Kongsberg Automotive

Regulatory Filings • Aug 9, 2022

Kongsberg Automotive divests a part of its Shawinigan operations to BRP

Kongsberg Automotive divests a part of its Shawinigan operations to BRP

Zurich, August 9, 2022: Kongsberg Automotive ASA and its subsidiary Kongsberg

Inc (henceforth referred to as KA) have entered into a definitive agreement for

the sale of a part of its Shawinigan operations (henceforth referred to as KA

Shawinigan) in Canada to BRP for a total enterprise value of CAD 136 million

(EUR 104 million).

KA provides cutting-edge technology and engineering to the global vehicle

industry. KA Shawinigan specializes in the production of a wide range of

products for powersports applications, such as sensors, actuators, electronic

power steering, wire harnesses, dashboard assemblies, etc.

In 2021, as a part of its Shift Gear transformation program, initiated by

President & CEO Joerg Buchheim, KA started to modernize its product portfolio

with a target to grow and increase profits towards double-digit margins by

2024/25. Additionally, KA continues to improve operationally and evaluate and

develop strategies to deal with the global semi-conductor supply situation and

reduce vulnerabilities.

The divestment of the Interior business segment in 2021, and the sale of a part

of the Shawinigan operation is a part of KA's ongoing strategy to execute the

transformation roadmap and react flexibly to market and customer trends. With

this, KA will continue to actively scale up its presence in on-highway,

agriculture, and construction sectors within the Off-Highway business unit, as

well as the segments we excel at including Couplings, Fluid Transfer Systems,

and Powertrain & Chassis. This transaction will provide additional net proceeds,

which will allow KA to explore new markets, drive innovation, and invest in

growth.

Joerg Buchheim, KA's President & CEO says, "BRP and KA have a strong

relationship and a long history of collaboration. KA Shawinigan is almost solely

dedicated to BRP. Therefore, the products KA Shawinigan supplies are highly

customized. With this sale, BRP will fulfill its strong wish to vertically

integrate KA's product portfolio. We look forward to continuing our relationship

with BRP on future business opportunities out of our other US-based Off Highway

business unit location."

"Over the years, we have built a strong relationship based on trust and shared

values with KA. We are very enthusiastic about this acquisition as we expect

that it will enable us to gain further expertise in mechatronics. We look

forward to welcoming highly trained and skilled employees from Shawinigan who

are already specialized in developing and manufacturing key components for many

of our product lines," says José Boisjoli, President and Chief Executive Officer

of BRP.

With this sale, approximately 300 employees will be integrated into BRP. KA will

establish Shawinigan Tech Center in Canada, which will serve as a center of

competence in electronics and software.

The anticipated sale, subject to customary closing conditions, is expected to be

completed by the end of Q3 2022.

KA invites you to a media and investors presentation on August 9, 2022 at 10:45

(CET) 04:45 (EST) to be followed by a Q&A session. To join the conference call

use this link: https://channel.royalcast.com/landingpage/hegnarmedia/20220809_2/

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 (http://www.kongsbergautomotive.com)

KA media contact:

Therese Sjoborg Skurdal

therese.skurdal@ka-group.com

+47 982 14 059

About BRP

We are a global leader in the world of powersports products, propulsion systems

and boats built on 80 years of ingenuity and intensive consumer focus. Our

portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx

snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles,

Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion

systems as well as Rotax engines for karts and recreational aircraft. We

complete our lines of products with a dedicated parts, accessories and apparel

portfolio to fully enhance the riding experience. With annual sales of CA$7.6

billion from over 120 countries, our global workforce includes close to 20,000

driven, resourceful people. www.brp.com @BRPNews (https://twitter.com/BRPnews)

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex and the BRP

logo are trademarks of Bombardier Recreational Products Inc. or its affiliates.

All other trademarks are the property of their respective owners.

BRP media contact:

Biliana

Necheva

Media

Relations

media@brp.com

The information in this announcement is considered inside information pursuant

to the EU Market Abuse Regulation and is subject to the disclosure requirements

pursuant section 5-12 of the Norwegian Securities Trading Act. This announcement

was published by Kongsberg Automotive's Corporate Communications contact as set

out above.

Forward-looking statements

This announcement contains forward-looking statements. Forward-looking

statements are statements that are not historical facts and may be identified by

words such as "believe", "expect", "anticipate", "strategy", "intends",

"estimate", "will", "may", "should" and similar expressions. The forward-looking

statements in this announcement are based upon various assumptions, which in

turn may be based on further assumptions. Although Kongsberg Automotive believes

that these assumptions were reasonable when made, these assumptions are

inherently subject to significant known and unknown risks, uncertainties,

contingencies and other important factors that are difficult or impossible to

predict and are beyond its control. Various factors could cause Kongsberg

Automotive's actual results to differ materially from those projected in a

forward-looking statement. No assurances can be given that the assumptions

underlying the forward-looking statements prove to have been correct. Kongsberg

Automotive disclaims any obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise.