Financial Report July - September 2016

Close to 13% consolidated sales growth, exceeding margin guidance

(Stockholm, October 27, 2016) – – – For the three-month period ended September
30, 2016, Autoliv, Inc. (NYSE: ALV and SSE: ALIV.Sdb) – the worldwide leader in
automotive safety systems – reported consolidated sales of $2,461 million.
Quarterly organic sales* grew by 6.1%. The operating margin was 7.8% and the
adjusted operating margin* was 8.1% (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 6%” and an adjusted operating margin of “around 7.5%”.

For the fourth quarter of 2016, the Company expects organic sales to be flat
compared to the fourth quarter of 2015. The fourth quarter of 2016 includes
approximately 3 less working days compared to 2015, decreasing the year-over
-year organic growth by around 5pp and on an equivalent basis the organic growth
expectation is around 5%. The adjusted operating margin is expected to be more
than 9%. The expectation for the full year is for organic sales growth of around
7% and an adjusted operating margin of more than 8.5%. (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 third quarter developed slightly better than our expectations. Growth was
in line with our guidance and operating margin was higher than expected. I am
particularly pleased with the strong growth in Europe and China.

Regionally, the light vehicle production growth in China was stronger than
expected. Future growth depends to some extent on the continuation of government
incentives currently in place, but we believe in the long term growth prospects
in China. In the U.S. market the monthly vehicle sales figures continue to
indicate a slowdown in the market, while Europe continues to see high vehicle
production levels. Autoliv currently has a healthy product mix in Europe and we
outperformed the European vehicle production growth in the quarter by double
digit levels.

In active safety we are now starting to see the lower growth rates that we have
indicated for some time. This is due to the ramp down of GPS modules and our
internally developed brake control products. After the launch of our new active
safety products in the beginning of 2016, we have won significant new business.
However some of that business has a later expected start of production and
additionally some of the business opportunities have not materialized as
previously anticipated. We therefore expect to reach our end of decade sales
target in Active Safety about one year later than earlier communicated.

We continue to have a positive situation in our passive safety business. The
historically high order intake continued and we are gaining future market share
beyond our previous expectations. We are pleased that we were able to achieve
double digit operating margin in passive safety while deploying additional
engineering and other resources to meet this wave of growth that we expect to
come from 2018 and onwards.

The combined effect of the developments in active and passive safety is further
increasing our confidence that we are on the right path to surpass our $12
billion corporate sales target for the end of the decade. This will allow us to
grow our sustainable market share and further strengthen our technology and
market leadership. We also continue to monitor the overall macro- and industry
situation and we are ready to take necessary actions while focusing on executing
on our growth strategy with a relentless focus on quality.”

An earnings conference call will be held at 2:00 p.m. (CET) today, October 27.
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.