Kongsberg Automotive

Earnings Release • Nov 8, 2022

KONGSBERG AUTOMOTIVE Q3 2022 EARNINGS CALL

NOVEMBER 8, 2022

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.

AGENDA

EXECUTIVE SUMMARY

MARKET UPDATE FINANCIAL UPDATE SHIFT GEAR UPDATE SUBSEQUENT EVENTS & OUTLOOK Q&A

TODAY'S PRESENTERS

JOERG BUCHHEIM CEO // Zurich (Switzerland)

Kongsberg Automotive Q3 2022 Earnings Call

EXECUTIVE SUMMARY REVENUE IMPROVED. DELEVERAGE ALLOWS FURTHER GROWTH

Comparisons are to 2021 results restated to exclude discontinued operations

€246.0M	€12.9M	2.0x
REVENUES	ADJ. EBIT	LEVERAGE RATIO1,2
Increase of 27.6% vs. Q3 2021	Increase by MEUR 4.8 vs. Q3 2021	Improved from 3.1x in Q3 2021
€128.8M NEW BUSINESS3	€-1.5M FREE CASH FLOW	€132.6M NIBD 4
Decrease from MEUR 198.9	Decrease from the positive FCF	Improved from MEUR 287.1
in Q3 2021	of €16.7m in Q3 2021	as of 30/09/2021

Includes IFRS 16; excluding IFRS 16, leverage ratio is equal to 1.2x in Q3 2022 compared to 2.4x in Q3 2021 NIBD / Adjusted EBITDA (LTM) Lifetime revenue of business wins during the quarter Net Interest Bearing Debt

Segment highlights

AT A GLANCE BUSINESS SEGMENTS UPDATE

ADJUSTED EBIT1 , MEUR ADJUSTED EBIT MARGIN, %

ADJUSTED EBIT1 , MEUR ADJUSTED EBIT MARGIN, %

KONGSBERG AUTOMOTIVE // 5

EXECUTIVE SUMMARY

MARKET UPDATE

FINANCIAL UPDATE SHIFT GEAR UPDATE SUBSEQUENT EVENTS & OUTLOOK Q&A

MARKET TRENDS HIGHER ACTIVITY OBSERVED FOR PASSENGER CARS

MARKET DEVELOPMENT

GLOBAL TRUCK PRODUCTION, thousand units

REGION	Q3-22 vs. Q3-21	2022 vs. 2021
China	+24.6%	+3.8%
APAC w/o China	+25.5%	+7.7%
Europe	+22.4%	-0.6%
North America	+25.3%	+11.7%
South America	+34.8%	+7.3%
Rest of World	+47.4%	+18.7%
Total	+25.6%	+5.7%
Total (excl. China)	+26.1%	+6.6%
China	-26.9%	-45.4%
APAC w/o China	+13.2%	+11.7%
Europe	+20.1%	-0.2%
North America	+17.0%	+7.0%
South America	+8.4%	+2.4%
Rest of World	+6.6%	+22.9%
Total	+1.3%	-17.0%
Total (excl. China)	+15.5%	+6.2%

Source: IHS Light Vehicle Production Base (September 2022); LMC Global Commercial Vehicle Forecast (Q3 2022)

CHALLENGING GLOBAL MARKET SITUATION HIGHER ENERGY PRICES ADDING TO INCREASED RAW MATERIAL PRICES

KONGSBERG AUTOMOTIVE // 8

MACROECONOMIC UNCERTAINTY STILL POSITIVE DEVELOPMENT FOR COMMERCIAL VEHICLES

REVENUE GROWTH VS MARKET GROWTH* OUTPERFORMANCE IN KEY MARKETS

• > Lower revenues in passenger cars in Asia as expected due to one customer changing product line. This was communicated to KA a long time ago, and KA has therefore increased sales efforts towards other customers. This will impact positively in Q4 and onwards.
• > The European truck market has increased 30% YoY. Volvo and Scania, some of KA's biggest customers, have increased their market share and sales this year.
• > Strong growth within commercial vehicles, where KA also outperformed the market.
• > Europe is KA's biggest region within CV and was the region with the strongest growth.
• > The substantial increase in "other" is due to a general recovery in the market from Q3 2021.

* Change in revenue at constant currencies, and changes to vehicle production levels for selected regions and markets, from Q3 2022 to Q3 2021. The split across vehicle types does not correspond to our business unit segments – see p. 7 and 8 in the quarterly report for details.

