Continuous

100%

of target group Code
of Conduct certified
Continuous

100%

direct material suppliers
sustainability audited
Continuous

100%

direct material suppliers respond
to conflict minerals survey
Continuous

2023 Outcome:
98%

2023 Outcome:
93%

2023 Outcome:
99%

2023 Outcome:
97%

Responsible business practices are key in
ensuring that we understand the impacts of
our business operations, comply with laws
and regulations, and meet stakeholder ex-
pectations.

Our Responsible Business strategy
Responsible business is a fundamental element of Autoliv’s
sustainability framework. To recruit and retain the best talent
and to build enduring relationships with our customers and
suppliers, it is essential that Autoliv is known for the quality
and integrity of its conduct as well as its products and ser-
vices. Through our approach to responsible business, we
work to continually strengthen how we:

• Proactively prevent corruption and other illegal or
unethical business practices wherever we operate

• Respect human rights across our value chain

• Manage sustainability risks and impacts across our

supply chain

Code of Conduct

Saving Lives
with Integrity

Compliance and Corporate Integrity
Autoliv’s Compliance and Corporate Integrity Program

Autoliv’s compliance program is designed in accordance
with a number of frameworks and best practice guidance,
such as guidelines for effective compliance programs under
the Organizational Guidelines issued by the U.S. Sentenc-
ing Commission, the U.S. Department of Justice - Evalua-
tion of Corporate Compliance Programs, and the UK Bribery
Act Guidance. The program serves to ensure that adequate
procedures are in place to prevent Autoliv from taking part in
any corrupt business practices, or other illegal and unethical
behavior, and that the company adheres to applicable laws
and regulations. The program also drives compliance with
relevant standards including the Autoliv Code of Conduct,
as well as corporate standards.

Leading with Integrity
Leading with Integrity is at the core of Autoliv’s Compliance
and Corporate Integrity program. We strongly believe that
leaders play the most important role in enabling, inspiring,
and making it easy for employees to make responsible deci-
sions. They also play an important role in fostering an open
and transparent culture where all employees feel safe and
encouraged to Speak Up. In 2023, we launched a number
of initiatives under the “Leading with Integrity” umbrella. For
example, we introduced the Leading with Integrity Library,
which provides helpful resources and ready-to-use material

Compliance and Corporate Integrity Program

for leaders. Resources include Listen Up Leaders – creating
a speak up culture, Respect in the Workplace workshop ma-
terial, leader-led discussions about the purpose of our Code
of Conduct as well as the “Integrity Check” game.

Saving Lives with Integrity: Our Code of Conduct
In 2022, Autoliv introduced a revised Code of Conduct. Sev-
eral training courses and activities were arranged through-
out 2023 with the aim to increase awareness of the new
Code of Conduct. These included leader-led discussions
focused on different aspects of our Code, responsible busi-
ness approach and Code of Conduct training specifically for
production staff.

Autoliv’s onboarding process for new employees in-
cludes an introduction to the Code of Conduct through
team-based discussions on the role of our Code, our In-
tegrity Check, what we should expect from each other, and
speaking up. During 2023, over 8,000 new employees par-
ticipated in face-to-face Code of Conduct trainings. In addi-
tion, a new Code of Conduct e-learning was developed dur-
ing the year, to be rolled out to all non-production employees
in 2024.

Each year, all Autoliv employees in a leadership role
must complete a Code of Conduct certification. The certi-
fication requires the disclosure of known violations of the
Code and an acknowledgement that the leaders are aware
of and promote the Code to their teams. At year end, 93% of
target group employees had completed certification.

Colleagues at Autoliv in Shanghai, China.

SUSTAINABILITY

Autoliv's
Integrity
Check

If you answer any of these questions with a “no” or “I’m
not sure”, pause and seek additional guidance.

Do I
have all the
information to
support a good
decision?

Do I still
feel proud of
myself and
Autoliv?

Is it legal
and consistent
with our
Code?

Part of the training related to our Code of Conduct is an
interactive game – Integrity Check. The aim is to help em-
ployees get a deeper understanding and inspire discussions
about decision making with integrity in a new and engaging
way. The roll-out of the game is ongoing and will continue
during 2024 with the aim that all top management leaders
should complete the game activity with their teams.

Do I know
how to explain
the decision
to those
impacted?

Have I
discussed
with the right
people?

Anti-corruption
At Autoliv, we compete vigorously and effectively while al-
ways complying with applicable anti-corruption laws. We
have zero tolerance for any form of corruption in our busi-
ness dealings and expect the same standards from our
business partners. Our anti-corruption program is intended
to support the principles in the Autoliv Code of Conduct and
internal anti-corruption policy by providing employees guid-
ance with regards to:

• Avoiding corruption and bribery

• Proper interaction with public officials

• Guidance on gifts and hospitality

• Charitable donations and sponsorships

• How to manage risks relating to third parties

We perform due diligence on all high-risk third-party relation-
ships and apply risk-based controls to support our third par-
ties in applying our anti-corruption commitments. In 2023,
work continued to strengthen the due diligence process for
suppliers.

We use a combination of face-to-face workshops and
virtual training to maintain anti-corruption awareness and

knowledge for certain employees within functions with in-
creased risk exposure. Anti-corruption training is mandatory
for selected employees in functions with high corruption risk
exposure.

Antitrust
We will always thrive best in fair and open markets. There-
fore, we rigorously follow all competition and antitrust laws
that apply to our operations. Our Antitrust and Competition
Policy provides detailed guidelines on how to deal with our
legal obligations in competition and antitrust laws.

To further increase knowledge about Antitrust & Fair
Competition, a new antitrust e-learning course was rolled
out in the first part of 2023. At year end, 98% of target group
employees had completed the course. The new e-learning
gathers information related to how confident employees feel
about the topic and which questions are considered difficult.
This additional data helps us identify areas where we need
to provide additional guidance and support; as a result, fur-
ther guidance concerning interactions with competitors and
careful communication was added to the course. In addition
to the e-learning, certain functions and roles with increased
exposure to antitrust risks will receive additional targeted
training suited to their job responsibilities and work context.

Speaking Up
Autoliv has embraced a broad definition for Speaking Up:
“any communication or discussion with the intent to bring
positive change, show encouragement or highlight an issue
for improvement”. To help ensure that our broad definition
of Speaking Up is consistently referenced and promoted
across workstreams and strategic initiatives, implementa-
tion of the Speak Up policy is the joint responsibility of sev-
eral functions: Compliance & Corporate Integrity, Health &
Safety, Quality, and HR. Although we believe this broader
definition will benefit our business in all aspects, we make
it clear that Autoliv employees are responsible for immedi-
ately reporting suspected or known violations of the Code
of Conduct, the law or Autoliv’s policies. All employees are
frequently informed of the multiple channels available for
raising such issues. In most cases, this should be to their
manager or a member of local management. When this is
not possible (for any reason), colleagues in HR, the Legal
Department, or Compliance Officers are always available,
or the Autoliv Helpline can be used.

In December 2022, we launched a Speaking Up e-
learning for all employees and additional training for leaders
on their role in creating a Speak Up culture. The e-learning
takes employees through a series of situations where they
are asked to make a decision about what to do next. By the
end of 2023, 98% of employees had completed the Speak-
ing Up e-learning and 97% of managers had completed the
additional manager training. Awareness of Speak Up chan-
nels and confidence in speaking up are measured in quar-
terly employee surveys.

In 2023, 68% of employees who participated in the sur-
veys felt safe to speak up at Autoliv, same result as in 2022.
While many teams report that they feel safe to speak up, we
know this sentiment is not yet universal in all parts of Autoliv.
The Code of Conduct and Speak Up policy firmly state that
no employee or third party should be adversely affected for
reporting in good faith or for refusing to carry out a directive
believed to constitute a violation of the Code or other Autoliv
policies, laws, or regulations.

Speaking Up@Autoliv:

“Any communication or discussion
with the intent to bring positive change,
show encouragement or highlight
an issue for improvement”.

In order to measure how well we have communicated to the
employees about our Speak Up philosophy and program,
we launched a Speak Up awareness survey for employees
in our Europe, Asia and China divisions. The results of the
survey are analyzed and discussed within the respective
management teams and form the basis for continued com-
munication and training about Speaking Up, both for em-
ployees and for management.

Direct line
manager

Helpline

Other
trusted local
leaders

Compliance
team

Specialist
colleagues
(e.g. HR, HSE,
APS, Quality,
Legal)

Autoliv Helpline
The Autoliv Helpline is a third-party operated reporting ser-
vice available to all employees as well as any third party.
Reports can be made anonymously (where allowed by law)
and/or confidentially in the language of any country where
Autoliv operates. All reports are investigated to determine
whether there is any violation of the law, the Code of Con-
duct or other Autoliv policies.

Reporting
In 2023, a total of 426 reports were received by the Compli-
ance team. Around 89% were received via the Helpline re-
porting system (phone or online) and the other reports were
raised internally, meaning reported directly to management,
HR, Legal or Compliance teams. Of the reports received,
70% were, opened for investigation. Of the investigations
closed in 2023, 36% of the allegations or cases were sub-
stantiated or partially substantiated. Compared to previous
years, 2023 saw an increase in the number of reports related
to harassment and conflict of interest. Substantiated cases
are presented to appropriate management for decision on
disciplinary action and other remediation activities. All high
risk case are presented to Executive Management and Audit
and Risk Committee of the Board on a regular basis.

SUSTAINABILITY

Tax policy
At Autoliv, tax planning is carried out in compliance with the
Tax Policy approved by the Board of Directors. The basic
principle is to respect all relevant laws, disclosure require-
ments and regulations, while safeguarding shareholder in-
terests and the Autoliv brand. All tax planning must be in line
with Autoliv’s business purpose and no baseless organiza-
tional structure is permitted. All Autoliv affiliates are required
to pay all tax obligations and meet relevant payment dead-
lines, to fully comply with all relevant tax laws and account-
ing rules and regulations in the tax jurisdictions in which the
business operates, and to be open and transparent with
tax authorities about their tax liability. When disputes arise,
Autoliv will proactively seek to work cooperatively with full
transparency.

Human rights
Human rights are an integral part of Autoliv’s sustainability
agenda and cut across all sustainability focus areas. We are
committed to respecting the UN Universal Declaration of Hu-
man Rights as well as human rights-related commitments
laid out in the UN Global Compact Principles and OECD
Guidelines for Multinational Enterprises. We are continuously
assessing the quickly evolving legislatory landscape as well
as customer- and investor-related expectations. During 2023
we continued the work to further develop our human rights
due diligence processes, with particular focus on mapping
human rights-related risks for select raw materials supply
chains. This work will continue in 2024.

Human rights commitments are included in our Code
of Conduct and our Supplier Code. These Codes are sup-
ported by topic-specific policies that cover specific human
rights, such as our Health & Safety Policy, Respect in the
Workplace Policy and Conflict Minerals Policy. Implementa-
tion of our commitments is ensured through management
attention and reporting, management systems, standards,
risk and impact assessments, other tools and training.

Human rights are also a cross-cutting theme in our com-
munity engagement activities. One such example is our and
other large Swedish companies’ long-standing collabora-
tion with the NGO Pratham to ensure effective education for
30,000 children in Assam in India.

Key human rights-related commitments include:

• Our products save lives, and we need to ensure the

quality and safety of our products as they never get a
second chance

• We are committed to offering a safe and inclusive
workplace and respecting all other labor rights

• Our climate ambitions are aligned with the goal of

limiting global warming to 1.5°C, thereby mitigating the
most severe impacts on societies and the environment

• Our supply chain sustainability risk management

processes consider human rights risks and impacts

Human Rights in the
Automotive Industry

As a global automotive supplier, Autoliv faces human
rights risks in a number of areas. As laid out in the report
"Shifting Gears, An Assessment of Human Rights Risks
& Due Diligence in the Automotive Industry", published by
the Automotive Industry Action Group (AIAG), the most
salient risks and issues include:

Child labor and forced labor

Workplace health and safety, discrimination
and harassment

Working conditions, wages and freedom of
association

Conflict minerals

Climate change and environmental
degradation

Labor rights
Autoliv is committed to offering fair terms and conditions of
employment to all employees regardless of employment
type, status, or location. These commitments extend across
our supply chain. Our talent development strategies and
employment policies support the International Labour Or-
ganization’s Fundamental Principles and Labor Standards.
We are committed to:

• Providing fair and equitable wages, working hours,
benefits, and other conditions of employment in
accordance with applicable laws

• Recognizing and respecting employees’ right to
freedom of association and collective bargaining

• Providing decent and safe working conditions

• Prohibiting child, forced, and bonded labor

• Promoting a safe workplace free from any form

of discrimination or harassment

Autoliv is committed to engaging in open and transparent
dialogue with all employees and, where applicable, with
representatives of organized labor groups and unions. We
recognize and respect employees' rights to freedom of as-
sociation and collective bargaining. Approximately 50 per-
cent of our work force is covered by a collective bargaining
agreement. In addition, we have a number of different mech-
anisms through which employees can bring up topics with
management. These include Autoliv's Speak Up channels
(including the Autoliv Helpline), an employee suggestion
program, local health and safety committees, and opera-
tional committees. The major unions representing Autoliv
employees in different regions are disclosed as part of the
10-K filed with the SEC.

During 2023, to accelerate structural cost reductions,
announcements were made regarding site closures and in-
direct headcount reductions. Autoliv is committed to man-
aging any workforce reductions responsibly. In all cases, ne-
gotiations were carried out with local unions and authorities
in accordance with laws and regulations. Depending on the
circumstances, certain employees were offered relocation,
severance pay, early retirement packages, or other addition-
al compensation.

In the later parts of the year, Autoliv's operations in
Queretaro, Mexico, were subject to mass media atten-
tion related to alleged labor rights breaches and a review
into its operations by the U.S Interagency Labor Commit-
tee for Monitoring and Enforcement established under the
United States- Mexico-Canada (USMCA) Agreement. With
over 16,000 employees in Mexico, Autoliv's announced
headcount reductions sparked conversations about labor
practices, worker rights, and the dynamics of employee-
employer relationships within the company. On December
6th, Autoliv's local subsidiary finalized a collective bargain-
ing agreement for employees at the Queretaro facility.

Supply chain sustainability
Our ambition and approach
Through responsible sourcing practices and supplier collab-
oration, Autoliv aims to create positive social and environ-
mental value across our supply chain. We expect suppliers
and third parties to enact the same standards and process-
es as we do when it comes to proactively managing key sus-
tainability impacts and risks such as GHG emissions, labor
rights, and anti-corruption.

To manage our global supply chain in a responsible man-
ner, we focus on integrating sustainability into relevant supply
chain management processes. Suppliers are monitored in
a live risk tool covering such factors as natural disasters,
financial status, reputation, risks, and responsible sourcing
practices. Autoliv’s lead buyers are updated regularly with
information related to their suppliers, allowing them to take
immediate action when necessary.

While our main focus is on direct material suppliers, dur-
ing 2023 we continued to expand the scope of our supply

chain sustainability risk management to indirect suppliers.
Our approach is to work with suppliers, to the greatest ex-
tent possible, to resolve issues before determining to poten-
tially phase out the supplier. Further information related to
supply chain risks is available in the 10-K filed with the SEC.

Supplier Code of Conduct and Sustainable
Sourcing Requirements
We expect our suppliers to comply with the laws and regula-
tions in the areas where they operate and to follow Autoliv’s
policies and procedures, including our Standards of Busi-
ness Conduct and Ethics for Suppliers (Supplier Code of
Conduct). In situations where an Autoliv requirement may
differ from local laws or regulations, we expect our suppli-
ers to follow the most stringent requirements. The Supplier
Code conveys our expectation that suppliers will uphold our
social, ethical and environmental standards in conducting
their businesses in areas including human rights and work-
ing conditions, environmental protection, and business con-
duct and ethics. For direct material suppliers, the Supplier
Code is included in the Autoliv Supplier Manual (ASM). All
direct material suppliers are required to acknowledge their
compliance with the ASM as part of our general terms and
conditions and by signing a separate acknowledgement let-
ter for the ASM. In the case of indirect suppliers, a reference
to the Supplier Code is included in the general terms and
conditions attached to purchasing orders. In early 2023, a
revised Supplier Code of Conduct was rolled out to suppli-
ers, with strengthened requirements in particular related to
conflict minerals and environmental impacts.

Launched in end of 2023, our Sustainable Sourcing
Requirements are being communicated to direct material
suppliers. The document contains further detailed require-
ments and expectations related to the four focus areas of
the Supplier Code of Conduct.

Supplier audits
Autoliv has dedicated teams responsible for the qual-
ity management of our supply base, including mandatory
steps such as pre-qualification audits for new direct mate-
rial suppliers. Sustainability criteria are included as a mod-
ule in these prequalification audits and must be met before
becoming an Autoliv supplier. These audits ensure that our
suppliers adhere to Autoliv’s standards as well as to appli-
cable local laws and regulations, and establish a process
for working with suppliers that fail to meet our policies and
standards. If audited suppliers don’t meet our requirements,
an internal escalation process is in place to ensure that non-
conformities are corrected. At year-end, 99% of active di-
rect material suppliers within audit scope had undergone a
sustainability audit. Our audit practices are aligned with the
AIAG guidelines.

SUSTAINABILITY

Conflict minerals & Extended minerals
Pursuant to U.S. Securities and Exchange Commission
(SEC) rules, conflict minerals include certain minerals (tin,
tantalum, tungsten and gold, also known as 3TG) that origi-
nated in the Democratic Republic of Congo or an adjoining
country and are sold to benefit groups financing armed con-
flicts in those regions. We recognize the need to end the ille-
gal extraction and trade of natural resources, and the human
rights violations, conflicts and environmental degradation
that result from this trade. We have designed our conflict
minerals approach in accordance with the internationally
recognized OECD Due Diligence Guidance for Responsi-
ble Supply Chains of Minerals from Conflict-Affected and
High-Risk Areas, specifically as it relates to our position as
a downstream purchaser. The OECD Due Diligence Guid-
ance has a broader scope and covers more minerals than
3TG. Our Conflict Minerals Policy provides further clarifica-
tion regarding conflict minerals, and its principles are incor-
porated into our Supplier Code of Conduct and the Sustain-
able Sourcing Requirements.

In order to comply with the SEC’s conflict minerals rules
and regulations and to ensure responsible sourcing of com-
ponents, parts or products containing conflict minerals, we
continuously review our supply chain and work with our sup-
pliers to identify and improve the traceability of potential
conflict minerals. We support industry initiatives, such as
the Responsible Minerals Initiative (RMI), and utilize exter-
nal expert guidance to validate that the metals used in our
products come from sustainable sources and do not con-
tribute to conflicts. In cases where we find potential risks and
conflicts with smelters identified within our supply chain,
we take immediate action to mitigate the potential risks. In
some cases, this means discontinuing sourcing from suppli-
ers that are in violation of our requirements to ensure sourc-
ing from designated RMI active or conformant suppliers.

To ensure our understanding of the potential use of
conflict minerals, we have implemented an annual conflict
minerals campaign covering our direct material suppliers.
The scope of the annual campaign includes all direct mate-
rial suppliers that have conducted business with us during
the current calendar year and have listed 3TG in their Bill of
Materials. This information is extracted from the automotive
industry standard reporting platform IMDS. The response
rate to the latest completed campaign, which ended in
May 2023, was 97%. Most non-responding suppliers were
customer-directed suppliers. We are working with these
customers to mitigate this issue for future conflict minerals
campaigns. We publish an annual report on our conflict min-
erals campaign on our website.

In addition to conflict minerals, we also have in place an an-
nual reporting campaign related to tracing extended miner-
als (cobalt and mica) used in components supplied to us.
Autoliv does not permit the sourcing of cobalt or mica from
high-risk smelters, and suppliers must be able to trace co-
balt and mica content in components or raw materials by
part number from their facility back to the supplier sourcing
from the identified smelters.

Airbag component manufacturing.

Sustainability
Appendix

Pages 34-63 comprise Autoliv’s Sustainability Report 2023.

Reporting scope
The report covers Autoliv Inc. and all companies over which
Autoliv Inc. directly or indirectly exercises control (opera-
tional control approach). Reported information covers the
full calendar year. Exceptions to this scope:

• Health and safety reporting excludes office locations

• Environmental reporting excludes office locations as

well as other locations with an insignificant
environmental impact

• Scope 1+2 emissions for 2023 are based on actual ac-

tivity data for January-November and estimated activity
data for December. Estimations are based primarily on
historical activity data (Q4 2022 and Q1-Q3 2023)

The excluded locations are considered non-material in
terms of their impact on total figures.

GHG emissions and energy
All GHG emissions are reported as CO₂e. Due to their na-
ture or to availability, some emission factors used may only
cover CO₂, however the difference has been assessed as
non-material.

Energy consumption and GHG emissions are based on
activity data reported in volume or quantity in an internal re-
porting system. The data is based primarily on invoices, but
may be estimated if exact measurements or invoices do not
exist.

Scope 1+2
Regarding Scope 1+2 emissions, Autoliv applies the GHG
Protocol Corporate Accounting and Reporting Standard.
Autoliv's primary Scope 2 GHG accounting approach is
market-based, and related GHG emissions targets and oth-
er metrics are based on market-based Scope 2 emissions.
The following emission factor sources were used to calcu-
late 2023 GHG emissions:

• Scope 1 energy fuels 1): Defra 2022

• Scope 1 fugitive emissions 2, 3): Defra 2022, IPCC AR5,

producer stated GWP

• Scope 2 location-based electricity and district

heating/steam: IEA 2022

• Scope 2 market-based electricity: provided by supplier,
or national grid average for the sites where suppliers
were unable to provide a specific emission factor

• Scope 2 market-based district heating/steam:

IEA 2022

1) Gasoline, diesel, fuel oil, LPG. 2) Mainly SF6, fugitive CO2, N2O and various refrigerants.
3) The emission factor for SF6 at one facility has been adjusted down by 20% to account
for not all gas being released into the atmosphere. The adjustment is based on tests at the
facility and has been applied also to the SF₆ emission factor used for 2021 and 2022. The
adjustment is a best estimate associated with inherent uncertainty as the exact reduction
has not been established.

2021 and 2022 emissions have been calculated mainly using
older sets of the same emission factor sources. The updated
emission factors for 2023 represent around a 40 kton reduc-
tion in Scope 1+2 emissions between 2021-2022 and 2023,
impacting in particular market-based electricity emissions.

External reporting frameworks
The following external reporting frameworks have been con-
sidered for the structure and content of this Sustainability
Report:

• We consider the Sustainability Report aligned with the
general requirements of the EU Non-Financial Report-
ing Directive (NFRD). Autoliv’s assessment, supported
by third party legal expertise, is that for the year 2023,
Autoliv Inc. was not required to report in accordance
with the EU Non-Financial Reporting Directive (NFRD)
or the EU Corporate Sustainability Reporting Directive
(CSRD).

• This Sustainability Appendix includes references to the
voluntary SASB Auto Parts Sustainability Accounting
Standard.

• A TCFD Disclosure is included on pages 48-49.

• A statement prepared to comply with the reporting ob-
ligation of California’s Voluntary Carbon Market Disclo-
sure Act (VCMDA) is available on autoliv.com.

External assurance
Scope 1+2 emissions for 2023, reported in accordance
with the GHG Protocol Corporate Accounting and Report-
ing Standard, have been subject to limited review carried
out by EY. The limited review was conducted in accordance
with ISAE 3410 assurance standard. The auditor's report is
available on autoliv.com. An additional statement prepared
to comply with the disclosure obligations of California’s Vol-
untary Carbon Market Disclosure Act (VCMDA) is available
on the Climate Action page on autoliv.com.

UN Global Compact Communication on Progress
This Sustainability Report serves as Autoliv’s Communica-
tion on Progress related to the UN Global Compact. The
following sections demonstrate our commitment to imple-
menting the Global Compact principles:

• Road Safety - a Global Challenge: Principle 1

• A Safe and Inclusive Workplace: Principle 6

• Climate and Circularity: Principles 7-9

• Responsible Business: Principles 1-6, 10

SUSTAINABILITY

Scope 3
Reported Scope 3 emissions have been modelled in ac-
cordance with the GHG Protocol Scope 3 Calculation Guid-
ance based on a combination of spend data (e.g. logistics
spend) and activity data (e.g. materials purchased). Gener-
ic emission factors have been applied as supplier-specific
emission factors are generally not available. Reporting is
limited to Scope 3 upstream categories as those are consid-
ered material for Autoliv and are covered by Autoliv's sup-
ply chain climate ambition and the Scope 3 Science Based
Target.

Science Based Targets
In January 2022, the Science Based Targets initiative
(SBTi) approved Autoliv's Science Based Targets (SBTs):

• Reduce absolute Scope 1+2 emissions by 75% from a

2018 base year

• Reduce absolute Scope 3 upstream emissions by 15%

from a 2018 base year

The Scope 1+2 SBT is 1.5°C aligned and has a baseline of
423 kton. 2023 Scope 1+2 emissions of 358 kton is a 15%
absolute reduction compared to the baseline.

The scope 3 SBT is 2°C aligned and has a baseline of
3,100 kton. 2023 Scope 3 upstream emissions of 3,770
kton is an 18% absolute increase compared to the baseline.

Energy
Energy conversion for energy fuels have been taken from
public data. The same energy conversion factors have been
applied to all reported energy consumption 2021-2023 with
the exception of natural gas. There has been a small change
to the 2021-2022 factor and the higher conversion factor ap-
plied to natural gas for 2023 represents an increase of 28
GWh direct energy in 2023 compared to 2021-2022 how-
ever, does not impact Scope 1 emissions.

Previously reported 2021 and 2022

Changes and corrections
In 2023, there were no material changes in reporting scope.
location-based
Scope 2 emissions have been corrected due to earlier cal-
culation error. The correction resulted in a change of loca-
tion-based Scope 2 emissions from 285 to 291 kton CO2e
for 2021 and from 276 to 316 kton CO2e for 2022. The cor-
rection of location-based Scope emissions does not impact
reported market-based Scope 2 emissions.

The 2021-2023 Incident Rates differ from prior Autoliv
reports and releases due to a previous miscalculation; they
have been adjusted upwards to reflect the correct Incident
Rate. The Company continues to focus on ways to reduce
injuries and lower the Incident Rate.

Saving More Lives

Targets & Metrics

2023

2022

2021

Comments

100,000 lives saved per year

35,000

Close to
35,000

We estimate that in addition to lives saved,
our products reduce more than 450,000
injuries annually.

Share of global recalls (%)1

~2%

The share is calculated as a ten year rolling
average based on information from national
official databases.

1) SASB TR-AP-250a 1.

A Safe and Inclusive Workplace

Targets & Metrics

2023

2022

2021

Comments

Health and Safety

0.35 Incident Rate by 2024

0.38

0.48

Number of reportable injuries, i.e. injuries
that require treatment beyond first aid or results
in one or more days of lost time, per 200,000
employee hours of exposure. See comments
under Changes and corrections on page 60.

Work-related fatalities

Share of production sites
ISO 45001 certified (%)

61%

56%

Not
available

Comparable number for 2021 is
not available.

Inclusion

95% of senior and mid-level
management trained in unconscious
bias by 2023

Year-on-year improvement in Employee
experience. Continuous

96%

52%

42%

- Authenticity

- Perceived fairness

22% women in senior management
by 2024

19%

18%

17%

Share of women in the workforce (%)

49%

47%

Share of women in the Executive
Management Team (%)

Climate and Circularity

2021-2022 results are from the annual employ-
ee survey, 2023 results from the Q3 quarterly
employee survey. Results are comparable.

Senior management consists of around
110 employees and include the Executive
Management Team.

Targets & Metrics

2023

2022

2021

Comments

Carbon neutrality in own operations
by 2030

358 kton
CO2e

430 kton
CO2e

435 kton
CO2e

Scope 1+2 market-based
emissions.

Year-on-year improvement
Continuous

Year-on-year reduction in waste
Continuous

3%
improve-
ment

12%
increase

2%
improve-
ment

9%
increase

2%
improve-
ment

3%
increase

Total energy consumption
per part delivered.

Total waste.

SUSTAINABILITY

Climate and Circularity

Targets & Metrics

GHG Emissions

2023

2022

2021

Comments

GHG emissions intensity (Scope 1+2)

34.2

48.5

56.3

Ton CO2e per million USD sales (FX adjusted).

Direct Scope 1 GHG emissions
(kton CO2e)

- Natural gas

- Other energy fuels

– SF6

- Other fugitive emissions

Total

Indirect Scope 2 GHG emissions
(kton CO2e)

- Electricity, market-based

- District heating/steam, market-based

Total, market-based

- Electricity, location-based

- District heating/steam, location-based

Total, location-based

Upstream Scope 3 emissions (kton CO2e)
- Purchased goods and services (category 1)

- Upstream transportation (category 4)

- Other upstream (categories 2, 3, 5, 6, 7, 8)

247

263

290

306

3,070

460

240

102

103

316

331

276

291

311

328

299

316

3,000

510

190

Total

Energy1

3,770

3,700

Energy intensity

100.5

110.5

119.5

MWh per million USD sales (FX adjusted).

Energy use (GWh)

- Direct - natural gas

- Direct - other energy fuels

Direct total

- Indirect - electricity

- Indirect - district heating/steam

Indirect total

282

321

704

732

250

290

661

690

245

281

615

642

Total

1,053

980

923

Share of renewable energy/electricity (%)

- Renewable energy

- Renewable electricity

15%

23%

13%

Included in total direct energy use but not
part of the breakdown is around 240 MWh
of on-site solar PV generation.

Renewable electricity is calculated as as the share
of purchased electricity covered by a 'green tariff',
EAC/REC/GO or PPA and may come from any
renewable source. 100% of direct energy is
considered non-renewable.

1) SASB TR-AP-130a

Waste1

Waste (kton)

Share of waste by type (%)

- Non-hazardous

- Hazardous

Share of waste by treatment (%)
- Reuse, recycling, energy recovery

- Landfill

1) SASB TR-AP-150a

113

101

89%

11%

91%

89%

11%

90%

10%

89%

11%

89%

11%

Climate and Circularity

Targets & Metrics

2023

2022

2021

Comments

Other

Water withdrawal (m3)

2,290,000

2,360,000

2,310,000

100% of water withdrawal is reported as
coming from municipal or third party sources.

Share of production sites
ISO 14001 certified (%)

Number of significant spills,
and related fines

Responsible Business

92%

96%

89%

A significant spill is defined as having a financial
impact of USD 100,000 or more.

Targets & Metrics

2023

2022

2021

Comments

Business Ethics

100% in target group completed
antitrust training
Continuous

100% in target group Code of
Conduct certified
Continuous

Supply Chain Sustainability

100% direct material suppliers
sustainability audited
Continuous

98%

99%

96%

Target group is based on the risk exposure
of certain employee groups.

93%

99%

Target group is employees in a leadership role.

99%

98%

81%

Percentage is based on active direct material
suppliers within audit scope who have undergone a
sustainability audit.

100% direct material suppliers respond
to conflict minerals survey
Continuous

97%

89%

99%

Compliance Speak Up

Number of Compliance Speak Up reports

426

– Reported through Autoliv Helpline (%)

– Reported through other channels (%)

89%

11%

318

89%

11%

284

88%

12%

Other channels include internal reports directly
to management, HR, the Legal or Compliance
teams.

Compliance Speak Up reports
per 100 employees

0.61

0.46

0.47

Labor Rights

Share of employees covered by collective
bargaining agreements (%)

~50%

Around 80% of the countries where Autoliv has
employees have collective bargaining agre-
ements.

THE AUTOLIV SHARE

Creating
Shareholder
Value

By ensuring customer satisfaction, main-
taining tight cost control and developing new
products, we generate cash for long-term
growth, financial stability and competitive
returns to our shareholders.

Autoliv has a strong cash flow and cash generation focus.
Our operating cash flow has always exceeded our capital
expenditures. On average, our continuing operations ex-
cluding antitrust payment in 2019 have generated $828
million in cash per year over the last five years, while our
capital expenditures, net, have averaged $465 million per
year during the same period.

Capital efficiency
Our strong cash flow reflects both Autoliv’s earnings perfor-
mance and our capital efficiency. During 2023, our capital
turnover rate, meaning our sales in relation to average capi-
tal employed, increased from 2.4 to 2.7 times, significantly
better than our 5-year average capital turnover rate of 2.2.

Our cash flow model
When analyzing how best to use each year’s cash flows
from operations, Autoliv’s Executive Management and the

Board of Directors use a model for creating shareholder
value that considers variables such as the marginal cost
of borrowing, the return on marginal investments and the
price of Autoliv shares. When evaluating the various uses of
cash, the need for flexibility is weighed against acquisitions
and other potential uses of cash.

Investing in operations
To create long-term shareholder value, cash flow from op-
erations should only be used to finance investments in op-
erations until the point when the return on investment no
longer exceeds the cost of capital. Our historical weighted
average cost of capital has been approximately 10% to
13% in the past ten years. Autoliv’s pre-tax return on capital
employed has generally exceeded this level, except during
the COVID-19 pandemic in 2020. During the last five years,
the return on capital employed has varied between 10%
and 20%, i.e. about one to two times the pre- tax cost of
capital. In 2023, $569 million was reinvested in the form of
capital expenditures, net. This corresponds to 58% of the
year’s operating cash flow of $982 million. Capital expendi-
ture, net, was 51% higher than depreciation and amortiza-
tion as we invest in footprint optimization, capacity increas-
es and flexible automation to drive increased efficiency and
support the sales growth we expect from executing on our
strong order book in the coming years.

Cash flow vs. Capex
US$ (Millions)

Shareholder Returns
US$ (Millions)

1,000

800

600

400

200

Operating cash ﬂow
Capital expenditures, net

600

500

400

300

200

100

Share buybacks
Dividend

Assets by Category
US$ (Millions)

Capital Turnover Rate
Times, sales in relation to average
capital employed

5,000

4,000

3,000

2,000

1,000

Trade working capital
Property, plant and equipment
Goodwill and other intangible assets

Return on Capital Employed
%

Capex and D&A
US$ (Millions) and in relation to sales %

600

525

450

375

300

225

150

Capex, net

Capex, net % of sales
D&A % of sales

THE AUTOLIV SHARE

Autoliv's model for creating shareholder value
US$ (millions)

2023

2022

165

982

1,200

1,000

800

600

400

200

352

226

569

113

713

115

226

485

Cash IN

Cash OUT

Cash IN

Cash OUT

CASH IN

Operations

Increase in net debt and other

CASH OUT

Capital expenditures, net
Total dividends paid
Stock repurchases

Acquisitions, divestments and investments in assets
In order to accelerate company growth and create share-
holder value over time, we could use some of the cash flow
generated for acquisitions and for investments in assets
such as joint ventures and intellectual property. These in-
vestments are typically made to consolidate our position in
the industry, increase our vertical integration or expand into
new markets. In the near future, we do not consider acquisi-
tions as a high priority part of our strategy.

Shareholder returns
Autoliv has historically used both dividend payments and
share repurchases to create shareholder value. Autoliv
does not have a set dividend policy. Instead, the Board of
Directors regularly analyzes which method is most effec-
tive in order to create shareholder value. For the full year
2023, the dividend was increased from $2.58 to $2.66 per
share. In total, $225 million was used to pay dividends to
shareholders in 2023. Historically, the dividend has usually
represented a yield of approximately 2-3% in relation to

Autoliv's average share price, except in 2020, when a divi-
dend was only paid for one quarter as a response to the ef-
fects of the COVID-19 pandemic. In 2023, this yield was
around 2.9%. Repurchases of shares can create more
value for shareholders than dividends, if the share price
appreciates over the long term. This has been the case for
Autoliv as the Company's existing 5.0 million treasury
shares have been repurchased at an average cost of $56.13
per share while the closing share price at the end of 2023
was $110.19.

During 2023, Autoliv repurchased and retired 3.67 mil-
lion shares, equal to $352 million, under the current stock
repurchase program authorized by the Board to repurchase
up to $1.5 billion, or 17 million common shares (whichever
comes first), between January 2022 and the end of 2024.
At end of 2023, total number of shares repurchased under
the program was approximately 5.1 million for a total of
$467 million.

Capital structure
Our debt limitation policy is to maintain a financial leverage
commensurate with a “strong investment grade credit rat-
ing”. Our long-term target is to have a leverage ratio (Net
Debt, including pension liability, in relation to EBITDA) of
around 1 time and to be within the range of 0.5 and 1.5
times. In addition to the above, the objective is to provide
the Company with sufficient flexibility to manage the in-
herent risks and cyclicality in Autoliv’s business and allow

the Company to realize strategic opportunities and fund
growth initiatives while creating shareholder value. In 2023,
Autoliv remained inside the target range as cash flow re-
mained solid and EBITDA improved. On December 31,
2023, the leverage ratio was 1.2 times. Autoliv holds a “BBB
with stable outlook” long-term credit rating from Standard &
Poor's. We aim to maintain a strong investment grade rat-
ing as our current capital structure should provide flexibility
to generate further shareholder returns and the funding of
our capital requirements.

Shareholder information
Autoliv’s common stock is traded on the New York Stock
Exchange (NYSE) while Autoliv's Swedish depositary re-
ceipts (SDRs) are traded on NASDAQ Stockholm’s list for
large market cap companies. As of December 31, 2023,
Autoliv estimates that approximately 36% of outstand-
ing shares were SDRs (vs. 49% a year earlier) while 64%
were common stock (vs. 51% a year earlier). In 2023, ap-
proximately 84% of total volume was traded on the NYSE.
During 2023, the number of shares outstanding decreased
by more than 3.5 million to 82.6 million (excluding treasury
shares). Stock options (if exercised) and granted restricted
stock units and performance shares could increase the
number of shares outstanding by 0.3 million shares in to-
tal. Combined, this would add 0.4% to the Autoliv shares
outstanding.

Ownership distribution of institutional investors

The largest shareholders, December 31st, 2023 1)

Rest of Europe 11%

Rest of World 3%

1. Cevian Capital

United States 43%

2. Fidelity Management & Research Company

3. BlackRock

4. Alecta

1) Shareholders holding more than 5% at the end of 2023, based on the
13-D/G filings and company estimates, of outstanding shares

United Kingdom 10%

Sweden 33%

Company estimates, end of 2023.

11%

BOARD AND MANAGEMENT

Board of Directors

1. Jan Carlson
Chairman since 2014.
Director since 2007.

2. Mikael Bratt
President and CEO of Autoliv Inc.
Director since 2018.

3. Laurie Brlas
Director since 2020. Member of
the Audit and Risk Committee and
the Nominating and Corporate
Governance Committee.

4. Hasse Johansson
Director since 2018. Member of the
Audit and Risk Committee.

5. Leif Johansson
Director since 2016. Chair of
the Nominating and Corporate
Governance Committee. Member
of the Leadership Development and
Compensation Committee.

6. Franz-Josef Kortüm
Director since 2014. Member of
the Nominating and Corporate
Governance Committee.

7. Frédéric Lissalde
Director since 2020. Chair of the
Leadership Development and
Compensation Committee. Member
of the Nominating and Corporate
Governance Committee.

8. Xiaozhi Liu
Director since 2011. Member of
the Leadership Development and
Compensation Committee.

9. Gustav Lundgren
Director since 2022. Member of the
Audit and Risk Committee.

10. Martin Lundstedt
Director since 2021. Member of
the Leadership Development and
Compensation Committee.

11. Thaddeus “Ted” Senko
Director since 2018. Chair of the Audit
Committee.

Executive Management Team

1. Mikael Bratt
President and CEO.
Employed 2016.

2. Petra Albuschus
Executive Vice President,
Human Resources & Sustainability.
Employed 2023.

3. Kevin Fox
President, Autoliv Americas.
Employed 1996.

4. Magnus Jarlegren
President, Autoliv Europe.
Employed 2019.

5. Jordi Lombarte
Executive Vice President and
Chief Technology Officer.
Employed 1991.

6. Jonas Jademyr
Executive Vice President, Quality
and Program Management.
Employed 2023.

7. Colin Naughton
President, Autoliv Asia.
Employed 1995.

8. Anthony Nellis
Executive Vice President, Legal
Affairs; General Counsel & Secretary.
Employed 2002.

9. Staffan Olsson
Acting Head of Operations.
Employed 2020.

10. Christian Swahn
Executive Vice President,
Supply Chain Management.
Employed 2019.

11. Fredrik Westin
Executive Vice President,
Finance and Chief
Financial Officer.
Employed 2020.

12. Sng Yih
President, Autoliv China.
Employed 2022.

Contacts
and Calendar

AUTOLIV, INC.
Visiting address:
Klarabergsviadukten 70, Section B,
7th Floor, Stockholm, Sweden
Postal address:
P.O. Box 70381, SE-107 24 Stockholm, Sweden
Tel: +46 (0)8 587 20 600
E-mail: info@autoliv.com
www.autoliv.com

CONTACT OUR BOARD
Autoliv, Inc.
P.O. Box 70381, SE-107 24 Stockholm, Sweden
Tel: +46 (0)8 587 20 600
E-mail: legalaffairs@autoliv.com

The Board, individual directors and the committees of
the Board can be contacted using the address above.
Contact can be made anonymously and communication
with individual directors is not screened. The relevant
chairman receives all such communication after it has
been determined that the content represents a message
to such chairman.

