The Autoliv Share - Outperforming the Market in 2003

The original Autoliv AB stock, which was a Swedish security, was introduced on the Stockholm Stock Exchange on June 9, 1994, at an offering price of SEK90 (just over US $10) for institutions and SEK85.50 for private individuals.
  Following the merger with Morton ASP, the shares in the new Autoliv company - Autoliv, Inc. - were listed on the New York Stock Exchange (NYSE) under the symbol ALV and the Swedish Depository Receipts (SDR) of this U.S. corporation listed on the Stockholm Stock Exchange under the symbol ALIV.
  In Stockholm, the Autoliv security started by outperforming the market, reaching its all-time high at SEK349 on March 6, 1997. After having declined to SEK137.50 on January 4, 2001, the Autoliv SDR recovered to SEK268 on March 11, 2002. During 2003, the Autoliv SDR started by falling from SEK178.50 at the beginning of the year to SEK151 on March 12. The SDR then climbed to SEK280 at year-end and hit SEK328 on January 22, 2004. During 2003, the SDR soared by 53%, outperforming the 30% rise of the composite index.
  Since the initial public offering in Sweden in 1994 until Mid- February 2004, the Autoliv securities in Sweden have risen at an average annual rate of 14%, while the composite index in Stockholm has increased at an average rate of 10% during the same nine and half years.
  In New York trading in the Autoliv, Inc. share began on May 1, 1997, when it closed at $35.50. The stock has followed its peer group in the S&P Auto Parts Index relatively closely. It hit its all-time high on September 19, 1997 at $45.13 and reached its lowest level on September 21, 2001 at $13.25. In 2000 and 2001, the Autoliv stock declined more than the peer group, but then it also rose faster than most other automotive parts stocks. This is partly due to the stronger Euro and Autoliv's strong position in markets outside the U.S.
  During 2003, the Autoliv share opened at $20.93, hit a year-low of $18.70 on March 11 and ended the year at $37.65. This was an increase during the year of 80% and nearly twice as much as the 41% increase in the S&P Auto Parts Index.
  The Autoliv share hit its year-high of $38.40 on December 29 and reached a new all-time-high on January 22, 2004 of $45.86.
  Since the initial listing in New York on May 1, 1997, until Mid-February 2004, the Autoliv, Inc. stock has risen at an average annual rate of 3% compared to an average decline of 1% in the S&P Auto Parts Index during the same time.

Share trading

During 2003, 70% of the trading in Autoliv securities was in SDRs in Stockholm and 30% was in shares in New York. This was the same split between the two markets as the average split since trading in the Autoliv, Inc. securities started in May 1997. During 1999 and 2000, there was a trend that trading was concentrated in the Stockholm market, which accounted for 91% of the combined trading volume at the peak in 2000. At the beginning of 2004, 68% of the Autoliv securities are traded in Stockholm.
  The daily average trading volume in New York increased by 64% in 2003 to 231,700 shares after having increased by 37% in 2002 and doubled in 2001. In Stockholm, the average trading volume rose by 23% to 534,000 after a 9% decline in 2002. The Autoliv SDR was the 24th most traded security in Stockholm, accounting for 1.2% of the trading, compared to 0.9% during 2002. The trading in Autoliv shares and SDRs represented a turnover of 202% of the total number of Autoliv shares outstanding, compared to 149% during 2002.

Number of Shares

During 2003, the number of shares outstanding decreased by approximately 1.4 million, net to 94.9 million due to Autoliv's share repurchase program.
  If all outstanding stock options are exercised and all granted restricted stock units utilized (see Note 14 on page 37), the number of outstanding shares could increase by 1.3% to 96.2 million.

