Kongsberg Automotive

Investor Presentation • May 13, 2024

CAPITAL MARKETS DAY

MAY 13, 2024

FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURES

FORWARD-LOOKING STATEMENTS

This presentation contains certain "forward-looking statements". These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this presentation include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in the 2023 Kongsberg Automotive Annual Report and the Kongsberg Automotive Quarterly Reports.

NON-IFRS MEASURES

Where we have used non-IFRS financial measures, reconciliations to the most comparable IFRS measure are provided, along with a disclosure on the usefulness of the non-IFRS measure, in this presentation.

TODAY'S PRESENTERS

DAVID REDFEARN CHIEF SALES OFFICER DIRK ECKERT CORPORATE SUSTAINABILITY MANAGER

CHRISTIAN AMSEL CHIEF TECHNOLOGY OFFICER

FRANK HEFFTER CHIEF FINANCIAL OFFICER

LINDA NYQUIST-EVENRUD PRESIDENT & CEO

PART 1 PART 2

• EXECUTIVE SUMMARY BUSINESS STRATEGY
• SUSTAINABILITY
• FINANCIAL UPDATE
• MARKET UPDATE
  • GROWTH STRATEGY PRODUCT PORTFOLIO
  • KEY TAKEAWAYS

EXECUTIVE SUMMARY

WHO WE ARE

GLOBAL AUTOMOTIVE AND INDUSTRIAL APPLICATIONS PROVIDER WITH OVER 65 YEARS OF ENGINEERING EXCELLENCE

KONGSBERG REESTABLISHED AS THE HEADQUARTERS

KONGSBERG AUTOMOTIVE'S (KA) BOARD OF DIRECTORS, ALONG WITH THE CEO AND EXECUTIVE MANAGEMENT, HAS DECIDED TO OPERATE THE COMPANY OUT OF KONGSBERG, NORWAY.

Going forward, Kongsberg will be the headquarters for KA, with Zurich, Switzerland, serving as the company's financial center.

With this decision, KA moves back to its origins that date back to 1957 and strengthens its ties to two of KA's main Tech Centers in Kongsberg and Raufoss as well as key production facilities in Hvittingfoss and Raufoss.

WHAT WE DO

POWERTRAIN SOLUTIONS ELECTRIC ACTUATORS VEHICLE DYNAMICS COMPRESSED AIR MANAGEMENT FLUID AND THERMAL MANAGEMENT PEDALS AND HAND CONTROLS STEERING SYSTEMS INDUSTRIAL FLUID APPLICATIONS

TECH CENTERS IN SCANDINAVIA, NORTH 6 AMERICA AND CHINA

343 HIGHLY SKILLED

ENGINEERS GLOBALLY

EXPERTISE IN ELECTRONICS AND MECHATRONICS

WE INNOVATE AND DELIVER COST-EFFECTIVE SOLUTIONS ENGINEERED FOR SUSTAINABILITY AND SAFETY

HOW WE DO IT

WE DESIGN EFFICIENT PRODUCTS THAT ARE SAFER AND MINIMIZE ENVIRONMENTAL IMPACT .

2 REDUCTION IN SCOPE 1 AND 2 1% CO2e EMISSIONS

45% RENEWABLE ENERGY USED ACROSS KA'S PRODUCTION PLANTS COMPERED TO 40% IN 2022

WITH WHOM

2023 HIGHLIGHTS

885€M

BUSINESS WINS LIFETIME SALES

REVENUES REVENUE GROWTH IN THE COMMERCIAL VEHICLES MARKET WAS ABOVE MARKET FOR THE 989€M THIRD YEAR IN A ROW

COMMERCIAL VEHICLES MARKET VS KONGSBERG AUTOMOTIVE REVENUE GROWTH FULL YEAR 2023

MILESTONES SINCE 2021

SHIFT GEAR	PROGRAM INITIATED	FLOW CONTROL SYSTEMS (FCS) FORMED		PRESIDENT & CEO APPOINTED	DRIVE CONTROL SYSTEMS (DCS) FORMED
				NEW BOARD OF DIRECTORS APPOINTED	NEW BUSINESS STRATEGY LAUNCHED
2021	2022	2023			2024
	LIGHT DUTY CABLES DIVESTED	POWERSPORTS DIVESTED		ROMOLINE PATENTS ACQUIRED	KONGSBERG RE-ESTABLISHED AS THE HEADQUARTERS
	INTERIOR COMFORT SYSTEMS DIVESTED		CHASSIS AUTONOMY COLLABORATION INITIATED	COST OPTIMIZATION MEASURES INITIATED	SKRIVERFORM ACQUIRED

