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ANNUAL
REPORT
2025
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Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements

CORPORATE GOVERNANCE ............................... 12
BOARD OF DIRECTORS ......................................... 17
RISKS .................................................................. 19

STRATEGY .......................................................... 23
WORLDWIDE PRESENCE .................................... 28
CUSTOMERS ...................................................... 29
MARKETS .......................................................... 30
OPERATIONS AND ENGINEERING ......................... 32
FINANCIAL PERFORMANCE ................................. 34
OUTLOOK ............................................................ 37
CONTENTS
FINANCIAL STATEMENTS INTRODUCTION
     
 
GENERAL INFORMATION .................................... 39
ENVIRONMENTAL INFORMATION ........................ 57
SOCIAL INFORMATION ........................................ 76
GOVERNANCE INFORMATION ........................... 98
ENTITY-SPECIFIC DISCLOSURES ..................... 103
2025 IN BRIEF: KEY FIGURES ............................... 4
KEY FIGURES BUSINESS AREAS ........................ 5
CEO LETTER ......................................................... 6
EXECUTIVE MANAGEMENT ................................... 8

FINANCIAL STATEMENTS OF THE GROUP ........... 106
FINANCIAL STATEMENTS
OF THE PARENT COMPANY .............................. 155
CONSOLIDATED KEY FINANCIAL DATA ............ 169
ALTERNATIVE PERFORMANCE MEASURES ..... 170
DECLARATION TO THE ANNUAL REPORT 2024 ... 173
AUDITOR’
BOARD OF DIRECTORS’ REPORT
ANNUAL REPORT 2025 // CONTENTS
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
INTRODUCTION
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
FREE CASH FLOW MEUR
2023 2024 2025
885
788
713
2025 IN BRIEF:
KEY FIGURES
713M€
13.6M€
1.9%
6.7M€
ANNUAL REPORT 2025 // KEY FIGURES
2023 2024 2025
-34.9
-20.3
6.7
REVENUES MEUR
4
EBIT, EBIT MARGIN
EBIT (MEUR) EBIT margin (%)
2023 2024
2025
-2.2
2.4
1.9
18.7
13.6
-19.7
5
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
DRIVE CONTROL SYSTEMS
REVENUES MEUR REVENUES MEUR
EBIT, EBIT MARGIN EBIT, EBIT MARGIN
EBIT (MEUR)
EBIT (MEUR)
EBIT margin (%)
EBIT margin (%)
2023 2024 2025
2023
2024
2025
2023 2024
2025 2023 2024 2025
FLOW CONTROL SYSTEMS
-6.2
1.9
-0.7
5.0
3.1
5.5
-35.3
15.6
16.4
9.6
414
572
481
313
307 299
KEY FIGURES
BUSINESS AREAS
ANNUAL REPORT 2025 // KEY FIGURES
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9.1
-2.8
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
Dear Kongsberg Automotive Stakeholders,
When I assumed the role as President & CEO of Kongsberg Automo‑
tive (KA) at the end of March 2025, I did so with a strong sense of personal
responsibility for the company, its people, and its future. Having previ‑
ously worked for KA for many years, I also brought with me deep respect
for the company’s history, as well as a clear conviction that KA has a sig‑
nicant untapped potential.
From the outset, it was clear that KA needed stronger accountability,
sharper strategic focus, and more disciplined execution. During 2025, we
therefore made conscious and deliberate changes to how the company is
led and managed. A key priority during my rst months as the CEO was
to strengthen and renew the Executive Leadership Team, ensuring that
KA is led by individuals who combine strong industry knowledge with a
clear sense of responsibility, ownership, and commitment to change. In
parallel, we reorganized the company to clarify accountability and deci‑
sion‑making by strengthening our two business areas. Later in the year,
we further sharpened this focus by establishing several business units
(BUs) within each business area. By the end of 2025, the Flow Control
Systems Business Area comprised three BUs, while the Drive Control Sys‑
tems Business Area comprised ve BUs, each with clear responsibility for
customers, products, execution, and results.
Customer focus and customer satisfaction are fundamental to our strat‑
egy and to the organizational changes we have made. The establishment of
BUs was a deliberate step to place accountability closer to the customer,
enabling stronger alignment of strategic product roadmaps, improved exe‑
cution, and faster, more effective decision‑making. By organizing in this
way, we strengthen our ability to respond to customer needs, deliver con‑
sistent performance, and build long‑term relationships based on trust.
Cost discipline and operational focus were essential themes through‑
out 2025, particularly in light of weaker market conditions compared
CEO LETTER
ANNUAL REPORT 2025 // CEO LETTER
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
with 2024. We continued to execute existing overhead
cost‑reduction programs and initiated an additional sig‑
nicant program. We also decided to implement neces‑
sary restructuring initiatives, including the consolidation
of the Ljungsarp plant into the Mullsjö plant and the clo‑
sure of the Zurich ofce, both of which will be completed
during 2026. Throughout this work, we maintained a
strong focus on continuous improvement, recognizing
that sustainable cost efciency is achieved by consis‑
tently challenging the status quo, applying disciplined
effort, and paying close attention to details.
The extraordinary tariffs introduced by the United
States represented a challenge during the year, affect‑
ing both cost and demand, and were addressed through
focused actions. We also faced warranty cost challenges
related to certain legacy contracts. Mitigating actions
have been implemented to prevent recurrence. Improving
cash ow remained a clear priority, supported by stronger
nancial discipline and working capital actions.
The recent war in Iran and broader conicts in the
Middle East have increased volatility in energy markets
and heightened overall economic uncertainty. While
KA has no direct exposure to the region, such develop‑
ments may indirectly impact our operations through
higher energy, logistics, and raw material costs, as well
as increased uncertainty in customer demand and supply
chains. The potential effects and duration of these devel‑
opments remain uncertain, and we continue to closely
monitor the situation and take prudent actions to miti‑
gate potential impacts.
Developing unique products that deliver signicant
customer value in attractive and growing market seg‑
ments remains central to KA’s strategy and long‑term
competitiveness. While maintaining nancial discipline,
we therefore continued to invest selectively in innova‑
tion and long‑term growth. We obtained full ownership
of Chassis Autonomy, positioning KA for growth in the
ANNUAL REPORT 2025 // CEO LETTER
rapidly expanding Steer‑by‑Wire segment and acquired
the remaining 25% ownership in Kongsberg Automotive
Morse Shanghai, providing greater exibility and strate‑
gic options in China.
During 2025, we revised our long term strategic goals.
At our Capital Markets Day, we presented a long term
EBIT target of 6.5% on current activity levels, reafrm‑
ing our commitment to delivering sustainable long term
shareholder value. An improvement in activity levels
would provide an upside to our EBIT target.
While we made important changes and achieved
meaningful progress during 2025, we are fully aware
that signicant work remains, and that we are still have
many things to get in order. Realizing KA’s full potential
is a marathon, not a sprint, and sustainable improvement
will not be achieved through shortcuts or quick xes. It
requires disciplined execution, the ability to learn, con‑
sistent follow‑through, and the resolve to stay the course
over time. Progress will be built step‑by‑step as we delib‑
erately strengthen a performance‑oriented KA culture,
structure, and set of processes designed to endure and
deliver lasting results.
The direction is clear and expectations are high. As I
have communicated consistently in our earnings calls,
restoring value creation for shareholders remains our top
priority. I strongly believe in the future of KA. While we
approach the journey ahead with humility and respect
for the task, I am condent in our ability to realize KA’s
full potential.
Trond Fiskum
President & CEO
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EXECUTIVE
MANAGEMENT
ANNUAL REPORT 2025 // EXECUTIVE MANAGEMENT
Erik Magelssen
Chief Financial Ofcer
Trond Fiskum
President & Chief Executive Ofcer,
Interim EVP Drive Control Systems
Oscar Jaeger
EVP Human Resources
Thomas Danbolt
EVP Flow Control Systems
Kristian Rajkovic
General Counsel
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BOARD OF
DIRECTORS’
LETTER
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Auditor’s Report Governance Business and PerformanceBoD's Letter Sustainability Statements Financial Statements
In 2025, the Board of Directors (the Board) prioritized three objectives:
> Establishing a new management team and changing the organizational structure to
ensure a performance-driven culture promoted by the right incentives
> Securing a competitive cost base and ensuring positive cash ow
> Driving strategic innovation to ensure long-term success in a rapidly changing
business environment
The company has delivered on these parameters.
BOARD OF DIRECTORS’
LETTER
ANNUAL REPORT 2023 // BOARD OF DIRECTORS’ LETTER
KA’s revenue fell close to 10% from 2024. This broadly cor‑
responds to overall market trends and development. Mar‑
ket visibility is limited both in the short term and over
a longer period. Customer forecasts and analytics sug‑
gest that early 2026 will mirror late 2025, with potential
improvement expected later this year. The company will
align resources with deliveries.
The current business climate for the global vehicle
industry is often described with words like uncertainty
and limited visibility. Factors affecting our end‑mar‑
kets include military conicts, tariffs, shifting regula‑
tions, and environmental changes. Despite these uncer‑
tainties, the Board expects electrication, autonomation,
safety, and sustainability to remain top trends in the vehi‑
cle industry. This creates opportunities. We have a strong
focus on innovation and strategic priorities in the com‑
ing years. Research and development (R&D) expenses in
2025 exceeded those of the prior year. New products have
been launched through close collaboration with some of
our leading customers. An important strategic acquisition
in 2025 was obtaining full ownership of Chassis Auton‑
omy, which is now strategically and operationally inte‑
10
New Board members were elected at an Extraordinary
General Meeting at the end of 2024 to restore the value
of Kongsberg Automotive (KA). Following years of poor
operational performance and a continuously weakening
market, immediate changes were clearly needed. Trond
Fiskum was appointed as the new President & CEO, join‑
ing the company at the end of March 2025. Fiskum had
previous experience from KA, knew the company well,
and represented the analytical and executional capabil‑
ities required for the role. He quickly and professionally
formed his new management team and implemented a
new organizational structure, utilizing proven principles
applied in the past. Good values and management prac‑
tices were reintroduced, with focus on a competence‑
and performance‑driven culture, supported by incentive
alignment and accountability.
As a result, signicant reductions in overhead costs
have been achieved, in addition to reducing direct costs.
We are seeing a positive trend in cash ow generation and
deleveraging our balance sheet, in spite lower revenues.
We cannot inuence the market, but we need to have a
sustainable cost base that makes KA protable.
grated with the organization. The portfolio of innovations
and new product developments offer exciting prospects
for the future and are receiving strong interest from
our customers.
The volume and value of new contracts placed by our
customers in 2025 have been low. This can be attributed
to ongoing market uncertainties in various end‑markets,
as well as the deferred timing of new vehicle program
launches. Nevertheless, there were no signicant contract
losses in 2025. Based on the current information available,
more new orders should be placed during 2026.
The journey of creating value has just begun. The
Board, together with an ambitious management team, has
set challenging goals for 2026. This includes targets on
protability, cash ow, business growth, innovation, sus‑
tainability, and strategic positioning.
Increasing shareholder value is imperative for
the Board.
The Board thanks KA’s customers, employees, man‑
agement, partners, and our shareholders for their ongo‑
ing support.
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GOVERNANCE
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
1. IMPLEMENTATION OF THE PRINCIPLES FOR
CORPORATE GOVERNANCE
Kongsberg Automotive’s (KA’s) guidelines for Corporate
Governance conform to the Norwegian Code of Practice
for Corporate Governance of August 28, 2025, and the
company’s compliance with the 15 recommendations of
the Code is explained in the following section.
The Board of Directors (the Board) has dened the com‑
pany’s core values which are reected in the company’s
Code of Conduct. The Code of Conduct includes ethical
guidelines and guidelines for corporate social responsibil‑
ity, including, but not limited to, a ban on bribery, corrup‑
tion, and facilitation payments, the prohibition of unlaw‑
ful discrimination, and the prohibition of forced and child
labor. For details about policies for diversity and equal
opportunities, please refer to the Board’s Social Informa‑
tion section. Suppliers to the company are required to con‑
rm their adherence to these principles by signing a par‑
ticular certicate. The company has further clear policies
on environmental issues and health and safety. The policies
are available on the company’s website.
2. DEFINITION OFKA’S BUSINESS
The objective of the group is dened in the Articles of
Association for the company, Article 2:
The company’s objective is to engage in the engineering
industry and other activities naturally related thereto, and
the company shall emphasize the development, market
-
ing and manufacturing of products for the vehicle indus-
CORPORATE
GOVERNANCE
try. The company shall be managed in accordance with gen-
eral business practice. The company may co-operate with,
establish, and participate in other companies.
Article 2 provides a broad denition of the actual business
of the company at present. The Annual Report provides
a more detailed presentation of the main business seg‑
ments in which KA operates. Further, the Annual Report
contains a description of the company’s objectives and
principal strategies. The Board evaluates the company’s
objectives, strategies, and risk prole every year to ensure
that the company creates value for its shareholders in a
sustainable manner and that nancial, social, and envi‑
ronmental matters are considered.
3. EQUITY AND DIVIDENDS
The company shall have an equity capital which over time
is at an appropriate level for its objective, strategy, and risk
prole. The company’s Dividend Policy states the following:
Kongsberg Automotive shall create good value for its share-
holders, employees, and society. Return to shareholders will
be a combination of changes in share price and dividends.
The Board’s intention is that dividends will be approxi
-
mately 30 % of the company’s net income, provided that the
company has an efcient capital structure.
The share capital of KA currently amounts to NOK
951,423,131 with a nominal share value of NOK 1.00. The
company holds 18,225,314 shares as of December 31, 2025.
ANNUAL REPORT 2025 // CORPORATE GOVERNANCE
The General Meeting of May 23, 2025, granted a mandate
to purchase up to 95,142,313 treasury shares. No treasury
shares have been acquired under this mandate.
The above mandate is time‑limited and expires at the
earlier of the next ordinary General Meeting or June 30,
2026.
4. EQUAL TREATMENT OF SHAREHOLDERS AND
TRANSACTIONS WITH RELATED PARTIES
KA has only one class of shares, and all shareholders in
KA enjoy equal rights. Transactions in own shares are
carried out through the stock exchange or at prevailing
stock exchange prices. Possible buybacks will be car‑
ried out at market prices and in accordance with the safe
haven principles.
There were no signicant transactions in 2025
between the company and the company’s shareholders,
board directors or members of the executive manage‑
ment, or parties closely associated with such parties.
5. SHARES AND NEGOTIABILITY
The shares in KA are freely negotiable, and there are no
restrictions on the negotiability of the shares.
6. GENERAL MEETINGS
The notice to convene the General Meeting is published on
the company’s website (www.kongsbergautomotive.com)
no later than 21 days prior to the meeting. Furthermore,
the notice is sent to all known shareholders on the same
date. Supporting information, such as proposals for reso‑
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
lutions to be considered by the General Meeting and recommendations by
the Nomination Committee, are enclosed with the notice and made avail‑
able on the website at the same time. The supporting material is sufciently
detailed and comprehensive to allow all shareholders to form a view on all
matters to be considered at the General Meeting. Documents that accord‑
ing to law shall be distributed to the shareholders may, according to the
Articles of Association, be made available on the company’s website. The
company encourages all shareholders to consent to receiving the notice
electronically through VPS.
Shareholders who wish to attend the General Meeting shall, according
to the Articles of Association, notify the company or its announced rep‑
resentative no later than two business days prior to the General Meeting.
The notice calling the General Meeting provides information on the
procedures the shareholders must observe at the General Meeting, includ‑
ing the procedure for representation by proxy.
Shareholders who cannot attend the General Meeting may vote by
proxy. Forms for the granting of proxies are enclosed with the summons
to the General Meetings and are also available on the company’s web‑
site. The form of proxy includes provisions that allow for instructions on
the voting for each individual agenda item. The company will nominate
a person who will be available to vote on behalf of the shareholders as
their proxy.
Further to the amendment of the Articles of Association of the com‑
pany in 2024, shareholders may also alternatively vote in advance of the
General Meetings.
The Chair of the Board and the Chief Executive Ofcer will attend
the General Meeting and to the extent possible, other members of the
Board, members of the Nomination Committee, the Auditor, and the
Chief Financial Ofcer.
The General Meetings are usually opened by the Chair of the Board. A
person that is independent of the Board, the management, and the major
shareholders is proposed to be elected to chair the General Meeting. The
shareholders are encouraged to propose candidates.
The General Meeting follows a procedure that allows the shareholders
to vote on each individual matter, including on each individual candidate
nominated for election. The company’s website will also provide infor‑
ANNUAL REPORT 2025 // CORPORATE GOVERNANCE
mation regarding the rights of the shareholders to propose matters to be
considered by the General Meeting. The General Meeting is usually held
as a virtual meeting to allow more shareholders to attend. The Articles of
Association of the company do not prescribe any exception from chapter
ve of the Act on Public Limited Liability Companies.
7. NOMINATION COMMITTEE
It follows from §5 of the company's Articles of Association that the com‑
pany shall have a Nomination Committee consisting of three members
elected by the General Meeting for three years at a time, unless the Gen‑
eral Meeting resolves otherwise.
The duties of the Nomination Committee are to propose candidates to
the Board and to propose remuneration to the directors and members of
the Board committees.
The members of the Nomination Committee elected at the General
Meeting on May 23, 2025, are Arild Christoffersen (Chair), Endre Kol‑
bjørnsen and Tore Vik. All members of the Nomination Committee are
independent of the Board, and members of management and have no
other functions in the company. The General Meeting has adopted an
instruction for the Nomination Committee, which is available on the
company’s website. The Committee’s nominations and recommenda‑
tions are enclosed with the summons for the General Meeting and are
available on the company’s website. The Nomination Committee stays
in regular contact with major shareholders, Board directors, and man‑
agement. The Nomination Committee’s recommendation to the General
Meeting includes reasons for its recommendation and relevant back‑
ground information on the nominated candidates and current direc‑
tors, as well as an assessment of how the candidates meet the company’s
needs for expertise, capacity, and diversity.
Information about the Nomination Committee and the deadlines for
submitting proposals to the Nomination Committee is available on the
company’s website, where the shareholders are encouraged to propose
candidates for directorships.
The remuneration paid to the Nomination Committee is determined
by the General Meeting.
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8. BOARD OF DIRECTORS, COMPOSITION,
AND INDEPENDENCE
The Board shall, according to the Articles of Association of
the company, consist of between three and nine members,
of whom up to ve members shall be elected by the General
Meeting. The Board of Directors elects its Chair according
to §6–1,2,2 of the Public Limited Liability Companies Act.
The Board consists, at present, of the following directors
elected by the General Meeting: Olav Volldal (Chair), Bård
Klungseth, (Deputy Chair) Brian Kristoffersen, Synnøve
Gjønnes, and Ulla‑Britt Fräjdin‑Hellqvist. The following
directors have been elected by the employees: Siw Reidun
Wærås Bjerke, Hilde‑Yvonne Beggerud, and Ørjan Langnes.
All Board directors elected by the General Meeting are
elected for periods of one year and are eligible for re‑elec‑
tion. All Board elections are based on a simple majority vote.
The Board directors are independent of executive manage‑
ment and material business contacts of the company. All
Board directors elected by the General Meeting are inde‑
pendent of the main shareholders. Participation in Board
meetings and Board committees in 2025 was as follows:
BOARD MEETINGS
COMPENSATION
COMMITTEE
AUDIT
COMMITTEE
OLAV VOLLDAL 11 12
BÅRD
KLUNGSETH 11 12
BRIAN KRISTOFFERSEN 11 7
SYNNØVE GJØNNES 11 7
ULLA-BRITT FRÄJDIN-HELLQVIST 5 4
SIW REIDUN WÆRÅS BJERKE 11 4
HILDE-YVONNE BEGGERUD 5
ØRJAN LANGNES 6
JUNYANG SHAO 5 3
KNUT MAGNE ALFSVÅG 4
BJØRN IVAN ØDEGÅRD 8
1) Served from May 23, 2025 2) Served until May 23, 2025 3) Served on the Compensation
Committee from May 23, 2025
Information about the shareholdings of the Board direc‑
tors is included in the Annual Report and is also available
on the company’s website.
9. WORK OF THE BOARD OF DIRECTORS
The Board holds the ultimate responsibility for manag‑
ing the group and for monitoring day‑to‑day manage‑
ment and the group’s business activities. The Board is also
responsible for establishing control systems for the group.
The Board’s responsibilities also include developing and
adopting the company’s strategies.
The Board has issued Rules of Procedure for the Board
as well as instructions for the Chief Executive Ofcer of
the company, with the aim of establishing a clear internal
allocation of responsibilities and duties.
The Rules of Procedure include regulations pertain‑
ing to agreements with closely related parties. The Rules
of Procedure are available on the company’s website. The
Board schedules at least six Board meetings per year. Addi‑
tional Board meetings are held when deemed necessary.
The Board hires the CEO, denes the work instruc‑
tions, and decides on the CEO’s remuneration. The Board of
Directors has appointed a Compensation Committee and
an Audit Committee. The members of said committees are
independent of executive management. The authority of
the committees is to make recommendations to the Board.
The Board evaluates its performance and expertise
regularly by means of self‑assessment. This assessment
is usually executed using questionnaires which are com‑
pleted by each director, followed by a common review. A
self‑assessment report is to be distributed to the Nomina‑
tion Committee.
ANNUAL REPORT 2025 // CORPORATE GOVERNANCE
10. RISK MANAGEMENT, INTERNAL CONTROL, AND
FINANCIAL REPORTING
10.1 RISK MANAGEMENT AND INTERNAL CONTROL
Risk assessment is a management responsibility. Its objec‑
tive is to identify, evaluate, and manage risks that could
reduce an individual unit’s ability to achieve its goals.
The assessment and handling of risk are integrated
into the group’s value‑based management system. The
purpose of the management system is to ensure that there
is a correlation between objectives and actions at all lev‑
els of the group and the general principle of value creation
for KA’s stakeholders.
In 2025, the group has been organized with a sepa‑
rate Internal Audit function, which followed an internal
audit program previously approved by the Audit Com‑
mittee. The Internal Audit manager reported to the CFO
and the Audit Committee. Going forward, there will be an
internal control function that will be managed and coor‑
dinated by the Group Finance team, where several team
members will be involved in the internal control tasks in
close cooperation with the business area controllers and
the plant controllers.
10.2 FINANCIAL REPORTING
KA publishes quarterly nancial statements in addition to
the annual report. Internal reports are produced monthly
and quarterly, in which the performance of each business
area is analyzed and evaluated against forecasts. KA’s
consolidated nancial statements are prepared by the
Group Accounting team, which reports to the group CFO.
Prior to discussions with the Board, the Audit Com‑
mittee performs a preliminary review of the quarterly
nancial statements and Annual Report, with a particular
emphasis on the subjective valuations and estimates that
have been made. The external auditor attends all Audit
Committee meetings.
15
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A number of risk assessments and control measures have been established
in connection with the publication of the nancial statements. Internal
meetings are held with the business areas and subsidiaries, as well as a
meeting with the external auditor, to identify risk factors and measures
associated with material accounting items or other circumstances. Sim‑
ilar meetings are also held on a quarterly basis with various professional
environments within the group, with a particular focus on any mar‑
ket changes, specic circumstances relating to individual investments,
transactions, and operating conditions, for example.
11. REMUNERATION TO THE BOARD OF DIRECTORS
The remuneration paid to each Board Director is specied in the Remu‑
neration Report, which is made available on KA’s website. The remunera‑
tion is proposed by the Nomination Committee and approved by the Gen‑
eral Meeting. The directors hold no function in the company other than
the directorships of the Board and memberships of committees to the
Board. The Board directors are not entitled to performance‑related com‑
pensation and are not granted or entitled to any share options.
12. REMUNERATION TO THE EXECUTIVE MANAGEMENT
The Board has established guidelines relating to remuneration to executive
management, which are presented to the Annual General Meeting for con‑
sideration. The guidelines are available to shareholders and are included
in the appendices to the notice for the Annual General Meeting. The remu‑
neration to executive management is reviewed annually by the Compensa‑
tion Committee and the Board. Each year, the Board prepares a report on
the compensation and benets provided to senior personnel in accordance
with the Act on Public Limited Liability Companies, Section 6–16b. Infor‑
mation about the remuneration paid to the executive management of the
company is included in the notes to the annual accounts. Performance‑re‑
lated remuneration, such as bonuses and share option programs, are based
on the company’s nancial results and are subject to absolute limits.
13. INFORMATION AND COMMUNICATION
The Board has established guidelines for the company’s reporting of
nancial and other information based on openness and compliance with
the requirement for equal treatment of all participants in the nancial
markets. A nancial calendar for the company is available on the compa‑
ny’s website and is published on the website of the Oslo Stock Exchange.
All information distributed to shareholders is made available simulta‑
neously on the company’s website.
14. TAKEOVERS
The Board has established guiding principles for how it will act in the
event of a takeover bid. These are compliant with Article 14 of the Code of
Practice. The main elements of these principles are included in the Rules
of Procedures for the Board of Directors and are available on the compa‑
ny’s website.
There are no defense mechanisms in the Articles of Association for
the company or any underlying documents, nor are there any measures
implemented to limit opportunities to acquire shares in the company.
If an offer is made for the company’s shares, the company’s Board of
Directors shall issue a statement evaluating the offer and making a rec‑
ommendation as to whether shareholders should or should not accept
the offer. The Board should consider whether to arrange a valuation by an
independent expert.
The Board shall not seek to hinder or obstruct takeover bids for the
company’s activities or shares unless there are particular reasons for this.
15. AUDITOR
The auditor presents the main elements of the plan for the audit of the
company to the Audit Committee on an annual basis. The auditor par‑
ticipates in all Audit Committee meetings and the Board meeting where
the annual nancial statements are approved. The auditor further meets
with the Board without the management of the company present at least
once a year. The auditor reviews the internal controls of the company and
presents the results of its review to the Audit Committee together with
any weaknesses identied and with proposals for improvements. The
company has established guidelines for the auditor’s and associated per‑
sons’ non‑auditing work. The compensation to the auditor is disclosed in
a note to the annual accounts hereto and is also reported and approved by
the Annual General Meeting.
ANNUAL REPORT 2025 // CORPORATE GOVERNANCE
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
GOING CONCERN
In accordance with section 2–2 of the Norwegian Account‑
ing Act, the Board hereby conrms that the consolidated
nancial statements and the nancial statements of the
parent company have been prepared on a going concern
basis, and that there are reasonable grounds to assume
that the company is a going concern.
SUBSEQUENT EVENTS
No signicant subsequent events have been identied.
OPERATIONAL RISK
KA supplies products that are safety critical. Suppliers in
the automotive industry face the possibility of substantial
nancial liability for warranty claims relating to poten‑
tial product or delivery failures. This liability represents
a potential risk. Working methods and validation proce‑
dures implemented by the company are designed to mini‑
mize this risk. KA is normally contracted as a supplier with
a long‑term commitment. This commitment is usually
based on a vehicle platform for which volumes are esti‑
mated and not guaranteed. Even if present commitments
are cost‑reimbursable, they can be adversely affected by
many factors and short‑term variances, including short‑
ages of materials, components, equipment, and labor.
Other factors and variances are ination, political risk,
customer default, industrial disputes, accidents, environ‑
mental pollution, the prices of raw materials, the imple‑
mentation of new tariffs, and other unforeseen problems,
changes in circumstances that may lead to cancellations,
and other risk factors beyond the control of the group.
ANNUAL REPORT 2025 // CORPORATE GOVERNANCE
RISK MANAGEMENT
Responsibility for the group’s nancial risk management
is mainly centralized, and risk exposure is continuously
monitored. The group has identied a specic risk cata‑
log and has classied all risks according to their poten‑
tial impact. The group constantly evaluates its nancial,
infrastructure, marketplace, and reputational risks, and
has developed procedures and strategies to mitigate all
risks classied as “high.” For more information regarding
risk management, see note 23.
17
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BOARD
OF DIRECTORS
ANNUAL REPORT 2025 // BOARD OF DIRECTORS
Ulla-Britt Fräjdin-Hellqvist
Director
Elected: 2025
Nationality: Swedish
Bård Klungseth
Deputy Chair
Elected: 2024
Nationality: Norwegian
Olav Volldal
Chair
Elected: 2024
Nationality: Norwegian
Synnøve Gjønnes
Director
Elected: 2024
Nationality: Norwegian
Current Board positions:
Non‑executive Board Member, DEFA Lighting AS (2023–present),
Member, DEFA Advisory Board (2010–present), amongst others
Education:
> Master of Science, Norwegian University of Science and Technol‑
ogy (1969‑1973)
> Ofcer Candidate School, Norwegian Army 1974, Sgt.
Experience:
> President & CEO, Kongsberg Automotive ASA (1987‑2010)
> EVP, Automotive Division, Kongsberg Våpenfabrikk (KV)
(1984‑1987)
> Plant Manager, Automotive Division KV (1982‑1984)
> VP, Corporate Planning, KV (1980‑1982)
> Quality Systems and Corporate Planning, KV (1975‑ 1980)
Experience in sustainability issues:
> Responsible for setting sustainability targets, follow‑up and
external reporting, incl. ISO 14001 (Environmental Management
Systems) certication, as KA’s President & CEO (1987-2010)
> Involved in sustainability target setting and reporting in several
companies, as a Board Member
Other experience:
> Former Chair of the Board of Directors in various companies
including the Advisory Board of Metalsa (2014–2021), Fibo
Group (2015–2018), Nettpartner Holding (2012–2018), Lindum
(2011–2017), Norwegian Institute of Technology (2010–2015),
amongst others
> Former Board positions include Non‑Executive Board Member,
Telenor ASA (2007–2011) and Non‑Executive Board Member,
Navico (2010–2015) to name a few
Number of shares as of December 31, 2025: 550,000
Current positions:
CEO, DEFA Group (2011‑present)
Education:
> Executive MBA, BI, Norwegian School of Management EMBA
(2010‑2011)
> M.Sc. Norwegian University of Science and Technology Mechani‑
cal Engineering (1985‑1990)
> Ofcer Candidate School, Royal Norwegian Air Force, Sgt.
(1983‑1984)
Experience:
> COO Kongsberg Automotive (2010‑2011)
> EVP Actuation Systems Kongsberg Automotive (2008‑2010)
> EVP Driveline & Chassis Kongsberg Automotive (2007‑2008)
> EVP BA Commercial Vehicle Systems (CVS) Kongsberg Automo‑
tive (2003‑2007)
> EVP Global Purchase Kongsberg Automotive (2002‑2003)
> Director Manufacturing Kongsberg Automotive, Division CVS
(1999‑2002)
Experience in sustainability issues:
Overall responsible for sustainability strategy and certication of
DEFA Group’s Management System according to:
> ISO 14001 (Environmental Management Systems), ISO 45001
(Occupational Health and Safety), ISO 9001 (Quality Management
Systems), including endorsement of ISO 26000 (Social Respon‑
sibility) and alignment with the UN Sustainable Development
Goals
Other experience:
> Managing Director, DEFA AS (2011‑present)
> Board Member, DEFA AS (2011‑present)
> Managing Director, DEFA OY (2011‑present)
> Board Member, DEFA AB (2011‑present)
> Managing Director, DEFA NA Inc. (2011‑present)
> Board Member, Loyds Industri AS (2016‑2017)
> Chair of the Board, HBK invest & Consulting (2005‑2011)
> Chair of the Board, Kongsberg Automotive AS (2008‑2010)
> Board Member, KA Spain, KA India, KA Inc., KA Poland, KA UK
(2008‑2011)
> Board Member, BIA Norwegian Research Council (2008‑2009)
> Managing Director, Kongsberg Automotive AS (2005‑2008)
Number of shares as of December 31, 2025: 173,000
Current positions:
Financial Advisor, Lotma Advisory AS (2023‑present), various advi‑
sory and board positions
Education:
> London School of Economics and Political Science, CEMS Mas‑
ter’s in International Management (2012‑2013)
> ESADE Business School, Master of Science in Finance, CEMS
Master’s in International Management (2011‑2012)
> BI Norwegian Business School, Bachelor’s in Finance (2008‑2011)
Experience:
> Board Member, Skagerak Energipartner AS (2023‑)
> Portfolio Manager, Nordic equities at REQ Capital AS (2021‑2023)
> Portfolio Manager, Norwegian Equities KLP Kapitalforvaltning
(2018‑2021)
> VP Strategy and M&A, Kværner ASA (2018)
> Equity Partner at Pareto Securities AS, roles within Equity
Research and Corporate Finance
Experience in sustainability issues:
> Responsible for ESG and sustainability reporting at REQ Capital
AS, responsible portfolio manager for Nordic fund classied as
Art.8 according to SFDR (2021‑2023)
> Responsible for enforcement of active ownership strategy in des‑
ignated companies in KLP Kapitalforvaltning AS (2018‑2021)
Other experience:
> Member of Nomination Committee, Kongsberg Automotive ASA
(2019‑2022)
> Committee for Financial Information in the Norwegian Society of
Financial Analysts (2019‑2022)
Number of shares as of December 31, 2025: 80,000
Current positions:
Managing Director, Fräjdin &
Hellqvist AB
Education:
> M.Sc. Engineering Physics, Chalmers University of Technology
Experience:
> Chair and Board Member of several Swedish companies, research
institutions, and organizations
> Active in family‑owned companies, focusing on issues related to
industry, environment, science, and societal development
> Previous work assignments include leading positions at Volvo
Cars and Svenskt Näringsliv, Chair and Board Member roles
across listed, private, and state‑owned companies, foundations,
and non-prot organizations
Experience in sustainability issues:
> Director Competence Center Environment, Volvo Cars (1994‑94).
Established and developed the competence center. Responsible
worldwide for Environmental Strategies and Goals regarding
both the vehicle itself and the production, purchase, and market‑
ing. Spokesperson
> SVP Environment and Sustainability Swedish Confederation of
Enterprise (2001‑2005), responsible for all policies and strate‑
gies, spokesperson
> Chairperson research program FFI (nances research, innovation
and development in the automotive sector related to the environ‑
ment and safety. (2009‑2025)
> Board Member MISTRA foundation for strategic environmental
research (1997‑2002)
> Board Member Stockholm Environmental Institute ( 2009‑2013)
Other experience:
> Board Member in several companies, institutions and founda‑
tions; Tällberg foundation (2009‑2014), Data Respons (2011‑
2021), Holmberg safety (2017‑2021), Smarter electronic systems
(2009‑2014)
> Member of the Royal Swedish Academy of Engineering Sciences
(IVA, 2004)
> Board Member, Kongsberg Automotive ASA (2007‑2016)
Number of shares as of December 31, 2024: 100,000
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BOARD
OF DIRECTORS
Ørjan Langnes
Employee representative
Elected: 2025
Nationality: Norwegian
Siw Reidun Wærås Bjerke
Employee representative
Elected: 2021
Nationality: Norwegian
Brian Kristoffersen
Director
Elected: 2023
Nationality: Danish
Hilde-Yvonne Beggerud
Employee representative
Elected: 2025
Nationality: Norwegian
Current positions:
CEO, BK Company Group; Investor and holder of various positions
at different companies
Education:
> MBA from Henley University in London (1999‑2004)
> Merkonom in sales and marketing (1992‑1994)
Experience:
> CEO and owner of BK Invest Company Ltd (2023‑present)
> CEO and owner of BK Company ApS (2011‑present)
> CEO and co‑owner of B.K. Company ApS (2012‑present)
> CEO and co‑owner of S‑13 Vedbæk ApS (2011‑present)
> CEO and owner Sp/f BK (2003‑2024)
> CEO and co‑owner of Rosemunde ApS (2011‑2022), acquired by a
Swedish listed company
> CEO of Circle Europe A/S (1998‑2011)
> CEO of A/S Deres Design (1998‑2011)
Experience in sustainability issues:
> Implementing activities that are consciously aimed at minimiz‑
ing impact on the environment in close collaboration with our
suppliers (manufacturing and supply chain)
> Activities involve making choices that reduce waste, conserve
resources, and support ethical practices. At the same time, the
focus was to improve the social and economic balance
Other experience:
> Member of the Board in several companies, including in Circle
Europe A/S, A/S Deres Design, Everyday Luxury Feeling A/S, and
in various entities within
> The Rosemunde Group
> Local council member in Sydbank A/S (2012‑2022)
> Member of the Board of Directors of BK Company ApS
Number of shares as of December 31, 2024: 12,601,486
Current positions:
Quality & HSE Manager, Flow Control Systems (Couplings) at
Raufoss, Norway
Education:
> Technical education in computer programming at Fagskolen
Innlandet in Norway
Experience:
> Experience in the automotive industry since 1994, and within
Quality and HSE since 1997.
> Quality Engineer at Kongsberg Automotive (2012‑2015)
> Purchase and QA Manager at Ring Mekanikk(2015‑2017)
> Senior QA Engineer at Kongsberg Automotive (2018‑2019)
> QA & HSE Manager at Kongsberg Automotive (December
2019‑present)
Experience in sustainability issues:
> Responsible for the implementation of ISO 14001 (Environmental
Management Systems) since 2005
> Responsible for the implementation of ISO 45001 (Occupational
Health and Safety) since 2021
Number of shares as of December 31, 2024: 7,500
Current positions:
Operator, Aftermarket Sales, Driver Control Systems at
Hvittingfoss, Norway
Education:
> Hospitality & Business Studies, Buskerud, Norway
Experience:
> Operator, Aftermarket Sales in the automotive industry
(2021‑present)
Other experience:
> Locally elected leader of the union at the Hvittingfoss plant
(2021‑present)
Number of shares as of December 31, 2024: 0
Current positions:
Quality Engineer, Flow Control Systems, Raufoss, Norway
Education:
> Bachelor’s Degree in Digital Forensics, Noroff University College
> Courses in Quality Management and Material Knowledge & Pro‑
duction Methods for Plastics, Fagskolen Innlandet, Norway
Experience:
> Quality Engineer, Flow Control Systems (Couplings) at Raufoss,
Norway (2022‑present)
Number of shares as of December 31, 2024: 0
ANNUAL REPORT 2025 // BOARD OF DIRECTORS
19
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RISKS
FINANCIAL RISKS
Due to its capital structure and the nature of its operations, the group is exposed to
the following nancial risks: market risk (including foreign exchange rate risk, raw
material price risk, and interest rate risk), credit risk as well as liquidity and capital
management risk.
FOREIGN EXCHANGE RATE RISK
The group operates in many different geographical mar‑
kets and the resulting net assets, earnings, and cash ows
are inuenced by multiple currencies. Kongsberg Auto‑
motive (KA) is exposed to foreign exchange rate risk in
translation and transaction exposures. Translation expo‑
sures relate to net investments in foreign entities which
are then converted to EUR in the consolidated nancial
statements. Transaction exposures include commer‑
cial transactions and nancing transactions, both inter‑
nally and externally. This concerns European operations
in non‑Euro‑area countries, where costs are in local cur‑
rencies and revenues primarily in EUR, as well as Mexican
operations, where both costs and revenues are primarily
in USD. The group seeks to align its revenue and cost base
to reduce the currency exposure on a net cash-ow basis.
The ultimate parent company’s presentation currency
is the euro, and its functional currency was assessed to be
changed from Norwegian krone to euro, effective Janu‑
ary 1, 2025. This change eliminates foreign‑exchange gains
and losses on EUR-denominated nancial instruments and
removes translation exposure related to the Norwegian
holding operations.
INTEREST RISK
KA successfully renanced its main outstanding nan‑
cial debt in June 2024 using the Nordic bond market. At
the time of renancing, KA issued a EUR 110 million bond
with a maturity of four years, maturing in June 2028. The
bond notes include the possibility of an additional tap
issue of up to a maximum of EUR 50 million at any one
time, with an aggregate maximum of EUR 160 million.
Furthermore, the group issued a super senior revolving
credit facility (SSRCF) with Danske Bank for an amount of
EUR 15 million, maturing in June 2027.
As the interest costs of both instruments are based on
oating interest rates, KA is exposed to interest rate uc‑
tuations. To mitigate this risk, KA has entered into inter‑
est rate swaps with a notional amount of EUR 40 million,
maturing in September 2027, under which KA pays xed
interest and receives oating interest.
In addition, in November 2025 KA renanced an ac‑
counts receivable securitization (ARS) facility provided
by NORD/LB with a maximum amount of EUR 25 mil‑
lion for certain receivables in the US, Slovakia, and Po‑
land. The cost is based on the actual amount drawn under
the facility, and is based on a xed and a oating interest
rate element.
ANNUAL REPORT 2025 // RISKS
CREDIT RISK
Credit risk arises primarily from customer trade receiv‑
ables and nancial institutions, and is managed at both
the group and entity levels. Overdue receivables are mon‑
itored weekly, and historical losses have been limited.
While no material increase in credit risk is expected based
on forward‑looking assessments (see note 17 of the con‑
