Kongsberg Automotive

Earnings Release • Jul 26, 2019

Kongsberg Automotive reports Q2 2019 results

Kongsberg Automotive reports Q2 2019 results

Kongsberg Automotive ASA Q2 2019 Report and Presentation follow attached.

Q2 2019 Highlights:

· Revenues grew by MEUR 6 (2.0%) YoY to MEUR 294 including positive FX effects

of MEUR 4. This despite a declining market.

· Excluding FX effects, our growth rate was 1% compared to a passenger car

market decline of 6%.

· We were awarded new business worth MEUR 110 in annual revenues which

corresponds to MEUR 463 in expected lifetime revenues.

· Adj. EBIT amounted to MEUR 20.4 with no FX effects; MEUR 0.4 lower than Q2

· The mostly macro related unfavorable impacts continued from Q1 into Q2.

(Raw material prices, Mexican labor, Tariffs)

· Due to smaller YoY topline growth than in Q1, this growth was, contrary to

Q1, not sufficient to offset the macro effects above.

· EBIT improved YoY by 28% due to a significant reduction in restructuring

costs.

· Free cash flow was negative MEUR 6.1 driven by capital investments and cash

tax payments.

· Cash on hand at the end of the quarter was MEUR 35.6.

· On a non IFRS 16 adjusted basis, our LTM adjusted gearing ratio (NIBD/Adj.

EBITDA) was 2.3X, which is 0.1X higher than in Q2 2018. After the IFRS 16

adjustments, our gearing ratio was 3.0X.

The earnings conference call including a review of the Q2 Presentation can be

followed through this link starting at CET 09:00:

https://globalmeet.webcasts.com/starthere.jsp?ei=1231903&tp_key=fb96795a80

Contacts:

Norbert Loers, CFO

Phone: +41 43 508 6559

Hallstein Kvam Oma, Financial Analyst

Phone: +41 43 508 8963

ir@ka-group.com

.

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 revenues of approx. EUR 1.1 billion and

approximately 11.500 employees in 19 countries, Kongsberg Automotive is truly a

global supplier. The company is headquartered in Zürich, Switzerland and has

more than 25 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