2024 – A TURNAROUND YEAR

IMPROVE EARNINGS AND CASHFLOW

COST OPTIMIZATION

FOCUSED AND COMPETITIVE PRODUCT PORTFOLIO

GUIDANCE FOR 2024

710 740 ^{120 140} 724 161 REVENUE SPLIT, MEUR 2023 2024 LOWER RANGE HIGHER RANGE 830 885 880 HIGHER RANGE LOWER RANGE -37 EBIT, MEUR 34 44 2023 2024 17 -20 -5 ^{44 39} 0 NBW, MEUR LIFETIME REVENUES >1,200 989 2023 2024 BOOK-TO-BILL >1.2 2024

GLOBAL FOOTPRINT OPTIMIZATION

LONG TERM AMBITIONS - 2028

REVENUES

ABOVE EUR 1.0 BN

By organic growth, representing a double-digit % CAGR for the core business, being higher than the expected industry growth

EBIT MARGIN

AT OR ABOVE 8,5%

Reach and maintain EBIT-margin, aiming for sustainable profitability

BUSINESS STRATEGY

Business strategy

Business strategy

KA'S BUSINESS STRATEGY SHIFT GEAR PROGRAM INTEGRATION

SUSTAINABILITY

Sustainability

OUR APPROACH CLEAR TARGETS AND TRANSPARENCY

LONG TERM TARGETS
2030 100% renewable energy	2039 Carbon neutral products	Forever Zero Accidents

MID TERM TARGETS 2025

10% energy use	10% landfill waste	10% water use	50% renewable
reduction*	reduction*	reduction*	energy

ONGOING INITIATIVES & PROGRAMS

SUPPLY CHAIN	SAFETY	PEOPLE	CLIMATE
WASTE	BUSINESS ETHICS	WATER	HUMAN RIGHTS

TARGETS TRANSPARENCY

REPORTING

Yearly publication of GRI based sustainability reports (in the future CSRD reporting)

MEMBERSHIPS

Responsible Minerals Initiative

Sustainability PERFORMANCE 2023

ENVIRONMENT

CLIMATE WASTE

• > 45% share of Renewable Electricity
• > 6% Energy use reduction*

• > 21% Scope 1+2 CO2e emissions reduction*

• > Overall Waste amount remained stable

• > 8% Disposed waste increase*
• > 10 plants landfill-free

PEOPLE

• > Launch of learning platform
• > 340 learning hours provided to ka employees
• > ESG performance included in LTI**

SAFETY

• > 0 Fatalities or high-consequence injuries
• > 9 reported injuries > improvement of 35%*
• > 86% of plants ISO 45001 certified

GOVERNANCE

SOCIAL

SUPPLY CHAIN COMPLIANCE

> 78% of direct spend with sustainability assessed suppliers

• > No confirmed incidents of corruption have been reported or identified
• > 100% of new employees received Code of Conduct training

Sustainability HIGHLIGHTS 2023

ESG STRATEGY

1. DOUBLE MATERIALITY

• 2. SUSTAINABILITY FRAMEWORK
• 3. SUSTAINABILITY TARGETS AND ROADMAPS
• 4. IMPLEMENTATION AND INTEGRATION

SUSTAINABILITY PROJECT HAS BEEN KICKED OFF IN 2023.

First achieved Milestones: Double Materiality Analysis according to the EU/ESRS disclosure requirements and internal sustainability framework

SCOPE 3 EMISSION RATINGS DATA

FIRST CALCULATION OF SCOPE 3 (UPSTREAM) CO2E DATA. Important step for supply chain decarbonization

IMPROVEMENT OF CDP CLIMATE CHANGE RATING

from C Level ("Awareness") to B- Level ("Management")

PEOPLE DEVELOPMENT

LAUNCH OF KA'S LEARNING LAB.

As a first step, an online learning and development platform called Percipio has been introduced.

ZERO CO2e SAFETY

Ljungsarp (Sweden) is KA's first plant operating with zero CO2e emissions (Scope 1 + 2)

With only 9 reported injuries in 2023 the best safety performance has been achieved in 10 years

Sustainability OUR PRODUCT PORTFOLIO SUPPORTS THE TRANSITION TO SUSTAINABLE MOBILITY

PERFORMANCE VIEW

LESS FUEL CONSUMPTION AND REDUCTION OF CO2 EMISSIONS

Products with improved performance, and light-weight and low CO2 footprint materials and design:

• > AIR MANAGEMENT
• > FLUID AND THERMAL MANAGEMENT
• > CLUTCH ACTUATION SYSTEMS
• > GEARSHIFT SYSTEMS AND MORE

APPLICATION VIEW

OUTLOOK

xxx xxx KA COMMITS TO THE GOAL OF 100% RENEWABLE ENERGY AT ALL PRODUCTION PLANTS BY 2030

• > Ongoing switch of electricity contracts to renewable electricity
• > Focus on energy efficiency measures
• > Analyze options for biogas, biomass and further electrification
• > Net zero target development for Scope 1 and 2 CO2e emissions until Q4/2024

xxx xxx

xxx KA COMMITS TO THE GOAL OF CARBON NEUTRAL PRODUCTS BY 2039

> Ongoing calculation of carbon footprints for entire product portfolio

xxx

• > Analyze options for reducing purchasing related CO2 emissions (e.g. green steel) and development of reduction roadmaps
• > Net zero target development for Scope 3 emissions until Q4/2024
• > Potential Science Based Target Initiative (SBTi) commitment under review

KA DEFINED CLEAR AMBITION LEVELS FOR DIFFERENT ESG TOPICS

• > Clear focus on occupational health and zero accidents
• > Circularity approach for materials and production processes
• > People focus on culture, training and development
• > Human and Labor Rights focus in the value chain

FINANCIAL UPDATE

INCREASE RETURNS

IMPROVE PROFITABILITY AND CASH GENERATION PROGRAM CONTRIBUTIONS (IN MEUR)

IMPROVEMENT PROGRAM CONTRIBUTIONS

IMPROVE PROFITABILITY AND CASH GENERATION WHAT WE AIM FOR IN 2024

TARGETED 2024 IMPACTS

IMPROVING THE BOTTOM-LINE

Overhead Cost / Support Function Optimization Benchmark / Organizational Effectiveness / Right sizing

• Around 110 positions reduced, 40 replaced in best cost locations

• Closure of our office in Dortmund (GER) and Tokyo (JAP)

OFFSETTING NEGATIVE EFFECTS

Direct and Indirect Material Cost Optimization Resourcing / VA/VE / Commercial / Bundling

• Near-Shoring

• Supplier Days and workshops

• Insurance Brokerage centralization

Operational Excellence / Footprint Optimization Shopfloor improvements / Make or Buy / Relocation

• ^> Semi-automated and fully automated assembly lines > EUR 10m

• Insourcing of brazing

• Move of labor-intensive production to best cost countries

> EUR 17m

> EUR 10m

IMPROVE PROFITABILITY AND CASH GENERATION REALLOCATION OF NON-CORE R&D RESOURCES TO BOOST INNOVATION IN THE CORE

IMPROVE PROFITABILITY AND CASH GENERATION CAPEX ALLOCATION BASED ON PROFIT POTENTIAL

MEASURES

Stringent Approval Process

• > K-brief for Engg.
• > CER1 before quotation
• > CER2 @ award
• > interim review @ SOP
• > CERX when deviation

Tight management

• > annual Fixed Asset count
• > Preventive Maintenance
• > Asset relocation
• > (Leasing)

R&D Capitalization

> increase to >10% in 2024 from <5% in 2022

IMPROVE PROFITABILITY AND CASH GENERATION REDUCE NWC FROM ELEVATED LEVELS

10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 2022 2023 2024e NWC IN % OF TOTAL EXTERNAL REVENUES CORE NON-CORE

MEASURES

INVENTORY

• > Consignment Stock
• > Payment / Incoterms
• > Near Shoring

ACCOUNTS RECEIVABLES

• > Payment / Incoterms
• > Overdue collection
• > P-Notes to Suppliers
• > (Factoring)

ACCOUNTS PAYABLES

> Payment / Incoterms

IMPROVE PROFITABILITY AND CASH GENERATION REDUCE CE TO INCREASE ROCE

2024

Impairments and write-offs taken in Q2 and Q4 2023 are currently negatively impacting ROCE based on last twelve months EBIT.

Q1 2024 only is at 12.4%.

With EBIT expectations of EURM 39 – 44 for 2024, ROCE will improve through the year to a level of 12 – 13% by Q4 2024, supported also by a reduced average Capital Employed.

1 Capital employed consists of Intangible Assets, PPE's, Right-of-use assets, Net Working Capital less Lease liabilities at quarter end 2 EBIT (LTM) / Average capital employed

-6.0 -3.9

Q4 2024e

Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024

11.6 11.2

SECURE ACHIEVEMENT OF MID-TERM AMBITIONS GROWTH THE MAIN DRIVER TO SUCCEED

2024 - 2028

Strong revenue growth in the core businesses with higher contribution will more than compensate for the expected decline in the non-core business.

Further topline impact from additional price adjustments to compensate for potential material cost increases / inflation. In combination with internal productivity measures, the bottom-line effect needs to be eliminated.

Aggressive cost reduction in the non-core further contributing.

PROVIDE FINANCIAL STABILITY AND FLEXIBILITY

INCREASE RETURNS

REFINANCING NORDIC BOND + RCF THE MOST ATTRACTIVE OPTION

CONSIDERATIONS TIMELINE

• > Reduce Main Facility to base requirements MEUR 100 – 140
• > Flexibility through RCF (and ARS/Factoring) ~20–30% of Main Facility
• > Main Facility Nordic Bond
• > Tenure: 4 years

• > Target: Annual interest costs equal or lower than today ("within todays range")

• > Work in progress with advisors

• > Go to market either pre or post summer break
• > Refinancing concluded in 2024

PROVIDE FINANCIAL STABILITY AND FLEXIBILITY SECURE MINIMUM EQUITY, SUFFICIENT LIQUIDITY AND LIMIT LEVERAGE

180

147.7 25 30 CASH UNUSED ARS UNDRAWN RCF LIQUIDITY, MEUR

INCREASE RETURNS SHARE BUY BACK AND BOND REDEMPTION / REPURCHASE

• > 10% Share Buy Back (May 22 Jan.23)
• > 2.5% Share Buy Back (Nov. ´23 Mar. ´24)

2024, a year of consolidation, no more share buy backs

SHARE BUY BACK BOND REDEMPTION / REPURCHASE

• > MEUR 75m redemption
• > MEUR 10m repurchase in open market

> MEUR 36m tender offer launched,

LIQUIDITY POLICY

FINANCING STRATEGY

CONSERVATIVE, EFFICIENT AND EFFECTIVE

• > sufficient accessible liquidity at all times
• > limit financial risks and secure financial independence
  • » aim to maintain a Net Interest-Bearing Debt / EBITDA LTM ratio of below 2.0
  • » always maintain a minimum equity ratio of >25%
• > leverage a diverse set of financing instruments
  • » access to the equity and debt capital markets
  • » combine revolving and fixed lines
  • » utilize accounts receivable securitization facilities, factoring and other available instruments

CAPITAL ALLOCATION

• 1) Support Organic growth (CAPEX & R&D)
• 2) Provide flexibility to engage in equity investments, JV´s, acquisitions

RETURN POLICY

Return to shareholders by way of increasing the share price, share buy back programs or dividends - determined from time to time – with a target of returning up to 50% of net profits, provided that financing strategy conditions are met.

MARKET UPDATE

MARKET TRENDS COMMERCIAL VEHICLE MARKET WITH GROWTH VS. A WEAKER PASSENGER CAR MARKET

GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units ^{873 857 815 856 891 902 807 857 937} Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 +5.2%

GLOBAL PASSENGER CAR PRODUCTION, million units

MARKET DEVELOPMENT									REGION	∆ Q1-24 vs. Q1-23	∆ 2024 vs. 2023
GLOBAL COMMERCIAL VEHICLES PRODUCTION, thousand units									China	+4.8%	+5.2%
						+5.2%			APAC w/o China	+14.8%	+5.6%
873	857	815	856	891	902	807	857	937	Europe	+6.6%	+4.9%
									North America	-8.4%	+4.8%
									South America	+4.9%	+4.9%
									Rest of World	+4.7%	+4.7%
									Total	+5.2%	+5.2%
Q1-22	Q2-22	Q3-22	Q4-22	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Total (excl. China)	+5.5%	+5.2%
GLOBAL PASSENGER CAR PRODUCTION, million units									China	+7.8%	+2.3%
						-0.7%			APAC w/o China	-7.1%	-2.6%
19.9	19.0	21.5	21.9	21.4	22.2	22.6	24.2	21.2	Europe	-4.5%	-2.6%
									North America	+0.3%	+0.6%
									South America	-6.3%	-0.3%
									Rest of World	+7.3%	-0.9%
									Total	-0.7%	-0.4%
Q1-22	Q2-22	Q3-22	Q4-22	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Total (excl. China)	-3.9%	-1.6%

Market update

MARKET FORECASTS REDUCED DEPENDENCY ON CHINA IN COMING YEARS

GLOBAL PASSENGER CAR PRODUCTION, million units

Source: LMC Global Commercial Vehicle Forecast (March 2024); IHS Light Vehicle Production Base (March 2024)

NEW BUSINESS WINS CUSTOMER UPDATE

KONGSBERG AUTOMOTIVE // 43

New business wins, customer update

SELECTED CUSTOMERS

New business wins, customer update

TOP 2O CUSTOMERS

*CUSTOMERS AS HIGHLIGHTED IN ANNUAL REPORT 2023

NEW BUSINESS WINS - FY 2023 LIFETIME REVENUES, MEUR

NEW BUSINESS WINS - FY 2023 PRODUCT RANGES OVERVIEW

LIFETIME REVENUES, MEUR

The product images are illustrative.