solidated nancial statements), the automotive industry’s
structure presents some concentration risk. However, the
group considers that this risk is limited, as it maintains a
diversied customer base, including one individual cus‑
tomer contributing more than 10% of total revenue, as
well as solvent Original Equipment Manufacturers and
Tier 1 suppliers.
20
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LIQUIDITY AND CAPITAL RISK
The group’s sources of capital consist of shareholders’
equity, long-term borrowings, and third-party nancing.
Total capital is dened as total equity plus net debt and is
managed to safeguard the business as a going concern, to
maximize returns for its owners, and to maintain an opti‑
mal capital structure to minimize the weighted average
cost of capital. All activities around cash funding, borrow‑
ing, and nancial instruments are centralized within the
KA Treasury department. The development of net inter‑
est‑bearing debt and liquidity reserves is closely monitored.
RATING RISK
The group is subject to non‑public solvency ratings by exter‑
nal business partners and institutions, and to public ratings
by the rating agency Moody’s.
PENSION LIABILITY RISKS
The evaluation of the group’s pension liabilities is sub‑
ject to changes in actuarial assumptions, such as discount
rates and local pension evaluation guidelines.
REGULATORY AND TAX RISKS
The group is subject to a wide variety of laws and regula‑
tions including but not limited to tax regulations and gov‑
ernment and supranational policies, which may change
in signicant ways. There can be no assurance that laws,
tax regulations, and policies or their practical application
by authorities will not be altered in ways that will require
the group to modify its business models and objectives or
affect returns on investment. For regulatory and tax risks,
the group consults professional advisors and implements
the recommended actions. For further risk analysis, see
note 23 of the nancial statements.
CLIMATE- RELATED RISKS
Climate‑related risks for KA primarily stem from poten‑
tial supply chain disruptions caused by extreme weather
events, increased costs of energy and raw materials, and
rising carbon pricing imposed by regulatory bodies. Fur‑
ther details on climate related risks and opportunities are
available in the Sustainability section of this report.
POLITICAL RISKS
Political instability in countries linked to KA’s supply chain,
production network, or customer markets may expose
the company to operational disruptions, reduced product
availability, and emerging trade barriers. In 2025, contin‑
ued geopolitical tensions—including the war in Ukraine,
conicts in the Middle East, and outcomes of several
national elections—contributed to signicant uncertainty
in global markets, including increased volatility in energy
markets and input costs. In February 2025, the United
States implemented new import tariffs affecting certain
KA‑relevant markets, further amplifying global volatility.
KA continuously monitors geopolitical developments and
maintains close collaborations with industry partners to
ensure timely and appropriate mitigation measures.
HEALTH AND SAFETY RISKS
KA’s facilities operate in accordance with ISO 45001
safety standards. The company maintains a comprehen‑
sive set of KPIs to monitor performance and drive contin‑
uous improvement. Safety engagement programs, poli‑
cies, and contingency plans are in place to safeguard KA
employees and all visitors to KA facilities.
OTHER RISKS
ANNUAL REPORT 2025 // RISKS
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PRODUCTION-RELATED RISKS
Production delays and bottlenecks may arise due to
insufcient resources—including materials, utilities,
labor, or equipment—often driven by uctuating cus‑
tomer demand inuenced by supply chain instability. KA
mitigates these risks through comprehensive material
resources replenishment (MRP) based planning, invest‑
ment in skilled production staff, preventive maintenance
rooted in operational excellence, and the ongoing optimi‑
zation of production footprint and supply chain design.
PROJECT MANAGEMENT-RELATED RISKS
Launching new products requires coordinated long‑term
planning across multiple functions, including Sales, Prod‑
uct Development, Purchasing, Equipment Suppliers, Oper‑
ations, Quality, and Finance. Risks include miscommuni‑
cation, incorrect equipment selection, missed deadlines,
and budget deviations. Some of these risks have mate‑
rialized in past projects. The group reduces its project‑
related risks through strengthened project management
practices and close executive oversight.
LEGAL PROCEEDINGS
In the ordinary course of business, KA may be involved
in lawsuits, arbitrations, and other formal or informal
dispute resolution procedures, including the matters
described in the Contingent Liabilities section. Reserves
have been established for these and other legal matters
as appropriate, in line with IFRS® guidelines. However,
estimating the legal reserves required for possible losses
involves signicant judgment and may not reect the full
range of uncertainties and unpredictable outcomes inher‑
ent in litigation. Consequently, actual losses arising from
particular matters may exceed current estimates and
adversely affect the results of operations. KA may also
be involved in investigations and regulatory proceed‑
ings, which could result in adverse judgments, settle‑
ments, nes, and other outcomes. The areas of increased
focus of investigations and proceedings are in compliance
with broader business conduct rules, including those in
respect of competition law, trade sanctions, and data pro‑
tection. KA will be subject to risks arising from alleged, or
actual, violations of any of the foregoing, and could also
be subject to risks arising from potential employee mis‑
conduct, including non‑compliance with internal policies
and procedures as well as malfeasance.
CYBERCRIME RISK
The company relies on digital technologies for commu‑
nication and operational processes and is exposed to
cyber threats that may compromise data condentiality,
availability, and integrity. Risks include theft of sensi‑
tive information, manipulation of critical systems, social
engineering, and loss of digital resources, potentially
resulting in nancial loss or operational disruption. KA’s
cybersecurity framework covers all IS&T systems across
the organization and includes employee training, real‑
time monitoring, external benchmarking, and robust
protective systems such as rewalls, backup solutions,
and antivirus tools.
ANNUAL REPORT 2025 // RISKS
STRATEGIC RISKS
As a supplier of advanced technologies to the automo‑
tive and industrial sectors, KA faces competitive pressure
from both established players and new market entrants.
KA addresses these risks through active new product
development, operational excellence, and maintaining
strong customer relationships. Strategic risks also include
potential M&A activities by suppliers, customers, or com‑
petitors that could impact KA’s market position.
RISKS RELATED TO PRODUCT DEVELOPMENT
Product development carries risks including delays in
time to market, deviations from specications or quality
requirements, budget overruns, and potential infringe‑
ments of third party intellectual property rights. The
company mitigates these risks through dedicated teams
of highly qualied engineers, technicians, and other prod‑
uct development staff, in addition to IP counsels, well‑
equipped modern development facilities as well as test
laboratories and dedicated controls.
RISKS ASSOCIATED WITH PURCHASING AND SUPPLY CHAINS
Procurement risks include supplier insolvency, quality
issues, new non-tariff trade barriers, and uctuations in
raw material prices and availability. Manufacturing and
supply arrangements may be disrupted due to factors
such as labor disputes, shortages of critical inputs, natu‑
ral disasters, disease outbreaks, or other external events.
Volatile market conditions may affect nancial perfor‑
mance, including revenue, protability, and cash ow.
The company mitigates these risks through commercial
negotiations, nancial instruments to balance cost and
risk exposure, and continuous monitoring of supplier per‑
formance. Ongoing global supply chain disruptions are
expected to continue in 2026, creating additional opera‑
tional challenges.
22
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BUSINESS AND
PERFORMANCE
23
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
STRATEGY
BUSINESS MODEL
ANNUAL REPORT 2025 // STRATEGY
23
Global leader in designing and manufacturing products for on‑high‑
way vehicles and the off‑highway industry. Products include, among
others, pneumatic and electric actuation systems for gear control and
clutch actuation, steering column modules, and pedals and throttles
for off‑highway applications.
Designs and manufactures products for both the automotive and
commercial vehicle market as well as industrial applications. FCS’
portfolio includes couplings for air brake and air suspension systems,
clean powertrain uid assemblies as well as chassis and battery cool‑
ant solutions.
DRIVE CONTROL SYSTEMS (DCS)
FLOW CONTROL SYSTEMS (FCS)
BUSINESS AREAS
Kongsberg Automotive (KA) provides innovative and competitive
solutions to the global vehicle industry. KA creates value for its
stakeholders by developing differentiated, customer‑focused
solutions in attractive and growing market segments, while
continuously improving internal cost efciency.
This is underpinned by a strong KA culture characterized by accountability, long‑term
thinking, fact‑based management, ambition, and determination.
KA’s product portfolio spans uid transfer systems, air couplings, high-performance
hoses, powertrain actuators, vehicle dynamics solution, steering systems, and driver
interface products, serving a broad range of vehicle applications worldwide.
The global transition toward sustainable transportation enables KA to increase content
per vehicle across both internal combustion engine (ICE) and electric powertrains. Stricter
emission regulations and higher performance requirements are driving the broader adop‑
tion of some of KA’s solutions, including actuators and clean powertrain uid assemblies.
At the same time, electried powertrains require advanced thermal management
solutions for both driving and fast‑charging applications, as well as high‑performance
electric actuators. KA’s broad market presence and global manufacturing footprint allow
the company to support Original Equipment Manufacturers (OEM) customers with local
proximity in all major regions, helping to balance volume uctuations across individual
markets. In addition, KA serves the aftermarket, further diversifying revenue streams and
strengthening resilience.
% OF KA REVENUES PER REGION
MARKETS
49%
47%
36%
37%
11%
11%
4%
4%
2025 / 2024
AUTOMOTIVE
NON-AUTOMOTIVE
ORIGINAL EQUIPMENT MANUFACTURERS (OEMs)
AGRICULTURE
TIER 1CONSTRUCTION
AFTERMARKETINDUSTRIAL AREAS
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24
CUSTOMER RELATIONSHIPS
PERSONALIZED SERVICE AND SUPPORT:
Offering tailored engineered solutions and dedicated support to meet the unique
needs of each customer, fostering trust and long‑lasting relationships. KA offers
engineering and sales support in each of its major markets.
CO-DEVELOPMENT AND INNOVATION:
Working closely with customers during the product development phase to cre‑
ate customized solutions that enhance vehicle performance, safety, driver com‑
fort, and overall value, enabling our customer to comply with their ambitions
and the current and future vehicle legislations around the world.
LONG-TERM CONTRACTS AND PARTNERSHIPS:
Securing long‑term agreements with vehicle manufacturers provides stabil‑
ity and continuity in business relationships, enabling phased investments and
direct resource allocation. These partnerships foster innovation through close
collaboration and joint research and development (R&D) activities, leading to
the development of advanced automotive technologies and reinforcing KA’s
competitive position in the market.
CUSTOMER-CENTRIC APPROACH:
By continuously engaging with customers to understand their evolving
needs, KA is able to deliver differentiated solutions and sustain a competi‑
tive advantage. This customer‑centric approach enhances product and service
quality while driving innovation through the systematic integration of cus‑
tomer insights into the development process. Through personalized engage‑
ment and proactive collaboration, KA strengthens its market position, builds
long-term customer trust, and identies emerging trends to stay ahead of the
competition.
To further enhance competitiveness, KA focuses on achieving the low‑
est total cost for function while increasing organizational agility. KA aims
to continuously improve service levels and deepen its role as a co‑developer
of systems, supporting customers’ increasingly demanding innovation pro‑
cesses. The company combines a global mindset with strong local execution,
supported by continuous improvement initiatives, including the Continuous
Improvement Process (CIP) and Value Analysis/Value Engineering (VAVE).
SUSTAINABILITY AND QUALITY COMMITMENT:
KA’s ambition is to make a meaningful contribution to society’s efforts to
address climate change and protect the environment. The company is com‑
mitted to reducing carbon emissions and minimizing environmental impact
across both its operations and product portfolio, while enabling customers to
achieve their own sustainability objectives. Further details on KA’s sustain‑
ability performance and achievements are presented in the Sustainability sec‑
tion of this report. Sustainability is an integral part of KA’s overall strategy and
is increasingly leveraged as a source of competitive advantage in selected prod‑
uct areas. During 2026, KA will conduct a comprehensive review of its sustain‑
ability strategy, including an assessment and potential revision of its long‑term
sustainability targets.
KA focuses on establishing and nurturing long-term,
strategic partnerships for automotive and non-automotive
customers. KA’s customer relationships are focused on
understanding specic customer needs, collaboration,
innovation, and the highest levels of service.
ANNUAL REPORT 2025 // STRATEGY
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25
REVENUE STREAMS
DESIGN AND R&D
The design phase involves creating engineering
solutions and providing services such as simula‑
tions, drawings, and validations. KA is, to a certain
extent, compensated separately for these services
by customers. In some cases, local governments
also offer R&D subsidies.
The company generates revenue primarily through the design, manufacturing, and sale of products to customers.
MANUFACTURING
During manufacturing, KA converts raw materials
into components. These components, along with
other purchased parts, are then assembled into
nal products or submodules.
SALES
Revenues in the sales phase come from deliv‑
ered products and modules and from the custom‑
er-specic machinery and tooling necessary for
producing these specialized products.
25
CHANNELS
Over 70% of KA’s global sales are
direct to OEM vehicle builders; the
remainder are through Tier1 suppliers,
distributors, and industrial OEMs for
KA’s PTFE (polytetrauoroethylene)
assembly portfolio. KA’s customer list
is made up of over 40 OEM brands for
whom KA is an important supplier and
development partner.
70%
30%
ANNUAL REPORT 2025 // STRATEGY
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STRATEGIC
CONCEPT
26
KA’s strategic framework is built around its business concept and long‑term goals. KA communicated in
Capital Markets Day in December 2025 its revised long‑term goal of EBIT of 6.5% , on current activity levels.
MARKET SEGMENTS
A PERFORMANCE-ORIENTED KA CULTURE
UNIQUE PRODUCTS
INTERNAL EFFICIENCY
CREATIVITY AND
INNOVATION
LONG-TERM
ORIENTED
RIGHT PERSON
ON THE BUS
FACT-BASEDRESULT-ORIENTED INTEGRITY ACCOUNTABILITYDETERMINATION RESPECT
RELENTLESS CONTINUOUS
IMPROVEMENT
TEAMWORK AND
COLLABORATION
ANNUAL REPORT 2025 // STRATEGY
VALUE
CREATION
POTENTIAL
KA will achieve internal cost efciency
through continuous improvements,
operational excellence, make-buy strategies,
and manufacturing in best-cost countries.
KA will develop unique products
and solutions that offer signicant
customer value.
KA will compete in growing market segments
and be a recognized leader in each product area.
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KA’S PATH TOWARD ITS
LONG-TERM GOALS
27
ANNUAL REPORT 2025 // STRATEGY
1. REBUILDING A HIGH-PERFORMANCE KA CULTURE
KA is rebuilding and further developing a performance‑oriented culture by establishing clear
accountability and ownership at every level of the organization. KA’s aim is that employees
are empowered and engaged to give their best, supported by a strong focus on placing the
right people in the right roles. Multidisciplinary collaboration is encouraged across func‑
tions, regions, and business areas, enabling ordinary people to achieve extraordinary results
together. To strengthen future leadership capabilities, KA has launched a Graduate Program
and is strengthening internal leadership development initiatives.
2. DRIVE COST-EFFICIENCY AND OPERATIONAL IMPROVEMENTS
KA is driving cost-efciency and operational improvements through disciplined execution
and a relentless focus on performance. During 2026, the company will conclude the imple‑
mentation of a third comprehensive cost‑reduction program. Since 2024, the cost‑ reduction
programs have delivered a total of more than EUR 42 million in annual overhead savings. KA is
continuously optimizing its plants and ofces to improve efciency. Resolving warranty issues
remains a key priority, alongside a sustained and systematic search for margin improvements
across the organization. In parallel, KA is implementing AI‑driven process improvements to
enhance speed, quality, and cost competitiveness, further strengthening operational excel‑
lence and long-term protability.
3. ACCELERATE INNOVATION AND GROWTH
KA is accelerating innovation and growth by investing in unique technologies focused on
attractive and growing market segments. Product roadmaps are closely aligned with cus‑
tomer priorities to ensure protable growth and the timely delivery of value-creating solu‑
tions. Through close collaboration with strategic global OEMs, KA acts as a co‑developer of
future technologies, strengthening long‑term partnerships and deepening customer integra‑
tion. The company concentrates its innovation efforts on key product lines, including power‑
train actuators for commercial vehicles, air couplings, and steer‑by‑wire systems, positioning
KA for sustainable growth and long‑term value creation.
POWERTRAIN ACTUATORS
AIR COUPLINGS
STEER-BY-WIRE
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WORLDWIDE
PRESENCE
WORKFORCE*
4,291
17
COUNTRIES
WORLDWIDE
KA is well‑represented in this region, with seven manu‑
facturing plants and one tech center. Mexico has the larg‑
est manufacturing workforce in the region, split across
two manufacturing plants, while Canada is home to the
tech center in the region.
Europe represents KA’s largest region. Norway and Swe‑
den are hosts to KA’s three major tech centers in Europe,
while the two largest manufacturing plants in the region
are in Poland and Spain. With the integration of Chassis
Autonomy, Trollhättan, Sweden, has also become one of
KA’s locations.
KA operates ve manufacturing sites, one of which also
serves as a tech center, spread across China, India, and
South Korea. The largest manufacturing plant and tech
center in this region is in Wuxi, China.
KA operates one manufacturing plant in the region.
NORTH AMERICA
WORKFORCE: 1,576
EUROPE
WORKFORCE: 2,146
ASIA
WORKFORCE: 569
SOUTH AMERICA
WORKFORCE: 120
*Workforce Full Time Equivalent (FTE)
Kongsberg Automotive (KA) is present in
17 countries around the globe, covering
the global vehicle market. KA’s footprint is
based largely on its customers: Wherever
they are located, KA aims to be there,
serving and supporting them in the best
possible way. KA is committed to adapting
to market conditions. As an example,
6.1% of its total workforce were agency
employees in 2025, allowing it to build
up or scale down in response to market
movements.
ANNUAL REPORT 2025 // WORLDWIDE
28
NORWAY SWEDEN
POLAND
SLOVAKIA
GERMANYSPAIN
BRAZIL
CHINA
INDIA
SOUTH KOREA
FRANCE
UK
USA
MEXICO
CANADA
THE NETHERLANDS
SWITZERLAND
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CUSTOMERS
Kongsberg Automotive is proud to serve leading Original Equipment Manufacturers (OEMs) and Tier 1 suppliers in commercial vehicle,
off‑highway, and passenger car markets globally.
ANNUAL REPORT 2025 // CUSTOMERS
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MARKETS
COMMERCIAL VEHICLE PRODUCTION
In 2025, the global heavy‑duty and commercial vehicles market recorded
3.5 million units, reecting a 3.7% increase compared to 2024 (3.3 million
units). Growth was driven primarily by strong momentum in China, while
Europe and North America faced year‑on‑year declines. These contrasting
regional developments reect varying macroeconomic conditions, differ‑
ing investment cycles, and structural shifts in freight demand.
Production levels uctuated throughout the year, with the rst and
fourth quarters marking the highest output at 872,000 units and 895,000
units, respectively. The third quarter represented the lowest point of the
year at 807,000 units, yet this remained 8.1% above Q3 2024, underscor‑
ing a signicantly stronger market environment than the year before.
A substantial portion of the year‑over‑year expansion was concen‑
trated in the second half of 2025, with China serving as the primary
growth engine, delivering a remarkable 44.4% increase in H2 2025 com‑
pared with H2 2024. This highlights China’s pivotal role in supporting
global production and stabilizing overall market performance.
European production activity contracted slightly, declining 2.6%
to 534,000 units compared with 549,000 units in 2024. The decrease
reects weaker economic sentiment and continued caution in capital
expenditure among transport operators. Despite signs of macroeconomic
stabilization in some markets, replacement cycles remained subdued.
In North America, commercial vehicle production experienced the
steepest decline, falling 27.6% to 453,000 units from 625,000 units in
2024. The downturn was driven by a freight market still in a prolonged
downcycle, where surplus capacity kept rates under pressure and discour‑
aged eet renewals. Elevated nancing costs, tighter credit conditions,
regulatory and tariff uncertainty (including EPA 2027 requirements and
cross‑border cost exposure), and weaker trade‑in values for used equip‑
ment further reduced purchase appetite. As a result, order
activity in 2025 was largely replacement‑driven rather
than signaling broader cyclical growth.
China delivered the strongest global year‑on‑year
increase, expanding 24.2% to 1,416,000 units from
1,140,000 units in 2024. Sustained infrastructure invest‑
ment, logistics eet modernization, and growing adoption
of alternative powertrains were the key drivers of this per‑
formance. China’s strong recovery also aligned with the
signicant second-half production surge that shaped the
global market. At the same time, the scale of this rebound
increases exposure to overcapacity risks, as sustained
high production levels may outpace underlying freight
demand, potentially creating volatility in both domestic
and export‑oriented markets.
South American production proved more resilient
but still declined 4.1%, reaching 167,000 units compared
with 174,000 units in 2024. The region continued to face
uneven economic performance and reduced logistics
investment activity.
Overall, the year’s performance underscores both the
resilience of global freight demand and the growing struc‑
tural importance of Asian markets—particularly China—
in shaping worldwide commercial vehicle production and
sales dynamics.
Sources: LMC Global Commercial Vehicle Forecast (December 2025).
ANNUAL REPORT 2025 // MARKETS
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ANNUAL REPORT 2025 // MARKETS
PASSENGER VEHICLES PRODUCTION
Global passenger‑vehicle production displayed uneven
regional trends in 2025, reecting the complex interplay
between shifting consumer demand, regulatory pres‑
sures, and ongoing supply‑chain normalization. While
global light‑vehicle forecasts indicate a gradual recov‑
ery, the pace varied signicantly across major markets. In
Asia, production remained robust, underpinned by con‑
tinued strength in China, where electrication, expand‑
ing export activity, and sustained investment in vehicle
platforms supported output. China maintained its posi‑
tion as the world’s largest light‑vehicle market, and pro‑
duction reached 31 million units in 2025.
Europe experienced a more subdued environment.
European light vehicle production for 2025 reached 16.9
million units, a reduction of 1.2% from the 17.1 million
units in 2024. Soft consumer sentiment, tighter nanc‑
ing conditions, and cautious replacement cycles continued
to dampen production activity. Regulatory requirements
linked to emissions and product transitions further shaped
Original Equipment Manufacturer (OEM) output strate‑
gies, contributing to restrained growth across key markets.
In North America, light‑vehicle production was also
reduced from 15.5 million units in 2024 to 15.2 mil‑
lion units in 2025 (a reduction of 1.9%), with underlying
demand sensitive to macroeconomic uncertainty.
Electrication remained the primary structural driver
across the global passenger‑vehicle landscape. Analysts
continue to expect the share of electried vehicles to
expand meaningfully throughout the decade, supported
by regulatory mandates, technology maturity, and ongo‑
ing investment in battery‑electric and hybrid platforms.
These developments continue to inuence OEM product
plans, platform architectures, and sourcing strategies
across regions.
Source: Publicly available information
OFF-HIGHWAY EQUIPMENT PRODUCTION
The global off‑highway equipment market showed over‑
all resilience in 2025, shaped by a combination of long
investment cycles, stable demand fundamentals, and
ongoing infrastructure‑driven activity. Despite regional
differences, the segment continued to benet from sus‑
tained needs in construction, material handling, and
industrial applications, where equipment utilization
remained relatively high.
Asia, particularly China, remained a central contrib‑
utor to off‑highway activity, supported by infrastructure
development and eet modernization efforts. Europe
exhibited signs of stabilization after a period of softer
market conditions caused by reduced capital expendi‑
ture and higher nancing costs. North America remained
inuenced by sector-specic dynamics, including uctua‑
tions in agriculture and construction investment, though
activity strengthened toward the end of the year.
Electrication in off-highway applications is still in
an early phase but continued to scale gradually during
2025. Initial deployment concentrated on compact equip‑
ment and material‑handling platforms, driven by pilot
programs, regulatory considerations, and the search for
reduced operating costs. Analysts expect broader adop‑
tion over time as technology matures, and total‑cost‑of
ownership benets become clearer.
Source: Publicly available information
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OPERATIONS
AND ENGINEERING
In 2025, Kongsberg Automotive (KA) group executed a deliberate
and phased transformation of its leadership model and
organizational structure to sharpen strategic focus, strengthen
accountability, and improve execution performance across the
group. The year represents an important inection point in how
the company is led and managed, creating a stronger foundation
for improved protability and long‑term value creation.
STRENGTHENING THE EXECUTIVE LEADERSHIP TEAM AND BUSINESS AREAS
The transformation began with a strengthening of leadership at the business area level,
aimed at reinforcing end‑to‑end accountability for strategy, performance, and execution.
Clear ownership was established for portfolio direction, operational results, and customer
engagement, improving the alignment between group priorities and day‑to‑day execution.
This strengthened business area leadership model enabled:
> Improved accountability, fostering performance management and operational
discipline
> Clearer strategic direction and prioritization
> Better coordination across functions, regions, and technologies
This step was essential in stabilizing performance during a year characterized by mixed
market conditions and ongoing industry volatility, while also preparing the company for
deeper structural change.
ESTABLISHMENT OF BUSINESS UNITS – SHARPENING CUSTOMER AND EXECUTION FOCUS
Building on the reinforced business area structure, the group implemented further orga‑
nizational evolution through the establishment of Business Units (BUs). This shift rep‑
resents a decisive move to bring responsibility closer to customers, products, and mar‑
kets, while increasing speed, focus, and accountability in execution.
Within Flow Control Systems, this change was formally implemented through the tran‑
sition from a functional organization to a business unit‑based structure, comprising Fluid
ANNUAL REPORT 2025 // OPERATIONS AND ENGINEERING
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STRATEGIC PORTFOLIO ACQUISITIONS
The organizational transformation was reinforced by
important strategic portfolio measures during the year.
The acquisition of the remaining 25% minority share in
Kongsberg Automotive Motor Systems (KAMS) in China
secured full ownership of a key capability platform in
electric motors and mechatronic actuation, improving
strategic control and integration.
In addition, the acquisition of the remaining shares
in Chassis Autonomy, in Sweden, signicantly expanded
the group’s software and system‑level capabilities within
Vehicle Motion Control and Automated Driving. These
acquisitions are closely aligned with the strengthened
leadership and organizational model, enabling clearer
ownership of technology roadmaps, customer strategies,
and execution responsibilities.
GROUP-LEVEL OPERATIONAL FOCUS AND WARRANTY
CHALLENGES
At group level, operational discipline and risk manage‑
ment remained key priorities throughout 2025. Safety
Transfer Systems, Couplings, and Industrial. Within Drive
Control Systems, this change led to the creation of the BUs
Driveline, Steering, Actuation, Vehicle Dynamics, and Con‑
trols. The BU model assigns the clear ownership of strat‑
egy, customer relationships, protability, and delivery,
enabling sharper decision‑making and stronger execu‑
tion discipline.
Introduction of BUs:
> Strengthens customer proximity and responsiveness
> Improves accountability for nancial and operational
performance
> Claries strategic focus within each portfolio segment
> Enhances the ability to manage complexity and mar‑
ket volatility
Together with the strengthened BA leadership, this step
marks a fundamental evolution in how KA operates
and competes.
performance was maintained at the prior‑year level and
remained signicantly improved compared to earlier
years, although continued focus is required to achieve the
long‑term ambition of zero incidents.
During the year, the group also faced elevated warran‑
ty-related challenges, reecting a combination of histori‑
cal issues. Addressing warranty performance has been
recognized as a group‑level priority, with measures initi‑
ated to strengthen governance and enhance cross‑func‑
tional accountability. These efforts are closely linked to
the broader leadership and organizational changes imple‑
mented during the year and are expected to support more
stable and predictable performance over time.
POSITIONED FOR SUSTAINABLE LONG-TERM GROWTH
While challenges remain, the measures taken during
the year have strengthened the group’s foundation and
positioned KA to drive improved operational perfor‑
mance, increased accountability, and sustainable long‑
term growth.
ANNUAL REPORT 2025 // OPERATIONS AND ENGINEERING
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FINANCIAL
PERFORMANCE
GROUP
Full year (FY) 2025 revenues amounted to EUR 712.8 mil‑
lion, compared to EUR 788.2 million in 2024, a decrease of
EUR 75.4 million. This includes negative currency transla‑
tion effects of EUR ‑16.7 million, resulting in a ‑7.4% decline
in constant currencies. The revenue drop was primarily
driven by signicantly lower sales in the European passen‑
ger car market, a sharp decline in the commercial vehicle
market in North America, and reduced sales in China.
Commercial vehicles revenues (56.6% of total reve‑
nues) were EUR 401.6 million, down by EUR ‑37.5 million
(‑8.5%) from EUR 439.1 million in 2024 including nega‑
tive currency effects of EUR 8.8 million (‑6.5%). Revenues
in Europe declined by EUR ‑5.2 million (EUR ‑5.1 million/
‑2.1% at constant currencies) to EUR 238.1 million, while
market production declined by ‑2.6%. Revenues in North
America dropped by EUR ‑21.7 million to EUR 104.0 mil‑
lion (EUR ‑17.0 million/‑13.5% at constant currencies),
outperforming the market, which contracted by ‑27.6%.
The decline was mainly due to reduced sales of KA’s gear
control units to a Tier 1 customer, driven by lower OEM
demand. In China, revenues totaled EUR 26.1 million,
down EUR ‑6.4 million (EUR ‑5.3 million/‑16.2% in con‑
stant currencies), signicantly underperforming the mar‑
ket, which grew by +24.2%. The drop was largely due to
weaker sales of gear shift systems.
Passenger car revenues (30.8% of total revenues)
totaled EUR 221.2 million, or EUR 227.1 million at constant
currencies, representing a decrease of EUR ‑32.6 million
(‑12.8%) from EUR 253.8 million in 2024. In Europe, rev‑
enues fell by EUR ‑19.2 million to EUR 73.7 million (EUR
‑20.0 million/‑21.5% at constant currencies), while reve‑
nues in North America slightly decreased by EUR ‑3.3 mil‑
lion to EUR 104.5 million (EUR +1.0 million/+0.9% at con‑
stant currencies). Revenues in China amounted to EUR
30.0 million, down by EUR ‑9.5 million (EUR ‑8.3 mil‑
lion/‑20.9% at constant currencies).
In 2025, revenues generated in other markets were
EUR 90.0 million (or EUR 92.0 million at constant curren‑
cies), down from EUR 95.3 million in FY 2024. The decline
was mainly due to reduced market activity within the
North American off‑road market segment*.
For full year 2025, EBIT was EUR 13.6 million (mar‑
gin +1.9%) compared to EUR 18.7 million (margin +2.4%)
in FY 2024. The missing contributions of EUR ‑26.0 mil‑
lion from lower sales was nearly offset by favorable prod‑
uct mix effects of EUR 9.4 million and further cost reduc‑
tions of EUR +14.3 million in manufacturing overhead
and administrative expenses. EBIT in 2025 was positively
affected by the reversal of prior period accruals of EUR 4.9
million related to customer contracts and operating costs,
while net tariff costs of EUR 3.2 million affected 2025 neg‑
atively. While the EBIT of 2024 beneted from the reversal
of impairment at EUR + 5.0 million, 2025 was impacted by
impairment of EUR ‑2.7 million.
ANNUAL REPORT 2025 // FINANCIAL PERFORMANCE
SEGMENTS
To enhance segment accountability for all attributable
group costs, a new reporting set up was implemented on
January 1, 2025, under which all costs previously included
in the Corporate & Other segment were allocated to the
reportable segments (Drive Control Systems DCS and
Flow Control Systems FCS). The allocation was per‑
formed based on usage, applying sales and FTEs as the
primary drivers.
In Q3 2025, the Driveline (excluding Electric Actua‑
tors) business unit (previously presented as Other oper‑
ations in Note 2) was incorporated into the DCS business
area (BA). Figures for 2024 have been restated to reect
this change in segment reporting.
Revenues of the DCS BA amounted to EUR 414.3 mil‑
lion compared to EUR 480.9 million in 2024, a decrease
of EUR ‑66.6 million (EUR ‑54.9 million/‑11.4% at con‑
stant currencies). This decrease was mainly driven by
lower sales in the commercial vehicle markets in North
America (EUR ‑16.6 million/‑15.8%), Europe (EUR ‑6.6
million/‑5.7%) and China (EUR ‑6.3 million/‑27.0%), as
well as in the passenger car markets in Europe (EUR ‑14.5
million/‑31.7%) and China (EUR ‑9.3 million/‑25.6%).
These declines were partially offset by growth in the
Brazilian and North American passenger car markets,
which increased by EUR +1.0 million (+10.0%) and EUR
+2.2 million (+3.4%), respectively. The operating loss
(EBIT) in 2025 amounted to EUR ‑2.8 million compared
to the operating prot of EUR +9.1 million in 2024. In
addition to the lost margin due to volume decline, DCS
*Off-road market segment includes agriculture, construction, power
sports, and leisure vehicles.
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BA was impacted by a net impairment effect of EUR ‑1.6 million in 2025
versus a positive effect of EUR +4.6 million in 2024 from the reversal of
impairment. Additionally, tariff costs of EUR ‑4.7 million negatively out‑
weighed the tariff reimbursements of EUR +2.1 million. The prior year’s
result beneted from a one-time supplier reimbursement of EUR +2.7
million related to a warranty case.
Revenues recorded by the Flow Control Systems (FCS) business area
(BA) amounted to EUR 298.5 million in 2025 versus EUR 307.3 million in
2024, a decrease of EUR ‑8.8 million including negative currency effects
of EUR ‑5.1 million (EUR ‑3.7 million/‑1.2% in constant currencies). This
was mainly due to lower sales in passenger cars markets in Europe (EUR
‑4.9 million/‑10.7%) and in North America (EUR ‑1.1 million/‑2.6%) as
well as lower sales in the Brazilian heavy‑duty vehicles market (EUR ‑1.5
million/‑16.8%). EBIT amounted to EUR 16.4 million in 2025, compared to
EUR 9.6 million in 2024. Positive mix effects and a reduction in manufac‑
turing and administrative costs more than compensated for the lost mar‑
gins due to lower sales, negative tariffs effects, and impairment charges.
Allocation of corporate costs had an impact of EUR ‑4.5 million compared
to last year’s EUR ‑7.8 million.
NET FINANCIAL ITEMS
Net nancial items in FY 2025 were EUR -13.3 million compared to nEUR
‑21.0 million in 2024. Interest expenses decreased by EUR 1.2 million,
while interest income declined by EUR 0.8 million. Foreign currency
gains, primarily related to intercompany balances in USD, amounted to
EUR 2.0 million, compared to a foreign currency loss of EUR 1.9 million
in 2024, which had been mainly caused by the weakening NOK against
EUR. In addition, 2024 was impacted by other nancial items of in total
EUR ‑4.4 million, whereas in 2025 they amounted to EUR ‑1.4 million.
NET PROFIT/LOSS
Prot before tax was EUR +0.3 million, followed by a tax expense of EUR
-0.1 million. This resulted in a net prot of EUR +0.2 million for full year
2025, compared to a net loss of EUR 18.2 million in 2024.
ANNUAL REPORT 2024 // FINANCIAL PERFORMANCEANNUAL REPORT 2025 // FINANCIAL PERFORMANCE
35
36
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
CAPITAL
The group’s interest‑bearing liabilities amounted to EUR
198.7 million as of December 31, 2025, compared to EUR
206.2 million as of December 31, 2024. The sharehold‑
ers’ equity totaled EUR 180.9 million, a decrease of EUR
22.1 million compared to EUR 203.0 million at the end of
2024. This is mainly due to the negative total comprehen‑
sive income of EUR ‑19.9 million in 2025, comprising the
net prot of EUR+0.2 million and negative other compre‑
hensive income of EUR ‑20.1 million. In 2025, the group
acquired the remaining 25% shares in one of its subsid‑
iaries from the minority shareholder, which resulted in a
reduction of non‑controlling interests (EUR ‑3.3 million)
and a corresponding adjustment to equity attributable to
owners of the parent (EUR +1.1 million). No gain or loss
was recognized in prot or loss.
The equity ratio was 32.0% at the end of 2025 com‑
pared to 33.7% in 2024.
CASH FLOW
Cash ow from operating activities in 2025 amounted
to EUR 58.5 million compared to EUR 32.4 million in
2024. This improvement was primarily driven by stron‑
ger underlying protability in the second half of the year,
lower tax payments of EUR 5.6 million, and lower pay‑
ments for warranty and other provisions of EUR 11.8 mil‑
lion. In addition, there was an improvement in the change
of net working capital, which amounted to EUR +11.4 mil‑
lion in 2025, versus a positive EUR +9.9 million last year.
Many of the factors negatively affecting the EBIT mar‑
gin in full year 2025, such as net impairment charges
and increase in warranty provisions, had no impact on
cash ow.
Cash ow used by investing activities in 2025 was EUR
14.8 million compared to EUR 21.4 million in 2024. The
improvement is partially explained by a reduced spend‑
ing on investments in tangible and intangible assets of
EUR 16.3 million in 2025 compared to EUR 24.7 million in
2024. Both years beneted from the subsequent proceeds
from a divestment made in 2022.
In 2025, cash used by nancing activities amounted to
EUR 27.6 million compared to EUR 92.8 million in 2024.
The higher outow in 2024 was mainly driven by the re‑
nancing completed in June 2024, which resulted in a net
repayment of EUR –57.7 million as well as accelerated
interest payments on legacy bond notes, which increased
interest outows in 2024.
LIQUIDITY
The liquidity reserve was EUR 105.8 million at the end of
2025, compared to EUR 99.2 million as of December 31,
2024. It consisted of EUR 90.8 million in cash and cash
equivalents and the revolving credit facility (RCF) of EUR
15.0 million.
BUSINESS WINS
Business wins for 2025 are assessed to represent EUR
339.0 million in lifetime revenues and EUR 119.9 million in
annualized revenues compared to EUR 1,526 million and
EUR 382.8 million in 2024, respectively. The values of the
business wins are based on assumptions regarding the
market in general and the anticipated sales for the actual
vehicle platforms in the years to come. There will always
be uncertainty linked to such assumptions. The forecasts
included in the 2025 gures, which are based on more
realistic market conditions, are more conservative than in
previous years.
KONGSBERG AUTOMOTIVE ASA – THE PARENT COMPANY
In 2025, the parent company generated total operating
(inter‑company) revenues of EUR 8.9 million compared
ANNUAL REPORT 2025 // FINANCIAL PERFORMANCE
to EUR 5.3 million in 2024. This was due to an increase
in the trademark license rate, upon which more than off‑
set the impact of lower group sales, which the trademark
fee is based. With operating costs falling by EUR 0.6 mil‑
lion (or -16.5%), the operating prot amounted to EUR 5.7
million in 2025, compared to EUR 1.5 million in 2024. The
parent company had negative net nancial items of EUR
30.4 million in 2025, compared to positive net nancial
items of EUR 45.8 million in 2024. The positive nan‑
cial items in 2024 were mainly due to IC dividend income
of EUR 26.6 million and positive currency gains of EUR
25.1 million, resulting from realized FX gains on the debt
equity conversion with Kongsberg Automotive Holding II,
the revaluation effects on the USD loan to this entity, and
on the proceeds from the capital reduction of a subsidiary.
The negative nancial items in 2025 are due to foreign
currency losses of EUR 27.8 million, resulting mainly from
the revaluation of USD‑denominated IC loans into EUR
(which has been determined to be the functional cur‑
rency from 2025 onwards) and interest expenses of EUR
8.8 million, partially offset by IC dividend income and IC
interest expenses. The net loss for 2025 amounted to EUR
17.8 million, compared to a net prot of EUR 40.1 million
in 2024. Due to the fact that EUR had been determined to
be the functional currency of the parent company from
2025 onwards, there are no translation effects in 2025. In
the absence of any other comprehensive items, the total
comprehensive income for 2025 equals the net loss of EUR
17.8 million. Kongsberg Automotive ASA’s equity totaled
EUR 267.7 million (EUR 285.5 million in 2024).
In accordance with the Dividends Policy, the Board
of Directors (the Board) will propose to the 2025 Annual
General Meeting that no dividend be paid for 2025. The
Board proposes that the parent company’s net loss of EUR
17.8 million be carried forward.
37
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
OUTLOOK
Kongsberg Automotive (KA) operates in a global vehicle industry
with inherent uncertainties and volatility. At the same time, long-
term trends such as electrication, autonomation, safety, and
sustainability continue to drive customer priorities and represent
signicant opportunities for KA.
Furthermore, in the medium to longer term, structural factors support increased volumes
outlook for the commercial vehicles, which is KA’s largest customer segment. The average
age of the truck eet continues to increase in both Europe and the United States, reect‑
ing several years of deferred replacement. An ageing eet will likely boost replacement
demand and sales over time.
KA’s improved execution, strategic focus, innovations, and close customer alignment
create a solid foundation for ongoing growth and long‑term shareholder value.
The recent Iran and Middle East conicts have raised energy market volatility and eco‑
nomic uncertainty in general. Historically, higher oil prices have short‑term reduced the
demand for mobile vehicles. In addition, KA may face higher costs and unpredictable sup‑
ply chains. Higher oil prices over a prolonged period of time, can result in a global reces‑
sion. Mitigating actions will be implemented.
The Board refers to the risk factors described elsewhere in this Annual Report and empha‑
sizes that all forward‑looking statements are subject to uncertainty.
ANNUAL REPORT 2025 // OUTLOOK
37
38
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
SUSTAINABILITY
STATEMENTS