STOCK TRANSFER AGENT AND REGISTRAR
www.computershare.com

INVESTOR REQUESTS
Autoliv, Inc.,
P.O. Box 70381, SE-107 24, Stockholm, Sweden
Tel: +46 (0)8 587 20 600
E-mail: ir@autoliv.com

2024 PRELIMINARY FINANCIAL CALENDAR
April 26, Financial Report Q1
May 10, Annual Stockholders Meeting
July 19, Financial Report Q2
October 18, Financial Report Q3

Concept and Design: PCG
Photos: Christian Wyrwa, Jason Loudermilk Photography, Kun Li,
Getty Images, Shutterstock, JiaJia Zhuang, Björn Nilsson Graphics,
NYSE, Spectrum Digitale Medien GmbH, Autoliv colleagues

Contacts

and Calendar

Multi-Year Financial Summary

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

2023

2022

2021

2020

2019

Sales and Income

Net sales

Airbag sales1)

Seatbelt sales

Operating income

Net income attributable to controlling interest

Earnings per share – basic

Earnings per share – assuming dilution2)

Gross margin3)

S,G&A in relation to sales

R,D&E net in relation to sales

Operating margin4)

Adjusted operating margin5,6)

Balance Sheet

Trade working capital7)

Trade working capital in relation to sales8)

Receivables outstanding in relation to sales9)

Inventory outstanding in relation to sales10)

Payables outstanding in relation to sales11)

Total equity

Total parent shareholders’ equity per share

Current assets excluding cash

Property, plant and equipment, net

Intangible assets (primarily goodwill)

Capital employed

Net debt6)

Total assets

Long-term debt

Return on capital employed12)

Return on total equity13)

Total equity ratio

Cash flow and other data

Operating Cash flow

Depreciation and amortization

Capital expenditures, net

Capital expenditures, net in relation to sales

Free Cash flow6,14)

Cash conversion6,15)

Direct shareholder return16)

Cash dividends paid per share

Number of shares outstanding (millions)17)

Number of employees, December 31

$10,475

$8,842

$8,230

7,055

3,420

690

488

5.74

5.72

17.4%

(4.8)%

(4.1)%

6.6%

8.8%

1,232

11.2%

20.0%

9.2%

18.0%

2,570

30.93

3,475

2,192

1,385

3,937

1,367

8,332

1,324

17.7%

19.0%

31%

982

378

569

5.4%

414

85%

577

5,807

3,035

659

423

4.86

4.85

15.8%

(4.9)%

(4.4)%

7.5%

6.8%

1,183

12.7%

20.4%

10.4%

18.1%

2,626

30.30

3,119

1,960

1,382

3,810

1,184

7,717

1,054

17.5%

16.3%

34%

713

363

485

5.5%

228

54%

339

5,380

2,850

675

435

4.97

4.96

18.4%

(5.3)%

(4.7)%

8.2%

8.3%

1,332

15.7%

20.0%

9.2%

13.5%

2,648

30.10

2,705

1,855

1,395

3,700

1,052

7,537

1,662

18.3%

17.1%

35%

754

394

454

5.5%

300

69%

165

$7,447

4,824

2,623

382

187

2.14

16.7%

(5.2)%

(5.0)%

5.1%

6.5%

1,366

13.6%

18.1%

7.9%

12.5%

2,423

27.56

3,091

1,869

1,412

3,637

1,214

8,157

2,110

10.0%

9.0%

30%

849

371

340

4.6%

509

270%

$8,548

5,676

2,871

726

462

5.29

18.5%

(4.7)%

8.5%

9.1%

1,417

16.2%

18.6%

8.5%

10.8%

2,122

24.19

2,557

1,816

1,410

3,772

1,650

6,771

1,726

20.0%

23.0%

31%

641

351

476

5.6%

165

36%

217

2.66

2.58

1.88

0.62

2.48

82.6

86.2

87.5

87.4

87.2

62,900

61,700

55,900

61,000

58,900

1) Including steering wheels, inflators and initiators. 2) Assuming dilution and 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 Andrews litigation settlement. 6) Non-U.S. GAAP measure, for reconciliation see Financial Report October – December 2023 filed
with Form 8-K on January 26, 2024. 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 average total equity. 14) Operating cash flow less Capital expenditures, net. 15) Free cash flow relative to Net income. 16) Dividends paid and Shares repurchased. 17) At year end,
excluding dilution and net of treasury shares.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

☒

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number: 001-12933
AUTOLIV, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

Klarabergsviadukten 70, Section B7,
Box 70381,
Stockholm, Sweden
(Address of principal executive offices)

51-0378542
(I.R.S. Employer
Identification No.)

SE-107 24
(Zip Code)

+46 8 587 20 600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class:
Common Stock (par value $1.00 per share)

Trading Symbol(s):
ALV

Name of each exchange on which registered:
New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing
requirements for the past 90 days. Yes: ☒ No: ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes: ☒ No: ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

Emerging growth company

☒
☐

☐

Accelerated filer

Smaller reporting company

☐
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262 (b)) by the registered public accounting firm that prepared
or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the
filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received
by any of the registrant’s executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes: ☐ No: ☒

The aggregate market value of the voting and non-voting common equity of Autoliv, Inc. held by non-affiliates as of the last business day of the second
fiscal quarter of 2023 amounted to $7,260 million.

Number of shares of Common Stock outstanding as of February 12, 2024: 82,646,049.

Auditor Firm Id: 1433 Auditor Name: Ernst & Young AB Auditor Location: Stockholm, Sweden

Portions of the registrant’s definitive Proxy Statement for the annual stockholders’ meeting to be held on May 10, 2024, to be dated on or around March
25, 2024 (the “2024 Proxy Statement”), are incorporated by reference into Part III of this Annual Report on Form 10-K. The 2024 Proxy Statement will be
filed with the U.S. Securities and Exchange Commission within 120 days after December 31, 2023.

DOCUMENTS INCORPORATED BY REFERENCE

Business
Risk Factors
Unresolved Staff Comments
Cybersecurity
Properties
Legal Proceedings
Mine Safety Disclosures

AUTOLIV, INC.

Index

PART I

PART II

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
[Reserved]
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures about Market Risk
Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Controls and Procedures
Other Information

Item 1.
Item 1A.
Item 1B.
Item 1C.
Item 2.
Item 3.
Item 4.

Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.

PART III

Item 10.
Item 11.
Item 12.
Item 13.
Item 14.

Directors, Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accountant Fees and Services

Item 15.

Exhibit and Financial Statement Schedules

PART IV

3
10
21
22
24
27
27

30
49
51
88
88
89

90
90
90
90
90

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K 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. (“Autoliv,” the “Company” or “we”) 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 economic conditions, including 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; disruptions and impacts relating to the ongoing war between Russia and Ukraine and the ongoing
conflict in the Red Sea; changes in general industry and market conditions or regional growth or decline; changes in and the successful
execution of our capacity alignments: restructuring, cost reduction, and efficiency 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 restructuring or 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 and other 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, 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 by governmental
authorities and changes in our effective tax rate; dependence on key personnel; legislative or regulatory changes impacting or limiting
our business; our ability to meet our sustainability targets, goals and commitments; political conditions; dependence on and relationships
with customers and suppliers; the conditions necessary to hit our financial targets; and other risks and uncertainties identified in Item 1A
-“Risk Factors” of this Annual Report on Form 10-K, Item 1A, and Item 7 - “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” in this Annual Report.

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.

Item 1. Business

General

PART I

Autoliv, Inc. (“Autoliv”, the “Company” or “we”) is a Delaware corporation with its principal executive offices in Stockholm, Sweden where
it currently employs approximately 105 people. The Company functions as a holding corporation and owns two principal subsidiaries,
Autoliv AB and Autoliv ASP, Inc. The Company's fiscal year ends on December 31.

The Company is a leading developer, manufacturer, and supplier of passive safety systems to the automotive industry with a broad range
of product offerings.

Passive safety systems are primarily meant to improve safety for occupants in a vehicle. Passive safety systems include modules and
components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator
technologies, and battery cut-off switches.

To expand its product offerings, the Company has formed Mobility Safety Solutions. By combining its core competence and industry
experience, the Company also develops and manufactures mobility safety solutions such as pedestrian protection, battery cut-off
switches, connected safety services, and safety solutions for riders of powered two-wheelers.

The Company has 63 production facilities in 23 countries and its customers include the world’s largest car manufacturers. The Company’s
sales in 2023 were $10.5 billion, approximately 67% of which consisted of airbag and steering wheel products and approximately 33% of
which consisted of seatbelt products. The Company's business is conducted in the following geographical regions: The Americas, Europe,
China, and Asia, excluding China.

On December 31, 2023, the Company had approximately 70,300 personnel worldwide, with 11% being temporary personnel.

Additional information required by this Item 1 regarding developments in the Company’s business during 2023 is contained under Item 7
in this Annual Report.

Reportable Segment

The Company has one reportable segment based on the way the Company evaluates its financial performance and manages its
operations. The Company's business is comprised of passive safety products –principally airbags (including steering wheels and inflators)
and seatbelts. For more information regarding the Company’s segment reporting, see Note 1, Basis of Presentation, to the Consolidated
Financial Statements in this Annual Report.

Products, Market, and Competition

Products

Providing life-saving solutions is a key priority as the world population grows and develops. However, population expansion in growth
markets and the rise of megacities creates new complexities. To meet this challenge, the Company develops safety solutions for both
mobility and society that work in real life situations. The Company's passive safety systems such as seatbelts and airbags substantially
mitigate human consequences of traffic accidents.

The airbag module is designed to inflate extremely rapidly and then quickly deflate during a collision or impact. It consists of the container,
an airbag cushion, and an inflator. The purpose of the airbag is to provide the occupants a cushioning and restraint during a crash event
to prevent any impact or impact-caused injuries between the occupant and the interior of the vehicle.

Seatbelts can reduce the overall risk of serious injuries in frontal crashes by as much as 60% due to advanced seatbelt technologies such
as pretensioners and load limiters.

The Company also manufactures steering wheels that are crafted to ensure they meet safety requirements and are functional as well as
stylish.

Market and Competition

Consumer research clearly shows that consumers want safe vehicles, and several significant trends are likely to positively influence
overall safety content per vehicle. These include:

1) Society becoming increasingly focused on Vision Zero and its goal of reducing traffic fatalities and their associated costs;

2) Demographic trends of increased urbanization, aging driver populations, and increased safety focus in growth markets;

3) Evolving government regulations and test rating systems to improve the safety of vehicles in various markets, such as the
updated European New Car Assessment Program (Euro NCAP), China NCAP, and USNCAP; and

4) The trend towards more electrical vehicles may lead to roomier interiors that may require more advanced passive safety systems,
as well as products to cut the electrical power in case of an accident.

The automotive passive safety market is driven by two primary factors: light vehicle production (LVP) and content per vehicle (CPV).

The first growth driver, LVP, has increased at an average annual growth rate of around 1.9% since the start of Autoliv in 1997 despite
the substantial headwinds from recent supply chain disruptions and semiconductor shortages, including in 2022. According to S&P Global,
LVP is forecasted to grow to close to 90 million by 2026 from approximately 87 million in 2023, due to growing demand and export in
medium- and low-income markets.

Unlike LVP, where Autoliv can only aim to be on the best-selling platforms, Autoliv can influence CPV more directly by continuously
developing and introducing new technologies with higher value-added features. Over the long term, this increases average safety CPV
and has caused the Company's markets to grow faster than the LVP.

Since 1997, the Company’s sales compound annual growth rate (CAGR) for passive safety has been around 5% compared to the market
rate of around 2.8% which includes an LVP growth of around 1.9%. The Company's outperformance is a result of a steady flow of new
passive safety technologies, strong focus on quality and a superior global footprint both in products and engineering. This has enabled
Autoliv to increase its global market share in passive safety from 27% in 1997 to around 45% in 2023.

In high-income markets (Western Europe, North America, Japan, and South Korea) the average CPV is around $330. CPV growth in
these regions mainly come from new safety systems such as active seatbelts, knee airbags, and front-center airbags along with improved
protection for pedestrians and rear-seat occupants like bag-in-belt or more advanced seatbelts.

In medium- and low-income markets (all markets other than the markets above), the Company sees great opportunities for CPV growth
from more airbags and advanced seatbelt products. Average CPV in these markets is around $200 or almost $130 less than in the high-
income markets.

As a result of higher installation rates of airbags, more advanced seatbelt products, and more complex steering wheels, CPV is expected
to increase at a similar pace in both high-income and medium- and low-income markets over the next three years.

In the next three years all LVP growth is expected to come in medium- and low-income regions with lower CPV, leading to a dilution of
the average global CPV. Despite this negative regional LVP mix effect, the annual passive safety market (seatbelts and airbags, including
steering wheels), is expected to grow from around $23 billion in 2023 to more than $25 billion over the next three years, based on the
current macro-economic outlook and the Company's internal market intelligence and estimates.

The highest growth rate is expected in steering wheels, where Autoliv has a global market share of around 40%, generated by the trend
toward higher-value steering wheels with leather and additional features.

In seatbelts, Autoliv has reached a global market share of around 45%, primarily due to being the technology leader with several important
innovations such as pretensioners and active seatbelts. The Company's strong market position is also a reflection of its superior global
footprint. Seatbelts are the primary life-saving safety product globally and are also an important requirement in low-end vehicles in the
medium- and low-income markets. This provides the Company with an excellent opportunity to benefit from the expected growth in this
segment of the market.

The market for airbags, where Autoliv has a global market share of around 47%, is expected to grow mainly as result of higher installation
rates of inflatable curtains, side airbags, and knee airbags. Additionally, the front center airbag is expected to start to contribute to the
market growth.

The Company's ability to consistently outperform market growth is rooted in a steady flow of new safety technologies, a strong focus on
quality, and a superior production and engineering footprint.

The Company's competitors

Autoliv is the clear market leader in passive safety components and systems for the automotive industry with an estimated global market
share of around 45%.

ZF, one of the Company's largest competitors, is a global leader in driveline and chassis technology as well as in passive safety
technologies and is one of the largest global automotive suppliers.

Another large competitor is Joyson Safety Systems (JSS), a subsidiary of Ningbo Joyson Electronic Corp. JSS is the result of the merger
between Key Safety Systems (KSS) and Takata Corporation after KSS acquired Takata in 2018.

In Japan, Brazil, South Korea, and China, there are a number of local suppliers that have close ties with the domestic vehicle
manufacturers. For example, Toyota uses “keiretsu” (in-house) suppliers Tokai Rika for seatbelts and Toyoda Gosei for airbags and
steering wheels. These suppliers generally receive most of the Toyota business in Japan, in the same way, Mobis, a major supplier to
Hyundai/Kia in South Korea, generally receives a significant part of their business.

Other competitors include Nihon Plast and Ashimori in Japan, Yanfeng and Jinheng in China, Samsong in South Korea, and Chris Cintos
de Seguranca in South America. Collectively, these competitors account for the majority of the remaining market share in passive safety.

Additional information concerning the Company's products, markets and competition is included in the “Risks and Risk Management”
section under Item 7 of this Annual Report.

Manufacturing and Production

See “Item 2. Properties” for a description of Autoliv’s principal properties. The component factories manufacture inflators, propellant,
initiators, textile cushions, webbing, pressed steel parts, springs, and overmolded steel parts used in seatbelt and airbag assembly and
steering wheels. The assembly factories source components from a number of parties, including Autoliv’s own component factories, and
assemble complete restraint systems for “just-in-time” delivery to customers. The products manufactured by Autoliv’s consolidated
subsidiaries in 2023 consisted of 148 million complete seatbelt systems (of which 100 million were fitted with pretensioners), 127 million
side airbags (including curtain airbags and front center airbags), 63 million frontal airbags, 6 million other airbags and 22 million steering
wheels.

Autoliv’s “just-in-time” delivery system is designed to accommodate the specific requirements of each customer for low levels of inventory
and rapid stock delivery service. “Just-in-time” deliveries require final assembly or, at least, distribution centers in geographic areas close
to customers to facilitate rapid delivery. The fact that the major automobile manufacturers are continually expanding their production
activities into more countries and require the same or similar safety systems as those produced in Europe, Japan, or the U.S. increases
the importance for suppliers to have assembly capacity in several countries. Consolidation among the Company's customers also
supports this trend.

Autoliv’s assembly operations generally are not constrained by capacity considerations unless there is a disruption in the supply of raw
materials and components. When dramatic shifts in LVP occur, Autoliv can generally adjust capacity in response to any changes in
demand within a few days by adding or removing work shifts and within a few months by adding or removing standardized production
and assembly lines. Most of Autoliv’s assembly factories can make sufficient space available to accommodate additional production lines
to satisfy foreseeable increases in capacity. As a result, Autoliv can usually adjust its manufacturing capacity faster than its customers
can adjust their capacity as a result of fluctuations in the general demand for vehicles or in the demand for a specific vehicle model,
provided that customers promptly notify Autoliv when they become aware of such changes in demand. However, these types of
adjustments can be costly and can impact Autoliv's operating margin.

When significant volatility in LVP occur, as we have seen in 2022 and 2023 due to supply disruptions, or when there is a shift in regional
LVP, the capacity adjustments can take more time and be more costly. Currently, the volatility of LVP and orders from the Company,
while more stable, continue to be more volatile than prior to the Covid-19 pandemic. Additionally, when there is significant demand for a
given product due to a major recall of a competitor’s product, like certain of the Company's customers have experienced, capacity
adjustments may take time.

The Company could experience disruption in its supply or delivery chain, which could cause one or more of its customers to halt or delay
production. For more information, see Item 1A – “Risk Factors” in this Annual Report.

Quality Management

Autoliv believes that superior quality is a prerequisite to being considered a leading global supplier of automotive safety systems and is
key to the Company's financial performance, because quality excellence is critical for winning new orders, preventing recalls, and
maintaining low scrap rates. Autoliv has for many years emphasized a “zero-defect” proactive quality policy and continues to strive to
improve its working methods. Autoliv’s products are expected to always meet performance expectations and be delivered to its customers
at the right times and in the right amounts. The Company believes its continued quality improvements further enhance the Company's
reputation among its customers, employees, and governmental authorities.

Although quality has always been paramount in the automotive industry, especially for safety products, automobile manufacturers have
become increasingly focused on quality with even less tolerance for any deviations. This intensified focus on quality is partially due to an
increase in the number of vehicle recalls for a variety of reasons (not just safety), including a few high-profile vehicle recalls. This trend
is likely to continue as automobile manufacturers introduce even stricter quality requirements and regulating agencies and other
authorities increase the level of scrutiny given to vehicle safety issues. The Company has not been immune to the recalls that have been
impacting the automotive industry.

The Company continues to drive its quality initiative called “Q5,” which was initiated in the summer of 2010. It is an integral part of the
Company's strategy of shaping a proactive quality culture of zero defects. It is called “Q5” because it addresses quality in five dimensions:
products, customers, growth, behavior, and suppliers. The goal of Q5 is to firmly tie together quality with value within all of the Company's
processes and for all of its employees, thereby leading to the best value for its customers. Since 2010, the Company has continually
focused on this quality initiative to provide additional skills training to more employees and suppliers. These activities have significantly
improved the Company's quality performance.

In the Company's pursuit of quality excellence, the Company developed a chain of four “defense lines” to deal with potential quality issues.
The defense lines are: 1) robust product designs, 2) flawless components from suppliers and the Company's own in-house component
companies, 3) manufacturing flawless products with a system for verifying that the Company's products conform with specifications, and
4) an advanced traceability system in the event of a recall.

The Company's pursuit of quality excellence extends from the earliest phases of product development to the proper disposal of a product
following many years of use in a vehicle. Autoliv’s comprehensive Autoliv Product Development System (“APS”) includes several key
check points during the process of developing new products that are designed to ensure that such products are well-built and have no
hidden defects. Through this process, the Company works closely with its suppliers and customers to set clear standards that help to
ensure robust component design and lowest cost for function in order to proactively prevent problems and ensure the Company delivers
only the best designs to the market.

The APS, based on the goals of improving quality and efficiency, is at the core of Autoliv’s manufacturing philosophy. APS integrates
essential quality elements, such as mistake proofing, statistical process control and operator involvement, into the manufacturing
processes so all Autoliv associates are aware of and understand the critical connection between themselves and the Company's lifesaving
products. This “zero-defect” principle extends beyond Autoliv to the entire supplier base. All of the Company's suppliers must accept the
strict quality standards in the global Autoliv Supplier Manual, which defines the Company's quality requirements and focuses on preventing
bad parts from being produced by its suppliers and helps eliminate defective intermediate products in the Company's assembly lines as
early as possible. In addition, Autoliv’s One Product One Process (“1P1P”) initiative is its strategy for developing and managing
standardization of both core products and customer-specific features, leading not only to improved quality, but also greater cost efficiency
and more efficient supply chain management.

IATF 16949:2016 is one of the automotive industry’s most widely used international standards for quality management. All Autoliv facilities
that ship products to OEMs are regularly certified according to the International Automotive Task Force (IATF) standards.

Environmental and Safety Regulations

For information on how environmental and safety regulations impact the Company's business, see “Risk Factors – ‘Our business may be
adversely affected by laws or regulations, including environmental, occupational health and safety, and other governmental regulations’,
“Global climate change could negatively affect our business”, “Our goals, targets, and ambitions related to sustainability and emissions
reduction, and our public statements and disclosures regarding them, expose us to numerous risks” and “Our business may be adversely
affected by changes in automotive safety regulations or concerns that drive further regulation of the automobile safety market”” in Item
1A and “Risks and Risk Management” in Item 7 of this Annual Report.

Climate change

The Company is committed to operating its business in an environmentally sustainable manner, meaning developing and producing
products in a resource efficient way while limiting the Company's environmental impact in the most material areas of greenhouse gas
emissions, energy use, waste, and water. With particular emphasis on climate action, the Company actively engages with its customers,
suppliers, and others to drive sustainable mobility.

In June 2021, the Company launched an updated climate strategy including new long-term climate ambitions:

•

Carbon neutrality in own operations by 2030, and

Net-zero emissions across our supply chain by 2040

These industry-leading climate ambitions are aligned with a 1.5°C trajectory and should position the Company as the supplier of choice
for the most climate-focused customers, helping to ensure the Company's competitiveness now and in the future. In addition to these
ambitions, the Company adopted Science Based Targets (SBTs) for 2030 covering its own operations as well as the supply chain. The
targets were approved in January 2022 and are available at the SBTi website.

For more information about how climate change impacts the Company's business, see "Risk factors – Global climate change could
negatively affect our business” in Item 1A of this Annual Report.

Raw Materials

Direct material purchased from external suppliers represents approximately 55% of the Company's net sales in 2023. The Company
mainly purchases manufactured components and raw materials for its operations. The Company takes several actions to manage the
raw material fluctuations, such as competitive sourcing and looking for alternative materials. The Company is also taking necessary
actions to gradually implement raw materials with a lower carbon emission footprint.

For information on the sources and availability of raw materials, see "Operational Risks - Component costs" in Item 7 and “Risk Factors
– Changes in the source, cost, availability of, and regulations pertaining to raw materials and components may adversely affect our profit
margins” in Item 1A of this Annual Report.

Intellectual Property

The Company has developed a considerable amount of proprietary technology related to automotive safety systems and relies on many
patents to protect such technology. The Company's intellectual property plays an important role in maintaining its competitive position in
a number of the markets the Company serves. For information on the Company's use of intellectual property and its importance to the
Company, see “Risk Factors – If our patents are declared invalid or our technology infringes on the proprietary rights of others, our ability
to compete may be impaired” in Item 1A of this Annual Report.

Backlog

The Company has frame contracts with automobile manufacturers and such contracts are typically entered into up to three years before
the start of production of the relevant car model or platform and provide for a term covering the life of such car model or platform including
service parts after a vehicle model is no longer produced. These contracts, however, do not typically provide minimum quantities, firm
prices, or exclusivity but instead permit the automobile manufacturer to resource the relevant products at given intervals (or at any time)
from other suppliers. We sometimes refer to this backlog as our order intake or order book. For more information about order intake see
“Risk Factors – The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related
to LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales” in Item 1A
of this Annual Report.

Dependence on Customers

In 2023, the Company's top five customers represented around 48% of its consolidated sales and the Company's top ten customers
represented around 78% of its consolidated sales. This reflects the concentration of manufacturers in the automotive industry. The five
largest OEMs in 2023 accounted for around 46% of global LVP, and the ten largest OEMs accounted for around 66% of global LVP. A
delivery contract is typically for the lifetime of a vehicle model, which is normally between five and seven years depending on customer
platform sourcing preferences and strategies.

For information on the Company's dependence on customers, see “Risk Factors – Our business could be materially and adversely
affected if we lost any of our largest customers or if they were unable to pay their invoices” in Item 1A of this Annual Report, and
“Dependence on Customers” under the section “Strategic Risks” in Item 7 of this Annual Report, and Note 19 “Segment Information” to
the Consolidated Financial Statements

Customer sales trends

Asian vehicle producers have steadily become increasingly important, mainly driven by growth with Japanese and Chinese OEMs. As a
group they represented around 44% of global sales in 2023, of which Japanese OEMs accounts for more than two thirds. This is a result
of the Company's stronger market position based on its local presence in Japan. The Chinese OEMs as a group accounted for around
6% of the Company's global sales in 2023, with Great Wall representing more than 1% of the Company's global sales. European based
brands accounted for 29% of the Company's global sales in 2023. The U.S. based OEMs (including Chrysler and new EV manufactures)
accounted for 23% of the Company's global sales in 2023. Globally one of the Company's strongest growing customers from 2022 to
2023 was Honda, closely followed by Toyota.

Research, Development and Engineering, net (R,D&E)

No single customer project accounted for more than 4% of Autoliv’s total R,D&E, net spending during 2023. To support Autoliv’s product
portfolio, additional expertise is brought in-house via technology partnerships and licensing agreements.

During 2023, gross expenditures for R,D&E amounted to $618 million compared to $595 million in 2022. Of these amounts, $193 million
in 2023 and $205 million in 2022 were related to customer-funded engineering projects and crash tests reimbursed by the customers.
Net of this income, R,D&E expenditures in 2023 was $425 million compared to $390 million in 2022. Of the R,D&E, net expense in 2023,
85% was for projects and programs where the Company has customer orders, typically related to vehicle models in development. The
remaining 15% was mainly for new innovations, products and standardizations that will yield benefits over time.

Regulatory Costs

The fitting of seatbelts in most types of motor vehicles is mandatory in almost all countries and many countries have strict laws regarding
the use of seatbelts while in vehicles. In addition, most developed countries require that seats in intercity buses and commercial vehicles
be fitted with seatbelts. In the U.S., federal legislation requires frontal airbags on the driver-side and the passenger-side of all new
passenger cars, sport utility vehicles, pickup trucks, and vans.

For information concerning the material effects on the Company's business relating to its compliance with government safety regulations,
see “Risk Factors – ‘Our business may be adversely affected by laws or regulations, including environmental, occupational health and
safety, and other governmental regulations’ and ‘Our business may be adversely affected by changes in automotive safety regulations or
concerns that drive further regulation of the automobile safety market’” in Item 1A of this Annual Report and in Item 7 under the section
“Risks and Risk Management” of this Annual Report.

Human Capital Management

The Company's drive for excellence is what makes Autoliv the world’s leading supplier of automotive safety systems. From the earliest
stages of product development to sales and design to the final delivery of the finished product, Autoliv's employees are driven by the
Company's mission to Save More Lives.

The successful execution of the Company's strategies relies on its ability to shape a quality and performance-oriented culture, and to
adapt quickly to sudden shifts in its circumstances, such as supply chain disruptions and geopolitical instability. As the Company moves
forward its workforce (employees plus temporary personnel) strives to respond with agility to new possibilities to grow and improve the
Company's business whilst delivering with excellence to its customers. The Company builds a winning team by focusing on creating a
work environment that attracts, retains, and engages its employees.

The table below shows the Company's total workforce as of December 31, 2023, and 2022.

Total workforce
Whereof:

Direct workforce in manufacturing
Indirect workforce
Temporary workforce

Diversity and Inclusion

2023

2022

70,300

52,500
17,800

11%

69,100

50,600
18,500

11%

When attracting, developing and retaining talent, the Company seeks individuals who hold varied experiences and viewpoints to create
an inclusive and diverse workplace that allows each employee to do their best work and drive the Company's collective success. The
Company's workforce reflects the diversity of the countries and cultures in which it operates. At the end of 2023, 49% of the Company's
workforce and 20% of the Company's senior management positions were held by women.

The Company has operations in 25 countries, with 18% of its workforce located in Asia (excluding China), 31% in the Americas, 14% in
China, and 37% in Europe (including South Africa, Tunisia and Turkey).

The table below show the Company's workforce by age group and gender in % at the end of 2023.

% of Men
1%
5%
10%
18%
15%
2%

Age group
>60
51-60
41-50
31-40
21-30
<20

% of Women
1%
5%
11%
16%
14%
2%

Talent Attraction, Development, and Retention

The Company believes that attraction, development, and retention of talent is essential to its success, especially in today's environment.
The Company offers an inclusive work environment where its employees are challenged and achieve great things together. Supporting
the development of the employees is essential in a highly competitive and rapidly changing environment. An important cornerstone of
each employee’s growth is the ongoing dialogue between the team member and manager, which is summarized during an annual
Performance and Development Dialogue (PDD). During the year, 99% of targeted employees conducted a PDD with their managers. To
provide opportunities for professional and personal growth of the employees, the Company has a multitude of development channels,
including technical and specialist career paths, international assignments, and other such programs.

The Company provides market-based competitive compensation through its salary, annual incentive, and long-term incentive programs
and benefits packages that promote employee well-being across all aspects of their lives.

Health and Safety

The Company is committed to providing a zero accident work environment that promotes the health, safety, and welfare of its employees.
Autoliv’s production facilities implement the Company's health and safety management system, which is supported by leadership teams.
Implementation of the system as well as the ISO 45001 health and safety management system is monitored through internal and external
audits. At the end of 2023, 61% of production facilities were certified according to ISO 45001.

The Company further supports employees’ health and well-being by providing the means necessary to allow many of its employees to
work remotely.

Labor Relations

The Company offers fair terms and conditions of employment. The Company's overall purpose, Code of Conduct, talent development
strategies, and employment policies support the principles in the United Nations Universal Declaration of Human Rights, and the
International Labor Organization’s Fundamental Principles and Labor Standards.

The Company considers its relationship with its employees to be good. While there have been a small number of minor labor disputes
historically, such disputes have not had a significant or lasting impact on the Company's relationship with its employees, and customer
perception of its employee practices or its business results.

Major unions in Europe to which some of the Company's employees belong include: IG Metall in Germany; Unite the union in the United
Kingdom; Confédération Générale des Travailleurs (CGT), Confédération Française Démocratique du Travail (CFDT), Confédération
Française de l’Encadrement Confédération Générale des cadres (CFE-CGC), Force Ouvrière (FO), Confédération Française des
Travailleurs Chrétiens (CFTC), Solidaires, Unitaires, Démocratiques (SUD) and Conféderation Autonome du Travail (CAT) in France;
Union General de Trabajadores (UGT), Union Sindical Obrera (USO), Comisiones Obereras (CCOO) and Confederacion General de
Trabajadores (CGT) in Spain; IF Metall, Unionen, Sveriges Ingenjörer and Ledarna in Sweden; Industriaal- ja Metallitöötajate
Ametiühingute Liit (IMTAL) in Estonia; Vasas Szakszervezeti Szövetség (Hungarian Metallworkers‘ Federation) in Hungary; Samorzadny
NiezalezĪny Zwiazek Zawodowy Pracownikow and Zakladowa Organizacja Związkowa NSZZ Solidarnosc in Poland; National Union of
Metal Workers South Africa (NUMSA) in South Africa; Union Générale des Travailleurs Tunisiens (UGTT) and Union des travailleurs
Tunisiens (UTT) in Tunisia, and Türk Metal Sendikasi in Turkey.

In addition, the Company’s employees in other regions are represented by the following unions: Unifor in Canada; Sindicato de Jornaleros
y Obreros Industriales y de la Industria Maquiladora de H.Matamoros, Tamaulipas (CTM); Sindicato Nacional de Trabajadores de la
Industria Metalúrgica y Similares, Federación Valle de Toluca (CTM); Sindicato Nacional “Nueva Cultura Laboral” de trabajadores de la
fabricación, manufactura, ensamble de autopartes mecánicas y eléctricas y componentes de la Industria Automotriz, C.R.O.C.; Sindicato
Nacional de Trabajadores de la Industria Arnesera, Eléctrica, Automotriz y Aeronáutica de la República Mexicana; “Nueva Cultura
Laboral” “de trabajadores de la fabricación, manufactura, ensamble de autopartes mecánicas y eléctricas y componentes de la industria
Automotriz (CROC); Sindicato Nacional de Trabajadores de la Industria de Autopartes en General y/o Similares, Conexos y sus Servicios
de la República Mexicana, in Mexico; Sindicato Industrial de Trabajadores de la Transformación, Construcción, Automotriz, Agropecuaria,
Plásticos y de la Industria en General, del Comercio y Servicios, Similares, anexos y conexos del Estado de Querétaro “Ángel Castillo
Resendiz”; Sindicato dos Metalúrgicos de Taubaté e Região in Brazil; Autoliv India Employees Association, Bangalore & Mysore in India;
Korean Metal Workers Union (FKTU) in South Korea; Autoliv Japan Roudou Kumiai in Japan, and All-China Federation of Trade Unions
in China.

In many European countries, Canada, Mexico, Brazil and South Korea, wages, salaries and general working conditions are negotiated
with local unions and/or are subject to centrally negotiated collective bargaining agreements. The terms of the Company's various
agreements with unions typically range between one to three years. Some of the Company's subsidiaries in Europe, Canada, Mexico,
Brazil and South Korea must negotiate with the applicable local unions with respect to important changes in operations, working and
employment conditions. Twice a year, members of the Company’s management conduct a meeting with the European Works Council
(EWC) to provide employee representatives with important information about the Company and a forum for the exchange of ideas and
opinions. In many Asia Pacific countries, the central or regional governments provide guidance each year for salary adjustments or
statutory minimum wage for workers. The Company's employees may join associations in accordance with local legislation and rules,
although the level of unionization varies significantly throughout its operations.

Available Information

The Company files or furnishes with the United States Securities and Exchange Commission (the “SEC”) periodic reports and
amendments thereto, which include annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy
statements, and other information. Such reports, amendments, proxy statements, and other information are made available free of
charge on the Company's corporate website at www.autoliv.com and are available as soon as reasonably practicable after they are
electronically filed with the SEC. The Company's Corporate Governance Guidelines, committee charters, code of conduct, and
other documents governing the Company are also available on its corporate website at www.autoliv.com. The SEC maintains an
internet site that contains reports, proxy statements and other information at www.sec.gov. Hard copies of the above-mentioned
documents can be obtained free of charge by contacting the Company at: Autoliv, Inc., P.O. Box 70381, SE-107 24, Stockholm,
Sweden.

Item 1A. Risk Factors
Our business, financial condition, operating results and cash flows may be impacted by a number of factors. A discussion of the risks
associated with these material risk factors is included below.

RISKS RELATED TO GEOPOLITICAL DEVELOPMENTS

Although we have minimal operations in Russia no operations in the Middle East, we face risks related to the war in Ukraine
and the Red Sea Conflict, which has had, and is expected to continue to have, an adverse impact on our business and
financial performance

The macro-economic uncertainty has been exacerbated by the war in Ukraine, the war in Israel/Gaza and the Red Sea Conflict. Although
the length and impact of the ongoing war/conflicts is highly unpredictable, it exacerbated volatility in commodity prices, energy prices,
inflationary pressures, credit markets, foreign exchange rates and supply chain disruptions. Furthermore, governments in the United
States, United Kingdom, Canada, and European Union have each imposed export controls on certain products and financial and
economic sanctions on certain industry sectors and parties in Russia. Existing or additional sanctions could further adversely affect the
global economy and further disrupt the global supply chain. Inflation is also currently high world-wide and may continue for an unforeseen
time.

Due in part to the negative impact of the war in Ukraine, we have experienced exacerbated increases in raw materials and increased
costs for transportation, energy, and commodities. Although have negotiated and continue to negotiate with our customers with respect
to these additional costs, commercial negotiations with our customers may not be successful or may not offset all of the adverse impact
of higher transportation, energy and commodity costs. Additionally, even if we are successful with respect to negotiations with customers
relating to cost increases, there may be delay before we recover any increased costs. These may have a material negative impact on our
business and results of operations.

RISKS RELATED TO OUR INDUSTRY
The cyclical nature of automotive sales and production can adversely affect our business. Our business is directly related to
LVP in the global market and by our customers, and automotive sales and LVP are the most important drivers for our sales

Automotive sales and production are highly cyclical and can be affected by general or regional economic or industry conditions, the level
of consumer demand, recalls and other safety issues, labor relations issues, technological changes, fuel prices and availability, vehicle
safety regulations and other regulatory requirements, governmental initiatives, trade agreements, political volatility (especially in energy
producing countries and growth markets), changes in interest rate levels and credit availability, and other factors. Some regions around
the world may at various times be more particularly impacted by these factors than other regions. Economic declines that result in a
significant reduction in automotive sales and production by our customers have in the past had, and may in the future have, a material
adverse effect on our business, results of operations, and financial condition. Our sales are also affected by inventory levels of our
customers. We cannot predict when our customers will decide to either increase or reduce inventory levels or whether new inventory
levels will approximate historical inventory levels. This may exacerbate variability in our production schedules and order intake and, as a
result, our revenues and financial condition. Uncertainty regarding inventory levels may be exacerbated by consumer financing programs
initiated or terminated by our customers or governments as such changes may affect the timing of their sales. Changes in automotive
sales and LVP and/or customers’ inventory levels will have an impact on our financial targets, earnings guidance, and estimates. In
addition, we base our growth projections in part on business awards, or order intake, made by our customers. However, actual production
orders from our customers may not approximate the awarded business or our estimated order intake. Any significant reduction in
automotive sales and/or LVP by our customers, whether due to general economic conditions or any other factors relevant to sales or
LVP, could have a material adverse effect on our business, results of operations, and financial condition.

Growth rates in safety content per vehicle, which can be impacted by changes in consumer trends, political decisions, crash
test ratings and safety regulations could affect our results in the future

The Company estimates that the average global content of passive safety systems per light vehicle increased in 2023 to around $261.
Vehicles produced in different markets may have various passive safety content values. For example, in high-income markets, the
premium vehicle segment has an average passive safety content values of over $350 per vehicle, whereas in growth markets such as
China and India the average passive safety content per vehicle is approximately $209 and $104, respectively. Due to the majority of the
growth in global LVP over time being concentrated in growth markets, our operating results may be impacted if the passive safety content
per vehicle remains low and if the penetration of automotive safety systems does not increase in these regions. As passive safety content
per vehicle is also an indicator of our sales development, should these trends continue, the average value of passive safety systems per
vehicle could decline.

We operate in a highly competitive market

The market for passive safety systems is highly competitive. We compete with a number of other companies that produce and sell similar
products. Among other factors, our products compete on the basis of price, quality, manufacturing and distribution capability, design and
performance, technological innovation, delivery, and service. Some of our competitors are subsidiaries (or divisions, units or similar) of
companies that are larger and have greater financial and other resources than us. Some of our competitors may also have a “preferred
status” as a result of special relationships or ownership interests with certain customers. Our ability to compete successfully depends, in
large part, on our success in continuing to innovate and manufacture products that have commercial success with our customer and end-
consumers, differentiating our products from those of our competitors, continuing to deliver quality products in the time frames required
by our customers, and maintaining best-cost production. We continue to invest in technology and innovation which we believe will be

critical to our long-term growth. Our ability to maintain and improve existing products, while successfully developing and introducing
distinctive new and enhanced products that anticipate changing customer and consumer preferences and capitalize upon emerging
technologies will be a significant factor in our ability to remain competitive. If we are unsuccessful or are less successful than our
competitors in predicting the course of market development, developing innovative products, processes, and/or use of materials or
adapting to new technologies or evolving regulatory, industry or customer requirements, we may be placed at a competitive disadvantage.
For example, our customers are increasingly focused on developing electric vehicles. If we fail to be awarded business on electric vehicle
models, or these electric vehicles are not successful commercially, it will harm our future business prospects. Our competitive environment
continues to change, including increased competition from entrants outside the traditional automotive industry, creating uncertainty about
the future competitive landscape. Given the competitive nature of our business, the amount of awards we are awarded relative to our
peers may decrease over time and our past order intake is not an indicator of future levels or order intake. Additionally, OEMs rigorously
evaluate our performance and products against those of our competitors on the basis of product quality, reliability and cost-effectiveness.
If one or more of our OEM customers determine that they could achieve overall better financial results by incorporating a competitor’s
new or existing product, it could affect our ability to be competitive and may decrease our current market share. The inability to compete
successfully could have a material adverse effect on our business, results of operations, and financial condition.

The discontinuation, lack of commercial success, or loss of business with respect to a particular vehicle model for which we
are a significant supplier could reduce our sales and harm our business

A number of our customer contracts generally require us to supply a customer’s annual requirements for a particular vehicle model and
assembly facilities, rather than for manufacturing a specific quantity of products. Such contracts range from one year to the life of the
model, which is generally four to seven years. These contracts are often subject to renegotiation, sometimes as frequently as annually,
which may affect product pricing, and generally may be terminated by our customers at any time. Therefore, the discontinuation of, the
loss of business with respect to, or a lack of commercial success of a particular vehicle model or brand for which we are a significant
supplier could reduce our sales and harm our business prospects, operating results, cash flows, or financial condition.

We are working to expand our product offerings beyond light passenger vehicles to include other mobility safety solutions. If
we are not successful in expanding our product offerings or if it takes longer or costs are more than expected, it could harm
our business

The Company is working to expand its product offerings to focus on mobility safety solutions. Because mobility safety product offerings
are currently in the development stages, it is difficult for us to anticipate the level of sales they may generate. The expansion of our
product offering will require us to invest time and resources to develop innovative products, such as wearables and helmets, that keep
pace with continuing changes in industry standards and to reach new customers who have rapidly changing preferences. Our product
offerings might not receive customer acceptance if customer preferences shift to other products, and our future success depends in part
on our ability to anticipate and respond to these changes. If we are not successful in expanding our product offerings or if it takes longer
or costs are more than expected, it could negatively impact our financial results, competitive position, and future business prospects.

