<div id="readability-page-1"><div>Fitch Ratings-Barcelona-27 November 2025:Fitch Ratings has affirmed Autoliv, Inc.'s Long-Term Issuer Default Rating (IDR) and senior unsecured debt at 'BBB+'. The Outlook on the IDR is Stable. full list of rating actions is below.The affirmation reflects Autoliv's strong profitability and cash generation despite a pronounced downturn in the automotive industry and ongoing tariff-related uncertainties, underpinned by solid market shares as a safety content provider. Despite these uncertainties, we forecast it wil maintain an EBIT margin of around 10%-11%, supported by an efficient cost base, consistent with the rating. We expect EBITDA net leverage to remain around 1.5x, as the company continues to channel excess cash flow to shareholders.Key Rating DriversResilient Profitability: Autoliv's EBIT margin was 10% in 3Q25, up from 9.3% a year earlier, despite a challenging operating environment. The improvement reflects organic sales growth of around 4% in 3Q25, cost-control measures implemented in recent years, and its solid market share in the growing automotive safety market. These strengths helped limit the impact of tariffs on financials, despite cross-border manufacturing operations in Mexico. Management estimates the overall tariff impact at around 20bp, with remaining costs passed through to customers.Increasing China Contribution: Autoliv has made key R&amp;D investments in China in recent years and established a new joint venture focused on automotive safety electronics. Sales to Chinese original equipment manufacturers (OEM) increased by about 23% in 3Q25 and the company aims to further strengthen its market position. Fitch believes rising sales in China could be dilutive to Autoliv's margins, as safety content per vehicle and profitability are lower in a market dominated by mass market models. However, we expect any margin pressure to be mitigated by ongoing selling general &amp;administrative cost savings, particularly in R&amp;D and, and regulations that are increasing safety content per vehicle.Healthy FCF: We expect Autoliv's free cash flow (FCF) margin to be around 2%-2.5% in 2025, slightly above 2024 levels, despite higher working capital needs from tariff-related increases in receivables. The improvement is mainly driven by lower capex of about 4% of sales compared with 5.7% last year, reflecting reduced investment in Europe and the Americas, which we expect to normalise over the medium term.Robust Capital Structure: We expect Autoliv to maintain a dividend payout of around 30% over our forecast, coupled with share buybacks of EUR300-500 million, in line with management's target. We expect EBITDA net leverage to be around 1.5x, in line with the rating, despite the shareholder friendly policy. The company has a record of managing leverage within stated limits, and we expect this to continue. A more aggressive shareholder returns return policy that raised leverage metrics would pressure the ratings.Established Business Model: Autoliv has a strong record as a Tier 1 auto supplier. The ratings are supported by its market position as the top global supplier of safety systems including airbags and seatbelts. With revenue above USD10 billion, Autoliv is one of the largest Fitch-rated Tier 1 suppliers, with business characteristics that are aligned with investment-grade medians under our rating criteria. Autoliv's global market share is about 45%, roughly double the size of its closest competitor. This reduces the volatility of its margins, and helps with product price negotiations, which is a key industry concern.Supportive Market Trends: Autoliv's business profile benefits from increasing regulatory requirements for safety content in passenger and commercial vehicles. Higher installation rates for airbags, advanced seatbelt products, and complex steering wheels should increase content per vehicle and support revenue growth above annual production volumes. Pedestrian safety, and truck and motorcycle regulations present additional long-term growth opportunities, but are not included in our rating case forecast.Product Recalls Impact Unquantified: The US National Highway Traffic Safety Administration has issued an initial decision to recall of about 52 million airbags as a part of a class action lawsuit, some of which were produced by a subsidiary of Autoliv. The decision is not yet final, and Autoliv has not provisioned for any losses. However, the outcome could have an impact on the ratings once we are able to quantify the possible recall.Peer AnalysisAutoliv has a relatively strong competitive position, focusing on safety technologies that are rising in importance as regulations and technology drive higher growth than light vehicle production levels and provide stability to profitability margins. We forecast Autoliv's EBITDA margin at around 13-14%, which is slightly lower than that of Borgwarner Inc.'s (BBB+/Stable). However, Autoliv has a powertrain agnostic portfolio protecting it against rapid changes in transition trend.Autoliv is more OEM dependent and has lower replacement revenues share than Continental AG (BBB/Positive) and Compagnie Generale des Etablissements Michelin (A/Stable/F1), which provides a buffer against cyclical downturns. Nevertheless, Autoliv's margin volatility has been similar to that of tyre manufacturers, reflecting the strength of its market shares and product portfolio.We forecast Autoliv's EBITDA net leverage will fluctuate around 1.5x, similar to that of Borgwarner and Aptiv Plc (BBB/Rating Watch Negative). We do not expect Autoliv to maintain leverage below this as we assume the issuer will continue returning excess cash to its shareholders and capex should normalise. Autoliv's FCF of around 2-2.5% of revenues is improving but remains weaker compared with peers including BorgWarner and Aptiv.Autoliv's Short-Term IDR of 'F2' reflects its financial flexibility, which we view as consistent with the 'BBB+' Long-Term IDR.Fitch’s Key Rating-Case Assumptions- Production volume assumptions flat for 2025, increasing 2% afterwards- Higher growth in airbag products driven by increasing higher safety content by vehicle- Unadjusted EBIT margins reaching 10% supported by a favourable cost base- Capex normalising at around at 5.5% of revenues for four years- Common dividend payout at 30%- Continued share buybacks in-line with management target of USD300-500 millionRATING SENSITIVITIESFactors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade- EBIT margin sustained below 8%- FCF margin sustained below 1.5%- EBITDA net leverage sustained above 2xFactors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade- EBIT margin sustained above 10%- FCF margin sustained above 2.5%- EBITDA net leverage sustained below 1x and supported by stricter financial policyLiquidity and Debt StructureFitch expects Autoliv's liquidity to remain robust over the medium term. At 3Q25, Autoliv had available cash balances of USD225million, of which Fitch considers USD208 million (about 2% of annual sales) not immediately available for debt repayment.The company has access to USD1.225 billion unsecured committed undrawn revolving credit facilities maturing in 2029 along with two commercial paper programmes including a USD700 million equivalent Swedish programme and a USD1 billion programme, of which USD90 million was utilised.As of 30 September 2025, Autoliv's capital structure consisted primarily of private placements, EUR1 billion Eurobonds issued under its EUR3 billion EMTN programme, and Swedish export facilities totalling SEK2 billion due in 2026. Autoliv's maturities are well spread, and we expect this to continue.Issuer ProfileAutoliv is a Delaware corporation with its principal executive offices in Stockholm, Sweden. It functions as a holding corporation and owns two principal subsidiaries, Autoliv AB and Autoliv ASP, Inc.REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG ConsiderationsThe highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.Autoliv ASP, Inc.----senior unsecured; Long Term Rating; Affirmed; BBB+Autoliv, Inc.; Long Term Issuer Default Rating; Affirmed; BBB+; Rating Outlook Stable; Short Term Issuer Default Rating; Affirmed; F2----senior unsecured; Long Term Rating; Affirmed; BBB+----senior unsecured; Short Term Rating; Affirmed; F2Contacts:Primary Rating AnalystCigdem Cerit,Senior Director+34 93 467 8840cigdem.cerit@fitchratings.comFitch Ratings Ireland Spanish Branch, Sucursal en EspañaAv. Diagonal 601 Planta 4Barcelona 08028Secondary Rating AnalystPatrick Murphy,Senior Analyst+49 69 768076 132patrick.murphy@fitchratings.comCommittee ChairpersonJosef Pospisil, CFAManaging Director+44 20 3530 1287josef.pospisil@fitchratings.comMEDIA RELATIONS: Tahmina Pinnington-Mannan, London, Tel: +44 20 3530 1128, Email: tahmina.pinnington-mannan@thefitchgroup.comAdditional information is available on www.fitchratings.comApplicable ModelNumbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).Corporate Monitoring &amp; Forecasting Model (COMFORT Model), v8.2.0 (1)ADDITIONAL DISCLOSURESDodd-Frank Rating Information Disclosure FormSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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Fitch Ratings has affirmed Autoliv, Inc.'s Long-Term Issuer Default Rating at 'BBB+' with a stable outlook, citing strong profitability and cash generation despite industry downturns and tariff uncertainties. Autoliv's EBIT margin improved to 10% in 3Q25, supported by organic sales growth and cost-control measures. The company is expanding in China, which may affect margins but is mitigated by cost savings. Autoliv maintains a robust capital structure with a dividend payout of 30% and share buybacks, keeping EBITDA net leverage around 1.5x.

Fitch Affirms Autoliv, Inc. at 'BBB+'; Outlook Stable