NEW BUSINESS WINS – Q1 2024 LIFETIME REVENUES, MEUR

NEW BUSINESS WINS – Q1 2024 PRODUCT RANGES OVERVIEW

LIFETIME REVENUES, MEUR

The product images are illustrative.

Q2 NEW BUSINESS WIN ON GEAR CONTROL UNIT (GCU) OVER MEUR 523 IN ESTIMATED LIFETIME REVENUE

ANNOUNCED ON APRIL 26, 2024

• > ROBUST AND DURABLE DESIGN
• > MAXIMUM COMFORT AND PERFORMANCE FOR THE DRIVER
• > HIGH PERFORMANCE
• > LOW TOTAL COST OF OWNERSHIP
• > ONLY GCU IN THE MARKET WITH SELF-ADJUSTING CLUTCH ACTUATOR
• > OUTSTANDING SERVICEABILITY

The product shown is only a visual representation for reference. Actual product developed may slightly vary.

NEW BUSINESS WIN ON ROTARY ACTUATOR USED IN ELECTRIC VEHICLES

• > COMPACT AND LIGHT
• > MAIN FUNCTION: DECOUPLING OF AN ELECTRIC MOTOR AND PARK LOCK
• > FIRST EU PRODUCTION FOOTPRINT OF AN ELECTRONIC ACTUATOR FROM KA

The product shown is only a visual representation for reference. Actual product developed may slightly vary.

BOOK-TO-BILL BOOK-TO-BILL RATIO ABOVE 1 AS GUIDED, SECURING FUTURE GROWTH

BOOK-TO-BILL PERFORMANCE, MEUR

NBW (lifetime sales LTM) Revenues (LTM) Book-to-bill ratio (incl BRP) Book-to-bill ratio (excl BRP)

1. Lifetime sales assumptions are based on IHS and LMC production estimates at the time of the booking

GROWING AND WINNING

NEW BUSINESS WINS LIFECYCLE / SALES PROCESS

PRODUCT RANGE COMMERCIAL VEHICLES

POWERTRAIN AND CHASSIS SOLUTIONS

ELECTRIC ACTUATORS

GEAR CONTROL UNITS

SHIFT -BY -WIRE SHIFTERS

VEHICLE DYNAMICS

FLUID AND THERMAL MANAGEMENT

CLEAN POWERTRAIN FLUID ASSEMBLIES

CHASSIS COOLANT

BATTERY COOLANT

FUEL CELL COOLANT

AIR MANAGEMENT

AIR SUSPENSION

AIR BRAKE SYSTEMS

PRODUCT RANGE PASSENGER CARS

POWERTRAIN AND CHASSIS SOLUTIONS

ELECTRIC ACTUATORS

AIR MANAGEMENT

AIR SUSPENSION

FLUID AND THERMAL MANAGEMENT

CLEAN POWERTRAIN FLUID ASSEMBLIES

CHASSIS COOLANT LINES

BATTERY COOLANT LINES

FUEL CELL COOLANT LINES

PRODUCT RANGE OFF -HIGHWAY VEHICLES

OFF -HIGHWAY SOLUTIONS

ELECTRIC ACTUATORS

STEERING COLUMNS

PEDALS AND THROTTLE CONTROLS

FLUID AND THERMAL MANAGEMENT

CLEAN POWERTRAIN FLUID ASSEMBLIES

COOLANT LINES

AIR MANAGEMENT

AIR BRAKE SYSTEMS

OTHER APPLICATION EXAMPLES

PRODUCT RANGE INDUSTRIAL APPLICATIONS

Fluoropolymer hoses are an ideal problem solver for fluid transfer applications involving aggressive chemicals, extremes of temperature and pressure, extreme movement and vibration, or where hygiene is paramount.