    


    
  
DISCLOSURE REQUIREMENTS




  
 



  
    
   

39
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
In 2025, KA delivered good results related to social responsibility and gover‑
nance. This applies both for the internal organization as well as for the part of
the value chain that can be inuenced by KA. During 2025, KA underwent sig‑
nicant reorganization and restructuring processes, including establishing
a new Executive Leadership Team (ELT) and new business units (BUs) within
the business areas (BAs). Several of the previously corporate‑based functions
have been transferred to the BAs, with the objective of achieving even greater
accountability and strengthening ownership at the operational level.
As a result of these structural changes, limited new environmental initia‑
tives were launched in 2025. The development of Scope 3 targets and related
roadmaps have been deferred to 2026. The same goes for comprehensive cli‑
mate change scenario analysis or formal resilience analysis. Nevertheless, KA
maintained and ensured continuity in its reporting processes. KA is closely
monitoring the regulatory development and implementation of the Omnibus
packages, with the purpose of simplifying sustainability reporting, and other
relevant updates and changes. As set out in its existing roadmap, the initiatives
were executed, and reporting was ensured in accordance with the ESRS stan‑
dard. The double materiality from 2024 was reviewed and conrmed for 2025.
Looking ahead, KA will conduct a comprehensive review of its sustainabil‑
ity strategy in 2026, including an evaluation and potential revision of its long‑
term sustainability targets.
GENERAL
INFORMATION
BASIS FOR
PREPARATION
SCOPE OF CONSOLIDATION AND GENERAL REPORTING STANDARDS
The consolidated sustainability statements 2025 are prepared in accordance
with the requirements of the Norwegian Accounting Act Sections 2‑3 and 2‑4,
including the European Sustainability Reporting Standards (ESRS).
The consolidation scope of KA’s sustainability statements is aligned with
its IFRS® nancial statements in accordance with the IFRS® Accounting
Standards as adopted by the EU and covers the 2025 reporting year of Kongs‑
berg Automotive ASA and the subsidiaries over which it exercises control,
unless otherwise noted. For a full account of entities included in KA’s consoli‑
dated nancial statements, please refer to page 124.
KA has not opted to omit information corresponding to intellectual prop‑
erty, know‑how or results of innovation, but opted to use the applicable
phase‑in provisions listed in ESRS 1 Appendix C.
The sustainability statements address the material impacts, risks, and
opportunities (IROs) of both KA’s own operations and its upstream and
downstream value chain. The extent to which KA’s policies, actions, and
targets include its value chain depends on the company’s double material‑
ity assessment.
NORWEGIAN TRANSPARENCY ACT
KA continues to report on the requirements in the Norwegian “Act relating to
enterprises’ transparency and work on fundamental human rights and decent
working conditions” (Transparency Act). The latest available report can be
found on KA’s external website under the Corporate Governance section. The
2025 report will be published by June 2026.
SOURCES OF ESTIMATION AND OUTCOME UNCERTAINTY
The use of estimates for performance metrics, including when upstream
and downstream value chain data is included, is described in the individual
ANNUAL REPORT 2025 // GENERAL INFORMATION
Sustainability has long been a core principle guiding
Kongsberg Automotive (KA) in both its operations and
business relationships. The company is committed to
continuously strengthening its performance across
environmental, social, and governance topics to ensure
that our value creation is aligned with the principle of
sustainable development for people and the planet.
39
40
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
ANNUAL REPORT 2025 // GENERAL INFORMATION
accounting policies. Overall, metrics related to KA’s own
operations have a higher volume of primary data, while
value chain metrics are mostly estimated and there‑
fore have a higher level of measurement uncertainty. All
assumptions and potential uncertainties are documented
in the accounting policies. The highest degree of estima‑
tion uncertainty is related to material and product weight
estimations for Scope 3 GHG emission calculations, as
well as weight estimations for resource inows metrics
and product-related resource outow metrics.
RESTATEMENTS AND CHANGES IN PREPARATION AND
PRESENTATION
There are no notable changes in preparation and pre‑
sentation for the reporting year 2025. Notications of
restatements of information from previous reports are
provided where relevant in this report.
INCORPORATION BY REFERENCE
An overview of all incorporations by references used
within the sustainability statements is listed in the "Dis‑
closure requirements and incorporation by reference"
section.
STATEMENT ON DUE DILIGENCE
Sustainability due diligence (SDD) is the process through
which KA identies, prevents, limits, and reports actual
and potential negative impacts on the environment and
people resuling from its activities. It also pertains to the
practices applied to changes in the operation’s strategy,
SUSTAINABILITY
GOVERNANCE
THE ROLE OF ADMINISTRATIVE, MANAGEMENT, AND
SUPERVISORY BODIES
The composition, expertise, experience, and diversity of
the Board of Directors (the Board) and Executive Leader‑
ship Team (ELT) are described on pages 14‑15 of the Cor‑
porate Governance section, in particular reporting points
eight to ten and in the Board of Directors’ proles, on pages
17‑18. These pages also contain information on employee
representatives, the independence of Board members, and
responsibility for monitoring, measurement, and control of
the operation’s impact, risks, and opportunities. The Board
is the highest governing body for sustainability issues and
approves sustainability‑related group policies of strategic
relevance, including the group’s Code of Conduct, which is
the most important document for all employees’ business
conduct (see pages 78, 81, and 99). More specic policies
are approved by the CEO or the ELT.
In 2024 and at the beginning of 2025, KA was orga‑
nized with a Corporate Sustainability Manager and a Sus‑
tainability Steering Committee. From the second quar‑
ter 2025, KA underwent a signicant reorganization and
restructuring process. This included establishing a new
ELT, as well as new BUs within the BAs. Many of the pre‑
vious corporate functions, such as sales and purchase
functions, were moved into the BAs, with the objective of
achieving greater accountablity and ownership. During
this reorganization process, no strategic decisions on
additional sustainabilty‑related initiatives were made.
However, the initiatives as set out in KA’s existing road‑
map were executed as scheduled on an operational level.
business model, activities, business relationships, actual
operations, and the context of acquisitions or divestments.
The core of this practice is how the different steps in the
SDD process, identify, and measure the negative impacts
that arise or may arise due to KA’s operations and that are
directly linked to its activities, products, and services, as
well as its business relationships across the value chain.
CORE ELEMENTS OF DUE
DILIGENCE
PARAGRAPHS IN THE
SUSTAINABILITY STATEMENT
A) EMBEDDING DUE DILIGENCE IN
GOVERNANCE, STRATEGY, AND
BUSINESS MODEL
pages 40-43, 45-52, 62-63,
71-73, 76, 87-88, 98, 103
B) ENGAGING WITH AFFECTED
STAKEHOLDERS IN ALL KEY
STEPS OF THE DUE DILIGENCE
PROCESS
pages 40-43, 45-46, 64-66,
71, 73, 77-79, 81, 84-85, 88-96,
100-103
C) IDENTIFYING AND ASSESSING
ADVERSE IMPACTS
pages 45-52, 62-63, 71-73, 76,
87-88, 98, 103
D) TAKING ACTIONS TO ADDRESS
THOSE ADVERSE IMPACTS
pages 64-66, 71, 73, 78-79, 81,
84-85, 88-96, 100-103
E) TRACKING THE EFFECTIVENESS
OF THESE EFFORTS AND
COMMUNICATING
pages 66-71, 73-75, 79-83, 85, 91,
94, 96-97, 100-104
41
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
The new ELT views sustainability as an integral part of KA’s overall strategy,
which will increasingly leverage this as a source of competitive advantage in
selected product areas. This is underlined by the newly envisaged governance
structure that the BA heads are responsible for considering sustainability
aspects in strategic and operating decisions. The Group Sustainability Expert
will coordinate and support the sustainability work within each BA.
RISK MANAGEMENT AND INTERNAL CONTROL
The group’s risk management process and internal control system aim to iden‑
tify, assess, and manage risk factors that may potentially have adverse effects
on the overall operational performance of the group. This includes sustainabil‑
ity‑related risks. The Board oversees the risk management process and carries
out annual reviews of the company’s most important risk categories and inter‑
nal control arrangements. The group implemented ownership to indicators pub‑
lished in the sustainability statements, with Board oversight of material topics.
Expert functions are responsible for their respective topics and the related
data capturing processes. The importance and priority of the material topics
is dened through an assessment that evaluates the impact and likelihood of
the related risks versus their control effectiveness at the time of the assessment.
Expert functions develop and maintain existing controls through the imple‑
mentation of action plans, cross‑functional workshops, and follow‑up sessions.
Internal control activities are developed for topics of material importance to KA
and its stakeholders. Contingent on topic importance, data is gathered quar‑
terly or annually in an effort to support the path toward maturity. Data quality
in 2025 was ensured through the “three lines model,” consisting of line man‑
agement, Risk and Internal Control, and KA Internal Audit. The main risks iden‑
tied within the risk management process are described on pages 19-21. These
risks are part of the inputs to the double materiality process, which forms the
basis for sustainability reporting. Reversely, additional signicant risks iden‑
tied during the double materiality process are considered and included in the
risk management process by the corporate sustainability manager.
SUSTAINABILITY-RELATED INCENTIVE SCHEMES
KA strategically removed the ESG targets from its top management incentive
schemes and integrated them into the company’s formal annual performance
management process. Under this revised framework, ESG objectives are dened
as individualized performance targets, developed jointly between employees Organizational setup
Provides oversight
and ensures alignment
of business conduct
practices with long-term
corporate goals.

sustainability, and
risk reporting.
Monitors compliance,

risks related to business
conduct, and makes
recommendations
for mitigation.
BA SUSTAINABILITY
RESPONSIBLE
BA SUSTAINABILITY
RESPONSIBLE
Decides the strategic
direction, targets,
roadmaps, investments,
and reporting.
Operational decisions on the
implementation and breakdown of
roadmap into measures and priorities.
Determines
the executive
remuneration
structure including
sustainability
target incentives.
General Counsel + CFO +
Head of People and Culture
Oversees compliance
policies, investigates
reported incidents,
and evaluates risk
management strategies.
BOARD
OF DIRECTORS
EXECUTIVE
LEADERSHIP
TEAM
SUSTAINABILITY
EXPERT
DRIVE CONTROL SYSTEMS
BUSINESS AREA
FLOW CONTROL SYSTEMS
BUSINESS AREA
AUDIT
COMMITTEE
COMPENSATION
COMMITTEE
COMPLIANCE
COMMITTEE
INTERNAL
AUDIT
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
and their direct managers. These targets focus on specic
ESG areas where each leader can drive meaningful impact
within their respective functional responsibilities.
By shifting from generic, standardized ESG targets
to role-specic, inuence-based objectives, KA enhances
accountability among the same group of top managers.
The new approach ensures that the sustainability goals are
both relevant and achievable, and are also directly aligned
with each leader's infuence and ability to effect change.
The outcome from the annual performance manage‑
ment process is reected in the annual salary review
process. This supports and reinforces that the top man‑
agement remains focused on ESG items within their
functional responsibility and maintains their commit‑
ment to ESG, given that it remains connected to remu‑
neration and ultimately strengthens the leadership
engagement. Further details about the incentive pro‑
grams are presented in the 2025 Remuneration Report
available on KA’s website.
STRATEGY, BUSINESS MODEL, AND VALUE CHAIN
KA’s operations are part of the automotive value chain
with main inputs and outputs as well as business part‑
ners as illustrated below. KA’s business model, including
segments, markets, channels, customer relationships, and
strategy, are further outlined on pages 23‑33. KA devel‑
ops and offers a wide range of products for passenger cars,
commercial vehicles, and the off‑highway markets. The
differences between KA’s BAs (Drive Control Systems and
Flow Control Systems) are mainly in terms of materials,
suppliers, and products, but the main steps in the value
chain are the same. A detailed description of KA’s main
product groups is available on page 23, detailed nan‑
cial information on its operating segments is available on
pages 124-126, and a breakdown of employee-related g‑
ures is available on pages 79 ff.
Sustainability is an integral component of KA’s over‑
all strategy, is closely linked to the third point of KA’s
pathway toward its long‑term objectives, and is increas‑
KA’s value chain
SUPPLIERS’ SUPPLIERS
(TIER X)
Raw material extraction,
mines, basic industry
Metals, monomers,
polymers, etc.
Polymers, steel, brass,
rubber, electronics, etc.
KA products / components Customers’ vehicles (mainly)
with KA’s components
End of lifeEnd products
Suppliers’ manufacturing
processes
KA manufacturing processes Customers’ manufacturing
processes
Disposal/
recycling
after use
SUPPLIERS (TIER 1) OWN PRODUCTION CUSTOMERS
TRANSPORT
END CUSTOMERS
(PRODUCT USE)
RECYCLING
/DISPOSAL
PROCESSING
PRODUCT
ingly leveraged as a source of competitive advantage in
selected product areas. KA’s strategic direction is outlined
on pages 26‑27. During 2026, KA will conduct a compre‑
hensive review of its sustainability strategy, including an
evaluation and potential revision of its long‑term sustain‑
ability targets.
For many years, the global automotive industry has
been undergoing a signicant transition toward more
sustainable mobility. A key driver is the transforma‑
tion from internal combustion engines (ICE) to battery‑
electric vehicles (BEV). KA supports and contributes to
this transition by developing and supplying products for
use in BEV and hybrid vehicles. In the product develop‑
ment phase, KA also focuses on less weight, longer dura‑
bility, and the recyclability of its products, thereby reduc‑
ing the environmental footprint of its products. Several
of KA’s products also contribute directly to fuel savings
during the use phase (e.g. couplings). For more details, see
page 72.
42
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In Kongsberg Automotive’s most recent stakeholder
assessment, the following ve stakeholder groups were
identied: customers, investors and shareholders,
employees, suppliers, and local communities. KA engages
with these stakeholders on a regular basis to identify rel‑
evant business and sustainability issues. In this context,
sustainability ratings and assessments are of growing
importance. Investors, customers, and suppliers in partic‑
ular use established platforms such as CDP, Eco‑Vadis, or
SupplierAssurance to evaluate their own and their suppli‑
ers’ performance. KA uses these platforms as an import‑
ant element of its stakeholder engagement. The outcome
of this engagement and dialogs impact KA’s strategy and
business (e.g. lighter products, the avoidance of certain
input materials, or the reduction of the CO₂e footprint).
The stakeholder perspective is reected in regular dialogs
between KA’s Executive Leadership Team (ELT) and the
Board of Directors (the Board).
STAKEHOLDER GROUP TYPE OF ENGAGEMENT EXAMPLES OF OUTCOMES
CUSTOMERS
> KA’s website
> Trade fairs
> Customer meetings
> Surveys and assessments
> Request for quotation processes
> Sustainability of products (e.g. recyclability)
> Innovation for Battery-Electric Vehicles
> KA sustainability performance ratings
INVESTORS AND
SHAREHOLDERS
> Capital Market Days
> Annual General Meeting
> Annual and quarterly reports
> Breakfast meetings
> Sustainability ratings
EMPLOYEES
> KA intranet
> Town hall meetings
> Board representation for employees
> Day-to-day cooperation between unions
and employers
> Staff meetings
> Social events
> Health and safety as a top focus for plant management
> Wellbeing topics to be developed
SUPPLIERS
> Supplier days
> Supplier meetings and visits
> KA website
> Surveys and assessments
> Quoting processes
> Supplier sustainability risk assessments
> Supplier’s sustainability performance
> Human rights and supplier’s employees working conditions
> Responsible sourcing (especially minerals)
> KA Supplier event, including Sustainability section
(Jan 15, 2025)
LOCAL COMMUNITIES
> Open house days
> Press releases
> Collaboration with universities
> Participation in initiatives
> Educational support (e.g. KA Mexico Scholarship Program)
> Participation in Mobility city, “Future of Mobility” (Spain)
INTERESTS
AND VIEWS OF
STAKEHOLDERS
43
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SUSTAINABILITY FRAMEWORKS AND RATINGS
UN Global Compact
The UN Global Compact (UNGC) is the world’s largest joint initiative of socially
and environmentally committed companies and other stakeholders. It is a stra‑
tegic initiative for companies that are committed to aligning their business
activities and strategies with ten universally recognized principles in the areas
of human rights, labor standards, environmental protection, and ghting cor‑
ruption. KA joined the UNGC in October 2024.
SDG 5: GENDER EQUALITY
5.5 Ensure women’s full and effective participation and equal
opportunities for leadership at all levels of decision‑making in
political, economic, and public life
SDG 8: DECENT WORK AND ECONOMIC GROWTH
8.2 Achieve higher levels of economic productivity through
diversification, technological upgrading, and innovation, including
through a focus on high‑value‑added and labor‑intensive sectors
8.5 By 2030, achieve full and productive employment and decent work
for all women and men, including for young people and persons
with disabilities, and equal pay for work of equal value
8.8 Protect labor rights and promote a safe and secure working
environment for all workers, including migrant workers, in
particular women migrants, and those in precarious employment
SDG 9: INDUSTRY, INNOVATION AND INFRASTRUCTURE
9.4 By 2030, upgrade infrastructure and retrofit industries to make
them sustainable, with increased resource‑use efficiency and
greater adoption of clean and environmentally sound technology
and industrial processes, with all countries taking action in
accordance with their respective capabilities
SDG 13: CLIMATE ACTION
13.3 Improve education, awareness‑raising, and human and
institutional capacity on climate change mitigation, adaptation,
impact reduction, and early warning
44
Sustainable Development Goals (UN SDGS)
The Sustainable Development Goals is a UN framework that identies the
key areas where action should be taken to build a more sustainable world.
KA recognizes that companies have an inuence over all SDGs, and the fol‑
lowing SDGs arethe most relevant to the company’s activities:
Carbon Disclosure Project (CDP)
The Carbon Disclosure Project (CDP) is a not-for-prot charity that runs the
global disclosure system for investors, companies, cities, states, and regions to
manage their environmental impacts. The world’s economy views CDP as the
gold standard of environmental reporting with the richest and most compre‑
hensive dataset on corporate and city action. Kongsberg Automotive has been
reporting in accordance with the CDP framework since 2017 and has been
awarded a C score in the CDP Climate Change 2024 rating. In 2025, KA did not
pursue a rating, but will do so in 2026.
EcoVadis
Since its foundation in 2007, EcoVadis has grown to become the world’s largest
and most trusted provider of business sustainability ratings, creating a global
network of more than 100,000 rated companies. KA’s sustainability efforts
have been rated by EcoVadis since 2012. In 2025, KA achieved a score of 61 (out
of 100), a small increase from 60 in 2024, achieving the “Committed” status.
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
DOUBLE MATERIALITY
ASSESSMENT
Kongsberg Automotive (KA) revisited and reconrmed its double materiality assessment
from 2024 for the 2025 reporting year, led by the Group Sustainability Manager. In the
initial assessment for 2024, KA used a four‑step approach to implement the ESRS require‑
ments. The materiality assessment process was facilitated by the Group Sustainabil‑
ity Manager.
STEP 1: PREPARATION AND TOPIC LIST
The ESRS 1 longlist of sustainability topics served as the starting point for KA’s material‑
ity assessment. This longlist has been reviewed in the context of previous KA materiality
processes and sustainability reports, as well as other sources, to complement the list with
KA-specic topics.
STEP 2: IMPACT MATERIALITY
The goal of the impact assessment is to identify the topics that have the greatest impact on
the environment, society, and economy along the entire value chain of Kongsberg Auto‑
motive. For certain topics, potential heightened risks for specic activities, stakeholders,
and geographies have been evaluated. In the process, the actual and potential positive
and negative impacts along the value chain have been assessed for all topics based on the
following four criteria (in accordance with the GRI and ESRS 1 guidelines):
> Scale: Gravity of negative impacts or the extent of the potential or actual benet for
negative impacts and how benecial the impact is or could be for positive impacts
> Scope: Evaluates the extent of impacts, e.g. geographical reach and population affected
> Irremediability: Measures the degree to which an impact cannot be reversed, consid‑
ering the time needed for recovery
> Likelihood: The likelihood that a potential impact occurs.
These criteria have been scored from 0 (“no impact”) to 4 (“very high/likely”) for each
topic at each value chain stage. External experts performed the assessment using both
internal documents and external sources, including studies and specialist reports.
The assessment of the topics considered both current and potential impacts. Current
impacts are those already occurring, whether positive or negative. Potential impacts
include both the risks of negative outcomes and opportunities for positive developments.
Where possible, a time horizon was added, with the following categories: short‑ (less than
one year), medium- (one to ve years), or long-term (more than ve years).
For the calculation, the product is formed from the scores for “scale,” “scope,” “irre‑
mediability,” and “likelihood” for each stage of the value chain. This reects the intercor‑
relation of the respective levels of the individual criteria with each other. The total value
per topic consists of the sum of the scores per value chain stage. Thus, the impacts of all
three stages of the value chain are weighted equally.
Following the external assessment, internal subject matter experts across the organi‑
zation evaluated the impact of identied topics and reviewed the initial scoring.
The involvement of various experts from different areas of the company ensures suf‑
cient consideration for internal stakeholder views. To some extent, the internal stake‑
holders also represent some external stakeholder groups. The views of external stakehold‑
ers, especially silent stakeholders in the value chain, were predominantly incorporated
through the consideration of various external sources of information.
STEP 3: FINANCIAL MATERIALITY
The key objective of the nancial materiality analysis was to identify the nancial risks
and opportunities in KA’s business stemming from the entire value chain.
The analysis contains three parts, which are weighted as follows:
> Analysis of external documents representing different stakeholder groups. Weight 20%
> Risk and opportunity workshops with KA’s in‑house experts. Weight 56% (combined)
> Expert evaluation from an external party. Weight 24%
The analysis consists of an evaluation based on the criteria of magnitude and likelihood
applied to risks and opportunities. Financial effects were qualitatively considered in terms
of performance, nancial situation, cash ow, and access to cost of capital. The applied
time horizons are identical to the approach described above for the impact assessment.
Risks and opportunities were analyzed as inherent risks and opportunities. The list of
potential material impacts has been considered to assess whether there are sources of
current or potential risks and opportunities.
45
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KA’s double materiality matrix
The scores for risks and opportunities were individually calculated as a
weighted sum of the results of the three mentioned steps of the analysis
and then added together as the total nancial impact. All risks identied
are sustainability‑related risks and were prioritized as such. Risks and
opportunities were weighted equally.
STEP 4: CONSOLIDATION AND APPROVAL
The results from the impact assessment and the risk and opportunity
analysis were consolidated into a matrix. The x‑axis represents the result
of the impact assessment, while the y‑axis represents the result of the risk
and opportunity analysis. A detailed description of the identied IROs per
material topic is included after this subsection and in the different subse‑
quent topic‑related sections.
The material topics are selected by setting a 50% threshold. The
threshold should not cut off topics that either have a high outward impact
or are related to high risks and opportunities. Particular care was taken
to ensure that no topics with a high impact at any stage of the value chain
are excluded from the selection. The threshold is therefore set at 50% of
the total scoring.
After preparation by the KA project team, the material topics were
presented to the Sustainability Steering Committee (SteerCo) for valida‑
tion. The SteerCo did not propose any changes. Finally, the ELT and the
Board signed off on the results.
The double materiality process determines the content for KA’s sus‑
tainability disclosures and guides its priorities on sustainability issues.
In many areas identied as material, KA has dened specic KPIs and
responses to measure performance and discloses these metrics and tar‑
gets in the company’s sustainability statements. In areas where processes
are less mature, KA is working continuously to develop strategies, dene
action plans, and implement change. In areas with less mature processes,
KA focuses on continuous strategy development, action planning, as well
as change implementation. KA will conduct a review and update of the
materiality assessment on a regular basis.
EMPLOYEE OCCUPATIONAL
HEALTH & SAFETY
EMPLOYEE DEVELOPMENT
& WELLBEING
SHARED VALUE
TRANSPARENT
& ETHICAL BUSINESS
CLIMATE CHANGE
ADAPTATION
HUMAN RIGHTS
PRODUCT
QUALITY & SAFETY
BIODIVERSITY
& ECOSYSTEMS
WATER
POLLUTION
SOCIAL
ENGAGEMENT
POLITICAL
ENGAGEMENT
PRIVACY
& CYBERSECURITY
GHG EMISSIONS
& ENERGY
TECHNOLOGY &
PRODUCT INNOVATION
MATERIAL/RESOUCE USE
& CIRCULAR ECONOMY
HIGH
IMPACT (ENVIRONMENT, ECONOMY, PEOPLE)
RISKS AND OPPORTUNITIES
LOW
HIGH
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47
KA’S MATERIAL TOPICS
The material topics for Kongsberg Automotive are:
KA TOPIC DESCRIPTION ESRS TOPIC
GHG EMISSIONS & ENERGY
ESRS E1 - Climate change
CLIMATE CHANGE ADAPTATION
ESRS E1 - Climate change
TECHNOLOGY & PRODUCT INNOVATION
ESRS E1 - Climate change
BIODIVERSITY & ECOSYSTEMS

