Kongsberg Automotive

Earnings Release • May 12, 2024

Kongsberg Automotive updates its long-term financial ambitions

Kongsberg Automotive updates its long-term financial ambitions

Zurich, May 12, 2024: Kongsberg Automotive's (KA) Board of Directors, along with

the CEO and Executive Management, have updated its long-term financial goals and

established new ambitions for the year 2028.

In the recent months, the Board of Directors, the CEO and Executive Management,

have made a thorough analysis of the company's operational and financial

prospects. The current short-term focus is to reduce structural costs and

increase KA's operational efficiency. The objective is to secure positive

earnings and positive cash flow. The guidance for 2024 is that KA will deliver

earnings growth, absolute positive earnings, and positive cash flow despite flat

revenues. This guidance was given on March 12 when the annual report was

published and reiterated on May 8 when the Q1 results 2024 were published.

Going beyond 2024 the focus is on organic growth and improved profitability.  KA

has successfully won numerous long-term contracts with well-reputed automotive

brand names. This portfolio of contracts ensures that we have a platform for

growth. Albeit our Driveline business - now labelled "non-core" - is set to

decrease, we are confident that KA will deliver sustained organic growth in its

core business. Once a solid earnings platform has been established KA may

consider bolt-on acquisitions as a means to further enhance its growth.

By 2028 we expect that min 70% of our revenues will be linked to commercial

vehicles. At the same time our non-core business will be insignificant in terms

of revenue.

Continued focus on cost control, optimised operational footprint, and higher

sales will lead to improved earnings performance. The ambition is to lift the

EBIT-margin to at least 8.5 % bringing KA in line with best-in-class suppliers

to the automotive industry.

The long-term financial ambitions towards 2028 are as follows (replacing all

previous financial goals that were given at the Capital Markets Day in 2021):

· Revenues, above EUR 1.0bn

· By organic growth, representing a double-digit % CAGR for the core

-business: this being higher than the expected industry growth.

· EBIT margin at or above 8.5%

· Annually improve our earnings performance to reach and maintain an EBIT

-margin of at least 8.5 %.

"KA is seeking to become a technology and market leader within its core business

areas, offering its customers world-class mobility solutions for the future,

creating lasting value for all stakeholders" says KA's President & CEO Linda

Nyquist-Evenrud, adding, "we are optimizing our operations for a more effective

and cost-efficient structure to best serve our customers and to build a more

competitive position in areas we excel.

Media and communications contact:

Therese Sjöborg Skurdal - Director Corporate Communications

therese.skurdal@ka-group.com

+47 982 14 059

Investor Relations contact:

Mads Langaard - Head of Investor Relations

mads.langaard@ka-group.com

+47 905 81 264

About Kongsberg Automotive ASA

Kongsberg Automotive provides cutting-edge technology to the global vehicle

industry. We drive the global transition to sustainable mobility by putting

engineering, sustainability, and innovation into practice. Our product portfolio

includes driver and motion control systems, fluid assemblies, and industrial

driver interface products. Find more information

at:?kongsbergautomotive.com (https://www.kongsbergautomotive.com/)