Investor Day I Autoliv 2023

Thank you, Anders, and a warm welcome from my side as well, both to you here in the room and also for all of you those of you that are on our webcast and our phone connections here. So it's a great pleasure to give you an update on our journey towards our midterm targets, and I will start off here with just a brief overview on how we are progressing, and then as Anders laid out here, we will have deep dives throughout the day here from the respective team members here. So let's start here and now and talk about 2023. And as you have seen, we have reconfirmed our guidance for this year across the board here, both when it comes to our opportunity to have a strong organic growth for the year, and here we're talking about 15% on top of LVP growth of around 3%, so an outperformance then of 12% for the year. We have also talked about a range when it comes to our adjusted operating margin, around 8.5% to 9%, with a gradual improvement quarter over quarter throughout the year here, and then an operating cash flow of around $900 million. And this of course is a stepping stone towards our midterm targets, and also here we have reconfirmed that we are, with all the activities we are doing and also the short-term mitigation to offset the headwinds we have been faced over the last couple of years here, heading towards our midterm targets here. So we are reconfirming those as well here today. And here we see the light vehicle production plus the four percentage points that we have talked about up to 2024, and we are looking at adjusted operating margin around 12%, cash conversion 80% or higher, and we have continued focus on a strong balance sheet where we have a leverage ratio of over time of one time. We will of course come back to these different buckets throughout the day here, how we are addressing this. You saw last week our announcement here where we are taking proactive steps towards our midterm targets here and also in line with our strategic roadmaps that we have laid out since a few years back. And what we addressed here in the structural cost reduction, here we are talking about the headcount reduction with the 2,000 positions within our indirect workforce, and you could translate that into the white collar community, and then another 6,000 within the blue collar environment, the indirect workforce. So all in all, 11% of our current workforce when we look at the indirect. We are of course addressing across the board here, so all levels of the organization are in focus here, and we are emphasizing really to identify new structured ways of working here to continue to flatten the organization, making sure that we reduce the non-added value in order to focus on the added value, meaning individuals that are in positions touching the products, the customers, and our deliverables to secure our customer commitments here. We are also focusing on reducing number of sites, and as you saw in the press release here, we are also emphasizing the European footprint here, and the reason for that is basically that that's where we see that we have bigger opportunities as we have the legacy footprint that needs to take into the next level here of efficiency. And we are, we don't leave any stones untouched here as well, so it's really a global approach, but we'll come back to that in the presentation as well. So the path forward is very clear for us. We are holding on to what we have talked about before here in terms of our ambitions to reach our midterm targets. We are holding on to the activities that we have identified as enablers to get there, and we are also taking in further steps here as we need to manage the short-term headwinds that we see in the industry here. We are also seeing great opportunities to continue to develop our business here, and so the future mobility that is our addressable market today provides a lot of interesting opportunities when it comes to widening the scope of addressable markets. And we have talked to you in the past about the adjacent opportunities, here visualized by the two-wheelers, but today we will not focus so much on that. We will have maybe a little bit shorter perspective in time, but that in itself provides a lot of interesting opportunities here. And here we see new ratings and regulations driving content per vehicle. We see the need for new innovations to answer to the requirements coming from the electrification of our industry as well as potential autonomous vehicles here as we see that growing further down the road. But already today, the thinking around autonomous vehicles and the future layouts in the vehicles is already here to launch, extend, and that I'm really excited about to show you here today, both through the presentations from Cecilia and Jordi, but also later on in the tech show here. So despite the headwinds we have seen over the last couple of years, we see that we have continued to strengthen our position, and we have a strong position as we move forward here. And I think it's no news for you here, the different headwinds we have faced as an industry, and of course I would say it was all triggered by the pandemic in early 2020. We have unfortunately faced war in Ukraine also affecting lately here the value chains in '22 and onwards, and of course we also have faced a number of different natural disasters in terms of severe weather, everything from the ice storms in Texas affecting the semiconductor supply to the typhoon in Philippines affecting our own ability when it comes to deliver steering wheels from our plant in the Philippines. And plenty of disruptions then resulting from different phenomena on the supply chain during the last couple of years. And this has translated into component shortage, I would say primarily described through the semiconductor situation, where a number of initiatives have been made to offset this, everything from redesign to working with resourcing and different types of allocations. So not short of headwinds in the last couple of years here. Despite this, we have been able to deliver off our strong order book, and we have outperformed the light vehicle production throughout the whole period here, and we have gained market shares. In 2018 when we started this journey, we were around 40% market share. Last year we reported a 43% market share, so we have gradually moved up, and as we also have said and still valid, is that we're heading towards around 45%. And we also have gone through, and are still working on, price negotiations with our customers. 