Market decline

REVENUES MAINTAINED DESPITE THE FALL IN THE MARKET, WHILE RESULTS ARE REDUCED BY STRONG CONSTRAINTS RELATED TO COST PRESSURE

REVENUE FROM CONTINUING OPERATIONS WAS UP 0.6% VS. Q1 2021, WHILE ADJUSTED EBIT WAS REDUCED TO €7.6 MILLION BY CONTINUED DISRUPTIONS IN THE AUTOMOTIVE SUPPLY CHAIN ​​AND ABNORMALLY HIGH COSTS OF ELECTRONIC COMPONENTS, RAW MATERIALS AND FREIGHT.

Zürich, May 13, 2022: Kongsberg Automotive ASA (“Kongsberg Automotive“) today released its results for the first quarter of 2022. The results demonstrate resilience in the face of difficult market conditions. All financial information contained in this press release refers to the company’s continuing operations, the activities ICS and LDC being accounted for separately as a discontinued operation:

  • Revenue from continuing operations amounted to €218.8 million in the first quarter of 2022, 1.3 MEUR (+0.6%) more than in the first quarter of last year, including positive currency effects of 10.2 MEUR. This was driven equally by both segments, Specialty Products and Powertrain & Chassis.
  • Adjusted EBIT amounted to 7.6 million eurosi.e. 13.8 MEUR less than in the first quarter of 2021. This significant drop in profitability is mainly due to the abnormally high costs of raw materials, electronic components and freight caused by supply chain bottlenecks semiconductors and higher inflation rates in most countries. The KA group businesses operate. Additionally, the lockdown restrictions in China also had a negative impact on revenue and adjusted EBIT in the first quarter of 2022.
  • Revenue from lifetime contracts in the first quarter of 2022 was €239.1 million (75.1 MEUR of annualized turnover).
  • On February 28, 2022, Kongsberg Automotive successfully finalized the sale of its Interior Comfort Systems (ICS) business unit to Lear Company for an enterprise value of 175.0 MEUR. Net income from discontinued operations of EUR14.7m includes an initial net gain on sale of EUR21.5m.

After the balance sheet date, the company also successfully completed the sale of its Light cables dividing to Suprajit Engineering Limited, for an enterprise value of 37.7 MEUR. The company will therefore launch its share buyback program, as announced today in a separate press release.

CEO Comment:

“First quarter operations were clearly impacted by challenging market conditions – we saw an interruption in the resumption of vehicle production, for passenger vehicles, but especially for commercial vehicles. The war in Ukraine and the subsequent disruption of supply chains have made life difficult for customers and reduced their demand for our products. COVID-19-lockdowns in China have reduced their production in an important market. In addition, rising raw material, energy and labor prices put pressure on our results. Despite this, we managed to maintain our revenues compared to the same quarter last year, while remaining profitable.

With the Shift Gear program, we are set for an uncertain 2022, although we expect global vehicle production to increase again from 2023 in the future. Shift Gear performance improvements have reduced the impact of higher prices, while making us more efficient going forward. We finalized the disposals of our Interior Comfort Systems business unit and Light cables business unit, both closed on the closing date. This lays the foundation for our future development, as we invest in our portfolio to ensure that we can truly lead 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 disposals and that we have more clarity on the global situation, shows that we are sincere in our commitment to restore shareholder value while maintaining strong risk management.”

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

Presentation of results – conference call

The Company will hold an earnings conference call at 09:00 CEST on May 13 2022. Registration for the conference call is available on the Company’s webpage or at the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20220315_5/

Media contact:

Therese Sjoborg Skurdal

[email protected]

+47 982 14 059

Investor Relations:

Jakob Bronebakk

[email protected]

+47 906 39 637

On Kongsberg Automotive ASA

Kongsberg Automotive provides advanced technology to the global automotive industry. We are driving 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. Learn more at www.kongsbergautomotive.com

https://news.cision.com/kongsberg-automotive-asa/r/revenue-maintained-despite-market-decline–while-earnings-reduced-by-strong-headwinds-from-cost-pres,c3566397

https://mb.cision.com/Main/1438/3566397/1579218.pdf

https://mb.cision.com/Public/1438/3566397/9458782cd4c69071.pdf

https://mb.cision.com/Public/1438/3566397/82cb034dcbc8abea.pdf

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