MATERIAL/ RESOURCE USE & CIRCULAR ECONOMY
ESRS E5 - Circular economy and resource use
EMPLOYEE OCCUPATIONAL HEALTH & SAFETY

EMPLOYEE DEVELOPMENT & WELLBEING

HUMAN RIGHTS IN THE VALUE CHAIN

TRANSPARENT & ETHICAL BUSINESS

SHARED VALUE

PRODUCT QUALITY & SAFETY (ENTITY-SPECIFIC)

The double materiality assessment also produced topics and sub‑topics that are not mate‑
rial for KA and therefore do not fall under the ESRS reporting requirements:
> ESRS E2: Pollution
> ESRS E3: Water and marine resources
> ESRS S3: Affected communities
> ESRS S4: Consumers and end users
In addition, there are sub‑topics or sub‑sub‑topics that are not material (e.g. animal wel‑
fare) even though the topic level as such is material. The double materiality assessment
established that material factors under ESRS S2 (workers in the value chain) are limited to
upstream value chain impacts, risks, and opportunities with suppliers. This aligns with
KA’s role as an automotive supplier to Original Equipment Manufacturers (OEMs).
The DMA process also identied one topic – “Product quality and safety” – that is con‑
sidered material for KA but does not match the ESRS topics directly. This topic is reported
on in the entity-specic disclosure section.
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IMPACTS, RISKS,
AND OPPORTUNITIES
IRO NAME IRO TYPE DESCRIPTION TIME HORIZON BUSINESS MODEL AND VALUE CHAIN
S M L UPSTREAM OWN OPERATIONS DOWNSTREAM
E1 CLIMATE CHANGE
CO emissions
(Scope 1, 2, and 3)
Actual
negative
impact
GHG emissions from the combustion of fuels and the consumption of electricity from fossil sources in the

to process emissions.
x
Purchased goods
and services
KA plant’s
operations and
emissions
Distribution
CO emissions
(Scope 1, 2, and 3)
Transitional



disruptive technologies, losing R&D investments, not competitive.
x x
n/a KA operations n/a
CO emissions
(Scope 1, 2, and 3)
Opportunity
Financial opportunities due to green shift in car market with demand for less carbon-intensive products
and the transition to BEVs, as well as the opportunity to grow the product portfolio to align with low-carbon
car market demands. Opportunity by developing new products to open up new business areas and
replacement businesses.
x x
n/a KA operations n/a
Climate change
adaptation - physical
risks
Physical risk
Physical risks to operations due to changing climate: Damage to property, supply chain disruption, and the
cost for climate hazard protection
x x
n/a KA plants n/a
Climate change
adaptation
- transitional risks
Transitional


Transitional risks through costs associated with changing legislation and taxes due to CC. Investments
needed to maintain the license to operate.
x x
n/a KA operations n/a
Renewable energies
Transitional

al risk
Increasing/volatile energy prices increase operational costs as energy production shifts to low carbon
solutions.
x x
n/a
KA production
plants
n/a
Renewable energies
and energy
consumption and

Opportunity


x x
n/a KA plants n/a
ANNUAL REPORT 2025 // GENERAL INFORMATION
49
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
IRO NAME IRO TYPE DESCRIPTION TIME HORIZON BUSINESS MODEL AND VALUE CHAIN
S M L UPSTREAM OWN OPERATIONS DOWNSTREAM
E4 BIODIVERSITY AND ECOSYSTEMS
Land degradation
Actual
negative
impact
Land degradation due to mining operations for raw materials. Mining of ores (iron, copper, zinc, and
aluminum) all require drastic interventions in local ecosystems and can cause damage. The most prominent
impact is in direct proximity to mining operations, but through chemical emissions these impacts can cover
larger areas.
x
Suppliers of raw
material
n/a n/a
Exploitation Physical risk Risks to operation/value of services (provisioning) at stake due to progressed exploitation.
x
n/a KA operations n/a
E5 CIRCULAR ECONOMY AND RESOURCE USE
Material/resource

Actual
negative
impact
Actual resource consumption for product manufacturing (steel, aluminum, etc.) and the provision of
energy (electricity and fuels) is high.
x x
Resource
consumption of
suppliers
KA plant’s
resource
consumption
KA customer’s
resource
consumption
Circular principles
including generated
waste
Transitional

Risk of regulatory non-compliance/loss of investors (taxonomy objective circular economy).
x x
n/a KA operations n/a
Material/resource
availability
Transitional

Financial risk due to the price and availability of raw materials as this might lead operations to halt
production.
x x
n/a
KA operations,
purchasing in
particular
n/a
Generated waste
Transitional

Risk of regulatory non-compliance/loss of investors.
x x
n/a KA operations n/a
Circular principles Opportunity
Opportunity by shifting to circular economic principles to require less raw materials (reusing/recycling
waste to reduce overall costs of production).
x x
n/a
KA production
plants
n/a
Circular principles Opportunity Opportunity by designing products with substitute materials.
x x
n/a
KA engineering
and product
portfolio
n/a
S1 OWN WORKFORCE
Working conditions
of own workforce
Financial
risk
Risk of skill shortage/talent retention to keep up with the market. Reputational damage can lead to loss of
attractiveness as employer.
x x
n/a KA workforce n/a
ANNUAL REPORT 2025 // GENERAL INFORMATION
50
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
IRO NAME IRO TYPE DESCRIPTION TIME HORIZON BUSINESS MODEL AND VALUE CHAIN
S M L UPSTREAM OWN OPERATIONS DOWNSTREAM
Collective
bargaining
Financial
risk

supply chain.
x x x
n/a KA workforce n/a
S1 OWN WORKFORCE
Child labor and
forced labor
Financial
risk

supply chain.
x x x
n/a KA workforce n/a
Employee develop-
ment and career
opportunities
Potential
positive
impact


workers need to develop their skills or face the risk of falling behind. KA can have positive impacts on
employees by providing continuous education, development, and career opportunities.
x x x
n/a
KA training and
development
opportunities
n/a
Employee develop-
ment and career
opportunities
Opportunity
Opportunity to create a competitive advantage for a highly trained workforce, enabling a BEV shift with
new products. This will have a long-term effect on competitiveness and successful innovation. Skilled
people will be attracted if education and training is good.
x x
n/a KA workforce n/a
Employee develop-
ment and career
opportunities
Financial
risk
Financial risk of skill shortage/talent retention to keep up with the market (R&D, engineering). The
company can lose its competitiveness, which can lead to market loss.
x x
n/a KA workforce n/a
Occupational
accidents, absence
days and work-
related physical and
mental health
Financial
risk
Financial risks due to accidents/sickness, lost time, and insurance cost can increase. Risk of not attracting
talent in the event of bad performance in this area.
x x x
n/a KA workforce n/a
S2 WORKERS IN THE VALUE CHAIN
Inadequate wages in
producing countries
Potential
negative
impact
Possible negative impacts through unintentional contribution to: Excessive working hours or low and

x x x
Suppliers n/a Distribution
Occupational
accidents and
work-related
physical and mental
health
Potential
negative
impact
Possible negative impacts through unintentional contribution to: Limitations of social dialog, freedom of
association, collective bargaining, poor health and safety awareness.
x x x
Suppliers n/a Distribution
Collective
bargaining
Financial
risk

supply chain.
x x x
Suppliers n/a Distribution
ANNUAL REPORT 2025 // GENERAL INFORMATION
51
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
IRO NAME IRO TYPE DESCRIPTION TIME HORIZON BUSINESS MODEL AND VALUE CHAIN
S M L UPSTREAM OWN OPERATIONS DOWNSTREAM
Occupational
accidents, absence
days, and work-
related physical and
mental health
Financial
risk

supply chain.
x x x
Suppliers n/a n/a
S2 WORKERS IN THE VALUE CHAIN
Employee develop-
ment and career
opportunities
Financial
risk
Financial risk of skill shortage/talent retention to keep up with the market (R&D, engineering). Company
can lose its competitiveness, which can lead to market loss.
x x
Suppliers n/a Distribution
Employee develop-
ment and career
opportunities
Opportunity
Opportunity to create competitive advantage by highly trained workforce enabling battery electric vehicle
shift with new products. Long-term effect on competitiveness and successful innovation. Skilled people
will be attracted if education and training is good.
x x
Suppliers n/a Distribution
Forced labor
Potential
negative
impact
Possible negative impact through unintentional contribution during mineral sourcing: Forced or child labor.
x x x
Suppliers n/a n/a
Child labor and
forced labor
Financial
risk

supply chain.
x x x
Suppliers n/a Distribution
G1 BUSINESS CONDUCT
Responsible
marketing practices
incl. assurance and
labels, taxes, and

Financial
risk


x x x
n/a KA operations n/a
Corruption, bribery,
and anti-competi-
tive behavior
Financial
risk
Financial/legal/litigation risks due to global supply chain with lots of inherent risks for fraud, corruption,

Reputational damage can be long-lasting.
x x x
n/a KA operations n/a
Protection of
whistleblowers
Financial
risk
Financial/legal/litigation risks due to global supply chain with lots of inherent risks for fraud, corruption,

Reputational damage can be long-lasting.
x x x
n/a KA operations n/a
Responsible
marketing practices
incl. assurance and
labels
Opportunity
Responsible communication can be a marketing tool for KA to improve its imagen and gain new customers
and new business.
x x
n/a KA operations n/a
ANNUAL REPORT 2025 // GENERAL INFORMATION
52
Introduction
Contents
Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
IRO NAME IRO TYPE DESCRIPTION TIME HORIZON BUSINESS MODEL AND VALUE CHAIN
S M L UPSTREAM OWN OPERATIONS DOWNSTREAM
Infrastructure Opportunity
Financial sustainability is a precondition for long-term economic success. Contributing to the local

impact.
x x
n/a KA operations n/a
Management of
relationships with
suppliers
Opportunity
Opportunity through supplier engagement/localization to gain a competitive advantage, create a more
resilient supply chain, as well as reputational gains.
x
n/a KA operations n/a
ENTITY-SPECIFIC - PRODUCT QUALITY AND SAFETY
Product safety
(customer) and
consumer health
(customer)
Financial
risk

x x x
n/a KA operations Distribution
Product safety
(customer)
Opportunity 
x x
n/a KA operations Distribution
Access to and
affordability of
products and
services (customer)
Opportunity

the accessibility of product).
x x
n/a KA operations Distribution
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Introduction
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
DISCLOSURE REQUIREMENTS
AND INCORPORATION BY REFERENCE
The following tables list all of the ESRS disclosure requirements in ESRS 2 and the six
topical standards that are material to Kongsberg Automotive (KA) and have guided the
preparation of KA’s sustainability statements. The company has omitted all the disclosure
requirements in the topical standards E2, E3, S3, and S4, as these are below materiality
thresholds. The tables can be used to navigate to information relating to a specic dis‑
closure requirement in the sustainability statements. The tables also show where to nd
information relating to a specic disclosure requirement that lies outside of the sustain‑
ability statements and is “incorporated by reference“ to either the management’s review
or the nancial statements within this Annual Report, or to the Remuneration Report,
published as a separate report. In cases where no information related to a disclosure
requirement is available, no reference is made.
CROSS-CUTTING STANDARDS
DISCLOSURE REQUIREMENT
ESRS 2 GENERAL DISCLOSURES PAGE ADDITIONAL INFORMATION
BP-1
General basis for preparation of the
sustainability statement
39
BP-2
-
stances
39-40
GOV-1
The role of the administrative, management,
and supervisory bodies
40-42
Incorporation by reference - (ESRS 2
GOV-1 21a-3, 23 a, b): See page 17-18
for composition and competences of
BoD, meeting attendance,independ-
ence, work and risk assessment/
internal controls on page 14-15
(Corporate governance point 8-10)
and diversity metrics on page 82
ESRS 2 GENERAL DISCLOSURES PAGE ADDITIONAL INFORMATION
GOV-2
Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management, and superviso-
ry bodies
40-41
GOV-3
Integration of sustainability-related
performance in incentive schemes
41-42
Incorporation by reference - (ESRS
2 GOV-3 (29a-e): For incentive
schemes dependent on sustainabili-
ty-related performance, see
remuneration report, paragraph
"Long-term incentive plan 2025 for
management"
GOV-4
Statement on sustainability due diligence 40
GOV-5
Risk management and internal controls over
sustainability reporting
41
SBM-1
Strategy, business model, and value chain
(products, markets, customers)
42
Incorporation by reference - (ESRS
E2 SBM-1 38, 40a-g): For overall
strategy and business model
(products, markets, and customers),
see pages 23-27. For sustainability
related strategy, see pages 26-27.
For headcount of employees by
geographical areas, see page 28
SBM-2
Interests and views of stakeholders 43
SBM-3
Material impacts, risks and opportunities,
and their interaction with the strategy and
business model
48-52
IRO-1
Description of the process to identify and
assess material impacts, risks, and
opportunities
45-46
IRO-2
Disclosure requirements in ESRS covered by
the undertaking’s sustainability statement
47, 53-56
53
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Introduction
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
ENVIRONMENTAL STANDARDS
DISCLOSURE REQUIREMENT
ESRS E1 CLIMATE CHANGE PAGE ADDITIONAL INFORMATION
ESRS 2,
GOV-3
Integration of sustainability-related
performance in incentive schemes
41-42
Incorporation by reference - ESRS
E1 13: See Remuneration Report,
paragraph "Long-term incentive
plan 2025 for management"
E1-1
Transition plan for climate change mitigation 64-66
ESRS 2,
SBM 3
Material impacts, risks and opportunities,
and their interaction with the strategy and
business model
48,
62-63
ESRS 2,
IRO-1
Description of the processes to identify and
assess material climate-related impacts,
risks, and opportunities
45-46,
62
E1-2
Policies related to climate change mitigation
and adaptation
63
E1-3
Actions and resources in relation to climate
change policies
64-66
E1-4
Targets related to climate change mitigation
and adaptation
66-67
E1-5
Energy consumption and mix 67, 70
E1-6
Gross Scopes 1, 2, 3 and total GHG emissions 68-70
E1-7
GHG removals and GHG mitigation projects

n/a
E1-8
Internal carbon pricing n/a
E1-9

physical and transitional risks and potential
climate-related opportunities
n/a Phase-in option used
ESRS E4 BIODIVERSITY AND ECOSYSTEMS PAGE ADDITIONAL INFORMATION
E4-1
Transition plan and consideration of
biodiversity and ecosystems in the strategy
and business model
71
ESRS 2,
SBM 3
Material impacts, risks, and opportunities,
and their interaction with the strategy and
business model
49, 71
ESRS E4 BIODIVERSITY AND ECOSYSTEMS PAGE ADDITIONAL INFORMATION
ESRS 2,
IRO-1
Description of the processes to identify and
assess material biodiversity and ecosys-
tem-related impacts, risks, and opportunities
45-46,
71
E4-2
Policies related to biodiversity and
ecosystems
71
E4-3
Actions and resources related to biodiversity
and ecosystems
71
E4-4
Targets related to biodiversity and
ecosystems
71
E4-5
Impact metrics related to biodiversity and
ecosystems change
71
E4-6
-
ty and ecosystem-related risks, and
opportunities
n/a
ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY PAGE ADDITIONAL INFORMATION
ESRS
2, IRO-1
Description of the processes to identify and
assess material resource use and circular
economy-related impacts, risks, and
opportunities
45-46,
72-73
E5-1
Policies related to resource use and circular
economy
73
E5-2
Actions and resources related to resource
use and circular economy
73
E5-3
Targets related to resource use and circular
economy
73
E5-4
 72-75
E5-5