2022 was very much around raw materials. Today it's the broader scope when it comes to other inflationary consequences, I would say, which we are discussing with our customers here. Of course, this volatile period has been shown in our financial numbers. We see already in 2019 the effects of the volatility coming from the WLTP changes in Europe. We also had social unrest in Mexico here. And then of course in 2020, the pandemic put the whole industry at a standstill in the second quarter of 2020. We saw a strong comeback towards the second half of 2020 and the beginning of 2021, and then we've started to see the consequences of the component shortages, increased volatility, etc. But I think what the good news here is that the team has managed through in a good way, securing the value chain, and we can also see that we have worked hard to offset the negative consequences of this, and we see here that we have been able to protect our industry-leading margin position here, as you can see to the right here. The main consequences of this last couple of years is really a significant lower light vehicle production globally compared to where we were in 2019, and looking forward, and also I would say in 2021 and looking forward, we had very different scenarios to what we actually are looking at today. So I would say here we are looking at the difference between 7 to 10 million vehicles on an annual basis here compared to regular trend. Of course, the inflationary cost pressure is visualized here by the steel curve, but I think the magnitude and the breadth of the inflation impact is seen across the board in all the different categories we are talking about here, but the most challenging, I would say really short-term challenge, is the volatility. And you see here from the graph, and Magnus will come back to this later in his presentation, but the significance of the volatility and the impact it has to run an operation effectively is quite significant here. What it says here is that before the pandemic, we had around 98% pickup rate compared to what the expected volume was, and plus/minus two percentage points deviation. You could see during the 2020-22 here, we went down to 82% of what was requested actually were picked up, but within this we had up to 50% volatility between the short-term periods here. So one week we could get the call on the Thursday saying that next week we don't need anything because our plant is standing still, and the call came from the customer, but the following week when we expect to restock, we need 50% more than what was originally planned. So that tells you a little bit about the volatility seen in the call-offs and which we need to make sure that we could deliver upon effectively. So what have we done during this time period here? Of course, to secure the value chain, making sure that we could deliver to our customers what they expected to get from us, so the customer commitment in being a reliable supplier is critical for us. So all hands on deck from the whole team here to secure the customer's delivery even though the very volatile situation. Of course, our strategic roadmaps here we have held on to, and we have continued to drive digitalization and optimization in order to secure the productivity over time here and utilize the new technology. We have continued with footprint optimization, and here we have worked with optimization both in terms of making it more effective and efficient, but also securing capacity for the future growth that we see in our order books here. And we have worked hard on the capital efficiency program that we talked to you in 2021 at the Capital Markets Day there, and Frederick will also come back and give you some details around that. And of course, the price negotiations has been critical. But we are not stopping here. We are continuing with what we already are doing, but we are also actively continuing to address our cost base, and what I talked about before with the initiatives that we are building into our operations here that was announced last week, so further optimization and further cost reduction in our agenda here. So looking forward, we see here continued potential to growth, and that is because we are working hard to make sure that we have products for the future, and we are seeing also that we are filling our order books to secure the market share that we are gradually growing into. And we see that we have a very strong position with the new EV platforms, and we see that our order intake is representing our market share position. So when we add it all up in the portfolio, we see actually that is slightly stronger than what we have on the total portfolio today, so around the 45% when we look at the order intake here, so significant jump also up from previous year here. We also see that our portfolio, which is I would say very diversified both across the different regions, the different geographies, but also through the different customer bases here, and when we look at the newer OEMs coming up, especially focusing on the EV platforms, we are well represented there, and we can also see that there the portion of newer OEMs representing a higher portion of our order intake last year actually jumped up to 30% from previously 12% of the order intake, so very, very interesting development there, and we are well positioned for a transition which the industry is in. And talking about OEMs and our customers here, we have showed you before where our market share within the respective customers are, and we quite frequently get the question, okay, is there any specific percentage points that is difficult to get to or you can't get to? And I think we can see here that in 2022, we also were seeing significant market share within the top 15 OEMs that we have in our customer portfolio. So you'll see the percentage points here in 2022, and if we look on how this is translating into 2024, you can see here that we are strengthening the position towards the upper end of this scale. So what is all about this? Of course, to deliver on the customer commitments, meaning quality needs to be, we need to deliver superior quality to our customers. We need to make sure that we are a robust supplier when it comes to delivering on our projects leading up to the SOP date of the customer, and then of course in our daily deliveries as I mentioned before, making sure that we fulfill that the order book has all the volumes that has been given, and of course also be price competitive. And I think this shows that we are doing our job in that regard. But with that said, we are not leaning back here. We are really leaning forward here, making sure that we have new innovative products at the cost-effective price from the OEM's perspective and the robustness in our deliveries. So when we look at the sales increases going forward, what are the organic growth I should say? We have talked then about the light vehicle production plus 4% leading up to 2024, and when we look at the first years in that period here, '21 to '22, '22 to '23, we have been above that. And of course here we also have the price increases included, but also if you exclude the price increases, we see here that we have a good traction to over deliver on these targets. And we also see that content in the vehicles, but also our addressable market here, has a great opportunity to grow. And this is just an overview of ratings and regulations coming into play in the next couple of years, and Cecilia will take you through this in greater detail later on. But what it says here is really, which I just would like to highlight here, it is very important that the vulnerable road users that we are addressing and have been emphasizing on since we met at the Capital Markets Day in 2019 is also becoming very visible here from a society point of view. It is for example both in Europe where vulnerable road users and protection for cyclists is on the map, to also higher requirements in China, for example, looking at India also a market that is growing rapidly on the airbag side, for example. And here you know that we have also invested in more capacity to meet this current demand but also future demand. So a lot of emphasis from the Indian government here to make traffic safer in their country. But also in the mature markets, here we see a constant evolution where we need to have more sophisticated products in our vehicles, but also we see additional functionalities coming in. We haven't talked about the four side airbags for example in the last couple of years here as one example, and that is really getting traction. Also the more personalized safety solutions on the seat belt side is one area where we now can consider height, weight, age, gender, for example, in the solutions going forward. So a lot of exciting development in this area. And this in combination with the industry trends where we're talking about connectivity, sustainability, EVs, and autonomous as I mentioned before, driven both by regulations but also as the markets are growing in terms of economic capabilities. And we have talked to you about in the past about how the economic wealth in a country also correlates well with the development of new components. And for us, it's all about making sure that we have the right products for our customers meeting these trends that we see happening here. And you see some examples down here at the bottom end of the slide, but you will see it more in detail later on, so I will not dive into any details here and now. Of course, the margin progression more again towards our midterm targets is critical here, and we are working broadly on that, and a lot of things are happening when it comes to optimizing our capacity across the globe here. And Magnus within his presentation will talk to you more about the different steps that we are making. But as you can see from this slide, we have added capacity in Mexico for our steering wheel operation as we're growing. We have India here as one example with also additional capacity, talking about the airbags I did before. And we are investing in Vietnam for more textiles capacity. But at the same time, we're also optimizing our footprint in Japan, and we're making significant investment there to get closer to the customer. So we are closing one plant and building a new one to have the right type of processes close to the customers for it as one example. And of course we are also working very much with getting from high cost to best cost countries when it comes to, for example, our engineering capacity. So a lot of things going on when it comes to the geographical footprint. Automation, digitalization, as I mentioned before, we are holding on to the strategic roadmaps laid out in 2019, making progress, and you will see later on also here how our coverage or utilizing this new technology inside our own processes here is increasing. And you can see from this chart here also the direct labor efficiency moving in the right direction. Of course, we would like to have seen a little bit higher number, but the volatility I talked about before and the significant lower volumes here is of course putting its mark on this, but we are clearly moving in the right direction. And as we get stability, we expect to see significant leverage coming from that. So in summary, looking at the financials here, adding up the headwinds that we have had and the consequences in our P&L coming from that is well matched with short-term activity as well as our activities on our strategic roadmaps. That is healing that position, and Frederick will also give you the bridge from where we are today to our targets later on. And our focus here is to be a shareholder-friendly company, as you know. And as such, we are focusing a lot on making sure that we can and will return liquidity to our shareholders through the different levers that we have, and that is mainly the direct dividend as well as with buybacks. And as you can see from this chart, we have throughout the last five years here returned more than $1 billion US dollars, and we have then restored our balance sheet so we are well within the range again. And I would say here, great job done in terms of being capital efficient so we can maintain this. So our focus here of course is to maintain a conservative view on our balance sheet because we think that is a very, very important foundation for our future ability to generate shareholder value. So in short, our building blocks are in place for our journey going forward. Of course, a very important foundation of all this is a stable global light vehicle production, and here we have also said in the past at least 85 million vehicles. We are also seeing price compensation as a very important part of the foundation, and here we are making progress, and we made progress last year when it comes to raw material. This year, as I said, is about the broader perspective of inflation here, so labor, freight, energy. So then it's our strategic roadmap initiatives we talk about: footprint, structural initiatives, optimization, digitalization. And with the growth and the outperforming we're expecting to see here, that should take us all the way to the 12% operating margin, but we will come back to the details throughout the day here. And I will end here now, and we'll be getting back here at the Q&A and for the closing remarks later on. So I hope you enjoyed the day here and looking forward to taking any questions later on today here. Thank you.

