Welcome to Utah. So glad that so many of you have chosen to take the time and effort to be here today and to share this beautiful day with us. I am sure it's going to be a great day where you're going to learn a lot about the ties onto what's going on, on the subfloor. The agenda for today will start with Michael presenting our new strategic directions and update targets. And then there will be the first tour of the day where we will demonstrate exactly what our strategic direction really means in reality.
And the infraitor facility we have here in Ogden, in Brigham City is very well advanced into automation, but you will still see that there's a lot of improvement projects going on. After that, we'll transfer to Ogden Tech Center. And for the main presentation block, it starts at 11. And after the Q and A, there will be a very efficient lunch served, followed by interactive exhibitions and planned tours with insights into the future, what we see in terms of products and production and research into the long term market drivers. And then at 5 p.
M, we will transfer to Snowbasin for a nice dinner. We have the Safe Harbor statement, which is an integrated part of this and all other presentations held during the day, and it also includes the Q and As that will follow. And with that, it's time to invite Michael Bratt, President and CEO, to talk about strategic and targets. Michael, please.
Thank you, Anders. Very good. Good morning to you all. It's a pleasure to see you here with us today. But before we jump into the presentation, let me start with a short movie.
So once again, warm welcome to Autoliv Capital Markets Day 2019 here in Utah. I really appreciate you taking the time and effort to join us here today. But I think we have a great agenda in front of us that I think you will find worthwhile coming here. So Utah here is the birthplace of our U. S.
Business. It came out of the airbag industry here came out of the core competence around rocket fuel development that took place and is taking place here in Utah. So you could actually say that our airbag technology here is really coming out of rocket science here and that's what we're talking about here today. So we are really pleased to be here in the birthplace of our airbag technology, so to speak. During the day today, we will take you through the journey that we have in front of us here capturing the new technologies that are, I would say, available for us when it comes to developing our products, but also developing our processes.
And I think there is a lot of concrete exciting stuff to show you there. And with this new technology and the drivers in our industry when it comes to new development, we see that we also can broaden our safety products into new opportunities. This is done also in a situation where we're starting from a strong position as a market leader company. We also have a strong order book where we see continued growth for coming out of from the in the years to come. So a strong starting point.
And I think here we are now in a situation where we as a fully focused company on our core products here has a new opportunity to capture these opportunities. So once again, warm welcome to the Capital Markets Day 2019 here in Utah. So we are really looking forward not only to the day today, but also with into the future here with great anticipation. So Utah, why did we select Utah to have our Capital Markets Day? I think it is very important to be in one of our sites where we have and can demonstrate concrete activities connected to our overall strategy that we have alluded to before on our opportunities.
So here in Utah, we have a number of plants where you basically have the end to end flow of bringing an airbag module to the customers here. So we have the propellant plant here. We have the initiator production. We have the inflator production. That's what we have exactly in this plant.
And then we have the airbag assembly plant, which you will come to later today. And we have a tech center that is closely connected to our operational activities here. So really an end to end perspective on the site here. So we are fully focused on creating shareholder value. And it all begins with creating value for all our stakeholders here.
The foundation is really our strategic initiatives that comes out our strategic plan, where we are looking at, I would say, a very clear roadmap to what to do. So the how and the roadmap is well defined. Here we're talking about structural efficiency programs. Here we're talking about Here we're talking about the factor of the future. Here we're talking about the end to end value chain improvements of all of that you will see during the day to day.
Delivering this create a stronger company and we have also a legacy of being able to invest in innovation and we have a strong history there of being the industry's first. And that's something we intend to continue to do. And I would say innovation for saving more lives with the purpose driven company that we are gives us a very, very strong market position. And the market position we have today is once again on innovation being the industry's first, but also when it comes to quality leadership, delivering superior quality to our customers and the result of that giving us the market leadership position that we have. I will come back to all these fundamentals, I would say, for our journey going forward later on here.
But the market position then is what gives us value creation then for all our stakeholders. And as I mentioned before, fully focused on shareholder value, but through then value for all stakeholders, we will get there. So talking about society, saving more lives for our employees, making sure that they are able to deliver what is needed to our customers, developing our employees, the attractiveness for the employees to join Autoliv and for our customers here to have a robust supplier delivering world class products. But we have with this also very clear, I would say, approach to creating shareholder value. And you see it on this page here, where profitable growth is put in the forefront.
