Kongsberg Automotive ASASecond quarter 2016 | July 14 , 2016

Operational & financial

• Henning Jensen started as CEO at the end of Q2, Bruce Taylor replaced him as Chairman of the Board

• Revenues of EUR 252.1 million in in Q2, EUR 2.9 million below Q2 2015 before negative currency effects of EUR 11.0 million.

• EBIT was EUR 10.5 mill. (4.2%), vs. adjusted EBIT of EUR 14.7 mill. (5.5%) in Q215

• Gearing ratio at 2.2x NIBD/EBITDA

• Annualized business wins in Q2 of EUR 60 million bringing the last twelve month run rate to EUR 290 million

• KA is undergoing a thorough review of structural costs with the goal of sustainably improving operating margin & EPS performance

Update &

Outlook

• Divestment of LDC & head/arm rest businesses proceeding along expected timelines

• Revenues for Q3 2016 expected to be slightly lower than Q3 last year

Highlights for Q2 2016

2

3

▸ Annualized new business wins of EUR 60 million booked in Q2 2016▸ Continued good momentum in order intake

New business wins in Q2 2016

New business wins (LTM per annum value)EUR Million

177

200190

165

205

282293

318 321 319

301290

0

50

100

150

200

250

300

350

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

4

Segment financials Q2 2016

Revenues and EBIT marginEUR million and percent

* Excludes EUR 19.5 million in Goodwill write-off

82 8086 88

77

Interior

Revenues

6858 59 62 62

Driveline

Revenues

6955

61 65 67

Driver Control

Revenues

5750 52 54 55

Fluid

Revenues

0.7

-0.1

0.6

0.4 -0.2

1.1%-0.1%

1.0% 0.7%-0.3%

Q22015

Q32015

Q42015

Q12016

Q22016

EBIT

5.5 2.5 4.1 4.1 4.3

7.9%4.6% 6.7% 6.3% 6.4%

Q22015

Q32015

Q42015

Q12016

Q22016

EBIT

8.3 7.1 7.4 8.18.6

14.5% 14.1% 14.3% 15.2% 15.8%

Q22015

Q32015

Q42015

Q12016

Q22016

EBIT

5.7 6.9 8.6 7.7 5.0

6.9% 8.7% 10.1% 8.8% 6.4%

Q22015*

Q32015

Q42015

Q12016

Q22016

EBIT

Operational update

5

▸ Revenues down EUR 4.3 mill. to EUR 77.3 mill. in Q2– Negative currency effects of EUR 3.2 mill.– Strong European premium car segment more than offset by weak Outdoor Power

Equipment (OPE) market in North America

▸ Q2 EBIT was EUR 5.0 mill., down EUR 0.7 mill., adjusted for write-off last year

– Negative currency effect of EUR 0.3 mill.– Lower sales volume & additional engineering spend offset by operational

improvements

▸ Two major program launches in Q216– Seat heat for FCA with yearly volume of 133K units – Seat support for VCC with yearly volume of 240k units – Both from Pruszkow, Poland facility

Interior

Operational update

6

▸ Revenues down EUR 5.6 mill. to EUR 62.3 mill. in Q2– Negative currency effects of EUR 0.9 mill.

– Drop in volume due to end of productions

– Non–KA related recall last year, where KA supplied significant portion of replaced products

▸ EBIT declined EUR 0.9 mill to EUR -0.2 mill.– Negligible currency effects

– Lower volumes partially offset by operational improvements

▸ 2 contracts for premium car maker – Supply of SBW shifter with est. annual value of EUR 3 mill. & EUR 4 mill.

– Both programs have SOP in 2019 with life time of 8 years

Driveline

Operational update

▸ Revenues down EUR 2.6 mill. to EUR 54.6 mill. in Q2 – Negative currency effects of EUR 2.8 million

– Strength in Europe for air coupling systems to the CV market partially offset by weak CV and industrial market in North America

▸ EBIT rose by EUR 0.3 mill to EUR 8.6 mill.– Negative currency effects of EUR 0.2 mill., offset by favorable product mix and

reduction of material costs

▸ Solid order intake within this business segment with solid future opportunities– 4 significant contracts in pipe/hose assemblies for powertrain; combined est. annual

sales of EUR 8 mill.

– SOP in 2017 and 2019 7

Fluid Transfer

Operational update

8

▸ Revenues down EUR 2.1 million to EUR 66.8 mill. in Q2

– Negative FX effects of EUR 4.3 mill.

– Strong Commercial Vehicle business in Europe & recreational vehicle

business in North America partly offset by weaker CV production in North

America, South America & Asia

▸ EBIT declined EUR 1.2 mill to 4.3 mill.

– Negative FX effects of EUR 0.3 mill.

– Unfavorable product mix and start-up costs with new low-cost factory in

Poland

Driver Control

9

▸ Need to significantly improve our performance– Started review of all aspects of our business

• Clear and executable path to sustainably higher operating margin and EPS levels

– Will include restructuring activities

▸ Our goal is to deliver long term earnings growth– Building on existing customer, product portfolio & engineering skills

– Balancing short term financial performance with restructuring initiatives, continued investments in R&D, and pursuit of new business opportunities

▸ These measures will improve our performance and reduce sensitivity to industry cyclicality

▸ More to come at the next Capital Markets Day in November

Improvement measures & initiatives

FINANCIAL UPDATETrond Stabekk, CFO

10

11

Revenue and EBIT

* Excludes EUR 19.5 million in Goodwill write-off

14.7

11.5

13.114.1

10.5

5.5%4.9% 5.3% 5.4%

4.2%

Q2 2015* Q3 2015 Q4 2015 Q1 2016 Q2 2016

EBIT and EBIT marginEUR million and percent

266

235

250

259

252

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Revenues EUR million

12

Revenue development

RevenuesEUR million

* Variances excluding FX effects

‐1.0‐4.7

0.2 2.2 0.4 ‐11.0

266.0252.1

200

210

220

230

240

250

260

270

280

Q22015

Interior* Driveline* Fluids* DCS* Others FX Q22016

Revenues:

► EUR 13.9 (-5.2%) million

below second quarter

2015

► Currency effects EUR 11

mill

► Non KA related recall

sales last year

► End of productions

► Slightly better EU truck

market

► Negative OPE market

13

EBIT development (adjusted EBIT)*

EBITEUR million

* Variances excluding FX effects and write-off effect from last year

‐0.4‐1.0 ‐1.7

‐0.8 0.8

‐0.3 ‐0.8

14.710.5

0

3

6

9

12

15

18

Q22015

Interior* Driveline* Fluids* DCS* e‐Power Others Net FX Q22016

EBIT

► Higher R&D costs

► Lower volumes

► Operational

improvements

► Product mix effects

14

Net Profit development

Net ProfitEUR million

‐4.2

‐0.3 0.519.5 0.0 ‐0.3

‐9.6

5.7

‐17

‐12

‐7

‐2

3

8

13

18

Q22015

EBITeffect

Write‐offlast year

Interest FX Effectsfinancialitems

Othersfinancialitems

Tax Q22016

Net profit:

► Second quarter last year

impacted by write-off

related to the Headrest

and Armrest business.

15

Free Cash Flow

Free Cash Flow EUR million

4

13

‐4

42

15

‐10

16

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Second quarter Free Cash Flow before debt

repayments

► Trend is improving

► Q1 understated due to accounting error,

Q2 overstated as its corrected, YTD cash

flow not influenced

16

Cash flow and facility development

75.3 61.8

Available fundsEUR million

20.5 27.0

7.9  (11.6)(1.4) (9.8)

21.2 9.8  0.9 

93.0103.5

113.6 

130.5 

.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Q1 2016 EBITDA Change in totalNWC, and taxes

paid

Investments Net financialexpenses

Change in drawnamount incl.overdraft

Change inunutilized facility

Other Q2 2016

Cash (unrestricted) Unutilized facility

Cash flow Facility Other

17

Financial ratios

6.7% 6.2% 7.8% 7.1%

10.6%10.4%* 9.9%*11.8%* 11.0%*

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

ROCE (Ltm)Percent

30.7% 31.4% 31.3%32.4% 32.7%

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Equity ratioPercent

463469

466 476463

2.17 2.15 2.192.12 2.15

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Avg. Capital Employed and turnover (Ltm)EUR million and Times

2.4 2.42.1 2.2 2.2

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

NIBD/EBITDATimes

Market Summary & Outlook

Market summary & outlook

▸ Light Vehicle production up 1.8% in 1H 2016 – Higher growth in China (+5.2%), North America (+4.3%), Europe

(+2.7%)

– Forecasted 3.2% growth for FY2016 to 91.5 million vehicles

▸ Commercial Vehicle production up 7.2% in 1H 2016 – Driven by growth in Asia (China +18.5) & Europe (+6.3%); North

America -11%

– Production for FY 2016 expected to grow by 1.5%

19Data source: LMC Automotive, July 4 2016

18

19

20

21

22

23

24

25

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Milli

ons

Global Light Vehicle Production

540 560 580 600 620 640 660 680 700 720

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Thou

sand

s

Global Commerical Vehicle Production

20

▸ Corrective measures & initiatives to sustainably improve

operating margin & EPS performance

▸ US automotive market growth rates expected to slow.

Macro uncertainties regarding BREXIT impact and market

demand

▸ No signs of major changes in overall trend lines for the

industry

▸ Next 2 quarters expected to be flat with combined 2H 2016

revenues of EUR 480 mill.

Summary

21

Questions & answersThank you for your attention!

Disclaimer This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone" or other words of similar meaning and similarexpressions or the negatives thereof.

By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected.

Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by the Oslo Stock Exchange rules or applicable law, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based.Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements.

23

Appendix

23

Consolidated income statement

► REVENUE run rate impacted by

negative currency effects

► Adjusted EBIT run rate impacted

lower sales volumes and increased

R&D activity to support future growth

opportunities

► Net profit run rate impacted by the

write-off in the second quarter last

year

30.06.15 30.09.15 31.12.15 31.03.16 30.06.16

1004.9 1010.8 1020.1 1008.8 994.9

-909.3 -916.0 -917.5 -910.7 -901.7

95.6 94.8 102.6 98.1 93.2

9.5% 9.4% 10.1% 9.7% 9.4%

-64.8 -65.8 -66.1 -64.2 -44.0

30.8 29.0 36.5 33.9 49.2

3.1% 2.9% 3.6% 3.4% 4.9%

-34.7 -49.2 -32.8 -19.5 -19.3

-3.9 -20.2 3.7 14.4 29.9

-10.7 -5.3 -12.0 -15.7 -16.0

-14.7 -25.5 -8.3 -1.3 14.0

Twelve months ending

Revenues

OPEX

EBITDA

EBITDA (%)

EUR Million

Financial items

Profit before taxes

Tax

Net profit

D&A

EBIT

EBIT (%)

Financial items

▸ Positive change in valuation of currency contracts

– Partially offset by higher unrealized currency losses

‐1.8 ‐1.9 ‐1.8 ‐1.7 ‐1.7

0.4

‐14.8

‐4.2

7.50.1

‐0.7

‐0.2

0.1

‐0.1‐0.3

(2.1)

(17.0)

(6.0)

5.6 

(1.9)

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Other items Currency effects

Net interest Net financial items

Net financial itemsEUR million