Kongsberg Automotive

M&A Activity • Oct 28, 2021

KONGSBERG AUTOMOTIVE TAKES MOMENTOUS STEP INTO THE FUTURE DIVESTMENT OF THE INTERIOR COMFORT SYSTEMS BUSINESS UNIT

KONGSBERG AUTOMOTIVE TAKES MOMENTOUS STEP INTO THE FUTURE DIVESTMENT OF THE INTERIOR COMFORT SYSTEMS BUSINESS UNIT

Zurich, October 28, 2021: Kongsberg Automotive ASA ("Kongsberg Automotive") has

entered into an agreement for the sale of substantially all of the Interior

Comfort Systems ("ICS") business unit to Lear Corporation ("Lear"), as Kongsberg

Automotive is currently realigning its business priorities. The ICS business

unit supplies seat climate and comfort systems to all major car and seat

manufacturers.

Lear, a well-respected leader in the automotive industry has been a highly

valued business partner of Kongsberg Automotive for many years. The two

companies entered into a master sale agreement on October 28, 2021. With this

transaction, approximately 3,800 Kongsberg Automotive employees from Asia,

Europe and North America will be integrated into Lear.

Under the terms of the transaction, Lear will acquire Kongsberg Automotive's ICS

business unit for an Enterprise Value of EUR  175 million. The transaction,

subject to regulatory approvals and other customary closing conditions and

adjustments, is expected to close in the first quarter of 2022.

After careful consideration, President & CEO Joerg Buchheim, the Global

Leadership Team, and the Board of Directors have concluded that the sale of the

ICS business unit is the right step for Kongsberg Automotive to take. Kongsberg

Automotive intends to focus on Couplings, Fluid Transfer Systems, Powertrain &

Chassis, and Off-Highway, strengthening and maintaining its competitiveness and

future position of profitability, cash flow and growth.

Selling the ICS business unit is a part of the transformational "Shift Gear"

program at Kongsberg Automotive. It seeks to improve performance, optimize and

future-proof the product portfolio as well as enable improved sustainability at

Kongsberg Automotive and its customers.

The ICS business unit, along with the Light-Duty Cables ("LDC") business unit

belongs to Kongsberg Automotive's Interior business segment. The divestment of

LDC business unit was also announced earlier today.

(https://www.kongsbergautomotive.com/media-news/press-releases/2021/kongsberg

-automotive-to-divest-its-ldc-business-unit-to-suprajit-engineering-limited/)

Joerg Buchheim, Kongsberg Automotive's President & CEO, comments: "Our portfolio

decisions are driven by the clear strategy to build on leading market positions

in the business areas in which Kongsberg Automotive participates. Going forward,

we can fully concentrate our highly valuable resources on activities we excel

at. Proceeds from the sale, besides strengthening the balance sheet further,

provide more latitude for the business to focus on profitable growth with strong

product focus plus attractive innovations."

"By integrating Kongsberg Automotive's Interior Comfort Systems business unit

into our operations, we will build upon our strengths in design, engineering and

operational excellence - advancing our strategy to offer a complete suite of

premier comfort seat systems to our customers and ultimately to consumers," says

Ray Scott, Lear President and CEO. "This acquisition represents an opportunity

for Lear to capture more content-per-vehicle by providing an optimized solution

with a better value proposition for our customers, in terms of cost, quality and

performance. Lear looks forward to welcoming the talented ICS workforce to our

team."

We invite you to Kongsberg Automotive's media and investors presentation at

10:30 CET on Friday, October 29, 2021, where we will also answer questions on

the sale of the LDC and ICS business units. Conference call registration is

available at:

https://globalmeet.webcasts.com/starthere.jsp?ei=1509913&tp_key=b33514f0f5

About Kongsberg Automotive ASA

Kongsberg Automotive provides world class products to the global vehicle

industry. Our products enhance the driving experience, making it safer, more

comfortable and sustainable. With approximately 11,000 employees in 19

countries, Kongsberg Automotive is truly a global supplier. The company has more

than 27 production facilities worldwide. The product portfolio includes seat

comfort systems, driver and motion control systems, fluid assemblies, and

industrial driver interface products developed for global vehicle manufacturers.

Find more information at www.kongsbergautomotive.com.

About Lear Corporation

Lear, a global automotive technology leader in Seating and E-Systems, enables

superior in-vehicle experiences for consumers around the world. Lear's diverse

team of talented employees in 38 countries is driven by a commitment to

innovation, operational excellence, and sustainability. Lear is Making every

drive betterT by providing the technology for safer, smarter, and more

comfortable journeys. Lear, headquartered in Southfield, Michigan, serves every

major automaker in the world and ranks 179 on the Fortune 500. Further

information about Lear is available at lear.com (https://www.lear.com/) or on

Twitter @LearCorporation (https://twitter.com/learcorporation).

Rothschild & Co acted as financial adviser and Squire Patton Boggs acted as

legal adviser to Kongsberg Automotive.

For further information, please contact:

Media contact:

Kongsberg Automotive

Therese Sjoborg Skurdal

therese.skurdal@ka-group.com

+47 982 14 059

Lear Corporation:

Katya Pruett

kpruett@lear.com

+1 248-447-1646

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 investor relations contact as set out

above.

Forward-looking statements

This announcement contain 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.