We're talking here about sustainable, I would say, long term as well as near term growth top line, driving profitability improvements and making sure that we are over the cycle resilient in delivering continuous improvements and increased profitability. And I would say the strength of Autoliv historically here and which we intend to maintain here is a strong cash flow generation to generate shareholder return out of that. At the same time, maintaining a prudent financial profile of the company. And we will also come back later on during the day today and dive more into the details here, but a well defined approach to create shareholder value. And our best way to, I would say, show our commitment on creating shareholder value is, I would say, described in our updated targets, where we're talking about medium term outlook.
And when we talk about medium term here, we refer to 3 to 5 years out. And the starting point here is 2020. So that's the baseline year. And we see that we expect to continue to outgrow the light vehicle production with 3% to 4% points per year. We see an adjusted operating margin of around 12%, a cash conversion of more than 80%, and this is a new target that we are introducing.
And as I said before, a prudent view on our balance sheet, meaning that we also here maintain then the leverage ratio targets that we have had in the past. So one time around one time leverage ratio, but a range there of 0.5 to 1 net debt to EBITDA. If we go beyond the medium term horizon here, we are saying that long term we should grow at least in line with the market and we should then go towards adjusted operating margin of around 13%. So let's take a look on the growth drivers when we look now at the medium term horizon here. And as we have seen before, we still have a job to do when it comes to reduced traffic fatalities around the world.
1,300,000 people are losing their lives on our roads annually. And if we then count all the people that are injured, we are talking about 20,000,000 to 50,000,000 people a year. So the challenge is big here and the World Health Organization has taken on the target to reduce these numbers with 50% by 2,000 history here. And one of the main drivers when you look at the history here. And one of the main drivers when you look at the map here is, of course, the low income countries where we see a catch up work to be done when it comes to start to come up to the high income or the Western markets.
But we see the same pattern here where the growth and the wealth in the different countries starts to move in a positive direction here. The interest and also the ability to invest in safety products increasing. And so you could say here we see the exact development as we've seen in the Western world here. And good examples is what you have on the right hand side here where we see for certain certainly the curtain airbag penetration in China going from 40 to close to 60% in just a couple of years. And also when you look here at the side airbag penetration in South America where it goes from just above 20% to more than 80%.
So in just a few years, we see this development and of course there is a lot of other examples also like this where you see increasing penetration of certain type of safety products into the vehicle. So content per vehicle in the low income countries is continuing grow. Also in the high income countries, we see the developing development continuing and you saw us announcing the far center airbag yesterday today here where we talked about that new type of airbag that is coming more and more. And you can see here that it went from basically 0 in 2018 to more than 20 that is coming. It's also moving quite rapidly in the years to come, according to our expectations.
And also what we see, of course, in terms of customer interests and orders. So the drivers here, of course, is also awareness. We have NCAP educating and driving development of new features. And of course, we have some megatrends here also connected to new type of configurations in the vehicles when we talk about, for example, self driving cars and so forth. But also more focus on the people outside the vehicle as well as more personalized restraint system here.
So more sophistication coming in the Western world here also in terms of advanced products. So when we look at this content per vehicle and also then, of course, building in what we see in our order books and our market share growth expectations, we see that adding up to then 3% to 4% outperformance on top of a light vehicle production that we expect to be between 1% looking now on the starting point and I think as I already mentioned here, we have a strong starting position and well covering well the different product types we are talking about here. So looking at our market share development, you have seen here we were at 38% in 2017. And as we already communicated, we moved up to 40% in 2018. That's also seen across the different product types that we have.
So market leader globally, but also market leader when you look at the different product families that we are offering. The way we have got here is built on different core methods, a number of core methods that we applying inside the company. Of course, where we're talking about lean and lean approach to all the different types of activities we have in the company. Quality focus, a Q5 approach that has been in place in 2010, 1P, 1P where we are looking at product development and production processes together in order to drive cost effectiveness and also I would say robustness when it comes back into the quality question here. And of course, innovation being the market leader and innovator in the industry here is core fundamentals for us when we move forward here.
And it has paid off. As you can see here, we stand for around 2% or less than 2% of all the recalls globally, where we should also consider then of course the population that we have out there. I think that's good evidence of our quality focus the company. But also on the productivity side, we have seen here roughly about 5% of productivity year over year since I see on the short tail 2011. So once again, a strong foundation to stand on when we now look forward.
