Cost reductions offseting lower volumes - New cost initiatives and record New Business Wins YTD support long-term growth and profitability

05 Nov 2024 07:00 CET

Kongsberg, November 5, 2024:

Financial Highlights - Q3 2024

· Revenues MEUR 181.6 (MEUR 220.6)
· EBIT MEUR 1.1 (MEUR 9.7)
· Net result after tax MEUR -4.0 (MEUR 5.8)
· Free cash flow MEUR -5.2 (MEUR -13.4)
· 2024 full year revenue guidance of MEUR 760-790, EBIT of MEUR 18-23 and new
business wins of MEUR >1,500

Kongsberg Automotive ASA (KA) has published its results for the third quarter of
2024 with revenues of MEUR 181.6, a decrease of 16.9% (at constant currencies)
compared to the same period last year. The EBIT of MEUR 1.1 in the quarter
reflects the lower revenue and a communicated non-recurring provision for higher
-than-expected warranty costs, offset by increased efficiencies.

For the first three quarters of 2024, EBIT is MEUR 17.6, representing a margin
of 2.9% which is up from 0.1% a year earlier. The margin improvement is achieved
despite lower revenue levels through a significantly reduced cost base.

Last week, KA announced additional measures to adjust costs, maintain
efficiency, and enhance competitiveness in response to near-term changes in
customer demand, while also updating the 2024 guidance.

"2024 is a turnaround year for KA. The results of our initiatives to improve
long-term profitability are materializing and visible despite the current weak
demand from our customers in the latter part of the year. The cost reductions
and operational efficiencies help us offset the financial impact of the lower
volumes.

Cash flow from operations is positive both in the quarter and year-to-date,
reflecting our attention to cash generation including reduction of working
capital," says KA's President & CEO Linda Nyquist-Evenrud.

Two key drivers for KA's profitability and cash generation, are cost-efficient
operations and growth in revenues from sales of existing and new products with
higher margins.

The new cost measures are a continuation of ongoing improvement programs. KA is
delivering on the overhead reduction program with the savings of MEUR 17 in 2024
and has identified additional annual savings of at least MEUR 10 with full
effect from the third quarter of 2025.

These steps will help the company stay efficient, sustainable, and competitive
in a market with strong underlying long-term growth.

KA is also continuing with the review of its operational structure to ensure
closeness to customers and to optimize production, technology, and product
portfolio based on competitive advantages and profitability requirements.
Potential actions will support delivery on the 2028 financial ambitions of
revenues above EUR 1.0bn and an EBIT margin at or above 8.5%.

New Business Wins are at record MEUR 1,231 year-to-date, proving that KA's
products are well-aligned with the needs of top-tier customers. The company
expects a relatively flat market in the first half of 2025, while aging truck
fleets combined with stricter emissions regulations are projected to drive
future demand.

Increased operational efficiency and New Business Wins year-to-date support KA`s
strategy founded on a resilient product portfolio, closeness to market, long
-term customer relationships, trusted business partnerships, and the dedication
of a hardworking organization.

Earnings presentation - conference call

The company will hold an earnings conference call at 09:00 (CET) today, November
5, 2024. Conference call registration is available at the company's webpage or
the following link: Kongsberg Automotive Q3 Earnings release
(royalcast.com) (https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/202411
0
5_3)

The earnings release and presentation will be published on www.newsweb.no and on
KA's website www.kongsbergautomotive.com

The recording of the presentation will be made available on the company`s
website shortly after the presentation.

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
+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

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Therese S. Skurdal at Kongsberg Automotive ASA,
and the contact person(s) mentioned above on November 5, 2024, at 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

631210_KA_Q3_2024_EC_Presentation.pdf
631210_Release.pdf
631210_KOA_Q3_2024_REPORT.pdf