Kongsberg Automotive

Earnings Release • Aug 9, 2022

Revenue increased despite significant headwinds; earnings reduced by cost pressures - guidance maintained as outlook improving

Revenue increased despite significant headwinds; earnings reduced by cost pressures - guidance maintained as outlook improving

Revenues from continuing operations were up 4.7% compared to Q2 2021, while

adjusted EBIT was reduced to EUR 4.0 million by the ongoing disruptions in the

automotive supply chain and the abnormally high costs of e-components, raw

materials and freight.

Zurich, August 9, 2022: Kongsberg Automotive ASA ("Kongsberg Automotive") has

published its results for the second quarter 2022 today. The results show

continued resilience in the face of difficult market conditions. All the

financial information in this press release refers to the continuing operations

of the company, as the ICS and LDC business are accounted for separately as

discontinued operation:

· Revenue from continuing operations amounted to MEUR 225.6 in Q2 2022, MEUR

10.2 (+4.7%) higher than last year's second quarter, including positive currency

translation effects of MEUR 13.2. This was equally driven by both segments,

Specialty Products and Powertrain & Chassis.

· Adjusted EBIT amounted to MEUR 4.0, which was MEUR 8.9 lower than in Q2

2021. This significant decline in profitability was mainly driven by the

abnormally high costs of raw materials, electronic components and freight caused

by the semiconductor supply-chain bottlenecks and by higher inflation.

· Lifetime business wins revenues in the quarter amounted to MEUR 167.9 (MEUR

54.4 in annualized revenue).

· On April 6, 2022, Kongsberg Automotive has successfully completed the sale

of its Light Duty Cable (LDC) business unit to Suprajit Engineering Limited for

an enterprise value of MEUR 37.7. The Q2 2022 net profit from discontinued

operation of MEUR 3.4 contains the initial net profit on this transaction of

MEUR 0.4.

The company maintains its guidance for adjusted EBIT, despite the pressure on

earnings in the first half of the year, as production forecasts indicate

increased activity in the second half of the year and higher contributions from

the company`s improvement program SHIFT GEAR are expected. Revenue forecast has

been reduced as a direct result of the divestment of the Shawinigan plant, but

this is not expected to negatively impact adjusted EBIT.

Comment from the CEO:

"The interruptions to the automotive industry continued in the second quarter,

and our operations were not exempted. Interruptions to production in Asia were

especially significant, with COVID-19 lockdowns causing significant reductions

for both passenger and commercial vehicles. The war in Ukraine and subsequent

disruption to supply chains have made customers' lives difficult. This has at

times reduced their demand for our products, or required great flexibility in

our deliveries. The elevated level of raw material prices, labor cost inflation

and freight expenses has pressured our bottom line. In this environment, we are

pleased to have delivered revenues better than in any previous quarter, and that

the improvements we have been making have kept us profitable.

Shift Gear program has helped prepare us for uncertain times, even as we expect

global vehicle production to increase again from later this year and into the

future. The Shift Gear performance improvements have reduced the impact of

higher prices, but will carry through to future quarters, making us more

efficient going forward. We have now completed the divestments of our Interior

Comfort Systems business unit and Light Duty Cables business unit, both of which

have closed as of the reporting date. This, together with the announced

divestment of our Shawinigan plant, creates the foundations for our future

development, as we invest in our portfolio to make sure that we can truly drive

the global transition to sustainable mobility."

Financial highlights

REVENUES

Group revenues from continuing operations amounted to MEUR 225.6 in the second

quarter of 2022, being higher than the revenues in the second quarter of 2021 by

MEUR 10.2 (+4.7%), including positive currency translation effects of MEUR 13.2.

The decrease at constant currencies is attributable to both, the passenger car,

and commercial vehicles market.

ADJUSTED EBIT / EBIT

Adjusted EBIT from continuing operations was MEUR 4.0 in the second quarter

2022, lower by MEUR 8.9 than in Q2 2021. The overall positive operational

performance was generally stable but still notably offset by rapidly increasing

raw material costs (resin, brass, and steel), electronic components and

associated freight costs resulting directly from the significant disruptions in

the supply chain throughout the automotive sector and indirectly from the

consequences of the war in Ukraine in higher inflation rates worldwide.

Operating profit in Q2 2022 amounted to MEUR 2.0, compared to the operating

profit of MEUR 13.0 in Q2 2021.

CASH AND LIQUIDITY

The change in cash in Q2 2022 attributable to the whole Group amounted to MEUR

85.8 compared to the balance as of December 31, 2021. The cash position was MEUR

144.1 at the end of the quarter. The liquidity reserve was MEUR 218.7 at the end

of the quarter, compared to MEUR 140.9 as of December 31, 2021. During the

second quarter of 2022 the unutilized Securitization facility was reduced to

MEUR 25.0.

Earnings presentation - conference call

The company will hold an earnings conference call at 09:00 CEST on August 9,

2022. Conference call registration is available at the company's webpage or the

following link:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220809_1 (https://chan

nel.royalcast.com/hegnarmedia/%23!/hegnarmedia/20220809_1)

Media contact

Therese Sjoborg Skurdal

E-mail: therese.skurdal@ka-group.com (therese.skurdal@ka

-group.com?subject=CFO%20Frank%20Heffter)

Phone: +47 982 14 059

Investor contact

Jakob Bronebakk

E-mail: jakob.bronebakk@ka-group.com

Phone: +47 906 39 637

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/)