INVESTOR PRESENTATION MAY 12, 2021 Kongsberg Automotive FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURES
FORWARD-LOOKING STATEMENTS This presentation contains certain “forward-looking statements”. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this presentation include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in the 2020 Kongsberg Automotive Annual Report and the Kongsberg Automotive Quarterly Reports.
NON-IFRS MEASURES Where we have used non-IFRS financial measures, reconciliations to the most comparable IFRS measure are provided, along with a disclosure on the usefulness of the non- IFRS measure, in this presentation.
KONGSBERG AUTOMOTIVE // 2 Investor meeting
AGENDA
> TODAY’S PRESENTERS > INTRODUCTION OF CEO JOERG BUCHHEIM > NEW PLANTS AND EXPANSIONS > PRODUCTS FOR ELECTRICAL VEHICLES (EV) > Q&A – MODERATED BY PETTER KONGSLIE Investor meeting
TODAY’S PRESENTERS
JOERG BUCHHEIM NORBERT LOERS ROBERT PIGG BOB RIEDFORD DAVID REDFEARN LINDA NYQUIST-EVENRUD President & CEO CFO SVP Off-Highway President Powertrain & Chassis EVP Fluid Transfer Systems SVP Couplings Interim EVP Interior (FTS)
JOINED KA JOINED KA JOINED KA JOINED KA JOINED KA JOINED KA 2021 2017 2006 2016 1993 2008
EXPERIENCE EXPERIENCE EXPERIENCE EXPERIENCE EXPERIENCE EXPERIENCE CEO Inalfa roof systems CFO, Hay Group/Musashi Automotive VP Driver Interface Automotive Consultant, Cary VP Sales, FTS Sales & Marketing Director, Couplings (2016 – 2021) (2013-2016) (2015-2016) (2012-2017) (2013-2016) (2016-2017) President & CEO HELLA China CFO, Neumayer Tekfor Holding Int. VP Program Management, FTS Sales Director, FTS Sales & Marketing Manager, Couplings (2012 – 2016) (2007-2013) (2013-2015) (2008-2013) (2008-2016) Engineering Director (2008-2013)
EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION EDUCATION HSD University of Applied University of Bonn, Master of Auburn University, BA Mech. University of Evansville, Stockholm School of Halmstad University, BA Sciences, Düsseldorf, Economics Eng.; FHU, BA-Physical Sciences BS Electrical Engineering Economics, MBA Product, Innovation, Int. Mgmt. BA Electronics ABOUT KONGSBERG AUTOMOTIVE About Kongsberg Automotive COMPANY OVERVIEW
> Headquartered in Zurich, Switzerland and listed on the Oslo Stock Exchange > Three segments: » Interior: interior comfort systems and light duty cables » Powertrain & Chassis: clutch and gearshift systems, actuators and vehicle dynamics applications » Specialty Products: couplings, fluid transfer systems and off-highway applications
> We estimate that approximately one out of five light duty (LDV) or heavy duty (HDV) vehicles contain our products globally
> Diverse customer and end-market base with strong market positions About Kongsberg Automotive WORLDWIDE FOOTPRINT
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP ~11,000 GOTHENBURG HVITTINGFOSS POLAND EMPLOYEES IN
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS 19 BURTON HUNGARY COUNTRIES NOVI JAPAN SUFFIELD SIOFOK WORLDWIDE FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE NEW PLANTS AND EXPANSIONS COUPLINGS PART OF SPECIALTY PRODUCTS BUSINESS UNIT Couplings new plants and expansions SERVICING OUR WORLDWIDE CUSTOMERS LOCALLY THROUGH OUR GLOBAL FOOTPRINT
OUR NORWAY SWEDEN MARKETS KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI WUXI SHUOFANG HEADQUARTERS PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE FLUID TRANSFER SYSTEMS PART OF SPECIALTY PRODUCTS BUSINESS UNIT FTS new plants and expansions RAMOS ARIZPE MEXICO
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE FTS new plants and expansions RAMOS ARIZPE MEXICO
PRODUCTS KEY INFORMATION
> Tube bending lines, 6 mm up > Formed PTFE hose (Fluoro- to 25 mm O.D., Low carbon comp®) and stainless steel > Formed nylon hose ESTABLISHED 2017 > Stainless steel braided hose assemblies FLUID TRANSFER and bent tube assemblies > Formed nylon hoses for EV SEGMENT(S) AFFILIATION SYSTEMS > Formed PTFE hose and tube (SPECIALTY PRODUCTS) assemblies. MANUFACTURING AND KEY FUNCTIONS ASSEMBLY FLUID HOSES TECHNOLOGIES, EQUIPMENT, PLANT, OFFICE OR PLANT PROCESSES WAREHOUSE HIGHLIGHTS > 2 Forming plastic ovens > 5 Forming machines SIZE (M2) 4173 > Sales increase by 30% for > New project introduction > 1 CNC tube cutting machine > 17 Leak tester machines next 3 years flawlessly for Daimler > 1 CNC tube forming machine > 17 Crimper machines and Cummins > Quality performance improve > 6 CNC benders - Robot > 17 Assembly cells EMPLOYEES 146 by 50% customer complaints > Start up of introduction of handler reduction YOY new product for EV – SOP PRODUCTION 116 > Nominated Top Supplier by 2022 ENGINEERING 9 PACCAR 2020 and 2021 > ISO 9000 / ISO 14001 and KEY CUSTOMERS Maquiladora Certifications SALES & PROGRAMS 1 > Best performance for > Cummins > Volvo absenteeism and turnover, successfully achieved > Paccar > Caterpillar OTHER 20 below 2% per month > Navistar FTS new plants and expansions RAMOS ARIZPE PRODUCTION FLOOR AND KEY PROCESSES
ASSEMBLY CELL Fully integrated KEY INFORMATION Crimping and leak test
> Process Flow fully integrated from Tube cutting to final Assembly > Lean Manufacturing cell concept > Quality and Metallurgical Laboratories QUALITY LABORATORY Measurement and test supporting shop floor and new projects capability > Robot handling equipment to reduce headcount and better quality consistency > Lead time for a complete assembly tube to test is1 day > Supplier localization strategy ongoing > Flexible plant for high volume – low variety and Low volume high variety > Sufficient floor space – growing for 2021 – 2025 with no additional floor space requirements
METAL BENDING – WAFIOS METAL BENDING – CRIPPA FORMING OVEN - NYLON FORMING OVEN - FLUORCOMP METALLURGY LABORATORY with integrated robot CNC forming machine Several forms and length Several forms and length Metal Testing Capability INTERIOR INTERIOR COMFORT SYSTEMS AND LIGHT DUTY CABLES Interior new plants and expansions WUXI SHUOFANG CHINA
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE Interior new plants and expansions WUXI SHUOFANG CHINA
PRODUCTS KEY INFORMATION
> Seat Vent Seat Heat > ESTABLISHED 2020 > Seat Support / Massage SEGMENT(S) AFFILIATION INTERIOR, ICS
ADMINISTRATION, OPERATIONS, TECHNOLOGIES, EQUIPMENT, KEY FUNCTIONS PROCESSES SALES, AND ENGINEERING
> Harness Assembly PLANT, OFFICE OR PLANT > S2C and Sinus Wiring WAREHOUSE HIGHLIGHTS > Press Cutting TECH CENTER YES > Sales increase by 65% for the next 3 years > Soldering SIZE (M2) 11333 > Construction started in January 2020 > Manual Assembly
> Tesla Model 3 SOP April 2020 EMPLOYEES > Construction completed in October 2020 KEY CUSTOMERS PRODUCTION 338 > Office personnel moved in November 2020 > Volvo > Tesla ENGINEERING 22 > Seat Heat and Seat Vent transfer complete December 2020 > BMW > Nio SALES & PROGRAMS 23 > Daimler > Shanghia GM > Seat Support / Massage transfer will be complete OTHER 58 November 2021 Interior new plants and expansions WUXI SHUOFANG RECEPTION, OFFICES AND PRODUCTION FLOOR Interior new plants and expansions BRZESC POLAND