We also are truly global here. We have a global footprint close to our customers and that's really, really important to be able to develop new products and to be really integrated part of the customers' supply chain here in an effective way. So production, tech centers globally to support our customers wherever they are around the globe. And that's also critical when we look on how we have been able to grow our market share per region. I've showed you this before where we have seen and expected to see market growth market share growth coming through not only on a global level, but also in our different regions.
And our expectations here for 2020 is that we have basically across the board here improvements in terms of regional market share. And looking even further into 2023, we expect this trend to continue. So North America to South America here, good development when it comes to market share according to our own expectations here. So the closeness to the customers and innovation together with the customer here is critical for our success. When it comes to innovation, it's also an important parameter when it comes to continuous growth.
And first of all, we have more work to do as I started out to talk about when comes to our traditional products. You see an example here of the airbag, but a lot of new opportunities also within, let's say, the traditional space. So that's something we continue to focus on and more to come during the day to day here on what that actually means. But there is also a number of megatrends driving the requirement for new type of solutions. We're talking about electrical vehicles.
We're talking about different interiors in the cars that comes from the more self driving vehicles. And already today, I would say, with drive support solutions also puts new demands on our type of products. But it also gives us opportunities to tune our systems differently with the higher number of data coming from the vehicle and signals coming from the vehicle. So some interesting stuff in that space there. But also new markets and here we see, of course, the vulnerable road users that has traditionally not been so much in the focus, but with the continuous effort here to saving more life on our roads, The vulnerable road users needs to be much more in the spotlight here.
And here we're talking also about the 2 wheelers and you see one example here. So new broader definition of our market here gives us a lot of opportunities. Looking at different strategic initiatives then that should give us the increased efficiency in our operations. But before we go into any details there, let me just emphasize again here that the new auto leave here now post the spin of our electronics business roughly 15 months ago has given us the opportunity to have a much more simpler organizational structure, simpler meaning efficient organization to really focus cross functionally on what we're talking about here today, the traditional passive safety products, but also with a broader perspective. So we can really look after the full value chain in, I would say, very strong way as we move forward here.
So in short, we have now a new strategy. We are fully focused the whole organization fully focused on safety. We have a new management team in place ready to take on the challenges here. And we see also with the support from the new technologies here, good opportunity to do some step changes when it comes to improving our processes end to end. So we're looking forward to show you some examples here during the day today.
And we know how to do this and we have done it in the past and you can see here the improvements we have seen in the total value chain where we have worked intensively to reduce complexity supplier side reducing the number of suppliers. We have seen quality measurements improving. I mean it's quite strong numbers here. I think if you take the middle chart here for example, 48% over a number of years at the same time where we have seen increasing volume. So these numbers is not considering any volume adjustments.
This is actual numbers improving nonconformity events down to with 48%. At the same time, we have seen volumes increasing more than 50% here. So really strong numbers here. And then on the productivity side, as I mentioned before, around 5% annually here. But with that said, we are never satisfied here.
So it's ongoing journey to see improvements and Autolip Production System is the foundation for our way forward and we sharpened the way we are applying our production system and connecting that really to the performance. So making sure that it's sustainable improvements as we move forward here. So of course, the out of the production system is also subject to continuous improvement. So as we move forward, we are also raising the bar and raising the ambitions when it comes to the journey ahead. Another area, the 1P, 1P we talked about when it comes to reduced complexity.
I just wanted to show one example here when it comes to the seat belts and the seat belt webbing production here. And as you can see here, we do quite a few meters a year on webbing. Actually, if you all add it up, it should be around 15 laps around the world. And of course, if you can do that with scale and efficiency, it's great benefits here. And in 2011, we had around 50 variants of the webbing.
Today, we have come down to just below 10. I think we have 9 today actually. And then we have ambitions to go down further. So the target here is to come down to 2 variants here. And of course, with these volumes and this reduction of variants, it gives good leverage to our webbing production here.
So continuous improvements will continue to be, of course, the foundation for our improvement work going ahead and applying that across the board. But we will also add, I would say, more what we call excellence efforts here. So we will look after the opportunities that is when you look at the whole value chain and you can get most leverage for your efforts here. So when we look at our total end to end production here, we can see that we are well advanced in many areas, but we have greater opportunities in others and maybe there we should put extra effort and also the maturity in applying then the new technology is different in the different parts of the company. So it's not basically one size fits all here.
It is to be exactly what we're saying here, more tailor made and more surgical in the way we are looking at driving continuous improvements here. What we'll talk about today here also is really what we talk call the accelerators. And here we really want to emphasize on the modernization and design for manufacturing. It's really the 1P, 1P to the next level, you could say. So marrying the processes with the development of new products harder.
And as I said before here, we have a new focused organization here that more emphasis on the cross functional opportunities here and the modernization and design for manufacturing is such an area. Then optimization, digitalization and footprint make buy questions also. And here really we want to say that we are looking at all corners in the company to see what can we do differently and what can we do to improve the current situation here. So we're not shying away from any topics here. And also RD and E effectiveness.
So it's really looking at, I would say, the RD and E also from a production perspective and see how that can be improved further. So we can enhance our innovation ambitions here going forward with the right focus. So that's what we call accelerators. And throughout the presentations today, different speakers will come back to these different topics here. An example of an accelerator that we have implemented here is the seat belt assembly where we have gone basically from a number of operators into a fully automated line.
So here is really a showcase on it's possible to go for full automated lines effectively. And you will see some examples of that also when you go around here today, not seat belt, but from other type of production processes, but the same concept. Also looking at the flow inside the plant, we had in Turkey, we had the steering wheel production there based on 3 different processes, where there were basically single flows for all 3. Now there is one flow capturing all the 3 different processes. So taking care of foaming, wrapping and assembly in the same flow.
And of course, you can imagine the effectiveness coming out of that, everything from floor space to logistic costs and also in this case, labor. So some very concrete examples of what we're talking about there. Throughout the day here, you will see examples free up floor space by being I mean focusing and optimizing our flows inside the plant. Automation also at AOA where we have a driver airbag folding process showcasing there. Here at IBC, you will see a factor of the future talking about connected production processes and how we then gain speed in driving productivity and responsiveness in the plant.
And also we will have another example of Factor of the Future tomorrow at ITO. So 4 very tangible activities here connected to our improvement journey here. So I hope by now you get the sense that there is a lot of different things going on in Autoliv here driving then productivity, driving profitable growth and by that enhancing and creating long term shareholder value. And let me then in summary before we hand over to the plant here, just describe then the Autoliv journey as we see it for the next few years here. And that is really to come from where we are today as a solid industry leader to an industry transformer.
It is to go from our traditional focus on light vehicle production, light vehicle safety to safety for mobility and society. Coming back to what I said before, broaden the addressable market here for what we are doing, capitalizing on what we are good at. And then of course, continue our operational excellence, manufacturing excellence journey by also here addressing the whole value chain in the same fashion here. So next a step change in operational excellence, that's really what we're talking about here. And this journey then is made or done in the with the backdrop of continuing growing business.
And as you have seen and heard us commenting before, we have had a good continuous good order intake during the year. And actually looking at the year to date, as of October here, we are around 50 percent of new orders. Also looking at our activities here to drive improvement and productivity in our company. We see that the effects from what we're doing with all from the structural initiatives to applying then step changes to operational excellence is giving effect. And we see here a positive trend where we have had quarter over quarter improvement in the falling market.
So we see that it starts to give effects to our ambitions here. So looking then in at the number of tailwinds and headwinds. We see from the tailwinds, for example, that we are expecting to see raw materials coming down connected to our sourcing. We see and expect the structural efficiency programs continuing to deliver. We see the strategic initiatives starting to deliver and so forth.
So adding it all up, we see a number of tailwinds for 2020 here. We have noted here the light vehicle production stabilization and I think here we see that it should we expect it to be less dramatic year than what it has been this year. But we will come back with a more detailed outlook later on here when we present Q4 results in the beginning of next year. On the headwind side, we see lower inflator replacements coming our way. Depreciation and amortization are increasing as a result of more fixed installations that we are getting in place here, but also investments into the factory of the future in terms of the different projects that we are running.
But when we add it all up, we still believe that we should see tailwinds greater than the headwinds in 2020 and should give us a year over year improvement. So let me then finalize my presentation and state here that we are fully committed on the journey ahead here to create shareholder values. We are, I would say, confident in our ambitions here to deliver on all the different initiatives that we have in place. And we will be very focused on driving the continuous improvement journey ahead And we have more than 100 projects that we are either driving or that we are evaluating at this point in time. So it's close tracking and follow-up on all these initiatives and once again fully focused management team on this task ahead.
So time for execution and I think that gives a very natural handover to Dave Anderson, our debt manager here at IBC. So he will take care of us for the next hour and so.