RISKS RELATED TO OUR BUSINESS

We may incur material losses and costs as a result of product liability, warranty, and recall claims that may be brought against
us or our customers

We face risks related to product liability claims, warranty claims, and recalls in the event that any of our products actually or allegedly are
defective, fail to perform as expected, or the use of our products results, or is alleged to result, in bodily injury and/or property damage.
We may not be able to anticipate all of the possible performance or reliability problems that could arise with our products after they are
released to the market. Additionally, increasing regulation and reporting requirements regarding potentially defective products, particularly
in the U.S., may increase the possibility that we become involved in additional product liability or recall investigations or claims. See –
“Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation of the
automobile safety market”. Although we currently carry product liability and product recall insurance in excess of our self-insured amounts,
no assurance can be made that such insurance will provide adequate coverage against potential claims, such insurance is available or
will continue to be available in the appropriate markets, or that we will be able to obtain such insurance on acceptable terms in the future.
The cost of such insurance has risen in recent years and our self-insured amounts have risen as well. Although we have invested and
will continue to invest in our engineering, design, and quality infrastructure, we cannot give any assurance that our products will not suffer
from defects or other deficiencies or that we will not experience material warranty claims or product recalls. In the future, we could
experience material warranty or product liability losses and incur significant costs to process and defend these claims. A successful claim
brought against us in excess of available insurance coverage, if any, or a requirement to participate in any product recall, could have a
material adverse effect on our operating results, cash flows, or financial condition. Future recalls could result in costs not covered by
insurance in excess of our self-insurance, further government inquiries, litigation, reputational harm, and could divert management’s
attention away from other matters. The main variables affecting the costs of a recall are the number of vehicles ultimately determined to
be affected by the issue, the cost per vehicle associated with a recall, the determination of proportionate responsibility among the
customer, the Company, and any relevant sub-suppliers, and actual insurance recoveries. Every vehicle manufacturer has its own
practices regarding product recalls and other product liability actions relating to its suppliers, and the performance and remedial
requirements vary between jurisdictions. Due to recall activity in the automotive industry over the past decade, some vehicle manufactures
have become even more sensitive to product recall risks. As suppliers become more integrally involved in the vehicle design process and
assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contribution when
faced with recalls and product liability claims. Product recalls in our industry, even when they do not involve our products, can harm the
reputations of our customers, competitors, and us, particularly if those recalls cause consumers to question the safety or reliability of
products similar to those we produce. In addition, with global platforms and procedures, vehicle manufacturers are increasingly evaluating
our quality performance on a global basis; any one or more quality, warranty or other recall issue(s) (including issues affecting few units
and/or having a small financial impact) may cause a vehicle manufacturer to implement measures which may have a severe impact on
our operations, such as a global, temporary or prolonged suspension of new orders. In addition, as our products more frequently use

global designs and are based on or utilize the same or similar parts, components or solutions, there is a risk that the number of vehicles
affected globally by a failure or defect will increase significantly with a corresponding increase in our costs. A warranty, recall or product
liability claim brought against us in excess of our available insurance may have a material adverse effect on our business. Vehicle
manufacturers are also increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair
and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold us responsible for some or
the entire repair or replacement costs of defective products under new vehicle warranties when the product supplied did not perform as
represented. Accordingly, the future costs of warranty claims by our customers may be material. However, the final amounts determined
to be due related to these matters could differ materially from our recorded warranty estimates and our business prospects, operating
results, cash flows or financial condition may be materially impacted as a result. In addition, as we adopt new technology, we face an
inherent risk of exposure to the claims of others that we have allegedly violated their intellectual property rights. We cannot assure that
we will not experience any material warranty, product liability or intellectual property claim losses in the future or that we will not incur
significant costs to defend such claims. See “If our patents are declared invalid or our technology infringes on the proprietary rights of
others, our ability to compete may be impaired”.

Escalating pricing pressures from our customers may adversely affect our business

The automotive industry continues to experience aggressive pricing pressure from customers. This trend is partly attributable to the major
automobile manufacturers’ strong purchasing power. As with other automotive component manufacturers, we are often expected to quote
fixed prices or are forced to accept prices with annual price reduction commitments for long-term sales arrangements or discounted
reimbursements for engineering work. Price reductions have impacted our sales and profit margins and are expected to continue to do
so in the future. Our future profitability will depend upon, among other things, our ability to continuously reduce our cost per unit and
maintain our cost structure, enabling us to remain cost-competitive. Our profitability is also influenced by our success in designing and
marketing technological improvements in automotive safety systems, which helps us offset price reductions by our customers. If we are
unable to offset continued price reductions through improved operating efficiencies and reduced expenditures, these price reductions
may have a material adverse effect on our business prospects, operating results, cash flows or financial condition.

We could experience disruption in our supply or delivery chain, which could cause one or more of our customers to halt or
delay production

We, as with other component manufactures in the automotive industry, ship our products to customer vehicle assembly facilities
throughout the world on a “just-in-time” basis for our customers to maintain low inventory levels. Our suppliers (external suppliers as well
as our own production sites) use a similar method in providing raw materials to us. However, this “just-in-time” method makes the logistics
supply chain in our industry very complex and vulnerable to disruption. Disruptions in our supply chain may result for many reasons,
including closures of one of our own or one of our suppliers’ facilities or critical manufacturing lines due to strikes or other labor disputes,
mechanical failures, electrical outages, fires, explosions, critical pollution levels, critical health and safety and other working conditions
issues (including epidemics and pandemics), natural disasters, war, political upheaval, as well as logistical complications due to labor
disruptions, weather or natural disasters, acts of terrorism or violence (such as the conflict in the Red Sea), mechanical failures, and
legislation or regulation regarding the transport of hazardous goods. Additionally, we may experience disruptions if there are newly
imposed trade restrictions or delays in customs processing, including if we are unable to obtain government authorization to export or
import certain materials, including materials that may be viewed as dangerous such as the propellant used for our inflators. As we continue
to expand in growth markets, the risk of such disruptions is heightened. The unavailability of even a single small subcomponent necessary
to manufacture one of our products, for whatever reason, could force us to cease production of that product, possibly for a prolonged
period. Similarly, a potential quality issue could force us to halt deliveries while we validate the products. Even when products are ready
to be shipped, or have been shipped, delays may arise before they reach our customer. Also, similar difficulties for other suppliers may
force our customers to halt production, which may in turn impact our sales shipments to such customers. When we fail to timely deliver,
we may have to absorb our own costs for identifying and resolving the ultimate problem as well as expeditiously producing and shipping
replacement components or products. Generally, we must also carry the costs associated with “catching up,” such as overtime and
premium freight. If we are the cause of a customer being forced to halt production, the customer may seek to recoup all of its losses and
expenses from us. These losses and expenses could be very significant and may include consequential losses such as lost profits. Where
a customer halts production because of another supplier failing to deliver on time, we may not be fully compensated, if at all. Thus, any
such supply chain disruptions could severely impact our operations and/or those of our customers and force us to halt production for
prolonged periods of time which could expose us to material claims for compensation and have a material adverse effect on our business
prospects, operating results, or financial condition.

Adverse developments affecting our suppliers could harm our profitability

Any significant disruption in our supplier relationships, particularly relationships with single-source suppliers, could harm our profitability.
Furthermore, some of our suppliers may not be able to sufficiently manage the currency commodity cost volatility and/or sharply changing
volumes while still performing as we expect. For example, recalls or field actions from our customers can stress the capacity of our supply
chain and may inhibit our ability to timely deliver order volumes. We may incur costs as we try to make contingency plans to manage the
risks for delivery delays, production delays, production issues or delivery of non-conforming products by our suppliers.

Changes in the source, cost, availability of and regulations pertaining to raw materials and components may adversely affect
our profit margins

Our business uses a broad range of raw materials and components in the manufacture of our products, nearly all of which are generally
available from a number of qualified suppliers. Our industry may be affected from time to time by limited supplies or price fluctuations of
certain key components and materials. Strong worldwide demand for certain raw materials has had a significant impact on prices and
short-term availability in recent years. Such price increases have and could materially increase our operating costs and materially and
adversely affect our profit margin, as direct material costs amounted to approximately 55% of our net sales in 2023, of which approximately
half is the raw material cost portion. Inflation is currently high world-wide and may continue for some time. Commercial negotiations with
our customers and suppliers may not always offset all of the adverse impact of higher raw material, energy, labor, logistics, and commodity
costs. Even where we are able to pass price increases along to our customer, there may be (i) a lapse of time before we are able to do

so such that we must absorb the cost increase, and (ii) a negative impact on our relationships with such customers and suppliers which
may limit our success in securing future awards from customers and securing acceptable supplies from suppliers. In addition, no
assurances can be given that the magnitude and duration of such cost increases or any future cost increases could not have a larger
adverse impact on our profitability and consolidated financial position than currently anticipated. Furthermore, if costs for raw materials
go down, the price for our products may decrease as well as the price is indexed to the cost of raw materials. Additionally, various
government regulators require companies that manufacture products containing certain minerals and their derivatives that are known as
“conflict minerals”, originating from the Democratic Republic of Congo or adjoining countries to perform due diligence and report the
source of such materials. There are significant resources associated with complying with these requirements, including diligence efforts
to determine the sources of conflict minerals used in our products and potential changes to our processes or supplies as a consequence
of such diligence efforts. As there may be only a limited number of suppliers able to offer certified “conflict free” conflict minerals, there
can be no assurance that we will be able to obtain necessary conflict free minerals from such suppliers in sufficient quantities or at
competitive prices. We may face reputational challenges if we determine that certain of our products contain minerals not determined to
be conflict free or if we are unable to sufficiently verify the origins for all minerals used in our products through the procedures we may
implement. Furthermore, our customers are also increasingly requiring us to track sustainable sources of certain raw materials, which
also requires additional diligence efforts and there can be no assurance that we will be able to obtain these materials in a cost-efficient
and sustainable manner. Accordingly, these rules and customer requirements may adversely affect our business prospects, operating
results, cash flows, or financial condition.

Our business could be materially and adversely affected if we lost any of our largest customers or if they were unable to pay
their invoices

We are dependent on a few large customers with strong purchasing power. This is the result of customer consolidation in the last few
decades. In 2023, our top five customers represented around 48% of our consolidated sales, and our largest customer contract accounted
for around 2.8% of our consolidated sales. Although business with any given customer is typically split into several contracts (either on
the basis of one contract per vehicle model or on a broader platform basis), the loss of business from any of our major customers (whether
by lower overall demand for vehicles, cancellation of existing contracts or the failure to award us new business) could have a material
adverse effect on our business, results of operations, and financial condition. Similarly, further consolidation of our customers in the future
could make us more reliant upon a smaller group of customers for a significant portion of our consolidated sales and negatively impact
our bargaining power when contracting with such customers. Customers may put us on a “new business hold,” which would limit our
ability to quote or be awarded all or part of their future vehicle contracts if quality or other issues arise in the vehicles for which we were
a supplier. This could have a significant negative impact on our order intake. Such new business holds range in length and scope and
are generally accompanied by a certain set of remedial conditions that must be met before we are eligible to bid for new business. Meeting
any such conditions within the prescribed timeframe may require additional Company resources. A failure to satisfy any such conditions
may have a material adverse impact on our financial results in the long term. There is a risk that one or more of our major customers may
be unable to pay our invoices as they become due or that a customer will simply refuse to make such payments given its financial
difficulties. If a major customer would enter into bankruptcy proceedings or similar proceedings whereby contractual commitments are
subject to stay of execution and the possibility of legal or other modification, or if a major customer otherwise successfully procures
protection against us legally enforcing its obligations, it is likely, absent special relief such as having a “preferred status”, that we will be
forced to record a substantial loss. Additional information concerning our major customers is included in Note 19, Segment Information,
of the Consolidated Financial Statements in this Annual Report.

Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial
performance

To compete effectively in the automotive supply industry, we must be able to launch new products to meet our customers’ timing,
performance, and quality standards. At times, we face an uneven number of launches and some launches, for various reasons, may have
shortened launch lead times. We cannot provide assurance that we will be able to install and certify the equipment needed to produce
products for new programs in time for the start of production, or that the transitioning of our manufacturing facilities and resources to full
production for such new programs will not impact production rates or other operational efficiency measures at our facilities. In addition,
we cannot provide assurance that our customers will execute on schedule the launch of their new product programs, for which we might
supply products. Additionally, as a Tier 1 supplier, we must effectively coordinate the activities of numerous suppliers in order to launch
programs successfully. Given the complexity of new program launches, especially involving new and innovative technologies, we may
experience difficulties managing product quality, timeliness and associated costs. In addition, new program launches require a significant
ramp up of costs; however, the sales related to these new programs generally are dependent upon the timing and success of the
introduction of new vehicles by the Company’s customers. Our inability to effectively manage the timing, quality and costs of these new
program launches could adversely affect our business prospects, operating results, cash flows, or financial condition.

Changes in our product mix may impact our financial performance

We sell products that have varying profit margins. Our financial performance can be impacted depending on the mix of products we sell
during a given period. Our earnings guidance, estimates, and financial targets assume a certain geographic sales mix as well as a product
sales mix. If actual results vary significantly from this projected geographic and product mix of sales, our operating results and financial
condition could be negatively impacted.

We are involved from time to time in legal proceedings and our business may suffer as a result of adverse outcomes of current
or future legal proceedings

We are, from time to time, involved in litigation, regulatory proceedings, and commercial or contractual disputes that may be significant.
These matters may include, without limitation, disputes with our suppliers and customers, intellectual property claims, shareholder
litigation, government investigations, class action lawsuits, personal injury claims, product liability claims, environmental issues, antitrust,

customs and VAT disputes, and employment and tax issues. In such matters, government agencies or private parties may seek to recover
from us very large, indeterminate amounts in penalties or monetary damages (including, in some cases, treble or punitive damages) or
seek to limit our operations in some way. The possibility exists that claims may be asserted against us and their magnitude may remain
unknown for long periods of time. These types of lawsuits could require a significant amount of management’s time and attention and a
substantial legal liability or adverse regulatory outcome and the substantial expenses to defend the litigation or regulatory proceedings
may have a material adverse effect on our customer relationships, business prospects, reputation, operating results, cash flows, and
financial condition. No assurances can be given that such proceedings and claims will not have a material adverse impact on our
profitability and consolidated financial position or that our established reserves or our available insurance will mitigate such impact.

We may be subject to civil antitrust litigation that could negatively impact our business

The Company may be subject to civil antitrust lawsuits in the future in countries that permit such civil claims, including lawsuits or other
actions by our customers. The Company was previously the subject of an investigation by the European Commission (“EC”) regarding
possible anti-competitive behavior among certain suppliers to the automotive vehicle industry. The Company paid a fine to resolve these
matters in 2019. As a result of the outcome of the EC investigation, we are and we could be, subject to subsequent civil disputes with
non-governmental third parties and civil or stockholder litigation stemming from the same facts and circumstances underlying the EC
investigation. These types of lawsuits require significant management time and attention and could result in significant expenses as well
as unfavorable outcomes that could have a material adverse impact on our customer relationships, business prospects, reputation,
operating results, cash flows or financial condition, and our insurance may not mitigate such impact. See Note 17, Contingent Liabilities,
to the Consolidated Financial Statements in this Annual Report.

Work stoppages, slow-downs or other labor issues at our customers’ facilities or at our facilities could adversely affect our
operations

Because the automotive industry relies heavily on “just-in-time” delivery of components during the assembly and manufacture of vehicles,
a work stoppage or slow-down at one or more of the Company’s facilities could have a material adverse effect on our business. Similarly,
if any of our customers were to experience a work stoppage or slow-down, that customer may halt or limit the purchase of our products.
Similarly, a work stoppage or slow-down at another supplier could interrupt production at one of our customers’ facilities which would
have the same effect. While labor contract negotiations at our facilities historically have rarely resulted in work stoppages, no assurances
can be given that we will be able to negotiate acceptable contracts with these unions or that our failure to do so will not result in work
stoppages. A work stoppage or other labor disruption at one or more of our facilities or our customers’ facilities could cause us to shut
down production facilities supplying these products, which could have a material adverse effect on our business, results of operations,
and financial condition.

Our ability to operate our company effectively could be impaired if we fail to attract and retain executive officers and other key
personnel

Our ability to operate our business and implement our strategies effectively depends, in part, on the efforts of our executive officers and
other key employees. In addition, our future success will depend on, among other factors, our ability to attract, develop, and retain other
qualified personnel, particularly engineers and other employees with software and technical expertise. The loss of the services of any of
our executive officers or other key employees or the failure to attract, develop, or retain other qualified personnel could have a material
adverse effect on our business.

Restructuring, efficiency, and strategic initiatives and capacity alignments are complex and difficult and at any time additional
restructuring steps may be necessary, possibly on short notice and at significant cost

Our restructuring, efficiency, and strategic initiatives and capacity alignments include efforts to adjust our manufacturing capacity, direct
and indirect labor workforce, and cost structure to meet current and projected operational and market requirements, including plant
closures, transfer of sourcing to best cost countries, consolidation of our supplier base, and standardization of products to reduce our
overhead costs and consolidate our operational centers. The successful implementation of our restructuring activities and capacity
alignments will involve sourcing, logistics, technology, and employment arrangements. Because these restructuring, efficiency, and
strategic initiatives and capacity alignments can be complex, there may be difficulties or delays in the implementation of any such
initiatives and capacity alignments or they may not be immediately effective, resulting in an adverse material impact on our performance.
In addition, there is a risk that inflation, high-turnover rates, and increased competition may reduce the efficiencies now available in best-
cost countries to levels that no longer allow for cost-beneficial restructuring opportunities. Therefore, there can be no assurances that any
future restructurings or capacity alignments will be completed as planned or achieve the desired results. See Note 11, Restructuring, to
the Consolidated Financial Statements in this Annual Report.

A prolonged recession and/or a downturn in our industry could result in us having insufficient funds to continue our operations
and external financing may not be available to us or available only on materially different terms than what has historically been
available

Our ability to generate cash from our operations is highly dependent on automotive sales and LVP, the global economy, and the
economies of our important markets. If LVP were to remain on low levels for an extended period of time, we would experience a
significantly negative cash flow. Similarly, if cash losses for customer defaults rise sharply, we would experience a negative cash flow.
Such negative cash flow could result in our having insufficient funds to continue our operations unless we can procure external financing,
which may not be possible. Our access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient
amounts could be affected by credit rating downgrades, market volatility, market disruption, regulatory requirements, or other factors. Our
ability to obtain unsecured funding at a reasonable cost is dependent on our credit ratings or our perceived creditworthiness. Our current

credit rating could be lowered as a result of us experiencing significant negative cash flows, increasing our indebtedness and leverage,
or a dire financial outlook, which may affect our ability to procure financing. We may also for the same, or other reasons, find it difficult to
secure new long-term credit facilities, at reasonable terms, when our principal credit facility expires in 2027. Further, even our existing
unutilized credit facilities may not be available to us as agreed, or only at additional cost, if participating banks are unable to raise the
necessary funds, where, for instance, financial markets are not functioning as expected or one or more banks in our principal credit facility
syndicate were to default. As a result, we cannot assure you that we will continue to have sufficient liquidity to meet our operating needs.
In the event that we do not have sufficient external financing, we may be required to seek additional capital, sell assets, reduce or cut
back our operating activities or otherwise alter our business strategy. Information concerning our credit facilities and other financings are
included in Item 7 in this Annual Report in the section headed “Treasury Activities” and in Note 13, Debt and Credit Agreements, to the
Consolidated Financial Statements in this Annual Report.

Our indebtedness may harm our financial condition and results of operations

As of December 31, 2023, we have outstanding debt of $1.9 billion. We may incur additional debt for a variety of reasons. Although our
significant credit facilities and debt agreements do not have any financial covenants, our level of indebtedness will have several important
effects on our future operations, including, without limitation: a portion of our cash flows from operations will be dedicated to the payment
of any interest or could be used for amortization required with respect to outstanding indebtedness; increases in our outstanding
indebtedness and leverage will increase our vulnerability to adverse changes in general economic and industry conditions, as well as to
competitive pressure; depending on the levels of our outstanding debt, our ability to obtain additional financing for working capital,
acquisitions, capital expenditures, general corporate and other purposes may be limited; and potential future tightening of the availability
of capital both from financial institutions and the debt markets may have an adverse effect on our ability to access additional capital.

Governmental restrictions may impact our business adversely

Some of our customers are (or may be) owned by a governmental entity, receive various forms of governmental aid or support or are
subject to governmental influence in other forms, which may impact us as a supplier to these customers. As a result, they may be required
to partner with local entities or procure components from local suppliers to achieve a specific local content or be subject to other
restrictions regarding localized content or ownership. The nature and form of any such restrictions or protections, whatever their basis, is
very difficult to predict as is their potential impact. However, they are likely to be based on political rather than economical or operational
considerations and may materially impact our business.

Impairment charges relating to our assets, goodwill and other intangible assets could adversely affect our financial performance

We periodically review the carrying value of our assets, goodwill and other intangible assets for impairment indicators. If one or more of
our customers’ facilities cease production or decrease their production volumes, the assets we carry related to our facilities serving such
customers may decrease in value because we may no longer be able to utilize or realize them as intended. Where such decreases are
significant, such impairments may have a material adverse impact on our financial results. We monitor the various factors that impact the
valuation of our goodwill and other intangible assets, including expected future cash flow levels, global economic conditions, market price
for our stock, and trends with our customers. Impairment of goodwill and other identifiable intangible assets may result from, among other
things, deterioration in our performance and especially the cash flow performance of these goodwill assets, adverse market conditions
and adverse changes in applicable laws or regulations. If there are changes in these circumstances or the other variables associated with
the estimates, judgments and assumptions relating to the valuation of goodwill, when assessing the valuation of our goodwill items, we
may determine that it is appropriate to write down a portion of our goodwill or intangible assets and record related non-cash impairment
charges. In the event that we determine that we are required to write-down a portion of our goodwill items and other intangible assets
and thereby record related non-cash impairment charges, our financial condition and operating results would be adversely affected. For
additional information, see Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations -
Significant Accounting Policies and Critical Accounting Estimates – Goodwill and Intangibles”.

We face risks related to our defined benefit pension plans and employee benefit plans, including the need for additional funding
as well as higher costs and liabilities

Our defined benefit pension plans and employee benefit plans may require additional funding or give rise to higher related costs and
liabilities which, in some circumstances, could reach material amounts and negatively affect our operating results. We are required to
make certain year-end assumptions regarding our pension plans. Our pension obligations are dependent on several factors, including
factors outside our control such as changes in interest rates, the market performance of the diversified investments underlying the pension
plans, actuarial data and adjustments and an increase in the minimum funding requirements or other regulatory changes governing the
plans. Adverse equity market conditions and volatility in the credit market may have an unfavorable impact on the value of our pension
assets and our future estimated pension liabilities. Internal factors such as an adjustment to the level of benefits provided under the plans
may also lead to an increase in our pension liability. If these or other internal and external risks were to occur, alone or in combination,
our required contributions to the plans and the costs and net liabilities associated with the plans could increase substantially and have a
material effect on our business. Information concerning our benefit plans is included in Note 18, Retirement Plans, of the Consolidated
Financial Statements in this Annual Report.

We may not be able to, or we may decide not to, pay dividends or repurchase shares at a level anticipated by our shareholders,
which could reduce shareholder returns

The extent to which we pay dividends on our common stock and repurchase our common stock in the future is at the discretion of our
Board of Directors and depends upon a number of factors, including our earnings, financial condition, cash and capital needs,
indebtedness and leverage, and general economic or business conditions. No assurance can be given that we will be able to or will
choose to pay any dividends or repurchase any shares in the foreseeable future.

Cybersecurity incidents or other damage to our technology infrastructure could disrupt business operations, result in the loss
of critical and confidential information, and adversely impact our reputation and operating results

We rely extensively on information technology (“IT”) networks and systems, our global data centers and services provided over the
internet to process, transmit and store electronic information, and to manage or support a variety of business processes or activities
across our facilities worldwide. In addition, a greater number of our employees are working remotely which may increase cybersecurity
vulnerabilities and risk to our IT networks and systems. The secure operation of our IT networks and systems and the proper processing
and maintenance of this information are critical to our business operations. We have been, and likely will continue to be, subject to cyber-
attacks. Although we seek to deploy comprehensive security measures to prevent, detect, address and mitigate these threats, there has
been an increased level of activity, and an associated level of sophistication, in cyber-attacks against large multinational companies. The
ever-evolving threats mean we and our third-party service providers and vendors must continually evaluate and adapt our respective
systems and processes and overall security environment, as well as those of any companies we acquire. There is no guarantee that
these measures will be fully implemented, complied with, or effective in safeguarding against all data security breaches, system
compromises or misuses of data. Our security measures may be breached due to human or technological error, employee malfeasance,
system malfunctions or attacks from uncoordinated individuals or sophisticated and targeted measures known as advanced persistent
threats, directed at the Company, its products, its customers, its third-party service providers, and/or other entities with whom we do
business. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not
recognized until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate
preventative measures. Disruptions and attacks on our IT systems or the systems of third parties storing our data or employee
malfeasance or human or technological error could result in the misappropriation, loss, destruction or corruption of our critical data and
confidential or proprietary information, personal information of our employees, the leakage of our or our customers’ confidential
information, improper use of our systems and networks, production downtimes and both internal and external supply shortages, which
could have a material adverse effect on our results of operations. It may also result in the theft of intellectual property or other
misappropriation of assets, or otherwise compromise our confidential or proprietary information and materially disrupt our operations. The
potential consequences of a material cybersecurity incident include reputational damage, damaged customer relationships, loss of
revenue, lower order intake in the future, theft of intellectual property, litigation with third parties, diminution in the value of our investment
in research, development and engineering, diversion of the attention of management away from the operation of our business and
increased cybersecurity protection and remediation costs, legal claims and liability, regulatory scrutiny, sanctions, fines or penalties (which
may not be covered by our insurance policies), negative publicity, release of sensitive and/or confidential information, increases in
operating expenses, or lost revenues which in turn could adversely affect our competitiveness and results of operations. To the extent
that any disruption or security breach results in a misappropriation, loss, destruction or corruption of our customer’s information, it could
affect our relationships with our customers, create significant expense for us to investigate and remediate damage, lead to claims against
the Company and ultimately harm our business, strategy, result of operations, or financial condition. In addition, we may be required to
incur significant costs to protect against damage caused by these disruptions or security breaches in the future. In addition, as the
regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and
constantly changing requirements applicable to our business, compliance with those requirements could result in additional costs.
Furthermore, our technology systems are vulnerable to damage or interruption from natural disasters, power loss and telecommunication
failures. We continuously seek to maintain a robust program of information security and controls, however, any future significant
compromise or breach of our data security, whether external or internal, or misuse of customer, associate, supplier or Company data,
could result in significant costs, lost sales, fines, lawsuits, and damage to our reputation.

Third parties that maintain certain of our confidential and proprietary information could experience a cybersecurity incident

We rely on third parties to provide or maintain some of our IT systems, data centers and related services and do not exercise direct
control over these systems. Despite the implementation of security measures at third party locations, these IT systems, data centers and
cloud services are also vulnerable to security breaches or other disruptions. Additionally, we and certain of our third-party vendors, collect
and store personal information in connection with human resources operations and other aspects of our business. While we obtain
assurances that any third parties we provide data to will protect this information and, where we believe appropriate, monitor the protections
employed by these third parties, there is a risk the confidentiality of data held by us or by third parties may be compromised and expose
us to liability for such breach.

Global climate change could negatively affect our business

Increased public awareness and concern regarding global climate change will likely result in more regional and/or national requirements
to reduce or mitigate the effects of greenhouse gas emissions. In addition, our shareholders and customers also expect us to reduce our
greenhouse gas emissions. There continues to be a lack of consistent climate legislation, which creates economic and regulatory
uncertainty. Any future regulations aimed at mitigating climate change may negatively impact the prices of raw materials and energy as
well as the demand for certain of our customer’s products which could in turn impact demand for our products and impact our results of
operations. The costs of compliance and any changes to our operations mandated by new or amended laws, may be significant. We may
also face unexpected delays in obtaining permits and approvals required by such laws in connection with our manufacturing facilities,
which would hinder our operation of these facilities. Furthermore, any violations of these laws may result in substantial fines and penalties,
remediation costs, third party damages, or a suspension or cessation of our operations. We also face physical and transition risks from
climate change. The manifestations of climate change, such as extreme weather conditions or more frequent extreme weather events,
including wildfires, flooding, water stress and extreme heat, could disrupt our operations, damage our facilities, disrupt our supply chain,
including our customers or suppliers, impact the availability and cost of materials needed for manufacturing or increase insurance and
other operating costs. As a result, severe weather or a natural disaster that results in a prolonged disruption to our operations, or the
operations of our customers or suppliers, could have a material adverse effect on our operating results, cash flows or financial condition.

Our goals, targets and ambitions related to sustainability and emissions reduction, and our public statements and disclosures
regarding them, expose us to numerous risks

We have developed, and will continue to develop and set, goals, targets, ambitions and other objectives related to sustainability matters,
including our net-zero emission targets both for ourselves and our supply chain. Some of these are based on our internal scenario
analysis, which may not prove to be accurate and carries inherent uncertainties. Statements related to these goals, targets, ambitions

and objectives reflect our current plans and do not constitute a guarantee that they will be achieved. Our efforts to research, establish,
accomplish, and accurately report on these goals, targets, and objectives expose us to numerous operational, reputational, financial,
legal, and other risks. Additionally, greenhouse gas emissions, particular emissions that come from individuals and entities up and down
the value chain (otherwise known as Scope 3 emissions), are very difficult to estimate and our estimates may be materially different than
actual emissions. Additionally, accepted methodologies or regulatory requirements for estimating emissions, particularly Scope 3
emissions, continue to evolve. The manner in which we estimate and disclose Scope 3 emissions may differ from other companies and
may be different than future regulatory requirements, and currently, we do not include downstream Scope 3 emissions in our targets and
ambitions. If future governmental regulations require us to modify the basis of our Scope 3 emissions disclosure, our historically disclosed
Scope 3 emissions may change materially. Our ability to achieve any stated goal, target, ambition or objective, including with respect to
emissions reduction, is subject to numerous factors and conditions, some of which are outside of our control. For example, we have
announced that we are collaborating with Polestar to develop a climate neutral car. Such an endeavor requires the innovation and
collaboration with a number of partners and is subject to certain inherent risks, including the timetable in which it is achieved. We may
also have to purchase carbon offsets in order to meet our targets and objectives, which may not be available or may no longer be
considered acceptable to use to meet such targets.

Our business may face increased scrutiny from investors and other stakeholders related to our sustainability activities, including the goals,
targets, and objectives that we announce, and our methodologies and timelines for pursuing them. If our sustainability practices do not
meet investor or other stakeholder expectations and standards, which continue to evolve, our reputation, our ability to attract or retain
employees, and our attractiveness as an investment or business partner could be negatively affected. Similarly, our failure or perceived
failure to pursue or fulfill our sustainability-focused goals, targets, ambitions and objectives, to comply with ethical, environmental, or other
standards, regulations, or expectations, or to satisfy various reporting standards with respect to these matters, within the timelines we
announce, or at all, could adversely affect our business or reputation, as well as expose us to government enforcement actions and
private litigation.

Our business is exposed to risks inherent in international operations

RISKS RELATED TO INTERNATIONAL OPERATIONS

We currently conduct operations in various countries and jurisdictions, including locating certain of our manufacturing and distribution
facilities internationally, which subjects us to the legal, political, regulatory and social requirements and economic conditions in these
jurisdictions. Some of these countries are considered growth markets and emerging markets. International sales and operations,
especially in growth markets, subject us to certain risks inherent in doing business abroad, including: exposure to local economic
conditions; unexpected changes in laws, regulations, trade, or monetary or fiscal policy, including interest rates, foreign currency
exchange rates, and changes in inflation rates; foreign tax consequences; inability to collect, or delays in collecting, value-added taxes
and/or other receivables associated with remittances and other payments by subsidiaries; exposure to local political turmoil and
challenging labor conditions; changes in general economic and political conditions in countries where we operate, particularly in emerging
markets; expropriation and nationalization; enforcing legal agreements or collecting receivables through foreign legal systems; wage
inflation; currency controls, including lack of liquidity in foreign currency due to governmental restrictions, trade protection policies and
currency controls, which may create difficulty in repatriating profits or making other remittances; compliance with the requirements of an
increasing body of applicable anti-bribery laws; reduced intellectual property protection in various markets; investment restrictions or
requirements; and the imposition of product tariffs and the burden of complying with a wide variety of international and U.S. export laws.
The Company is subject to taxation in the U.S. and numerous foreign jurisdictions. The Organization for Economic Co-operation and
Development (“OECD”) continues its base erosion and profit shifting (“BEPS”) project begun in 2015 with new proposals for a global
minimum tax, further development of a coordinated set of rules for taxation and the allocation of taxing rights between jurisdictions. These
proposals, if adopted by countries in which we operate, could result in changes to tax policies, including transfer pricing policies, that
could ultimately impact our tax liabilities. On December 12, 2022, the European Union member states agreed to implement the OECD’s
Pillar 2 global corporate minimum tax at a rate of 15% on companies with revenues of at least $790 million, which went into effect in 2024.
The Pillar 2 rules are also in effect in the United Kingdom, Switzerland, and South Korea, among others. Similarly, the United States
passed the Inflation Reduction Act of 2022, which also imposes, among other things, a 15% corporate minimum tax for taxable years
beginning after December 31, 2022, on certain U.S. based companies that have average revenues over a three-year period of at least
$1 billion. Other countries including Canada and Australia are also actively considering changes to their tax laws to adopt certain parts
of the OECD’s proposals. The timing or impact of these proposals and recommendations is unclear at this point.

Changes in tax laws or policies by the U.S. or foreign jurisdictions could result in a higher effective tax rate on our worldwide earnings,
and any such change could have a material adverse effect on our business prospects, cash flows, operating results and financial
condition. Our international operations also depend upon favorable trade relations between the countries where we manufacture and sell
products and those foreign countries in which our customers and suppliers have operations. Changes in national policy, other
governmental action related to tariffs or international trade agreements, changes in social, political regulatory, and economic conditions
or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where the
Company currently manufactures and sells products, and any resulting negative sentiments towards the Company as a result of such
changes could depress economic activity and restrict our access to suppliers or customers and have a material adverse effect on our
cash flows, operating results and financial condition. Increasing our manufacturing footprint in the growth markets and our business
relationships with automotive manufacturers in these markets are particularly important elements of our strategy. As a result, our exposure
to the risks described above may be greater in the future, and our exposure to risks associated with developing countries, such as the
risk of political upheaval and reliability of local infrastructure, may increase.

Our foreign operations may subject us to risks relating to laws governing international relations

Due to our global operations, we are subject to many laws governing international relations (including, but not limited to, the Foreign
Corrupt Practices Act, and other anti-bribery regulations in foreign jurisdictions where we do business), which prohibit improper payments
to government officials and restrict where and how we can do business, what information or products we can supply to certain countries

and what information we can provide to authorities in governmental authorities. We also export components and products that are subject
to certain trade-related U.S. laws, including the U.S. Export Administration Act and various economic sanctions programs administered
by the U.S. Treasury’s Office of Foreign Assets Control. Although we have procedures and policies in place that should mitigate the risk
of violating these laws, there is no guarantee that they will be sufficiently effective. If and when we acquire new businesses, we may not
be able to ensure that the pre-existing controls and procedures meant to prevent violations of these laws were effective, and violations
may occur if we are unable to timely implement corrective and effective controls and procedures when integrating newly acquired
businesses. Any allegations of noncompliance with these laws could harm our reputation, divert management attention and result in
significant expenses, and could therefore materially harm our business prospects, operating results and financial condition.

Our business in Asia is subject to aggressive competition and is sensitive to economic, market, and political conditions

We operate in the automotive supply market throughout Asia including the highly competitive markets in China, South Korea, and India.
In each of these markets we face competition from both international and smaller domestic manufacturers. Due to the significance of the
Asian markets for our profit and growth, we are exposed to risks in China, South Korea, and India. We anticipate that additional
competitors, both international and domestic, may seek to enter the Chinese, South Korean, and/or Indian markets resulting in increased
competition. Increased competition may result in lower sales volumes, price reductions, reduced margins and our inability to gain or hold
market share. There have been periods of increased market volatility and moderation in the levels of economic growth in China, which
resulted in periods of lower automotive production growth rates in China than those previously experienced. Our business in Asia is
sensitive to economic and market conditions that drive automotive sales volumes in China, South Korea, and India and may be impacted
if there are reductions in vehicle demand in those markets. There are also trade and political tensions between China and other countries
in the western world. If we are unable to maintain our position in the Asian markets, the pace of growth slows, or vehicle sales in these
markets decrease, our business prospects, operating results and financial condition could be materially adversely affected.

Our business in Europe is sensitive to economic and market conditions

We operate in the automotive supply market throughout Europe and are increasingly subject to the risks arising from adverse changes
in the European economy. A significant deterioration in economic conditions, increased volatility, further declines in the European credit,
equity, and foreign currency markets or geopolitical disruptions, including the war in Ukraine, could have negative impacts on our business
operations in Europe and may lead to delays in or cancellations of customer orders. We also face competition from both international and
smaller domestic manufacturers who may seek to enter the European markets resulting in increased competition. Increased competition
may result in lower sales volumes, price reductions, reduced margins, and our inability to gain or hold market share.

Global integration may result in additional risks

Because of our efforts to manage costs by integrating our operations globally, we face the additional risk that, should any of the other
risks discussed herein materialize, the negative effects could be more pronounced. For example, while supply delays of a component
have typically only affected a few customer vehicle models, such a delay could now affect several vehicle models of several customers
in several geographic areas. Similarly, any recall or warranty issue we face due to a product defect or failure is now more likely to involve
a larger number of units in several geographic areas.

Our business faces exchange rate risks

As a result of our global presence, a significant portion of our revenues and expenses are denominated in currencies other than the U.S.
dollar. We are therefore subject to foreign currency risks and foreign exchange exposure. Such risks and exposures include: transaction
exposure, which arises because the cost of a product originates in one currency and the product is sold in another currency; revaluation
effects, which arise from valuation of assets denominated in other currencies than the reporting currency of each unit; translation exposure
in the income statement, which arises when the income statements of non-U.S. subsidiaries are translated into U.S. dollars; translation
exposure in the balance sheet, which arises when the balance sheets of non-U.S. subsidiaries are translated into U.S. dollars; and
changes in the reported U.S. dollar amounts of cash flows. We cannot predict exchange rate volatility or the extent of its impact on our
future financial results. We typically denominate foreign transactions in foreign currencies to achieve a natural hedge. However, a natural
hedge cannot be achieved for all our currency flows; therefore, a net transaction exposure remains within the group. The net exposure
can be significant and creates a transaction exposure risk for the Company. The Company does not hedge translation exposure. However,
we do engage in foreign exchange rate hedging from time to time related to foreign currency transactions. For additional information, see
Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk - Currency risks.

RISKS RELATED TO ACQUISITIONS

We face risks in connection with acquisitions, joint ventures, partnerships, and other strategic transactions

Our growth has been enhanced through strategic transactions, including acquisitions of businesses, products and technologies,
partnerships, strategic alliances, and joint development agreements that we believe will complement our business. We regularly evaluate
acquisition opportunities, frequently engage in acquisition discussions, conduct due diligence activities in connection with possible
acquisitions, and, where appropriate, engage in acquisition negotiations. We may not be able to successfully identify suitable acquisition
and joint venture candidates or complete transactions on acceptable terms, integrate acquired operations into our existing operations or
expand into new markets. Our failure to identify suitable strategic transactions may restrict our ability to grow our business. These strategic
transactions also involve numerous additional risks to us and our investors, including: risks related to retaining acquired management
and employees; difficulties in integrating acquired technologies, products, operations, services and personnel with our existing
businesses; diversion of our management’s attention from other business concerns; assumption of contingent liabilities; potential adverse
financial impacts, including from the amortization of expenses related to intangible assets and from potential impairment of goodwill;
incurrence of indebtedness; and potential damage to existing customer relationships or lack of customer acceptance or inability to attract
new customers as a result of these transactions. In the future, we may pursue acquisitions of businesses or products that are

complementary to our business but for which we have historically had little or no direct experience. These transactions can involve
significant challenges and risks as well as significant time and resources that may divert management’s attention from other business
activities. If we fail to adequately manage these risks, the acquisitions and other strategic transactions may not result in revenue growth,
operational synergies or service or technology enhancements, which could adversely affect our financial condition.

RISKS RELATED TO INTELLECTUAL PROPERTY

If our patents are declared invalid or our technology infringes on the proprietary rights of others, our ability to compete may be
impaired

We have developed a considerable amount of proprietary technology related to automotive safety systems and rely on a number of
patents to protect such technology. Our intellectual property plays an important role in maintaining our competitive position in a number
of the markets we serve. At present, we hold more than 6,500 patents and patent applications covering a large number of innovations
and product ideas, mainly in the fields of seatbelt and airbag technologies. In addition to our in-house research and development efforts,
we seek to acquire rights to new intellectual property through corporate acquisitions, asset acquisitions, licensing and joint venture
arrangements. Our patents and licenses expire on various dates during the period from 2024 to 2043. We do not expect the expiration of
any single patent or license to have a material adverse effect on our business, operating results and financial condition. Developments
or assertions by or against us relating to intellectual property rights could negatively impact our business. We primarily protect our
innovations with patents and vigorously protect and defend our patents, trademarks and know-how against infringement and unauthorized
use. If we are not able to protect our intellectual property and our proprietary rights and technology, we could lose those rights and incur
substantial costs policing and defending those rights. We also generate license revenue from these patents, which we may lose if we do
not adequately protect our intellectual property and proprietary rights. Our means of protecting our intellectual property, proprietary rights
and technology may not be adequate, and our competitors may independently develop technologies that are similar or superior to our
proprietary technologies, duplicate our technologies, or design around the patents we own or license. In addition, the laws of some foreign
countries do not protect our proprietary rights to as great an extent as the laws of the U.S. and we may encounter significant problems in
protecting and defending our intellectual property rights in certain foreign jurisdictions. This could make it difficult for us to stop the
infringement of our patents or misappropriation of our other intellectual property rights. Proceedings to enforce our patent rights in foreign
jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business. Accordingly, our
efforts to protect our intellectual property rights in such countries may be inadequate.