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE Interior new plants and expansions BRZESC POLAND
PRODUCTS KEY INFORMATION
> Seat Heat ESTABLISHED 2018 > Fluid transfer INTERIOR - ICS SEGMENT(S) FLUID TRANSFER AFFILIATION SYSTEMS- FTS
TECHNOLOGIES, EQUIPMENT, KEY FUNCTIONS OPERATIONS PROCESSES PLANT, OFFICE OR PLANT ICS FTS WAREHOUSE > Harness Assembly > Pre-cutting TECH CENTER NO
> S2C and Sinus Wiring > Marking SIZE (M2) 15 918 HIGHLIGHTS > Press Cutting > Forming > Sales increase by 30% for the next 3 years Manual Assembly Manual Assembly > > EMPLOYEES 1400 > FTS is growing from €13 to €25 M in the coming 2 years PRODUCTION & > Construction April 2017 - December 2017 MAINTENANCE 1275 First production in March 2018 > KEY CUSTOMERS MFG ENGINEERING& PROJECTS (NPI) 15 > ISO 14001 certification in December 2018 > Mercedes-Benz > Toyota QUALITY 30 > ISO 45001 certification in December 2019 > Volvo > Audi LOGISTICS & > Seat Heat transfer completed December 2019 45 > Volkswagen > Ford WAREHOUE > Project/NPI team established February 2020 > JLR OTHER 35 > IATF 16949 certification in February 2021 > Prototype area transfer completed January 2021 Interior new plants and expansions BRZESC PRODUCTION FLOOR Interior new plants and expansions PUNE INDIA
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE Interior new plants and expansions PUNE INDIA
PRODUCTS KEY INFORMATION Electronics and Software for: > Seat Heat ESTABLISHED 2019
> Seat Support/ Massage SEGMENT(S) AFFILIATION INTERIOR, ICS Seat Vent > KEY FUNCTIONS ENGINEERING
PLANT, OFFICE OR OFFICE, LAB WAREHOUSE TECHNOLOGIES, EQUIPMENT, PROCESSES TECH CENTER YES > Generic electronic platform SIZE (M2) 1250 HIGHLIGHTS > Software architecture AUTOSAR compliant Software verification and validation > Engineering activities for ICS started in 2019 with the > EMPLOYEES support of industry partner (Capgemini) > Vector toolchain PRODUCTION 0 > Legal entity “Kongsberg Automotive Technology Center India Private Limited” incorporated in March 2021 ENGINEERING 27 KEY CUSTOMERS SALES & PROGRAMS 0 > Highly efficient team of 25 electronics and software > BMW > Nio engineers transferred from Industry Partner to KA-TCI > Daimler > Stellantis OTHER 2 GM, SGM Toyota > Office infrastructure ready in May 2021 > > > Grammar > Volvo > JLR Interior new plants and expansions PUNE ADDITIONAL INFORMATION/ IMAGES
TCI OFFICE SPACE ON 3RD FLOOR POWERTRAIN & CHASSIS DRIVELINE AND ON-HIGHWAY P&C new plants and expansions KOLUSZKI POLAND
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE P&C new plants and expansions KOLUSZKI POLAND
PRODUCTS KEY INFORMATION
> Truck Axle Stabilizers (V-Stays) > Truck Cabin Stabilizers ESTABLISHED 2016 POWERTRAIN & > Truck Cabin Crash Brackets SEGMENT(S) AFFILIATION CHASSIS
MANUFACTURING TECHNOLOGIES, EQUIPMENT, PROCESS KEY FUNCTIONS PROCESSES ENGINEERING LOGISTICS > Robotic Welding PLANT, OFFICE OR PLANT > CNC metal machining WAREHOUSE
HIGHLIGHTS > Steel Upsetting and induction hardening SITE: 32,105 SIZE (M2) PRODUCTION: 15 310 > Products engineered in Kongsberg, Norway innovation > Manual & Robotic Assembly cells center > Paint Line > Factory opened in 2016 EMPLOYEES 153 > Factory extended in 2018 by 10,000 sqm KEY CUSTOMERS PRODUCTION 147 > Painting line installed in 2020 > Scania ENGINEERING 2 > Volvo SALES & PROGRAMS 0
> DAF OTHER 4 P&C new plants and expansions KOLUSZKI PRODUCT SPOTLIGHT
CABIN SUSPENSION SCANIA > Cabin stabilizers > 105 000+ pcs/year
WHEEL SUSPENSION VOLVO > V-stays > 110 000+ pcs/year
CABIN SUSPENSION DAF > Cabin stabilizers > 55 000+ pcs/year > Crash Brackets > 100 000+ pcs/year P&C new plants and expansions WUXI CHINA
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE P&C new plants and expansions WUXI CHINA
PRODUCTS KEY INFORMATION
> PV AT/MT shifter cable system ESTABLISHED 2004 > PV SBW shifter POWERTRAIN & PV ARC/ACM system SEGMENT(S) AFFILIATION > CHASSIS > CV Mechatronic Transmission Modules (MTM) R&D CENTER KEY FUNCTIONS MANUFACTURING LOGISTICS TECHNOLOGIES, EQUIPMENT, PLANT, OFFICE OR PROCESSES PLANT WAREHOUSE > Injecting machine workshop TECH CENTER YES HIGHLIGHTS > AT/MT shifter and cable assembly line 20 400 (TOTAL) / SIZE (M2) > Products design and developed in Mullsjo, Sweden innovation center > Knob and Boot dressing/stitching line 12 864 (P&C) > Factory opened in 2004 > SBW semi-automatic line > Factory extended in 2018 to 20,400 sqm > ARC/ACM semi-automatic line > MTM Mechatronic Transmission Modules SOP Nov. 2021 EMPLOYEES(P&C) 454 > Hong Qi Supplier award PRODUCTION 365 KEY CUSTOMERS ENGINEERING 55 > FAW –Red Flag > FCA SALES & PROGRAMS 13 > CHANG AN > ECJV > GEELY/Volvo OTHER 21 P&C new plants and expansions WUXI PRODUCT SPOTLIGHT
SHIFT- BY- WIRE FAW, CHANGAN, GEELY, VOLVO > Shift-by-wire > 940,000 + pcs/ year
ARC+ACM SYSTEM FAW,CHANGAN,GEELY > ARC/ACM system > 400,000+ pcs/ year
AT/MT SHIFTER+CABLE SYSTEM FCA,NISSAN,GEELY > AT/MT shifter / cable system > 200,000+ pcs/ year
MTM (MECHATRONIC TRANSMISSION MODULES) ECJV
> MTM Mechatronic Transmission Modules > Launch at Dec.2021 > 40,000+ pcs in 2022 P&C new plants and expansions NUEVO LAREDO MEXICO
NORWAY SWEDEN
KONGSBERG MULLSJÖ RAUFOSS LJUNGSARP GOTHENBURG HVITTINGFOSS POLAND
CANADA NETHERLANDS PRUSZKOW SHAWINIGAN ENSCHEDE KOLUSZKI BRZESC UK USA SLOVAKIA NORMANTON VRABLE GRAND RIVER BASILDON WILLIS BURTON HUNGARY NOVI JAPAN SUFFIELD SIOFOK FRANCE SPAIN TOKYO LAREDO GERMANY BROWNSVILLE CLUSES EPILA MOLSHEIM HALLBERGMOOS SOUTH KOREA MEXICO NOISY LE GRAND YANGSAN SWITZERLAND INDIA NUEVO LAREDO (PARIS) ZURICH REYNOSA PUNE CHINA MATAMOROS PALWAL BRAZIL SHANGHAI RAMOS ARIZPE JUNDIAI WUXI HEADQUARTERS WUXI SHUOFANG PLANT SITE OFFICE TECHNICAL CENTER WAREHOUSE P&C new plants and expansions NUEVO LAREDO MEXICO, PLANT #4
PRODUCTS KEY INFORMATION
> Mechatronic Transmission Modules (MTM) > Harness assembly ESTABLISHED 2017 > Glue process POWERTRAIN & SEGMENT(S) AFFILIATION > Stalk shifters for commercial vehicles CHASSIS
KEY FUNCTIONS FINAL ASSEMBLY
PLANT, OFFICE OR TECHNOLOGIES, EQUIPMENT, PLANT PROCESSES WAREHOUSE SIZE (M2) 4600 > Palletized semi-automated final assembly (MTM) with HIGHLIGHTS robotic load/unload > Products designed and developed in Kongsberg, Norway > Manual assembly line (stalk shifter) with robot for End Of EMPLOYEES 117 innovation center line tester PRODUCTION 117 > Clean room environment > Clean room environment ENGINEERING 0 > 12 speed MTM line and stalk shifter assembly launched Summer 2017 KEY CUSTOMERS SALES & PROGRAMS 0 » Running with 3 shifts since Feb 2021 > Eaton Cummins Joint Venture OTHER 0 > New Flex MTM line > PACCAR (via ZF) » 12 speed MTM China launches end of Q2 2021 » 18 speed MTM launches Q1 2022 > Ford Otosan P&C new plants and expansions NUEVO LAREDO PRODUCT SPOTLIGHT