FLUOROPOLYMER

KA GROWTH AMBITIONS

TOTAL EXTERNAL REVENUES (MEUR), 2024 - 2028

PRODUCT SALES REVENUE BY STATUS, 2024 - 2028

KEY TAKEAWAYS

SOLID CORE BUSINESS WITH AMBITION FOR DOUBLE DIGIT % REVENUE GROWTH CAGR FROM 2024 TO 2028, RESULTING IN EXPECTED REVENUES OF > MEUR 1 BILLION

BUSINESS WINS HAVE PRIMED THE FORWARD ORDER BOOK FOR FURTHER GROWTH IN KEY GROWTH AREAS

ENVIABLE CUSTOMER LIST WITH GLOBAL HEADROOM FOR MARKET SHARE EXPANSION

NEW BUSINESS WINS TRENDING AT RECORD LEVELS WITH SPECIFIC WINS IN ACTUATION, GCU AND TECHNICAL HOSE ASSEMBLIES

INDUSTRIAL AREA PRIMED FOR GROWTH WITH PRODUCT LAUNCHES IN NEW SEGMENTS

EFFICIENT SALES FORCE TRAINED TO CROSS SELL FULL KA PORTFOLIO WHILE REFLECTING THE BEST COST MODEL

GROWTH STRATEGY

Growth strategy

MARKET MEGATRENDS

The global vehicle fleet is being transformed from ICE to electricity-powered

ELECTRIFICATION AUTONOMIZATION SAFETY SUSTAINABILITY

Vehicles are becoming more advanced and increasingly autonomous with new software, sensors and AI technologies

Safety continues to be a key concern amongst endcustomers and regulators

Legislation is forcing the whole supply chain to to find new ways to reduce ICE vehicles' CO2 emission

+30% Global EV fleet CAGR (2022-2030E)

12% Expected share of new sales with autonomous vehicle functions in 2030

Illustrative observation Illustrative observation Illustrative observation Illustrative observation

+11% Automotive active safety system market CAGR (2022-2032)

REGULATIONS INFLUENCING MARKET DEVELOPMENT

Updated regulations for passenger vehicle (PV) and commercial vehicle (CV) markets drive further enhancements in conventional ICE engines and increase pressure on OEMS to accelerate introduction of CO2 neutral vehicles.

Consumer behavior and development of needed infrastructure to support certain technologies (electrification, hydrogen ) is challenging, forcing to deploy a diverse range of technologies.

• > CV won't achieve 100% reduction within the next 20 years
• > As BEV penetration is too slow, many OEMS are forced to go for additional technologies shortterm to close the gap
• > Alternatives are synthetic-, bio-fuels and fuel cell vehicles

KA'S KEY CORE PRODUCT GROUPS

CONSISTING OF MISSION-CRITICAL PRODUCTS SUPPORTING MEGA TRENDS AND REGULATIONS

KA HAS A HEALTHY MIX OF RESILIENT, HARVESTING AND NEW PRODUCTS

Growth strategy

MANAGING ALL THE TRANSFORMATION PHASES IN COMMERCIAL VEHICLES

GLOBAL COMMERCIAL VEHICLES TOTAL PRODUCTION IN MILLIONS AND FITMENT OF ELECTRIFICATION TYPE IN %

Current prognosis shows approximately 1/3 of the global trucks in 2035 being BEV or FCEV driven.

High pressure on improvements in conventional ICE systems (e.g. Euro 7). KA continues harvesting and is growing market share in ICE Cooling Systems.

BEV + FCEV ICE + HEV

PRODUCT PORTFOLIO

Selected customer references

Product portfolio

ELECTRIC ACTUATORS

POWERTRAIN AND CHASSIS SOLUTIONS LEADING FUTURE PRODUCT ROADMAP – SELECTED CORE PRODUCTS

POWERTRAIN AND CHASSIS SOLUTIONS KA BENEFITS FROM BOTH ICE AND BEV/FCEV TRENDS MID-TERM AND SHOWS A SUSTAINABLE PRODUCT PORTFOLIO LONG TERM

RELEVANCE						PRODUCT TRENDS		MARKET DYNAMICS
	ICEV TODAY	ICEV FUTURE	PHEV	BEV	FCEV	System supplier capabilities Actuation and shifters including software »		SAFETY REGULATIONS
SHIFT-BY-WIRE						Functional safety and cybersecurity » Integrated electronics		CO EMISSION LEGISLATIONS 2 FOR ICE VEHICLES
GEAR CONTROL + CLUTCH ACTUATION SYSTEMS						Less noise » Transfer towards electric actuators as pneumatic actuators make whistling noise		ELECTRIFICATION
VEHICLE DYNAMICS						Compact integration
ELECTRIC ACTUATORS						Platform approaches for various application » areas with compact design Quick response and precise operation Advanced position and force control » Spring assistance for dog-to-dog scenarios		AUTONOMOUS DRIVING COMPETITIVE POSITIONING
STEER-BY-WIRE					
						» Integrated and adjustable spring mechanism