We may not be able to protect our proprietary technology and intellectual property rights, which could result in the loss of our
rights or increased costs

Although we believe that our products and technology do not infringe the proprietary rights of others, third parties may assert infringement
claims against us in the future. Additionally, we license proprietary technology, from third parties, that is covered by patents, and we
cannot be certain that any such patents will not be challenged, invalidated, or circumvented. Such licenses may also be non-exclusive,
meaning our competition may also be able to access such technology. Further, we expect to continue to expand our products and services
and expand into new businesses, including through developing new products, acquisitions, joint ventures and joint development
agreements, which could increase our exposure to patent and other intellectual property claims from competitors and other parties. If
claims alleging patent, copyright or trademark infringement are brought against us and are successfully prosecuted against us, they could
result in substantial costs. If a successful claim is made against us and we fail to develop non-infringing technology, our business,
operating results and financial condition could be materially adversely affected. In addition, certain of our products utilize components
that are developed by third parties and licensed to us. If claims alleging patent, copyright or trademark infringement are brought against
such licensors and successfully prosecuted, they could result in substantial costs, and we may not be able to replace the functions
provided by these licensors. Alternate sources for the technology currently licensed to us may not be available in a timely manner, may
not provide the same functions as currently provided or may be more expensive than products currently used. We may develop proprietary
information through our in-house research and development efforts, consulting arrangements or research collaborations with other entities
or organizations. We may seek to protect this proprietary information by entering into confidentiality agreements or consulting, services
or employment agreements that contain non-disclosure and non-use provisions with our employees, consultants, scientific advisors and
other third parties. However, we may fail to enter into the necessary agreements, and even if entered into, these agreements may be
breached or may otherwise fail to prevent disclosure, third-party infringement or misappropriation of our proprietary information.

We may not be able to respond quickly enough to changes in technology and technological risks and to develop our intellectual
property into commercially viable products

Changes in legislative, regulatory, or industry requirements or in competitive technologies may render certain of our products obsolete or
less attractive to our customers. We currently license certain proprietary technology to third parties and, if such technology becomes
obsolete or less attractive, those licensees could terminate our license agreements, which could adversely affect our results of operations.
Our ability to anticipate changes in technology and regulatory standards and to successfully develop and introduce new and enhanced
products on a timely basis will be a significant factor in our ability to remain competitive. We cannot provide assurance that we will be
able to achieve the technological advances that may be necessary for us to remain competitive or that certain of our products will not
become obsolete. We are also subject to the risks generally associated with new product introductions and applications, including lack of
market acceptance, delays in product development and failure of products to operate properly. As part of our business strategy, we may
from time to time seek to acquire businesses or assets that provide us with additional intellectual property. We may experience problems
integrating acquired technologies into our existing technologies and products, and such acquired intellectual property may be subject to
known or contingent liabilities such as infringement claims.

Some of our products and technologies may use “open source” software, which may restrict how we use or distribute our
products or require that we release the source code of certain products subject to those licenses

Some of our products and technologies may incorporate software licensed under so-called “open source” licenses. In addition to risks
related to license requirements, usage of open source software can lead to greater risks than use of third-party commercial software, as
open source licensors generally do not provide warranties or controls on origin of the software. Additionally, open source licenses typically
require that source code subject to the license be made available to the public and that any modifications or derivative works to open
source software continue to be licensed under open source licenses. These open source licenses typically mandate that proprietary
software, when combined in specific ways with open source software, become subject to the open source license. If we combine our
proprietary software in such ways with open source software, we could be required to release the source code of our proprietary software.
We take steps to ensure that our proprietary software is not combined with, and does not incorporate, open source software in ways that
would require our proprietary software to be subject to an open source license. However, few courts have interpreted open source
licenses; therefore, the way these licenses may be interpreted and enforced is subject to some uncertainty.

RISKS RELATED TO GOVERNMENT REGULATIONS AND TAXES

Our business may be adversely affected by laws or regulations, including environmental, occupational health and safety, and
other governmental regulations

We are subject to various federal, state, local and foreign laws and regulations, including those related to the requirements of
environmental, occupational health and safety, financial, and other matters. We cannot predict the substance or impact of pending or
future legislation or regulations, or the application thereof. The introduction of new laws or regulations or changes in existing laws or
regulations, or the interpretations thereof, could increase the costs of doing business for us or our customers or suppliers or restrict our
actions and adversely affect our business prospects, operating results, cash flows or financial condition. Our operations are subject to
environmental and safety laws and regulations governing, among other things, emissions to air, discharges to waters and the generation,
handling, storage, transportation, treatment and disposal of waste and other materials. The operation of automotive parts manufacturing
facilities entails risks in these areas, and we cannot assure that we will not incur material costs or liabilities as a result. Additionally,
environmental laws, regulations, and permits and the enforcement thereof change frequently and have tended to become increasingly
stringent over time, which may necessitate substantial capital expenditures or operating costs or may require changes of production
processes. Although we have no known pending material environmental issues, there is no assurance that we will not be adversely
impacted by any environmental costs, liabilities, or claims in the future either under present laws and regulations or those that may be
adopted or imposed in the future. Our costs, liabilities, and obligations relating to environmental matters may have a material adverse
effect on our business, operating results, cash flows, or financial condition. Our facilities in the U.S. are subject to regulation by the
Occupational Safety and Health Administration (“OSHA”), which regulates the protection of the health and safety of workers. In addition,
the OSHA hazard communication standard requires that we maintain information about hazardous materials used or produced in our
operations and that we provide this information to employees, state and local governmental authorities and residents. We are also subject
to occupational safety regulations in other countries. Our failure to comply with government occupational safety regulations, including
OSHA requirements, or general industry standards relating to employee health and safety, keep adequate records or monitor occupational
exposure to regulated substances could expose us to liability, enforcement, and fines and penalties, and could have a material adverse
effect on our business, operating results, cash flows, or financial condition. Although we employ safety procedures in the design and
operation of our facilities, there is a risk that an accident or injury to one of our employees could occur in one of our facilities. Any accident
or injury to our employees could result in litigation, manufacturing delays and harm to our reputation, which could negatively affect our
business, operating results, and financial condition.

Our business may be adversely affected by changes in automotive safety regulations or concerns that drive further regulation
of the automobile safety market

Government vehicle safety regulations are a key driver in our business. Historically, these regulations have imposed ever more stringent
safety regulations for vehicles. Safety regulations have a positive impact on driver awareness and acceptance of automotive safety
products and technology. These more stringent safety regulations often require vehicles to have more safety content per vehicle and
more advanced safety products, which has thus been a driver of growth in our business. However, these regulations are subject to change
based on a number of factors that are not within our control, including new scientific or medical data, adverse publicity regarding the
industry recalls and safety risks of airbags or seatbelts (for instance, to children and small adults), domestic and foreign political
developments or considerations, and litigation relating to our products and our competitors’ products. Changes in government regulations
in response to these and other considerations could have a severe impact on our business. Although we believe that over time safety will
continue to be a regulatory priority, if government priorities shift and we are unable to adapt to changing regulations, our business may
suffer material adverse effects. The regulatory obligation of complying with safety regulations could increase as federal and local
regulators impose more stringent compliance and reporting requirements in response to product recalls and safety issues in our industry.
We are subject to existing stringent requirements under the National Traffic and Motor Vehicle Safety Act of 1966 (the “Vehicle Safety
Act”), including a duty to report, subject to strict timing requirements, safety defects with our products. The Vehicle Safety Act imposes
potentially significant civil penalties for violations including the failure to comply with such reporting actions. We are also subject to the
existing U.S. Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act, which requires equipment
manufacturers, such as Autoliv, to comply with “Early Warning” requirements by reporting certain information to the National Highway
Traffic Safety Administration (“NHTSA”) such as: information related to defects or reports of injury related to our products. TREAD imposes
criminal liability for violating such requirements if a defect subsequently causes death or bodily injury. In addition, the Vehicle Safety Act
authorizes NHTSA to require a manufacturer to recall and repair vehicles that contain safety defects or fail to comply with U.S. federal
motor vehicle safety standards. Sales into foreign countries may be subject to similar regulations. Due to the record recall of airbag
inflators of one of our competitors, NHTSA has become more active in requesting information from suppliers and vehicle manufactures
regarding potential product defects.

Negative or unexpected tax developments could adversely affect our effective tax rate, operating results and financial condition

Changes in, or changes in the application of, U.S. or foreign tax laws, regulations or accounting principles with respect to matters such
as tax base, tax rates, transfer pricing, dividends and restrictions on certain forms of tax relief or limitations on favorable tax treatment
could affect the calculation of our income taxes and other tax liabilities, our effective tax rate, and the carrying value of our deferred tax
assets. Our annual tax rate is based on our income and the tax laws in the jurisdictions in which we operate. Because of our global
operations we face uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. Significant
judgment and estimation are required in determining our effective tax rate and in evaluating our tax positions, in many cases where the
ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable, the final determination of our tax
liability may be different from what is reflected in our historical income tax provisions and accruals. We are regularly examined by tax
authorities around the world and in a number of jurisdictions, we are currently under examination, which inherently creates uncertainty.
Although we periodically assess the likelihood of adverse outcomes, negative or unexpected results from one or more of such reviews
and audits, including any related interest or penalties imposed by governmental authorities, could increase our effective tax rate and
adversely impact our operating results, cash flows or financial condition. The effective tax rates used for interim reporting are based on
our projected full-year geographic earnings mix and take into account projected tax costs on intercompany dividends from lower tier
subsidiaries. Changes in currency exchange rates, earnings mix among taxing jurisdictions, or the ability of our subsidiaries to pay
dividends could impact our reported effective tax rates, or cause fluctuations in the tax rate from quarter to quarter. Certain anti-trust
judgments or settlements may not be tax deductible, which could have a material negative impact to our annual tax rate. A number of
other factors may also increase our effective tax rate, which could have an adverse impact on our profitability and operating results. Due
to our numerous foreign operations, our tax rate may be impacted by our global mix of earnings if our pre-tax income is lower than
anticipated in countries with lower statutory tax rates and/or is higher than anticipated in countries with higher statutory tax rates. Based
on U.S. regulatory rules, we do not record current or deferred tax liabilities on permanent investments in our foreign subsidiaries. See
Note 5, Income Taxes, to the Consolidated Financial Statements in this Annual Report.

We may not be able to fully realize our deferred tax assets

We currently carry deferred tax assets, net of valuation allowances, resulting from deductible temporary differences and tax loss carry-
forwards, both of which will reduce taxable income in the future. However, deferred tax assets may only be realized against taxable
income. The amount of our deferred tax assets could be reduced, from time to time, due to adverse changes in our operations or in
estimates of future taxable income from operations during the carry-forward period as a result of a deterioration in market conditions or
other circumstances. Any such reduction would adversely affect our income in the period of the adjustment. Additional information on our
deferred tax assets is included in Note 5, Income Taxes, to the Consolidated Financial Statements in this Annual Report.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 1C. Cybersecurity

Autoliv maintains a cybersecurity program designed to identify, assess, manage, mitigate, and respond to cybersecurity threats as an
integrated part of the Company’s overall operations. The objective is to provide protection against cybersecurity threats to our employees,
operations, data, and products.

Cybersecurity risk management and strategy

Cybersecurity risk management for the Company is undertaken both through dedicated cybersecurity risk management processes and
within the Company’s overall Enterprise Risk Management program, which is overseen by the Audit and Risk Committee of the Company’s
Board of Directors.

Autoliv has established an Enterprise Risk Management framework aligned to the ISO 31000:2019 to ensure that the context, principles,
and processes for risk management are embedded and integrated with the operations of the company. All risks across the Autoliv risk
universe, including cybersecurity, are assessed with bottom-up risk assessments and subsequently are aggregated and reported to the
Audit and Risk Committee of the Company’s Board of Directors.

Autoliv utilizes the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework in combination with other
corresponding and partially mandated frameworks to guide cybersecurity risk management. This approach includes the identification,
assessment, response, and management of risks arising from cybersecurity threats that may result in material adverse effects on the
confidentiality, integrity, and availability of our business, data and information systems. The Company contracts with third parties to assess
Autoliv’s cybersecurity program relative to its peers, utilizing the NIST framework as a baseline. Furthermore, Autoliv is pursuing, under
TISAX (Trusted Information Security Assessment Exchange), an assessment and exchange mechanism for information security in the
automotive industry, as well as compliance with road vehicle cybersecurity requirements as applicable to the supply chain under ISO
21434.

Frequent testing/auditing activities, bottom-up cybersecurity risk assessments, vulnerability scanning, monitoring of external threat
intelligence and supplier risk sources, and 24/7 incident monitoring are executed by the cybersecurity function to inform our understanding
of the cybersecurity risk landscape, including solutions from third-party service providers, and what areas of enhancement to prioritize.
Further input is gained from regular maturity assessments executed by third parties as well as TISAX assessments executed by external
audit bodies.

Autoliv combines expertise from our internal cybersecurity function with additional specialist capacities from external consultants and
partners as may be from time to time. Separately, because we understand the risks associated with engaging third party vendors, such
as service providers, consultants and partners, in our cybersecurity risk management processes, we conduct security assessments pre-
engagement and monitor their work to mitigate any identified risks.

Autoliv has not experienced any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the
registrant. Despite our efforts, there can be no assurance that our cybersecurity risk management processes and measures described
will be fully implemented, complied with or effective in protecting our systems and information. We face risks from cybersecurity threats
that, if realized, are reasonably likely to materially affect our business strategy, result of operations or financial condition. For a full
discussion of these cybersecurity risks, please see our Risk Factors in Item 1A.

Board and management governance

Management's Role

The Chief Information Security Officer (CISO) is responsible for overseeing the Company’s cybersecurity practices. Our CISO joined
Autoliv in 2015. He has 29 years of information technology experience, including six years as CISO. The CISO reports directly to the CFO
but, in line with the corporate governance model, the CISO’s activities are formally governed through a management board, the
“Digitalization and IT Management Board” (“DITM Board”) comprised of the Chief Information Officer (CIO) and certain members of
Autoliv’s Executive Management Team (“EMT”) representing engineering, supply chain management, operations and manufacturing,
quality and project management, finance, information technology, and divisional teams. The DITM Board meets at least quarterly with
cybersecurity as a standing agenda item.

In addition to the standing DITM Board meetings, the CISO, when needs arise, meets with the full EMT typically at least semi-annually to
report on, or discuss, specific cybersecurity-related topics.

The Cybersecurity function in Autoliv reports to the CISO. The cybersecurity function includes team members in all of the Company’s
divisions including technical security architects and incident response team members. The core team is supported by the broader
organization with security coordinators in each plant and tech center and additional functional security experts as deemed relevant, such
as in supply chain management and engineering. The function has the responsibility to operate day-to-day activities (e.g., testing, incident
monitoring and response, vulnerability scanning and awareness training) as well as to drive prioritized improvements (as identified through
the risk management processes), together with other relevant Autoliv functions and stakeholders. The security operations center (“SOC”),
part of the Cybersecurity function, monitors Autoliv for cyber incidents 24/7. A documented incident response process and numerous
documented playbooks provide the SOC guidance on how to respond for each type of incident, including categorization and principles

for escalation. Incidents are escalated in the organization according to defined criteria to engage a level of authority that is deemed
appropriate, such as the Corporate Crisis Management Team if necessary.

Board of Directors Oversight

Our Board, in coordination with the Audit and Risk Committee, oversees the Company’s Enterprise Risk Management process, including
the management of risks arising from cybersecurity threats. Our Board has delegated the primary responsibility to oversee cybersecurity
matters to the Audit and Risk Committee. Both the Board and the Audit and Risk Committee periodically review the measures we have
implemented to identify and mitigate cybersecurity risks.

The Audit and Risk Committee receives information from the CISO and other members of management on at least a quarterly basis which
is supplemented by a more extensive briefing from the CISO and management on at least a semi-annual basis on cybersecurity matters,
including updates on cybersecurity training programs and the results of external assessments, as applicable. The CISO provides at least
an annual briefing to the Board of Directors on these same topics.

The routine reporting to the Audit and Risk Committee and the Board includes as appropriate the highlights from the full spectrum of work
done within the Company’s cybersecurity program. The briefings by the CISO to the Audit and Risk Committee and Board also include
the review of certifications and cybersecurity maturity assessments by management and third parties.

Item 2. Properties

Autoliv’s principal executive offices are located at Klarabergsviadukten 70, Section B7, SE-111 64, Stockholm, Sweden. Autoliv’s various
businesses operate in a number of production facilities and offices. Autoliv believes that its properties are adequately maintained and
suitable for their intended use and that the Company’s production facilities have adequate capacity for the Company’s current and
foreseeable needs. All of Autoliv’s production facilities and offices are owned or leased by operating (either subsidiary or joint venture)
companies.

AUTOLIV MANUFACTURING FACILITIES

Location of Facility

Items produced at Facility

Owned/Leased

Country/Company
Brazil
Autoliv do Brasil Ltda.

Canada
Autoliv Canada, Inc.
VOA Canada, Inc.

China
Autoliv (Baoding) Vehicle Safety Systems Co., Ltd
Autoliv (Changchun) Vehicle Safety Systems Co., Ltd.
Autoliv (China) Steering Wheel Co., Ltd.
Autoliv (Guangzhou) Vehicle Safety Systems Co., Ltd.
Autoliv (Nanjing) Vehicle Safety Systems Co., Ltd.
Autoliv Shenda (Nanjing) Automotive Components Co., Ltd.
Autoliv (Shanghai) Vehicle Safety Systems Co., Ltd.
Autoliv Shenda (Tai Cang) Automotive Safety Systems Co.,
Ltd.
Autoliv (Jiangsu) Automotive Safety Components Co., Ltd.

Autoliv (China) Automotive Safety Systems Co., Ltd.
Mei-An Autoliv Co., Ltd.

Estonia
AS Norma

France
Autoliv France SNC
Autoliv Isodelta SAS
Livbag SAS
N.C.S. Pyrotechnie et Technologies SAS

Hungary
Autoliv Kft.

India
Autoliv India Private Ltd.

Indonesia
P.T. Autoliv Indonesia

Japan
Autoliv Japan Ltd.

Taubaté

Nova Goiana

Seatbelts, airbags, steering
wheels and seatbelt webbing
Seatbelts and steering wheels

Tilbury
Collingwood

Airbag cushions
Seatbelt webbing

Baoding
Changchun
Fengxian/Shanghai
Guangzhou
Nanjing
Nanjing
Shanghai
Shanghai

Airbags
Airbags and seatbelts
Steering wheels
Airbags and seatbelts
Seatbelts
Seatbelt webbing
Airbags
Seatbelt webbing

Jintan

Nantong
Taipei

Propellant, Airbag initiators and
Airbag inflators
Airbag cushions
Seatbelts and airbags

Owned

Leased

Owned
Owned

Leased
Owned
Owned
Owned
Owned
Owned
Owned
Owned

Owned

Owned
Leased

Tallinn

Seatbelts and belt components

Owned

Gournay-en-Bray
Chiré-en-Montreuil
Pont-de-Buis
Survilliers

Airbags
Steering wheels and covers
Airbag inflators
Airbag initiators and seatbelt
micro gas generators

Sopronkövesd

Seatbelts

Seatbelts, airbags
Seatbelt webbing and Airbag
Cushions
Airbags and steering wheels
Airbag and Airbag cushions
Airbag inflators

Seatbelts, airbags and steering
wheels

Airbags and steering wheels
Airbags
Airbag inflators
Airbags, seatbelts and steering
wheels

Bangalore
Mysore

Badli
Pune
Chennai

Jakarta

Chubu
Hiroshima
Taketoyo
Tsukuba

Owned
Owned
Owned
Owned

Owned

Owned
Owned

Leased
Leased
Owned

Owned

Owned
Owned
Leased
Owned

Malaysia
Autoliv-Hirotako Sdn Bhd

Mexico
Autoliv Mexico East S.A. de C.V.
Autoliv Mexico S.A. de C.V.
Autoliv Safety Technology de Mexico S.A. de C.V.
Autoliv Steering Wheels Mexico S. de R.L. de C.V.
Autoliv Steering Wheels Mexico S. de R.L. de C.V.
Autoliv Mexico S.A. de C.V.

Philippines
Autoliv Cebu Safety Manufacturing, Inc.

Poland
Autoliv Poland Sp. zo.o.

Romania
Autoliv Romania S.R.L.

Kuala Lumpur

Seatbelts, airbags and steering
wheels

Owned

Matamoros
Lerma
Tijuana
Querétaro
Querétaro
Aguascalientes

Steering wheels
Seatbelts
Seatbelts
Airbag cushions
Airbags
Steering wheels

Cebu

Steering wheels

Olawa
Jelcz-Laskowice

Airbag cushions
Airbags

Brasov

Lugoj
Resita
Sfantu Georghe
Onesti
Rovinari

Seatbelts, seatbelt webbing,
seatbelt components, airbag
inflators, steering wheels
Airbag cushions
Airbag cushions
Steering wheels
Steering wheels
Seatbelts

South Africa
Autoliv Southern Africa (Pty) Ltd.

Krügersdorp

Seatbelts and airbags

South Korea
Autoliv Corporation

Spain
Autoliv BKI S.A.U.

Sweden
Autoliv Sverige AB

Thailand
Autoliv Thailand Ltd.

Tunisia
STE ASW3 Nadour

STE ASW3 Nadour

Hwasung

Airbags

Valencia

Airbags

Vårgårda

Airbag inflators

Chonburi

El Fahs

Nadhour

Seatbelts, Airbags and Steering
wheels
Seatbelt components

Steering wheels

Turkey
Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve
Ticaret A.S.
Autoliv Cankor Otomotiv Emniyet Sistemleri Sanayi Ve
Ticaret A.S. Gebze-Subesi

Gebze-Kocaeli

Seatbelts

Gebze-Kocaeli

Airbags, Steering wheels and
Seatbelt components

United Kingdom
Airbags International Ltd

USA
Autoliv ASP, Inc.

Congleton

Airbag cushions

Brigham City
Ogden
Ogden
Promontory
Tremonton

Airbag inflators
Airbags
Airbags and service parts
Propellant
Airbag initiators and seatbelt
micro gas generators

Owned
Owned
Leased
Leased
Leased
Owned

Owned

Owned
Owned

Owned

Owned
Owned
Owned
Leased
Owned

Owned

Leased

Owned &
Leased
Owned

Owned

Leased

Owned

Owned
Owned
Leased
Owned
Owned

AUTOLIV TECHNICAL CENTERS AND CRASH TEST TRACKS

Country/Company
China
Autoliv (Shanghai) Vehicle Safety System Technical
Center Co., Ltd.

Location

Shanghai

Product(s) supported

Inflators and pyrotechnics customer
applications, airbags, steering wheels and
seatbelts customer applications and platform
development with full-scale test laboratory

France
Autoliv France SNC

Livbag SAS
Autoliv Isodelta SAS

Germany
Autoliv B.V. & Co. KG

India
Autoliv India Private Ltd.

Japan
Autoliv Japan Ltd.

Poland
Autoliv Poland Sp. zo.o.

Romania
Autoliv Romania S.R.L.

South Korea
Autoliv Corporation

Sweden
Autoliv Development AB
Autoliv Sverige AB

USA
Autoliv ASP, Inc.

Gournay-en-Bray

Pont-de-Buis
Chiré-de-Montreuil

Airbags and seatbelts customer applications
and platform development with full-scale test
laboratory
Inflator and pyrotechnic development
Steering wheels development and customer
applications

Dachau

Elmshorn

Customer applications and platform
development, airbags with full-scale test
laboratory
Seatbelts with full-scale test laboratory

Bangalore

Airbags and seatbelts with sled testing

Tsukuba

Jelcz

Brasov

Seoul

Vårgårda
Vårgårda

Airbags and seatbelts customer applications
and platform development with sled test
laboratory

Airbags applications and platform development

Seatbelts with sled test laboratory

Airbags and seatbelts customer applications
and platform development with sled test
laboratory

Research center
Airbags customer applications, inflator and
special safety products development with full-
scale test laboratory

Auburn Hills

Ogden

Airbags, steering wheels, and seatbelts
customer applications and platform
development with sled test laboratory
Airbags, inflators and pyrotechnics customer
applications and platform development

Item 3. Legal Proceedings

In the ordinary course of its business, the Company is subject to legal proceedings brought by or against the Company and its subsidiaries.

See Note 17, Contingent Liabilities, to the Consolidated Financial Statements in this Annual Report for a summary of certain ongoing
legal proceedings. Such information is incorporated into this Part I, Item 3 – “Legal Proceedings” by reference.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities

Shareholder information

The primary exchange market for Autoliv’s securities is the New York Stock Exchange (NYSE) where Autoliv’s common stock trades
under the symbol “ALV”. Autoliv’s Swedish Depositary Receipts (SDRs) are traded on NASDAQ Stockholm’s list for large market cap
companies under the symbol “ALIV SDB”. Options in SDRs trade on Nasdaq Stockholm under the name “Autoliv SDB”. Options in Autoliv
shares are traded on NASDAQ OMX PHLX and on NYSE Amex Options under the symbol “ALV”.

Stock Performance Graph
The graph and table below show the cumulative total shareholder return for our common stock since December 31, 2018. The graph
compares our performance to that of the Standard & Poor’s 500 Stock Index (S&P 500) and the Dow Jones US Auto Parts Index.

The comparison assumes $100 was invested at the closing price of our common stock on the NYSE on December 31, 2018. Each of the
returns shown assumes that all dividends paid were reinvested.

(USD)
Autoliv, Inc.
SP500TR
Dow Jones US Auto Parts Index

12-31-2018

12-31-2019

12-31-2020

12-31-2021

12-31-2022

100.00 $
100.00
100.00

124.38 $
131.49
125.27

136.81 $
155.68
145.34

156.65 $
200.37
174.14

119.99 $
164.08
126.42

12-31-2023
177.63
207.21
124.70

Number of shares

As of December 31, 2023, the number of shares outstanding, net of treasury shares, was 82.6 million, compared to 86.2 million as of
December 31, 2022. Approximately 3.7 million shares were retired during 2023.

During 2023, the weighted average number of shares outstanding (excluding dilution and treasury shares) decreased to 85.0 million from
87.1 million in 2022. Assuming dilution, the weighted average number of shares outstanding for the full year 2023 decreased to 85.2
million from 87.2 million in 2022.

Stock options (if exercised) and granted Restricted Stock Units (RSUs) and Performance Shares (PSs) could increase the number of
shares outstanding as of December 31, 2023 by 0.3 million shares in the aggregate. Combined, this would add 0.4% to the number of
shares outstanding as of December 31, 2023.

On December 31, 2023, the Company had 4.9 million treasury shares. The Company intends to retire treasury shares following
repurchases on a regular basis.

Shareholders

Of the shares held by institutional investors, Autoliv estimates that around 33% were held by Sweden-based shareholders, around 43%
by US-based shareholders and around 10% by UK-based shareholders.

Dividends

Autoliv has a history of paying quarterly cash dividends. Declared dividends are announced in press releases and published on Autoliv’s
corporate website. The Board of Directors revisits dividends on a quarterly basis. There can be no assurance that the Board of Directors
will declare dividends in the future. See Autoliv’s corporate website for additional details regarding historical dividends.

Stock incentive plan

Autoliv employees participate in the Autoliv, Inc. 1997 Stock Incentive Plan, as amended (the “Stock Incentive Plan”) and receive Autoliv
stock-based awards from time to time. Additional information regarding the securities authorized for issuance under the Stock Incentive
Plan is included in Item 12 of this Annual Report.

Autoliv has adopted a Stock Ownership Policy for Executives requiring the Company’s Chief Executive Officer (CEO) to accumulate and
hold the number of Autoliv shares having a value of twice his annual base salary. For other executives, the minimum requirement is, over
time, a holding equal to each executive’s annual base salary.

Stock repurchase program

On November 16, 2021, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes
the Company to repurchase up to $1.5 billion or up to 17 million shares, whichever comes first, between January 2022 and the end of
2024.

The table in Exhibit 26 provides information with respect to total common stock repurchases made by the Company during the three
months period ended December 31, 2023 on NYSE.

Period

October 1-31, 2023
November 1-30, 2023
December 1-31, 2023

New York Stock Exchange (NYSE)

Total Number of
Shares Purchased
(1)

Average Price
Paid per Share
(USD) (2)

258,925
859,965
393,043

$
$
$

94.07
99.14
102.76

Total Number of Shares
Purchased as Part of
Publicly Announced Plans
or Programs (3)

Aggregate Maximum Number
of Shares that Yet May Be
Purchased Under the Plans or
Programs (3)

3,858,816
4,718,781
5,111,824

13,141,184
12,281,219
11,888,176

(1) The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities,
through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. For accounting purposes, shares
repurchased under our stock repurchase programs are recorded based upon the settlement date of the applicable trade.

(2) The average price paid per share in U.S. dollars exclude brokerage commissions and other costs of execution.

(3) On November 16, 2021, the Company announced that its Board of Directors approved a new stock repurchase program that authorizes the
Company to repurchase up to $1.5 billion or up to 17 million common shares, whichever comes first, between January 2022 and the end of 2024.

Item 6. [RESERVED]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

IMPORTANT TRENDS

The discussions and analysis in this section are focused on the Company’s results of operations for the year ended December 31, 2023
compared to the year ended December 31, 2022. Discussions of the Company's results of operations for the year ended December 31,
2022 compared to the year ended December 31, 2021 can be found in Part II, Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations in the Company's Form 10-K for the year ended December 31, 2022, which was filed with the United
States Securities and Exchange Commission on February 22, 2022.

Autoliv, Inc. (the “Company”) provides automotive safety systems to the automotive industry with a broad range of product offerings,
primarily passive safety systems. In the year ended December 31, 2023, a number of factors influenced the Company’s results of
operations, including:

•

Industry supply chain disruptions caused high customer call-off volatility

Cost inflation, especially for labor, logistics and utilities, and corresponding inflation compensation negotiations with
customers

Continued growth above LVP driven by price, higher content per vehicle, and execution of strong order book

Order intake adding to an already strong customer base

Strategic and structural initiatives

Continued focus on operational excellence and quality

2023

2022

YEARS ENDED DEC. 31 (DOLLARS IN MILLIONS, EXCEPT EPS)
7.7 %
Global light vehicle production (in thousands)
7.4 %
Consolidated net sales
(2.3) %
Operating income
(0.7) pp
Operating margin, %
(2.7) %
Net income attributable to controlling interest
Earnings per share2)
(2.2) %
(5.4) %
Net cash provided by operating activities
Return on capital employed, %
(0.8) pp
1) Reported figures impacted by costs for capacity alignments and antitrust related matters. See section Items affecting comparability and Note 11 to the
Consolidated Financial Statements included herein.
2) Assuming dilution and net of treasury shares.

Reported1)
79,818
8,842
659
7.5
423
4.85
713
17.5

Reported1)
87,323
10,475
690
6.6
488
5.72
982
17.7

9.4 %
18 % $
4.7 %
(0.9) pp
15 %
18 %
38 %
0.2 pp

change

SUPPLY CHAIN

2023 saw global LVP growth year-over-year by around 9.4% (according to S&P Global January 2024). We saw an improvement in call-
off volatility in 2023 as supply chains were less strained compared to a year earlier. However, customer call-off volatility remained higher
than pre-pandemic levels, and low customer demand visibility and changes to customer call-offs with short notice still had a negative
impact on our production efficiency and profitability. The unfolding situation in the Red Sea did not have any measurable impact on our
operations in 2023. It is too early to estimate what impact this situation will have on our operations, directly or through our customers,
going forward.

INFLATION

Cost pressures from labor, logistics, utilities, and other items had a negative impact on our profitability in 2023. Most of the inflationary
cost pressure was offset by customer price and other compensations. Changes in raw material costs had a negligible impact on our
profitability in 2023. The Company expects the raw material price changes in 2024 to be largely reflected in price changes in our products,
albeit with delays of several months. We also expect continued cost pressure from inflation relating mainly to labor, but also to a lesser
extent to utilities and other items, especially in Europe and the Americas. The Company continues to execute on productivity and cost
reduction activities to offset these cost pressures, and we continue to seek inflation compensation from our customers. The Company
believes price adjustments will gradually offset the cost inflation, with limited positive effects in the first quarter and gradual improvement
as the year progresses.

GROWTH IMPACTED BY LIGHT VEHICLE PRODUCTION, SAFETY CONTENT PER VEHICLE, AND STRONG ORDER BOOK

The most important driver for Autoliv’s sales is the LVP. During the past ten years, LVP has shown year-over-year growth with the
exception of the years 2018-2020. Global LVP grew by 9.4% in 2023 - much above the 3.5% expected by S&P Global in the beginning
of the year. For Europe, the LVP growth of 5.3% that was expected in the beginning of the year became an increase of 13%, as previous
years' production limitations eased and some inventory restocking could take place. LVP in China also grew significantly more than what
was expected in the beginning of the year, driven mainly by a multitude of successful launches of new models by domestic Chinese
OEMs.
Light Vehicle Production1)

2023

(000´)
units

% global

2022

(000´)
units

% global

Change 2023 vs 2022
(000´)
units

Americas

Europe
Asia

North America
South America

China
Japan
South Korea
India
Other Asia

Other
Global Total
1) Source: S&P Global, January 2024

17,248
14,351
2,897
17,667
50,148
27,844
8,422
4,166
5,414
4,302
2,260
87,323

20%
16%
3%
20%
57%
32%
10%
5%
6%
5%
3%

15,861
13,064
2,797
15,698
46,049
25,513
7,263
3,695
5,105
4,473
2,210
79,818

20%
16%
4%
20%
58%
32%
9%
5%
6%
6%
3%

1,387
1,287
100
1,969
4,099
2,331
1,159
471
309
(171)
50
7,505

9%
10%
4%
13%
9%
9%
16%
13%
6%
(4)%
2%
9%

Chinese LVP, the world’s largest automotive market, increased by 2.3 million units or by 9.1% from 2022 to 2023. In Europe, an important
market for automotive safety systems, LVP increased by 13% or by approximately 2.0 million light vehicles during the same period. In
North America, LVP increased by 1.4 million units, or by 8.7% compared to 2022.

During 2023, both the Americas' and Europe’s share of global LVP remained at around 20% each. China’s share was also unchanged,
at 32%, while Japan’s share increased to 10% from 9% and India's share remained at 6%.

Despite macro-economic uncertainties in parts of the world, we expect light vehicle markets to grow both in the medium and long term,
driven by pent-up end user demand, rebuilding of new vehicle inventories and a growing GDP/capita.

Due to more stringent crash test rating requirements, by institutes such as Euro NCAP, increased government regulations and increasing
consumer demand for more safety in emerging markets, the Company sees vehicle manufacturers installing more airbags and more
advanced seatbelt systems in vehicles. This generally takes place when new models are introduced. The safety standards of vehicles
are increasing in China, India, and other growth markets such as Brazil, partially due to new government regulations and crash test rating
programs. For example, the Indian government has decided on a new traffic regulation that mandates more rigid crash test standards for
light vehicles. This is supporting higher installation rates of airbags and more advanced seatbelts, impacting CPV positively. Commercial
customer recoveries compensating for increased raw material costs also added to CPV in 2023, partly offset by negative effects from
continued productivity related pricing pressure from vehicle manufacturers. The overall increase in global CPV in 2023 was around 3%
which together with the execution of the Company's strong order book, supported an organic growth (see section Non-U.S. GAAP
Performance Measures) of around 9 percentage points above growth in global LVP. The average global safety CPV (airbags, pedestrian
safety, seatbelts, and steering wheels) amounted to around $261 million in 2023.

The Company believes that the more stringent crash rating requirements and consumer demand for more safety should enable the global
automotive safety market to grow around 1-2 percentage points per year faster than the global LVP in the medium and long term. This
excludes the impact from cost inflation related price increases.

The past years’ high order intake share has resulted in the Company's sales development outperforming the underlying LVP significantly.
In the past 5 years, the Company's organic sales development outpaced global LVP between 5 and 9 percentage points every year .
During 2023, growth was positively affected through recent launches of several new models, including Subaru Impreza/Crosstrek,
Mercedes E-Class, BMW 5 Series, and several Zeekr models.

The Company estimates that the sales to Electric Vehicles (not including PHEVs) amounted to around $1.4 billion in 2023.

WELL BALANCED GLOBAL FOOTPRINT

The Company's regional sales mix continues to be balanced with 27% of sales in Europe, 34% in the Americas and 39% in Asia in 2023,
compared to 27%, 33% and 40%, respectively, in 2022. In Asia, the Company's sales in the important Chinese market was 20% of total
sales in 2023 compared to 21% in 2022.

The balanced regional sales mix has been achieved through timely investments and strengthening of technical and support capabilities
in growth markets.

ORDER INTAKE ADDING TO AN ALREADY STRONG CUSTOMER BASE

The Company's order intake in 2023, with high win rates for new EV platforms with both new and traditional OEMs as well as for ICE
platforms, added to the Company's already strong base, which includes supplying products to more than 1,300 vehicle models and around
100 car brands. The order intake in 2023 supports the Company's ability to defend its around 45% sales market share in the near and
medium term. The Company estimates that its market share increased from around 43% in 2022 to around 45% in 2023. The lead time
from order intake to start of production is typically 1-3 years. During this period the products are engineered into the vehicle to provide
the expected protection for occupants in case of a crash and to meet legal and regulatory requirements, as well as other requirements
from the vehicle manufacturer. This investment in new products is the main factor of RD&E expenses, net. Additionally, the Company
has to build up production capacity, in the form of new lines, to meet future product launches.

The Company's order intake share for 2023 continued on a high level. The estimated life-time sales for all orders booked in 2023 is
around $11.8 billion, an increase compared to around $10.7 billion in 2022. The 2023 order intake included high win rates with relatively
new automakers and for new EV platforms as well as ICE platforms with traditional OEMs. The Company estimates that around 45% of
total order intake in 2023 was for EV platforms, while order intake from new automakers accounted for around 25% of all order intake. In
China, the Company estimates that around 50% of order intake in 2023 was with domestic Chinese OEMs, which supports our expectation
that domestic OEMS in China will account for close to 40% of the Company's sales in China in 2024. This is an increase from 28% in
2023. New order intake is defined as the sales value of awards for future business, received within that year. The life time value is
calculated using detailed assumptions of price and volumes over the years of production and the exchange rates prevailing at the time of
receiving the order.

STRATEGIC INITIATIVES AND STRUCTURAL IMPROVEMENTS

2023 light vehicle market was impacted by a distressed global automotive supply chain with continued high customer call-off volatility and
inflationary pressure on costs for labor, logistics and utilities. In response, Autoliv management continued to implement strict cost control
measures, as well as initiating significant structural cost reduction measures. In June 2023, the Company communicated a cost reduction
framework which included the intent to reduce our indirect headcount by up to 2,000, and to improve direct labor productivity equivalent
to up to a 6,000 direct workforce reduction. More details on these initiatives were communicated on July 13, 2023, October 5, 2023, and
on October 30, 2023. Based on the intended indirect workforce reductions in these three announcements, the Company estimates that
the annual cost reductions will amount to around $130 million in total annual savings when fully implemented, with around $50 million in
savings in 2024, which is expected to increase to around $100 million in 2025.

We do not expect to announce further major reduction initiative details within this framework. Further reduction of global headcount as
part of the structural initiative is expected to be through minor actions and natural attrition with limited accruals. At the end of 2023, around
75% of the planned indirect reductions were detailed and announced. We also saw positive results on direct labor efficiency towards the
end of 2023.

The provision, net of reversals, for restructuring activities in 2023 amounted to $210 million compared to $13 million in 2022. As of
December 31, 2023, the Company had $213 million reserved in its balance sheet related to restructuring compared to $32 million last
year. For more information, see Note 11, Restructuring, to the Consolidated Financial Statements included herein.

In addition to the structural improvements outlined above, the Company continues to implement the strategic initiatives to improve the
efficiency of its value chain from end to end, not least through the Autoliv Production System and increased digitalization and automation.
With several hundred projects in implementation or undergoing development, the Company has a high pace in the planning and
implementation of the strategic initiatives and structural improvements. These initiatives are key drivers to the Company's targets and
building the foundation to continue to create shareholder value.

IMPROVED EFFICIENCIES THROUGH OPERATIONAL EXCELLENCE

Pricing pressure is an inherent part of the automotive supplier business. Price reductions are generally higher on newer products with
strong volume growth compared to older products, where both the possibilities to re-design the product to reduce costs and market growth
are less. Price reductions can also depend on the business cycle and raw material price development. For the five-year period 2017-
2021, the Company estimates the average reduction of product prices on existing programs to have been in the range of around 2-4%
annually. In 2022, the pricing environment changed to some extent due to high raw material price and cost increases, which led to
renegotiations with customers regarding commercial terms. These discussions resulted in a net positive price development, gradually
implemented throughout the year. This was also the case in 2023, and is expected for 2024 as well.

A key strategy for Autoliv to be and to remain cost competitive is to reduce labor costs, through continuously implementing productivity
improvement programs, optimizing the Company's production footprint, and instituting restructuring and capacity alignment activities as
well as other actions to address the Company's cost structure.

The Company's productivity improvement target is to achieve at least 5% savings per year. To meet this target, Autoliv has developed a
set of strategies to reduce costs in manufacturing:

•

Autoliv production system (APS) is based on lean manufacturing methodology which aims to continuously increase output
with less resources. APS provides the target conditions and tools to achieve the delivery of goods and services at the right
time, in the right amount, at the required quality and at the lowest cost possible to all the Company's customers.

Autoliv One Product One Process (1P1P) strategy focuses on product and process standardization and reducing cost and
complexity. The 1P1P strategy, combined with initiatives to reduce costs for components from external suppliers, ensures
that the Company continuously optimize its supply base footprint, consolidate purchase volumes to fewer suppliers, improve
productivity in the Company's supply chain, standardize components and redesign its products.

Strategic Initiatives, including Automation, Digitalization, Supply Chain Management Effectiveness and RD&E Effectiveness.

