Financial Report April - June 2016

More than 12% total sales growth, meeting margin guidance
(Stockholm, July 22, 2016) – – – For the three-month period ended June 30, 2016,
Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in automotive
safety systems – reported consolidated sales of $2,579 million. Quarterly
organic sales* grew by 7.7%. The operating margin was 8.2% and the adjusted
operating margin* was 8.6% (for non-U.S. GAAP measures see enclosed
reconciliation tables).

The expectation at the beginning of the quarter was for organic sales growth of
“around 10%” and an adjusted operating margin of “around 8.5%”.

For the third quarter of 2016, the Company expects organic sales to increase by
around 6% and an adjusted operating margin of around 7.5%. The expectation for
the full year is for organic sales growth of around 7% and an adjusted operating
margin of more than 8.5%. The margin revisions are mainly related to costs for
stronger than expected order intake. (See the “Outlook” section on the next page
for further discussion of organic sales and adjusted operating margin, which are
forward-looking non-U.S. GAAP measures).

Key Figures
For Key Figures summary table, please refer to attached file below.

Comments from Jan Carlson, Chairman, President & CEO
"The transformation of Autoliv continues and in the first six months of 2016 we
saw continued strong order intake, which is likely to continue. This is a
positive development for our future growth and our current long-term outlook now
shows that we should surpass our end of decade sales target of 12 billion US
dollars.

As preparation for the delivery of our products begins two to three years before
start of production and as future growth is accelerating, we have added close to
400 engineering resources during the second quarter. In order to be able to
capture the future growth opportunities and maintain our focus on “quality first
in everything we do”, we are in addition planning to add more than 1,000
engineering resources in the next twelve months.

Besides the strong developments in passive safety we also saw several positive
developments in our electronics business. We secured important customer wins,
Autoliv-Nissin Brake Systems had a solid start in its first quarter of
operations and in active safety we grew 30% organically.

I am pleased that we are able to capture significant future business and balance
further investments for growth with healthy full year operating margins within
our long-term target range of 8-9%, while also delivering on our quarterly
margin guidance despite slightly lower than expected organic growth, mainly from
a lower global light vehicle production.
During the quarter, one of our customers experienced a quality related recall
issue with one of our products and we are still investigating the cause. Quality
is our first priority and we are working with our customer to resolve this issue
in the best possible manner.
We continue 2016 with a clear focus on execution. Quality first, the robustness
of our products and focus on operations are more important than ever as we deal
with accelerating future business volumes.”

An earnings conference call will be held at 2:00 p.m. (CET) today, July 22. To
follow the webcast or to obtain the pin code and phone number, please access
www.autoliv.com. The conference slides will be available on our web site as soon
as possible following the publication of this earnings report.