MTM EATON- CUMMINS JOINT VENTURE
> Mechatronic Transmission Module for commercial vehicles with 12 and 18 speed AMT transmissions > 100 000+ pcs/year
STALK SHIFTER PACCAR & FORD OTOSAN
> Stalk shifters for commercial vehicles > 80 000+ pcs/year PRODUCTS FOR ELECTRICAL VEHICLES COUPLINGS PART OF SPECIALTY PRODUCTS BUSINESS UNIT Couplings EV products "NO 1 CHOICE FOR ELECTRICAL VEHICLE MANUFACTURERS"
HIGHER SYSTEM REQUIREMENTS OPEN NEW DOORS FEATURES & BENEFITS > Pneumatic brake systems remains transferring from ICE to EV. No negative effect on air couplings BEST IN CLASS – LEAKAGE LEVEL OPTIMAL AIRFLOW > No air leakage saves energy - increasing driving distance > Optimal airflow leads to shorter time for braking, suspension and auxiliary systems > «Click-click» assembly and disassembly improve installation cost and reduce vehicle down time KA > Light weight materials contributes for light weight vehicle and increased payload KA
COMPETITIVE POSITIONING EASY BUILDING BLOCK SYSTEM COMPOSITE MATERIAL BASE > Leverage relationship with already existing OEMs to enter new, electrical based platforms > Provide “best in class performance” to capture new customers entering electrical vehicle market
> Meet future zero emission and safety critical performance POLE POSITION requirements which results in higher quality standards and IN ELECTRICAL product differentiation VEHICLE SEGMENT > High focus on developing new products and enter new markets INSTALLATION PERFORMANCE LIGHT WEIGHT INCREASED GLOBAL MARKET SHARE COST BENEFITS BENCHMARKING Couplings EV products AIR COUPLINGS FOR ELECTRICAL VEHICLE PLATFORMS SERIAL DELIVERIES 2021
BATTERY REGION BRAND TYPE OF VEHICLE APPLICATION OR FUEL CELL Europe VW/Scania City Bus Hybride Urban Europe VW/Scania City Bus Battery Urban Europe VW/Scania HD Truck Hybride Intercity Europe Volvo City Bus Battery Urban Europe Volvo City Bus Hybride Urban Europe Volvo HD Truck Battery Urban Europe Volvo HD Truck Battery Intercity Europe Renault HD/MD Truck Battery Intercity/Urban Europe NIKOLA HD Truck Battery Intercity Europe ARRIVAL City Bus Battery Urban Europe Bolloré City Bus Battery Urban Europe Safra City Bus Fuelcell Urban South America VW/MAN MD Truck Battery Intercity Asia Skywell Bus Battery Intercity Asia BYD Bus Battery Intercity Asia BYD HD/MD Truck Battery Intercity/Urban Asia FOTON AUV BUS Hybride Urban Asia Ankai BUS Hybride Intercity Asia FOTON LDT TRUCK Fuel cell Intercity Asia Hyundai Truck HD Fuel cell Intercity Asia Hyundai Bus Battery Urban
*Estimated annual production volume 2021 is 50.000 Vehicles Couplings EV products Couplings EV products AIR COUPLINGS FOR ELECTRICAL VEHICLE PLATFORMS DEVELOPMENT PROJECTS 2021
BATTERY REGION BRAND TYPE OF VEHICLE APPLICATION OR FUEL CELL Europe Confidential MD Truck Battery Urban Europe Confidential MD Truck Battery Urban Europe Confidential MD Truck Battery Urban Europe Confidential MD Truck Battery Urban Europe Confidential HD Truck Fuel Cell Intercity Autonomous Europe Confidential Seaports/Airport vehicle Battery truck Europe Confidential Bus Battery Urban Europe Confidential Bus Battery Urban Europe Confidential Bus Battery Urban Europe Confidential Bus Fuel Cell Intercity Europe Confidential Bus Battery Urban Europe Confidential Bus Battery Urban Europe Confidential MD truck Battery Urban Europe Confidential MD truck Battery Urban Europe Confidential MD truck Battery Urban Europe Confidential HD Truck Battery Urban Europe Confidential HD Truck Battery Urban Europe Confidential HD Truck Battery Intercity Europe Confidential HD Truck Battery Intercity North America Confidential Class 7/8 Battery Intercity North America Confidential Pickup Battery Urban North America Confidential Class 7/8 Both Intercity North America Confidential Bus Battery Urban *Estimated annual production volume 2021 is 50.000 Vehicles FLUID TRANSFER SYSTEMS PART OF SPECIALTY PRODUCTS BUSINESS UNIT FTS EV products GROWING BUSINESS BENEFITING FROM EV TRANSITION
RELEVANCE PRODUCT TRENDS MARKET DYNAMICS
ICEV ICEV RELEVANCE PHEV BEV FCEV > Weight savings TODAY FUTURE » replacement of steel and rubber by high performance plastic fluid SAFETY REGULATIONS transfer lines AIR SUSPENSION LINES > Tighter packaging (FLEXIBLE) HYDRAULIC » increasing need for flexible high-performance plastic fluid transfer CO EMISSION LEGISLATIONS CO2 2 BRAKE LINES lines FOR ICE VEHICLES FUEL LINES (BIOFUELS, » for ICEV increased temperature resistance fluid transfer lines HYDROGEN) > Increased durability MILES-PER-GALLON EMISSION CONTROL LINES » high performance plastic fluid transfer lines LEGISLATION DRIVING NEW > Increased safety ENGINE TECHNOLOGY (FLEXIBLE) TURBO LINES » increase crash and flammability resistance by high performance plastic fluid transfer lines COMPETITIVE POSITIONING COOLANT LINES > Increased cleanlines » supports fuel savings and enables hydrogen fuel cell technology
#1 IN HIGH PERFORMANCE LINES FTS EV products
PRODUCT LINES
AIR SUSPENSION HYDRAULIC BRAKE FUEL EMISSION CONTROL+ TURBO COOLANT
> Increasing comfort by leveling > Guaranteed safety in addition > Resistance to all (aggressive) > Fluorocomp™ Unique hose > Battery coolant lines capability to electrical brake system biofuels design > Chassis coolant lines to the > Extending driving range by > Ultra low volumetric > Meeting the (increasing) > Weight savings electrical engines and optimizing the aerodynamics expansion for amazing brake vehicle emission legislations in/convertors > Tight packaging capabilities to drag depending driving speed ‘feel’ for fossil fuels and hydrogen enable double drivelines in > Light weight, tight packaging, > Personalizing driving feeling > Negligible water ingress, no > Mid to high purity to avoid PHEV and downsizing of leak-tight, serviceable depending actual road lose of brake power over time blockage of fuel injectors or engines > OEMs exploring various design conditions poisoning the fuel cells > FMVSS-106 compliance > Superior temperature concepts and philosophies > Improving battery cooling > Increased crash resistance resistance to enable tight > State of art manufacturing > FTS in/depth vehicle hose conditions and easier to built on vehicle packages and emission sensor ensuring customers competencies are key against rigid steel lines lines efficiencies OFF-HIGHWAY PART OF SPECIALTY PRODUCTS BUSINESS UNIT Off Highway EV products ELECTRIC VEHICLES MARKET
MARKET DYNAMICS PRODUCT HIGHLIGHTS
ELECTRIFICATION, AUTONOMOUS & DIGITIZATION ELECTRIC PEDALS AND HAND BATTERY MANAGEMENT CONTROLS SYSTEMS
PRODUCTS & OPPORTUNITIES
> Electric Power Steering » STD EPS for Powersport Vehicles » Lightweight EPS for applications sensitive to size, weight, and power consumption.
