Kongsberg Automotive

Investor Presentation • May 9, 2023

KONGSBERG AUTOMOTIVE Q1 2023 EARNINGS CALL MAY 9, 2023

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 2021 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

JOERG BUCHHEIM

CEO // Zurich (Switzerland)

FRANK HEFFTER

CFO // Zurich (Switzerland)

AGENDA

EXECUTIVE SUMMARY MARKET UPDATE FINANCIAL UPDATE SHIFT GEAR UPDATE OUTLOOK Q&A

Executive summary

EXECUTIVE SUMMARY – Q1 2023 REVENUES CONTINUING THE POSITIVE TREND SLOW START TO EARNINGS AND CASH FLOW

¹ Includes IFRS 16; excluding IFRS 16, leverage ratio is equal to 0.4x in Q1 2023 compared to 1.7x in Q1 2022

² NIBD / Adjusted EBITDA (LTM)

³ Lifetime revenue of business wins during the quarter

⁴ Net Interest Bearing Debt

• Kongsberg Automotive maintains its solid revenue growth plan

• Despite prolonged COVID effects impacting also 2023, KA's strategic initiatives bring the company back on track for initial CMD targets in 2025, a delay of two years

• …while continuously progressing on its transformation plan

• Cash flow mainly impacted by working capital, FX and onetime tax payments

Executive summary

AT A GLANCE BUSINESS SEGMENTS UPDATE

• > Q4 2022 with high customer compensations
• > Q1 2023
  • » P&C remains on low levels with improvement measures yet to take full effect
  • » Labor price increases combined with special freights
  • » 4.6 MEUR based on the "China effect" (revenue drop)
  • » Prolonged COVID effect of ≥ 0.5 MEUR (semiconductor in the US)

> KA initiatives for value creation

• » Charging out supplier price increases to customer (Q2-Q4)
• » Rightsizing of organization, footprint optimization (Shift Gear China)
• » Redesign on semiconductor
• » Promotion of our new SMART Actuator Technology (increased focus in China)

Executive summary

AT A GLANCE BUSINESS SEGMENTS UPDATE

> Q3 2022 with high customer compensations

> Q1 2023

> Despite fading but still noticeable prolonged COVID effects (≥ 0.3 MEUR -Labor efficiency and inflation w/ US/UK factories) and effect of BRP sale, improvement in EBIT margins are "kicking in"

> KA initiatives for value creation

• > Charging out supplier price increases to customer (Q2-Q4)
• > Further operational improvements like outlined in Shift Gear "CIP"
• > People Development and Commitment Program (HR)
• > Advanced training initiative started to pull efficiency

THE "CHINA EFFECT" A SET OF NEXT-GENERATION SMART ACTUATORS COMBINED WITH SPECIFIC COUNTERMEASURES WILL HELP KA ADDRESS THE "CHINA EFFECT"

REVENUES, MEUR

ALREADY ACCOUNTED FOR IN OUR GUIDANCE

In Q1, KA was affected by a revenue drop 20 MEUR in China (2022 2023) caused mainly by:

• > Short term, temporary lower car sales compared to plan
  • » To start to improve according to Market Forecasts Institutes from Q2/Q3 and onwards
• > Short term, temporary product mix effect in P&C as premium truck expected to recover slightly later, from second half of 2023. An area where KA is usually very successful in partnerships with some strong Tier 1's
  • » CV market is expected to significantly increase from the second half onwards
• > Government regulation changes within the DRIVELINE business where ARC Actuators potentially get substituted by Electrical Park Brakes.
  • » Revenue decline will be more than offset by KA's next generation SMART Actuators, with major focus on trucks

The above effects led to a gap of 4.6 MEUR on adj. EBIT in Q1, and up to 10 MEUR for the entire year.

TEMPORARY

STRUCTURALLY SOLVED BY KA'S SMART ACTUATORS

COUNTERMEASURES ALREADY INITIATED CONSOLIDATION, "MOVE WEST" IN CHINA AND SMART ACTUATORS

CONSOLIDATION OF TEAMS	MOVE WEST – RELOCATION OF SHANGHAI PLANT	SMART ACTUATORS
…leads to overhead cost reduction of	…leads to more business and cost savings totaling	…leads to broader portfolio in line with electrification trend – key focus Commercial Vehicles
1,1 MEUR in 2023, while improving performance	0,75 MEUR in 2023 w/ annual impact ≥ 1 MEUR long term	First two contracts already awarded in China - leading to in 2025 5,6 MEUR sales
w/ annual impact ≥ 1,5 MEUR long term	>> SEE A DETAILED MAP ON THE NEXT SLIDE	Further expansion potential