The Company's historic experience is that the continuous improvement strategies have enabled productivity improvement at or above
its target of 5%. However, the Company has not achieved its 5% productivity target since the COVID-19 pandemic in 2020, due to the
related decline in LVP in 2020 and the high volatility in customer call-offs in 2021, 2022 and 2023 driven by the industry wide supply chain
instability, especially for semiconductors.

The Company foresees opportunities for further productivity on organic sales growth and increased call-off stability when global supply
chains have stabilized at pre-pandemic levels, but also from increasing use of automation in its assembly for lean manufacturing
processes. Additionally, automated cells typically perform the manufacturing process with reduced variability. This results in greater
control and consistency of product quality.

FOCUS ON QUALITY

The number of vehicle recalls in the automotive industry continues on a relatively high level. The Company expects overall recall numbers
to remain high for years to come and, although the Company strives for the highest quality in its processes, it cannot be ruled out that the
Company may also be adversely impacted by a future recall.

Quality has been and always will be the Company's number one priority, and the Company continues to sharpen its focus in this area.
The Company now holds a global market share in passive safety of around 45%, while the Company has been involved in around 2% of
recalls in the industry in the past ten years. This indicates that the Company is delivering on its quality strategy. For more information see
product warranty and recalls in Note 12, Product Related Liabilities, to the Consolidated Financial Statements in this Annual Report.

CHANGES IN COMPETITIVE LANDSCAPE

During the past eight years, Autoliv experienced significant changes in its competitive landscape. In 2015, TRW, a key competitor in
passive safety, was acquired by German group ZF Friedrichshafen. In 2016, Key Safety Systems (“KSS”) was acquired by Ningbo Joyson
Electronic Corp. Beginning in 2014, Takata, Autoliv's largest competitor at the time, experienced severe issues and recalls related to
malfunctioning airbag inflators, leading the company to file for bankruptcy protection in the U.S. and Japan. In 2018, KSS substantially
acquired all of Takata's global assets and operations and combined it with KSS, forming the new company Joyson Safety Systems (JSS).

CAPITAL STRUCTURE

The Company’s net debt stood at $1,367 million on December 31, 2023. This was an increase of $184 million compared to December
31, 2022. Total interest-bearing debt at December 31, 2023 amounted to $1,862 million, an increase of $96 million compared to December
31, 2022.

Cash flow from operations was $982 million in 2023 and $713 million in 2022. Capital expenditures, net amounted to $569 million in 2023
and $485 million in 2022. During 2023 and 2022 the Company paid dividends of $225 million and $224 million, respectively.

It is the Company’s policy to maintain a financial leverage commensurate with a “strong investment grade credit rating”. The long-term
target is to have a leverage ratio (see section Non-U.S. GAAP Performance Measures) of around 1.0x and to be within the range of 0.5x
to 1.5x. At December 31, 2023, the current leverage ratio is 1.2x. The Company monitors its capital structure and the financial markets
closely and intends to maintain a high level of financial flexibility while being shareholder friendly.

As part of the adjustment of the capital structure, the Company historically has repurchased shares of its common stock. During 2023
and 2022, the Company repurchased and retired 3.67 million and 1.44 million shares, respectively, under the stock repurchase program
authorized by the Board of Directors in November 2021. This stock repurchase program authorizes the Company to repurchase up to
$1.5 billion or up to 17 million shares (whichever comes first) between January 2022 and the end of 2024. In addition, in 2022, the
Company retired 10 million shares of common stock that has been held in treasury. These shares were acquired between 2008 and 2014
under the prior stock repurchase program. After the retirement, the Company continues to hold around 4.9 million shares of common
stock in treasury.

OUTLOOK FOR 2024

The Company's guidance for 2024 is mainly based on our customer call-offs, a full year 2024 global LVP decline of around 1%, our
achievement of our targeted cost compensation effects and a reduction in customer call-off volatility.

Financial measure
Organic sales growth
Foreign currency impact on net sales
Adjusted operating margin 1)
Tax rate 2)
Operating cash flow 3)
Capital expenditures, net % of sales
1) Excluding effects from capacity alignments, antitrust related matters and other discrete items.
2) Excluding unusual tax items.
3) Excluding unusual items.

Full year indication
Around 5%
Around 0%
Around 10.5%
Around 28%
Around $1.2 billion
Around 5.5%

The forward-looking non-U.S. GAAP financial measures above 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
efforts and Autoliv is unable to determine the probable significance of the unavailable information.

SIGNIFICANT LEGAL MATTERS

See Item 3. Legal Proceedings and Note 17 Contingent Liabilities to the Consolidated Financial Statements in this Annual Report.

RESULTS OF OPERATIONS

Consolidated net sales in 2023 increased by 18.5% compared to 2022. Excluding positive currency translation effects of 0.3%, the organic
sales increased (Non-U.S. GAAP measure, see reconciliation table below) by 18.2%.

Sales by Product

Airbags, Steering Wheels and
Other2)
Seatbelt products and Other2)
Total
1) Effects from currency translations.
2) Including Corporate and Other sales.

Airbags, Steering Wheels and Other

Years ended December 31,

Components of change in net sales

2023

2022

Reported
change

Currency
effects 1)

Organic 3)

7,055
3,420
10,475

5,807
3,035
8,842

21 %
13 %
18 %

0.1 %
0.7 %
0.3 %

21 %
12 %
18 %

Sales for all major product categories increased organically (Non-U.S. GAAP measure, see reconciliation table above) during the year.
The largest contributor to the increase was steering wheels and inflatable curtains, followed by side airbags and
passenger airbags.

Seatbelt Products and Other

Sales for seatbelt products and other increased organically (Non-U.S. GAAP measure, see reconciliation table above) in
all major regions during the year. The main contributor to the increase was Europe, followed by Asia excluding China, the
Americas and China.

Sales by Region

Years ended December 31,

Components of change in net sales

2023

2022

Reported
change

Currency
effects 1)

Organic 3)

Asia
Whereof:

China
Asia excl. China

Americas
Europe
Total
1) Effects from currency translations.

4,072
2,105
1,968
3,526
2,877
10,475

3,521
1,883
1,638
2,967
2,355
8,842

16 %
12 %
20 %
19 %
22 %
18 %

(4.3)%
(4.8)%
(3.8)%
3.5 %
3.1 %
0.3 %

20 %
17 %
24 %
15 %
19 %
18 %

Autoliv’s global sales increased organically (Non-U.S. GAAP measure, see reconciliation table above) by 18.2% compared to 2022, which
was around 9 percentage points better than global LVP (according to S&P Global, January 2024).

Sales increased organically in all regions. The around 9pp outperformance was driven by new product launches and price increases.
Autoliv outperformed LVP by around 15pp in Asia excluding China, by around 8pp in China, by around 7pp in Europe and by around 7pp
in the Americas.

2023 Organic Growth1)

Autoliv

Main growth drivers

Main decline drivers

Americas
15%
Honda,
Nissan,
Mercedes
Ford, BMW,
Renault

Europe
19%

China
17%

Asia excl. China
24%

Global
18%

Stellantis, VW,
Mercedes

Honda, Great
Wall, Mercedes

Toyota, Hyundai,
Subaru

Honda, Toyota,
Mercedes

Mitsubishi

Nissan, Renault,
BMW

Renault

Ford

Condensed Statement of Income

(Dollars in millions, except per share data)
Net Sales
Gross profit
% of sales
S, G&A
% of sales
R, D&E, net
% of sales
Amortization of Intangibles
Other income (expense), net
Operating income
% of sales
Adjusted operating income1)
% of sales
Financial and non-operating items, net
Income before taxes
Income taxes
Tax rate
Net income
Earnings per share, diluted2)
Adjusted earnings per share, diluted1,2)
1) Assuming dilution and net of treasury shares.
2) Non-U.S. GAAP Measure.

Gross Profit

Years ended December 31,
2022
2023

10,475
1,822

8,842
1,396

17.4 %
(498)
(4.8)%
(425)
(4.1)%
(2)
(207)
690
6.6 %
920
8.8 %
(77)
612
(123)
20.1%
489
5.72
8.19

15.8 %
(437)
(4.9)%
(390)
(4.4)%
(3)
93
659
7.5 %
598
6.8 %
(56)
603
(178)
29.5%
425
4.85
4.40

Change

18 %
30 %
1.6 pp
14 %
0.2 pp
8.8 %
0.4 pp
(24)%
n/a
4.7 %
(0.9)pp
54 %
2.0 pp
39 %
1.5 %
(31)%
(9.4)pp
15 %
18 %
86 %

In 2023, gross profit increased by $425 million and the gross margin increased by 1.6 pp compared to 2022. The gross profit increase
was primarily driven by price increases, volume growth and lower costs for premium freight. This was partly offset by increased
costs for personnel related to higher volumes and wage inflation as well as higher costs for energy

Operating Income

Operating income increased in 2023 by $31 million, mainly due to higher gross profit, partly offset by the changes in Other income
(expense), net and the higher costs for S,G&A and R,D&E, net.

Selling, General and Administrative (S,G&A) expenses increased in 2023 by $61 million, mainly due to increased costs for personnel
and projects. S,G&A costs in relation to sales decreased from 4.9 % to 4.8%.

Research, Development & Engineering (R,D&E) expenses, net increased in 2023 by $35 million, mainly due to higher costs for
personnel and lower engineering income. R,D&E, net, in relation to sales decreased from 4.4% to 4.1%.

Other income (expense), net decreased by $300 million in 2023 compared to the previous year, mainly due to that the prior year was
positively impacted by around an $80 million gain from the sale of a property in Japan and around $20 million from a patent
litigation settlement, partly offset by around $10 million in capacity alignment provisions for the closure of a plant in South Korea
while 2023 was negatively impacted by around $218 million in accrual for capacity alignment.

Financial and Non-operating Items, net

Financial and non-operating items, net, costs decreased by $22 million in 2023 compared to previous year, mainly due to increased
interest expense as an effect of higher debt and higher interest rates.

Income Taxes

The tax rate for 2023 was 20.1%, compared to 29.5% in 2022. Discrete tax items, net, decreased the tax rate in 2023 by 17.3pp. The
decrease is mainly related to a net deferred tax asset recognized in the fourth quarter due to the transfer of certain assets and
operations as part of restructuring activities. Discrete tax items, net decreased the tax rate in 2022 by 2.5pp.

Net Income and Earnings Per Share

Net income in 2023 increased by $64 million compared to 2022. Earnings per share, diluted increased by $0.87 compared to a year
earlier, where the main drivers was $0.35 from higher operating income and $0.63 from lower income tax, partly mitigated by $0.27 from
financial items.

The weighted average number of shares outstanding assuming dilution in 2023 was 85.2 million compared to 87.2 million in 2022.

NON-U.S. GAAP PERFORMANCE MEASURES

In this annual report, the Company sometimes refers to non-U.S. GAAP measures that the Company and securities analysts use in
measuring Autoliv’s performance.

The Company believes that these measures assist management and investors in analyzing trends in the Company’s business for the
reasons given below. Investors should not consider these non-U.S. GAAP measures as substitutes for, but rather as additions to, financial
reporting measures prepared in accordance with U.S. GAAP.

These non-U.S. GAAP measures have been identified, as applicable, in each section of this annual report with tabular presentations
provided below, reconciling them to U.S. GAAP.

It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies.

Organic Sales

The Company analyzes its sales trends and performance as changes in “organic sales growth” or “organic sales decline”, because the
Company currently generates approximately three quarters of net sales in currencies other than the reporting currency (i.e. U.S. dollars)
and currency rates have proven to be rather volatile. Organic sales present the increase or decrease in the overall U.S. dollar net sales
on a comparable basis, allowing separate discussions of the impact of acquisitions/divestitures and exchange rates.

See tabular reconciliations above, that present changes in “organic sales growth” as reconciled to the change in total U.S. GAAP net
sales.

Trade working capital

Due to the need to optimize cash generation to create value for the Company's shareholders, management focuses on operationally
derived trade working capital as defined in the table below.

The reconciling items used to derive this measure are, by contrast, managed as part of the Company's overall management of cash and
debt, but they are not part of the responsibilities of day-to-day operations management.

Reconciliation of U.S. GAAP measure to “Trade working capital” (dollars in millions)

DECEMBER 31
Receivables, net
Inventories, net
Accounts payable
Trade working capital

Net debt

2023

2022

2,198
1,012
(1,978)
1,232

1,907
969
(1,693)
1,183

As part of efficiently managing the Company’s overall cost of funds, the Company routinely enter into “debt-related derivatives” (DRD) as
part of its debt management.

Creditors and credit rating agencies use net debt adjusted for DRD in their analyses of the Company’s debt and therefore the Company
provides this non-U.S. GAAP measure. See reconciliation table below. DRD are fair value adjustments to the carrying value of the
underlying debt. Also included in the DRD is the unamortized fair value adjustment related to discontinued fair value hedges, which will
be amortized over the remaining life of the debt. By adjusting for DRD, the total financial liability of net debt is disclosed without grossing
debt up with currency or interest fair values.

Reconciliation of U.S. GAAP measure to “Net debt” (dollars in millions)

DECEMBER 31
Short-term debt
Long-term debt
Total debt
Cash and cash equivalents
Debt issuance cost/Debt-related derivatives, net
Net debt

2023

2022

538
1,324
1,862
(498)
3
1,367

711
1,054
1,766
(594)
12
1,184

Adjusted operating income, adjusted operating margin and adjusted EPS

Adjusted operating margin and adjusted EPS are non-U.S. GAAP measures the Company uses to evaluate its business, because the
Company believes it assists investors and analysts in comparing the Company's performance across reporting periods on a consistent
basis by excluding items that are non-operational or non-recurring in nature (such as costs related to capacity alignments, costs related
to antitrust matters and for EPS unusual tax items) and that the Company does not believe are indicative of its core operating performance
and underlying business trends. Adjusted operating margin and adjusted EPS, as shown in the table below, should be considered in
addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. GAAP, including
operating margin and EPS.

Items affecting comparability

(DOLLARS IN MILLIONS, EXCEPT EPS)
Operating income
Operating margin, %
Income before income taxes
Net income attributable to controlling interest
Capital employed
Return on capital employed, % 2)
Return on total equity, % 3)
Earnings per share, diluted 4

2023

Adjust-
ments1)
230
$
2.2%
230
210
210
5.3%
7.2%

2.46

Reported
690
$
6.6%
612
488
3,937

17.7%
19.0%
5.72

Non-
U.S.
GAAP
920
$
8.8%
842
697
4,147

23.1%
26.2%

$ 8.19

Reported
659
$
7.5%
603
423
3,810

17.5%
16.3%
4.85

2022

Adjust-
ments1)
(61)
$
(0.7)%
(61)
(39)
(39)
(1.5)%
(1.3)%

$ (0.45)

Non-
U.S.
GAAP

598
6.8%
542
384
3,771

16.0%
15.0%
4.40

1) Represents costs for capacity alignments, antitrust related matters and the Andrews litigation settlement. See table below for a disaggregation of these
costs.
2) Operating income and income from equity method investments, relative to average capital employed.
3) Net Income relative to average total equity for the year.
4) Assuming dilution and net of treasury shares.

Adjustment
Per share
$

(0.70)
—
—
(0.70)
0.25
(0.45)

87.2

Items included in Non-U.S. GAAP adjustments

(DOLLARS IN MILLIONS, EXCEPT EPS)
Capacity alignment
The Andrews litigation settlement
Antitrust related matters
Total adjustments to Operating income
Tax on Non-U.S. GAAP adjustments1)
Total adjustments to Net Income

Weighted average number of shares outstanding - diluted2)
Adjustment Return on capital employed
Adjustment Return on capital employed, %

Adjustment Return on total equity
Adjustment Return on total equity, %

2023

2022

Adjustment
Millions

Adjustment
Per share

Adjustment
Millions

218
8
4
230
(20)
210

230
5.3 %

210
7.2 %

2.56
0.09
0.05
2.70
(0.24)
2.46

85.2

(61)
—
—
(61)
22
(39)

(61)
(1.5)%

(39)
(1.3)%

1) The tax is calculated based on the tax laws in the respective jurisdiction(s) of the adjustment(s).
2) Annualized average number of outstanding shares.

LIQUIDITY, CAPITAL RESOURCES, AND FINANCIAL POSITION

(DOLLARS IN MILLIONS)
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

NET CASH PROVIDED BY OPERATING ACTIVITIES

Years ended December 31
2022
2023

982
(569)
(490)
(20)
(96)
594
498

713
(485)
(531)
(73)
(375)
969
594

Cash flow from operations, together with available financial resources and credit facilities, are expected to be sufficient to fund the
Company’s anticipated working capital requirements, capital expenditures and future dividend payments.

Net cash provided by operating activities was $982 million in 2023 compared to $713 million in 2022. The increase of $269 million was
mainly due to more positive working capital effects.

At December 31, 2023, trade working capital (see section Non-U.S. GAAP Performance Measures above) amounted to $1,232 million
corresponding to 11% of net sales compared to $1,183 million and 13% at December 31, 2022.

Receivables outstanding in relation to sales (see Glossary and Definitions for definition) were 20% at December 31, 2023, compared to
20% at December 31, 2022. Factoring agreements did not have any material impact on receivables outstanding for 2023 or 2022.

Inventory outstanding in relation to sales (see Glossary and Definitions for definition) was 9% at December 31, 2023, compared to 10%
at December 31, 2022.

Payables outstanding in relation to sales (see Glossary and Definitions for definition) were 18% at December 31, 2023 compared to 18%
at December 31, 2022.

NET CASH USED IN INVESTING ACTIVITIES

In 2023 and 2022, net cash used in investing activities amounted to $569 million and $485 million, respectively. The Company's investing
activities primarily consist of investments in property, plant and equipment. Net cash generated by operating activities continued to
sufficiently cover capital expenditures for property, plant and equipment.

The net increase of $84 million compared to previous year was mainly due to the impact on the prior year by $95 million in proceeds from
the sale of property in Japan. In relation to net sales, capital expenditures, net was 5.4% compared to 5.5% in previous year.

Depreciation and amortization totaled $378 million in 2023 compared to $363 million in 2022.

During the years 2023 and 2022, a majority of the Company's investments were for production capacity to support new product launches
and automation projects for improved efficiency.

NET CASH USED IN FINANCING ACTIVITIES

Net cash used in financing activities amounted to $490 million and $531 million for the years 2023 and 2022, respectively.

In 2023, the Company paid dividends of $225 million. In 2022, the Company paid dividends of $224 million.

INCOME TAXES

The Company has reserves for taxes that may become payable in future periods as a result of tax audits. At any given time, the Company
is undergoing tax audits covering multiple years in several tax jurisdictions. Ultimate outcomes are uncertain but could, in future periods,
have a significant impact on the Company’s cash flows. See discussions of income taxes under Significant Accounting Policies in this
section, Note 2, Summary of Significant Accounting Policies, and Note 5, Income Taxes, to the Consolidated Financial Statements
included herein.

PENSION ARRANGEMENTS

The Company has defined benefit pension plans covering nearly half of the U.S. employees. As of December 31, 2021, the main U.S
defined benefit plan was frozen for further benefits. Many of the Company’s non-U.S. employees are also covered by pension
arrangements.

At December 31, 2023, the Company’s net pension liability (i.e. the actual funded status) for its U.S. and non-U.S. plans was $159 million
compared to $154 million at December 31, 2022.

The plans had a total net unamortized actuarial loss before tax of $39 million recorded in Accumulated Other Comprehensive (Loss)
Income in the Consolidated Balance Sheets at December 31, 2023, compared to $44 million at December 31, 2022. The amortization of
the loss is expected to be $2 million in 2024.

Total pension expense associated with the defined benefit plans was $21 million in 2023 and $11 million in 2022, and is expected to be
$18 million in 2024. The $10 million increase in 2023 pension expense was mainly due to the higher interest cost for the non-U.S plans
in 2023 as well as 2022 was positively impacted by gains from curtailments and settlements.

The Company contributed $11 million to its defined benefit plans in 2023 and $22 million in 2022. The Company expects to contribute
$16 million to these plans in 2024 and is currently projecting a yearly funding at approximately the same level in the subsequent years.

For further information about retirement plans see Note 18, Retirement Plans, to the Consolidated Financial Statements included herein.

SHAREHOLDER RETURNS

In 2023 and 2022, the Company paid cash dividends of $225 million and $224 million in dividends, respectively.

The Company repurchased shares to an amount of $352 million and $115 million in 2023 and 2022, respectively.

EQUITY

During 2023, total equity decreased by $56 million to $2,570 million as of December 31, 2023. The change was mainly due to dividends
paid to shareholders of $226 million, share repurchases of $356 million, partly offset by $489 million from net income and positive foreign
exchange effects of $20 million.

TREASURY ACTIVITES

DEBT AND CREDIT ARRANGEMENTS

The Company's total debt as of December 31, 2023 and 2022 was $1,862 million and $1,766 million, respectively. The Company had a
net debt position (see section Non-U.S. GAAP Performance Measures) at December 31, 2023 and 2022 of $1,367 million and $1,184
million, respectively.

In February 2024, the Company issued 5.5-year notes for a total of €500 million in the Eurobond market. The notes carry a coupon of
3.625% and matures in August 2029.

In March 2023, the Company issued 5-year notes for a total of €500 million in the Eurobond market. The notes carry a coupon of 4.25%
and matures in March 2028.

In May 2022, the Company refinanced its existing revolving credit facility (RCF) of $1,100 million. The facility, syndicated among 11
banks, matures in May 2028 and has an extension option for an additional year. The Company pays a commitment fee on the undrawn
amount of 0.15%, representing 35% of the applicable margin, which is 0.425% (given the Company’s rating of “BBB” from S&P Global
Ratings). Borrowings under the facility are unsecured. At December 31, 2023, the Company’s unutilized long-term credit facilities were
$1,100 million, represented by the RCF. This facility is not subject to any financial covenants nor is any other substantial financing of
Autoliv.

In June 2020, the Company utilized its SEK 3,000 million facility with Swedish Export Credit Corporation which was signed in May 2020.
The SEK 3,000 million loan mature in 2025 carrying a floating interest rate of 3M STIBOR +1.85%.

In 2014, the Company issued and sold long-term debt securities in a U.S. Private Placement pursuant to a Note Purchase and Guaranty
Agreement dated April 23, 2014, by and among Autoliv ASP Inc., the Company and the purchasers listed therein. As of December 31,
2023, $767 million remains outstanding from the 2014 issuance.

The Company has a €3,000 million Euro Medium Term Note Program in place for being able to issue notes to be traded on the Global
Exchange Market of Euronext Dublin. At December 31, 2023, €500 million had been issued under this program.

At December 31, 2023, Autoliv’s long-term credit rating from S&P Global Ratings was BBB with stable outlook. The Company aims to
maintain a strong investment grade credit rating.

For additional information about the Company's debt and credit arrangements, see Note 13, Debt and Credit Agreements, to the
Consolidated Financial Statements included herein.

FACTORING

During 2023 and 2022, the Company sold receivables and discounted notes related to selected customers. These factoring arrangements
increase cash while reducing accounts receivable and customer risks. At December 31, 2023, the Company had received $209 million
for sold receivables without recourse and discounted notes with a discount cost of $3 million during the year, compared to $174 million
at December 31, 2022 with a discount cost of $2 million recorded in Other non-operating items, net.

NUMBER OF SHARES

At December 31, 2023, 82.6 million shares were outstanding (net of 4.9 million treasury shares), a 4.1% decrease from 86.2 million one
year earlier.

The number of shares outstanding is expected to increase by 0.3 million when all Restricted Stock Units (RSU) and Performance Shares
(PSs) vest and if all stock options (SOs) to key employees are exercised, see Note 16, Stock Incentive Plans, to the Consolidated
Financial Statements included herein.

In 2023, the Company repurchased and retired 3.67 million shares equal to $352 million. During 2022, Autoliv repurchased and retired
1.44 million shares, equal to $115 million. In 2022, the Company also retired 10 million shares of common stock that had been
repurchased under a prior stock repurchase program and since held in treasury. Under the current stock repurchase program authorized
by the Board to repurchase up to $1.5 billion, or 17 million common shares (whichever comes first), between January 2022 and the end
of 2024.

Contractual Obligations and Commitments

Contractual obligations include debt, sponsored defined benefit plans, lease and purchase obligations that are enforceable and legally
binding on the Company.

For material contractual debt obligations as of December 31, 2023, see Note 13, Debt and Credit Agreements, to the Consolidated
Financial Statements included herein.

Operating lease obligations represent the payment obligations (undiscounted cash flows) under leases classified as operating leases.
Capital lease obligations are not material. See Note 3, Leases, to the Consolidated Financial Statements included herein.

There are no unconditional purchase obligations other than short-term obligations related to inventory, services, tooling, and property,
plant and equipment purchased in the ordinary course of business. Purchase agreements with suppliers entered into in the ordinary
course of business do not generally include fixed quantities. Quantities and delivery dates are established in “call off plans” accessible
electronically for all customers and suppliers involved. Communicated “call off plans” for production material from suppliers are normally
reflected in equivalent commitments from Autoliv customers.

The Company sponsors defined benefit plans that cover a significant portion of the Company's U.S. employees and certain non-U.S.
employees. The pension plans in the U.S. are funded in conformity with the minimum funding requirements of the Pension Protection Act
of 2006. Funding for the Company's pension plans in other countries is based upon plan provisions, actuarial recommendations and/or
statutory requirements. Due to volatility associated with future changes in interest rates and plan asset returns, the Company cannot
predict with reasonable reliability the timing and amounts of future funding requirements. The Company may elect to make contributions
in excess of the minimum funding requirements for the U.S. plans in response to investment performance and changes in interest rates,
or when the Company believes that it is financially advantageous to do so and based on other capital requirements. See Note 18,
Retirement Plans, to the Consolidated Financial Statements included herein.

Risks and Risk Management

The Company is exposed to several categories of risks. They can broadly be categorized as operational risks, strategic risks and financial
risks. Some of the major risks in each category are described below. There are also other risks that could have a material effect on the
Company’s results and financial position, and the description below is not complete but should be read in conjunction with the discussion
of risks described in Item 1A above, which contains a description of the Company's material risks.

As described below, the Company has taken several mitigating actions, applied numerous strategies, adopted policies, and introduced
control and reporting systems to reduce and mitigate these risks. In addition, the Company from time to time identifies and evaluates
emerging or changing risks to the Company in order to ensure that identified risks and related risk management are updated in this fast-
moving environment.

Operational Risks

LIGHT VEHICLE PRODUCTION

Around 30% of Autoliv’s costs are fixed; therefore, short-term earnings are dependent on sales volumes and highly dependent on capacity
utilization in the Company’s plants.

Global LVP is an indicator of the Company’s sales development. Ultimately, however, sales are determined by the production levels for
the individual vehicle models for which Autoliv is a supplier (see Dependence on Customers). The Company’s sales are split over several
hundred contracts covering more than 1,300 vehicle models. This moderates the effect of changes in vehicle demand of individual
countries and regions as well as production issues. The risk of fluctuating sales has also been mitigated by Autoliv’s rapid expansion in
Asia and other growth markets, which has reduced the Company’s former high dependence on sales in Europe to a diversified mix with
Europe, the Americas and Asia each accounting for approximately 27%, 34% and 39%, respectively, of the Company's 2023 total sales.

It is the Company’s strategy to reduce the risks associated with fluctuating LVP by using temporary personnel in direct production, when
appropriate. During 2023 and 2022, the level of temporary personnel in relation to total personnel in direct production remained flat at

13%. To reduce the potential impact of unusual fluctuations in the production of vehicle models supplied by the Company such as during
the financial crisis in 2008-2009 and the COVID-19 pandemic in 2020-2021 – it is also necessary for the Company to be prepared to
quickly adapt the level of permanent employees as well as fixed cost production capacity.

PRICING PRESSURE

Pricing pressure from customers is an inherent part of the automotive components business. The historical extent of price reductions
varies from year to year and takes the form of one time give backs, reductions in direct sales prices and/or discounted reimbursements
for engineering work.

In response, Autoliv is continuously engaged in efforts to reduce costs and to provide customers added value by developing new products.
Generally, the speed by which these cost-reduction programs generate results will, to a large extent, determine the future profitability of
the Company. The various cost-reduction programs are, to a considerable extent, interrelated. This interrelationship makes it difficult to
isolate the impact of costs on any single program, therefore, the Company monitors key measures such as costs in relation to sales and
productivity.

In 2023, due to cost pressures from labor, logistics, utilities, and other items the Company engaged in extensive negotiations with its
customers regarding compensations.

COMPONENT COSTS AND RAW MATERIAL PRICES

The cost of direct materials was approximately 55% of sales in 2023.

The main raw materials being used as input material for the Company's operations are steel, textiles, plastic and non-ferrous metals.

The Company still sees effects coming from import tariffs and trade barriers across borders. These barriers are impacting the raw material
market and creating pricing and availability uncertainties. There is also volatility in the sea freight rates driven by geopolitical events.

Inflation was significant across raw materials and services in 2023. The Company took actions, including pricing discussions with
customers and suppliers, competitive sourcing and exploring alternative materials.

LEGAL

The Company is involved from time to time in regulatory, commercial, and contractual legal proceedings that may be significant, and the
Company’s business may suffer as a result of adverse outcomes of current or future legal proceedings. These claims may include, without
limitation, commercial or contractual disputes, including disputes with the Company’s suppliers and customers, intellectual property
matters, alleged violations of laws, rules or regulations, governmental investigations, personal injury claims, product liability claims,
environmental issues, tax and customs matters, and employment matters.

A substantial legal liability or adverse regulatory outcome and the substantial cost to defend the litigation or regulatory proceedings may
have an adverse effect on the Company’s business, operating results, financial condition, cash flows and reputation.

No assurances can be given that such proceedings and claims will not have a material adverse impact on the Company’s profitability and
consolidated financial position, or that reserves or insurance will mitigate such impact. See Note 17, Contingent Liabilities, to the
Consolidated Financial Statements included herein and Item 3 – Legal Proceedings.

PRODUCT WARRANTY AND RECALLS

If our products are alleged to fail to perform as expected or are defective, the Company may be exposed to various claims for damages
and compensation. Such claims may result in costs and other losses to the Company even where the relevant product is eventually found
to have functioned properly. If a product (actually or allegedly) fails to perform as expected or is defective, we may face warranty and
recall claims. If such actual or alleged failure or defect results, or is alleged to result, in bodily injury and/or property damage, we may
also face product liability and other claims. The Company may experience material warranty, recall, product or other liability claims or
losses in the future, and the Company may incur significant cost to defend against such claims. The Company may be required to
participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding product recalls and other product
liability actions relating to its suppliers. Government safety regulators also have policies and practices with respect to recalls. As suppliers
become more integrally involved in the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers
are increasingly looking to their suppliers for contribution when faced with recalls and product liability claims. In addition, with global
platforms and procedures, vehicle manufacturers are increasingly evaluating our quality performance on a global basis. Any one or more
quality, warranty or other recall issue(s), including the ones affecting few units and/or having a small financial impact, may cause a vehicle
manufacturer to implement measures which may have a severe impact on the Company’s operations, such as a temporary or prolonged
suspension of new orders or the Company’s ability to bid for new business.

In addition, over time, there is a risk that the number of vehicles affected by a failure or defect will increase significantly (as would the
Company’s costs), since our products often use global designs and are increasingly based on or utilize the same or similar parts,
components, or solutions.

Although quality has always been a central focus in the automotive industry, especially for safety products, our customers and regulators
have become increasingly attentive to quality with even less tolerance for any deviations, which has resulted in an increase in the number
of automotive recalls. This trend is likely to continue as automobile manufacturers introduce even stricter quality requirements and

regulating agencies and other authorities increase the level of scrutiny given to vehicle safety issues. A warranty recall or a product liability
claim brought against the Company in excess of the Company’s insurance may have a material adverse effect on its business and/or
financial results. Vehicle manufacturers are also increasingly requiring their external suppliers to guarantee or warrant their products and
bear the costs of repair and replacement of such products under new vehicle warranties. A vehicle manufacturer may attempt to hold the
Company responsible for some or all of the repair or replacement costs of defective products under new vehicle warranties when the
product supplied did not perform as represented. Additionally, a customer may not allow us to bid for expiring or new business until certain
remedial steps have been taken. Accordingly, the future costs of warranty claims by the Company’s customers may be material.

The Company’s warranty reserves are based upon management’s best estimates of amounts necessary to settle future and existing
claims. Management regularly evaluates the appropriateness of these reserves and adjusts them when we believe it is appropriate to do
so. However, the final amounts determined to be due could differ materially from the Company’s recorded estimates. We believe our
established reserves are adequate to cover potential warranty settlements typically seen in our business.

The Company’s strategy is to follow a stringent procedure when developing new products and technologies and to apply a proactive
“zero-defect” quality policy (see section Quality Management). In addition, the Company maintains a program of insurance, which includes
commercial insurance, self-insurance, or a combination of both approaches, for potential recall and product liability claims in amounts
and on terms that it believes are reasonable and prudent based on our prior claims experience. However, such insurance may not be
sufficient to cover every possible claim that can arise in the Company’s businesses, now or in the future, or may not always will be
available should the Company, now or in the future, wish to extend, renew, increase or otherwise adjust such insurance. In recent years,
the cost of recall and product liability insurance as well as the Company’s level of self-insurance and deductibles has increased.
Management’s decision regarding what insurance to procure is also impacted by the cost for such insurance. As a result, the Company
may face material losses in excess of the insurance coverage procured. A substantial recall or liability in excess of coverage levels could
therefore have a material adverse effect on the Company.

ENVIRONMENTAL

Most of the Company’s manufacturing processes consist of the assembly of components. As a result, the environmental impact from the
Company’s plants is generally modest. While the Company’s businesses from time to time are subject to environmental investigations,
there are no material environmental-related cases pending against the Company. Therefore, Autoliv does not incur (or expect to incur)
any material costs or capital expenditures associated with maintaining facilities compliant with U.S. or non-U.S. environmental
requirements. To reduce environmental risk, the Company has implemented an environmental management system in all plants globally
and has adopted an environmental policy (see corporate website www.autoliv.com).

Autoliv is subject to a number of environmental and occupational health and safety laws and regulations. Such requirements are complex
and are generally becoming more stringent over time. There can be no assurance that these requirements will not change in the future,
or that the Company will at all times be in compliance with all such requirements and regulations, despite its intention to be. The Company
may also find itself subject, possibly due to changes in legislation or other regulation, to environmental liabilities based on the activities
of its predecessor entities or of businesses acquired. Such liability could be based on activities which are not related to the Company’s
current activities.

TRADE

Autoliv is subject to various international trade regulations and regimes and changes in these regimes could lead to increased compliance
costs and costs of raw materials and other components. In addition, political conditions leading to trade conflicts and the imposition of
tariffs or other trade barriers between countries in which the Company does business could increase its costs of doing business.

Strategic Risks

REGULATIONS

In addition to vehicle production, the Company’s market is driven by the safety content per vehicle, which is affected by new regulations
and new vehicle rating programs, in addition to consumer demand for new safety technologies.

The most important regulations are the seatbelt installation laws that exist in all vehicle-producing countries. Many countries also have
strict enforcement laws on the wearing of seatbelts. Another significant vehicle safety regulation is the U.S. federal law that, since 1997,
requires frontal airbags for both the driver and the front-seat passenger in all new vehicles sold in the U.S.

In 2007, the U.S. adopted new regulations for head impact and enhanced thorax protection in side impact crashes, which now have been
fully phased-in. China introduced a vehicle rating program in 2006 and during the past 16 years this China NCAP, together with the
additional Chinese rating program, CIASI, from 2017, drive Chinese vehicle safety performance and safety content with regards to
crashworthiness and occupant protection. Latin America introduced a basic rating program in 2010 followed by ASEAN NCAP in
Southeast Asia in 2011, and Global NCAP is rating vehicles sold in significant emerging markets. Several countries, e.g., Malaysia and
Thailand, are increasingly adopting the UN Regulations regarding vehicle safety under the UN 1958 agreement, and Malaysia started a
world first motorcycle safety rating program in 2021.

The United States upgraded its vehicle rating program, US NCAP, in 2010, which now is in the process of being updated by the U.S.
National Highway Traffic Safety Administration. Europe upgraded the Euro NCAP rating system during 2018, and is now completing a
new upgrade, intended to be fully implemented by 2025. Japan and South Korea are continuously upgrading their respective vehicle
rating programs, JNCAP and KNCAP respectively. India requires frontal airbags for the driver from July 2019, and passenger airbags
from 2021 for all new passenger vehicles (M1), moreover has announced that side airbags shall become mandatory in 2023. In addition,
India has announced that its Bharat NCAP shall start in 2023.

Vehicles with automated driving systems (ADS) are expected to provide additional opportunities through integration of protective safety
systems with ADAS technologies, as well as new vehicle interior layouts and seating configurations. This development is likely to become
subject to legal requirements.

There are also other plans for improved automotive safety through new or changed regulations, both in these countries and others that
could affect the Company’s market. However, there can be no assurance that changes in regulations will not adversely affect the demand
for the Company’s products or, at least, result in a slower increase in the demand for them.

DEPENDENCE ON CUSTOMERS

As a result of this highly consolidated market, the Company is dependent on a relatively small number of customers with strong purchasing
power. In 2023, the five largest vehicle manufacturers accounted for around 46% of global LVP and the ten largest manufacturers
accounted for around 66% of global LVP. In 2023, the Company’s five largest customers accounted for around 48% of consolidated
sales and the ten largest customers accounted for around 78% of consolidated sales. The Company's largest customer contract
accounted for around 3% of consolidated sales in 2023.

Customer
Renault/Nissan/Mitsubishi
Stellantis
VW
Honda
Toyota
Hyundai
Ford
General Motors
Major EV maker
Mercedes
1) Source: S&P Global

% of Autoliv sales

% of Global LVP1)

10%
10%
9%
9%
9%
7%
7%
6%
5%
4%

8%
7%
10%
5%
13%
8%
4%
5%
2%
3%

Although business with every major customer is split into at least several contracts (usually one contract per vehicle platform) and although
the customer base has become more balanced and diversified as a result of the Company's significant expansion in China and other
rapidly-growing markets, the loss of all business from a major customer (whether by a cancellation of existing contracts or not awarding
Autoliv new business), the consolidation of one or more major customers or a bankruptcy of a major customer could have a material
adverse effect on the Company. In addition, a quality issue, shortcomings in the Company's service to a customer or uncompetitive prices
or products could result in the customer not awarding the Company new business, which will gradually have a negative impact on the
Company's sales when current contracts start to expire.

See also Note 19, Segment Information, to the Consolidated Financial Statements included herein.

CUSTOMER PAYMENT RISK

Another risk related to the Company's customers is the risk that one or more of its customers will be unable to pay their invoices that
become due. The Company seeks to limit this customer payment risk by invoicing its major customers through their local subsidiaries in
each country, even for global contracts. By invoicing this way, the Company attempts to avoid having the receivables with a multinational
customer group exposed to the risk that a bankruptcy or similar event in one country would put all receivables with such customer group
at risk. In each country, the Company also monitors invoices becoming overdue.

Even so, if a major customer is unable to fulfill its payment obligations, it is likely that the Company would be forced to record a substantial
loss on such receivables.

DEPENDENCE ON SUPPLIERS

The Company relies on internal and/or external suppliers in order to meet its delivery commitments to the customers. In some cases,
suppliers are dictated by the customers. The Company's supply chain organization continually reviews sourcing risks and actively works
on mitigating related supply chain risks.

The Company’s ambition is to maintain an optimal number of suppliers in all significant component technologies.

NEW COMPETITION

Increased competition may result in price reductions, reduced margins and the Company's inability to gain or hold market share. OEMs
rigorously evaluate suppliers on the basis of product quality, price, reliability and delivery as well as engineering capabilities, technical
expertise, product innovation, financial viability, application of lean principles, operational flexibility, customer service, and overall
management. To maintain the Company's competitiveness and position as a market leader, it is important to focus on all these aspects
of supplier evaluation and selection.

Although the market for occupant restraint systems has undergone a significant consolidation during the past ten years, the passive
safety market remains very competitive. It cannot be excluded that additional competitors, both global and local, will seek to enter the
market or grow beyond their current Keiretsu group or traditional customer base. Particularly in China, South Korea, and Japan there are
numerous small domestic competitors often supplying just one OEM group.

PATENTS AND PROPRIETARY TECHNOLOGY

The Company’s strategy is to protect its innovations with patents, and to vigorously protect and defend its patents, trademarks, and know-
how against infringement and unauthorized use. At the end of 2023, the Company held more than 6,500 patents and patents applications.
These patents expire on various dates during the period from 2024 to 2043 The expiration of any single patent is not expected to have a
material adverse effect on the Company’s financial results.

Although the Company believes that its products and technology do not infringe upon the proprietary rights of others, there can be no
assurance that third parties will not assert infringement claims against the Company in the future. Also, there can be no assurance that
any patent now owned by the Company will afford protection against competitors that develop similar technology. As the Company
continues to expand its products and expand into new businesses, it will increase its exposure to intellectual property claims.

Financial Risks

The Company is exposed to financial risks through its operations. To reduce the financial risks and to take advantage of economies of
scale, the Company has a central treasury department supporting operations and management. The treasury department handles
external financial transactions and functions as the Company’s in-house bank for its subsidiaries.

The Board of Directors monitors compliance with the financial risk policy on an on-going basis. For information about specific financial
risks, see Item 7A – Quantitative and Qualitative Disclosures about Market Risk.