> Electronic Pedals and Hand controls: » Brake by wire » Throttle by wire » Shift by wire > X by wire products: Throttle, Shift, and > Manufacturing services for sub- components, such as PCBA assembly » Driver input/button modules Brake > Multiple signal and communication > Battery Chargers, monitoring & > Battery Management Systems: protocols supported, including CAN, diagnostics, inverters » Supporting key customer developing battery management subsystems and analog, and PWM components > Designed specifically for Off Highway > Other compatible devices Vehicles » Such as power efficient solid-state relays, programmable modules, and sensors Off Highway EV products AUTONOMOUS VEHICLES MARKET
MARKET DYNAMICS PRODUCT HIGHLIGHTS
ELECTRIFICATION, AUTONOMOUS & DIGITIZATION STEERING ACTUATOR GPS + STEERING ACTUATOR
PRODUCTS & OPPORTUNITIES
> Electric Power Steering » Demonstrated on Agricultural Vehicle » Provides precise fine movement and sufficient torque to drive existing hydraulic steering systems
> GPS + Steering actuator > Contactless torque sensor with a rigid > Small light weight package shaft » Demonstrated on a watercraft to provide a functional auto-pilot > Can be sold as a standalone actuator > Optional integrated torque sensor w/o electronics > Other compatible devices > Multi-mode capability » Such as power efficient solid-state relays programmable modules, and sensors > Designed specifically for Off Highway Applications INTERIOR INTERIOR COMFORT SYSTEMS AND LIGHT DUTY CABLES Interior EV products GROWING MARKET POSITION IN EV SEGMENT
MARKET DYNAMICS PRODUCT HIGHLIGHTS
INCREASING FOCUS ON COMFORT SEAT FEATURES AS SEAT VENTILATION M ASSAGE SYSTEMS AND TECHNIFICATION PAY-AS-A-SERVICE OF SEATS
PREMIUM TO MASS DIRECTED BUY MARKET LEADING TO TOWARDS TIER-2 UPTAKE IN TAKE-/ SUPPLIERS FITMENT RATES
COMPETITIVE POSITIONING
> Vent incorporates highly modular KA > Design offers scalability of the system > Leverage favorable EV market trends towards comfort and fan (Njord blower – gen3) (basic lumbar to adding multiple climate systems massage cells + vent into 1 system) > Made to be adaptable to many seat > Benefit from cross-selling between the products and types > Can use Small Modular Valve (SMV) with best-in-class package size and standardization > Aerodynamic (slim) design for best-in- class performance and fast cooling weight With Autonomous vehicles, higher > Continue expansion of customer base esp. with “new” OEMs in > Increased comfort features of > Electric vehicle segments, i.e Lucid, Lordstown Motor, Tesla, Xpeng occupant positions seen in electric expectation on long term seating vehicles, tuned to help both range and comfort resulting in increase of take comfort rates for massage and lumbar POWERTRAIN & CHASSIS DRIVELINE AND ON-HIGHWAY P&C EV products DRIVELINE SEGMENT WITH HIGH MARKET DYNAMIC AND NEW EMERGING CUSTOMERS
MARKET DYNAMICS PRODUCT HIGHLIGHTS
SHIFT-BY-WIRE ELECTRIC ACTUATORS SHIFT FROM ICE SHIFT IN CAR TO XEV PARC MIX
TRANSFER TO DRIVE MARKET AND SHIFT-BY-WIRE CONSOLIDATION SYSTEMS