We haven't yet, but where we indicated is that it should have the same profile as we saw last year. Of course, the negotiations are, I would say, day by day as we have detailed discussions with the customer. I think we alluded to that already last year when we said raw material we need to go down component by component, plant by plant. I walked that through. And of course, when we move into non-raw material inflation, it becomes even more complicated because then you need to break all these different types of costs down to the plants which we are operating in. So of course, that's also taking time. But with that said, our expectation was still that we should have the similar profile as last year. But we haven't given any details exactly on how it looked like because it is a very, that's a digital consequence of the discussion if it's done, let's say, three days before the end of the quarter or two days after the new quarter have started. So of course, you have some challenges in that. But we are making good progress with our customers, and as I said, we are also coming to the customer with really well justified claims, which will go to about the full year indication here.

I think we need to be careful. The 8,000 is not a headcount reduction number. It's a number of people that we are addressing in the footprint activities. So it's not that we are going to reduce the headcount by 8,000. It's the number of people that are affected by the footprint changes that we are doing. So that's an important distinction. And then on the pricing recoveries, we are making good progress. We expect to see the benefits gradually through the year, similar to last year. The patent infringement settlement was a one-off, so we don't expect that to repeat. The carryover from last year's pricing negotiations will continue to benefit us this year. So overall, we are on track to achieve our full year guidance.

I think we let the expert comment down specifically, but let me say that our focus right now is to feel the need from the customer here to have larger airbags but still in an interior where you may have less space, as the electrical vehicles for example have potentially smaller dashboard. You're further away from the dashboard, so therefore you need the bigger airbag but you don't have as much space to put it. So this is really to answer up to those needs. But I mean, it's of course a very effective technical solution that we can see other applications used for, but I'll leave it to you.

I mean, in support of the early on it towards our... I mean, don't talk since we've said done, and I think it's very much in line with the communication we have also in the past where we have talked about footprint structures. We have also talked about making our different processes more effective. We're not only talking about the plants or so, we are talking about the real end-to-end. And in that work now, we have come to a point also where we see that we can start to execute on some of these initiatives, and therefore we wanted to communicate this last week. And it is also in line with what we have said here, that as we have been facing headwinds throughout the last couple of years here, we will do what it takes to get through those headwinds and offset some of these headwinds. Because if we go back to the 2019 Capital Markets Day when we launched these midterm targets, I think we've talked already about the global light vehicle production difference. We have also seen here the inflationary headwinds that we already had actually in '21 on the raw material side, and we said we will manage through this. And then of course it hasn't slowed down with the headwinds over the last couple of years, but we feel very comfortable with what we already are doing and then what we are having in our steering roadmaps, including then the structure changes here to get to the midterm targets. So it's in line with the overall scope and approach we have to the 12% target. So it's not incremental.