COUNTERMEASURES – "MOVE WEST" IN CHINA

Growth runway

FOOTPRINT OPTIMIZATION FOCUSING ON CAPACITY, GROWTH AND COSTS ACROSS ALL REGIONS

18 COUNTRIES WORLDWIDE 33 LOCATIONS ~5300 EMPLOYEES

Growth runway

NEW STATE OF THE ART DIGITALIZED FACTORIES FOR SUPPORTING AMBITIOUS GROWTH INCREASING EXPOSURE IN LOW-COST COUNTRIES

BRZESC KUJAWSKI (POLAND)

GROWTH AND CONSOLIDATION AT BEST COST

6 100 M² FLOW CONTROL SYSTEMS

OPERATIVE SINCE: Q4 2022

SHIYAN (CHINA)

COST IMPROVEMENT

2 800 M² POWERTRAIN & CHASSIS

IN SELECTION PHASE OPERATIVE FROM: Q1 2024

RAMOS ARIZPE (MEXICO)

GROWTH AND CONSOLIDATION AT BEST COST

8 100 M² FLOW CONTROL SYSTEMS

UNDER CONSTRUCTION OPERATIVE FROM: Q4 2023

GREATER DELHI (INDIA)

CAPACITY EXTENSION REQUIRED

7 800 M² POWERTRAIN & CHASSIS FLOW CONTROL SYSTEMS

IN SELECTION PHASE OPERATIVE FROM: Q1 2024

ON TRACK WITH THE SYSTEMATIC GROWTH PLAN FROM 2021

Growth runway

CONCEPT

PRODUCT

COMMERCIALIZATION

NEXT-GENERATION GREEN PRODUCT SOLUTIONS IN OFH, EV, AND INDUSTRIAL GROWTH MARKET SEGMENTS 4

NEW PRODUCTS FOR GROWTH IN EV APPLICATIONS INCREASING EXPOSURE TO COMMERCIAL VEHICLES AND OFF HIGHWAY

SPECIALTY PRODUCTS

NEWLY RELEASED NEXT-GENERATION PRODUCT PORTFOLIO WILL BOOST KA'S EXPOSURE TO EV SIGNIFICANTLY

2022-2026 CAGR FOR EV AND ICE IN KA'S P&C AND SPP AREAS

MARKET TRENDS DELAYED MARKET RECOVERY IN CHINA

MARKET DEVELOPMENT

REGION	Q1-23 vs. Q1-22	2023 vs. 2022
China	-10.8%	+25.9%
APAC w/o China	-2.3%	0.0%
Europe	+4.8%	+5.5%
North America	+13.8%	-1.7%
South America	-25.0%	-28.0%
Rest of World	+28.8%	+1.2%
Total	-2.5%	+6.2%
Total (excl. China)	+2.1%	-1.5%
China	-7.8%	0.0%
APAC w/o China	+11.4%	+5.2%
Europe	+17.2%	+7.0%
North America	+9.8%	+5.2%
South America	+14.5%	+4.5%
Rest of World	-9.8%	+4.7%
Total	+5.7%	+3.8%
Total (excl. China)	+11.9%	+5.7%

MARKET FORECASTS GROWTH IN COMMERCIAL VEHICLE DEPENDS 60% ON CHINA

GLOBAL PASSENGER CAR PRODUCTION, sales in million units

DEVELOPMENT OF THE GLOBAL MARKET SITUATION COMPONENT AVAILABILITY AND MATERIAL COST REMAIN VOLATILE

MACROECONOMIC UNCERTAINTY POSITIVE DEVELOPMENT FOR KA WITHIN COMMERCIAL VEHICLES IN KEY REGIONS

* Change in revenues at constant currencies and changes to vehicle production levels for selected regions and markets from Q1 2022 to Q1 2023. The split across vehicle types does not correspond to our business unit segments – see p. 7 and 8 in the quarterly report for details.

REVENUE GROWTH VS MARKET GROWTH IN Q1* OUTPERFORMANCE IN KEY MARKETS

• > KA has outperformed the growth in the commercial vehicle market in both Europe and the Americas for a second quarter in a row.
• > KA's revenues in the European commercial vehicles market increased 31.5% YoY. One of KA's biggest customers has significantly increased its market share and production compared to Q1 2022.
• > KA's revenues within the commercial vehicle segment in the Americas increased by 41.5% YoY. Two of KA's major OEM's have increased their market share and production compared to Q1 2022.
• > KA's sales in passenger vehicles market were mainly impacted by government regulations and increasing local competition in China
• > The decrease in "other" is related to the sale of the Powersport business to BRP completed in Q4 2022, hence it is not included in the Q1 2023 revenues.

BOOK-TO-BILL DESPITE MACROECONOMIC UNCERTAINTY KA IS ON TRACK AND EXPECTS STRONGER BOOKINGS IN COMING QUARTERS

BOOK-TO-BILL PERFORMANCE, MEUR

• > New wins are more weighted towards Q3 and Q4, this follows the OEM's nomination timings
• > OFH with a great new business on Electrical Power Steering
• > Couplings is on overall with track and expect strong bookings in the later quarters
• > KA has a realistic potential to increase the book to bill ratio to 1,3

AWARDS in strong growth areas

PTFE - Swagelok / Industrial = €31m

Changan Group / Arc Actuator = €26m

Stellantis / Warp Actuator = €25m

Renault Mitsubishi / Shifter Cables = €16M

JLR / Air Suspension Lines = €9M

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

Financial update

REVENUES POSITIVE REVENUE TREND IN Q1

QUARTERLY REVENUES (continuing operations), MEUR

ADJUSTED EBIT EARNINGS IMPACTED BY THE "CHINA EFFECT" AND PRODUCT MIX

QUARTERLY ADJ. EBIT (continuing operations), MEUR and % of revenues

ADJUSTED EBIT BRIDGE FROM Q1 IMPACTS FROM UNFAVOURABLE REGIONAL & PRODUCT MIX AND ELEVATED COST

ADJUSTED EBIT (continuing operations), MEUR

ADJUSTED REVENUES (continuing operations), MEUR

P&C

• > Sales in Europe and the Americas increased by MEUR 23.0; adjusted EBIT increased by MEUR 2.5.
• > Sales in APAC (excl. China) increased by MEUR 0.8 with adjusted EBIT slightly declining by MEUR 0.7 based on less favorable product mix.
• > Sales in passenger car market in China declined by MEUR 10.2 (-46%) and adjusted EBIT decreased by MEUR 4.6.

SPP

• > Sales of FCS grew by MEUR 13.8 (+19.3%); adjusted EBIT decreased by MEUR 1.1 due to inefficiencies.
• > Excluding the sales from the business divested to BRP (MEUR 19.9 with slight impact on adjusted EBIT), OFH sales grew by MEUR 5.3 while adjusted EBIT stayed almost stable.

KONGSBERG AUTOMOTIVE // 27

Financial update

NET INCOME BRIDGE WEAKENING OF THE NOK AFFECTS THE BOTTOM LINE

1.8 -0.9 -3.5 Restructur. Costs Currency gains/losses -3.5 +3.6 Q1 2022 Interests +1.1 Adj. EBIT -16.9 Other Financial items -15.5 Tax Q1 2023

NET INCOME (continuing operations), MEUR

INTERESTS AND OTHER FINANCIAL ITEMS

• > Interest expense reduced (MEUR +0.8) due to bond repurchase and higher interest income (MEUR +0.3)
• > Other financial items in Q1 2022 were impacted by onetime expenses in relation to bond repurchase.

CURRENCY LOSSES (-11.2 MEUR/Q123 vs. +4.3 MEUR/Q122)

• > This was predominantly driven by unrealized foreign exchange losses on an intercompany loan of MEUR 200 in Norway. As the NOK weakened by 8% against the EUR in Q1 2023, while it appreciated by 4% in Q1 2022.
• > Analysts expecting a strengthening of the NOK over the summer

TAX

> Compared to Q1 2022 the tax expense increased by MEUR 3.5. The tax expense of MEUR 6.1 consists of MEUR 1.0 of current taxes with the remainder being withholding taxes of MEUR 0.5 and deferred taxes of MEUR 4.6.

Financial update

NET FINANCIAL ITEMS

OTHER FINANCIAL ITEMS, MEUR NET INTERESTS, MEUR

FREE CASH FLOW DECREASED CASH POSITION DUE TO FX, BUILD UP OF RECEIVABLES AND WEAKER MARGINS

FREE CASH FLOW1, MEUR

Q1 2023 FCF DETAILS

1. Free Cash Flow is measured based on sum of cash flow from operating activities, investing activities, financial activities and currency effects on cash (together described as change in cash), excluding net draw-down/repayment of debt and proceeds received from capital increase/purchase of treasury shares.

Financial update

LIQUIDITY DEVELOPMENT

NET WORKING CAPITAL, TAX PAYMENTS RELATED TO DIVESTMENTS, NEGATIVE FX AND SHARE BUY-BACK

Financial update

NET WORKING CAPITAL RECEIVABLES IN LINE WITH REVENUE DEVELOPMENT

The Increase of new working capital in Q1 2023 was mainly driven by:

• > Increase in accounts receivables amounting to MEUR 17.8 on the back of higher revenues
• > Increase in inventory amounting to MEUR 8.5, driven by bank-build ahead of moves and preparation for volume increases in the wire harnesses and headrests businesses

The inventory increase was more than offset by an increase in trade payables in the amount of MEUR 11.1.

