Financial Report October - December 2005

Higher Margins and Strong Cash Flow

(Stockholm, Feb. 9, 2006) – – – Despite a 5% decline in light vehicle production in Western Europe where Autoliv Inc. (NYSE: ALV and SSE: ALIV.sdb) generates more than 50% of its revenues, the Company improved its operating margin to 9.3% for the quarter ended December 31, 2005, which was better than expected and an improvement from the 8.6% recorded in the corresponding quarter 2004. The favorable comparison to last year is mainly a result of the Company’s restructuring programs. Consolidated sales decreased by 14% to $1,465 million, primarily as a result of fewer reporting days and currency effects, while organic sales declined by 4%. This was a consequence of the negative changes in West European vehicle production, since sales grew organically in all other regions. Operating income declined by 7% to $136 million and income before taxes by 5% to $131 million. However, excluding currency effects the decline in operating income was 2%, while income before taxes was unchanged despite the sales decline. Net income decreased to $70 million and earnings per share to 81 cents mainly as a result of a one-time tax effect from a Jobs Creation Act distribution. Cash flow from operations amounted to $155 million, despite voluntary pension plan contribu¬tions of $30 million. Sales for the first quarter 2006 are expected to decline by 8% due to a 5% negative currency effect and a continued negative vehicle production effect from Western Europe. Despite this sales decline, operating margin is expected to improve compared to the first quarter 2005 and operating income exceed the $129 million recorded in the same quarter 2005. An earnings conference call will be held today at 3.30 p.m. (CET); call (in Europe) +44-207-947-5033 and (in the U.S.) +1-866-432-7186 to listen in or access www.autoliv.com under Financial info