72,
74-75
E5-6

resource use and circular economy-related
risks and opportunities
n/a Phase-in option used
54
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
SOCIAL STANDARDS
DISCLOSURE REQUIREMENT
ESRS S1 OWN WORKFORCE PAGE ADDITIONAL INFORMATION
ESRS 2,
SBM-2
Interest and views of stakeholders 43
ESRS 2,
SBM-3
Material impacts, risks, and opportunities
and their interaction with the strategy and
business model
45-46,
49-50,
76-77
S1-1
Policies related to own workforce 78, 81, 84
S1-2
Processes for engaging with own workers
and workers’ representatives about impacts
43, 77
S1-3
Processes to remediate negative impacts
and channels for own workers to raise
concerns
77, 102
S1-4
Taking action on material impacts on own
workforce, and approaches to mitigating
material risks and pursuing material
opportunities related to own workforce, and
the effectiveness of those actions
78-79,
81,
84-85
S1-5
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
79,
81-82,
85
S1-6
Characteristics of the undertaking’s
employees
79-80
S1-7
Characteristics of non-employee workers in
the undertaking’s own workforce
79-80
S1-8
Collective bargaining coverage and social
dialog
79-80
S1-9
Diversity metrics 82
S1-10
Adequate wages 82
S1-11
Social protection 78-79
S1-12
Persons with disabilities n/a Phase-in option used
S1-13
Training and skills development metrics 81-82
S1-14
Health and safety metrics 85
S1-15
Work-life balance metrics n/a Phase-in option used
ESRS S1 OWN WORKFORCE PAGE ADDITIONAL INFORMATION
S1-16
Compensation metrics (pay gap and total
compensation)
83
S1-17
Incidents, complaints, and severe human
rights impacts
77, 80
ESRS S2 WORKERS IN THE VALUE CHAIN PAGE ADDITIONAL INFORMATION
ESRS 2,
SBM-2
Interests and views of stakeholders
43,
94-95
ESRS 2,
SBM-3
Material impacts, risks, and opportunities
and their interaction with the strategy and
business model
45-46,
50-51,
87-88
S2-1
Policies related to value chain workers 88-89
S2-2
Processes for engaging with value chain
workers about impacts
94-95
S2-3
Processes to remediate negative impacts
and channels for value chain workers to raise
concerns
95
S2-4
Taking action on material impacts on value
chain workers, and approaches to managing
material risks and pursuing material
opportunities related to value chain workers,
and the effectiveness of those actions
88-94,
96
S2-5
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
96-97
55
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
GOVERNANCE STANDARDS
DISCLOSURE REQUIREMENT
ESRS G1 BUSINESS CONDUCT PAGE ADDITIONAL INFORMATION
ESRS 2,
GOV-1
The role of the administrative, supervisory,
and management bodies
40-42
Refer to ESRS 2 GOV for
incorporation by reference
ESRS 2,
IRO-1
Description of the processes to identify and
assess material impacts, risks, and
opportunities
45-46,
51, 98
G1-1
Business conduct policies and corporate
culture
99-100
G1-2
Management of relationships with suppliers
102,
88-93
G1-3
Prevention and detection of corruption and
bribery
101
G1-4
Incidents of corruption or bribery 101
G1-5
 n/a Subtopic not material
G1-6
Payment practices 102
56
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
ENVIRONMENTAL INFORMATION
EU TAXONOMY
ASSESSMENT OF KA’S ACTIVITIES’
TAXONOMY ELIGIBILITY
The main focus of the assessment of eligible activities was
set on the income‑generating economic operations and
is based on best judgement and the availability of data
through the existing reporting channels. Workshops were
held with representatives of the nance and engineering
departments of the different business units to analyze the
group’s economic activities regarding their relevance to
the EU taxonomy eligibility.
As a rst step, the activities were allocated to the
applicable NACE codes (Nomenclature of Economic Activ‑
ities), which were then mapped to the potential activi‑
ties listed in the Delegated Acts in a second step and con‑
rmed based on the activity descriptions. The group’s
core activities across all business units primarily pointed
to the activities “3.18 Manufacture of automotive and
mobility vehicle components” and “3.6 Manufacture of
other low carbon technologies”.
The corresponding economic activities’ alignment
with the activity descriptions was then further ana‑
lyzed in detail. Detached from this rst analysis, the full
list of EU taxonomy activities was screened for applica‑
ble activities based on the activity descriptions, which
also included supporting economic activities. The addi‑
tional activities identied as eligible are “6.5 Transport by
motorbikes, passenger cars, and light commercial vehi‑
cles” and “7.7 Acquisition and ownership of buildings.”
ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
CLIMATE-RELATED ENVIRONMENTAL OBJECTIVES:
3.18 MANUFACTURE OF AUTOMOTIVE AND MOBILITY
VEHICLE COMPONENTS
The activity description refers to the manufacture, repair,
maintenance, retrotting, repurposing, and upgrade of
mobility components for zero‑emission personal mobility
devices and of automotive and mobility systems, compo‑
nents, separate technical units, parts, and spare parts.
A clarication was published for this activity descrip‑
tion during 2024, narrowing down the eligible com‑
ponents to include only those that are essential parts
necessary for the environmental performance of the
zero‑emission vehicle.
As a technology development and manufacturing
company for vehicle components, most of KA’s income‑
generating activities were analyzed for eligibility with
3.18. Together with experts from the engineering and
sales department, the product families were discussed
for each business unit. Thereby, as a rst step, products
that can be built into electric vehicles and projects that
develop electronic vehicle components were identied
(products that can be installed in hybrid vehicles and/
or vehicles with internal combustion engines are not
included). In a second step, it was discussed whether the
identied products are essential parts necessary to the
environmental performance of the electric vehicle and are
thus eligible for 3.18.
3.6 MANUFACTURE OF OTHER LOW CARBON
TECHNOLOGIES
This activity comprises the manufacture of technol‑
ogies that are aimed at and demonstrate substantial
GHG emission savings compared to the best perform‑
ing alternative technology/product/solution available on
the market. While the company has identied activities
that show best in market performance based on inter‑
nal benchmarking, it is difcult to demonstrate lifetime
GHG emission savings that are substantial. Therefore, the
corresponding activities have been nally classied as
non-eligible for scal year 2025. KA will continue to ana‑
lyze these activities in more detail going forward through
a lifetime GHG saving analysis.
6.5 TRANSPORT BY MOTORBIKES, PASSENGER CARS,
AND LIGHT COMMERCIAL VEHICLES
The denition of this activity includes the purchase,
nancing, renting, leasing, and operation of vehicles des‑
ignated as categories M1. Therefore, this activity includes
the leasing of company cars by employees.
7.7 ACQUISITION AND OWNERSHIP OF BUILDINGS
The denition of this activity includes buying real estate
and exercising ownership of said real estate. This also
includes leased real estate and thus, includes buildings
owned and leased by KA.
All four listed activities are attributed to the climate‑
change mitigation objective. No activities were identied
that comply with the climate‑change adaption objective.
57
58
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
NON-CLIMATE-RELATED ENVIRONMENTAL OBJECTIVES
KA did not identify any economic activities that match
the description of economic activities of the four non‑cli‑
mate‑related environmental objectives as outlined in the
environmental delegate act.
MINIMUM SAFEGUARDS
Minimum safeguards refer to implemented procedures
that ensure alignment with the OECD Guidelines for
Multinational Enterprises, the UN Guiding Principles on
Business and Human Rights, the eight fundamental ILO
conventions, and the International Bill of Human Rights.
The main topics included are human rights, anti‑bribery,
anti‑corruption, fair competition, and taxation.
KA has analyzed compliance by breaking down the
main topics into specic criteria. It is committed to con‑
ducting business with the highest standards of integrity
and transparency. Many aspects are thus covered in the
Code of Conduct and the policies on bribery and corrup‑
tion, and corresponding procedures and processes are in
place.
KA is actively working on improving minimum safe‑
guards and published its Human Rights Policy at the end
of 2024, outlining the company’s responsibility, commit‑
ment, and behavioral expectations of its personnel and
business partners. The procedures and processes sur‑
rounding suppliers are well established. However, in its
own operations, the establishment of formal internal pro‑
cesses which a dedicated human rights ofcer could apply
to fulll their role has not been completed in the reporting
year. Therefore, KA has concluded that the minimum safe‑
guards are not yet fullled for the reporting year 2025.
ASSESSMENT OF KA’S ACTIVITIES’
TAXONOMY ALIGNMENT
The requirements to be able to classify activities as Tax‑
onomy‑aligned include compliance with the minimum
safeguards as well as fullling the substantial contribu‑
tion and do-not-signicantly-harm criteria (DNSH). As
outlined above, KA currently does not yet fully comply
with all aspects required by the minimum safeguards,
and therefore no activities can be reported as taxono‑
my‑aligned in 2025. Because of this, the substantial con‑
tribution and the DNSH criteria were not assessed for the
2025 reporting year.
KEY PERFORMANCE INDICATORS (KPIs)
The consolidated nancial statements of KA follow EU-en‑
dorsed International Financial Reporting Standards
(IFRS) and International Financial Reporting Interpre‑
tations Committee (IFRIC) interpretations. These state‑
ments serve as the basis for EU Taxonomy calculations of
turnover, capital expenditure (CAPEX), and certain oper‑
ational expenditure (OPEX). Double counting is avoided
by clearly allocating each item of Taxonomy‑eligible turn‑
over, capital expenditure, and operating expenditure to a
single Taxonomy‑eligible economic activity.
TURNOVER
The Taxonomy‑eligible share of turnover (numerator) is
dened as the net turnover derived from products or ser‑
vices and derived from the Taxonomy‑eligible income‑
generating activities (3.18).
The denominator for the turnover KPI consists of the
consolidated operating revenues (2025: MEUR 712.8) in
accordance with IFRS 15 and IAS 1 82(a), and can be rec‑
onciled to the consolidated statement of comprehensive
income of 2025. Further information can be found in note
7 of the consolidated nancial statements 2025.
CAPITAL EXPENDITURE (CAPEX)
The Taxonomy‑eligible share of CAPEX (numerator) con‑
sists of investments in capitalized development project
costs (IAS 38) and production machinery related to cur‑
rent and future income‑generating Taxonomy‑eligible
activities (3.18), investment in buildings and building
leases (activity 7.7) that are included in the scope of IFRS
16, and car‑lease investments for employees (activity 6.5)
that are included in the scope of IFRS16.
The denominator for the CAPEX KPI consists of all
additions to tangible and intangible assets as well as
right‑of‑use assets in accordance with IAS 16, IAS 38, and
IFRS 16 before any depreciation, amortization, or remea‑
surement (2025: MEUR 22.8). It can be reconciled with
the additions reported in notes 12 to 14 of the consolidated
nancial statements 2025.
OPERATING EXPENDITURE (OPEX)
The operating expenditure KPI is dened as Taxonomy-el‑
igible operating expenditure (numerator) divided by the
total operating expenditure (denominator) as dened in
the EU Taxonomy.
The denominator for the operating expenditure
(OPEX) KPI consists of the expenses for non‑capitalized
research and development costs, short‑term and low‑
value leases, building renovation measures, as well as
costs for the maintenance and repair of property, plant,
and equipment (2025: MEUR 66.2).
To derive the Taxonomy‑eligible share of OPEX, the
above costs were allocated based on the corresponding
current and future Taxonomy‑eligible income‑generat‑
ing activities (3.18). For the research and development
costs specically, the individual projects were included
if the underlying product development is for use in elec‑
tric vehicles only. Furthermore, the costs for car leases for
employees (activity 6.5) were included for those leases
that are excluded in the scope of IFRS16. There are no low‑
value building leases.
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
CHANGES TO PRIOR REPORTING YEAR
There were no restatements of the prior year numbers.
The eligibility KPIs 2025 for activity 3.18 show compara‑
ble numbers to the 2024 reporting year:
> Activity 3.18: Turnover (2025: 0.2% / 2024: 0.4%),
Capex (2025: 3.1% / 2024: 5.8%), Opex (2025: 0.5% /
2024: 1.3%)
> Activity 6.5: Capex (2025: 0.4% / 2024: 1.2%), Opex
(2025: 0% / 2024: 0.1%)
> Activity 7.7: Capex (2025: 20.6% / 2024: 31.6%), Opex
(2025: 0% / 2024: 0%)
NOTE ON EXPOSURE TO NUCLEAR AND FOSSIL GAS-RELATED ACTIVITIES
ROW NUCLEAR ENERGY-RELATED ACTIVITIES
1
The undertaking carries out, funds, or has exposure to the research, development,
demonstration, and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds, or has exposure to the construction and
safe operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using the best
available technologies.
NO
3
The undertaking carries out, funds, or has exposure to the safe operation of
existing nuclear installations that produce electricity or process heat, including
for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
NO
ROW FOSSIL GAS-RELATED ACTIVITIES
4
The undertaking carries out, funds, or has exposure to the construction or
operation of electricity generation facilities that produce electricity using fossil
gaseous fuels.
NO
5
The undertaking carries out, funds, or has exposure to the construction, refur-
bishment, and operation of combined heat/cooling and power generation facilities
using fossil gaseous fuels.
NO
6
The undertaking carries out, funds, or has exposure to the construction, refurbish-
ment, and operation of heat generation facilities that produce heat/cooling using
fossil gaseous fuels.
NO
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FINANCIAL YEAR 2025 BREAKDOWN OF ENVIRONMENTAL OBJECTIVES OF TAXONOMY-ALIGNED ACTIVITIES
KPI (1)
TOTAL (2)
PROPORTION OF TAXONOMY-
ELIGIBLE ACTIVITIES (3)
TAXONOMY-ALIGNED
ACTIVITIES (4)
PROPORTION OF
TAXONOMY-ALIGNED
ACTIVITIES (5)
"CLIMATE CHANGE
MITIGATION
(6)"
"CLIMATE CHANGE
ADAPTATION
(7)"
WATER (8)
CIRCULAR ECONOMY (9)
POLLUTION (10)
BIODIVERSITY (11)
PROPORTION OF ENABLING
ACTIVITIES (12)
PROPORTION OF
TRANSITIONAL ACTIVITIES
(13)
NOT ASSESSED ACTIVITIES
CONSIDERED NON
MATERIAL (14)
TAXONOMY-ALIGNED
ACTIVITIES IN PREVIOUS
FINANCIAL YEAR (2024)
(15)
PROPORTION OF TAXONOMY-
ALIGNED ACTIVITIES IN
PREVIOUS FINANCIAL YEAR
(2024) (16)
TEXT MEUR % MEUR % % % % % % % % % % MEUR %
Turnover 712.8 0.2%
Capex 22.8 24.1%
Opex 66.2 0.5%
REPORTED KPI TURNOVER
FINANCIAL YEAR 2025 ENVIRONMENTAL OBJECTIVE OF TAXONOMY-ALIGNED ACTIVITIES
ECONOMIC ACTIVITIES (1)
CODE (2)
TAXONOMY-ELIGIBLE
KPI (PROPORTION OF
TAXONOMY-ELIGIBLE
TURNOVER) (3)
TAXONOMY-ALIGNED KPI
(MONETARY VALUE OF
TURNOVER (4)
TAXONOMY-ALIGNED
KPI (PROPORTION
OFTAXONOMY-ALIGNED
TURNOVER (5)
CLIMATE CHANGE
MITIGATION (6)
CLIMATE CHANGE
ADAPTATION(7)
WATER (8)
CIRCULAR ECONOMY (9)
POLLUTION (10)
BIODIVERSITY (11)
ENABLING ACTIVITY (12)
TRANSITIONAL ACTIVITY
(13)
PROPORTION OF
TAXONOMY-ALIGNED IN
TAXONOMY-ELIGIBLE (14)
TEXT % MEUR % % % % % % % E T %
Acquisition and ownership of
buildings
CCM 7.7 0.0% 0%
Manufacture of automotive and
mobility components CCM 3.18 0.2% 0%
Transport by motorbikes,
passenger cars, and light
commercial vehicles
CCM 6.5 0,.0% 0%
Sum of alignment per objective
Total KPI (Turnover) 0.2% 0%
ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
REPORTED KPI CAPEX
FINANCIAL YEAR 2025 ENVIRONMENTAL OBJECTIVE OF TAXONOMY-ALIGNED ACTIVITIES
ECONOMIC ACTIVITIES (1)
CODE (2)
TAXONOMY-ELIGIBLE
KPI (PROPORTION OF
TAXONOMY-ELIGIBLE
CAPEX) (3)
TAXONOMY-ALIGNED KPI
(MONETARY VALUE OF
CAPEX (4)
TAXONOMY-ALIGNED
KPI (PROPORTION
OFTAXONOMY-ALIGNED
CAPEX (5)
CLIMATE CHANGE
MITIGATION (6)
CLIMATE CHANGE
ADAPTATION(7)
WATER (8)
CIRCULAR ECONOMY (9)
POLLUTION (10)
BIODIVERSITY (11)
ENABLING ACTIVITY (12)
TRANSITIONAL ACTIVITY
(13)
PROPORTION OF
TAXONOMY-ALIGNED IN
TAXONOMY-ELIGIBLE (14)
TEXT % MEUR % % % % % % % E T %
Acquisition and ownership of
buildings
CCM 7.7 20.6% 0%
Manufacture of automotive and
mobility components CCM 3.18 3.1% 0%
Transport by motorbikes,
passenger cars and light
commercial vehicles
CCM 6.5 0.4% 0%
Sum of alignment per objective
Total KPI (Capex) 24,1% 0%
REPORTED KPI OPEX
FINANCIAL YEAR 2025 ENVIRONMENTAL OBJECTIVE OF TAXONOMY-ALIGNED ACTIVITIES
ECONOMIC ACTIVITIES (1)
CODE (2)
TAXONOMY-ELIGIBLE
KPI (PROPORTION OF
TAXONOMY-ELIGIBLE OPEX)
(3)
TAXONOMY-ALIGNED KPI
(MONETARY VALUE OF
OPEX (4)
TAXONOMY-ALIGNED
KPI (PROPORTION
OFTAXONOMY-ALIGNED
OPEX (5)
CLIMATE CHANGE
MITIGATION (6)
CLIMATE CHANGE
ADAPTATION(7)
WATER (8)
CIRCULAR ECONOMY (9)
POLLUTION (10)
BIODIVERSITY (11)
ENABLING ACTIVITY (12)
TRANSITIONAL ACTIVITY
(13)
PROPORTION OF
TAXONOMY-ALIGNED IN
TAXONOMY-ELIGIBLE (14)
TEXT % MEUR % % % % % % % E T %
Acquisition and ownership of
buildings
CCM 7.7 0.0% 0%
Manufacture of automotive and
mobility components CCM 3.18 0.5% 0%
Transport by motorbikes,
passenger cars, and light
commercial vehicles
CCM 6.5 0.0% 0%
Sum of alignment per objective
Total KPI (Opex) 0.5% 0%
61
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Auditor’s Report Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
CLIMATE CHANGE
ESRS E1
IMPACTS, RISKS, AND OPPORTUNITIES
As part of the process to identify climate‑related material
impacts, risks, and opportunities, KA has reviewed cli‑
mate‑related physical risks affecting its own operations
as well as in its value chain. The assessment considered its
exposure to climate‑related hazards of lower and higher
magnitudes (above and below the 1.5°C global warm‑
ing scenario). Discussions on transitional risks within
the double materiality process were mainly driven by the
anticipated shift of the global automotive industry as a
whole to lower‑ and zero‑emission vehicle solutions and
the industry’s alignment with the Paris Climate Agree‑
ment (1.5°C global warming limit).
The same time horizons were applied as for the dou‑
ble materiality assessment for both physical and tran‑
sition risks. KA has not performed a separate formal cli‑
mate risk scenario analysis, and no external climate risk
simulation tools or standards have been used. The discus‑
sions considered KA’s existing product portfolio and stra‑
tegic direction. The identication of KA’s own actual and
potential climate change impacts included already exist‑
ing reporting within KA and its upstream value chain
(such as energy consumption and emissions reporting),
as well as external sources (full value chain).
KA’s climate‑change impacts occur through its produc‑
tion processes and its supply chain operations. KA faces
both physical and transitional dimension risks of climate
change. Physical risks arise from the exposure of the com‑
pany's operations, suppliers, and customers to the increas‑
ing severity of climate change. Transitional risks primar‑
ily relate to the challenges associated with phasing out
the fossil fuels used in KA’s operations and adapting to the
industrial shift toward electric vehicles. At the same time,
climate change offers strategic opportunities for KA. The
ongoing transformation of the automotive industry signi‑
cantly inuences the company’s future strategy, product
portfolio, and decision‑making processes. The table below
summarizes KA’s main impacts, risks, and opportunities:
Climate change is one of the most daunting challenges of our time, posing signicant
risks to industries, economies, and ecosystems worldwide. The automotive sector is
a major contributor to global greenhouse gas (GHG) emissions and is undergoing a
profound transformation to enable low-emission mobility. Kongsberg Automotive (KA)
is continuously working toward reducing GHG emissions from its own operations,
its products, as well as throughout its supply chain. The company aims to make a
meaningful contribution to society’s efforts to combat climate change and protect the
environment. The company is committed to reducing carbon emissions and minimizing
its environmental footprint, in both its operations and product portfolio, while
supporting and enabling customers to achieve their own sustainability objectives.
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IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
CO EMISSIONS (SCOPE
1, 2, AND 3)
Actual
negative
impact
GHG emissions from the combustion of fuels and
the consumption of electricity from fossil sources
in the extraction of raw materials and production

production leads to process emissions.
> 
and the setting of energy reduction targets to
reduce energy consumption and related GHG
emissions
> Ongoing shift to the usage of renewable energy
for KA’s production processes and buildings to
reduce GHG emissions
> 
lower weight, recyclability, lower embedded
GHG emissions, and compatibility with battery
electric vehicles
> Purchase of input materials with lower GHG
emissions
CO EMISSIONS (SCOPE
1, 2, AND 3)
Transitional


customers demand products for the green
shift, legacy products become unmarketable

to maintain the license to operate. Risk of
disruptive technologies, losing R&D investments,
not competitive.
CO EMISSIONS (SCOPE
1, 2, AND 3)
Opportunity
Financial opportunities due to the green
shift in the car market with demand for less
carbon-intensive products, the transition to
BEVs, and the opportunity to grow the product
portfolio to align with low-carbon car market
demands. Opportunity by developing new
products to open up new business areas and
replacement businesses.
CLIMATE CHANGE
ADAPTATION -
PHYSICAL RISKS
Physical risk
Physical risks to operations due to changing
climate: Damage to property, supply
chain disruption, and the costs for climate
hazard protection.
> 
climate change-related topics)
> Broad supplier portfolio and supplier risk
mapping
> Internal team of sustainability experts
CLIMATE CHANGE
ADAPTATION -
TRANSITIONAL RISKS
Transitional

Customers demand products for the green
shift, legacy products become unmarketable

costs associated with changing legislation and
taxes due to CC. Investments needed to maintain
the license to operate.
RENEWABLE ENERGIES
Transitional

Increasing/volatile energy prices increase oper-
ational costs as energy production shifts to low
carbon solutions.
> 
electricity by 2030
RENEWABLE ENERGIES
AND ENERGY
CONSUMPTION AND
EFFICIENCY
Opportunity
Financial opportunities by shifting to renew-


in production.
POLICIES
KA’s Sustainability Policy articulates the key areas of its
own operations approach addressing climate change mit‑
igation as well as renewable energy deployment and is
approved by the CEO. The two key pillars are:
> Alignment of KA’s climate goals with the Paris Climate
Agreement
> Reduction of CO₂e emissions through the increased
usage of renewable energy and alternative raw
materials
The policy does not include further elaborations. It was
developed to provide general guidance, and further
details in terms of actions and targets are laid out in the
sustainability roadmap instead.
In addition, there are two policies (KA’s Supplier Dec‑
laration and KA’s Supplier Sustainability Manual) that
both focus on upstream value chain and address the need
for suppliers to mitigate and adapt to climate change
within their operations. Further details on these two
policies can be found within S2 – Workers in the value
chain,on pages 86 ff.
KA has not adopted formal policies addressing climate
change adaptation or energy efciency. The transition
plan for KA’s own operations is laid out in KA’s sustain‑
ability roadmap and not as a policy.
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ACTIONS AND TRANSITION PLAN FOR
CLIMATE CHANGE MITIGATION
As noted in the introduction to the General Information
chapter, KA underwent signicant reorganization and
restructuring processes in 2025. Despite these changes,
the company maintained continuity in its focus on sustain‑
ability across its operations and reporting. The initiatives
outlined in the existing roadmap were implemented, and
reporting was ensured in accordance with the ESRS stan‑
dard. No further signicant actions or the development of
Scope 3 targets and roadmaps were initiated in 2025.
ACTIONS IN OWN OPERATIONS
KA's climate change transition plan covers Scope 1 and
2 and is based on several key elements. It does not cover
Scope 3 yet. Climate risks are included in KA’s overall risk
management system to reect implications on an ongoing
basis and in a structured way.
For climate change mitigation, KA has dened three
long‑term strategic goals supporting the transition to
sustainable products and decarbonization:
LOW- OR ZERO-CO DRIVE SYSTEMS
ICE HEV
Gear Control Systems
Clutch Actuation Systems
Fluid Management (ICE)
Electric Actuators
Vehicle Dynamics
Compressed Air Management
Steering Columns
Pedals
Thermal Management
PHEV BEV/FCEV
KA’s product groups
(ICE: Internal combustion engine / HEV: Hybrid electric vehicle / PHEV: Plug‑in hybrid electric vehicle /
BEV: Battery electric vehicle / FCEV: Fuel cell electric vehicle)
balancing requirements between traditional combustion
engines and electric vehicles. The following graphic pro‑
vides an overview of KA’s main product groups and how
they contribute to the different types of drive systems.
As shown in the illustration above, KA’s product
groups are already applied in multiple powertrains,
underlining the resilience in the product portfolio to cli‑
mate-related megatrends such as electrication. More
detailed information on KA’s strategy can be found on
pages 23 ff. A formal resilience analysis was not conducted
in 2025. KA will consider conducting a formal resilience
analysis in the comprehensive review of its sustainability
strategy in 2026.
KA’s target setting is in line with European climate neu‑
trality targets and also reects the Science Based Targets
Initiative (SBTi) recommendations. KA is not excluded
from the EU Paris‑aligned benchmarks. The targets and
transition plan have been approved by the ELT. These
long‑term strategic goals, including any potential intro‑
duction of Scope 3 targets and roadmaps, will be revisited
and reviewed again as part of a comprehensive review of
KA’s sustainability strategy by the ELT, together with the
new sustainability organization in 2026.
As noted above, climate change is signicantly affect‑
ing the global automotive sector and contributes to the
pathway to low‑carbon and zero‑emission vehicles. KA’s
product portfolio strategy addresses this transition by
CARBON-NEUTRAL PRODUCTS BY 2039
100% RENEWABLE PURCHASED ENERGY
BY 2030
REDUCTION OF SCOPE 1 AND 2 COe
EMISSIONS BY 85% (BASE YEAR 2023)
BY 2030 AND ACHIEVING ZERO
SCOPE 1 AND 2 COe EMISSIONS BY 2035
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KEY ACTIONS/
DECARBONIZATION
LEVERS
DESCRIPTION
SCOPE OF
ACTION
TARGET
IN PLACE?
OVERALL PROGRESS IN
2025 AND TRACKING
ESTIMATED
DECARBONIZATION
LEVER
CONTRIBUTION FOR
2035 TARGET
ENERGY EFFICIENCY
INCREASE AND
ENERGY USE
REDUCTION (SCOPE
1 AND 2)
Energy use optimization
initiatives and energy
consumption reduction
initiatives (e.g. use of
waste heat)
Own
operations
YES
Energy reduction initiatives
across plants resulted in a
total energy reduction of
595 MWh in 2025
APPROX. 5%
SWITCH TO
RENEWABLE
ELECTRICITY
(SCOPE 2)
Achieve 100% renewable
electricity at all plants
by 2030.
Own
operations
YES
Increased number of plants
using 100% renewable
electricity (renewable
energy share of 58%)
APPROX. 85%
ELECTRIFICATION OF
PROCESSES (SCOPE
1 AND 2)
Replacement of fossil fuel-
based heating systems,
machinery, and vehicles with
electric alternatives by 2035.
Own
operations
YES
No update
APPROX. 10%
REDUCTION OF
EMISSIONS FROM
PURCHASED GOODS
AND SERVICES
(SCOPE 3.1)
KA aims to produce and sell
carbon-neutral products
by 2039.
Supply
chain
YES
Roadmap for Scope 1 and

progress for Scope 3 in
2025
TBD
UPSTREAM AND DOWNSTREAM
VALUE CHAIN-RELATED ACTIONS
As climate change, resource scarcity, and biodiversity
loss create increasing challenges worldwide and across
the automotive industry, KA initiated two‑way commu‑
nication and engagement with suppliers on decarbon‑
ization targets and environmental responsibility. KA’s
risk assessments, the decarbonization questionnaire, and
onsite sustainability audit checklist address environmen‑
tal and energy management policies and systems, yearly
environmental targets, and employee training.
KA requests information from its suppliers regarding
the percentage of renewable energy used in electricity
and heating. KA also collects primary performance data
to enable future hybrid Scope 3 upstream emission calcu‑
lations and strengthen supplier engagement to decrease
emissions throughout the value chain. KA has not estab‑
lished a Supplier Academy yet in 2025, but still plans to
do so, offering training on climate change, sustainable
development, ESG, human rights, and other relevant top‑
ics to suppliers and their employees.
At a company level, KA calculates upstream Scope 3
CO₂e emissions using a spend-based calculation model,
65
At present, KA’s GHG emissions reduction strategy does
not utilize removals and/or offsetting credits and is not
based on an internal carbon pricing model. Potential
locked‑in GHG emissions are limited but relevant in rela‑
tion to KA’s partially fossil fuel‑based production sites
and machinery, which KA is working to convert to renew‑
able energy. To achieve the above key actions, opex and
capex are necessary and are considered within the annual
budget planning process. The future alignment of KA’s
activities (TURNOVER, CAPEX, and OPEX) with EU Tax‑
onomy is mainly tied to the global shift from fossil fuel‑
based vehicles to electric vehicles and the corresponding
portfolio transformation.
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enabling the company to analyze hot spots and develop
effective measures to decrease carbon emissions in its
supply chain. The calculation shows that purchased
goods account for the largest share of KA’s upstream CO₂e
emissions, followed by logistics.
For the calculation of downstream Scope 3 emissions,
a calculation method was established in 2024. The results
show that the use phase of KA products (category 3.11 use
of sold products) is by far the largest contributor to over‑
all Scope 3 CO₂e emissions. Although KA’s products do
not directly generate any emissions during the use phase,
they contribute indirectly to the emissions of commercial
and passenger vehicles. Scope 3.11 emissions are expected
to decline in the coming years due to the increasing adop‑
tion of electric vehicles.
No additional upstream or downstream value chain‑
related actions were introduced in 2025.
METRICS AND TARGETS
KA has set specic targets across Scope 1 and 2 GHG emis‑
sions to align its climate targets with the commitments
of the Paris Agreement. To achieve the long‑term strategic
goal for Scope 1 and 2 emissions, KA has established the
following reduction‑milestone targets:
12%
85%
NET
ZERO
achieved (Plant in Wuxi, China, switched to 100% renew‑
able electricity in May 2025).
To achieve the strategic target of using 100% renewable
energy by 2030, KA continued centralizing energy supply
contracts to better manage energy market volatility in the
future. The options under evaluation include power pur‑
chase agreements, on‑site generation of renewable energy,
and green tariffs. Renewable electricity usage across KA
manufacturing facilities increased from 61% in 2024 to 68%
in 2025. Additional production sites have been identied
for the transition to renewable electricity tariffs in 2026.
On top of the milestone targets, KA sets targets to
decrease its energy consumption and increase its use of
renewable energy sources on an annual basis for the fol‑
lowing year. All of KA’s plants set a target for 2026 to
decrease their energy consumption by 2% relative to total
product sales (“energy intensity”) compared to 2025.
Key activities included implementing air leak reduction
programs, replacing old equipment with newer and more
energy-efcient devices, and reusing waste/process heat.
KA’s energy intensity in 2025 amounted to 123 mega‑
watt hours used in production for every million EUR of
total product sales, which equates to a 9.8% increase from
the 112‑megawatt hours per million EUR of total product
sales in 2024. This increase is partly due to the lower level
of sales compared to a similar number of production sites.
A signicant portion of the energy consumption (such as
heating and cooling) is not inuenced by production vol‑
umes. The energy intensity is expected to stabilize again
with less volatility in sales numbers.
While energy intensity was the primary key perfor‑
mance indicator, manufacturing units reported that
absolute energy use decreased in 2025 by 0.7% to 87,622
megawatt hours from 88,217 megawatt hours in 2024.
In 2024, the group’s CO₂e emissions (Scope 1 and
2) were approximately 15,557 tonnes of CO₂e (mar‑
ket‑based), which equates to a 14% reduction from the
ABSOLUTE REDUCTION BY 2025
(2023 BASELINE)
ABSOLUTE REDUCTION BY 2030
(2023 BASELINE)
(100% ABSOLUTE REDUCTION)
BY 2035 FOR SCOPE 1 AND 2
(MARKET-BASED)
These milestone targets will be revisited and reviewed
again as part of a comprehensive review of KA’s sustain‑
ability strategy by the ELT together with the new sustain‑
ability organization in 2026.
The described targets follow the absolute contraction
approach as there is no sectoral decarbonization pathway
for KA’s industry dened by any institution (e.g. Science
Based Target Initiative (SBTi). The targets are compati‑
ble with limiting global warming to 1.5°C, considering
the SBTi target setting tool and the SBTi Net‑Zero tool.
KA’s targets for reducing Scope 1 and 2 CO₂e emissions
by 100% by 2035 are even more ambitious than SBTi
requirements, which propose 63% Scope 1 and 2 reduc‑
tions between 2023 and 2035 (SBTi target setting tool, 1.5
degree scenario) or 90% (SBTi Net‑Zero tool) Scope 1 and
2 reduction for this period. Missing Scope 3 reduction tar‑
gets will be discussed during the comprehensive review
of KA’s sustainability strategy in 2026 .
The targets were developed through workshops with
operations management. They are based on internal
reduction scenarios and are not externally assured.
The above‑mentioned combined Scope 1 and 2 reduc‑
tion targets will be achieved with a focus on Scope 2
emissions in a rst step. This means that the combined
(Scope 1 and 2) reduction of 85% by 2030 will be achieved
with a 100% reduction of Scope 2 emissions. The remain‑
ing approximately 15% emissions (only Scope 1) will be
reduced between 2030 and 2035 with the replacement
of fossil fuel‑based machines and heating systems with
zero‑emission alternatives.
The long‑term strategic goal of achieving 100% pur‑
chased renewable energy by 2030, which refers to pur‑
chased electricity and heat, underlines the prioritization
of removing emissions related to Scope 2 rst and remain‑
ing Scope 1 emissions by 2035. The next milestone for this
long‑term strategic goal was to switch one additional
plant to 100% renewable electricity in 2025, which was
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18,113 tonnes of CO₂e emitted in 2023 (base year). These signicant reductions were
achieved to some extent by improving energy efciency. In 2025, the group’s CO₂e emis‑
sions (Scope 1 and 2) were approximately 16,320 tonnes of CO₂e (market-based), which
equates to a 10% reduction from the 18,113 tonnes of CO₂e emitted in 2023 (base year).
In 2025, despite the positive development compared to the 2023 base year, the target of
-12% CO₂e emissions (Scope 1 and 2) compared to 2023 was not achieved. This was partly
due to increasing emission rates in one of the largest plants that has not yet switched to
renewable electricity. The actual reduction compared to the base year 2023 was mainly
achieved by switching additional plants to renewable electricity. KA will keep on working
to further reduce emissions in 2026 in accordance with its roadmap, and switching fur‑
ther production sites to renewable energy.
Total Scope 3 CO₂e emissions decreased from 4.3 million tonnes in 2024 to 3.2 mil‑
lion tonnes in 2025, which is to some extent driven by the reduced number of products
sold and a reduced amount of purchased goods. The CO₂e intensity values (market-based)
on net revenues also decreased between 2024 and 2025 by 17%, demonstrating that a
CO₂e reduction was achieved aside from sales effects. To a large extent, this decrease is
the result of the most material Scope 3 category, 3.11 Use of sold products. The calculation
is tied to product weight compared to total vehicle weight and in 2025, the product mix
sold was more favorable in terms of total weight compared to 2024, which contributed
largely to the decrease of CO₂e emissions on top of lower volumes sold in 2025. Further,
the amounts from the most material upstream Scope 3 category (3.1 Purchased goods and
services) decreased overproportionally as well due to a lower share of products bought
from countries with high average emission intensity.
To achieve the long‑term goal of carbon‑neutral products by 2039, upstream Scope 3 GHG
emissions also need to be addressed. Up until the end of 2025, no Scope 3 targets or road‑
maps were developed. Any potential introduction of Scope 3 targets and roadmaps to
achieve this long‑term goal will be revisited and reviewed again as part of a comprehen‑
sive review of KA’s sustainability strategy in 2026.
ENERGY CONSUMPTION AND MIX 2024* 2025*
(1) Fuel consumption from coal and coal products (MWh)
- -
(2) Fuel consumption from crude oil and petroleum products (MWh)
267 693
(3) Fuel consumption from natural gas (MWh)
12.295 12.287
(4) Fuel consumption from other fossil sources (MWh)
857 685
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from
fossil sources (MWh)
23.214 20.013
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5)
36.632 33.678
Share of fossil sources in total energy consumption (%)
43% 38%
(7) Consumption from nuclear sources (MWh)
5.530 3.533
Share of consumption from nuclear sources in total energy consumption (%)
6% 4%
(8) Fuel consumption for renewable sources, including biomass (also comprising
industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)
(MWh)
- -
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from
renewable sources (MWh)
46.054 50.410
(10) The consumption of self-generated non-fuel renewable energy (MWh)
- -
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8
to 10)
46.054 50.410
Share of renewable sources in total energy consumption (%)
54% 58%
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)
88.217 87.622
Energy intensity (MWh /mEUR)
112 123
Renewable electricity share (%)
61% 68%
*2024 and 2025 gures do not include fuel consumption of company cars
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MILESTONES AND TARGET YEARS
BASE YEAR
2023
2024 2025