Significant Accounting Policies and Critical Accounting Estimates

NEW ACCOUNTING STANDARDS

The Company has considered all applicable recently issued accounting standards. The Company has summarized in Note 2, Summary
of Significant Accounting Policies, to the Consolidated Financial Statements each of the recently issued accounting standards and stated
the impact or whether management is continuing to assess the impact.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The Company’s significant accounting policies are disclosed in Note 2, Summary of Significant Accounting Policies, to the Consolidated
Financial Statements included herein. Senior management has discussed the development and selection of critical accounting estimates
and disclosures with the Audit Committee of the Board of Directors. The application of accounting policies necessarily requires judgments
and the use of estimates by a Company’s management. Actual results could differ from these estimates. By their nature, these judgments
are subject to an inherent degree of uncertainty. These judgments are based on the Company's historical experience, terms of existing
contracts, and management’s evaluation of trends in the industry, information provided by the Company's customers and information
available from other outside sources, as appropriate. The Company considers an accounting estimate to be critical if:

•

It requires management to make assumptions about matters that were uncertain at the time of the estimate, and

Changes in the estimate or different estimates that could have been selected would have had a material impact on the
Company's financial condition or results of operations. The accounting estimates that require management’s most significant
judgments include the estimation of variable considerations, assessment of recoverability of goodwill and intangible assets,
estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and recalls,
restructuring charges, uncertain tax positions, valuation allowances and legal proceedings.

The Company has summarized its critical accounting policies requiring judgment below. These might change over time based on the
current facts and circumstances.

REVENUE RECOGNITION

In accordance with ASC 606, Revenue from Contracts with Customers, revenue is measured based on consideration specified in a
contract with a customer, adjusted for any variable consideration (i.e., price concessions) and estimated at contract inception. The
estimated amount of variable consideration that will be received by the Company are based on historical experience and trends,
management´s understanding of the status of negotiations with customers and anticipated future pricing strategies. The Company
recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer.

In addition, from time to time, the Company may make payments to customers in connection with ongoing and future business. These
payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments unless
the payment concession can be clearly linked to the future business award. If the payments are capitalized, the amounts are amortized
to revenue as the related goods are transferred.

INVENTORY RESERVES

Inventories are evaluated based on individual or, in some cases, groups of inventory items. Reserves are established to reduce the value
of inventories to the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of
business, less reasonably predictable costs of completion, disposal and transportation. Excess inventories are quantities of items that
exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories
based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to
forecast sales or usage and to determine what constitutes a reasonable period.

There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the
calculation of the reserves.

GOODWILL

The Company performs an annual impairment test of goodwill in the fourth quarter of each year following the Company’s annual
forecasting process. As of October 2023, the Company concluded that there were no impairments of goodwill. For further information,
see Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements.

RECALL PROVISIONS AND WARRANTY OBLIGATIONS

The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate
costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern.
Product recall costs are estimated based on the expected cost of replacing the product and the customer´s cost of carrying out the recall,
which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective
product. The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of
both approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent
based on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although
costs related to replacement parts are generally not covered. Actual costs incurred could differ from the amounts estimated, requiring
adjustments to these reserves in future periods. It is possible that changes in our assumptions or future product recall issues could
materially affect our financial position, results of operations or cash flows.

Estimating warranty obligations requires the Company to forecast the resolution of existing claims and expected future claims on products
sold. The Company bases the estimate on historical trends of units sold and payment amounts, combined with our current understanding
of the status of existing claims and discussions with our customers. These estimates are re-evaluated on an ongoing basis. Actual
warranty obligations could differ from the amounts estimated requiring adjustments to existing reserves in future periods. Due to the
uncertainty and potential volatility of the factors contributing to developing these estimates, changes in our assumptions could materially
affect our results of operations.

RESTRUCTURING PROVISIONS

The Company defines restructuring expense to include costs directly associated with capacity alignment programs, plus exit or disposal
activities. Estimates of restructuring charges are based on information available at the time such charges are recorded. In general,
management anticipates that restructuring activities will be completed within a time frame such that significant changes to the exit plan
are not likely.

Due to inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts
initially estimated.

DEFINED BENEFIT PENSION PLANS

The Company has defined benefit pension plans in thirteen countries. The most significant plans exist in the U.S. These U.S. plans
represent approximately 51% of the Company’s total pension benefit obligation. See Note 18, Retirement Plans to the Consolidated
Financial Statements included herein.

The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected
benefit obligation and annual pension expense. For the U.S. plans, the assumptions used for calculating the 2023 pension expense were
a discount rate of 5.41% and an expected long-term rate of return on plan assets of 5.05%.

The assumptions used in calculating the U.S. benefit obligations disclosed, as of December 31, 2023 were a discount rate of 5.13%. The
discount rate for the U.S. plans has been set based on the rates of return of high-quality fixed-income investments currently available at
the measurement date and are expected to be available during the period the benefits will be paid. The expected rate of long-term return
on plan assets are determined based on several factors and must consider long-term expectations and reflect the financial environment
in the respective local markets. At December 31, 2023, 31% of the U.S. plan assets were invested in equities, which is close to the target
of 32%.

The table below illustrates the sensitivity of the U.S. net periodic benefit cost and projected U.S. benefit obligation to a 1pp change in the
discount rate and decrease in return on plan assets for the U.S. plans (in millions). The use of actuarial assumptions is an area of
management’s estimate.

Assumption
(in millions)
Discount rate
Discount rate
Return on plan assets

2023 net
periodic
benefit
cost increase
(decrease)

2023 projected
benefit
obligation
increase
(decrease)

1
(1)
2

(17)
20
n/a

Change

1pp increase
1pp decrease
1pp decrease

INCOME TAXES

Significant judgment is required in determining the worldwide provision for income taxes. In the ordinary course of a global business,
there are many transactions for which the ultimate tax outcome is uncertain. Many of these uncertainties arise because of intercompany
transactions.

Although the Company believes that its tax return positions are supportable, no assurance can be given that the final outcome of these
matters will not be materially different than that which is reflected in the historical income tax provisions and accruals. Such differences
could have a material effect on the income tax provisions or benefits in the periods in which such determinations are made. See also the
discussion of reserves for uncertain tax positions, and the determinations of valuation allowances on the Company's deferred tax assets
in Note 5, Income Taxes, to the Consolidated Financial Statements.

CONTINGENT LIABILITIES

The Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available
against insurable risks.

The Company records liabilities for claims, lawsuits and proceedings when they are probable and it is possible to reasonably estimate
the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed as such costs are
incurred.

A loss contingency is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and
the amount of the loss can be reasonably estimated. In determining whether a loss should be accrued management evaluates, among
other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss.
Changes in these factors could materially impact the Company's consolidated financial statements.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to several markets risks in the ordinary course of business including risks related to currencies, interest rates,
financing, capital structure and credit ratings and impairment. See also Note 2, Summary of Significant Accounting Policies to the
Consolidated Financial Statements included with this Annual Report for information about how these risks are quantified.

CURRENCY RISKS

1. Transaction Exposure and Revaluation effects

Transaction exposure arises because the cost of a product originates in one currency and the product is sold in another currency.
Revaluation effects come from valuation of assets and liabilities denominated in other currencies than the reporting currency of each unit.

The Company's net transaction exposure in 2023 was approximately $1.8 billion. The four largest net exposures are U.S. dollars (sell)
against the Mexican Peso, Romanian Lei (buy) against the Euro, U.S. dollars (buy) against Korean Won and U.S. dollars (buy) against
Japanese Yen. Together these currencies accounted for approximately 50% of the Company’s net currency transaction exposure.

Since the Company can only effectively hedge these currency flows in the short term, periodic hedging would only reduce the impact of
fluctuations temporarily. Over time, periodic hedging would postpone but not reduce the impact of fluctuations. In addition, the net
exposure is limited to only around one quarter of net sales and is made up of around 50 different currency pairs with exposures of more
than $1 million each. The Company generally does not hedge these flows.

2. Translation Exposure in the Income Statement and Balance Sheet

Another effect of exchange rate fluctuations arises when the income statements of non-U.S. subsidiaries are translated into U.S. dollars.
Outside the U.S., the Company’s most significant currency is the Euro. The Company estimates that 28% of its consolidated net sales
will be denominated in Euro or other European currencies during 2024, while 19% of its consolidated net sales are estimated to be
denominated in U.S. dollars.

The Company estimates that a 1% increase in the value of the U.S. dollar versus European currencies will decrease reported U.S. dollar
annual net sales in 2024 by $31 million, while operating income for 2024 will decline by $3 million, assuming reported corporate average
margin.

The Company’s policy is not to hedge this type of translation exposure.

A translation exposure also arises when the balance sheets of non-U.S. subsidiaries are translated into U.S. dollars. The policy of the
Company is to finance major subsidiaries in the country’s local currency and to minimize the amounts held by subsidiaries in foreign
currency accounts.

Consequently, changes in currency rates relating to funding and foreign currency accounts normally have a small impact on the
Company’s income. In 2023 and 2022, the impact from the Company’s currency exposure were not material.

INTEREST RATE RISK

Interest rate risk refers to the risk that interest rate changes will affect the Company’s borrowing costs. The Company's interest rate risk
policy states that the average interest rate fixing period should be minimum 1 year and maximum 5 years.

At December 31, 2023, the average interest rate fixing period for the Company’s outstanding debt was 2.1 years, and at December 31,
2022, the average interest rate fixing period for the Company’s outstanding debt was 1.6 years.

Given the Company’s current capital structure, we estimate that a one-percentage point interest rate increase would decrease net interest
expense by approximately $0.4 million on an annual basis. This is based on the capital structure at the end of 2023 when the gross fixed-
rate debt was $1,024 million while the Company had a net debt position of $1,367 million (see section Non-U.S. GAAP Performance
Measures). Thus, a change in the interest rate environment would not have a notable impact on the Company’s interest expense. As of
December 31, 2023, the Company had $498 million in cash and cash equivalents of which the majority were subject to a floating interest
rate. Taking the cash and cash equivalents of $498 million (which is primarily subject to floating interest rates) minus the portion of debt
carrying floating interest rates, we estimated that a one-percentage point interest rate increase would decrease net interest expense by
approximately $0.4 million on an annual basis.

Fixed interest rate debt can be achieved both by issuing fixed rate notes and through interest rate swaps. The most notable debt carrying
fixed interest rates is the €500 million bond issued in 2023, see Note 13 to the Consolidated Financial Statements included herein.

FINANCING RISK

Financing risk refers to the risk that it will be difficult and/or expensive to finance new or existing debt to meet the financing needs of the
Autoliv Group.

The management of the financing risk ensures access to funding in a cost-efficient way by diversification of funding sources and debt
maturities.

Autoliv has diversified its long-term funding sources by issuing notes in the USPP and Eurobond markets, and by signing a long-term
credit agreement with 11 banks. The Company also has a lending facility with the Swedish Export Credit Corporation.

The Company has a Medium Term Note Program in place for being able to issue notes to be traded on the Global Exchange Market of
Euronext Dublin. The Company also has established programs for short-term issuance of commercial papers in the Swedish and US
markets and short-term credit agreements, e.g., bank overdrafts and money market loans.

To ensure diversification of debt maturities no more than 20% of the Autoliv Group’s total debt may mature the next 12 months, unless
such maturities (in excess of 20%) are covered by unutilized committed credit facilities with maturity in excess of 12 months. Per
December 31, 2023, 29% corresponding to $538 million of the Autoliv Group’s total debt had maturity less than 12 months. This amount
was fully covered by unutilized committed credit facilities with maturity in excess of 12 months.

CAPITAL STRUCTURE AND CREDIT RATING

The overall objective relating to Autoliv’s target capital structure and credit rating is to provide the Company with sufficient flexibility to
manage the inherent risks and cyclicality in Autoliv’s business and allow the Company to realize strategic opportunities and fund growth
initiatives while creating shareholder value.

Autoliv is committed to maintain a “strong investment grade credit rating." As of December 31, 2023, the Company had a long-term credit
rating from S&P Global Ratings (“S&P”) of BBB.

The amount of interest-bearing debt held impacts the future financial flexibility as well as the credit rating. Management uses the non-
U.S. GAAP measure “Leverage Ratio” to analyze the amount of debt the Company can incur under its debt policy. Management believes
that this policy also provides guidance to credit and equity investors regarding the extent to which the Company would be prepared to
leverage its operations. Autoliv’s long-term target for the leverage ratio (sum of net debt plus pension liabilities divided by EBITDA) is
1.0x with the aim to operate within the range of 0.5x to 1.5x. At December 31, 2023, the leverage ratio (non-U.S. GAAP measure, see
calculation table below) was 1.2x. For details and calculation of leverage ratio, refer to the table below.

CALCULATION OF LEVERAGE RATIO (DOLLARS IN MILLIONS)

Net debt1)
Pension liabilities
Debt per the Policy

Net income2)
Income taxes2)
Interest expense, net2,3)
Other non-operating items, net2)
Income from equity method investments2)
Depreciation and amortization of intangibles2)
Capacity alignments costs and antitrust related matters2)
EBITDA per the Policy (Adjusted EBITDA)
Leverage ratio

December 31,

2023

2022

1,367
159
1,527

489
123
80
3
(5)
378
230
1,297
1.2

1,184
154
1,338

425
178
54
5
(3)
363
(61)
961
1.4

1) Net debt is short- and long-term debt and debt-related derivatives less cash and cash equivalents (non-U.S. GAAP measure).
2) Latest 12 months.
3) Interest expense, net is interest expense including cost for extinguishment of debt, if any, less interest income.

CREDIT RISK IN FINANCIAL MARKETS

Credit risk refers to the risk of a financial counterparty being unable to fulfill an agreed-upon obligation.

In the Company’s financial operations, credit risk arises when cash is deposited with banks and when entering into forward exchange
agreements, swap contracts or other financial instruments.

The policy of the Company is to work with banks that have a high credit rating and that participate in Autoliv’s financing.

To further reduce credit risk, deposits and financial instruments can only be entered into with core banks up to a calculated risk amount
of $200 million per bank for banks rated A- or above and up to $50 million for banks rated BBB+. In addition, deposits can be made in
U.S. and Swedish government short-term notes and certain AAA rated money market funds, as approved by the Company’s Board of
Directors. At December 31, 2023, the Company held $290 million in AAA rated money market funds.

IMPAIRMENT RISK

Impairment risk refers to the risk that the Company will write down a material amount of its goodwill of close to $1.4 billion as of December
31, 2023. This risk is assessed at least annually in the fourth quarter each year when the Company performs its impairment testing.

In 2023, the Company performed a quantitative impairment testing by calculating the fair value of its goodwill. The estimated fair market
value of goodwill is determined by the discounted cash flow method. The Company discounts projected operating cash flows using its
weighted average cost of capital. Estimating the fair value requires the Company to make judgments about appropriate discount rates,
growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows.

It has been concluded that presently the Company's goodwill is not “at risk”. However, there can be no assurance that goodwill will not
be impaired due to future significant declines in LVP, due to the Company's technologies or products becoming obsolete or for any other
reason. The Company could also acquire companies where goodwill could turn out to be less resilient to deteriorations in external
conditions. See also discussion under Goodwill and Intangible Assets in Note 2, Summary of Significant Accounting Policies, and Note
10, Goodwill and Intangible Assets, to the Consolidated Financial Statements included herein.

Item 8. Financial Statements and Supplementary Data

The Consolidated Balance Sheets of Autoliv as of December 31, 2023 and 2022 and the Consolidated Statements of Income,
Comprehensive Income, Cash Flows and Total Equity for each of the three years in the period ended December 31, 2023, the Notes to
the Consolidated Financial Statements, and the Reports of the Independent Registered Public Accounting Firm are included below.

All of the schedules specified under Regulation S-X to be provided by Autoliv have been omitted either because they are not applicable,
are not required or the information required is included in the financial statements or notes thereto.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Autoliv, Inc.

Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Autoliv, Inc. (the Company) as of December 31, 2023 and 2022, the
related consolidated statements of income, comprehensive income, total equity and cash flows for each of the three years in the period
ended December 31, 2023, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the
consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023 and
2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity
with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our
report dated February 20, 2024 expressed an unqualified opinion thereon.

Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.

Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were
communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to
the financial statements and (2) involved especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures
to which they relate.

Description of the
Matter

Revenue recognition – Variable consideration related to price concessions

As discussed in Note 2 to the consolidated financial statements, the Company measures revenue based on
consideration specified in a contract with a customer, adjusted for any variable consideration. Variability in
consideration typically results from price concessions. The estimated variable consideration that will be received
by the Company related to price concessions is based on assumptions that include historical experience and
trends, management’s assessment of the probable outcome of its negotiations with customers and anticipated
future pricing strategies. Estimating variable consideration to be received related to price concessions requires
significant judgments by management that affect the amount of revenue recorded in the financial statements.

Auditing the amount of variable consideration expected to be received related to price concessions was complex
because of the uncertainty inherent in the factors discussed above that management uses in its assumptions and
calculations.

How We
Addressed the
Matter in Our Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls
related to variable consideration.

To test the estimated variable consideration expected to be received related to price concessions, our audit
procedures included, among others, evaluating the Company’s estimation methodology and testing the significant
factors used in the calculations, as discussed above. These procedures included obtaining information from
management and sales department representatives who were responsible for negotiations with customers to
assess the reasonableness of assumptions related to variable considerations relative to current negotiations. We
also performed journal entry testing focused on unusual and manual entries affecting revenue.

Description of the
Matter

How We
Addressed the
Matter in Our Audit

Product recall liabilities

As discussed in Notes 2 and 12 to the consolidated financial statements, the Company is exposed to product
liability claims in the event its products fail to perform as represented and such failure results, or is alleged to result,
in bodily injury, and/or property damage or other loss. The Company records liabilities for product recalls when
probable claims are identified and when it is possible to reasonably estimate costs. Actual costs incurred could
differ from the amounts estimated, requiring adjustments to these reserves in future periods. Provisions for product
recalls are estimated based on the expected cost of replacing the product and the customer’s cost of carrying out
the recall, which is affected by the number of vehicles subject to recall and the cost of labor and materials to
remove and replace the defective product.

Auditing the product recall liabilities was complex due to the uncertainty inherent in the assumptions and estimates
management uses to calculate these liability balances. These significant assumptions and estimates include the
nature, likelihood, timing, and anticipated cost of known and potential claims.

We obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls
over the Company’s product recall liabilities process.

To test product recall liabilities, our audit procedures included, among others, evaluating the Company’s estimation
methodology and testing the significant assumptions. We obtained information from Company personnel who are
responsible for monitoring the status of product recalls with customers to assess the reasonableness of
assumptions used. We evaluated the Company’s ability to estimate by comparing actual results to previous
estimates and judgments made by management. We also obtained letters from the Company’s external legal
counsel addressing material claims against the Company, if any, and examined relevant third-party automotive
safety regulatory information to identify potential unrecorded product recall liabilities.

/s/ Ernst & Young AB

We have served as the Company´s auditor since 1984.

Stockholm, Sweden
February 20, 2024

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Autoliv, Inc.

Opinion on Internal Control over Financial Reporting

We have audited Autoliv, Inc.’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework)
(the COSO criteria). In our opinion, Autoliv, Inc. (the Company) maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the consolidated balance sheets of the Company as of December 31, 2023 and 2022, the related consolidated statements of income,
comprehensive income, total equity and cash flows for each of the three years in the period ended December 31, 2023, and the related
notes and our report dated February 20, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over
Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our
audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial
statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young AB

Stockholm, Sweden
February 20, 2024

Consolidated Statements of Income

(DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE DATA)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Research, development and engineering expenses, net
Amortization of intangibles
Other income (expense), net
Operating income
Income from equity method investment
Interest income
Interest expense
Other non-operating items, net
Income before income taxes
Income tax expense
Net income
Less: Net income attributable to non-controlling interest
Net income attributable to controlling interest

Earnings per share - basic
Earnings per share - diluted

Weighted average number of shares outstanding, net of
treasury shares (in millions)
Weighted average number of shares outstanding, assuming
dilution and net of treasury shares (in millions)

Cash dividend per share - declared
Cash dividend per share - paid

See Notes to the Consolidated Financial Statements.

Note 19 $

Note 10
Notes 11, 17

Note 8

Note 13

Note 5

$
$

Years ended December 31
2022

2021

2023

10,475
(8,654)
1,822
(498)
(425)
(2)
(207)
690
5
13
(93)
(3)
612
(123)
489
1
488

5.74
5.72

85.0

85.2

2.66
2.66

$
$

8,842
(7,446)
1,396
(437)
(390)
(3)
93
659
3
6
(60)
(5)
603
(178)
425
2
423

4.86
4.85

87.1

87.2

2.58
2.58

$
$

8,230
(6,719)
1,511
(432)
(391)
(10)
(3)
675
3
4
(60)
(7)
614
(177)
437
2
435

4.97
4.96

87.5

87.7

1.88
1.88

Consolidated Statements of Comprehensive Income

(DOLLARS IN MILLIONS)
Net income
Other comprehensive income (loss)before tax:
Change in cumulative translation adjustments
Net change in unrealized components of defined benefit plans
Other comprehensive income (loss), before tax
Tax effect allocated to other comprehensive income (loss)
Other comprehensive income (loss), net of tax
Comprehensive income
Less: Comprehensive income attributable to non-controlling interest
Comprehensive income attributable to controlling interest

See Notes to the Consolidated Financial Statements.

Years ended December 31
2022

2021

2023

489

425

20
7
27
(1)
25
514
1
513

(136)
29
(107)
(9)
(116)
309
0
309

437

(86)
37
(49)
(11)
(60)
377
2
375

Consolidated Balance Sheets

(DOLLARS AND SHARES IN MILLIONS)
Assets
Cash and cash equivalents
Receivables, net
Inventories, net
Income tax receivable
Prepaid expenses and accrued income
Other current assets
Total current assets
Property, plant and equipment, net
Operating lease right-of-use assets
Goodwill and intangible assets, net
Other non-current assets
Total non-current assets
Total assets
Liabilities and equity
Short-term debt
Accounts payable
Accrued expenses
Income tax payable
Operating lease liabilities, current
Other current liabilities
Total current liabilities
Long-term debt
Pension liability
Operating lease liabilities, non-current
Other non-current liabilities
Total non-current liabilities
Commitments and contingencies
Common stock1)
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock (4.9 and 5.0 million shares, respectively)
Total controlling interest’s equity
Non-controlling interest
Total equity
Total liabilities and equity

At December 31

2023

2022

498
2,198
1,012
60
173
33
3,974
2,192
176
1,385
606
4,358
8,332

538
1,978
1,135
122
39
223
4,035
1,324
159
135
109
1,728

88
1,044
2,289
(496)
(368)
2,557
13
2,570
8,332

594
1,907
969
55
160
29
3,714
1,960
160
1,382
502
4,003
7,717

711
1,693
915
75
39
207
3,642
1,054
154
119
121
1,450

91
1,113
2,310
(522)
(379)
2,613
13
2,626
7,717

Note 6
Note 7

Note 12, 17

Note 9
Note 3
Note 10
Note 8, 17

Note 13

Notes 11, 12

Note 3

Note 13
Note 18
Note 3

Note 17

Note 14

1) Number of shares: 350 million authorized for both years, 87.5 and 91.2 million issued, and 82.6 and 86.2 million outstanding, net of treasury shares, for
2023 and 2022, respectively.

See Notes to the Consolidated Financial Statements.

Consolidated Statements of Cash Flows

(DOLLARS IN MILLIONS)
Operating activities
Net income
Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization
Gain on divestiture of property
Deferred income taxes
Undistributed earnings from equity method investments, net of dividends
Other, net

Net change in operating working capital:
Receivables and other assets, gross
Inventories, gross
Accounts payable and accrued expenses
Income taxes

Net cash provided by operating activities
Investing activities
Expenditures for property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash used in investing activities
Financing activities
Net increase (decrease) in other short-term debt
Proceeds from long-term debt
Repayment of long-term debt
Dividends paid
Stock repurchases
Common stock options exercised
Dividends paid to non-controlling interest
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

See Notes to the Consolidated Financial Statements.

Years ended December 31
2022

2021

2023

489

425

378
—
(109)
(1)
(10)

(213)
(22)
426
43
982

(573)
4
(569)

61
559
(533)
(225)
(352)
1
(1)
(490)
(20)
(96)
594
498

363
(80)
(40)
(1)
(13)

(297)
(243)
596
2
713

(585)
101
(485)

167
—
(357)
(224)
(115)
0
(2)
(531)
(73)
(375)
969
594

437

394
—
(20)
(3)
8

283
(19)
(314)
(12)
754

(458)
4
(454)

(11)
—
(295)
(165)
—
3
(1)
(469)
(39)
(209)
1,178
969

Consolidated Statements of Total Equity

Number of
shares

Common
stock

Additional
paid in
capital

Retained
earnings

103

1,329

2,471

435

(165)

Accumulated
other com-
prehensive
(loss) income1)
(347)
$

(87)
26

435
(87)
26
375
15
(165)

Treasury
stock

Total parent
shareholders’
equity

Non-
controlling
interest

Total
equity

(1,147)

2,409

2,423

103

1,329

2,742

(408)

(1,133)

2,633

(11)

(216)

423

(631)

(224)

(134)
20

744
10

423
(134)
20
309
(115)
10
(224)

1,113

2,310

(522)

(379)

2,613

(4)

(70)

488

(282)

(225)

20
6

488
20
6
513
(356)
11
(225)

1,044

2,289

(496)

(368)

2,557

2
0

(1)
15

2
(1)

(2)
13

1
(0)

437
(86)
26
377
15
(165)

(1)
2,648

425
(136)
20
309
(115)
10
(224)

(2)
2,626

489
20
6
514
(356)
11
(225)

(1)
13

(1)
2,570

(DOLLARS AND SHARES
IN MILLIONS)
Balance at December 31, 2020
Comprehensive Income:

Net income
Foreign currency translation
Pension liability

Total Comprehensive Income
Stock-based compensation
Cash dividends declared
Dividends paid to non-controlling
interest on subsidiary shares
Balance at December 31, 2021
Comprehensive Income:

Net income
Foreign currency translation
Pension liability

Total Comprehensive Income
Retired and repurchased shares
Stock-based compensation
Cash dividends declared
Dividends paid to non-controlling
interest on subsidiary shares
Balance at December 31, 2022
Comprehensive Income:

Net income
Foreign currency translation
Pension liability

Total Comprehensive Income
Retired and repurchased shares
Stock-based compensation
Cash dividends declared
Dividends paid to non-controlling
interest on subsidiary shares
Balance at December 31, 2023

1) See Note 14 for further details – includes tax effects where applicable.

See Notes to the Consolidated Financial Statements.

Notes to the Consolidated Financial Statements

(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)

1. Basis of Presentation

NATURE OF OPERATIONS

Through its operating subsidiaries, the Company is a leading developer, manufacturer and supplier of passive safety systems to the
automotive industry with a broad range of product offerings.

The Company also develops and manufactures mobility safety solutions such as pedestrian protection, battery cut-off switches, connected
safety services, and safety solutions for riders of powered two wheelers.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements have been prepared in accordance with United States (U.S.) Generally Accepted Accounting
Principles (GAAP) and include Autoliv, Inc. and all companies over which Autoliv, Inc. directly or indirectly exercises control, which as a
general rule means that the Company owns more than 50% of the voting rights.

Consolidation is also required when the Company has both the power to direct the activities of a variable interest entity (VIE) and the
obligation to absorb losses or the right to receive benefits from the VIE that could be significant to the VIE.

All intercompany accounts and transactions within the Company have been eliminated from the consolidated financial statements.

Investments in affiliated companies in which the Company exercises significant influence over the operations and financial policies, but
does not control, are reported using the equity method of accounting. Generally, the Company owns between 20-50% of such
investments.

SEGMENT REPORTING

In accordance with ASC 280, Segment Reporting, the operating segments are determined based on the information provided to the Chief
Operating Decision Maker (CODM) on a regular basis and used for the purpose of assessing performance and allocating resources within
the Company. The CEO is deemed to be the CODM of Autoliv since he is the person who makes all major decisions on how to allocate
the resources and assess the performance of the Company for both strategic and operational initiatives.

ASC 280 indicates that a component is an operating segment if it meets the following criteria:

•

It engages in business activities from which it may earn revenues and incur expenses.

Its operating results are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment
and assess its performance.

Its discrete financial information is available.

The Company as a whole has met the definition of an operating segment as it engages in business activities from which it may earn
revenues and incur expenses, the consolidated operating results are regularly reviewed by the CEO/CODM to allocate resources and
assess performance, and discrete financial information is available. Additionally, as Autoliv supplies customers on a global basis it also
manages the business on a global basis. Therefore, based on the above analysis, the Company has concluded that the Company is the
single operating and reportable segment under ASC 280, Segment Reporting. For more information on the Company's segment, see
Note 19.

RECLASSIFICATIONS AND ROUNDINGS

Certain prior-year amounts have been reclassified to conform to current year presentation.

Certain amounts in the consolidated financial statements and associated notes may not reconcile due to rounding. All percentages have
been calculated using unrounded amounts.

2. Summary of Significant Accounting Policies

EQUITY METHOD INVESTMENT

Investments accounted for under the equity method, means that a proportional share of the equity method investment’s net income
increases the investment, and a proportional share of losses and payment of dividends decreases it. In the Consolidated Statements of
Income, the proportional share of the net income (loss) is reported as Income from equity method investment.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the
consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. The accounting
estimates that require management’s most significant judgments include the estimation of variable consideration for the Company's
contracts with customers, valuation of stock-based compensation payments, assessment of recoverability of goodwill and intangible
assets, estimation of pension benefit obligations based on actuarial assumptions, estimation of accruals for warranty and recalls,
restructuring charges, uncertain tax positions, valuation allowances and legal proceedings. Actual results could differ from those
estimates.

REVENUE RECOGNITION

In accordance with ASC 606, Revenue from Contracts with Customers, revenue is measured based on consideration specified in a
contract with a customer, adjusted for any variable consideration (i.e., price concessions) and estimated at contract inception. The
estimated amount of variable consideration that will be received by the Company is based on historical experience and trends,
management´s understanding of the status of negotiations with customers and anticipated future pricing strategies. The Company
recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer.

In addition, from time to time, the Company may make payments to or receive additional consideration from customers in connection with
ongoing and future business. These payments to or cash receipts from customers are generally recognized to revenue at the time of the
commitment unless the payments to customers can be clearly linked to the future business. If the payments to customers are capitalized,
the amounts are amortized to revenue as the related goods are transferred.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and
collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight before control of a product has transferred to a customer are accounted for
as a fulfillment cost and are included in cost of sales.

Nature of goods and services

The Company generates revenue from the sale of parts, which includes airbag and seatbelt products and components, to original
equipment manufacturers (“OEMs”).

The Company accounts for individual products separately if they are distinct (i.e., if a product is separately identifiable from other items
and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration for
each of the products, including any price concessions, is based on their stand-alone selling prices. The stand-alone selling prices are
determined based on the cost-plus margin approach.

The Company recognizes revenue for parts primarily at a point in time. For parts with revenue recognized at a point in time, the Company
recognizes revenue upon shipment to the customers and transfer of title and risk of loss under standard commercial terms (typically FOB
shipping point).

There are certain contracts where the criteria to recognize revenue over time have been met (e.g., there is no alternative use to the
Company and the Company has an enforceable right to payment). In such cases, at period end, the Company recognizes revenue and
a related asset and associated cost of goods sold and reduction in inventory. However, the financial impact of these contracts is immaterial
considering the very short production cycles and limited inventory days on hand. The contract balances with customers, included in other
current assets, amounted to $20 million as of December 31, 2023 and 2022.

The amount of revenue recognized is based on the purchase order price and adjusted for variable consideration (i.e., price concessions).
Customers typically pay for the parts based on customary business practices.

GOVERNMENT ASSISTANCE

The Company’s operations are impacted by various government incentives, grants, programs, rebates, and other arrangements.
Government assistance received is recorded in our consolidated financial statements in accordance with their purpose, either as a
reduction of expense or an offset to the related capital asset. The benefit is recorded when all performance obligations attached to the
assistance have been met or are expected to be met and there is reasonable assurance of their receipt. Government assistance received
by the Company is immaterial for all periods presented since the adoption of ASU 2021-10.

RESEARCH, DEVELOPMENT AND ENGINEERING, NET (R,D & E)

Research and development and most engineering expenses are expensed as incurred. These expenses are reported net of expense
reimbursements from contracts to perform engineering design and product development fulfillment activities related to the production of
parts. For the years 2023, 2022 and 2021 total reimbursements from customers were $192 million, $204 million and $205 million,
respectively.

Certain engineering expenses related to long-term supply arrangements are capitalized when defined criteria, such as the existence of a
contractual guarantee for reimbursement, are met. The aggregate amount of such assets is not significant in any period presented.

Tooling is generally agreed upon as a separate contract or a separate component of an engineering contract, as a pre-production project.
Capitalization of tooling costs is made only when the specific criteria for capitalization of customer funded tooling is met or the criteria for
capitalization as Property, Plant & Equipment (P,P&E) for tools owned by the Company are fulfilled. Depreciation on the Company’s own
tooling is recognized in the Consolidated Statements of Income as Cost of sales.

STOCK-BASED COMPENSATION

The compensation costs for all of the Company’s stock-based compensation awards are determined based on the fair value method as
defined in ASC 718, Compensation –Stock Compensation. The Company records the compensation expense for awards under the Stock
Incentive Plan, including Restricted Stock Units (RSUs), Performance Shares (PSUs) and stock options (SOs), over the respective vesting
period. For further details, see Note 16.

INCOME TAXES

Current tax liabilities and assets are recognized for the estimated taxes payable or refundable on the tax returns for the current year. In
certain circumstances, payments or refunds may extend beyond twelve months, in such cases amounts would be classified as non-
current taxes payable or receivable. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to
temporary differences and carryforwards that result from events that have been recognized in either the financial statements or the tax
returns, but not both. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws.
Deferred tax assets are reduced by the amount of any tax benefits that are not expected to be realized. A valuation allowance is
recognized if, based on the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax asset
will not be realized. Evaluation of the realizability of deferred tax assets is subject to significant judgment requiring careful consideration
of all facts and circumstances. The Company classifies deferred tax assets and liabilities as non-current in the Consolidated Balance
Sheet. Tax assets and liabilities are not offset unless attributable to the same tax jurisdiction and netting is possible according to law and,
as it relates to payables and receivables, expected to take place in the same period.

Tax benefits associated with tax positions taken in the Company’s income tax returns are initially recognized when it is more likely than
not that those tax positions will be sustained upon examination by the relevant taxing authorities. The Company’s evaluation of its tax
benefits is based on the probability of the tax position being upheld if challenged by the taxing authorities (including through negotiation,
appeals, settlement and litigation). Whenever a tax position does not meet the initial recognition criteria, the tax benefit is subsequently
recognized if there is a substantive change in the facts and circumstances that cause a change in judgment concerning the sustainability
of the tax position upon examination by the relevant taxing authorities. In cases where tax benefits meet the initial recognition criterion,
the Company continues, in subsequent periods, to assess its ability to sustain those positions. A previously recognized tax benefit is
derecognized when it is no longer more likely than not that the tax position would be sustained upon examination. Liabilities for
unrecognized tax benefits are classified as non-current unless the payment of the liability is expected to be made within the next 12
months.

EARNINGS PER SHARE

The Company calculates basic earnings per share (EPS) by dividing net income attributable to controlling interest by the weighted-
average number of shares of common stock outstanding for the period (net of treasury shares). The Company’s unvested RSUs and
PSUs, of which some include the right to receive non-forfeitable dividend equivalents, are considered participating securities. The diluted
EPS reflects the potential dilution that could occur if common stock was issued for awards under the Stock Incentive Plan and is calculated
using the treasury stock method. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock
option awards to repurchase ordinary shares at the average market price during the period. For unvested restricted stock, assumed
proceeds under the treasury stock method will include unamortized compensation cost and windfall tax benefits or shortfalls. For further
details, see Notes 16 and 20.

CASH EQUIVALENTS

The Company considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents.

RECEIVABLES AND ALLOWANCE FOR EXPECTED CREDIT LOSSES

In addition to individually assess overdue customer balances for expected credit losses, the Company also calculates an allowance that
reflects the expected credit losses on receivables considering both historical experience as well as forward looking assumptions. The
method calculates the expected credit loss for a group of customers by using the customer groups’ average short-term default rates
based on officially published credit ratings and the Company’s historical experience. These default rates are considered the Company’s
best estimate of the customer’s ability to pay. The Company regularly reassess the customer groups and the applied customer group’s
default rates by using its best judgment when considering changes in customer’s credit ratings, customer’s historical payments and loss
experience, current market and economic conditions and the Company’s expectations of future market and economic conditions.

There can be no assurance that the amount ultimately realized for receivables will not be materially different than that assumed in the
calculation of the allowance for expected credit losses.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

All derivatives are recognized at fair value.

Hedge accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does
not meet the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that
occurs from changes in interest and foreign exchange rates.

For further details on the Company’s financial instruments, see Note 4.

INVENTORIES

The cost of inventories is computed according to the first-in first-out method (FIFO). Cost includes the cost of materials, direct labor and
the applicable share of manufacturing overhead. Inventories are evaluated based on individual or, in some cases, groups of inventory
items. Reserves are established to reduce the value of inventories to the lower of cost or net realizable value. Net realizable value is the
estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.
Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company calculates
provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage.
Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no
assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the
reserves.

PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment is recorded at historical cost. Construction in progress generally involves short-term projects for which
capitalized interest is not significant. The Company provides for depreciation of property, plant and equipment computed under the
straight-line method over the assets’ estimated useful lives, or in the case of leasehold improvements over the shorter of the useful life
or the lease term. Amortization on finance leases is recognized with depreciation expense in the Consolidated Statements of Income over
the shorter of the assets’ expected life or the lease contract term. Repairs and maintenance are expensed as incurred.

LEASES

In accordance with ASC 842, Leases, the Company recognizes contracts that is, or contains, a lease when the contract conveys the right
to control the use of a physically identified asset for a period of time in exchange for consideration in the balance sheet as a right-of-use
asset and lease liability. The Company recognizes a right-of-use asset and a lease liability at lease commencement. The lease liability
for both finance and operating leases is measured at the present value of the remaining lease payments, discounted at the Company's
incremental borrowing rate (if the implicit interest rate in the lease contract is not readily determinable). The right-of-use asset (ROU) for
finance and operating leases is initially measured at the sum of the initial lease liability plus initial direct costs plus prepaid lease payments
minus lease incentives received. Lease payments include undiscounted fixed payments plus optional payments that are reasonably
certain to be owed. Lease payments do not include variable lease payments other than those that depend on an index or rate. Variable
lease payments that depend on an index or a rate are included in the calculation of lease payments and in the measurement of the lease
liability.

If the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate as the discount rate. The
Company uses its best judgement when determining the incremental borrowing rate, which is the rate of interest that the Company would
have to pay to borrow on a collateralized basis over a similar term to the lease payments in a similar currency.

The Company has elected the practical expedient of not separating lease components from non-lease components for all its classes of
underlying assets. The Company has also elected to recognize the lease payments for short-term leases in its consolidated statement of
income on a straight-line basis over the lease term and recognize the variable lease payments in the period in which the obligation for
those payments is incurred.

Finance lease right-of-use assets are presented together with other property, plant and equipment assets and finance lease liabilities are
presented together with other current and non-current liabilities in the Consolidated Balance Sheets. Finance leases were not material
as of December 31, 2023.

For further details on the Company’s leases, see Note 3.

LONG-LIVED ASSET IMPAIRMENT

The Company evaluates the carrying value and useful lives of long-lived assets, other than goodwill and intangible assets, when
indications of impairment are evident or it is likely that the useful lives have decreased, in which case the Company depreciates the assets
over the remaining useful lives. Impairment testing is primarily done by using the cash flow method based on undiscounted future cash
flows. Estimated undiscounted cash flows for a long-lived asset being evaluated for recoverability are compared with the respective
carrying amount of that asset. If the estimated undiscounted cash flows exceed the carrying amount of the assets, the carrying amounts
of the long-lived asset are considered recoverable and an impairment cannot be recorded. However, if the carrying amount of a group of
assets exceeds the undiscounted cash flows, an entity must then measure the long-lived assets’ fair value to determine whether an
impairment loss should be recognized, generally using a discounted cash flow model. Generally, the lowest level of cash flows for
impairment assessment is customer platform level.

GOODWILL AND INTANGIBLE ASSETS

Goodwill represents the excess of the fair value of consideration transferred over the fair value of net assets of businesses acquired.
Goodwill is not amortized but subject to at least an annual review for impairment. Other intangible assets, principally related to acquired
technology, are amortized over their useful lives which range from 3 to 25 years.

The Company performs its annual impairment testing in the fourth quarter of each year. Impairment testing is required more often than
annually if an event or circumstance indicates that an impairment, or decline in value, may have occurred. The Company uses either a
qualitative assessment or a quantitative calculation for its impairment testing. The qualitative assessment permits the Company to assess
whether it is more than likely than not (i.e., a likelihood of greater than 50%) that goodwill or an indefinite-lived intangible asset is impaired.
If the Company concludes based on the qualitative assessment that it is not more likely than not that the fair value of goodwill or an
indefinite-lived intangible asset is less than its carrying amount, it would not have to quantitatively determine the asset’s fair value. The
Company also consider external factors that could affect the significant inputs used to determine fair value.

In 2023, the Company performed a quantitative impairment test by calculating the fair value of its goodwill. The estimated fair market
value of goodwill is determined by the discounted cash flow method. The Company discounts projected operating cash flows using its
weighted average cost of capital. Estimating the fair value requires the Company to make judgments about appropriate discount rates,
growth rates, relevant comparable company earnings multiples and the amount and timing of expected future cash flows. If the estimated
fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value of a reporting unit
exceeds its estimated fair value, an impairment loss is recognized for the excess of carrying amount over the fair value of the respective
reporting unit. To supplement this analysis, the Company compares the market value of its equity, calculated by reference to the quoted
market prices of its shares, with the book value of its equity.

There were no impairments of goodwill from 2021 through 2023.