Market update

BOOK-TO-BILL SALE TO BRP IMPACTING ORDER BOOK. CUSTOMERS HAVE BEEN CAUTIOUS DUE TO THE MACROECONOMIC UNCERTAINTY

BOOK-TO-BILL PERFORMANCE, MEUR

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

EXECUTIVE SUMMARY MARKET UPDATE

FINANCIAL UPDATE

SHIFT GEAR UPDATE SUBSEQUENT EVENTS & OUTLOOK Q&A

Financial update

REVENUES ALL-TIME HIGH REVENUES IN Q3

QUARTERLY REVENUES (continuing operations), MEUR

Quarterly revenues in 2022 include significant positive translation effects. On the current currency basis, quarterly revenues are as follows:

• Q1 2022: MEUR 209 (positive translation effects of MEUR 10.3)
• Q2 2022: MEUR 213 (positive translation effects of MEUR 13.2)
• Q3 2022: MEUR 226 (positive translation effects of MEUR 19.7)

Financial update

ADJUSTED EBIT EARNINGS IN ACCORDANCE WITH GUIDANCE

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

KONGSBERG AUTOMOTIVE // 13

Q3 2022 EARNINGS ADJUSTED EBIT AND NET PROFIT INCREASED, DESPITE HIGHER COSTS

ADJUSTED EBIT (continuing operations), MEUR

NET INCOME DEVELOPMENT (continuing operations), MEUR

Financial update

NET FINANCIAL ITEMS

CONTINUING OPERATIONS

KONGSBERG AUTOMOTIVE // 15

FREE CASH FLOW

FREE CASH FLOW1 (continuing operations), MEUR

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.

Q3 2022 FCF DETAILS

Operating activities	+7.5
Therein: NWC increase (continued only)	-8.9
Investing activities	-7.0
Financing activities	-18.2
Therein: Payments of interests and lease liabilities	-3.1
Payment of interests on bond	-5.0
Share buy-back	-9.9
Currency and translation effects on cash flow	+7.0
Total	-10.7
excluding share buy-back and others	+9.2
FCF	-1.5

Financial update

TOTAL CASH FLOW YTD Q3 2022

CONTINUING AND DISCONTINUED OPERATIONS

TOTAL CASH FLOW QTD Q3 2022 CASH FLOW INCLUDING SHARE AND BOND BUY-BACK

CONTINUING AND DISCONTINUED OPERATIONS

TOTAL CASH FLOW, MEUR

Financial update

LIQUIDITY DEVELOPMENT SOLID LIQUIDITY ENABLES FURTHER GROWTH

CONTINUING AND DISCONTINUED OPERATIONS

LIQUIDITY DEVELOPMENT, MEUR

Cash Unutilized Securitization facility Undrawn RCF

Financial update

FINANCIAL RATIOS

CONTINUING AND DISCONTINUED OPERATIONS

ADJUSTED ROCE2 ADJUSTED GEARING RATIO1,2, NIBD3/ADJUSTED EBITDA, LTM , %, LTM

EQUITY RATIO, %

CAPITAL EMPLOYED3, MEUR

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, they are impacted by the capital increases in Q2 and Q3 2020 EXECUTIVE SUMMARY MARKET SUMMARY GROUP FINANCIAL UPDATE

SHIFT GEAR UPDATE

SUBSEQUENT EVENTS & OUTLOOK Q&A

Shift Gear update

INCREASING CONTRIBUTION FROM PERFORMANCE IMPROVEMENT MEASURES

FY 2022 MEASURE IMPACT DEVELOPMENT BY CALENDAR WEEK, MEUR > Performance improvements

PERFORMANCE IMPROVEMENT GEAR I

• offsetting majority of the supply chain, inflation, and volumes effects
• > MEUR 46 contribution YTD September, expected FY benefits of MEUR 59 in 2022
• > Improvements include commercial excellence, operational efficiency improvements and overhead cost reductions
• > KA successfully achieved fair price increases and cost sharing with our major customers and partners

Shift Gear update

COST INCREASE GAP CLOSED BY 84%

ESTIMATE FY 2022

ESTIMATED ACHIEVMENT:

> Total recovery of cost increases/ variances through successful claims to customers 84%

NEXT STEP:

> Negotiate terms & conditions with customers and suppliers to normalize logistics and bring back manufacturing planning stability to pre-crisis efficiency levels

Q&A

SUBSEQUENT EVENTS & OUTLOOK

EXECUTIVE SUMMARY MARKET SUMMARY GROUP FINANCIAL UPDATE SHIFT GEAR UPDATE

AT A GLANCE DIVESTMENTS AND DISCONTINUED OPERATIONS

> On October 3, 2022, KA successfully completed the sale of a part of the Shawinigan operations (a part of the Off-Highway business unit) to BRP (Bombardier Recreational Products Inc.) through a subsidiary for an enterprise value of MCAD 136.0. KA received the initial purchase price proceeds of MCAD 128.3, subject to further adjustments. Based on the initial purchase price proceeds, the gain after tax on this sale transaction amounts to MCAD 46.6 (MEUR 36.2).