2023-2025

2024-2025
2025
(TARGET)
2030
(TARGET)
-2050
(TARGET)
ANNUAL %
TARGET-/-
BASE YEAR
Gross Scope 1 GHG emissions (tCOe)
2,742 2,493 2,608 -5% 5% 2,413 411 0
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%)
0% 0% 0% 0% 0% 0% 0% 0%
Gross location-based Scope 2 GHG emissions (tCOe)
17,705 16,410
18,125
2% 10% 15,580 2,656 0
Gross market-based Scope 2 GHG emissions (tCOe)
15,371 13,064 13,712 -11% 5% 13,527 2,306 0
Total gross indirect (Scope 3) GHG emissions (tCOe)*
5,074,153 4,253,482 3,174,492 -37% -25%
1 Purchased goods and services*
261,760 198,366 169,513 -35% -15%
2 Capital goods
16,803 5,298 5,395 -68% 2%
3 Fuel and energy-related activities (not included in Scope 1 or Scope 2)*
4,605 3,755
4,140
-10% 10%
4 Upstream transportation and distribution
11,933 12,127 9,275 -22% -24%
5 Waste generated in operations
1,258 1,044 1,083 -14% 4%
6 Business travel
388 312 312 -20% 0%
7 Employee commuting
4,531 4,218 3,784 -16% -10%
8 Upstream leased assets
9 Downstream transportation
1,363 1,149 878 -36% -24%
10 Processing of sold products
8,641 7,697 5,982 -31% -22%
11 Use of sold products
4,762,161 4,018,921 2,973,658 -38% -26%
12 End-of-life treatment of sold products
707 596 472 -33% -21%
13 Downstream leased assets
14 Franchises
15 Investments
Total GHG emissions(location-based) (tCOe)*
5,094,599 4,272,385 3,195,225 -37% -25%
Total GHG emissions (market-based) (tCOe)*
5,092,266 4,269,039 3,190,812 -37% -25%
GHG INTENSITY BASED ON NET REVENUE 2023 2024 2025
Total GHG emissions (location-based) per net revenue (tCOe/mEUR)*
5,757 5,420 4,483
Total GHG emissions (market-based) per net revenue (tCOe/mEUR)*
5,755 5,416 4,476
ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
*Comparative gures have been restated due to sector mapping revision (Scope 3.1. and Scope 3.3).
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ACCOUNTING POLICIES
SCOPE 1 EMISSIONS
Total GHG emissions, expressed in tonnes of CO₂ equiva‑
lent (tCO₂e), mainly from natural gas and propane and to
a much lower extent gas/diesel oil and kerosene. Energy
consumption is monitored and reported monthly by
invoices or building-specic meter readings or estimates
in the absence of either. The reporting of both Scope 1 and
2 follows the ESRS and the GHG Protocol Guidance. GHG
removals, carbon credits, and avoided emissions are not
used and thus not included.
For Scope 1 emissions, CO₂e conversion factors from
the UK Department for Energy Security and Net Zero are
applied across all locations. Fuel consumption of com‑
pany cars is not material and has not been included for
2023, 2024, or 2025 reporting.
SCOPE 2 EMISSIONS
Total GHG emissions, expressed in tonnes of CO₂ equiva‑
lent (tCO₂e), from purchased electricity, heat, and steam
consumed by KA. Location‑based emissions are based
on country/region-specic average CO₂e conversion fac‑
tors for dened locations retrieved from Carbon Footprint
(CaDI. (2025). Greenhouse Gas Emissions Factors for
International Grid Electricity (calculated from fuel mix).
Retrieved on 19.01.2026 from www.carbondi.com). Mar‑
ket‑based Scope 2 emissions consider contractual instru‑
ments such as energy attribute certicates and guar‑
antees of origins for renewable energy sources. For sites
without such contractual agreements, residual mix emis‑
sion factors of the corresponding country have been used
for the CO₂e emission calculation (CaDI. (2025), retrieved
on 19.01.2026 from www.carbondi.com).
SCOPE 3 EMISSIONS
Total GHG emissions, expressed in tonnes of CO₂ equiv‑
alent (tCO₂e), originating from KA’s value chain. KA has
identied four out of the fteen categories dened by
the GHG Protocol as not applicable, and calculated CO₂e
emissions for the other eleven categories applying the
GHG Protocol standards. Accounting policies are only
included for the two most material categories of Scope 3 –
category 1 and category 11.
CATEGORY 1: PURCHASED GOODS AND SERVICES
Emissions related to all spend from external suppliers,
except for investment spend and travel categories and
spend that is included in other Scope 3 categories. Pur‑
chased goods and services mainly comprise direct and
indirect purchases of raw materials and parts for prod‑
ucts and components such as electronics, mechanical
parts, services, packaging materials, etc. The total spend
is converted into CO₂e emissions using the spend-based
method, which is based on environmentally extended
input‑output (EEIO) models (estell by company Systain
Consulting). These models reect the different categories
of purchased goods and services, the volume in terms of
monetary spend, and the countries and regions that the
products and services are purchased from.
CATEGORY 11: USE OF SOLD PRODUCTS
Emissions related to the use phase of sold products are
based on the average weight of KA’s main product groups.
Where no primary weight data is available, an average
product weight was applied. These weight values enable
KA to calculate its portion of the CO₂e emissions that the
different types of vehicles that KA products are built into
emit during the average lifetime.
Therein, there are four main vehicle categories con‑
sidered: Passenger cars, trucks, buses, and sports vehi‑
cles. For each category, the assumed product lifetime is 10
years, whereas the annual mileage and average CO₂ emis‑
sions per kilometer differ per category.
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ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
The emissions rate for passenger cars is based on statistical data of the
average CO₂ emission for newly registered passenger cars in Germany
between 1998 and 2024. The emission rate used for trucks is based on
the publication “Transport & Environment (2021). Easy Ride: why the EU
truck CO₂ targets are unt for the 2020s.”
The emission rate used for buses is based on the UBA (Umweltbunde‑
samt) publication: Aktualisierung TREMOD/TREMOD‑MM und Ermit‑
tlung der Emissions‑daten des Verkehrs nach KSG im Jahr 2024. The emis‑
sion rate used for sports vehicles is based on the indirect emissions through
electricity production (German Residual Mix), retrieved from the European
Residual Mixes 2024 publication by the association of issuing bodies (AIB).
TOTAL GHG EMISSIONS
Total GHG emissions, expressed in tonnes of CO₂ equivalent (tCO₂e), are
calculated as the sum of Scope 1, 2, and 3 emissions.
TOTAL ENERGY CONSUMPTION (MWH)
Total energy includes all energy derived from fuels, electricity, district
heating, and cooling consumed by KA across all its activities. The total
energy consumption is split into fossil, nuclear, and renewable sources.
For the split of conventional purchased electricity into origin catego‑
ries fossil, nuclear, and renewable, the corresponding country’s elec‑
tricity generation sources as published by www.iea.org (retrieved as at
13.02.2025) have been used.
ENERGY INTENSITY (MWH/MEUR)
The ratio is calculated by dividing total energy consumption by total
net revenue. Total net revenue is used in the calculation. All KA revenue
relates to high-climate-impact sectors as dened by EU 2022/1288. Net
revenue used in the calculation reconciles to Group FS consolidated state‑
ment of comprehensive income, page 107.
RENEWABLE ELECTRICITY SHARE (%)
The ratio is calculated by dividing total consumption of purchased renew‑
able electricity by total electricity consumption.
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BIODIVERSITY
AND ECOSYSTEMS
ESRS E4
IMPACTS, RISKS, AND OPPORTUNITIES
Within the process to identify biodiversity and ecosystem‑related material impacts, risks, and opportunities, KA
has discussed potential impacts and the potential physical and transitional risks with internal stakeholders, and by
reecting on its own operations and upstream and downstream value chain. KA has identied its main impact and
risks related to biodiversity and ecosystems, primarily concentrated in the upstream value chain, especially for raw
materials extraction and mining.
During this process, KA has not consulted with potentially affected communities or other external parties, and no
external tools were used in the screening of this topic.
The analysis resulted in no impacts or risks directly related to KA sites. The potential impacts and risks are limited to
the upstream part of KA’s supply chain. Due to KA’s diversied supply chain, no short- or mid-term risks that could nega‑
tively affect KA’s resilience in this context have been identied. The following table summarizes KA’s main impacts, risks,
and opportunities:
IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
LAND DEGRADATION
Actual
negative
impact
Land degradation due to mining operations for raw
materials. Mining of ores (iron, copper, zinc, aluminum) all
require drastic interventions in local ecosystems and can
cause damage. The most prominent impact is in direct
proximity to mining operations, but through chemical
emissions these impacts can cover larger areas.
There is an understanding within KA
that this topic will become more of a
focus area in the long term. However, the
concrete consequences (mechanism

risks remain abstract. KA will monitor
this topic.
EXPLOITATION
Physical risk
Risks to operation/value of services (provisioning) at stake
due to progressed exploitation.
POLICIES
Currently, KA does not have a specic biodiversity policy.
However, given its high relevance in the supply chain, bio‑
diversity requirements are incorporated into KA’s supplier
policies, including the Supplier Declaration and Supplier
Sustainability Manual. See also S2 chapter, page 86 ff.
This topic was added to KA’s material topics list recently,
and there is an understanding within KA that this topic
will become more of a focus area in the long term. How‑
ever, the concrete consequences remain unspecied, and
the risks remain abstract. Due to these reasons and for the
purpose of internal resource prioritization, KA will moni‑
tor developments on this topic.
ACTIONS
KA conducted an analysis by using the WWF Risk Filter
with a focus on Key Biodiversity Areas (KBAs). KBAs are
places in the world with a high relevance for species and
their habitats. KA used the Risk Filter to screen its loca‑
tions for proximity to KBAs in 2024. There is only one
location (Ramos Arizpe, Mexico) that is directly located in
a KBA, and no material negative impacts on the surround‑
ing area were identied. Therefore, no mitigating actions
were taken in 2024 or 2025. KA will continue to analyze
potential implications and, if relevant, determine the req‑
uisite follow‑up actions in subsequent steps.
METRICS AND TARGETS
Currently, no quantitative metrics or targets have
been defined.
Loss of biodiversity plays a crucial role in limiting climate change, with ecosystems
absorbing a signicant portion of greenhouse gas emissions. Ecosystems provide vital
benets to both human society and business operations. Kongsberg Automotive (KA) has
identied biodiversity and ecosystems as a standalone material topic.
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RESOURCE USE
AND CIRCULAR ECONOMY
ESRS E5
KA’s primary input materials include different metals (e.g.
brass and steel) and plastic (e.g. PTFE and polyamide).
These materials are either directly assembled or trans‑
formed during production processes such as molding,
braiding, or stamping, depending on material type and
nal product requirements. The use of water within the
manufacturing processes is limited, and biological mate‑
rials are not used.
KA’s products mainly consist of metals and plastic in
a variety of degrees depending on the product group. The
durability of the products has to align at least with the life‑
time of the vehicle they are built into as dened by indus‑
try standards, typically 10–15 years. In general, most prod‑
uct materials are recyclable, but the actual recycling rate
is dependent on the recycling infrastructure for vehicles
in the different countries. Some products would be repair‑
able, but repairing could be less efcient than recycling
and replacing parts with new ones. The packaging of prod‑
ucts is mainly made from cardboard and plastics, which
are fully recyclable, and in some instances, products are
delivered in multi‑use boxes provided by the customers
themselves, which are then reused for future deliveries.
Effective resource and waste management practices are important to Kongsberg
Automotive (KA) and the communities in which the company operates. KA is committed
to reducing waste generation, improving waste management practices, and implementing
circularity approaches. Through these efforts and reduction strategies, the company aims
to conserve natural resources and further reduce its environmental footprint.
The materials present in KA’s waste include scrap metal,
wood, electronic waste, paper, cardboard, plastic, lubri‑
cants, and solvents.
IMPACTS, RISKS, AND OPPORTUNITIES
Within the process of identifying material impacts, risks,
and opportunities related to resource inows and out‑
ows, KA has screened its assets and activities and has
considered the results from periodical supplier assess‑
ments. KA has not consulted the affected communities in
relation to this topic. The main business functions asso‑
ciated with resource use and circular economy are devel‑
opment, manufacturing, and purchasing across all busi‑
ness units.
KA has identied its main impact, risks, and oppor‑
tunities related to resource use and the circular econ‑
omy. This topic is of relevance at all steps of the value
chain and requires collaboration with suppliers, custom‑
ers, and external parties (e.g. recycling companies). The
following table summarizes KA’s main impacts, risks,
and opportunities:
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IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
MATERIAL/RESOURCE
INFLOWS
Actual
negative
impact
Actual resource consumption for product manufacturing
(steel, aluminum, etc.) and the provision of energy
(electricity and fuels) is high.
KA has already implemented several
measures regarding waste treatment,
waste management, and production
scrap reuse. Building on these
initiatives, additional measures
and targets are to be developed. No
progress has been made toward this
in 2025.
CIRCULAR PRINCIPLES
INCLUDING GENERATED
WASTE
Transitional

Risk of regulatory non-compliance/loss of investors
(Taxonomy objective circular economy).
MATERIAL/RESOURCE
AVAILABILITY
Transitional

Financial risk due to the price and availability of raw
materials as this might cause operations to halt production.
GENERATED WASTE
Transitional

Risk of regulatory non-compliance/loss of investors.
CIRCULAR PRINCIPLES
Opportunity
Opportunity as a shift to circular economic principles
will require less raw materials (reusing/recycling waste
to reduce overall costs of production). Opportunity by
designing products with substitute materials.
POLICIES
KA’s Environmental Policy, Sustainability Policy, and the
Supplier Sustainability Manual outline the company’s
commitment to circular economy principles through
efcient material use and improved waste manage‑
ment. The Environmental and Sustainability Policies
are approved by the CEO, and the Supplier Sustainabil‑
ity Manual is approved by the Executive Vice President
Purchasing. The Environmental Policy includes the com‑
mitment to optimize resource use, including the reuse,
recycling, and recovery of materials to minimize waste.
Due to the nature of the products and business, the focus
is on prevention of waste, reduction, reusage, recycling,
and recovery. Repair, refurbishment, remanufacturing,
and repurposing are less applicable.
The Sustainability Policy includes a commitment to
produce safe and sustainable products promoting circu‑
lar business models and the use of recycled materials. The
policy content addresses the material negative impact of
material/resource inows as well as the circular princi‑
ples opportunity directly, and the other risks indirectly.
KA has policies and initiatives in place and is monitoring
resource use, but recognizes that the actions and initia‑
tives require further development. The company contin‑
ues to investigate approaches for advancing and formal‑
izing corresponding initiatives.
ACTIONS
KA maintains a continuous focus on product innovations
aimed at increasing durability, enhancing post‑use recy
‑
clability, reducing product weight, and minimizing pro‑
duction resource requirements.
All KA manufacturing locations are certied accord
‑
ing to the ISO 14001 Environmental Management Sys‑
tems standard. This standard ensures that organizations
consider the environmental impact of their work and set
appropriate targets for improved performance, which
also includes resources and waste management. Waste
KPIs and local measures are reported monthly for all
manufacturing locations and are also reviewed in formal
‑
ized monthly discussion calls.
Actions often depend on local circumstances and indi
‑
vidual local initiatives. A few initiatives in 2025 have been
continued from 2024, including the reuse of scrap, specif
‑
ically for plastics and brass, the testing of new material
solutions and
redesigns in the Research and Development
department, and an increase of recycling share through
enhanced local waste separation processes.
The waste oil reuse program of one location from
2023, which reduced virgin oil purchases by approxi‑
mately 90%, is being expanded to more of the compa‑
nies’ locations. No notable additional actions were taken
in 2025. Further actions will be determined as part of the
sustainability roadmap, including corresponding time
horizons and the resources necessary.
METRICS AND TARGETS
To track the effectiveness of KA’s actions, an annual global
target for own operations was set to reduce the Disposed
Waste Index as dened by KA. The target for 2025 was set
to ‑2% compared to 2024 target values as agreed between
internal corporate and plant level stakeholders. The tar‑
get addresses both resource inows and outows through
the minimization of waste and the promotion of recycla‑
ble resource inputs. The reduction target is not mandated
by law. The target is based on the involvement of internal
experienced stakeholders and is not based on external sci‑
entic evidence. The annual target for 2026 has already
been set as well as a reduction of ‑2% on the Disposed
Waste index compared to 2025.
PERFORMANCE ON RESOURCE INFLOWS
The overall total weight of products and technical and bio‑
logical materials used by KA amounted to 78,000 tonnes
in 2025 (2024: 84,000 tonnes). The rate of biological mate‑
rials used in 2025 is 0% (2024: 0%). The use of secondary
or recycled components includes brass that is treated by
external suppliers and then reused at the Raufoss plant.
In practice, the recyclable rate of resource inows,
metals in particular, is higher, but the corresponding data
is not available for the 2024 and 2025 reporting periods.
KA will further analyze cases to be reported in this metric
in future reporting periods.
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PERFORMANCE ON RESOURCE OUTFLOWS
The overall recyclable content of products sold in 2024 and
2025 based on weight is between 80%‑90% of total weight.
The actual recycling rate of products sold in 2024 and 2025
is dependent on the recycling infrastructure for vehicles
in the different countries at the end of the lifetime of these
products, which is at least 10‑15 years into the future.
The majority of KA’s generated waste is diverted from
disposal, and the percentage of non‑recycled waste also
decreased from 14% in 2024 to 13% in 2025. Total waste
generated decreased by ‑3.5% compared to 2024. The
share of landlled waste of total waste also decreased
from 6% to 5%, while the share of incinerated waste
stayed stable at 8%. The disposed waste index for 2025
amounted to 0.782 (2024: 0.966), depicting a decrease
of ‑19% compared to 2024. Thus, the target for 2025 was
surpassed, largely due to the lower amount of total waste
directed to disposal.
RESOURCE INFLOWS 2024* 2025
Overall total weight of products and
technical and biological materials
used during the reporting period
(tonnes)
84,039 78,241
Biological materials and biofuels used
for non-energy purposes (%)
0 0
Absolute weight of secondary reused
or recycled components (tonnes)
7,954 7,754
Secondary reused or recycled
components (%)
9% 10%
RESOURCE OUTFLOWS - WASTE
RESOURCE OUTFLOWS UNIT
2024 2025
TOTAL HAZARDOUS
NON-
HAZARDOUS
TOTAL HAZARDOUS
NON-
HAZARDOUS
Total waste generated
TONNES 6,145 414 5,731 5,933 278 5,654
Diverted from disposal
Preparation for reuse
TONNES 0 0 0 - 0 0
Recycling
TONNES 5,306 171 5,135 5,18 3 242 4,941
Other recovery operations
TONNES 0 0 0 - 0 0
Total diverted from disposal
TONNES 5,306 171 5,135 5,183 242 4,941
Directed to disposal
Incineration
TONNES 489 227 262 473 28 444

TONNES 350 16 334 27 7 8 26 9
Other disposal operations
TONNES 0 0 0 - 0 0
Total directed to disposal
TONNES 839 243 596 750 36 714
Non-recycled waste
TONNES 839 243 596 750 36 714
Percentage of non-recycled waste
% 14% 59% 10% 13% 13% 13%
Total amount of radioactive waste
TONNES 0 0 N/A 0 0 N/A
2024** 2025
Disposed Waste Index
0.966 0.782
ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
*The absolute weight of secondary reuse or recycled components (t) was restated due to
an improvement in data availability for treated and reused brass in Raufoss.
**Correction of prior year error, 0.976 was 2023 Index number, while 0.966 was 2024
Index number.
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ANNUAL REPORT 2025 // ENVIRONMENTAL INFORMATION
ACCOUNTING POLICIES
OVERALL TOTAL WEIGHT OF TECHNICAL AND
BIOLOGICAL PRODUCTS AND MATERIALS
Total weight includes all raw materials, associated pro‑
cess materials, and parts sourced into production. The
01.01.2025‑10.12.2025 period is based on actual data, the
remaining period in December is estimated. For missing
weight data elds, an average weight has been applied.
KA does not have sufcient data for estimating the weight
of production machinery inows. Thus, no weight for pro‑
duction machinery is included for 2025.
ABSOLUTE WEIGHT OF SECONDARY REUSED OR
RECYCLED COMPONENTS
The total weight of previously used or recycled materials
used in the production process. This includes the swarf
used in Norway, which is actively tracked. The base mate‑
rials used in production, such as metals, do have a recy‑
cled portion. However, this is not actively tracked inter‑
nally, and a conservative approach was applied, with
these recycled portions being excluded from this measure.
PERCENTAGE OF SECONDARY REUSED OR RECYCLED
COMPONENTS
The weight of secondary reused and recycled materials,
components, and products divided by the total weight of
all materials used.
RECYCLABLE CONTENT OF PRODUCTS SOLD
The basis for the calculation is the total weight of prod‑
ucts sold by product groups. The average recyclable rate
of the product groups, based on respective product group
experts, was applied to determine the overall weight of the
recyclable content of products sold. This was then divided
by the total weight of products sold in the reporting period.
TOTAL WASTE GENERATED
Waste collected by third‑party waste management com‑
panies and waste intended for collection. It is measured
through invoiced amounts from waste management
companies. No radioactive waste is generated by KA’s
own operations.
HAZARDOUS AND NON-HAZARDOUS WASTE DIVERTED
FROM DISPOSAL DUE TO PREPARATION FOR REUSE,
RECYCLING, OR OTHER RECOVERY OPERATIONS
All waste directed for reuse without any further process‑
ing, and waste directed for recycling or any other recovery
except for energy recovery by incineration. We estimate
the preparation for reuse and other recovery operations
to be negligible. Therefore, all diverted waste is classied
as recycled. For the split of treatment of hazardous waste,
the split of available plants’ hazardous treatment has
been applied to all locations, assuming similar treatment
across all plants.
HAZARDOUS AND NON-HAZARDOUS WASTE DIRECTED
TO DISPOSAL BY INCINERATION, LANDFILL, AND OTHER
DISPOSAL OPERATIONS
All waste directed to disposal by incineration, both with
and without energy recovery, and by landll at desig‑
nated landll sites. For the split of treatment of hazardous
waste, the split of available plants’ hazardous treatment
has been applied to all locations, assuming similar treat‑
ment across all plants.
PERCENTAGE OF NON-RECYCLED WASTE
The share of all waste directed to disposal out of total waste.
DISPOSED WASTE INDEX
The sum of the weight of the total waste disposed to land‑
ll sites and total hazardous waste regardless of whether
it is diverted or disposed of, divided by total product sales.
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The organisation places equal emphasis on continuous
growth, cultivating individual strengths, respectful col‑
laboration, acknowledging performance, and offering
exible working conditions. This holistic approach con‑
tributes to KA’s reputation as an employer of choice at all
its locations.
IMPACTS, RISKS, AND OPPORTUNITIES
To identify any impacts, risks, and opportunities related
to employees, KA’s social subject matter experts conduct
desktop analyses, informed by workforce data, policies,
databases, literature, and regulations, and conduct inter‑
nal discussions. The potential impacts on people deriving
from KA’s activities, business relationships, and products
are assessed for all workers in own operations (i.e. ESRS S1).
KA has identied its main impact, risks, and opportuni‑
ties related to its own workforce and external workers. The
following table summarizes the company’s main impacts,
risks, and opportunities, and the following pages outline
how KA manages the identied topics:
Kongsberg Automotive is rmly committed
to realizing the full potential of its global
workforce, regardless of geographical
location or organisational hierarchy.
IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
WORKING CONDITIONS
OF OWN WORKFORCE
Financial
risk
Risk of skill shortage/talent retention to keep up with
the market. Reputational damage can lead to loss of
attractiveness as employer.
> Training and development programs
and platforms (SuccessFactors,
Percipio)
> Setup of graduate program and

pipeline
> Introduction of an Employee
Engagement Survey, with regular
iteration to measure results of the
action plans
> Structured succession process to
ensure talent development and close

> Occupational Safety roadmap with
dedicated resources, targets, and
actions
COLLECTIVE
BARGAINING
Financial
risk

rights/working rights non-compliance in the supply chain.
CHILD LABOR AND
FORCED LABOR
Financial
risk

rights/working rights non-compliance in the supply chain.
EMPLOYEE
DEVELOPMENT
AND CAREER
OPPORTUNITIES
Potential
positive
impact

opportunities. KA is a technological company, and workers

As the industry is moving forward, workers need to develop
their skills or face the risk of falling behind. KA can have
positive impacts on employees by providing continuous
education, development, and career opportunities.
EMPLOYEE
DEVELOPMENT
AND CAREER
OPPORTUNITIES
Opportunity
Opportunity to create a competitive advantage by highly
trained workforce enabling a BEV shift with new products.
This will have a long-term effect on competitiveness and
successful innovation. Skilled people will be attracted if
education and training is good.
EMPLOYEE
DEVELOPMENT
AND CAREER
OPPORTUNITIES
Financial
risk
Financial risk of skill shortage/talent retention to keep up
with the market (R&D, engineering). Company can lose its
competitiveness, which can lead to market loss.
OCCUPATIONAL
ACCIDENTS, ABSENCE
DAYS, AND WORK-
RELATED PHYSICAL
AND MENTAL HEALTH
Financial
risk
Financial risks due to accidents/sickness, lost time, and
insurance costs can increase. Risk of not attracting talent
in the event of bad performance in this area.
SOCIAL INFORMATION
OWN WORKFORCE
ESRS S1
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GENERAL PROCESS FOR ENGAGING WITH OWN WORKFORCE
KA engages with its own workforce both directly and indirectly through
multiple processes to inform them about decisions and provide frequent
updates. KA uses platforms such as the KA Intranet and regular global
town hall meetings, followed by individual meetings for functions and
business units. Daily interaction with trade unions and their represen‑
tatives completes the picture. In 2025, KA started a regular engagement
survey to collect structured feedback to understand what matters most
to KA´s employees. These surveys are followed up by local action plans to
improve employee engagement. Social events are also an important factor
to promote team spirit.
GENERAL GRIEVANCE MECHANISMS
SpeakUp® is KA’s communication channel for internal and external par‑
ties to report breaches or suspected breaches of company policies, the
Code of Conduct, or other regulations.
This channel is provided by an external service provider and offers full
anonymity to employees and stakeholders reporting misconduct. The sys‑
tem enables two‑way communication and maintains global privacy and
security standards through routine audits. KA’s communication channel
enables the timely identication and correction of issues, beneting both
the company and stakeholders.
KA ensures whistleblowers who report potential violations in good
faith are protected from retaliation and any other negative consequences.
All reported concerns are received by KA’s General Counsel and EVP
HR. The General Counsel is responsible for ensuring that grievances are
investigated using the appropriate means, e.g. internal resources from
Finance, Legal, or HR, or retained external resources. The General Coun‑
sel provides quarterly reports to the CEO of all ongoing and closed mat‑
ters concerning potential Code regarding Conduct violations. Signicant
and serious matters are reported to the Board of Directors. KA’s Code of
Conduct outlines how individuals can report a concern via SpeakUp’s®
web or phone lines. The reports are treated with strict condentiality.
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to its own operations and therefore covers all members
of its workforce. The policy addresses the management
of impacts, risks, and opportunities related to working
conditions, equal treatment and opportunities for all.
This includes engaging with and respecting the labor
rights of KA’s own workforce. The policy is available for
all employees and other stakeholders on KA’s external
website. The policy is approved by the ELT and was pub‑
lished in December 2024.
ACTIONS
The Code of Conduct training is an integral part of the
onboarding process. To ensure a consistent and constant
update for all KA employees, the company rolled out a
new process in Q4 2025 which provides transparency on
training completion status. The challenges mainly related
to documentation for non‑IT users were solved.
Overall, the effectiveness of KA’s actions is assessed
through continuous engagement with its employees, and
all leaders are expected to tend to the wellbeing of their
employees. Infringements reported internally or via the
SpeakUp® hotline are systematically investigated.
KA’s entire workforce is covered by social‑protection
measures, primarily through national country legisla‑
tion and supplemented by additional company benets,
ensuring nancial security across various circumstances.
This coverage, provided mostly through public programs,
protects against the loss of income due to sickness, unem‑
ployment, employment injury, parental leave, retirement,
and acquired disability.
Kongsberg Automotive’s Code of Conduct sets the min‑
imum standard for safeguarding its employees’ rights
and promoting favorable working conditions in order to
remain an attractive workplace. As detailed in this policy,
which covers the entire internal workforce, KA operates
in accordance with all applicable laws and regulations.
KA sees limited risks of forced or compulsory labor or
child labor in its operating countries and locations due to
its geographical footprint and type of production. Never‑
theless, processes are in place to mitigate potential risks.
POLICIES
KA’s Code of Conduct is the cornerstone of its ethics
framework. It outlines expectations for behavior, deci‑
sion‑making, and interactions with stakeholders. This
includes topics such as general behavior expectations,
anti-corruption and bribery, anti-fraud, conict of inter‑
est, compliance with laws, equal treatment, anti‑harass‑
ment, data privacy, and responsible communication,
among others. More information on the Code of Conduct
can be found in the corporate culture subsection in G1
Business conduct.
KA’s Human Rights Policy outlines our commitment
to respecting human rights, including labor rights, of
people in KA’s own workforce and its value chain. It also
specically addresses human trafcking, forced or com‑
pulsory labor, and child labor. KA applies international,
best‑practice standards in circumstances where local
laws and regulations set lower standards and do not
prohibit their application. The policy applies globally
WORKING
CONDITIONS
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It is important to note that the secured income provided
during these circumstances is typically limited to a per‑
centage of the employee’s salary, with the exact percent‑
age varying by country and aligned with the norms of the
respective social security systems. Additionally, where
social security measures are limited and do not cover loss
of income, employees are safeguarded through additional
company benets, reecting KA’s commitment to their
well‑being throughout their professional and personal
lives. This specically applies to India and the US.
KA is committed to fair compensation and ensur‑
ing employees receive an adequate wage that secures a
decent living. A structured approach requires job grad‑
ing and benchmarking to assess wage alignment and
dene adequacy across the countries in which the com‑
pany operates. These initiatives are still in progress and
will serve as a foundation for determining an adequate
wage in the future. The goal is to establish a sustainable
framework that upholds fair pay for all employees in line
with company values.
TARGETS AND METRICS
The metrics for KA’s own workforce are reviewed on a reg‑
ular basis with the ELT. Global targets set in the working
conditions area are of a qualitative nature. There are no
quantitative targets for this area, but insights are used for
individual follow‑ups. Internal benchmarks and compari‑
sons with industry standards are regularly applied.
In December 2024, the Group’s Human Rights Policy
was set up and published. In 2025, potential violations
were followed up by the grievance process described
in G1.
S1-6- CHARACTERISTICS OF KA’S EMPLOYEES
EMPLOYEES BY GENDER
GENDER
NUMBER OF EMPLOYEES (HEADCOUNT)
2024 2025
MALE
2,903 2,657
FEMALE
1,691 1,570
OTHER
1 1
NOT REPORTED
326
(external workers)
277
(external workers)
TOTAL EMPLOYEES
4,921 4,505
HEADCOUNT FOR COUNTRIES WITH AT LEAST 50
EMPLOYEES REPRESENTING AT LEAST 10% OF THE TOTAL
NUMBER OF EMPLOYEES
COUNTRY
NUMBER OF EMPLOYEES (HEADCOUNT)
2024 2025
MEXICO
1,024 908
POLAND
573 521
NORWAY
537 519
HEADCOUNT FOR PERMANENT, TEMPORARY,
NON-GUARANTEED EMPLOYEES, PER GENDER
FEMALE MALE OTHER NOT DISCLOSED TOTAL
2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
NUMBER OF EMPLOYEES
1,703 1,594 3,036 2,790 1 2 181 119 4,921 4,505
NUMBER OF PERMANENT EMPLOYEES
1,660 1,554 2,869 2,628 1 1 0 0 4,550 4,183
NUMBER OF TEMPORARY EMPLOYEES
23 40 167 162 0 1 181 119 371 322
NUMBER OF FULL-TIME EMPLOYEES
1,626 1,520 2,973 2,717 1 2 180 119 4,780 4,358
NUMBER OF PART-TIME EMPLOYEES
77 72 63 55 0 0 1 0 141 127
At the end of 2025, KA’s workforce included 277 external
workers (2024: 326), representing 6% (2024: 7%) of the
total workforce. The most common type of external work‑
ers are those who cover uctuations in production capac‑
ity or bring in additional skills.
EMPLOYEE TURNOVER 2024 2025
EMPLOYEE TURNOVER IN %
33% 20%
EMPLOYEE TURNOVER
ABSOLUTE
1,477 892
The turnover in 2025 showed a downward trend, stand‑
ing at 20% (2024: 33%), including all types of reasons
for departure. Besides further announced reductions in
overhead areas which reside mainly in involuntary turn‑
over, KA recognized a postive downward trend for volun‑
tary leavers. The voluntary departure rate is constantly
reviewed and uctuates within the industry standard.
The overall number of employees decreased to com‑
ply with the market demands, and as announced improve
KA’s cost structure. The countries with the highest share
of employees remained the same.
COLLECTIVE BARGAINING, FREEDOM OF ASSOCIATION
KA respects the right of its employees to associate freely and
to join or not to join trade unions and works coun‑cils with‑
out fear of discrimination or retaliation. There is no Euro‑
pean works council in place, but rather local unions and
committees. KA cooperates with and maintains an open
and trusting relationship with trade union representatives.
In 2025, 63% (2024: 50%) of KA's internal employees
were covered by collective bargaining agreements.
> EEA countries: 69% (2024: 74%)
> Non‑EEA countries: 57% (2024: 30%)
For internal employees, KA determines their working
conditions and terms of employment based on individual
agreements and may refer to the existing collective bar‑
gaining agreements.
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COLLECTIVE BARGAINING COVERAGE FOR LOCATIONS
>50 EMPLOYEES AND >10% OF POPULATION (2024)*
SOCIAL DIALOG
COVERAGE
RATE
SOCIAL DIALOG
EMPLOYEES
– NON-EEA
WORK PL ACE
REPRESENTATION
(EEA ONLY)
0-19%
Poland Mexico Poland
20-39%
40-59%
60-79%
Norway Norway
80-100%
*Restated 2024 table to include only countries above the threshold of >50 employees and >10% of population for
comparability purposes with 2025.
COLLECTIVE BARGAINING COVERAGE FOR LOCATIONS
>50 EMPLOYEES AND >10% OF POPULATION (2025)
SOCIAL DIALOG
COVERAGE
RATE
SOCIAL DIALOG
EMPLOYEES
– NON-EEA
WORK PL ACE
REPRESENTATION
(EEA ONLY)
0-19%
Poland Poland
20-39%
40-59%
60-79%
Norway Mexico Norway
80-100%
In 2025, one incident of discrimination was reported (2024: no cases).
Further, no legal cases, nes, or penalties regarding discrimination were
brought against the company or its employees. The total number of cases
collected and tracked throughout various channels amounted to 37
(2024: 5 cases). The number of tracked cases shows an increase of aware‑
ness of and engagement with the available channels.
INCIDENTS AND COMPLAINTS UNIT 2024 2025
Number of cases reported through the channels for own
workforce
NO.
5 37

OECD Multinational Enterprises
NO.
0 0
Number of discrimination cases reported
NO.
0 1
Number of substantiated discrimination cases
NO.
0 0

NO.
0 0
ACCOUNTING POLICIES
EMPLOYEES (HEADCOUNT)
At the year end, the headcount of all employees and non‑employees is
measured (external workers or consultants who do not have a direct con‑
tract with KA but have a direct contract with an agency company).
Headcount is counted as 1 for active, short‑term leave, long‑term
leave, and suspended employees, regardless of whether they are full time
or part time. Retired or terminated employee headcount is not counted.
Employee data is based on KA’s SAP SuccessFactors system.
EMPLOYEE TURNOVER
Twelve‑month rolling turnover is reported in KA at a corporate level,
referring to the ratio of voluntary and involuntary leavers in the past 12
months divided by the average headcount of the past 12 months. Reasons
for departure are reported internally with individual sub‑categories.
COLLECTIVE BARGAINING AGREEMENTS AND WORKERS’
REPRESENTATIVES
Comprises the absolute number of different types of collective bargaining
agreements based on specic employee sub-groups.
COLLECTIVE BARGAINING COVERAGE RATE
Total headcount covered by collective bargaining agreements divided by
total headcount of KA’s internal employees.
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Kongsberg Automotive (KA) is committed to promoting a
culture in which diversity is represented. This is based on
the belief that greater diversity leads to higher performing
teams, improved decision‑making processes, and increased
global prosperity. Equal opportunities at KA start from hir‑
ing the most qualied person for the job based on their
skills, experience, and qualications across its global oper‑
ations, but also means creating a strong learning culture
within KA’s own workforce. For 2025, KA planned to revise
the training policy to support this strategic pillar of the
Human Resource strategy while continuing to apply the
principles in the existing policy. However, due to rst prior‑
ities within KA’s reorganization process being set in other
areas, this was postponed to 2026.
POLICIES
KA's Code of Conduct includes topics such as equal oppor‑
tunities, diversity, and discrimination (explicitly based
on race, color, religion, sex, age, national origin, ethnic‑
ity, disability, and sexual orientation). In 2025, the Diver‑
sity and Inclusiveness Policy was updated to protect
groups at particular risk of vulnerability within KA's own
workforce. In 2026, KA aims to implement initiatives to
develop and encourage women to take on leadership posi‑
tions to a greater extent than before, as KA has identied
room for improvement in this area.
More information on the Code of Conduct, including
implementation through corporate culture and reporting
mechanisms, can be found in G1 Business Conduct.
EQUAL
OPPORTUNITIES
KA has a well‑established remuneration policy to ensure
fair and competitive compensation practices. The policy
denes salary-setting structures, position evaluation,
and variable salary frameworks to support consistency
and alignment with market standards. The policy covers
all employees at the company and focuses on the ofce
employees. Salary structures are based on job leveling
and benchmarking, ensuring equitable pay across roles
and locations. Position evaluation follows a structured
methodology to assess job responsibilities and organi‑
zational impact. Variable pay programs are designed to
reward positive business results. The responsibilities
and procedures for implementing the policy are clearly
dened in order to ensure compliance and consistency.
The Human Resources Procedure ensures the standards
KA wants to maintain and provides guidance for the
Human Resources function.
ACTIONS
The remuneration policy and the global Human Resources
Procedure were reviewed and updated in 2025.
The company conducts annual performance and career
development reviews for approximately 98% of its ofce
employees, promoting growth and alignment with organi‑
zational goals. The process excludes employees who joined
in the last quarter, as their tenure is insufcient for mean‑
ingful evaluation. The structured assessment includes
setting targets, employee self‑assessment, manager eval‑
uation, calibration for fairness, and transparent communi‑
cation of outcomes to employees.
In recent years, KA has initiated various projects related to
improving the learning experience for employees. These
include regular campaigns to develop a learning culture
to enhance employee skills and capabilities. The external
training content is supplemented by content developed
in‑house. This is set up by the in‑house experts and fully
aligned with the needs of KA and its employees.
Currently, the company does not have global job lev‑
els dened for the entire work force. Global job levels exist
for less than 10% of the workforce. This limitation makes
it challenging to conduct a comprehensive gender pay gap
analysis, as global job levels are essential for accurate com‑
parisons and meaningful insights. However, the company
recognizes the importance of this analysis and kicked off
a structured job architecture implementation project in
2025 with expected completion in 2026.
TARGETS AND METRICS
The metrics for KA’s own workforce are reviewed on a
regular basis with the Executive Leadership Team (ELT).
Global targets in the equal opportunities area are of a
qualitative nature. There are no quantitative targets for
this area, but insights are used for individual follow‑ups.
One of the main targets for 2025 was the further devel‑
opment of the Percipio learning platform to support pro‑
fessional development, which was achieved through
enhanced employee engagement with the platform. In
2025, 483 employees have engaged with the platform, ded‑
icating more than 1,000 hours to their personal and pro‑
fessional growth. The corresponding target for 2026 is to
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further enhance employee and leadership development. To achieve this,
KA will launch various new initiatives, including a leadership development
program, summer internships, and a graduate program. KA will continue
to promote the existing platforms to support professional development.
Building career paths and developing a structured succession planning
process were also part of the 2025 initiatives.
As part of the equal pay initiative, a key target for 2026 is the establish‑
ment of a robust job architecture with globally consistent job levels dened
across the organization to increase comparability. Once job levels are avail‑
able, the company will be able to analyze the data to identify potential gaps
and take appropriate actions to mitigate any deviations, ensuring equitable
compensation practices. Nevertheless, the company has included the ratio
for male‑to‑female average pay at a group level as a preliminary metric in
order to have a general overview.
DIVERSITY METRICS
In 2025, women made up 37% of the total workforce, which remained
unchanged compared to 2024, and 0% of the ELT. This was also driven by
a signicant reduction in the size of the ELT. As a Norwegian public listed
company, KA is required to have at least 40% female representation on
the Board of Directors (the Board), excluding employee representatives.
By the end of 2025, KA’s Board (excluding employee representatives) com‑
prised ve members, two of whom were women, maintaining the ratio
from 2024 and fullling the requirement. Shown in the table is the head‑
count including employee representatives.
Female representation across the Company’s global workforce remains
strong compared to the broader automotive manufacturing sector, where
female participation is traditionally lower due to the production‑inten‑
sive nature of the industry. This positive position is particularly visible in
production roles, where female participation is comparatively high rela‑
tive to typical industry patterns. In professional and white‑collar func‑
tions, however, female representation remains lower, reecting a struc‑
ture commonly observed across the sector.
At KA, the share of female employees decreases across most countries
when moving from the overall workforce to managerial roles with direct
reports. The company has identied a potential leadership pipeline gap,
where women are well represented in the workforce but are less fre‑
quently represented in management positions. Strengthening the pro‑
gression of female employees into leadership roles therefore represents an
important opportunity for the company.
GENDER (ONLY WITHIN KA)
2024 2025
HEADCOUNT % HEADCOUNT %
TOTAL INTERNAL EMPLOYEES 4,595 100% 4,228 100%
F 1,691 37% 1,570 37%
M 2,903 63% 2,657 63%
U 1 0% 1 0%
EXECUTIVE LEADERSHIP TEAM 10 100% 5 100%
F 1 10% 0 0%
M 9 90% 5 100%
BOARD OF DIRECTORS 8 100% 8 100%
F 3 38% 4 50%
M 5 62% 4 50%
In 2025, the majority of KA’s own workforce was in the age group between
30 and 50 years. To ensure that KA provides equal treatment and opportu‑
nities for all, these gures are included in the management reviews as well.