WARRANTIES AND RECALLS

The Company records liabilities for product recalls when probable claims are identified and when it is possible to reasonably estimate
costs. Recall costs are costs incurred when the customer decides to formally recall a product due to a known or suspected safety concern.
Product recall costs are estimated based on the expected cost of replacing the product and the customer´s cost of carrying out the recall,
which is affected by the number of vehicles subject to recall and the cost of labor and materials to remove and replace the defective
product. Insurance receivables, related to recall issues covered by the insurance, are included within other current and non-current assets
in the Consolidated Balance Sheets. Provisions for warranty claims are estimated based on prior experience, likely changes in
performance of newer products and the mix and volume of products sold. The provisions are recorded on an accrual basis.

RESTRUCTURING PROVISIONS

The Company defines restructuring expense to include costs directly associated with rightsizing, exit or disposal activities. Estimates of
restructuring charges are based on information available at the time such charges are recorded. In general, management anticipates that
restructuring activities will be completed within a timeframe such that significant changes to the exit plan are not likely. Due to inherent
uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially
estimated.

PENSION OBLIGATIONS

The Company provides for both defined contribution plans and defined benefit plans. A defined contribution plan generally specifies the
periodic amount that the employer must contribute to the plan and how that amount will be allocated to the eligible employees who perform
services during the same period. A defined benefit pension plan is one that contains pension benefit formulas, which generally determine
the amount of pension benefits that each employee will receive for services performed during a specified period of employment.

The amount recognized as a defined benefit liability is the net total of projected benefit obligation (PBO) minus the fair value of plan
assets (if any) (see Note 18).

CONTINGENT LIABILITIES

Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters
that arise in the ordinary course of its business activities with respect to commercial, product liability or other matters (see Note 12). The
Company diligently defends itself in such matters and, in addition, carries insurance coverage to the extent reasonably available against
insurable risks. The Company records liabilities for claims, lawsuits and proceedings, when they are probable and it is possible to
reasonably estimate the cost of such liabilities. Legal costs expected to be incurred in connection with a loss contingency are expensed
as such costs are incurred.

The Company believes, based on currently available information, that the resolution of outstanding matters, other than any antitrust
related matters described in Note 17 after taking into account recorded liabilities and available insurance coverage, should not have a
material effect on the Company’s financial position or results of operations. However, due to the inherent uncertainty associated with such
matters, there can be no assurance that the final outcomes of these matters will not be materially different than currently estimated.

TRANSLATION OF NON-U.S. SUBSIDIARIES

The assets and liabilities of subsidiaries with functional currency other than U.S. dollars are translated into U.S. dollars based on the
current exchange rate prevailing at each balance sheet date and any resulting translation adjustments are included in accumulated other
comprehensive loss. The assets and liabilities of foreign subsidiaries whose local currency is not their functional currency are remeasured
from their local currency to their functional currency and then translated to U.S. dollars. Revenues and expenses are translated into U.S.
dollars using the average exchange rates prevailing for each period presented.

RECEIVABLES AND LIABILITIES IN NON-FUNCTIONAL CURRENCIES

Receivables and liabilities not denominated in functional currencies are converted at year-end exchange rates. Net transaction losses,
reflected in the Consolidated Statements of Income, amounted to $(30) million in 2023, $(25) million in 2022 and $(29) million in 2021,
and are recorded in operating income if they relate to operational receivables and liabilities or are recorded in other non-operating items,
net if they relate to financial receivables and liabilities.

NEW ACCOUNTING STANDARDS

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards
updates (“ASUs”) to the FASB’s Accounting Standards Codification (ASC). The Company considers the applicability and impact of all
ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on
the Company’s consolidated financial statements.

Adoption of New Accounting Standards

In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50), Disclosure of Supplier
Finance Program Obligations, which requires that a buyer in a supplier finance program disclose sufficient information about the program
to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period and
potential magnitude. During the fiscal year of adoption, the information on the key terms of the programs and the balance sheet
presentation of the program obligations, which are annual disclosure requirements, should be disclosed in each interim period. The
amendments in this update should be applied retrospectively to each period in which a balance sheet is presented, except for the
amendment on roll-forward information, which should be applied prospectively.

The Company adopted ASU 2022-04 as of January 1, 2023. The Company has an agreement with an external payment service provider
to facilitate the payments to certain suppliers. The outstanding obligations confirmed towards the external payment service provider are
recorded in Accounts Payable in the Condensed Consolidated Balance Sheet until payment has been effected. The Company has
undertaken to make sure the payment is effected on the original invoice maturity date. The average payment terms during 2023 was 115
days.

The roll-forward of the Company's outstanding obligations confirmed as valid under its supplier finance program for the year ended
December 31, 2023 is as follows (dollars in millions):

December 31, 2023

December 31, 2022

As of

Confirmed obligations outstanding at beginning of the period
Invoices confirmed during the period
Confirmed invoices paid during the period
Confirmed obligations outstanding at end of the period1)
1) Amount of obligations confirmed under the program that remains unpaid by the Company is reported as Accounts Payable in the Consolidated Balance Sheet.

314
1,436
(1,405)
345

n/a
n/a
n/a
314

Accounting Standards Issued But Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures,
which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
The amendments in this update require that a public entity make additional disclosures related to segments if it has them. A public entity
that has a single reportable segment would be required to provide all the disclosures required by the amendments in this update and all
existing segment disclosures in Topic 280.

The amendments in this update are affective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years
beginning after December 15, 2024. Early adoption is permitted. The amendments in this update should be applied retrospectively to all
prior periods presented in the financial statements. The Company is currently assessing the impact that ASU 2023-07 will have on its
financial statements and will adopt the amendments in this update upon the effective date.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, to enhance
the transparency and decision usefulness of income tax disclosures as well as improve the effectiveness of income tax disclosures. The
amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation
and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update also require
that all entities disclose on an annual basis certain detailed information about income taxes paid. The amendments in this update related
to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring (1) consistent
categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.
The amendments allow investors to better assess, in their capital allocation decisions, how an entity’s worldwide operations and related
tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows.

The amendments in this update are affective for annual periods beginning after December 15, 2024. Early adoption is permitted. The
amendments in this update should be applied on a prospective basis. Retrospective application is permitted. The Company is currently
assessing the impact that ASU 2023-09 will have on its financial statements and will adopt the amendments in this update prospectively
upon the effective date.

3. Leases

The Company has operating leases for offices, manufacturing and research buildings, machinery, cars, data processing and other
equipment. The Company’s leases have remaining lease terms of 1-44 years, some of which include options to extend the leases for up
to 25 years, and some of which include options to terminate the leases within one year.

As of December 31, 2023, the Company has no additional material operating leases that have not yet commenced.

The following tables provide information about the Company’s operating leases. The Company has not identified any material finance
leases as of December 31, 2023; therefore, the finance lease components have not been disclosed in the tables below.

2023

2022

2021

54
8
5
(1)
66

50
9
4
(1)
62

44
10
4
(2)
56

Year ended or as of
December 31,

2023

47
70
9.4 years

2022

42
74
9.7 years

3.2%

2.8%

Maturities

40
33
24
19
13
77
206
(31)
175

Lease cost
(Dollars in millions)

Operating lease cost
Short-term lease cost
Variable lease cost
Sublease income
Total lease cost

Other information
(Dollars in millions)

Cash paid for amounts included in the measurement of operating lease liabilities
Right-of-use assets obtained in exchange for new operating lease liabilities
Weighted-average remaining lease term - operating leases
Weighted-average discount rate - operating leases

Maturities of operating lease liabilities (undiscounted cash flows) are as follows:
(Dollars in millions)

2024
2025
2026
2027
2028
Thereafter
Total operating lease payments
Less imputed interest
Total operating lease liabilities

4. Fair Value Measurements

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and short-term debt
approximate their fair value because of the short-term maturity of these instruments.

The Company uses derivative financial instruments, “derivatives”, as part of its debt management to mitigate the market risk that occurs
from its exposure to changes in interest and foreign exchange rates. The Company does not enter into derivatives for trading or other
speculative purposes. The Company’s use of derivatives is in accordance with the strategies contained in the Company’s overall financial
policy. All derivatives are recognized in the consolidated financial statements at fair value. Certain derivatives are from time to time
designated either as fair value hedges or cash flow hedges in line with the hedge accounting criteria. For certain other derivatives hedge
accounting is not applied either because non-hedge accounting treatment creates the same accounting result or the hedge does not meet
the hedge accounting requirements, although entered into applying the same rationale concerning mitigating market risk that occurs from
changes in interest and foreign exchange rates.

The degree of judgment utilized in measuring the fair value of the instruments generally correlates to the level of pricing observability.
Pricing observability is impacted by several factors, including the type of asset or liability, whether the asset or liability has an established
market and the characteristics specific to the transaction. Instruments with readily active quoted prices or for which fair value can be
measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized
in measuring fair value. Conversely, assets rarely traded or not quoted will generally have less, or no, pricing observability and a higher
degree of judgment utilized in measuring fair value.

Under U.S. GAAP, there is a disclosure framework hierarchy associated with the level of pricing observability utilized in measuring assets
and liabilities at fair value. The three broad levels defined by the hierarchy are as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level 2 - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported
date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items
that are fair valued using other financial instruments, the parameters of which can be directly observed.

Level 3 - Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets
and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant
management judgment or estimation.

The Company’s derivatives are all classified as Level 2 of the fair value hierarchy.

The tables below present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as
of December 31, 2023 and December 31, 2022. The carrying value is the same as the fair value as these instruments are recognized in
the consolidated financial statements at fair value. Although the Company is party to close-out netting agreements (ISDA agreements)
with all derivative counterparties, the fair values in the tables below and in the Consolidated Balance Sheets at December 31, 2023 and
December 31, 2022 have been presented on a gross basis. According to the close-out netting agreements, transaction amounts payable
to a counterparty on the same date and in the same currency can be netted. The amounts subject to netting agreements that the Company
choose not to offset are presented below.

DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS

There were no derivatives designated as hedging instruments as of December 31, 2023 and December 31, 2022.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

Derivatives not designated as hedging instruments, relate to economic hedges and are marked to market with all amounts recognized in
the Consolidated Statements of Income. The derivatives not designated as hedging instruments outstanding at December 31, 2023 and
December 31, 2022 were foreign exchange swaps.

For 2023, the Company recognized a gain of $2 million in other non-operating items, net for derivative instruments not designated as
hedging instruments. For 2022, the Company recognized a gain of $2 million. For 2021, the Company recognized a loss of $33 million.
The realized part of the losses referred to above are reported under financing activities in the statement of cash flows. For 2023, 2022
and 2021, the gains and losses recognized as interest expense were immaterial.

DECEMBER 31, 2023

Fair Value Measurements

Derivative asset
(Other current
assets)

Derivative liability
(Other current
liabilities)

Nominal
volume

DECEMBER 31, 2022

Fair Value Measurements

Derivative asset
(Other current
assets)

Derivative liability
(Other current
liabilities)

Nominal
volume

(Dollars in millions)
DERIVATIVES NOT DESIGNATED
AS HEDGING INSTRUMENTS
Foreign exchange swaps, less
than 6 months
TOTAL DERIVATIVES NOT
DESIGNATED AS HEDGING
INSTRUMENTS
1) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $1,895 million.
2) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.
3) Net amount after deducting for offsetting swaps under ISDA agreements is $12 million.
4) Net nominal amount after deducting for offsetting swaps under ISDA agreements is $2,616 million.
5) Net amount after deducting for offsetting swaps under ISDA agreements is $22 million.
6) Net amount after deducting for offsetting swaps under ISDA agreements is $15 million.

1,895 1) $

22 2) $

12 3) $

1,895

2,616 4) $

22 5) $

15 6)

2,616

FAIR VALUE OF DEBT

The fair value of long-term debt is determined either from quoted market prices as provided by participants in the secondary market or
for long-term debt without quoted market prices, estimated using a discounted cash flow method based on the Company’s current
borrowing rates for similar types of financing. The Company has determined that each of these fair value measurements of debt reside
within Level 2 of the fair value hierarchy.

During the first quarter of 2023, the Company issued a five year €500 million Eurobond. These notes were issued as green bonds.

The fair value and carrying value of debt are summarized in the table below (dollars in millions).

LONG-TERM DEBT
Bonds
Loans
TOTAL

SHORT-TERM DEBT
Short-term portion of long-term debt
Overdrafts and other short-term debt
TOTAL
1) Debt as reported in balance sheet.

DECEMBER 31, 2023

DECEMBER 31, 2022

CARRYING
VALUE1)

FAIR
VALUE

CARRYING
VALUE1)

FAIR
VALUE

1,023
301
1,324

297
241
538

1,022
306
1,328

297
241
538

767
287
1,054

533
178
711

735
292
1,027

527
178
705

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A NON-RECURRING BASIS

In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company also has assets and liabilities in its
balance sheet that are measured at fair value on a nonrecurring basis including certain long-lived assets, including equity method
investments, goodwill and other intangible assets, typically as it relates to impairment.

The Company has determined that the fair value measurements included in each of these assets and liabilities rely primarily on Company-
specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs are not
available. The Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy. To
determine the fair value of long-lived assets as of the reporting date, the Company utilizes the projected cash flows expected to be
generated by the long-lived assets, then discounts the future cash flows over the expected life of the long-lived assets.

For the period 2021-2023, the Company did not record any material impairment charges on its long-lived assets for its continuing
operations.

5. Income Taxes

INCOME BEFORE INCOME TAXES (Dollars in millions)
U.S.
Non-U.S.
Total

PROVISION FOR INCOME TAXES (Dollars in millions)
Current

U.S. federal
Non-U.S.
U.S. state and local

Deferred

U.S. federal
Non-U.S.
U.S. state and local

Total income tax expense

2023

2022

2021

29
583
612

2023

19
210
3

(7)
(101)
(1)
123

(3) $

606
603

2022

32
181
5

(20)
(17)
(3)
178

(38)
652
614

2021

8
191
(2)

(8)
(10)
(2)
177

2022

2023

2021

EFFECTIVE INCOME TAX RATE (%)
21.0 %
U.S. federal income tax rate
(0.1)
Non-Deductible Expenses
3.1
Foreign tax rate variances
(2.2)
Tax credits
(0.1)
Change in Valuation Allowances
0.6
Changes in tax reserves
(0.2)
Provision to Return
(0.1)
Earnings of equity investments
4.5
Withholding taxes
(0.5)
State taxes, net of federal benefit
0.6
Tax Audits
Other Deferred Tax Asset Recognized1)
0.0
0.0
U.S. FDII Deduction
1.1
U.S. GILTI Tax
—
Impact of Translation Rates
1.2
Other, net
Effective income tax rate
28.9 %
1) Deferred tax asset recognized in 2023 due to the transfer of certain assets and operations as part of the Company's restructuring activities.

21.0 %
1.8
4.6
(3.9)
11.6
2.7
(0.2)
(0.2)
5.2
0.3
0.0
(26.7)
(0.4)
3.4
1.1
(0.2)
20.1 %

21.0 %
0.5
3.6
(3.5)
(1.7)
(0.2)
0.6
(0.1)
4.0
0.4
1.0
0.0
0.0
3.4
0.2
0.3
29.5 %

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes. On December 31, 2023, the Company had net operating
loss carryforwards (NOL’s) of approximately $513 million, of which approximately $419 million have no expiration date. The remaining
losses expire on various dates through 2037. The Company also has $25 million of U.S. Foreign Tax Credit carry forwards, which begin
to expire in 2026.

Valuation allowances have been established which partially offset the related deferred assets. Such allowances are primarily provided
against NOL’s of companies that have perennially incurred losses, as well as the NOL’s of companies that are start-up operations and
have not established a pattern of profitability. The Company assesses all available evidence, both positive and negative, to determine
the amount of any required valuation allowance. During 2023, the Company recorded valuation allowances against deferred tax assets
of tax losses in certain companies and a partial valuation allowance against the deferred tax asset recognized due to the transfer of
certain assets and operations as part of the Company’s restructuring activities, on the basis of management’s assessment of the amount
of the related deferred tax assets that are not more likely than not to be realized.

The foreign tax rate variance reflects the fact that approximately two-thirds of the Company’s non-U.S. pre-tax income is generated by
business operations located in tax jurisdictions where the tax rate is between 20-30%. The tax rate from quarter to quarter and from year
to year is also impacted by the mix of earnings and tax rates in various jurisdictions compared to the same periods or prior years.

The Company has reserves for income taxes that may become payable in future periods as a result of tax audits. These reserves
represent the Company’s best estimate of the potential liability for tax exposures. Inherent uncertainties exist in estimates of tax exposures
due to changes in tax law, both legislated and concluded through the various jurisdictions’ court systems. The Company files income tax
returns in the United States federal jurisdiction, and various states and non-U.S. jurisdictions.

At any given time, the Company is undergoing tax audits in several tax jurisdictions, covering multiple years. The Company is no longer
subject to income tax examination by the U.S. Federal tax authorities for years prior to 2015. With few exceptions, the Company is no
longer subject to income tax examination by U.S. state or local tax authorities or by non-U.S. tax authorities for years before 2011. The
Company is undergoing tax audits in several non-U.S. jurisdictions and several U.S. state jurisdictions, covering multiple years. As of
December 31, 2023, as a result of those tax examinations, the Company is not aware of any proposed income tax adjustments that would
have a material impact on the Company’s financial statements, however, other audits could result in additional increases or decreases to
the unrecognized tax benefits in some future period or periods. The Company believes that some of these audits will conclude within the
next 12 months and that it is reasonably possible the amount of uncertain income tax positions, including interest, may decrease by $10-
$15 million due to settlement of audits and expiration of statues of limitations.

The Company recognizes interest and potential penalties accrued related to unrecognized tax benefits in tax expense. As of December
31, 2022, the Company recorded $46 million for unrecognized tax benefits, including $11 million of accrued interest and penalties.
During 2023, the Company recorded a net increase of $8 million to income tax reserves for unrecognized tax benefits related to tax
positions taken in prior years. Also, during 2023, the Company recorded a net increase of $7 million to income tax reserves for
unrecognized tax benefits based on tax positions taken in the current year.

The Company had $14 million accrued for the payment of interest and penalties as of December 31, 2023. Of the total unrecognized
tax benefits of $64 million recorded at December 31, 2023, $33 million is classified as current income tax payable, and $31 million is
classified as non-current tax payable included in Other Non-Current Liabilities on the Consolidated Balance Sheets. Substantially all of
these reserves would impact the effective tax rate if released into income.

The following table summarizes the activity related to the Company’s unrecognized tax benefits (dollars in millions):

UNRECOGNIZED TAX BENEFITS
Unrecognized tax benefits at beginning of year

Increases as a result of tax positions taken during a prior
period
Increases as a result of tax positions taken during the current
period
Decreases as a result of tax positions taken during a prior period
Decreases relating to settlements with taxing authorities
Decreases resulting from the lapse of the applicable statute
of limitations
Translation Difference

2023

2022

2021

7
0
0

0
1
83

7
0
(4)

0
(1)
67

5
0
(4)

(1)
(1)
65

Total unrecognized tax benefits at end of year

The tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities were as
follows (dollars in millions).

DEFERRED TAXES

Assets
Provisions
Costs capitalized for tax
Other Deferred Tax Asset1)
Property, plant and equipment
Retirement Plans
Tax receivables, principally NOL’s
Deferred tax assets before allowances
Valuation allowances
Total

2023

December 31,
2022

2021

126
57
160
11
40
133
527
(129)
398

99
43
0
12
42
123
319
(46)
273

136
29
0
0
46
109
320
(59)
261

Liabilities
(6)
Statutory tax allowances
(6)
Distribution taxes
(3)
Other
(15)
Total
Net deferred tax asset
246
1) Deferred tax asset recognized in 2023 due to the transfer of certain assets and operations as part of the Company’s restructuring activities,
and is partially offset by the increased valuation allowances.

0
(3)
(1)
(4)
394

0
(3)
(2)
(5)
268

The following table summarizes the activity related to the Company’s valuation allowances (dollars in millions):

VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS

2023

December 31,
2022

2021

Allowances at beginning of year
Benefits reserved current year
Benefits recognized current year1)
Translation difference
Allowances at end of year
1) Benefits reserved in the current year include the partial reserve against deferred tax assets recognized in 2023 due to the transfer of certain assets and
operations as part of the Company's restructuring activities.

46
81
(2)
4
129

59
14
(27)
0
46

68
5
(9)
(5)
59

6. Receivables

(Dollars in millions)

Receivables
Allowance for credit loss at beginning of year

addition to allowance
Write-off against allowance
Translation difference

Allowance for credit loss at end of year
Total receivables, net of allowance

7. Inventories

(Dollars in millions)

Raw material
Work in progress
Finished products
Inventories
Inventory reserve at beginning of year

Reversal of (addition to) reserve
Translation difference

Inventory reserve at end of year
Total inventories, net of reserve

8. Other Non-Current Assets

(Dollars in millions)

Equity method investments
Deferred tax assets
Income tax receivables
Insurance receivables
Other non-current assets
Total other non-current assets

2023

December 31,
2022

2021

2,206
(10)
(2)
3
(0)
(8)
2,198

1,916
(8)
(4)
2
0
(10)
1,907

1,707
(12)
(0)
4
1
(8)
1,699

2023

December 31,
2022

2021

457
347
296
1,100
(91)
3
(0)
(89)
1,012

445
350
265
1,060
(91)
(6)
5
(91)
969

December 31,

2023

2022

11
433
22
75
66
606

395
283
190
867
(93)
(3)
5
(91)
777

12
289
22
139
40
502

As of December 31, 2023 and 2022, the Company had one equity method investment. The Company owns 49% of Autoliv-Hirotako
Safety Sdn, Bhd (parent and subsidiaries) in Malaysia which it currently does not control, but in which it exercises significant influence
over operations and financial position.

9. Property, Plant and Equipment

(Dollars in millions)

Land and land improvements
Buildings
Machinery and equipment
Construction in progress
Property, plant and equipment
Less accumulated depreciation
Net of depreciation

DEPRECIATION INCLUDED IN
Cost of sales
Selling, general and administrative expenses
Research, development and engineering expenses, net
Total

December 31,

2023

2022

Estimated life

136
1,065
4,545
548
6,294
(4,102)
2,192

125
957
4,156
522
5,760
(3,801)
1,960

n/a to 15
20-40
3-12
n/a

2023

2022

2021

340
12
24
376

329
11
20
360

348
13
23
384

No significant fixed asset impairments related to the Company’s operations were recognized during 2023, 2022 or 2021.

The net book value of machinery and equipment and buildings and land under finance lease contracts recorded at December 31, 2023
and December 31, 2022 were immaterial. The amortization expense related to finance leases is included with depreciation expenses
disclosed in the table above.

10. Goodwill and Intangible Assets

GOODWILL (Dollars in millions)
Carrying amount at beginning of year
Translation differences
Carrying amount at end of year

2023

2022

1,375
2
1,378

1,387
(11)
1,375

Approximately $1.2 billion of the Company’s goodwill is associated with the 1997 merger of Autoliv AB and the Automotive Safety Products
Division of Morton International, Inc. No goodwill impairment charges were recognized during 2023, 2022 or 2021.

AMORTIZABLE INTANGIBLES (Dollars in millions)
Gross carrying amount
Accumulated amortization
Carrying value

2023

2022

391
(384)
7

387
(380)
7

At December 31, 2023, intangible assets subject to amortization mainly relate to acquired technology. No significant impairments of
intangible assets were recognized during 2023, 2022 or 2021.

Amortization expense related to intangible assets was $2 million, $3 million and $10 million in 2023, 2022 and 2021, respectively.
Estimated future amortization expense is immaterial for all future periods.

11. Restructuring

Restructuring provisions are made on a case-by-case basis and primarily include severance costs incurred in connection with employee
reductions and plant consolidations. Restructuring costs other than employee related costs are immaterial for all periods presented and
are included in the table below. The Company expects to finance restructuring programs over the next several years through cash
generated from its ongoing operations or through cash available under its existing credit facilities. The Company does not expect that the
execution of these programs will have an adverse impact on its liquidity position. The changes in the employee-related reserves in the
table below have been charged against Other income (expense), net in the Consolidated Statements of Income. The restructuring reserve
balance is included within Accrued expenses in the Consolidated Balance Sheet.

(Dollars in millions)
Reserve at beginning of the period
Provision - charge
Provision - reversal
Cash payments
Translation difference
Reserve at end of the period

2023

2022

2021

32
212
(1)
(35)
7
213

88
17
(4)
(64)
(5)
32

126
39
(31)
(37)
(8)
88

The restructuring charges in 2023 of $212 million relate to the global structural cost reduction program activities initiated in 2023, primarily
in Europe. Cash payments of $35 million in 2023 mainly relate to restructuring activities in Europe. As of December 31, 2023, the majority
of the restructuring reserve balance is attributed to global structural cost reduction program activities initiated in 2023 in Europe.

The restructuring charges in 2022 of $17 million mainly related to footprint optimization activities in Asia and Europe. Cash payments of
$64 million in 2022 were related to the structural efficiency program initiated in 2020, footprint optimization activities initiated in Europe in
2020 and in Asia in 2022.

The restructuring charges in 2021 of $39 million mainly related to footprint optimization activities primarily in Asia. Reversals mainly
related to the structural efficiency program initiated in 2020. Cash payments in 2021 related to the structural efficiency program initiated
in 2020 and other footprint activities.

12. Product Related Liabilities

Autoliv is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and
such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product
risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further
information, see Note 17.

The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate
costs. Changes in reserve for warranty claims are estimated based on prior experience, likely changes in performance of newer products,
and the mix and volume of the products sold. The changes in reserve are recorded on an accrual basis.

In 2023, the changes in reserve and cash payments mainly related to the Andrews litigation settlement with the reserve partly offset by
reversal of recall related issues. In 2022, the changes in reserve and cash payments mainly related to warranty related issues. In 2021,
the cash payments mainly related to recall related issues, whereof the main part was related to the “Toyota Recall” issue. The reserve
for product related liabilities is included in accrued expenses on the Consolidated Balance Sheet.

A majority of the Company’s recall related issues as of December 31, 2023 are covered by insurance. Insurance receivables are included
within other current and non-current assets on the Consolidated Balance Sheet. As of December 31, 2023, the Company had total
insurance receivables related to recall issues of $81 million ($142 million as of December 31, 2022).

The table below summarizes the change in the balance sheet position of the product related liabilities (dollars in millions).

(Dollars in millions)
Reserve at beginning of the year
Change in reserve
Cash payments
Translation difference
Reserve at end of the year

2023

2022

2021

145
25
(74)
0
96

144
20
(17)
(2)
145

341
49
(245)
(1)
144

13. Debt and Credit Agreements

SHORT-TERM DEBT

As of December 31, 2023 and 2022, total short-term debt was $538 million and $711 million, respectively. As of December 31, 2023,
short-term debt consisted mainly of a $297 million U.S. Private Placement and $215 million commercial paper.

The Company’s subsidiaries have credit agreements, principally in the form of overdraft facilities with several local banks. Total available
short-term facilities as of December 31, 2023, excluding commercial paper facilities as described below, amounted to $393 million, of
which approximately $26 million was utilized. The weighted average interest rate on total short-term debt outstanding at December 31,
2023 and 2022, excluding the short-term portion of long-term debt, was 6% and 5%, respectively.

LONG-TERM DEBT

As of December 31, 2023 and 2022, total long-term debt was $1,324 million and $1,054 million, respectively.

In March 2023, the Company priced and issued 5-year notes for a total of €500 million in the Eurobond market. The notes carry a
coupon of 4.25% and matures in March 2028.

In June 2020, the Company utilized its SEK 3,000 million facility with Swedish Export Credit Corporation which was signed in May 2020.
The SEK 3,000 million facility matures in 2025 and carries a floating interest rate of 3M STIBOR +1.85%.

In 2014, the Company issued long-term debt securities in a U.S. Private Placement. As of December 31, 2023 the total long-term debt
outstanding from the 2014 issuance of $767 million consist of $285 million aggregate principal amount of 12-year senior notes with an
interest rate of 4.24%; and $185 million aggregate principal amount of 15-year senior notes with an interest rate of 4.44%.

CREDIT FACILITIES

In May 2022, the Company entered a $1,100 million senior unsecured revolving credit facility with 11 banks. The facility matures in May
2028 and has a one-year extension option. The Company pays a commitment fee on the undrawn amount. The commitment fee is 35%
of the applicable margin. The applicable margin is related to the Company's credit rating. Given the Company's current rating of BBB
from S&P Global Ratings, the applicable margin is 0.425%. As of December 31, 2023, the facility was not utilized.

The Company has two commercial paper programs: one SEK 7 billion ($701 million) Swedish program and a $1 billion U.S. program. At
December 31, 2023, the total amount outstanding was $215 million.

The Company is not subject to any financial covenants, i.e., performance related restrictions, in any of its significant long-term borrowings
or commitments.

CREDIT RISK

In the Company’s financial operations, credit risk arises in connection with cash deposits with banks and when entering into forward
exchange agreements, swap contracts or other financial instruments. In order to reduce this risk, deposits and financial instruments are
only entered with a limited number of banks up to a calculated risk amount of $200 million per bank for banks rated A- or above and up
to $50 million for banks rated BBB+. The policy of the Company is to work with banks that have a strong credit rating and that participate
in the Company’s financing. In addition to this, deposits of up to an aggregate amount of $2 billion can be placed in U.S. and Swedish
government paper and in certain AAA rated money market funds. As of December 31, 2023, the Company had placed $290 million in
money market funds compared to $237 million as of December 31, 2022.

The table below shows debt maturity as cash flow. For a description of hedging instruments used as part of debt management, see the
Financial Instruments section of Note 2 and Note 4.

DEBT PROFILE

PRINCIPAL AMOUNT BY EXPECTED MATURITY
(dollars in millions)
Bonds
Loans
Commercial papers
Other short-term debt
Total principal amount

2024

2025

2026

2027

2028

297
—
215
26
538

$ — $
301
—
—
301

285
—
—
—
285

$ — $

—
—
$ — $

554
—
—
—
554

Thereafter
185
$
—
—
—
185

Total
long-
term
$ 1,024
301
—
—
$ 1,324

Total
$ 1,321
301
215
26
$ 1,862

14. Shareholders’ Equity

The number of shares outstanding as of December 31, 2023 was 82,642,524. During 2023, the Company has retired 3,671,252 shares.

DIVIDENDS
Cash dividend paid per share
Cash dividend declared per share

OTHER COMPREHENSIVE LOSS / ENDING BALANCE1) (Dollars in millions)
Cumulative translation adjustments
Net pension liability
Total (ending balance)

Deferred taxes on the pension liability
1) The components of Other Comprehensive Loss are net of any related income tax effects.

2023

2022

2021

$
$

2.66
2.66

$
$

2.58
2.58

$
$

1.88
1.88

2023

2022

(466)
(30)
(496)

(492)
(30)
(522)

Cumulative translation effects of $12 million related to liquidated entities during 2023 have been recycled and reported as part of the net
change of cumulative translation adjustment in the Comprehensive income statement and Equity statement.

SHARE REPURCHASE PROGRAM

In November 2021, the Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to
$1.5 billion or up to 17 million shares (whichever comes first) between January 2022 and the end of 2024.

During 2023 the Company repurchased and retired 3,671,252 shares for approximately $352 million. During 2022 the Company
repurchased and retired 1,440,572 shares for approximately $115 million. In total, the Company has repurchased and retired 5,111,824
shares for approximately $467 million under the new stock repurchase program as of December 31, 2023.

15. Supplemental Cash Flow Information

Payments for interest and income taxes were as follows:

(Dollars in millions)
Interest
Income taxes

2023

2022

2021

80
192

64
215

60
207

16. Stock Incentive Plan

The Company maintains the Autoliv, Inc. 1997 Stock Incentive Plan, as amended (the “Stock Incentive Plan”), pursuant to which it has
granted to eligible employees and non-employee directors stock options (SOs), restricted stock units (RSUs) and performance shares
(PSUs).

The fair value of the RSUs and PSUs is calculated as the grant date fair value of the shares expected to be issued. The RSUs and PSUs
granted in 2023, 2022 and 2021 entitle the grantee to receive dividend equivalents in the form of additional RSUs and PSUs subject to
the same vesting conditions as the underlying RSUs and PSUs. For the grants made during 2023, 2022 and 2021, the fair value of a
RSU and a PSU was calculated by using the closing stock price on the grant date and, with respect to a PSU, assumed target
performance. The grant date fair value for the RSUs and PSUs granted during 2023 was approximately $7 million and approximately $8
million, respectively.

Pursuant to the Company’s non-employee director compensation policy effective May 1, 2023, the Company’s non-employee directors
receive an annual RSU grant having a grant date value equal to $145,000 and the Chairman of the Board of Directors also receives an
additional annual RSU grant having a grant date value equal to $85,000. All RSUs granted to non-employee directors vest in one
installment on the earlier of the next AGM or the first anniversary of the grant date, in each case subject to the grantee’s continued service
as a non-employee director on the vesting date with limited exceptions. The RSUs granted to the Company’s non-employee directors
entitle the grantee to receive dividend equivalents in the form of additional RSUs subject to the same vesting conditions as the underlying
RSUs. The grant date fair value for the RSUs granted in 2023 to the Company’s non-employee directors was approximately $2 million.

The source of the shares issued upon vesting of awards is generally from treasury shares. The Stock Incentive Plan provides for the
issuance of up to 9,585,055 common shares for awards. At December 31, 2023, 7,027,781 of these shares have been issued for awards
and 2,557,274 shares remain available for future grants.

In 2015 and earlier, stock awards were granted in the form of SOs and RSUs. All SOs were granted for 10-year terms, had an exercise
price equal to the fair market value per share of common stock at the date of grant, and became exercisable after one year of continued
employment following the grant date. The average grant date fair values of SOs were calculated using the Black-Scholes valuation model.
The Company used historical exercise data for determining the expected life assumption. Expected volatility was based on historical and
implied volatility.

The Company recorded approximately $14 million, $4 million and $10 million stock-based compensation expense related to RSUs and
PSUs for 2023, 2022 and 2021, respectively. The total compensation cost related to non-vested awards not yet recognized is $15 million
for RSUs and PSs and the weighted average period over which this cost is expected to be recognized is approximately 1.9 years. There
are no remaining unrecognized compensation costs associated with SOs.

Information on the number of RSUs, PSUs and SOs related to the Stock Incentive Plan during the period of 2021 to 2023 is as follows.

RSUs
Weighted average fair value at grant date

2023

2022

2021

91.81

87.56

94.01

Outstanding at beginning of year
Granted
Shares issued
Cancelled/Forfeited/Expired
Outstanding at end of year

200,764
96,243
(94,055)
(12,986)
189,966

218,268
85,985
(84,848)
(18,641)
200,764

244,901
81,866
(99,399)
(9,100)
218,268

The aggregate intrinsic value for RSUs outstanding at December 31, 2023 was approximately $21 million.

PSUs
Weighted average fair value at grant date

2023

2022

2021

91.80

88.05

93.90

Outstanding at beginning of year
Change in performance conditions
Granted
Shares issued
Cancelled/Forfeited/Expired
Outstanding at end of year

101,828
18,211
93,962
(26,331)
(75,789)
111,881

179,311
(69,924)
82,914
(64,397)
(26,076)
101,828

158,128
(44,385)
74,427
—
(8,859)
179,311

The PSUs granted include assumptions regarding the ultimate number of shares that will be issued based on the probability of
achievement of the performance conditions. Changes in those assumptions result in changes in the estimated shares to be issued which
is reflected in the “Change in performance conditions” line above.

SOs
Outstanding at December 31, 2020
Exercised
Cancelled/Forfeited/Expired
Outstanding at December 31, 2021
Exercised
Cancelled/Forfeited/Expired
Outstanding at December 31, 2022
Exercised
Cancelled/Forfeited/Expired
Outstanding at December 31, 2023

OPTIONS EXERCISABLE
At December 31, 2021
At December 31, 2022
At December 31, 2023

Number
of options

Weighted
average
exercise
price

90,175
(40,112)
(188)
49,875
(8,614)
(10,150)
31,111
(15,537)
(485)
15,089

49,875
31,111
15,089

68.13
67.49
51.74
68.71
59.28
70.40
70.77
65.12
58.63
76.97

68.71
70.77
76.97

The following summarizes information about SOs outstanding and exercisable at December 31, 2023:

EXERCISE PRICE
$67.29
$80.40

Number
outstanding &
exercisable

Remaining
contract life
(in years)

Weighted
average
exercise
price

3,945
11,144
15,089

0.14 $
1.13
0.87

67.29
80.40
76.97

The total aggregate intrinsic value, which is the difference between the exercise price and $110.19 (closing price per share at December
31, 2023), for all “in the money” SOs, both outstanding and exercisable as of December 31, 2023, was immaterial.

17. Contingent Liabilities

LEGAL PROCEEDINGS

Various claims, lawsuits and proceedings are pending or threatened against the Company or its subsidiaries, covering a range of matters
that arise in the ordinary course of its business activities with respect to commercial, product liability and other matters. Litigation is subject
to many uncertainties, and the outcome of any litigation cannot be assured. After discussions with counsel, and with the exception of
losses resulting from the antitrust proceedings described below, it is the opinion of management that the various legal proceedings and
investigations to which the Company currently is a party will not have a material adverse impact on the consolidated financial position of
Autoliv, but the Company cannot provide assurance that Autoliv will not experience material litigation, product liability or other losses in
the future.

ANTITRUST MATTERS

Authorities in several jurisdictions have conducted broad, and in some cases, long-running investigations of suspected anti-competitive
behavior among parts suppliers in the global automotive vehicle industry. These investigations included, but are not limited to, the products
that the Company sells. In addition to concluded matters, authorities of other countries with significant light vehicle manufacturing or sales
may initiate similar investigations.

PRODUCT WARRANTY, RECALLS AND INTELLECTUAL PROPERTY

Autoliv is exposed to various claims for damages and compensation if its products fail to perform as expected. Such claims can be made,
and result in costs and other losses to the Company, even where the product is eventually found to have functioned properly. Where a
product (actually or allegedly) fails to perform as expected or is defective, the Company may face warranty and recall claims. Where such
(actual or alleged) failure or defect results, or is alleged to result, in bodily injury and/or property damage, the Company may also face
product liability and other claims. There can be no assurance that the Company will not experience material warranty, recall or product
(or other) liability claims or losses in the future, or that the Company will not incur significant costs to defend against such claims. The
Company may be required to participate in a recall involving its products. Each vehicle manufacturer has its own practices regarding
product recalls and other product liability actions relating to its suppliers. As suppliers become more integrally involved in the vehicle
design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for
contribution when faced with recalls and product liability claims. Government safety regulators may also play a role in warranty and recall
practices. Recall decisions regarding the Company’s products may require a significant amount of judgment by us, our customers and
safety regulators and are influenced by a variety of factors. Once a recall has been made, the cost of a recall is also subject to a significant
amount of judgment and discussions between the Company and its customers. A warranty, recall or product-liability claim brought against
the Company in excess of its insurance may have a material adverse effect on the Company’s business. Vehicle manufacturers are also
increasingly requiring their outside suppliers to guarantee or warrant their products and bear the costs of repair and replacement of such
products under new vehicle warranties. A vehicle manufacturer may attempt to hold the Company responsible for some, or all, of the
repair or replacement costs of products when the product supplied did not perform as represented by us or expected by the customer in
either a warranty or a recall situation. Accordingly, the future costs of warranty or recall claims by the customers may be material. However,
the Company believes its established reserves are adequate. Autoliv’s warranty reserves are based upon the Company’s best estimates
of amounts necessary to settle future and existing claims. The Company regularly evaluates the adequacy of these reserves, and adjusts
them when appropriate. However, the final amounts actually due related to these matters could differ materially from the Company’s
recorded estimates.

In addition, as vehicle manufacturers increasingly use global platforms and procedures, quality performance evaluations are also
conducted on a global basis. Any one or more quality, warranty or other recall issue(s) (including those affecting few units and/or having
a small financial impact) may cause a vehicle manufacturer to implement measures such as a temporary or prolonged suspension of new
orders, which may have a material impact on the Company’s results of operations.

The Company maintains a program of insurance, which may include commercial insurance, self-insurance, or a combination of both
approaches, for potential recall and product liability claims in amounts and on terms that it believes are reasonable and prudent based
on our prior claims experience. The Company’s insurance policies generally include coverage of the costs of a recall, although costs
related to replacement parts are generally not covered. In addition, a number of the agreements entered into by the Company, including
the Spin-off Agreements, require Autoliv to indemnify the other parties for certain claims. Autoliv cannot assure that the level of coverage
will be sufficient to cover every possible claim that can arise in our businesses or with respect to other obligations, now or in the future,
or that such coverage always will be available should we, now or in the future, wish to extend, increase or otherwise adjust our insurance.

As noted in Note 12 above, as of December 31, 2023, the Company has accrued $96 million for total product related liabilities. The
majority of the total product liability accrual as of December 31, 2023, relates to recalls, which are generally covered by insurance.
Insurance receivables for such recall related liabilities total $83 million as of December 31, 2023.

Product Liability:

On September 18, 2014, Jamie Andrews filed a wrongful death products liability suit against several Autoliv entities stemming from a fatal
car accident in 2013 where the plaintiff’s husband was fatally injured. The lawsuit alleged that Autoliv should be liable for a designed
driver seatbelt. On December 31, 2021, the United States District Court for the Northern District of Georgia entered a Final Order and
Judgment concluding that Mr. Andrews’s seatbelt was defectively designed and Autoliv was strictly liable for the design. Autoliv was
ordered to pay approximately $118 million in compensatory and punitive damages and pre-judgment interests. On July 18, 2023, the
Company, without admitting any liability, executed settlement agreements and resolved the lawsuit with all interested parties, concluding
the matter. The final amount by which the product liability accrual exceeded the product liability insurance receivable is $8 million and
includes self-insurance retention costs and deductibles.

Autoliv and several of its subsidiaries have been named in a class action lawsuit that has been consolidated in a multi-district litigation
(MDL) Northern District of Georgia. The plaintiffs in the MDL (the "ARC Inflator Class Action") generally allege that the defendants have
violated various state competition, warranty, and trade practice laws relating to ARC inflators included in airbag modules that Autoliv or
its subsidiaries allegedly supplied after Autoliv acquired certain Delphi assets (the "Delphi Acquisition") in December 2009. The Company
denies these allegations. Autoliv is not aware of any performance issues regarding ARC inflators included with its airbags at the directions
of its customers that it shipped following the Delphi Acquisition. The proceedings remain ongoing. The Company has determined pursuant
to ASC 450 that a loss is reasonably possible with respect to the ARC Inflator Class Action. However, the Company continues to evaluate
this matter, no accrual has been made, and no estimated range of potential loss can be determined at this time. The Company cannot
predict the ultimate outcome of the ARC Inflator Class Action.

On September 5, 2023, the National Highway Traffic Safety Administration (the “NHTSA”) issued an initial decision to recall approximately
52 million frontal driver and passenger airbag inflators manufactured by ARC and Delphi Automotive Systems because the NHTSA
determined that the airbag inflators contain a safety defect resulting in field ruptures. Some of the ARC inflators included in the airbag
modules that Autoliv or its subsidiaries supplied after the Delphi Acquisition were included in such initial decision. The NHTSA has yet to
release its final decision. If NHTSA final decision results in a recall, it is anticipated that such decision will be challenged in US federal
court. The Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to the NHTSA ARC recall.
However, the Company continues to evaluate this matter, no accrual has been made, and no estimated range of potential loss can be
determined at this time. The Company cannot predict the ultimate outcome of the NHTSA ARC recall.

Specific Recalls:

In the fourth quarter of 2020, the Company was made aware of a potential recall by American Honda Motor Co. and the recall of
approximately 449,000 vehicles relating to the malfunction of front seat belt buckles was announced on March 9, 2023 (the “Honda Buckle
Recall”). The Company determined pursuant to ASC 450 that a loss with respect to the Honda Buckle Recall is probable and accrued an
amount that is reflected in the total product liability accrual in the fourth quarter of 2020, increased the accrual in the fourth quarter of
2021, and reduced the accrual in the fourth quarter of 2023 based on vehicle repair cost data. Following the accrual reduction in the
fourth quarter of 2023, the amount by which the product liability accrual exceeds the product liability insurance receivable with respect to
the Honda Buckle Recall is $10 million and includes self-insurance retention costs and deductibles. The ultimate loss to the Company of
the Honda Buckle Recall could be materially different from the amount the Company has accrued.

Volvo Car USA, LLC (together with its affiliates, “Volvo”) has recalled approximately 762,000 vehicles relating to the malfunction of
inflators produced by ZF (the “ZF Inflator Recall”). The recalled ZF inflators were included in airbag modules supplied by the Company
only to Volvo. The recall commenced in November 2020 and later expanded in September 2021. Because the Company’s airbags were
involved with the ZF Inflator Recall, the Company has determined pursuant to ASC 450 that a loss is reasonably possible with respect to
the ZF Inflator Recall. The Company continues to evaluate this matter with Volvo and ZF and no accrual has been made. Although the
Company currently estimates a range of $0 to $43 million with respect to this potential loss, the Company anticipates that any losses net
of insurance claims and claims against ZF will be immaterial.

Intellectual property:

In its products, the Company utilizes technologies which may be subject to intellectual property rights of third parties. While the Company
does seek to procure the necessary rights to utilize intellectual property rights associated with its products, it may fail to do so. Where the
Company so fails, the Company may be exposed to material claims from the owners of such rights. Where the Company has sold products
which infringe upon such rights, its customers may be entitled to be indemnified by the Company for the claims they suffer as a result
thereof. Such claims could be material.

The table in Note 12 above summarizes the change in the balance sheet position of the product related liabilities for the fiscal year ended
December 31, 2023.

18. Retirement Plans

DEFINED CONTRIBUTION PLANS

Many of the Company’s employees are covered by government sponsored pension and welfare programs. Under the terms of these
programs, the Company makes periodic payments to various government agencies. In addition, in some countries the Company sponsors
or participates in certain non-governmental defined contribution plans. Contributions to defined contribution plans for the years ended
December 31, 2023, 2022 and 2021 were $26 million, $24 million, and $18 million, respectively.

MULTIEMPLOYER PLANS

The Company participates in a multiemployer plan in Sweden. This ITP-2 plan is funded through Alecta and covers employees born
before 1979, for whom it provides a final pay pension benefit based on all service with participating employers. The Company must pay
for wage increases in excess of inflation on service earned with previous employers. The plan also provides disability and family benefits
and is more than 100% funded. The Company´s contributions to this multiemployer plan for the years ended December 31, 2023, 2022
and 2021 were $4 million, $6 million and $5 million, respectively.

DEFINED BENEFIT PLANS

The Company has a number of defined benefit pension plans, both contributory and non-contributory, in the U.S., France, Germany,
India, Japan, Mexico, Philippines, Poland, Sweden, South Korea, Thailand, Turkey and the United Kingdom. There are funded as well as
unfunded plan arrangements which provide retirement benefits to both U.S. and non-U.S. participants.

The main plan is the U.S. plan for which the benefits are based on an average of the employee’s earnings and on credited service earned
through December 31, 2021. In a prior year, the Company closed participation in the Autoliv ASP, Inc. Pension Plan to exclude those
employees hired after December 31, 2003. Within the U.S. there is also a non-qualified restoration plan that provides benefits to
employees whose benefits in the primary U.S. plan are restricted by limitations on the compensation that can be considered in calculating
their benefits. Effective December 31, 2021, the Autoliv ASP, Inc. Pension Plan is frozen to new accruals and, by extension, the non-
qualified restoration plan is also frozen. Settlement accounting has been recognized each quarter in 2023 and 2022 for the U.S. plans
because the lump-sum payments made to plan participants during 2023 and 2022 exceeded the sum of service cost and interest cost.

For the Company’s non-U.S. defined benefit plans the most significant individual plan is in the U.K. The Company has closed participation
in the U.K. defined benefit plan to exclude all employees hired after April 30, 2003 with few members currently accruing benefits.

CHANGES IN BENEFIT OBLIGATIONS AND PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31

(Dollars in millions)
Benefit obligation at beginning of year
Service cost
Interest cost
Actuarial (gain) loss due to:
Change in discount rate
Experience
Other assumption changes

Benefits paid
Plan settlements/curtailments
Plan amendments
Other
Translation difference
Benefit obligation at end of year

Fair value of plan assets at beginning of year
Actual return on plan assets
Company contributions
Benefits paid
Plan settlements
Translation difference
Fair value of plan assets at end of year
Pension liability recognized in the balance sheet

U.S.

Non-U.S.

2023

2022

2023

2022

227
—
12

5
2
2
(4)
(17)
—
—
—
226

201
24
0
(4)
(17)
—
204
21

$
$

381
—
12

(111)
15
—
(4)
(66)
—
—
—
227

343
(75)
3
(4)
(66)
—
201
26

$
$

192
9
10

(22)
(1)
24
(10)
(2)
1
0
7
208

63
3
11
(10)
(0)
3
70
138

$
$

260
9
6

(65)
4
18
(20)
(3)
2
—
(19)
192

101
(27)
19
(20)
—
(10)
63
129

$
$

The U.S. plan provides that benefits may be paid in the form of a lump sum, if so elected by the participant. In order to more accurately
reflect a market-derived pension obligation, Autoliv adjusts the assumed lump sum interest rate to reflect market conditions as of each
December 31. This methodology is consistent with the approach required under the Pension Protection Act of 2006, which provides the
rules for determining minimum funding requirements in the U.S.

COMPONENTS OF NET PERIODIC BENEFIT COST ASSOCIATED WITH THE DEFINED BENEFIT RETIREMENT PLANS FOR THE
YEARS ENDED DECEMBER 31

(Dollars in millions)
Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Settlement loss
Net periodic benefit cost

(Dollars in millions)
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service costs
Amortization of actuarial loss
Settlement/curtailment (gain) loss
Net periodic benefit cost

2023

U.S.
2022

2021

— $
12
(10)
0
1
3

— $
12
(14)
0
6
4

2023

Non-U.S.
2022

2021

9
10
(3)
1
1
0
18

9
6
(2)
1
1
(8)
7

8
10
(18)
2
5
7

12
5
(2)
0
1
0
17

The service cost and amortization of prior service cost components are reported among other employee compensation costs in the
Consolidated Statements of Income. The remaining components, interest cost, expected returns on plan assets and amortization of
actuarial loss, are reported as Other non-operating items, net in the Consolidated Statements of Income.

Amortization of the net actuarial loss from accumulated other comprehensive income is made over the estimated average remaining
lifetime of the plan participants (27 to 31 years) for the U.S. plans, and the estimated average remaining service lives or lifetimes of the
plan participants for the non-U.S. plans, the periods varying over a wide range between the different countries depending on the age of
the population concerned.

COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX AS OF DECEMBER 31

(Dollars in millions)
Net actuarial loss
Prior service cost
Total accumulated other comprehensive loss
recognized in the balance sheet

U.S.

Non-U.S.

2023

2022

2023

2022

15
—

22
—

19
4

18
4

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BEFORE TAX FOR THE YEARS ENDED DECEMBER 31

(Dollars in millions)
Total retirement benefit recognized in accumulated
other comprehensive loss at beginning of year
Net actuarial loss (gain)
Amortization or curtailment recognition of prior service credit
(cost)
Amortization or settlement recognition of net gain (loss)
Translation difference
Total retirement benefit recognized in accumulated
other comprehensive loss at end of year

U.S.

Non-U.S.

2023

2022

2023

2022

22
(6)

—
(1)
—

35
(7)

—
(6)
—

22
2

(1)
(1)
2

33
(15)

1
5
(2)

The accumulated benefit obligation for the U.S. non-contributory defined benefit pension plans was $226 million and $227 million at
December 31, 2023 and 2022, respectively. The accumulated benefit obligation for the non-U.S. defined benefit pension plans was $173
million and $154 million at December 31, 2023 and 2022, respectively.

Pension plans for which the accumulated benefit obligation (ABO) is notably in excess of the plan assets reside in the following countries:
U.S., Mexico, France, Germany, Japan, South Korea, Sweden, Thailand and Turkey.

PENSION PLANS FOR WHICH ABO EXCEEDS THE FAIR VALUE OF PLAN ASSETS AS OF DECEMBER 31

(Dollars in millions)
Projected Benefit Obligation (PBO)
Accumulated Benefit Obligation (ABO)
Fair value of plan assets

U.S.

Non-U.S.

2023

2022

2023

2022

226 $
226
204

227
227
201

145 $
116
2

134
102
2

The Company, in consultation with its actuarial advisors, determines certain key assumptions to be used in calculating the projected
benefit obligation and annual net periodic benefit cost.

ASSUMPTIONS USED TO DETERMINE THE BENEFIT OBLIGATIONS AS OF DECEMBER 31

(% Weighted average / % Weighted average range)
Discount rate
Rate of increases in compensation level
1) The % weighted average ranges in the tables above represent significant non-U.S. plans only.

5.13
n/a

2023

2022

5.41
n/a

U.S.

Non-U.S.1)

2023

1.00-10.25
2.25-5.00

2022
0.75-9.75
2.10-5.00

ASSUMPTIONS USED TO DETERMINE THE NET PERIODIC BENEFIT COST FOR THE YEARS ENDED DECEMBER 31

(% Weighted average)
Discount rate
Rate of increases in compensation level
Expected long-term rate of return on assets

2023

5.41
n/a
5.05

(% Weighted average range)
Discount rate
Rate of increases in compensation level
Expected long-term rate of return on assets
1) The % weighted average ranges in the tables above represent significant non-U.S. plans only.

2023
0.75-9.75
2.10-5.00
4.20-4.80

U.S.
2022

2.77
n/a
5.05

Non-U.S.1)
2022
0.25-8.00
1.80-5.00
1.70-2.20

2021

2.37
2.65
5.05

2021
0.25-7.25
1.80-5.00
1.40-2.25

The discount rate for the U.S. plans has been set based on the rates of return on high-quality fixed-income investments currently available
at the measurement date and expected to be available during the period the benefits will be paid. The expected timing of cash flows from
the plan has also been considered in selecting the discount rate. In particular, the yields on bonds rated AA or better on the measurement
date have been used to set the discount rate. The discount rate for the U.K. plan has been set based on the weighted average yields on
long-term high-grade corporate bonds and is determined by reference to financial markets on the measurement date.

The expected rate of increase in compensation levels and long-term rate of return on plan assets are determined based on a number of
factors and must take into account long-term expectations and reflect the financial environment in the respective local market. The
expected return on assets for the U.S. and U.K. plans are based on the fair value of the assets as of December 31.

The level of equity exposure is currently targeted at approximately 32% for the primary U.S. plan. The investment objective is to provide
an attractive risk-adjusted return that will ensure the payment of benefits while protecting against the risk of substantial investment losses.
Correlations among the asset classes are used to identify an asset mix that Autoliv believes will provide the most attractive returns. Long-
term return forecasts for each asset class using historical data and other qualitative considerations to adjust for projected economic
forecasts are used to set the expected rate of return for the entire portfolio. The Company has assumed a long-term rate of return on the
U.S. plan assets of 5.05% for calculating the 2023 expense.

The Company has assumed a long-term rate of return on the non-U.S. plan assets in a range of 4.20-4.80% for 2023. The closed U.K.
plan, which has a targeted allocation of almost 100% debt instruments, accounts for approximately 73% of the total non-U.S. plan assets.

Autoliv made contributions to the U.S. plans during 2023 and 2022 amounting to $0 million and $3 million, respectively. Contributions to
the U.K plan during 2023 and 2022 amounted to $2 million and $2 million, respectively. The Company expects to contribute $1 million to
its U.S. pension plans in 2024 and is currently projecting a yearly funding at the same level in the years thereafter. For the U.K. pension
plan, which is the most significant non-U.S. plan, the Company expects to contribute $2 million in 2024 and in the years thereafter.

FAIR VALUE OF TOTAL PLAN ASSETS FOR THE YEARS ENDED DECEMBER 31

ASSETS CATEGORY (% Weighted average)
Equity securities %
Debt instruments %
Other assets %
Total %

U.S.
Target
allocation
32
68
—
100

U.S.

Non-U.S.

2023

2022

2023

2022

31
68
1
100

23
76
1
100

0
64
36
100

0
60
40
100

The following table summarizes the fair value of the Company’s U.S. and non-U.S. defined benefit pension plan assets:

(Dollars in millions)
Assets
Non-U.S. Bonds
Government
Corporate
Insurance Contracts

Other Investments
Assets at fair value Level 2
Investments measured at net asset value
(NAV):

Common collective trusts

Total

Fair value measurement at December 31,

2023

2022

24
21
17
10
71

203
274

15
23
14
11
63

201
264

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value
measurement. Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not
been classified in the fair value hierarchy. Plan assets not measured using the NAV are classified as Level 2 in the table above. Plan
assets measured using the NAV mainly relate to the U.S. defined benefit pension plans and are separately disclosed as Common
collective trusts below the Level 2 assets in the table above.

The estimated future benefit payments for the pension benefits reflect expected future service, as appropriate. The amount of benefit
payments in a given year may vary from the projected amount, especially for the U.S. plan since historically this plan pays the majority of
benefits as a lump sum, where the lump sum amounts vary with market interest rates.

PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions)
2024
2025
2026
2027
2028
Years 2029-2033

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

U.S.

Non-U.S.

14
17
20
19
21
91

17
12
12
14
14
84

The Company currently provides postretirement health care and life insurance benefits to a limited group of U.S. retirees.

In general, the terms of the plans provide that U.S. employees who retire after attaining age 55, with 15 years of service (5 years before
December 31, 2006), are reimbursed for qualified medical expenses up to a maximum annual amount. Spouses for certain retirees are
also eligible for reimbursement under the plan. Life insurance coverage is available for those who elect coverage under the retiree health
plan. During 2014, the plan was amended to move from a self-insured model where employees were charged an estimated premium
based on anticipated plan expenses for continued coverage, to a plan where retirees are provided a fixed contribution to a Health
Retirement Account (HRA). Retirees can use the HRA funds to purchase insurance through a private exchange. Employees hired on or
after January 1, 2004 are not eligible to participate in the plan.

As of December 31, 2023 and 2022, the benefit obligation for postretirement benefit plans other than pensions were $13 million and $13
million, respectively. The liability for postretirement benefits other than pensions is classified as other non-current liabilities in the balance
sheet. The components of the net periodic benefit costs associated with these plans were immaterial for the years 2023, 2022 and 2021.

The average discount rate used to determine the U.S. postretirement benefit obligation was 5.16% in 2023 and 5.39% in 2022. The
average discount rate used in determining the postretirement benefit cost was 5.39% in 2023, 2.91% in 2022 and 2.60% in 2021.

The accumulated other comprehensive income before tax associated with the postretirement benefit plans other than pensions
recognized in the balance sheet as of December 31, 2023 and 2022 were $6 million and $7 million, respectively. The components of the
accumulated other comprehensive income were immaterial for the years 2023 and 2022.

The estimated future benefit payments for the postretirement benefits, which reflect expected future service as appropriate, are expected
to be immaterial for all the future years.

19. Segment Information

The Company has one operating segment which includes Autoliv’s airbag and seatbelt products and components. The operating results
of the operating segment are regularly reviewed by the Company’s chief operating decision maker to assess the performance of the
operating segment and make decisions about resources to be allocated to the operating segment.

The Company’s customers consist of all major European, U.S. and Asian automobile manufacturers. Sales to individual customers
representing 10% or more of net sales were:

In 2023: Renault 10% (including Nissan and Mitsubishi) and Stellantis 10%.

In 2022: Renault 11% (including Nissan and Mitsubishi), Stellantis 11% and VW 10%.

In 2021: Renault 13% (including Nissan and Mitsubishi), Stellantis 11% and VW 10%.

NET SALES BY REGION (Dollars in millions)
China
Asia, excl. China
Americas
Europe
Total

2023

2022

2021

2,105
1,968
3,526
2,877
10,475

1,883
1,638
2,967
2,355
8,842

1,766
1,641
2,535
2,289
8,230

The Company has attributed net sales to the geographic area based on the location of the entity selling the final product.

External sales in the U.S. amounted to $2,342 million, $2,029 million and $1,724 million in 2023, 2022 and 2021, respectively. Of the
external sales, exports from the U.S. to other regions amounted to approximately $343 million, $298 million and $280 million in 2023,
2022 and 2021, respectively.

NET SALES BY PRODUCT (Dollars in millions)
Airbag, Steering Wheels and Other1)
Seatbelt Products1)
Total net sales

1) Including Corporate and other sales.

LONG-LIVED ASSETS (Dollars in millions)
China
Asia, excl China
Americas
Europe
Total

2023

2022

2021

7,055
3,420
10,475

5,807
3,035
8,842

2023

2022

592
408
570
797
2,367

5,380
2,850
8,230

541
315
511
752
2,119

Long -lived assets in the table above consists of Property, Plant and Equipment and Operating Lease right-of-use asset. Long-lived assets
in the U.S. amounted to $261 million and $257 million for 2023 and 2022, respectively.

20. Earnings Per Share

The computation of basic and diluted earnings per share were as follows (dollars and shares in millions):

Numerator:
Basic and diluted:

Net income attributable to common shareholders

Denominator:

Basic weighted average common stock
Added: Weighted average stock options/share awards
Diluted weighted average common stock

Net earnings per share - basic
Net earnings per share - diluted

2023

2022

2021

$
$

488

423

85.0
0.2
85.2

5.74
5.72

$
$

87.1
0.2
87.2

4.86
4.85

$
$

435

87.5
0.2
87.7

4.97
4.96

Anti-dilutive shares outstanding for the years ended December 31, 2023, 2022 and 2021 were immaterial.

21. Subsequent Events

There were no reportable events subsequent to December 31, 2023.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

There have been no changes to and no disagreements with our independent auditors regarding accounting or financial disclosure matters
in our two most recent fiscal years.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

An evaluation has been carried out by the Company’s management, under the supervision and with the participation of the Company’s
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and
procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer
and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are
effective.

Internal Control over Financial Reporting

(a) Management’s Annual Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting.

Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or
under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of
directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those
policies and procedures that:

•

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the Company;

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; and

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any
evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of Autoliv’s internal control over financial reporting as of December 31, 2023. In making this
assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal
Control – Integrated Framework (2013 framework).

Based on our assessment, we believe that, as of December 31, 2023, the Company’s internal control over financial reporting is effective.

(b) Attestation Report of the Registered Public Accounting Firm

Ernst & Young AB has issued an attestation report on the Company’s internal control over financial reporting, which is included herein as
the Report of Independent Registered Public Accounting Firm under Item 8. Financial Statements and Supplementary Data for the year
ended December 31, 2023.

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15-(f)
and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2023 that have materially affected, or are reasonably
likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

On November 6, 2023, Jonas Jademyr, Executive Vice President, Quality and Project Management, adopted a trading plan intended to
satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units
and performance stock units in February 2024. These sales are intended to cover vesting taxes and would occur between February 20,
2024 and February 28, 2024.

On November 6, 2023, Mikael Hagstrom, Vice President, Corporate Controller, adopted a trading plan intended to satisfy Rule 10b5-1(c)
to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock
units in February 2024. These sales are intended to cover vesting taxes and would occur between February 20, 2024 and February 28,
2024.

On November 8, 2023, Christian Swahn, Executive Vice President, Supply Chain Management, adopted a trading plan intended to satisfy
Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and
performance stock units in February 2024. These sales are intended to cover vesting taxes and would occur between February 20, 2024
and February 28, 2024.

On November 10, 2023, Fredrik Westin, Executive Vice President & Chief Financial Officer, adopted a trading plan intended to satisfy
Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and
performance stock units in February 2024 and February 2025. These sales are intended to cover vesting taxes and would occur between
(i) February 20, 2024 and February 28, 2024 and (ii) February 21, 2025 and February 28, 2025.

On November 13, 2023, Mikael Bratt, President & Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to
sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of performance stock units on February 20, 2024.
These sales are intended to cover vesting taxes and would occur between February 20, 2024 and February 28, 2024.

On November 13, 2023, Jordi Lombarte, Executive Vice President and Chief Technology Officer, adopted a trading plan intended to
satisfy Rule 10b5-1(c) to sell 50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units
and performance stock units in February 2024 net of shares withheld for taxes. These sales would occur between February 20, 2024 and
February 28, 2024.

On November 14, 2023, Colin Naughton, President, Autoliv Asia, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell 45%
of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units in
February 2024. These sales are intended to cover vesting taxes and would occur between February 20, 2024 and February 28, 2024.

On November 14, 2023, Magnus Jarlegren, President, Autoliv Europe, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell
50% of his shares of Autoliv, Inc. common stock he would acquire upon the vesting of restricted stock units and performance stock units
in February 2024. These sales are intended to cover vesting taxes and would occur between February 20, 2024 and February 28, 2024.

On November 15, 2023, Anthony Nellis, President & Chief Executive Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to
sell up to 760 of shares of Autoliv, Inc. common stock, which would be acquired upon the exercise of vested stock options expiring in
2025, with any such sales to occur between (i) February 20, 2024 and March 22, 2024, (ii) May 1, 2024 and June 14, 2024, (iii) July 24,
2024 and September 13, 2024, and (iv) October 23, 2024 and December 13, 2024, subject to certain conditions.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by Item 10. regarding executive officers, directors and nominees for election as directors of Autoliv, Autoliv’s
Audit Committee, Autoliv’s code of ethics, and compliance with Section 16(A) of the Securities Exchange Act is incorporated herein by
reference from the information under the captions “Executive Officers of the Company” and “Proposal 1: Election of Directors”,
“Committees of the Board” and “Audit and Risk Committee Report”, “Corporate Governance Guidelines and Codes of Conduct”, and
“Delinquent Section 16(a) Reports”, respectively, in the Company’s 2024 Proxy Statement. Information on Board meeting attendance is
provided under the caption “Board Meetings” in the 2024 Proxy Statement and incorporated herein by reference.

Item 11. Executive Compensation

The information required by Item 11. regarding executive compensation for the year ended December 31, 2023 is included under the
caption “Compensation Discussion and Analysis” in the 2024 Proxy Statement and is incorporated herein by reference. The information
required by the same item regarding Leadership Development and Compensation Committee is included in the sections “Leadership
Development and Compensation Committee Interlocks and Insider Participation” and “Leadership Development and Compensation
Committee Report” in the 2024 Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters

The information required by Item 12. regarding beneficial ownership of Autoliv’s common stock is included under the caption “Security
Ownership of Certain Beneficial Owners and Management” in the 2024 Proxy Statement and is incorporated herein by reference.

Shares Previously Authorized for Issuance Under the 1997 Stock Incentive Plan

The following table provides information as of December 31, 2023, about the common stock that may be issued under the Autoliv, Inc.
Stock Incentive Plan. The Company does not have any equity compensation plans that have not been approved by its stockholders.

(a) Number of
Securities to
be issued upon
exercise of
outstanding options,
warrants and rights

(b) Weighted-
average exercise
price of outstanding
options, warrants
and rights(2)

(c) Number of
securities remaining
available for future
issuance under equity
compensation plans
(excluding securities
reflected in column
(a))(3)

316,936

—
316,936

76.97

—
76.97

2,557,274

—
2,557,274

Plan Category
Equity compensation plans
approved by security
holders (1)
Equity compensation plans
not approved by security
holders
Total

(1)

(2)
(3)

Autoliv, Inc. Stock Incentive Plan, as amended and restated on May 6, 2009, as amended by Amendment No. 1 dated December 17, 2010 and
Amendment No. 2 dated May 8, 2012.
Excludes restricted stock units and performance shares which convert to shares of common stock for no consideration.
All such shares are available for issuance pursuant to grants of full-value stock awards.

Item 13. Certain Relationships and Related Transactions, and Director Independence

Information regarding the Company’s policy and procedures concerning related party transactions is included under the caption “Related
Person Transactions” in the 2024 Proxy Statement and is incorporated herein by reference. Information regarding director independence
can be found under the caption “Board Independence” in the 2024 Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

The information required by Item 9(e) of Schedule 14A regarding principal accounting fees and the information required by Item 14
regarding the pre-approval process of accounting services provided to Autoliv is included under the caption “Proposal 3. Ratification of
Appointment of Independent Registered Public Accounting Firm Appointment” in the 2024 Proxy Statement and is incorporated herein
by reference.

Item 15. Exhibit and Financial Statement Schedules

PART IV

(a)

(1)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

Documents Filed as Part of this Report

Financial Statements

Consolidated Statements of Income – Years ended December 31, 2023, 2022 and 2021;

Consolidated Statements of Comprehensive Income – Years ended December 31, 2023, 2022 and 2021;

Consolidated Balance Sheets – as of December 31, 2023 and 2022;

Consolidated Statements of Cash Flows – Years ended December 31, 2023, 2022 and 2021;

Consolidated Statements of Total Equity – as of December 31, 2023, 2022 and 2021;

Notes to Consolidated Financial Statements; and

(vii)

Reports of Independent Registered Public Accounting Firm (PCAOB Auditor ID No. 1433).

(2)

Financial Statement Schedules

All of the schedules specified under Regulation S-X to be provided by Autoliv have been omitted either because they are not applicable,
they are not required, or the information required is included in the financial statements or notes thereto.

(3)

Exhibits

Exhibit
No.

Description

2.1

3.1

3.2

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

Distribution Agreement, dated June 28, 2018, between Veoneer, Inc. and Autoliv, Inc., incorporated herein by reference to
Exhibit 2.1 to the Current Report on Form 8-K (File No. 001-12933, filing date July 2, 2018).

Autoliv’s Restated Certificate of Incorporation, as amended, incorporated herein by reference to Exhibit 3.1 to the Quarterly
Report on Form 10-Q (File No. 001-12933, filing date April 22, 2015).

Autoliv’s Third Restated By-Laws, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K (File
No. 001-12933, filing date December 18, 2015).

Indenture, dated March 30, 2009, between Autoliv, Inc. and U.S. Bank National Association, as trustee, incorporated herein
by reference to Exhibit 4.1 to Autoliv’s Registration Statement on Form 8-A (File No. 001-12933, filing date March 30, 2009)

Second Supplemental Indenture (including Form of Global Note), dated March 15, 2012, between Autoliv, Inc. and U.S. Bank
National Association, as trustee, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No.
001-12933, filing date March 15, 2012).

Form of Note Purchase and Guaranty Agreement dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the
purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No.
001-12933, filing date April 25, 2014).

Amendment and Waiver 2014 Note Purchase and Guaranty Agreement, dated May 24, 2018 among Autoliv, Inc., Autoliv
ASP, Inc. and the noteholders named therein, incorporated herein by reference to Exhibit 4.4 to the Quarterly Report on Form
10-Q (File No. 001-12933, filing date July 27, 2018).

Agency Agreement dated June 26, 2018 among Autoliv, Inc., Autoliv ASP Inc. and HSBC Bank PLC, incorporated herein by
reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

Description of Registrant´s Securities, incorporated by reference to Exhibit 4.13 to the Annual Report on Form 10-K (File No.
001-12933, filing date February 19, 2021).

Amended and Restated Agency Agreement, dated February 22, 2022, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers
named therein, incorporated herein by reference to Exhibit 4.14 to the Quarterly Report on Form 10-Q (File No. 001-12933,
filing date April 22, 2022).

Base listing Particulars Agreement, dated February 17, 2023, among Autoliv, Inc., Autoliv ASP, Inc. and the dealers named
therein, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-12933, filing date
March 16, 2023).

Amended and Restated Programme Agreement, dated February 17, 2023, among Autoliv, Inc., Autoliv ASP, Inc. and the
dealers named therein, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K (File No. 001-
12933, filing date March 16, 2023).

10.1+

10.2+

10.3+

10.4+

10.5

10.6

10.7

10.8+

10.9+

10.10+

10.11

10.12+

10.13

10.14+

10.15+

10.16

10.17+

10.18+*

10.19+

10.20+

Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, incorporated herein by reference to
Appendix A of the Definitive Proxy Statement of Autoliv, Inc. on Schedule 14A (filing date March 23, 2009).

Amendment No. 1 to the Autoliv, Inc. 1997 Stock Incentive Plan as amended and restated on May 6, 2009, dated December
17, 2010, incorporated herein by reference to Exhibit 10.24 to the Annual Report on Form 10-K (File No. 001-12933, filing
date February 23, 2011).

Amendment No. 2 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated on May 6, 2009, dated May 8,
2012, incorporated herein by reference to Exhibit 10.29 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing
date July 20, 2012).

Amendment No. 3 to the Autoliv, Inc. 1997 Stock Incentive Plan, as amended and restated, dated April 24, 2017, incorporated
herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date April 28, 2017).

Form of Note Purchase and Guaranty Agreement, dated April 23, 2014, among Autoliv ASP, Inc., Autoliv, Inc. and the
purchasers named therein, incorporated herein by reference to Exhibit 4.6 to the Quarterly Report on Form 10-Q (File No.
001-12933, filing date April 25, 2014).

General Terms and Conditions for Swedish Depository Receipts in Autoliv, Inc. representing common shares in Autoliv,
Inc., effective as of May 30, 2018, with Skandinaviska Enskilda Banken AB (publ) serving as custodian, incorporated herein
by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

Tax Matters Agreement, dated June 28, 2018, between Veoneer, Inc. and Autoliv, Inc., incorporated herein by reference to
Exhibit 10.2 to the Current Report on Form 8-K (File No. 001-12933, filing date July 2, 2018).

Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Mikael Bratt, incorporated herein
by reference to Exhibit 10.8 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

Employment Agreement, dated March 21, 2018 and effective as of June 29, 2018, by and between Autoliv, Inc. and Jordi
Lombarte incorporated herein by reference to Exhibit 10.12 to the Quarterly Report on Form 10-Q (File No. 001-12933,
filing date July 27, 2018).

Employment Agreement, effective as of June 29, 2018, by and between Autoliv, Inc. and Anthony J. Nellis, incorporated
herein by reference to Exhibit 10.14 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 27, 2018).

Cooperation Agreement, dated March 1, 2019, between Autoliv, Inc. and Cevian Capital II GP Limited, incorporated herein
by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-12933, filing date March 1, 2019).

Employment Agreement, dated March 18, 2019, between Autoliv, Inc. and Christian Swahn, incorporated herein by
reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25, 2019).

Form of Indemnification Agreement between Autoliv, Inc. and its directors and certain of its executive officers, incorporated
herein by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 25,
2019).

Employment Agreement, dated November 26, 2019 and effective as of March 1, 2020, between Autoliv, Inc. and Fredrik
Westin, incorporated herein by reference to Exhibit 10.56 to the Annual Report on Form 10-K (File No. 001-12933, filing
date February 21, 2020).

Form of Employee performance share units grant agreement (2020) to be used under the Autoliv, Inc 1997 Stock Incentive
Plan, as amended and restated, incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q
(File No. 001-12933, filing date April 24, 2020).

Facility Agreement, dated May 28, 2020, by and among Autoliv AB, as borrower, Autoliv, Inc. and Autoliv ASP, as
guarantors, and AB Svensk Exportkredit, as lender, incorporated herein by reference to Exhibit 10.1 to the Quarterly Report
on Form 10-Q (File No. 001-12933, filing date July 17, 2020).

Employment Agreement, dated June 8, 2020 and effective as of June 15, 2020, by between Autoliv, Inc. and Kevin Fox,
incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July
17, 2020).

Amendment No. 1, effective as of July 1, 2020, to Employment Agreement, effective March 21, 2018, by and between
Autoliv Inc. and Jordi Lombarte, incorporated herein by reference to Exhibit 10.25 to the Annual Report on Form 10-K (File
No. 001-12933, filing date February 16, 2023).

Employment Agreement, effective as of August 17, 2020, by and between Autoliv AB and Mikael Hagström incorporated
herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 23,
2020).

Employment Agreement, dated October 1, 2020 and effective as of November 1, 2020, by and between Autoliv Inc. and
Colin Naughton incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q (File No. 001-12933,
filing date April 23, 2021).

10.21+

10.22+

10.23+

10.24+

10.25+

10.26+

10.27+

10.28

10.29+

10.30+

10.31+

10.32+

10.33+

10.34+

10.35+

10.36+

Amendment No. 2, effective as of March 9, 2021, to Employment Agreement, effective March 21, 2018, by and between
Autoliv Inc. and Jordi Lombarte incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File
No. 001-12933, filing date April 23, 2021).

Form of Employee restricted stock units grant agreement (2021) to be used under the Autoliv, Inc 1997 Stock Incentive
Plan, as amended and restated, incorporated herein by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q
(File No. 001-12933, filing date April 23, 2021).

Form of Employee performance share units grant agreement (2021) to be used the Autoliv, Inc 1997 Stock Incentive Plan,
as amended and restated, incorporated herein by reference to Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No.
001-12933, filing date April 23, 2021).

Amendment No. 1, effective as of April 1, 2021, to Employment Agreement, effective March 18, 2019, by and between
Autoliv Inc. and Christian Swahn incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on Form 10-Q
(File No. 001-12933, filing date April 23, 2021).

Employment Agreement, dated December 14, 2021 and effective as of January 19, 2021, by and between Autoliv Inc. and
Sng Yih incorporated herein by reference to Exhibit 10.46 to the Annual Report on Form 10-K (File No. 001-12933, filing
date February 22, 2022).

Form of Employee restricted stock units grant agreement (2022) to be used under the Autoliv, Inc 1997 Stock Incentive
Plan, as amended and restated, incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q
(File No. 001-12933, filing date April 22, 2022).

Form of Employee performance share units grant agreement (2022) to be used promised under the Autoliv, Inc 1997 Stock
Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form
10-Q (File No. 001-12933, filing date April 22, 2022).

Facilities Agreement, dated May 23, 2022, among Autoliv, Inc., Autoliv ASP, Inc., Citibank, N.A., London Branch, Mizuho
Bank, Ltd., Skandinaviska Enskilda Banken AB (publ), and the other parties and lenders named therein, incorporated
herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 22, 2022).

Autoliv, Inc. Non-employee Director Compensation Policy, effective November 1, 2022 incorporated herein by reference to
Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October 21, 2022).

Employment Agreement, dated December 1, 2022 and effective as of January 15, 2023, by and between Autoliv, Inc. and
Jonas Jademyr, incorporated herein by reference to Exhibit 10.37 to the Annual Report on Form 10-K (File No. 001-12933,
filing date February 16, 2023).

Amendment, dated and effective December 5, 2022, to Employment Agreement, effective as of January 23, 2020, by and
between Autoliv, Inc. and Svante Mogefors, incorporated herein by reference to Exhibit 10.38 to the Annual Report on
Form 10-K (File No. 001-12933, filing date February 16, 2023).

Autoliv, Inc. Non-Employee Director Compensation Policy effective May 1, 2023, incorporated herein by reference to
Exhibit 10.4 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023).

Form of Non-Employee Director Restricted Stock Unit Grant Agreement (2023) to be used under the Autoliv, Inc. 1997
Stock Incentive Plan, as amended and restated, incorporated herein by reference to Exhibit 10.5 to the Quarterly Report on
Form 10-Q (File No. 001-12933, filing date July 21, 2023).

Employment Agreement, dated May 17, 2023, by and between Autoliv, Inc. and Petra Albuschus incorporated herein by
reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023).

Mutual Separation Agreement, dated July 10, 2023, by and between Autoliv, Inc. and Frithjof Oldorff incorporated herein by
reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date July 21, 2023).

Amendment No. 1 to Employment Agreement, dated October 1, 2023, by and between Autoliv, Inc. and Colin Naughton
incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q (File No. 001-12933, filing date October
20, 2023).

10.37+*

Employment Agreement, dated November 21, 2023, by and between Autoliv Switzerland GmbH and Magnus Jarlegren.

21*

23*

31.1*

31.2*

32.1*

Autoliv’s List of Subsidiaries.

Consent of Independent Registered Public Accounting Firm.

Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of
1934, as amended.

Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934,
as amended.

Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.

32.2*

Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.

97.1*

Autoliv, Inc. Compensation Recoupment Policy.

101.INS*

Inline XBRL Instance Document – The instance document does not appear in the Interactive Date File because its XBRL
tags are embedded within the inline XBRL document.

101.SCH*

Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Document.

104*

Cover Page Interactive Data File (embedded within the inline XBRL document).

* Filed herewith.

+ Management contract or compensatory plan.

† Confidential treatment requested as to portions of the exhibit. Confidential materials omitted and filed separately with the Securities and
Exchange Commission.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized, as of February 20, 2024.

AUTOLIV, INC.
(Registrant)

By /s/ Fredrik Westin
Fredrik Westin
Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the registrant and in the capacities indicated, as of February 20, 2024.

Title

Name

Chairman of the Board of Directors

/s/ Jan Carlson
Jan Carlson

Chief Executive Officer and President (Principal Executive Officer)
and Director

/s/ Mikael Bratt
Mikael Bratt

Chief Financial Officer
(Principal Financial and Principal Accounting Officer)

/s/ Fredrik Westin
Fredrik Westin

Director

/s/ Laurie Brlas
Laurie Brlas

/s/ Hasse Johansson
Hasse Johansson

/s/ Leif Johansson
Leif Johansson

/s/ Franz-Josef Kortüm
Franz-Josef Kortüm

/s/ Frédéric Lissalde
Frédéric Lissalde

/s/ Xiaozhi Liu
Xiaozhi Liu

/s/ Gustav Lundgren
Gustav Lundgren

/s/ Martin Lundstedt
Martin Lundstedt

/s/ Thaddeus Senko
Thaddeus Senko

Glossary and Definitions

In this report, the following company or industry specific terms and abbreviations are used:

CAPITAL EMPLOYED

Total equity and net debt (net cash).

CAPITAL EXPENDITURES

Investments in property, plant and equipment.

CPV

Content Per Vehicle, i.e. value of the safety products in a vehicle.

EARNINGS PER SHARE

Net income attributable to controlling interest relative to weighted average number of shares (net of treasury shares) assuming dilution
and basic, respectively.

EBITDA

Earnings before interest, taxes, depreciation, and amortization

GROSS MARGIN

Gross profit relative to sales.

MEDIUM AND LOW INCOME MARKETS

Includes all markets except North America, Western Europe, Japan and South Korea.

HEADCOUNT

Employees plus temporary personnel.

HIGH INCOME MARKETS

Includes North America, Western Europe, Japan and South Korea.

INVENTORY OUTSTANDING IN RELATION TO SALES

Outstanding inventory relative to annualized fourth quarter sales.

LEVERAGE RATIO

Debt per the Policy (Net debt adjusted for pension liabilities) in relation to EBITDA per the Policy (Adjusted EBITDA) (Earnings Before
Interest, Taxes, Depreciation and Amortization, other non-operating items, net, income from equity method investments and capacity
alignments), see Item 7 for a calculation of this non-U.S. GAAP measure.

LVP

Light vehicle production of light motor vehicles with a gross weight of up to 3.5 metric tons.

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NET DEBT

Short and long-term debt including debt-related derivatives less cash and cash equivalents, see Non-U.S. GAAP Performance Measures
in Item 7 for a reconciliation of this non-U.S. GAAP measure.

NUMBER OF EMPLOYEES

Employees with a continuous employment agreement, recalculated to full time equivalent heads.

OEM

Original Equipment Manufacturer referring to customers assembling new vehicles.

OPERATING MARGIN

Operating income relative to sales.

OPERATING WORKING CAPITAL

Current assets excluding cash and cash equivalents less current liabilities excluding short-term debt. Any current derivatives reported in
current assets and current liabilities related to net debt are excluded from operating working capital. See Non-U.S. GAAP Performance
Measures in Item 7 for reconciliation of this non-U.S. GAAP measure.

PAYABLES OUTSTANDING IN RELATION TO SALES

Outstanding payables relative to annualized fourth quarter sales.

RECEIVABLES OUTSTANDING IN RELATION TO SALES

Outstanding receivables relative to annualized fourth quarter sales.

RETURN ON CAPITAL EMPLOYED

Operating income and equity in earnings of affiliates, relative to average capital employed.

RETURN ON TOTAL EQUITY

Net income relative to average total equity.

TRADE WORKING CAPITAL

Outstanding receivables and outstanding inventory less outstanding payables.

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