TOGGLE SHIFTER ROTARY SHIFTER DOG CLUTCH ACTUATOR DECOUPLING UNIT COMPETITIVE POSITIONING > Small packaging > New locking > Complete gearshift > Actuator to decouple & compact design mechanism w/ low actuator for BEV T/M eAWD to save energy > Leverage deep skilled R&D team at Mullsjo, Sweden current consumption when in 2WD mode > Low noise level > Incl. spring assistance innovation center and quick response vs. competition and shift fork > Incl. spring > Build upon 15% shift-by-wire market share in China with > Low noise level assistance innovative products for shift-by-wire shifters and actuators > Designed for BEV > High performance and ICE vehicles > Designed for BEV > Compact design > Continue winning new BEV-related applications and ICE vehicles
> Sustainably improve customer relationship with existing STRONG POSITION IN OEMs ACTUATION SYSTEMS > Double-down on patents in application process P&C EV products P&C DRIVELINE PRODUCTS & TECHNOLOGY FOR PHEVs & EVs
SBW GEAR & CONNECT / TRANSMISSION DECOUPLING ACTUATOR FOR ELECTRIC DRIVE VEHICLE TYPE FORWARD/REVERSE PARK LOCK ACTUATOR DISCONNECT ACTUATOR SHIFTER E-DRIVE AXLE
PHEV YES YES (PRND) YES YES Plug-in Hybrid Electric Lever, Stalk, Rotary, KA ARC KA ARC KA DCA Vehicle Toggle SBW Shifter Some transmissions Some transmissions Electrified 2nd axle
YES YES (2/3 speed EV) YES YES EV Lever, Stalk, Rotary, KA DCA KA ARC KA DCA Electric Vehicle Toggle SBW Shifter Some transmissions Some transmissions 4WD EVs
KA ARC GENERIC ROTARY ACTUATOR ROTARY ACTUATOR KA DCA GENERIC CUSTOM SBW SHIFTERS for PRND & Park Lock applications FOR DECOUPLING APPLICATION DOG CLUTCH ACTUATOR P&C EV products ON-HIGHWAY HIGH PERFORMING TRANSMISSION BUSINESS
MARKET DYNAMICS PRODUCT HIGHLIGHTS
SHIFT TO INCREASING ELECTRIC MODULARIZATION POWERTRAIN GEAR ACTUATION SYSTEMS CLUTCH ACTUATION SYSTEMS
ADOPTION OF AIR SUSPENSION YIELDS OPPORTUNITIES
FUEL ECONOMY INCREASING TOTAL AND ENERGY COST OF OWNERSHIP SAVINGS DRIVING CONSCIOUSNESS AMT* DEMAND > Pneumatic actuation can also be used > First high performance full electric clutch for BEV trucks in addition to ICE based actuator for HD transmissions launched * Automated manual transmission powertrains like AMT > Qualified for extreme requirements COMPETITIVE POSITIONING > Full electric actuator solutions based related to robustness and durability to on existing technology in development secure uptime for the vehicles > Leverage deep skilled R&D team at Kongsberg, Norway innovation center > High performance and precise > Spin off and knowledge can be utilized for > Further enhance system supplier capabilities actuation other actuators as gear actuation etc. > Leverage significant transmission knowledge > Can be used for hybrid trucks > Push high performance actuators > Double-down on systems applicable for MD and HD commercial vehicles P&C EV products P&C ON-HIGHWAY PRODUCTS & TECHNOLOGY FOR HEVS & EVS
CONNECT / VEHICLE DYNAMICS, KA VDY PRODUCTS WEIGHT OPTIMIZED TRANSMISSION PARK LOCK ACTUATOR DISCONNECT VEHICLE TYPE CLUTCH ACTUATOR CAB AND AXLE ACTUATOR (24 V) E-AXLE AND/OR E- SUSPENSION MOTOR(S)
HEV Yes Yes Yes Yes Hybrid Electric Vehicle Electric or pneumatic N/A V-Stay, Cab stabilizer Electric clutch actuator KA DCA actuators and rear axle stabilizer
Yes Yes Yes EV N/A KA ARC Yes Electric or pneumatic V-Stay, Cab stabilizer Electric Vehicle No clutch in a EV Some transmissions on KA DCA actuators and rear axle stabilizer LDCV
PNEUMATIC GEAR KA ARC ROTARY ACTUATOR ROTARY ACTUATOR KA DCA GENERIC ELECTRIC CLUTCH ACTUATOR ELECTRIC GEAR Park Lock applications FOR DECOUPLING DOG CLUTCH ACTUATOR ACTUATOR APPLICATION ACTUATOR Q&A A GLOBAL SUPPLIER OFFERING SUPERIOR CUSTOMIZED PRODUCT SOLUTIONS TO LEADING OEM AND TIER-1 CUSTOMERS.