INTERNAL EMPLOYEES)
2024 2025
HEADCOUNT % HEADCOUNT %
<30 765 17% 673 16%
30-50 2,457 53% 2,231 53%
 1,373 30% 1,324 31%
TOTAL 4,595 100% 4,228 100%
82
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83
REMUNERATION METRICS
UNIT 2024 2025
Unadjusted gender pay gap % 69% 70%
Ratio of annualized base pay to
highest-paid individual
TIMES 17 20
The gender pay gap at the group level is 70% and reects
the composition of KA’s workforce and industry dynam‑
ics. This gap was slightly increased by 1% compared to
the previous year. The gap is inuenced by the distri‑
bution of men and women across different roles, with a
higher proportion of men in senior and technical posi‑
tions, as well as broader industry trends and career
progression patterns. As mentioned earlier, the for‑
mal job leveling system is under development; for this
reason, this gure should be considered a rough esti‑
mation rather than a precise measure, nor is it a direct
indication of unequal pay for equal work. The company
remains committed to fostering a more balanced work‑
force through targeted initiatives that support gender
equity and career advancement.
The ratio of the highest‑paid individual’s base salary
to the median base salary of all employees is 20 compared
to 17 in 2024. This reects the company’s diverse geo‑
graphical footprint. As a European‑based company with
manufacturing operations across multiple regions, the
overall salary distribution is inuenced by regional pay
structures and cost‑of‑living differences. The nature of
the business, with a signicant portion of the workforce
in manufacturing roles, also impacts the median salary
level. This ratio should be viewed in the context of these
factors, which shape the company’s compensation struc‑
ture across different markets and job functions.
ACCOUNTING POLICIES
GENDER IN LEADERSHIP AND SENIOR
LEADERSHIP POSITIONS
At KA, senior management positions refer to those who
report directly to the CEO and cover C‑level positions or
Executive Vice President (EVP) areas.
GENDER PAY GAP
The gender pay gap is reected on a full-time basis and
calculated as the difference between the average annu‑
alized base salary for men and women divided by the
average annualized base salary for men and expressed
as a percentage of the average annualized base salary for
men. All internal employees except internships and work‑
ing students in all countries have been included in this
metric. The calculation is based on annual base salary,
excluding xed allowances and variable components due
to limited global data availability.
RATIO OF ANNUALIZED BASE PAY TO
HIGHEST-PAID INDIVIDUAL
The ratio between the highest‑paid individual’s annual
base salary and the median annual base salary for all
other employees is reected on a full-time basis and cal‑
culated by identifying the highest annualized base sal‑
ary (i.e. the highest paid individual) and calculating the
median base salary excluding it. The calculation is based
on annual base salary, excluding xed and variable com‑
ponents due to limited global data availability.
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Kongsberg Automotive (KA) prioritizes the health, safety,
and wellbeing of its employees. The company has imple‑
mented policies and programs to manage risk, prevent
accidents and injuries, and comply with relevant health
and safety regulations. KA continually strives to improve
its safety record, reduce employee injuries, and avoid acci‑
dents and safety violations.
KA’S APPROACH
Safety First is KA’s company‑wide initiative to develop a
value‑based and sustainable health and safety culture,
supporting the goal of zero accidents. KA is committed
to conducting its business responsibly, adhering to appli‑
cable laws and regulations while following established
company policies and procedures.
POLICIES
KA has established a policy for Health, Safety, and Envi‑
ronment (HSE), setting the standards for how the com‑
pany protects and ensures the wellbeing of its employees
and the sustainability of its operations. The policy cov‑
ers all KA employees and facilities. The company aims to
incorporate health, safety, and environment consider‑
ations in all its decisions and actions, as workplace key
performance indicators ensure the safety and wellbe‑
ing of KA’s employees. The company complies with vari‑
ous ISO standards, including ISO 9001 (quality manage‑
ment systems), ISO 14001 (environmental management
systems), and ISO 45001 (occupational health and safety
management systems), to maintain a robust management
HEALTH
AND SAFETY
system that aligns with international best practices.
In 2025, KA assessed the feasibility of developing a
global internal mental wellbeing policy for all employees.
However, during the process, it became clear that a global
policy does not easily capture all the local requirements
and that the existing local policies already address the
topic more appropriately.
ACTIONS
KA’s actions are recurring on an annual basis. KPIs and
targets are reviewed and set based on the prior year
performance.
KA’s internal management system contains an exten‑
sive set of procedures that ensure a safe and healthy work
environment for everyone in its facilities, with a special
focus on employees and processes in production environ‑
ments with a higher risk exposure. An important element
of the system is to perform risk assessments. New in 2025
is the introduction of a monthly review covering all new
and existing activities in KA’s facilities and work areas.
The company employs a risk management hierarchy of
control, ranging from risk elimination to managing the
risk using appropriate personal protective equipment. All
employees may report work‑related hazards through the
Near Miss Reporting Process, tracked monthly as a KPI at
both facility and corporate levels. Local hazard identica‑
tion training supports this reporting process.
Each manufacturing facility sets KPIs each year to
measure its performance. These KPIs include the num‑
ber of accidents, planned and completed risk assessments,
planned and completed training courses, rst aid cases,
and near misses recorded and closed. All facilities partici‑
pate in monthly green card calls to review KPIs and share
best‑practice opportunities. The facilities also perform
an annual scored self‑assessment against the require‑
ments of KA’s internal management system. Engagement
between the corporate teams and manufacturing facilities
is an essential part of KA’s ongoing performance improve‑
ments. Monthly meetings are held with the facilities to dis‑
cuss any issues they are facing and the solutions they have
implemented to address other issues. These meetings form
a key part of KA’s engagement and sharing of best practices.
All external visitors and contractors to any KA man‑
ufacturing facility must comply with a sign‑in procedure
and align contractor packs to ensure full HSE awareness
and compliance for each location visited. High‑risk top‑
ics, i.e. hazardous materials, are covered with extensive
procedures for training, handling, labeling, and storage
as well as transportation and inspection audits. All local
legal compliance requirements are followed.
All of KA’s manufacturing facilities have their own
health and safety committees, comprising employees
from different functions in the facility, who contribute
to the continuous improvement of their health and safety
management systems. The health and safety committees
hold meetings with employee participation to ensure the
evaluation and development of the HSE policies and man‑
agement systems. The committees are responsible for
interacting with all levels of the organization. They are
tasked with examining any incidents, accidents, rst aid
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cases, and reported near misses or damages. They also
review the risk assessment and training plans to ensure
that all employees are on schedule and assess any unre‑
solved or escalated matters. Additionally, the committee
is authorized to halt any hazardous processes. KA’s HSE
organization provides induction training on all aspects
of health and safety, as well as the tools and processes
in use, to all new dedicated health and safety employees
and management employees joining KA’s manufactur‑
ing facilities. The health and safety representatives in the
facilities provide training on KA’s management system to
all new employees as well as refresher training to existing
employees on a regular basis throughout the year. A full
training plan is issued each year through KA’s e‑learning
tool. Training KPIs are set for all facilities to ensure the
roll‑out of relevant training topics. Objectives and plans
for cthe ontinuous improvement of HSE performance
were set and communicated in early 2025. Key perfor‑
mance indicators were reviewed regularly, and adjust‑
ments were made immediately when needed.
METRICS AND TARGETS
For the year 2025, there were a total of eight recorded
work‑related accidents, all of which involved KA’s own
employees. Four accidents resulted in lost time, while
four incidents required medical treatment (stitches,
prescription medication), with employees returning to
work afterwards. The overall number of accidents has
decreased by four, compared to 2024, with lost days
increasing to 285 from 158. The number of plants that
remained accident‑free in 2025 remained stable at 17.
The incident rate decreased from 1.36 per million
hours worked in 2024 to 0.99 per million hours worked in
2025. KA’s 2026 target is to reduce the incident rate below
0.90. The company has made signicant progress in rais‑
ing awareness and ensuring robust reporting, as demon‑
strated in 2024 and 2025.
In 2024 and 2025, there were no reported cases of
work‑related ill health or occupational diseases affecting
the incident rate, and no work‑related fatalities.
KA drives its internal safety roadmap with HSE KPIs
to develop an even stronger safety culture. These internal
measures are reviewed monthly to strengthen and ensure
continuous improvement for all operational sites. KA’s KPIs
cover all of its operations worldwide, including employees
and contractors. The company’s workforce within manu‑
facturing locations is engaged with formal joint manage‑
ment worker health and safety committees, and all of KA’s
operational sites conduct employee health and safety risk
assessments in line with KA’s minimum requirements.
The following table summarizes the number of audits
with a focus on health, safety, and environment. Internal
audits were conducted by KA’s own workforce and fol‑
lowed internal standards and guidelines. External audits
were conducted by third‑party audit companies and fol‑
lowed the ISO 14001 (environmental management sys‑
tems) and ISO 45001 (occupational health and safety
management systems) standards.
The number of internal audits performed is a combi‑
nation of risk assessements and audits. In 2025, the num‑
ber of risk assessments has increased compared to 2024.
In 2025, the number of external audits on health, safety,
and environmental topics performed is similar to 2024.
The small decrease is due to the three‑year cycle scoping
for entities.
HEALTH, SAFETY, AND
ENVIRONMENTAL AUDITS
2024 2025
Internal audits performed 500 62 8
External audits performed 42 40
Total of internal audits performed 542 668
ACCOUNTING POLICIES (FOR HEALTH & SAFETY)
WORK-RELATED ACCIDENTS
Number of work‑related accidents with or without lost
days. Incidents are included if they either required med‑
ical attention, resulted in work restrictions, resulted in
loss of consciousness, or resulted in lost time (absence).
This metric includes all employees (full‑time, part‑time,
and temporary workers).
WORK-RELATED ILL HEALTH OR OCCUPATIONAL DISEASES
Number of occupational illness cases resulting from
repeated exposure to a physical hazard such as a repet‑
itive strain or cumulative trauma injury. Incidents are
included if they are diagnosed by a treating physician or
licensed medical professional and are deemed work‑re‑
lated and resulted in either absences from work, work
restrictions, or a permanent disability. This metric
includes all employees (full‑time, part‑time, and tempo‑
rary workers).
INCIDENT RATE
All work‑related accidents and work‑related ill health cases
per 1,000,000 hours worked within the year.
LOST DAYS
Total number of days lost due to work‑related accidents
that resulted in an absence of more than one day. The day
on which the case is reported is not counted.
WORK-RELATED FATALITIES
Work‑related accidents resulting in the death of an
employee. This metric includes all employees (full‑time,
part‑time, and temporary workers).
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KA’S UPSTREAM VALUE CHAIN
Kongsberg Automotive (KA) has a signicant global foot‑
print through its 1,465 (2024: 1,475) direct material sup‑
pliers in 40 (2024: 38) countries and 5,520 (2024: 5,588)
indirect suppliers in 44 countries (2024: 43). With the
strategic aim to work with global and local suppliers and
build a diverse supplier portfolio, in 2025, KA had a foot‑
print of 493 (520 in 2024) direct material suppliers in the
Americas, 309 (272 in 2024) suppliers in the Asia Pacic
region, and 663 (683 in 2024) suppliers in Europe.
KA’s strategic supplier portfolio aims to balance global
and local suppliers across diverse business sizes, from
micro to large enterprises. Local suppliers account for
88% of direct material purchase spend (88% in 2024) and
98% of indirect spend (97% in 2024). Through local pur‑
chasing, KA proudly contributes to regional economic
development and employment while reducing envi‑
ronmental impact. Local suppliers are dened as those
located in the same geographical region (the Americas,
Europe, and Asia-Pacic). KA’s medium- and long-term
goal is to maintain these local sourcing percentages, sup‑
porting both regional development and global growth.
In 2025, approximately 7% of suppliers (271 direct
material and 304 indirect suppliers) account for 80%
of the annual purchasing spend (2024: 7% of suppliers
account for 80% of annual purchasing spend, 300 direct
material suppliers and 200 indirect suppliers).
WORKERS IN
THE VALUE CHAIN
ESRS S2
>1,400
DIRECT SUPPLIERS
DIRECT SUPPLIERS
INDIRECT SUPPLIERS
OUR SUPPLY CHAINS AT A GLANCE
~5,500
INDIRECT SUPPLIERS
44
COUNTRIES
40
COUNTRIES
TOTAL ANNUAL DIRECT MATERIAL
PURCHASING PER REGION
TOTAL ANNUAL INDIRECT MATERIAL
PURCHASING PER REGION
EMEA (EUROPE, MIDDLE EAST,
AND AFRICA)
58.5% of total annual purchase spend,
of which 93.3% is purchased locally
THE AMERICAS
27.3% of total annual purchase spend,
of which 77.8% is purchased locally
APAC (ASIA-PACIFIC)
14.3% of total annual purchase spend,
of which 96.3% is purchased locally
EMEA (EUROPE, MIDDLE EAST,
AND AFRICA)
65.4% of total annual purchase spend,
of which 99% is purchased locally
THE AMERICAS
27.4% of total annual purchase spend,
of which 96.7% is purchased locally
APAC (ASIA-PACIFIC)
7.3% of total annual purchase spend,
of which 99.9% is purchased locally
27.3%
THE AMERICAS
EMEA
APAC
58.5%
14.3%
27.4%
THE AMERICAS
65.4%
EMEA
7.3%
APAC
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IMPACTS, RISKS, AND OPPORTUNITIES
KA has identied its main impacts, risks, and opportunities
related to workers in the value chain. Material IROs were
identied for the upstream value chain. KA impacts workers
in its upstream supply chain both directly and indirectly.
Direct impacts of KA includes the workforce and non‑em‑
ployees of manufacturing suppliers (Tier 1 direct material
suppliers of KA, material), the workforce and non‑employ‑
ees of service providers and non‑product‑related manufac‑
turing suppliers or distributors (Tier 1 indirect suppliers of
KA, material), and contractors and one‑time suppliers (not
considered material). Indirect impact of KA includes the
workforce and non‑employees of sub‑suppliers of KA’s Tier
1 suppliers (Tier 2+ suppliers). KA does not have any joint
venture or special purpose vehicles.
Further analysis and segmentation are planned to
identify particularly vulnerable workers. These may
include workers who:
> Are involved in the mining of conict minerals in
high‑risk areas (such as CAHRAs and the Democratic
Republic of the Congo and surrounding areas), which
is a systematic global challenge for the whole indus‑
try and electronics especially. In these cases, KA works
through its yearly conict mineral due diligence
processes and its RMI membership to mitigate risks
(see later)
> Are exposed to elevated health and safety risks through
chemical handling or machine operation that requires
comprehensive occupational health and safety man‑
agement systems and heightened awareness
> May be vulnerable due to local, country-specic, or
organizational factors (including cultural traditions
and human rights awareness), such as migrant work‑
ers and women. KA addresses these vulnerabilities
through risk assessments and awareness programs,
ensuring responsible governance for all identied vul‑
nerable groups.
The table below summarizes the company’s main impacts,
risks, and opportunities, and the following pages outline
how KA manages the identied topics:
IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
INADEQUATE WAGES IN
PRODUCING COUNTRIES
Potential
negative
impact
Possible negative impacts through unintentional
contribution to: Excessive working hours or low and non-

> Supplier sustainability risk
assessment contains working
conditions as focus area
> Benchmark tools of costs of
workforce
> Awareness raising with buyers and
within the supply chain
> On-site sustainability supplier audits
focusing on working conditions
> Resilience
OCCUPATIONAL
ACCIDENTS AND WORK-
RELATED PHYSICAL
AND MENTAL HEALTH
Potential
negative
impact
Possible negative impacts through unintentional
contribution to: Limitations of social dialog, freedom of
association, or collective bargaining, poor health and
safety awareness.
COLLECTIVE
BARGAINING
Financial
risk

rights/working rights non-compliance in the supply chain.
OCCUPATIONAL
ACCIDENTS, ABSENCE
DAYS, AND WORK-
RELATED PHYSICAL
AND MENTAL HEALTH
Financial
risk

rights/working rights non-compliance in the supply chain.
EMPLOYEE
DEVELOPMENT
AND CAREER
OPPORTUNITIES
Financial
risk
Financial risk of skill shortage/talent retention to keep up
with the market (R&D, engineering). Company can lose its
competitiveness, which can lead to market loss.
> Awareness raising and including equal
treatment, learning and development,
and inclusivity in supplier
sustainability risk assessments and
on-site audits
> Resilience
EMPLOYEE
DEVELOPMENT
AND CAREER
OPPORTUNITIES
Opportunity
Opportunity to create a competitive advantage by highly
trained workforce enabling a battery-electric vehicle shift
with new products. Long-term effect on competitiveness
and successful innovation. Skilled people will be attracted
if education and training is good.
FORCED LABOR
Potential
negative
impact
Possible negative impact through unintentional
contribution during mineral sourcing: Forced or child labor.
> Responsible mineral sourcing due
diligence process and yearly data
collection (with a special focus on
smelters of concern regarding tin,
tungsten, tantalum, gold, mica,
cobalt, copper, graphite, lithium, and
nickel sources)
> Country ESG supply chain risk and
natural hazard risk pre-evaluation of
suppliers
> Awareness raising and including
human rights and climate adaptation
in supplier sustainability risk
assessment
CHILD LABOR AND
FORCED LABOR
Financial
risk

rights/working rights non-compliance in the supply chain.
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The identied material impacts, risks, and opportunities
(IROs) affect the entire automotive industry systemically
rather than as individual incidents. Beyond corporate
measures, KA incorporates broader initiatives for effec‑
tive risk identication and prevention, including Respon‑
sible Minerals Initiative, UN Global Compact, Interna‑
tional Labor Organization (ILO), Drive Sustainability, and
Automotive Industry Action Group (AIAG) research and
guidance. While no widespread or systematic negative
impacts have been identied in KA’s supply chain, due dil‑
igence focuses on individual supplier assessment, devel‑
opment, and category strategies. Country-specic ESG
supply chain risk scores (from CountryRisk.io) are incor‑
porated in evaluations, particularly for regions with ele‑
vated human rights risk exposure. Individual incidents
may nevertheless impact human rights in the supply
chain, making supplier awareness a key focus.
KA’S APPROACH AND POLICIES
To support a just transition to greener mobility, KA expects
the companies it works with to run their businesses and
supply chains in compliance with national laws and with
respect for international labor and human rights standards.
KA is committed to reducing human rights violation risks
throughout its value chain while supporting economic
transition through decent job creation in the automotive
and manufacturing sectors. Decent employment includes:
> Fair wages
> Job security
> Safe working conditions
> Freedom of expression
> Protected trade union rights
Corporate and supply chain policies outline KA’s human
rights and labor rights commitments, applying to all sup‑
pliers and value chain workers. Specic due diligence pro‑
cesses, such as conict minerals reporting, target rele‑
vant supplier segments. For example, yearly reporting on
potential conict minerals only covers suppliers that use
the minerals. To facilitate implementation, supplier doc‑
umentations, risk assessment platforms, and validation
processes are available in a wide range of languages. This
ensures effective global supplier communication.
POLICIES AND REQUIREMENTS
Suppliers are required to adhere to the same high stan‑
dards as KA does itself. The relevant principles and
requirements for the supply chain are set out and com‑
municated in KA’s Supplier Declaration (with reference to
the more detailed Supplier Sustainability Manual), which
summarizes the most important environmental, social,
and ethical requirements for suppliers and, in turn, their
suppliers (see the specic topics below). These require‑
ments were updated in 2024 to include new legal and
industrial requirements and standards, especially regard‑
ing human and labor rights.
KA has a Responsible Minerals Sourcing Position State‑
ment Statement, which was updated in 2025 and assesses
suppliers’ compliance with the OECD Due Diligence Guid‑
ance for Responsible Supply Chains of Minerals from Con‑
ict-Affected and High-Risk Areas. The Supplier Quality
Manual also specically refers to the regulations on the
Registration, Evaluation, Authorization, and Restriction
of Chemicals (REACH). Due to the stricter requirements as
regards the respecting of human rights, KA also introduced
a separate Human Rights Policy which applies to its busi‑
ness partners and workers in the value chain. All purchase
orders generated through SAP and Jaggaer systems contain
explicit references to sustainability requirements, comple‑
menting the partial references in KA’s General Purchasing
Conditions and Framework Agreements.
KA reviews these documents through memberships
and benchmarking approximately every two years or as
needed, updating policies accordingly.
These documents and requirements align with the rele‑
vant standards and guidelines:
> UN Universal Declaration of Human Rights
> UN Global Compact and Guiding Principles for Busi‑
ness and Human Rights
> OECD guidelines for multinational enterprises and
due diligence guidance for responsible supply chains
of minerals
> Declaration on Fundamental Principles and
Rights at Work adopted by ILO (International
Labour Organization)
> Responsible Business Alliance RMI guidelines
> Global Automotive Sustainability Guiding Princi‑
ples and reporting standards as GRI and ESRS and the
following legal requirements: Norwegian (Transpar‑
ency Act); Canadian Forced and Child Labor in Supply
Chains Act; US Uyghur Forced Labour Prevention Act
(UFLPA), UK Modern Slavery Act, EU Corporate Sus‑
tainability Due Diligence Directive (CSDDD), German
Supply Chain Act (LkSG), and EU Corporate Sustain‑
ability Reporting Directive (CSRD) as well as other
relevant environmental, social, or ethical legislation or
voluntary agreements.
KA’s sustainability supplier requirements and risk assess‑
ment areas cover the most important human and labor
rights topics from standards as well as material impacts
and risks:
> Company management including responsibilities,
commitments, the Code of Conduct, and grievance
mechanisms
> Governance, management system, certications, and
training on:
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» Human rights and working conditions
» Health and safety
» Business ethics
» Environment
» Responsible supply chain management
> Responsible sourcing of raw materials
KA’s policies and requirements statements outline sup‑
plier engagement practices and the requisite collabora‑
tion tools and processes for improving sustainability and
human rights standards in the value chain, including con‑
sequences for non‑compliance. KA’s policies will be imple‑
mented at all its Tier 1 suppliers, with exceptions for low‑
risk categories such as one‑time vendors. The company also
identied a minor gap with regard to customer-directed
suppliers. KA will review the responsibility and share doc‑
umentation with clients to close the gap.
KA’s requirements towards suppliers are reviewed
regularly and in 2025, a subsite was created for suppliers
on the external company website to clearly summarize all
sustainability‑related documents. This enables actual and
potential suppliers to receive more structured information
about KA’s requirements in a timely manner and makes
them publicly available (https://www.kongsbergautomo‑
tive.com/for_suppliers/sustainability‑our‑suppliers/).
PROCESSES, ACTIONS, AND METRICS
KA’S DUE DILIGENCE PROCESS AND RISK PRE-ASSESSMENT
KA’s supplier engagement and management process is based on its corporate human rights due
diligence approach described in the diagram below.
HUMAN RIGHTS
DUE DILIGENCE AT
KONGSBERG
AUTOMOTIVE
DECLARATION OF PRINCIPLES
> Code of Conduct
> Supplier Sustainability Manual,
Supplier Declaration
> Human Rights Policy
> Responsible Minerals Sourcing
Position Statement
> Purchase orders, framework
agreements, and the company’s
website
IMPACT AND RISK ASSESSMENT
> 
supply chain score assessments
> Identifying potential risk groups and
sites
> Analysis of existing processes, rules,
and tools
> Double materiality assessment incl.
impact on human rights and risk
assessment
> Business risk analysis
> Supplier sustainability risk
assessment
RISK MANAGEMENT PROCESSES
AND TOOLS
> Legal compliance requirements
from local laws and regulations with
respect to international standards
> 
development plans
> Supplier on-site sustainability audits
> Training and raising awareness
among Purchasing staff and
suppliers
> Memberships and initiatives
> Material compliance due diligence