1. Outstanding balances of Trade Receivables and Trade Payables that were not part of the divestitures are excluded.

FREE CASH FLOW ACTIVITIES TO IMPROVE CASH FLOW PERFORMANCE THROUGHOUT 2023

INVENTORY:

• > Resolve PCBA and other component shortages
• > Stringently reduce bank build inventory following the moves
• > Work through "last buys" and "buys ahead of price increases"
• > Safety stock reduction through ABC/XYZ analysis
• > Triangle optimization (overtime, premium freight, cost of inventory)
• > Nearshoring / localization through resourcing

ACCOUNTS RECEIVABLES:

• > Expedite price adjustments in SAP, a root cause for delayed payments
• > Continue chasing overdue receivables, enforce through legal actions
• > Fix EDI Interface
• > Selected renegotiation of payment terms
• > Fast escalation to Group CFO

ACCOUNTS PAYABLE:

• > Renegotiate payment terms and incoterms
• > Increase consignment stock arrangements
• > Evaluate supplier financing

CAPEX:

• > Limit spend to "must haves"
• > Early involvement of Indirect Purchasing
• > Consider second hand equipment

EBITDA:

• > Execute on ComX measures
• > Flawless realization of CIP Operations projects
• > Re-installation of "Spend Control Tower"

Financial update

FINANCIAL RATIOS

CONTINUING AND DISCONTINUED OPERATIONS

ADJUSTED ROCE2 ADJUSTED GEARING RATIO 1,2, NIBD3/ADJUSTED EBITDA, LTM , %, LTM

1. Adjusted EBITDA refers to continuing operation only 2.Excluding restructuring costs 3. Net interest-bearing debt 3.Capital employed at quarter end; as the indices are calculated based on the figures from last 12 months

CAPITAL EMPLOYED3, MEUR

Shift Gear update

SHIFT GEAR I Q1 2023 RESULTS

• > KA successfully established a digital tracking tool which provides a full "on time" transparency. This allows faster reaction to pass costs to customers.
• > Q1 with historically more negative than positive effects as supply chain price increases and inflation materialize, which will be charged out to customers time delayed in Q2-Q4.
• > Negative impacts are expected to follow a decreasing quarterly trend. For the entire year, we clearly expect an outperformance by around 5 MEUR min.

IMPROVEMENT PROJECTS FOR 2023 – GENERATING ADDITIONAL SAVINGS

In 2023 KA is implementing more than 320 Continuous Improvement Projects initiatives globally

• > Fully automatized low runner couplings assembl process
• > Significantly reduced assembly cycle time
• > Improved and consistent quality finished product

P&C VRABLE AUTOMATION OF CABLE OVERMOLDING

148 kEUR YEARLY FINANCIAL SAVINGS:

• > Robotized loading and unloading parts from pre-loaded trays
• > Reduction of scraps due to misplaced inserts
• > Quality assurance checks automated using cameras

P&C MULLSJÖ MACHINING AND MOLDING FLOW OPTIMIZATION

70 kEUR YEARLY FINANCIAL SAVINGS:

• > Improved production flow by process grouping
• > Reduced distance between production and assembly
• > Minimized workforce needed for staffing and transport

OFH WILLIS AUTOMATIC SOLDERING ROBOTS

• > Soldering robots connect electronic components
• > Improved precision and efficiency of the process
• > Better quality ensured through automation soldering

DEVELOPMENT SINCE THE CAPITAL MARKETS DAY IN 2021 ADJUSTED FOR DIVESTMENT TO BRP - CMD TARGET ACHIEVEMENT DELAYED BY TWO YEARS

CMD TO 2023 GUIDANCE BRIDGE, MEUR and % of revenues

OUTLOOK

ON TARGET TO MEET GUIDANCE

KA reiterates its full year guidance of revenues and adjusted EBIT of MEUR 880-900 and MEUR 25-30, respectively, despite the year´s slow start.

GROWTH PATH

• > FCS to grow 18% in 2023
• > ONH to grow by 19% in 2023
• > Strategic relocations in core markets
• > Promising outlook for new business awards

COST OPTIMIZATION

• > ComX 15 MEUR cost hand through to OEM' s from
• second half onwards > Launched prolonged COVID variances initiative with a target to get 10 MEUR out until end of 2023
• > Overhead cost optimization of up to 10 MEUR by year end

UNLOCKING ADDITIONAL VALUE THROUGH STRATEGIC REVIEW

In Q2 2023, KA has started the strategic review of the company. The aim of the review is to evaluate options to maximize future shareholder value.

For this purpose, KA has engaged the investment banks Rothschild & Co and ABG Sundal Collier.

UPCOMING EVENTS FOR Q2

KA is pleased to invite its shareholders to the Annual General Meeting (AGM) on June 6, 2023.

Invitations, including the proposal to redeem the repurchased shares, will be sent out next week

The meeting will be held digitally.

SUPPORTING THE GUIDANCE

MOBILITY SOLUTIONS FOR THE FUTURE