Share Buy-backs

During 2003, Autoliv bought back 2,052,600 shares for $43 million, compared to 1,554,600 during 2002 for $30 million. Since the start in 2000, Autoliv has bought back 8.1 million shares at an average cost of $21.66.
  The authorization to buy back shares was first adopted in May 2000. In April 2003, the authorization was doubled from 10 million to 20 million shares. The remaining part of the repurchase authorizations could reduce the number of shares outstanding by 11.9 million.
  The repurchased shares are not retired but held as treasury stock.

Shareholder Rights Plan

During 2003, the number of shares outstanding decreased by approximately 1.4 million, net to 94.9 million due to Autoliv's share repurchase program.
  If all outstanding stock options are exercised and all granted restricted stock units utilized (see Note 14 on page 37), the number of outstanding shares could increase by 1.3% to 96.2 million.

Number of Shares

Autoliv has adopted a Shareholder Rights Plan designed to encourage third parties interested in acquiring a controlling block of shares in the Company to negotiate with the Board to preserve the best interest of all Autoliv shareholders (see Note 12 on page 36).

Dividend

Quarterly dividends are declared separately by the Board, announced in press releases and published on Autoliv's home page.
  If possible, quarterly dividends are paid on the first Thursday in the last month of each quarter. The record date is usually one month earlier and the ex-date typically two days before the record date.
  The Board has declared a 33% increase in the quarterly dividend to 20 cents per share to be paid in June 2004.
  Within 14 months, Autoliv has raised the quarterly dividend by 82% in three steps.

Shareholders

According to Autoliv's stock registrar, there are nearly 4,000 record holders of the Autoliv shares, and according to our soliciting agent, there are over 20,000 beneficial holders that hold shares in a "street name" through a bank, broker or other nominee.
  According to the depository bank in Sweden, there are almost 5,000 record holders of the Autoliv SDR, and according to the Swedish soliciting agent, 15,000 "street holders" of the SDR. Many of these holders are nominees for other, non-Swedish nominees.
  Autoliv therefore estimates that the total number of beneficial Autoliv owners exceeds 50,000 and that over 50% of the securities are held in the U.S. and approximately 20% in Sweden. Most of the remaining securities are held in the U.K and central Europe.
  The largest shareholders known to the Company are shown in the table below.

Annual General Meeting

Autoliv's next Annual General Meeting of Shareholders will be held on Tuesday, April 27, 2004, at Bank One, 1 Bank One Plaza, 57th floor, Chicago, Illinois 60602, USA.
  Shareholders are urged to return their proxies whether or not they plan to attend the meeting.

Stock transfer agent & registrar

EquiServe Trust Company, N.A.
P.O. Box 43069
Providence, RI 02940
+1 (800) 446. 2617 (within the U.S.)
+1 (781) 575.2723 (outside the U.S.)
+1 (800) 952.9245 (hearing impaired)
Internet: www.equiserve.com

Analysts

Analysts following Autoliv on a regular basis.

• ABG Sundal Collier
• ABN Amro
• BNP
• Carnegie
• Cazenove
• Cheuvreux
• CitiGroup
• CSFB
• Deutsche Bank
• Enskilda Securities
• Exane
• Evli
• Goldman Sachs
• Handelsbanken
• Hagströmer & Qviberg
• Human Securities
• Kaupthing Bank
• Kepler Equities
• Morgan Stanley
• Nordea
• Öhman
• Société Générale
• SwedBank
• Thomas Weisel
• UBS Warburg

Investor Requests

North America
Autoliv North America.
1320 Pacific Drive,
Auburn Hills, MI 48326.1569, USA
Tel +1 (248) 475.0407
Fax +1 (248) 475.9838
patrick.jarboe@autoliv.com

Rest of the world
Autoliv Inc.
Box 70381, SE-107 24 Stockholm,
Sweden
Tel +46 (0)8 5872.0623
Fax +46 (0)8 411.7025
mats.odman@autoliv.com

Financial Information

Autoliv's reports, news releases, proxy statements and other general information on Autoliv are published in English and Swedish and can be obtained without charge upon request from Autoliv at the addresses given above.