No, I think it's the same answer we have had along the way here. I mean, what needs to be in place there is then the framework as we've talked about. It is 2024, and it is 2024. If it's not, it is when it appears, if it's 2025 or 2026. But I think the bottom line is the building blocks I talked about here. I mean, we need to have a stable situation on the call-offs and how the outlook for the need from our customer looks like, and then we need to get to the minimum 85% as we're talking about, and also that we are managing through on the price adjustments here. I think the challenge here is to see how the inflationary scenario plays out, because with the current situation here we have this, let's call it, seasonality effect of the inflation. Because similar as we said last year, we are getting the effects early in the year, we have the negotiations with our customers and are gradually coming in through the year, and then we keep the balance here. And last year, as we have laid out here today, we got basically what we needed for the raw material side. This year we're working on the other. Then the critical point is what happens with inflation, because if we have another significant inflationary year, we will have that, you know, let's call it seasonal effect of the inflation also next year. So I think that is what we need to get the balance. But I think with what we have described here today, we as a management team have no doubt that we have the ability here to get to the targets with what we are doing, both short term in offsetting the headwinds and with our, what we then call, the strategic roadmaps, initiatives around optimization, for example the footprint adjustments and so on.

Yeah, we haven't gone out and quantified it because it's very difficult to verify in such a way that you can put it out as an exact number into the market. But I mean, to say it's a meaningful effect, because it's of course the effect you have in the plant that you need to sit there with capacity when for a week or potentially more before coming back, because you can't adjust it with that short notice. Plus that you need the extra resources once you get back on track. So that of course in itself is... but it's also putting a lot of challenges in terms of material handling from our supplier side. Our supply chain team needs to spend time to manage that so we don't have too much material coming into the plants, etc. We have the capacity tied up capital in inventory side, etc. So of course the instability creates a lot of additional work besides the lack of opportunity to continue to trim your system. So it comes across in many shapes and forms, but it's very difficult to have a public number on it. But it makes a difference for sure.

And then on coming back, as Magnus showed here, it is gradually improving, but we are not close to where it was before the pandemic yet, and we still have component challenges in the industry, I would say.

I think maybe we should give the people on the phone lines a chance to ask questions also. I'm not sure if there are any, but operator, Roberto, do we have any lined up questions from the telephone lines?

It was many questions, you wonder, but let me try to cover the topic as such. And as I said before here, the key components to be successful with the customer is that you have this superior quality, robustness in your deliveries, and your price competitive. And you're of course not more successful than the last quote that you were awarded. So that's of course something we always need to lean forward to make sure that we continue to win. But I think, if you look only until 2024, it's basically already in our order books, so that's not the topic. It's really when you look out in the out years where the awards are being won right now. And also here we showed in our order book fulfillment, so to speak, that we are gaining orders here that supports the market share that we are growing into, which is around 45% as we said. Beyond that, we don't have a market share target at all as such, but of course our intention is to defend that market share. I think the only way to do it is this what I call customer commitments. And from a customer point of view, if they feel and see this, I don't see any problem why they would continue to have somebody on, let's say, 50-60%, as long as they have options, which they have if you don't have 100%. So I think that speaks to the size.

Now we don't give the numbers on the price increases here. I mean, of course in the short term, the price increases have an impact. But when you look further out, the pricing is building in the current inflationed cost increases that we have already, so that's taking care of that and is supportive of normal business, I would say. I think the key drivers for our performance here is without a doubt the market share growth that we are seeing and that we are gradually gaining here. Since 2018 here, we have moved up from 40% to 43% and towards 45%. But the targets exclude the pricing components from inflationary compensation. And that's what I mean: what we showed was that we are on track to be actually slightly better when you exclude the pricing from our sales development. We are slightly better than the four percentage points that we are guiding or targeting.