• > The Shawinigan plant produces sensors, actuators, power steering and other parts for powersports applications, largely dedicated to one single client, BRP.
• > The transaction allows BRP to vertically integrate. KA will focus the freed-up resources on scaling up within Specialty Products (off-highway markets), such as agriculture, construction, material handling and further new markets.

SIZE OF BUSINESS

TRANSACTION VALUE €~74M UNIT REVENUE (FY22 EST) €9M ADJ. EBIT (FY22 EST) FULL YEAR FORECAST RESULTS

IMPACT OF DIVESTMENT

€104M TRANSACTION VALUE

MARKET FORECASTS

Source: IHS Light Vehicle Production Base (September 2022); LMC Global Commercial Vehicle Forecast (Q3 2022)

GLOBAL PASSENGER CAR PRODUCTION, sales in million units, excluding China

GLOBAL TRUCK PRODUCTION, sales in thousand units, including China GLOBAL TRUCK PRODUCTION, sales in thousand units, excluding China

KONGSBERG AUTOMOTIVE // 26

ICE VS EV MARKET SHARE DEVELOPMENT ICE STILL VERY IMPORTANT, AND A GROWTH MARKET IN CERTAIN REGIONS

Market source: PV; IHS Septemberforecast. CV; KGP Automotive Intelligence

EXPECT TO FURTHER OUTPACE THE MARKET IN REVENUE GROWTH AND IN TRANSITION SPEED TOWARDS ELECTRIC VEHICLES

SEGMENT GROWTH RATES 2022-2026 P&C 7% - 9% 10% - CAGR	SPP 12%	SPP GROWTH TOWARDS EV 2022-2026 78% - 141% CAGR
SEGMENT/UNIT PROFITABILITY 2022-2026 ONH DRL 6% - >8% 3% - 5% ADJUSTED EBIT MARGIN	SPP 14% - 16%	P&C GROWTH TOWARDS EV 2022-2026 19% CAGR

SALES CAGR FOR ICE AND EV FOR 2022-2026

KA WILL GROW MORE THAN THE MARKET TOWARDS EV WITHIN CV AND PASSENGER CARS

• > On average, KA will grow more than the market towards EV within commercial vehicles and passenger cars.
• > At the same time KA is working on downsizing focus and products within the ICE segment
• > P&C plans for a 19% growth within EV, while targeting an annual decrease within ICE of 7%
• > The Flow Control Systems business unit, looks for a growth of 78% (couplings) to 141% (hoses), while exiting ICE of 1 to 5% annually.

Note that SPP is coming from low levels.

OUTLOOK 2022 TOP LINE GUIDANCE REITERATED, EBIT GUIDANCE SLIGHTLY ADJUSTED

GLOBAL SITUATION	KA SITUATION	GUIDANCE SLIGHTLY ADJUSTED
We have seen a drop or stabilization for many raw material prices the last quarter, but as prices have dropped, the global inflation has led to accelerating electricity, labor, and rental costs. All having an effect on KA's profitability, to some extent.	> Despite the challenging macro environment, we have a healthy and experience order book, increased interest for our most profitable products > The volatile ordering behavior of our customers and the related cost effects remain the biggest challenge for Q4 > Around 40% of KA's direct costs	Despite the challenging macro > environment, we stick to our top line guidance from Q2 but lower our EBIT assumptions slightly with MEUR 3. » Revenue between MEUR 870 and 905 »Adjusted EBIT between MEUR 35 and 41 from 38 and 45 > We have based these targets on the latest automotive industry production forecasts combined with internal modelling

are from countries which do not

experience the same inflation levels as we see in mainly EU

NOTE REGARDING GUIDANCE: A prolonged or worsening geopolitical situation could result in further lasting consequences for production, supply chains and demand which are not currently reflected in our forecasts. In addition, the ongoing COVID-19 pandemic and the related supply situation could give rise to further negative effects. Depending on the severity of these disruptions, this may resultin lower sales and earnings than currently expected for KA Group.

DELIVER AS PROMISED ON THE CMD 2021

Generate flexibility

Continuing our commitment

• > CAPEX to fuel organic growth and innovation
• > Accelerate productivity improvement measures
• > Investments into environmental footprint

> M&A

Stay flexible with room for maneuver

Q&A

EXECUTIVE SUMMARY MARKET SUMMARY GROUP FINANCIAL UPDATE SHIFT GEAR UPDATE SUBSEQUENT EVENTS & OUTLOOK