Kongsberg Automotive

Earnings Release • May 13, 2022

REVENUE MAINTAINED DESPITE MARKET DECLINE, WHILE EARNINGS REDUCED BY STRONG HEADWINDS FROM COST PRESSURES

REVENUE MAINTAINED DESPITE MARKET DECLINE, WHILE EARNINGS REDUCED BY STRONG HEADWINDS FROM COST PRESSURES

REVENUES FROM CONTINUING OPERATIONS WERE UP 0.6% COMPARED TO Q1 2021, WHILE

ADJUSTED EBIT WAS REDUCED TO EUR 7.6 MILLION BY THE ONGOING DISRUPTIONS IN THE

AUTOMOTIVE SUPPLY CHAIN AND THE ABNORMALLY HIGH COSTS OF E-COMPONENTS, RAW

MATERIALS AND FREGHT.

Zurich, May 13, 2022: Kongsberg Automotive ASA ("Kongsberg Automotive") has

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

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 218.8 in Q1 2022, MEUR

1.3 (+0.6%) higher than last year's first quarter, including positive currency

translation effects of MEUR 10.2. This was equally driven by both segments,

Specialty Products and Powertrain & Chassis.

· Adjusted EBIT amounted to MEUR 7.6, which was MEUR 13.8 lower than in Q1

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 the higher inflation rates

in most of countries KA's Group companies operate. In addition, lockdown

restrictions in China had a negative impact on both revenue and adjusted EBIT in

Q1 2022 as well.

· Lifetime business wins revenues in the first quarter 2022 amounted to MEUR

239.1 (MEUR 75.1 in annualized revenue).

· On February 28, 2022, Kongsberg Automotive successfully completed the sale

of its Interior Comfort Systems (ICS) business unit to Lear Corporation for an

enterprise value of MEUR 175.0. The net profit from discontinued operation of

MEUR 14.7 contains an initial net gain on the sale of MEUR 21.5.

After the balance sheet date, the company has also successfully completed the

sale of its Light Duty Cables division to Suprajit Engineering Limited, for an

enterprise value of MEUR 37.7. The company will therefore initiate its share

repurchase program, as it disclosed in a separate release today.

Comment from the CEO:

"Operations during the first quarter were clearly impacted by challenging market

conditions - we have seen an interruption in the recovery of vehicle production,

for passenger vehicles, but especially for commercial vehicles. The war in

Ukraine and subsequent disruption to supply chains have made customers' lives

difficult and reduced their demand of our products. COVID-19-lockdowns in China

have reduced production in an important market. In addition, raw materials,

energy and labor price increases have put pressure on our bottom line. Despite

this we managed to maintain our revenue compared to the same quarter last year,

while remaining profitable.

With the Shift Gear program, we are prepared for an uncertain 2022, even as we

expect global vehicle production to increase again from 2023 into the future.

The Shift Gear performance improvements have reduced the impact of higher

prices, while also making us more efficient in the future. We have 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 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.

The decision of the Board of Directors to approve the initiation of our share

buyback, now that we have received the funds from the divestments and have more

clarity on the global situation, shows that we are sincere in our commitment to

returning value to shareholders while still maintaining solid risk management."

Key figures and further details are available in the attached PDF press release.

Earnings presentation - conference call

The company will hold an earnings conference call at 09:00 CEST on May 13 ,

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

following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20220315_5/

Media contact:

Therese Sjoborg Skurdal

therese.skurdal@ka-group.com

+47 982 14 059

Investor relations:

Jakob Bronebakk

jakob.bronebakk@ka-group.com

+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 out more at www.kongsbergautomotive.com