Yeah, I think last time when we showed this at the CMD, I think we had a small decline in Korea, so in support of Asia today. But I think the point here is when you look at each region, of course you are defending market share. We are the market leader in these regions. Then depending on how it plays out in specific years, you can have these small adjustments, I would say. Overall, it's a very competitive industry, no doubt about it. I think we all know how this industry works and what drives it. I think we have an advantage towards our customers here, and I wouldn't read in terms of being competitive here on the categories I talked about before. So I shouldn't read in too much there. We are the market leader in America here, and I don't see any reason for a change in picture. I don't know, Megan, if you have anything you would like to add to that?

No, I think as I alluded to before, when it comes to what we call the direct workers, the blue collar category in our plants, it is connected to what we talked about here around automation and digitalization. But it's also getting back on track when it comes to the productivity where we have been faced with challenges due to the volatility. In 2022, we had a significant effect, especially in the beginning of the year, of premium freights. And one way to balance this and make it manageable in a more cost-efficient way was to man up in certain areas here in our plants to deal with the volatility internally in the plants. So of course, as the death is coming through, we see an opportunity now to get back on track with that in combination with the strategic steps that we are taking here. And on the indirect workforce, we are also talking about the different way of setting our operations up. I think I mentioned flattening the organization even further, making more emphasis on the structure connected to touching the products and the customers here. So a different way of working, I would say. But also that we are moving forward with our structural opportunities here when it comes to the site setup. And of course, that's one reason why we also put emphasis on Europe here, as we see bigger opportunities there when it comes to the site structures. I hope that answers your question.

I wouldn't dare to have a forecast on that, but it's moving in the right direction. But we also have some setbacks on that because we are not where we were before the pandemic in terms of stability throughout the whole value chain. I think one part we didn't spend so much time on throughout the day here, but it was mentioned on one of the slides, is labor shortage. And we see that particularly pronounced in the Americas and in Eastern Europe. So when we look at our supplier base there, they are fighting hard to secure that, and that also has its effect. But also on the logistics side, we see challenges due to labor shortages in some areas. So we don't have the stability throughout the system yet, and it will probably take some time.

Okay, very good. I think we return to the rule here with the questions. Thank you.

I think, in terms of less safety products in the EVs, I don't see that. I think that we have a very important and critical component going into the vehicle, so I think that's not the first thing you start to reduce. But I think the EV price reduction that is needed or expected, depending on how you see it, will come from certain components that are challenged when you look at the difference in price between EV and ICE vehicle. I think there's more focus on those components than that you would start to demount the features of the vehicle. I think that's really where the focus on cost reduction needs to be. So when it comes down to who will survive, I think what we are showing here is that we are working with many OEMs, if not all relevant OEMs here, and well represented both with the new ones, I should say in this space, as well as the traditional ones with EV platforms. So I think of course the strategy from our point here is to work broadly with many customers and be attractive for all the OEMs here. Thank you.

Yeah, I can respond to that. I mean, what the facts are is that there is a recall done by GM, it's about one million vehicles. We have no involvement in that at all. Then we know that NHTSA is pushing for recalls, and Nissan can't make any recalls, you know, it's the only answer that actually makes the decision to make recalls. The numbers from NHTSA have clearly been disputed by ARC, which is the old company here. And to us, it's very difficult to know at this point in time how this will develop. I mean, of course if there will be a big recall, someone needs to manufacture and sell those replacement parts, replacement inflators, and I think we would be happy to do that if that is the case. But we don't know at this point really how this is going to develop.

No, I'm pretty comfortable to say that what we're doing here is really leveraging on what we already are good at. I mean, as you see, we talk about two-wheeler airbags for example, it's of course built on the knowledge we already have. And with a strong research team, we know a lot about the accident patterns for two-wheelers, etc. So we can really leverage on that. And we have a very small core team around the MSS business, so it is not a meaningful cost connected to those efforts in relation to the overall business of Autoliv here. So really, really cost efficient. And also, once again, what we've said around MSS is that it should be margin accretive to what we do, both short term and long term.

I think, first of all, quality is absolutely critical for us, so we never do anything that jeopardizes the quality here. And as you saw from the plant managers here, and especially from the IBC there, it was a lot of focus on actually making sure that we not only protect quality, we actually improve the quality by having less variability with optimization rather than to have operators doing certain activities there. So it is really to strengthen the quality, and I think that's also a very, very important contributor from the optimization actually to improve the quality. In terms of passing on any benefits from this, I think that discussion is pretty short considering the current situation here where we actually need compensation from the customers for inflationary pressure. So I don't see that in today's environment.

No, I think everything that can improve the quality of the products and the repeatability of the quality is supported by our customers. I don't see any negative commentary around automation from our customers when we talk about that.

Okay, we are running a little bit late. I will allow one last question if there is one.

It is not? All right, very good. We end the Q&A session and it is time for brief concluding remarks from Mikael.

Very good. Thank you all for good questions there. I appreciate the active participation. So let's move to conclusions. And let me just wrap up today's meeting by stating... I probably need some help here. Here we go. By getting back to 2019, the CMD when we launched our midterm targets, and in connection with that CMD I showed a slide you may see up in the right-hand corner there: what was the ambition with Autoliv moving forward? And we said this was our commitment to make sure that we created an even stronger company in the years to come. And I think we are on a good way to achieving this. When it comes to saving more lives, we clearly have moved that forward, and you have seen also in connection with our yearly summary here that we have moved up from the 30,000 lives that we saved in 2018 to 35,000 lives. And we are on this journey towards the 100,000 lives saved per year through our product innovation. We have taken the first steps into new markets, and we talked briefly about the MSS business here, but also in the light vehicle segment we see a lot of interesting opportunity to address new features in the vehicles here. And you have also seen us announcing several cooperation agreements with some of the OEMs for future interior safety products. So I think that's a good sign that we are regarded as a preferred supplier when it comes to new technology and to drive safety forward. We are also on a good way when it comes to optimizing our operations, and you saw from Magnus here that we are taking significant steps in all the different product areas covering many different operational processes when it comes to implement new technology to support our productivity journey. I think also we can say that we have strength in our overall position in the market by continued outperformance, and at least this year you see a significant step up here, and even then excluding price adjustments here in the short term, the LVP plus 4% is expected to be overachieved. We covered many new products, not least for EVs and vulnerable road users, as well as talking about more autonomous vehicles here to have the right products for the future demands from our customers. And we have further integrated sustainability into our business. I think the strength of Autoliv is of course also that our business is sustainability, meaning saving more lives is really in the heart of sustainability. And we have also here signed up to the science-based targets and have ambitious targets for both 2030 and 2040. And we have raised our level of profitability even though we have faced these headwinds over the last couple of years. I think we can show here today and also in the past here that our relative position here and the foundation laid to achieve our midterm targets is there. And of course, these all together should lead to that we are viewed as the preferred supplier moving forward. But that is always in the center of our attention, and as I said, we are not more successful than our last award. So this is nothing we take lightly on and will continue to maintain in focus. So today we have also reconfirmed our midterm target, as you see on the screen here, and I think we have throughout the day here laid out the different drivers to get here. I think when it comes to the growth, we see content and LVP serving as a great foundation for our growth, and we also on top of that have the market share increases towards the around 45 percentage points. We have an adjusted operating target of around 12%, and for that we have the different building blocks in place. And the foundation of course is what we see here in terms of stabilizing the call-offs and LVP growing into the around 85 million vehicles. But more importantly, what we can control, we are controlling and delivering on in support of this journey. Cash conversion is critical for our future shareholder return, and here we are having a lot of focus also on the balance sheet and the capital efficiency as Frederick has laid out during the day today. And of course, continue to make sure that we have a healthy balance sheet in order to cope with challenging times as we just went through, and that has definitely been a strength for us over these last couple of years. So I hope you have got a good overview on where we stand and what we are doing here in our journey to secure the midterm targets. And we have a truly committed team and focused team to make sure that we come through in our ambitions here. So thank you very much. I will hand over to Anders here now to give you some details around the textureware for the rest of the event. So appreciate you all joining, and appreciate to see you here in the room, and thank you all joining on the webcast here. So thank you very much, appreciate it.