Kongsberg Automotive announces cost adjustment initiatives and updates 2024 guidance

31 Oct 2024 07:00 CET

Kongsberg, October 31, 2024: Kongsberg Automotive (KA) announces new initiatives
to adjust costs, maintain efficiency and enhance competitiveness in response to
lower near-term customer demand. The initiatives support delivery on KA's long
-term financial ambitions while proactively addressing the impact of uncertain
market conditions and changes to customer demand, which are reflected in an
updated financial guidance for full year 2024.

· Lower demand continues to impact global automotive markets and customer
orders
· New overhead reductions targeting at least MEUR 10 in annual savings from
2025
· Updated 2024 guidance: Revenues in the range of MEUR 760-790 (previous MEUR
790-830) and EBIT of MEUR 18-23 (previous MEUR 28-35), reflecting the lower
revenue, non-recurring costs related to overhead cost reductions and higher-than
-expected warranty costs
· Maintained guidance for New Business Wins of MEUR >1,500

"Cost reductions and operational efficiencies help us offset lower volumes and
positions KA for increased long-term profitability. We are on track for overhead
cost reductions of MEUR 17 in 2024 and have identified additional annual savings
of at least MEUR 10 with full effect from the third quarter of 2025. These steps
will help us to stay efficient, sustainable, and competitive in a market with
strong underlying long-term growth," says Linda Nyquist-Evenrud, KA's President
& CEO.

Cost adjustment initiatives

The market development addressed during Q2 has continued into the second half of
2024. The new cost adjustments aim to further streamline operations and reduce
overhead cost. They are a direct response to the current market and include a
reduction of the global workforce by approximately 150 positions. The measures
will be introduced during Q4 2024 and the first half of 2025, with full effect
from Q3 2025 at the latest. The company expects to recognize MEUR 2 of related
non-recurring costs in Q4 2024.

KA is also continuing the review of the operational structure to ensure
closeness to customers, as well as optimizing production, technology and product
portfolio based on competitive advantages and profitability requirements. These
mid-term measures will support delivery on the communicated 2028 financial
ambitions of revenues above EUR 1.0bn and an EBIT margin at or above 8.5%.
Decisions on potential actions are expected in 2025.

Updated 2024 outlook

Based on recent customer dialogues and the above-mentioned industry
developments, KA has adjusted the 2024 full-year revenue guidance in the range
of MEUR 760-790 (previous MEUR 790-830). The updated EBIT guidance is MEUR 18-23
(previous MEUR 28-35). This includes MEUR 4-6 related to lower revenue, the
above-mentioned MEUR 2 non-recurring cost related to the new overhead
reductions, and MEUR 4 related to higher-than-expected warranty costs on a Drive
Control Systems product manufactured between 2019-2022. The company maintains
the guidance for New Business Wins of MEUR >1,500 as communicated in the Q2 2024
interim report.

Kongsberg Automotive will provide further information when releasing the Q3
interim report on Tuesday, November 5, 2024 at 07:00 (CET).

Investor relations and media contacts:

Christian Johansson - Chief Financial Officer
investor.relations@ka-group.com
Therese Sjöborg Skurdal - Director Group Marketing & Communications
therese.skurdal@ka-group.com (https://kagroup
-my.sharepoint.com/personal/kinnary_godbole_ka
-group_com/Documents/Project%20Cronos/CAPIENT%20+%20KA/therese.skurdal@ka
-group.com)
+47 982 14 059

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: www.kongsbergautomotive.com

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