» Supportive differential lock functions

OFF-HIGHWAY PRODUCTS LEADING FUTURE PRODUCT ROADMAP – SELECTED CORE PRODUCTS

OFF-HIGHWAY PRODUCTS GROWING BUSINESS FOLLOWING ELECTRIFICATION AND SMART FARMING

RELEVANCE						PRODUCT TRENDS	MARKET DYNAMICS
	ICEV TODAY	ICEV FUTURE	PHEV	BEV	FCEV	Autonomous driving modes Steer by wire systems enabling optional use »		SAFETY REGULATIONS
ELECTRIC ACTUATORS						of autonomous driving modes Steering profile development		CO EMISSION LEGISLATIONS 2 FOR ICE VEHICLES
STEERING COLUMNS						Increasing demand for overlaying different » steering characteristic profiles
DIFF-LOCK ACTUATORS						Tighter packaging Increased need for compact, lightweight »		DYNAMIC STEERING
ELECTRONIC THROTTLE & CONTROL PEDALS						actuators Increasing safety requirements		BETTER ERGONOMICS
ELECTRONIC HAND CONTROLS						Increasing interest in functional safety » performance		COMPETITIVE POSITIONING

NEXT-GENERATION GREEN PRODUCT SOLUTIONS IN ELECTRIC VEHICLES AND OFF-HIGHWAY GROWTH MARKET SEGMENTS

GEAR CONTROL UNIT ICE, HEV, PHEV

• Q2 2024 New business win over MEUR 523 in estimated lifetime revenue

• New business award in Asia with SOP 2026

• Further roll out plans defined

ELECTRIC ACTUATORS ICE, PHEV, BEV, FCEV

• First SOP in Asia Q2 2024, further will follow 2024/25

• Two series nominations in EMEA signed

• Development contracts with various customers signed

• Development contract with lead customer signed for electronic actuator

• Further business fields within close customer exchange

STEERING COLUMN MODULES, PEDALS & THROTTLE CONTROLS Off-Highway Applications

• Several biddings running further broadening leading market position in steering column modules as well as pedals & throttle applications

• Concept developments for further customers ongoing

74

FLOW CONTROL SYSTEMS

The Flow Control System business area designs and manufactures products for both the automotive and commercial vehicle markets, as well as industrial applications.

Selected customer references

THERMAL MANAGEMENT SYSTEMS

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Product portfolio

FLOW CONTROL SYSTEMS HIGHLY FOCUSED ON FLUID TRANSFER, THERMAL MANAGEMENT AND INDUSTRIAL PRODUCTS

FLOW CONTROL SYSTEMS GROWING BUSINESS BENEFITING FROM EV TRANSITION

	ICEV TODAY	ICEV FUTURE	PHEV	BEV	FCEV
AIR BRAKE LINES					
HYDRAULIC BRAKE LINES					
AIR SUSPENSION LINES					
FUEL LINES (BIOFUELS, HYDROGEN)					
EMISSION CONTROL LINES			
TURBO LINES			
THERMAL COOLANT LINES					

SAFETY REGULATIONS CO2 EMISSION LEGISLATIONS DRIVING SHIFT TO X-ELECTRIC VEHICLES TAILPIPE EMISSIONS LEGISLATION DRIVING ICE ENGINE TECHNOLOGY Weight savings » Replacement of steel and rubber by high-performance plastic fluid transfer lines Tighter packaging » Increasing need for flexible high-performance plastic fluid transfer lines » For ICEV increased temperature resistance fluid transfer lines Increased durability » High performance plastic fluid transfer lines Reduced CO2 footprint » Use of materials and processes with a low CO2 emission Increased safety RELEVANCE PRODUCT TRENDS

» Increased crash and flammability resistance by highperformance plastic fluid transfer lines

Increased cleanliness

» Supports fuel savings and enables hydrogen fuel cell technology

MARKET DYNAMICS

COMPETITIVE POSITIONING

INDUSTRIAL HOSE PRODUCTS AND MARKETS

INDUSTRIAL HOSE PRODUCTS AND MARKETS		MARKET SEGMENTS	EXAMPLES OF APPLICATIONS
			INDUSTRIAL GAS DISTRIBUTION
			OIL & GAS WINNING AND REFINING
		CHEMICAL , OIL & GAS, BIOFUELS	CHEMICAL PRODUCTION
INDUSTRIAL FLUID PRODUCTS EXAMPLES	IMPROVING PRODUCT FEATURES		SAFETY BREATHING EQUIPMENT
	> Lower gas permeability giving less emissions and lower costs		PROCESSING
CUT ASSEMBLIES FITTINGS PIECES		PHARMACEUTICAL, MEDICAL, COSMETIC	TRANSFER AND DISTRIBUTION
SMOOTH FLEXIBLE	> High flow/ low flow resistance saving (pump) energy		CLEANING & STERILIZATION
BORE CONVOLUTED BORE			PROCESSING AND FILLING
(HIGH) PRESSURE GAS ULTIPURE	> Flexibility for tighter packaging giving lower material usage and shorter installation time	FOOD & BEVERAGE	TRANSFER AND DISTRIBUTION
			POWER PLANT
BRAKE HOSE MARINE	Better thermal isolation saving energy >	SEMICONDUCTOR & POWER	WIND ENERGY
	> Better cleanability saving waste and energy		MANUFACTURING OF SEMICONDUCTORS
	> Improved durability saving maintenance		FURNITURE
	Reducing weight saving handling time >	INDUSTRIAL MANUFACTURING	INDUSTRIAL ROBOTS
			MANUFACTURING OF TIRES, METALS, PAPER
			MOTOR SPORTS
		VEHICLES	MOTORBIKES & ATV
			MARINE

BRAKE HOSE FLEXIBLE CONVOLUTED BORE SMOOTH BORE (HIGH) PRESSURE GAS MARINE CUT PIECES FITTINGS ASSEMBLIES ULTIPURE

NEXT-GENERATION GREEN PRODUCT SOLUTIONS

FLUID MANAGEMENT

• Light weight & highperformance materials

• Replacing steel and rubber

• First serial orders for Euro7 powertrains

THERMAL MANAGEMENT SYSTEMS

• Highly modular and smart valves with integrated proven Kongsberg Automotive actuator technology

• First development orders within fuel cell applications

INDUSTRIAL APPLICATIONS

• Entering new areas in Industrial

• Ultiflex with unmatched durability and superior cleanability

• From €40m to €100m in sales by 2028

KEY TAKEAWAYS

KA HAS COMPLETED THE PORTFOLIO CLEAN UP AND IS NOW WELL POSITIONED INTRODUCING 5 STRONG, INNOVATIVE AND WELL-BALANCED CORE PRODUCT GROUPS

SOLID CORE BUSINESS WITH AMBITION FOR DOUBLE DIGIT % REVENUE GROWTH CAGR FROM 2024 TO 2028, RESULTING IN EXPECTED REVENUES OF > MEUR 1 BILLION

PRODUCT AND MARKET SPLIT UNIQUELY POSITIONED TO BENEFIT FROM MEGA-TRENDS IN ELECTRIFICATION AND SUSTAINABLE TRANSPORTATION

INDUSTRIAL AREA PRIMED FOR GROWTH WITH PRODUCT LAUNCHES IN NEW MARKET SEGMENTS

BUSINESS WINS HAVE PRIMED THE FORWARD ORDER BOOK FOR FURTHER GROWTH IN KEY GROWTH AREAS

BOLT-ON ACQUISITIONS IN THE COMING YEARS TO STRENGTHEN BUSINESSES IN CORE PRODUCT GROUPS.

Key takeaways

KEY TAKEAWAYS

HIGH FOCUS ON INNOVATION AND IMPROVEMENT

CONTINUED FOCUS ON COST AND FOOTPRINT OPTIMIZATION

LONG-TERM FINANCIAL AMBITIONS 2028 OF REVENUES ABOVE EUR 1.0 BN AND EBIT MARGIN AT OR ABOVE 8.5%

REESTABLISHMENT OF KONGSBERG, NORWAY AS THE HEADQUARTERS

ON THE WAY TO ACHIEVING 100% RENEWABLE ENERGY IN ALL SITES BY 2030 AND CARBON NEUTRAL PRODUCTS BY 2039

BECOME A TECHNOLOGY AND MARKET LEADER WITHIN OUR CORE BUSINESS AREAS

Key takeaways

KEY INVESTMENT HIGHLIGHTS

FOCUSED AND RESILIENT PRODUCT PORTFOLIO

HEALTHY BALANCE SHEET AND SIZEABLE AND SECURE ORDERBOOKS

FIT TO CAPITALIZE ON THE GROWTH WITHIN COMMERCIAL VEHICLES

STRATEGICALLY PLACED IN THE MARKET TO LEVERAGE THE GROWTH OF ELECTRIC VEHICLES

WELL-POSITIONED TO TAKE ON BOLT-ON ACQUISITIONS

LOYAL AND LONG-TERM RELATIONSHIPS WITH TIER1 AND OEM CUSTOMERS