REACH/RohS, etc.)
MONITORING, WHISTLEBLOWING,
AND GRIEVANCE MECHANISMS
> SpeakUp® line
> Central and local grievance and
complaint mechanism
> Business reviews
> Analysis of data and risk assessment
results
> Benchmark and desktop research
> Joining initiatives
> Customer audit and assurance
processes
REPORTING AND
COMMUNICATION
> Self-assessment
> Customer assessment (SAQ,
EcoVadis, customer
questionnaires)
> Annual report
> Accountability reports e.g.
Transparency Act report,
Modern Slavery Statement, etc.
> Sustainability report
> Website
CORRECTIVE ACTION PLAN AND
DEVELOPMENT
> Sustainability/ESG Committee
evaluation
> Appropriate corrective actions
to prevent or minimize risks and
negative impacts
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Within the Purchasing department, all jobs have a responsibility and common ESG target,
covering human rights risk prevention and mitigation strategies. The Sustainable Purchasing
team supports supplier assessment and engagement efforts performed by buyers and other
members of the Governance team. New and updated policies are validated and approved by
these committees. Due to ongoing organizational changes in 2025/26, the governance for sus‑
tainable purchasing is under revision, and new responsibilities for purchasing and sustain‑
ability within purchasing will be set up in 2026.
KA’s supplier sustainability risk management builds on three levels. This approach
provides KA with insights into risk exposures and enables it to prevent and effectively
mitigate risks concerning human rights, the environment, and ethics.
All suppliers are pre-assessed with a country ESG supply chain risk
score. Suppliers with high spend/impact and/or high-risk exposure need
to complete an externally validated, evidence-based self-assessment
questionnaire. This is also mandatory for all new suppliers and sourcing
board decisions for new projects.
Suppliers get a sustainability risk score based on the score received in the self-
assessment. If the score is medium or high, they need to develop a corrective
action plan and implement it within an agreed time frame. KA provides one-to-one
development support on demand and proactively for potentially high-risk suppliers.
SUPPLIER DEVELOPMENT
THIRD-PARTY
ON-SITE AUDIT
EXTERNALLY VALIDATED
SELF-ASSESSMENT
COUNTRY
RISK ASSESSMENT
Suppliers who remain with a high sustainability risk exposure need to cooperate

they need to develop a corrective action plan and implement it within an agreed
time frame. If critical non-conformities are found, a follow-up audit may
be conducted.
RISK ASSESSMENT AND MANAGEMENT APPROACH
Requirements for acknowledgment and acceptance of human
rights and sustainability requirements - supplier declaration
I. The ESG‑related risks associated with the supplier’s country of origin are analyzed.
II. Suppliers are expected to share or conduct an evidence‑based, externally validated self‑
assessment questionnaire covering KA’s required topics and issues.
III. KA conducts on‑site sustainability audits, performed by independent third‑party auditors,
with follow‑up audits conducted by second‑party auditors
In 2025, 90% (2024: 86%) of direct material spend was with suppliers who have signed the
Supplier Declaration. 10% (2024: 9%) of indirect material suppliers have signed the Declara‑
tion. KA is reviewing possible actions to increase the acceptance rate in 2026.
HUMAN RIGHTS AND SUSTAINABILITY DUE DILIGENCE WITHIN THE SUPPLY CHAIN AT KONGSBERG AUTOMOTIVE
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Most of KA’s suppliers are located in low‑risk countries (level A). Level B represents
medium risk, and level C is high risk based on the previously mentioned CountryRisk.
io’s Supply Chain Risk Score. In case of suppliers in high‑risk countries (e.g. Turkey and
Bosnia and Herzegovina in 2025), KA identies the respective risks and takes steps to
improve performance. The share of high‑risk suppliers decreased as India and Vietnam
were reclassied as medium risk by the globally used database and methodology.
INDIRECT SUPPLIERS’ COUNTRY RISK SCORE
BY SPEND
DIRECT SUPPLIERS’ COUNTRY RISK SCORE
BY SPEND
LEVEL A
(LOW RISK)
LEVEL B
(MEDIUM RISK)
LEVEL C
(HIGH RISK)
81.98%
0.98%
17.05%
80.97%
0.07%
18.96%
widely used throughout the automotive industry. It collects existing practices and docu‑
ments information on governance and management approaches of suppliers in the seven
areas presented above. In 2025, SAQ 5.0 was introduced with improvements designed to
make the assessment more adaptable and modular for small and micro‑sized organiza‑
tions. KA also accepts alternative valid risk assessments of suppliers provided, if suppli‑
ers can demonstrate a sound methodology and that the report comprehensively covers
all important topics, including the sharing of detailed assessment results (e.g. EcoVadis).
This allows KA to identify risks resulting from gaps in suppliers’ existing governance and
management approaches, and to engage with suppliers on their performance. By the end
of 2025, 469 suppliers, covering 90% (2024: 88%) of KA’s yearly direct material purchas‑
ing spend, completed the questionnaire or provided an equivalent, valid sustainability
risk assessment. The information and related evidence are validated by an independent
third party. After assessing their questionnaires, all suppliers receive feedback and rec‑
ommendations on how to improve their governance and management systems, which
helps them in setting up effective plans for corrective action. Suppliers whose assessment
scores indicate a high sustainability risk receive further recommendations. KA priori‑
tizes suppliers with low sustainability risks, including those related to human rights. All
suppliers whose assessment scores indicate medium to high risks are supported in their
development. As KA’s supplier sustainability program expands, the company aims to pro‑
vide tailored support for suppliers as well as other training materials and events.
Selected suppliers (potential high risk or awarded for new business) that do not sign
the Supplier Declaration or fail to undertake the external sustainability risk assessment
are invited to a dialog with KA’s purchasing colleagues to determine how the supplier
can improve. KA seeks to replace suppliers that do not comply with the expected stan‑
dards despite improvement measures. KA’s purchasing function is working diligently to
increase the response rates and performance of suppliers. A potential risk for incorrect or
inaccurate reporting or ineffective implementation persists. KA intends to initiate addi‑
tional on‑site audits of selected suppliers, focusing on locations with high‑risk potential
and preferred suppliers with development needs.
Where appropriate, KA conducts third‑party on‑site sustainability audits to ensure
the effective implementation of sustainability‑related management systems and perfor‑
mance in accordance with KA’s requirements. The following diagram summarizes the
process steps and topics. The audits also allow for the validation of self‑assessment results
and provide additional insights into risk assessment gaps. In 2025, KA commissioned ve
(2024: eight) on-site rst audits and three online follow-up audits (2024: one), all con‑
ducted by a third party.
SUPPLIER COMPLIANCE RISK ASSESSMENT AND AUDITS
KA requires direct materials suppliers to report on their governance and management
practices with regard to the environmental, social, and ethical issues detailed above,
reecting KA’s requirements.
KA expects its supplier to have an effective policy and management system in place to
identify and manage any material environmental, social, and ethical risk as well as their per‑
formance when it comes to offering training for their workforce on relevant issues and com‑
municating the necessary requirements to their own suppliers. This information is collected
from suppliers through a standardized, evidence‑based self‑assessment questionnaire.
The Sustainability Assessment Questionnaire (SAQ on the Supplier Assurance plat‑
form) has been developed and promoted by CSR Europe and Drive Sustainability, and is
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SUPPLIER AUDITS ON BEHALF OF KONGSBERG AUTOMOTIVE REGARDING HUMAN RIGHTS AND SUSTAINABILITY
REQUIREMENTS AND TOPICS
> Compliance and governance: Legal and ethical
compliance, grievance, whistleblowing, business
conduct, nes, anti-corruption
> Health and safety: Policies, processes, impacts and
risks, PPE, training, health checks, hazards, accidents,
prevention, rst aid
> Environment: policies, processes, impacts and risks,
training, GHG, energy eciency, waste, chemicals,
recycling, renewables
> Human and labor rights: Policies, processes, impacts
and risks, training, recruitment, tracking, age, working
hours, wages and benets, trade unions, collective
bargaining, harassment, equal treatment, living wage
> Responsible sourcing: Requirements and policies,
impacts and risks, conict minerals due diligence,
supplier’s adherence
WORKERS
INTERVIEW
MANAGEMENT
INTERVIEW
DOCUMENT REVIEW
OPENING MEETINGSCHEDULING PREPARATION
PRE-CHECKLIST FOR
SELF-ASSESSMENT
IMPLEMENTATION
AND DEVELOPMENT
QUALITY ASSURANCE
CORRECTIVE ACTION PLAN
PREPARATION AND RELEASE
CLOSING MEETING
VALIDATING FINDINGS
CLOSING MEETING
VALIDATING FINDINGS
The decision‑making process of KA’s Sourcing Board requires that all new
direct material suppliers or newly awarded suppliers have signed the Sup‑
plier Sustainability Declaration and perform the external Supplier Sus‑
tainability Risk Assessment. As part of the Supplier Sustainability Risk
Assessment, KA screens new suppliers regarding environmental, social
(incl. human and labor rights), and ethical issues.
In 2024, identied non-conformities with this internal rule led the
Sustainable Purchasing team and Purchasing Support Ofce to establish
a new data‑tracking system for monitoring effectiveness and enabling
development actions. As a result of this step, transparency for monitoring
has improved; however, KA still needs to ensure that suppliers do not pass
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TOUR
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the sourcing board without a low or medium‑risk exter‑
nal sustainability assessment.
Key ndings from human and labor rights risk assess‑
ments and audits relate to the following areas:
> Missing formal human and labor rights policies and
commitments are widespread in KA’s complex global
supply chain, due to the following factors:
» Suppliers in developed countries (e.g. Germany and
the US) often lack formal written commitments
to human and labor rights, as these are compre‑
hensively covered by local legislation. While these
suppliers present minimal actual risk, they need to
formalize their existing practices and principles in
documentation. (widespread, systematic)
» Many of KA’s micro and small suppliers lack for‑
malized business conduct documentation due to
their size. While these suppliers generally present
minimal human rights risk, they need to formalize
their commitments and develop auditable processes
accordingly. (widespread, systematic)
» Some suppliers lack the requisite policies due to
insufcient awareness of their importance or the
requirements, potentially posing human rights risks
to KA. The company addresses this through targeted
awareness programs and individual supplier devel‑
opment. (individual incidents)
> Missing human rights management system: Many
suppliers have existing processes, practices, and prin‑
ciples but lack systematic presentation. KA encour‑
ages the implementation of PDCA‑based manage‑
ment systems for human and labor rights, building on
suppliers’ existing experience with ISO systems for
environmental, health, and safety topics. (widespread,
systematic)
> Audits identied the following challenges:
» Working hours: Issues include inadequate time
tracking and excessive working hours, even when
compensated according to local legislation. Exces‑
sive overtime occurs primarily in jurisdictions
permitting unlimited voluntary overtime – while
legally compliant locally, this contradicts both
ILO standards and KA’s requirements. (individ‑
ual incidents)
» Lack of effective grievance and whistleblowing
mechanisms due to company size (widespread,
systematic)
» Labor representation: Where unions or collective
bargaining are absent (either due to legislative
requirements or lack of employee demand), KA ver‑
ies the proper communication and protection of
these rights. (systematic)
» Suppliers, especially smaller ones, focus on legal
minimum wages without living wage considerations
(widespread, systematic). However, labor market
pressure typically drives supply chain salaries above
minimum wages, making this more a potential than
actual risk
» Regular health and safety audits are not conducted,
and risk assessments are not performed to identify
occupational health hazards (individual incidents)
> Missing sustainability and human rights requirements
toward their own suppliers, mostly due to a lack of
processes, awareness, and company size (systematic)
Out of the eight suppliers placed under sustainability audit
in 2024, ve have improved from high risk to medium risk
in their externally validated self‑assessment due to the
development feedback and required measures.
KA openly discusses ndings and improvement areas
with suppliers, including potential actions and remedi‑
ation efforts. The company maintains its commitment to
high standards in human rights, working conditions, and
ethical business practices throughout its supply chain.
Assessment and audit ndings guide continuous improve‑
ment initiatives. The company is committed to transpar‑
ently addressing challenges and leveraging its inuence to
make a positive impact.
A formal escalation process provides guidance for
addressing sustainability‑related risks or incidents
(including human and labor rights) through the Supplier
Risk Team. Due to the recent organizational changes, the
risk escalation process needs to be revised and relaunched.
KA’s approach to business relationships emphasizes sup‑
plier development over termination. Business relation‑
ships continue when suppliers demonstrate the willing‑
ness and ability to improve, with KA providing necessary
support. In 2024 and 2025, no signicant breaches or
human rights impacts were identied, particularly
regarding child or forced labor. No supplier relationships
were terminated for such or any sustainability conformity
reasons in either year. In both years, two escalation cases
coincided with existing business‑related terminations.
RESPONSIBLE MINERAL SOURCING
KA’s responsible mineral sourcing efforts focus on met‑
als supply chains, acknowledging the mining industry’s
inherent challenges and complex networks. The approach
targets ten key minerals with the highest risk of adverse
social and environmental impacts, operating through
two strategic pillars:
> Supply chain transparency: KA enhances smelter
transparency through collaboration with Tier 1 suppli‑
ers and mineral associations. Following OECD due dil‑
igence guidance for responsible mineral sourcing from
conict-affected and high-risk areas, KA conducts an
annual collection of data from Tier 1 suppliers covering
ten minerals: Tin, tungsten, tantalum, gold, cobalt,
mica, copper, graphite, lithium, and nickel. Using
Responsible Mineral Initiative (RMI) smelter map‑
ping tools, databases, and guidance, KA identies risk
exposure and communicates with suppliers through
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email and phone calls, including multiple reminders for revision or resubmission to
reduce smelters of concern. This process supports downstream business partners and
customers in fullling their human rights due diligence obligations. The due diligence
process includes supplier information and training, as well as the promotion of prod‑
uct‑level reporting, where feasible.
> Industry and cross-industry partnership: KA engages with multi‑stakeholder ini‑
tiatives, including the Responsible Mineral Initiative (managed by Responsible Busi‑
ness Alliance), to leverage partnerships for shared solutions against industry‑wide and
cross‑industry impacts and risks. Joint outreach campaigns and collaborative efforts
enhance supplier responsiveness.
2023 2024 2025
# OF SUPPLIERS
ASSESSED
RESPONSE RATE
BASED ON FINAL
CMRT/EMRT
# OF SUPPLIERS
ASSESSED
RESPONSE RATE
BASED ON FINAL
CMRT/EMRT
# OF SUPPLIERS
ASSESSED
RESPONSE RATE
BASED ON FINAL
CMRT/EMRT
CONFLICT
MINERALS
REPORTING
524 85% 756 90% 427 89%
EXTENDED
MINERALS
REPORTING
125 64% 108 68% 240 65%
Note: The conict minerals due diligence campaign runs from May within the current year to April in the following year. The data
therefore reects the campaign completion results rather than the calendar year-end gures, enabling a better comparison. Based on
more accurate data, the preselection of suppliers resulted in a lower number of relevant suppliers for CMRT reporting in 2025. The
inclusion of additional minerals within the scope of EMRT led to a higher number of relevant suppliers in 2025.
In line with the RMI recommendations, KA requires and encourages suppliers to identify
resourcing options and promote audit and certication programs for smelters and mines.
Business relationships are maintained as KA typically does not directly purchase from
conict-affected sources.
KA has implemented the following actions to enhance its responsible mineral sourc‑
ing due diligence process:
> Encouraging suppliers to provide product or part‑level reporting whenever possible,
including incorporating IMDS reporting and promoting its use among upstream and
downstream stakeholders
> Strengthening due diligence processes and measures through third‑party expert
review (APA Engineering)
> KA has developed supplier training materials for more effective onboarding and
awareness “ENGAGING WITH WORKERS IN THE SUPPLY CHAIN”
Changes in actions compared to the previous year:
Although the company attended one meeting of the Responsible Minerals Initia‑
tive working group, no additional material benets were identied for 2025, taking into
account the available resources. Further engagement was therefore not pursued during
the reporting period, but may be considered for next year. Additionally, in 2025, prod‑
uct‑level reporting was not mandatory, as most companies were not legally required
to provide such disclosures. Still KA encourages suppliers to report on product level or
user-dened scope if possible.
ENGAGING WITH WORKERS IN THE SUPPLY CHAIN
In KA’s Purchasing teams, buyers are responsible for supplier relationship management.
The suppliers are grouped by categories and regions, with an additional dimension of
project focus. The Sustainable Purchasing teams maintain direct contact with suppliers
and proactively encourage dialog. Beyond annual business reviews, additional engage‑
ment occurs through:
> New business opportunities
> Escalation situations
> New tasks and issues
> Ad hoc inquiries
KA organizes ad hoc supplier events covering market outlook, KA’s projects and goals, and
sustainability topics. Currently, KA proactively engages with suppliers on decarboniza‑
tion and climate change initiatives, which may reveal additional sustainability impacts,
risks, and opportunities.
KA engages with supply chain workers through regular supplier assessments, audits,
site visits, and business meetings to evaluate labor conditions and management system
implementation. On‑site audits of selected high‑risk suppliers include worker interviews
as the primary engagement method.
Individual and group interviews aim to gather insights from potentially vulnerable
or marginalized workers, including migrant workers, minorities, blue‑collar workers,
women, and workers with disabilities.
Interview ndings provide guidance for KA’s ongoing supplier engagement prac‑
tices, including plans for corrective action as well as revisions of policies and processes.
Where possible, trade union and worker council representatives participate in these
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interviews. Suppliers identied as potentially high risk
through externally validated sustainability assessments
are engaged through various formats:
> After validation, suppliers automatically receive a
comprehensive report of their assessment results,
including identied gaps and recommendations from
Supplier Assurance. Suppliers can update their assess‑
ment at any time at no charge to improve their score.
This affects their classication and eligibility for new
KA projects
> When suppliers maintain high‑risk scores without
progressing to medium or low risk, the Sustainable
Purchasing team provides individual written guid‑
ance, including specic corrective actions and, where
appropriate, benchmarks and templates
> If suppliers remain unable or unwilling to improve
their score, individual meetings are arranged with KA
buyers to discuss challenges and identify barriers to
implementing corrective actions
KA plans to develop additional learning and template
materials for suppliers. Learning opportunities will be
available to all suppliers, regardless of size. SMEs may use
the SAQ 5.0 framework, which is tailored to their scale
and capacities, to better understand and focus on the
requirements most relevant to them. As the industry‑wide
tool now takes organization size into account better when
conducting the risk assessment, support is less neces‑
sary. Nevertheless, one‑on‑one support is provided and
e‑learning materials and templates are planned gener‑
ally (and already provided in specic cases in one-on-one
meetings e.g. KA's materials are shared as the benchmark
for some documents). The company’s memberships and
voluntary commitments to the UN Global Compact, the
Responsible Business Alliance, AIAG, and Drive Sustain‑
ability provide access to industry research, benchmarks,
and guidelines.
KA’s engagement practices provide valuable insights and
serve as an instrument to ensure supplier diversity across
regions, countries, categories, and company sizes. Lim‑
ited resources for audits and individual meetings affect
comprehensive representation. This is compensated for
by drawing on research, databases, and guidance on both
an industry and global scale.
REMEDIATION AND CHANNELS TO RAISE CONCERNS
KA monitors compliance, including human and labor
rights, through several channels:
> KA’s internal whistleblowing system, SpeakUp®,
enables both internal and external stakeholders to
report and record concerns (detailed in the Business
Conduct chapter under Policies and Guidelines)
> Media monitoring: A global media screening tool
(RiskMethod) monitors suppliers, their industries, and
geographical locations, triggering alerts for publicly
identied human or labor rights issues. Alerts prompt
immediate buyer notications and investigative action
> Corrective action: KA supports development and
improvement where negative impacts are identied. In
2024 and 2025, no nancial remediation was required
as KA contributed to but did not directly cause nega‑
tive impacts through its business relationships.
> KA’s approach to addressing concerns and griev‑
ances within its value chain is built on the principles
of transparency, trust, and effective remediation that
is proportionate to the grievance that has occurred.
Workers in the supply chain have free access to use the
KA SpeakUp® service. While suppliers are informed of
this resource, there is no evidence yet of supply chain
workers’ awareness or trust in the reporting system.
No supply chain‑related reports were received in 2024
or 2025. For more details on KA’s Code of Conduct, whis‑
tleblower procedures, and anti‑retaliation protections,
see section G1 on business conduct. No cases of forced
labor or child labor were identied in KA’s operations or
supply chain in 2024 or 2025. Therefore, no remediation
activities were required.
TRAINING AND DEVELOPMENT, CAPACITY BUILDING,
AND RESOURCES
To ensure the necessary resources are available to imple‑
ment and strengthen KA’s due diligence process and the
sustainability and human rights standards in the supply
chain, the company also engages in initiatives to raise
awareness, share information and knowledge, and build
skills and competencies among Purchasing staff.
In 2025, KA’s Sustainable Purchasing department
delivered training to Purchasing staff worldwide, cover‑
ing sustainable development, responsible and sustain‑
able purchasing, and responsible minerals. Fifteen mem‑
bers of KA’s Purchasing team participated in at least one
live webinar training session in 2025. As a result, a 98.6%
training coverage rate was achieved among Purchasing
colleagues by year‑end 2025 (2024: 96,7%). KA maintains
ongoing awareness through regular engagement with the
internal purchasing community. Training for global Pur‑
chasing staff extends beyond providing basic sustain‑
ability information – it also builds awareness, commit‑
ment, and motivation for action. Through its Purchasing
organization, KA is establishing worldwide sustainability
knowledge and capacity.
To strengthen training effectiveness where processes
and rules are not consistently followed, KA plans the fol‑
lowing improvements for 2026:
> Integration with the new global e‑learning platform to
enhance access and monitoring
> Enhanced exercises and follow‑up tasks
> Regular awareness campaigns
> Topic presence at town hall meetings to maintain
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commitment and motivation and underline strategic
relevance
> Continued management participation in training
These improvement plans were already part of the 2025
agenda. As they were only partially achieved due to orga‑
nizational changes, they are recurring for 2026.
Other functional areas receive general knowledge
through KA’s Code of Conduct training, as described in
section G1 on business conduct.
Awareness raising and development targets managers
and professionals in addition to staff. The following list
outlines training and development activities conducted
in collaboration with suppliers:
> Making online information and training materials
available through KA and partner websites (RMI, APA
Engineering, AIAG)
> Providing individual support meetings: Successfully
improved risk scores for 33 suppliers (15 high‑risk and
18 medium‑risk suppliers) through engagement prac‑
tices (2024: 34 suppliers)
> Holding technical guidance webinars: Two sessions on
responsible minerals and related reporting, conducted
with APA Engineering, reaching seven direct suppliers
> Offering specialized support: Individual technical and
reporting guidance for suppliers using 3TG, cobalt,
mica, copper, graphite, lithium, and nickel provided
by third‑party experts conducting on‑site audits. Five
new audits were conducted, incorporating awareness
raising on governance and measures across social,
environmental, and ethical topics
KA maintains effective due diligence through ensuring
annual resources, with sustainable purchasing having a
dedicated budget. As human rights and compliance are
non‑negotiable for KA, basic governance, processes, and
actions continue even during challenging economic con‑
ditions, supported by the passionate Sustainable Pur‑
chasing Expert team. Financial stability and growth may
enable higher ambitions in the future to accelerate human
rights initiatives and enhance positive impact beyond risk
prevention and mitigation. For details on sustainability
resource allocation, please refer to the General Informa‑
tion chapter of this report.
SUMMARY OF ACTIONS AND MAIN RESULTS
The following summary aligns KA’s risk management
activities in the supply chain regarding human rights vio‑
lations with reporting standard requirements, comple‑
menting the information provided above:
> The regular risk assessment combines country‑spe‑
cic ESG supply chain risk scores and industry-driven,
evidence‑based externally validated self‑assessment
questionnaires. In 2025, 541 suppliers (both direct
material and indirect) hold valid external sustainabil‑
ity assessments (2024: 522 suppliers).
> KA supports supplier development, measured by risk
scores: 42 suppliers received individual recommen‑
dations and explanations. By year‑end, 15 suppliers
improved from high to medium risk, and 18 suppli‑
ers improved from medium to low risk. KA conducted
ve rst on-site audits to better understand risk
exposure, assess supplier challenges, evaluate supply
chain worker conditions, and enable more direct and
effective worker engagement. Global training activi‑
ties reached 98.6% coverage within KA’s Purchasing
departments. KA regularly assesses conict miner‑
als due diligence through annual data gathering and
monitoring. Response rates reached 89% for the Con‑
ict Minerals Reporting Template (CMRT) and 65% for
the Extended Minerals Reporting Template (EMRT)
by campaign end. KA maintains sustainability and
human rights compliance targets while continuously
taking action to strengthen processes and measure‑
ments, including the Sourcing Board tracking process
implementation and reporting alignments for data
accuracy.
All actions serve both prevention and mitigation. Results
are monitored continuously throughout the year and
reviewed at least bi‑annually.
GOALS AND TARGETS REGARDING WORKFORCE IN THE
SUPPLY CHAIN
Sustainability and human rights development require
continuous improvement. Rather than setting a base‑
line year, KA compares performance against the previous
two years, continuously striving for improvement. Goals,
action plans, and annual targets focus on preventing
material risks and improving material impacts identied
in the supply chain. Progress is monitored continuously
and reviewed with the managers responsible at least
bi‑annually. During these reviews, targets and goals are
dened, discussions on dependencies and benchmarks
are held, and evaluations of the results and effectiveness
are conducted. While supply chain workers and their rep‑
resentatives are not directly engaged in target setting,
their input is incorporated through publicly available
guidelines, research ndings, and insights from ongoing
engagement processes. Stakeholders can monitor prog‑
ress through public sustainability reports, grievance and
whistleblowing mechanisms, and direct feedback to KA
staff, who remain open to feedback, recommendations,
and concerns.
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Given the complexity of human and labor rights issues
in the global automotive industry and beyond (wide‑
spread, systematic risks and impacts), along with global
and country-specic trends and regulations beyond KA’s
control, the focus lies on qualitative rather than quanti‑
tative long‑term targets. Short and mid‑term objectives
focus on:
> Strengthening data and information availability
throughout the value chain
> Improving accountability measures
> Contributing effectively to solving systematic issues
through global stakeholder collaboration
Simultaneously, KA focuses on areas of direct inuence,
aiming to increase positive impact as well as prevent and
mitigate individual incidents through awareness raising
and targeted corrective actions.
SHORT-TERM TARGETS REGARDING
HUMAN AND LABOR RIGHTS WITHIN
THE SUPPLY CHAIN
MID-TERM TARGETS REGARDING
HUMAN AND LABOR RIGHTS WITHIN
THE SUPPLY CHAIN
LONG-TERM TARGETS REGARDING
HUMAN AND LABOR RIGHTS WITHIN
THE SUPPLY CHAIN
KA’s short-term targets mainly serve
three goals:
1. Improving transparency and
accountability in supply chain-related
issues
2. Decreasing risk exposure through
responsible supplier selection and
supplier development
3. Increasing potential positive impact
through awareness raising and
knowledge sharing. See below for
detailed one-year targets
> Maintain transparency on supply chain
sustainability performance, e.g. >90%
Supplier Declaration acceptance; >90%
supplier risk assessment coverage;
on-site and follow up audits focusing on
high-risk suppliers
> Train and develop purchasing staff
(>95% coverage) and suppliers’
decision-makers and professionals
(target to be set for 2027 and later)
on the importance of corporate
sustainability and human and labor
rights, and provide practical support for
development
> Improve data and information access
throughout the value chain to enable
risk validation and targeted corrective
action
> Deepen supplier and stakeholder
engagement with the aim to better
understand, support, and protect
workers in the supply chain
> Improve positive impact through
inclusive purchasing and social buying
where appropriate
> Have a positive impact on local
economic, employment, and working
conditions
> Engage with low-risk suppliers only when

> Minimize the number of individual
incidents and their chances by effective
supplier selection and development (e.g.

> Contribute effectively through
transparency and due diligence to
solve widespread, systematic negative
impacts and risks
KA’S MAIN KPIS AND ONE-YEAR TARGETS RELATED TO S2 -
WORKERS IN THE SUPPLY CHAIN
TARGET
2024
STATUS
20 24
TARGET
2025
STATUS
2025
TARGET
2026
Percentage of direct material spend with suppliers that have accepted the
Supplier Declaration
>90% 86% >90% 90% >90%
Percentage of direct material spend with suppliers that have a valid
Sustainability Risk Assessment
>85% 88% >85% 90% >90%
Percentage of direct material suppliers spend with-high risk external
sustainability risk assessment
<10% 4% <5% 4,5% <5%
Number of on-site sustainability supplier audits (initial audits conducted by third
parties, follow-up audits conducted by second or third parties)
10 9 10 8 N/A
Maintain share of local sourcing in all regions for direct material suppliers
>80% 88% >80% 88% >85%
ANNUAL REPORT 2025 // SOCIAL INFORMATION
ACCOUNTING PRINCIPLES
Quantitative results were calculated using the R12 year‑
end spend report with data as of December 31, 2025,
published internally in mid‑January 2026. All data is
calculated, with no estimations or assumptions. Tar‑
get setting and calculation methodologies remain con‑
sistent with the previous year. Most targets are either
achieved or are on track for timely completion. The status
is monitored throughout the year to achieve and maintain
these results.
98
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IMPACTS, RISKS, AND OPPORTUNITIES
Within the process to identify business conduct‑mate‑
rial impacts, risks, and opportunities, KA’s subject matter
experts assessed business conduct matters (i.e. ESRS G1)
through desktop analyses and discussions, guided by KA’s
Code of Conduct, existing policies and channels for han‑
dling concerns, as well as applicable regulations. Due to
their global scope, business conduct issues were assessed
across KA’s value chain, with a focus on its own locations,
business activities and interactions with business partners.
KA has identied its main business conduct-related
impacts, risks, and opportunities. The following table
and subsequent pages outline these key elements and
their management:
Kongsberg Automotive (KA) is committed
to conducting business with the highest
standards of integrity and transparency.
The company’s Code of Conduct reects
its core values and sets the foundation for
ethical behavior across all operations. KA
believes that sustainable business success
requires not only nancial performance,
but also adherence to the principles of
honesty, accountability, and respect for
human rights.
IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
RESPONSIBLE
MARKETING PRACTICES
INCL. ASSURANCE AND
LABELS, TAXES, AND
PROFIT SHARING
Financial
risk

losing the license to operate if not adequately contributing


> Code of Conduct implementation and
employee training
> UN Global Compact membership
> Supplier assessments and audits
> Collaboration with suppliers
CORRUPTION,
BRIBERY, AND
ANTI-COMPETITIVE
BEHAVIOR
Financial
risk
Financial/legal/litigation risks due to global supply
chain with lots of inherent risks for fraud, corruption,
bribery, disruption of supply chain due to political reasons

damage can be long-lasting.
PROTECTION OF
WHISTLEBLOWERS
Financial
risk
Financial/legal/litigation risks due to global supply
chain with lots of inherent risks for fraud, corruption,
bribery, disruption of supply chain due to political reasons

damage can be long-lasting.
RESPONSIBLE
MARKETING PRACTICES
INCL. ASSURANCE AND
LABELS
Opportunity
Responsible communication can be marketing tool for KA to
improve its image, gain new customers, and new business.
INFRASTRUCTURE
Opportunity
Financial sustainability is a precondition for long-term
economic success. Contributing to the local community

investments, etc. has a positive reputational impact.
MANAGEMENT OF
RELATIONSHIPS WITH
SUPPLIERS
Opportunity
Opportunity through supplier engagement/localization to
gain competitive advantage, create a more resilient supply
chain, and achieve reputational gains.
GOVERNANCE INFORMATION
BUSINESS CONDUCT
ESRS G1
ANNUAL REPORT 2025 // GOVERNANCE INFORMATION
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POLICIES
Kongsberg Automotive (KA) recognizes that a strong cor‑
porate culture is essential to maintaining high ethical
standards. To this end, KA promotes ethical leadership at
all levels of the organization. At the heart of KA’s business
concept is a performance‑oriented culture, and one of the
communicated key priorities 2026 of the newly estab‑
lished ELT is to strengthen KA culture. This is also under‑
lined by the recent structural changes of moving several
corporate functions into the BAs, promoting greater own‑
ership and accountability.
The company conducts training programs on topics
covered by he Code of Conduct across all levels of KA’s
operations. Further, employee awareness and behav‑
ior are evaluated through surveys and feedback mecha‑
nisms. KA’s corporate culture fosters a sense of responsi‑
bility, empowering employees to make ethical decisions
in their daily work.
KA’s approach to business conduct is guided by the
following principles:
1. Integrity: Acting with honesty in all business dealings
2. Compliance: Adhering to all applicable laws, regula‑
tions, and industry standards, including anti‑bribery
and anti‑corruption laws
3. Transparency: Providing accurate, reliable, and timely
information to stakeholders
4. Accountability: Taking responsibility for actions and
their impact on society and the environment
CORPORATE
CULTURE
KA’s leadership and employees are committed to these
principles, ensuring ethical behavior at all levels of
the organization.
KA’s Code of Conduct is the cornerstone of its ethics
framework and is available in 12 languages. It outlines
expectations for behavior, decision‑making, and inter‑
actions with stakeholders. This includes topics such as
general behavior expectations, anti‑corruption and brib‑
ery, anti-fraud, conict of interests, compliance with
laws, equal treatment, anti‑harassment, data privacy, and
responsible communication among others. The business
conduct Impact Risk and Opportunities (IRO)s can all be
related to the content of the Code of Conduct. All employ‑
ees including the Executive Leadership Team (ELT) and
Board of Directors (the Board), contractors, and business
partners are expected to comply with these guidelines.
The Code of Conduct is approved by KA’s Board while the
CEO holds the ultimate accountability for its implemen‑
tation. The General Counsel is designated as the func‑
tional owner of the Code of Conduct, responsible for mon‑
itoring and updating it to keep it current and effective.
The expected behavior for suppliers is outlined in a sepa‑
rate supplier’s Code of Conduct.
With respect to the customer side, Kongsberg Auto‑
motive is subject to Norwegian, EU, UK and US sanctions
legislation relating to Russia’s invasion of Ukraine. In light
of the ever‑developing sanction regimes and their increas‑
ing complexity in combination with a dynamic environ‑
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ANNUAL REPORT 2025 // GOVERNANCE INFORMATION
ment, Kongsberg Automotive implemented enhanced measures to ensure
sanction compliance. The measures involved comprehensive due dili‑
gence of potential and existing customers, distributors, and commercial
agents. Said due diligence routing included sanction screening of coun‑
terparties, their shareholders, and legal representatives through a third‑
party database which secures the integrity of the due diligence effort by
providing up‑to‑date information at all times. Moreover, further mea‑
sures included obtaining additional contractual commitments from our
counterparties obligating them not to re‑export our products, directly or
indirectly, to Russia and Belarus.
Experience shows that the risk level involved when trading with a
party to a large extent correlates with the geographical area where such
parties are established or operates their businesses. The level of required
due diligence will therefore also vary dependent on location. Kongsberg
Automotive has dened restricted areas where all trading by Kongsberg
Automotive is prohibited. The restricted areas are countries that are sub‑
ject to comprehensive sanctions (not only related to Russia). There are
further countries dened as high-risk areas where extensive due diligence
is required before Kongsberg Automotive enters into any contract. These
countries are often geographically located close to sanctioned countries,
or are otherwise a known sanction circumvention hub or that the coun‑
try does not have corresponding sanctions against Russia. Low‑risk coun‑
tries have been dened as countries within EU/EEA, UK, USA, Austra‑
lia, New Zealand, Canada, Japan, and South Korea. All of these countries
have sanctions against Russia. Kongsberg Automotive’s focus has been
on current and new business partners in high‑risk areas, while gradually
expanding the efforts to low‑risk countries.
ACTIONS, TARGETS, AND METRICS
KA continues to foster its corporate culture and promote its core princi‑
ples. Employees receive training and guidance on the requirements of the
Code of Conduct, which focuses on relevant ethical dilemmas to ensure
everyone understands the Code and their responsibilities. The training
and guidance are delivered through classroom training, workshops, and
an e‑learning program. All new employees are required to receive train‑
ing during the onboarding phase. For all other employees, a bi‑annual
refresher is required. The completion rate of the Code of Conduct training
was 64% in 2024. This gure is rather conservative, because the verica‑
tion of classroom attendance for workers without a personal computer is
quite difcult. In 2025, KA reevaluated the Code of Conduct and its train‑
ing materials and postponed the refresher to 2026 with the release of a
revised Code of Conduct. Therefore, the global completion rate was not
compiled for 2025. For classroom trainings held in 2025, a new process
was rolled out toward the end of the year using tablets to track physical
training attendence with the aim of facilitating reporting completeness
going forward.
ACCOUNTING POLICIES
COMPLETION RATE OF CODE OF CONDUCT TRAINING (2024 ONLY)
Total number of employees remaining at KA at the end of the reporting
period who received a Code of Conduct refresher training either online or
in person with veriable documented attendance divided by total num‑
ber of employees at the end of the reporting period. For ofce workers,
the completion can easily be tracked through SucessFactors, for workers
without a personal computer, the attendance verication is tracked on
paper locally.
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POLICIES
Kongsberg Automotive (KA) has zero tolerance for corruption or bribery. The anti‑brib‑
ery and corruption policy is laid out in the Code of Conduct. This includes offering, solic‑
iting, or accepting improper payments or gifts in exchange for business advantages. The
Code also includes a red ag list, raising employees’ awareness of potential occurrences.
All employees who have received training on the Code of Conduct are required to provide
written conrmation of their understanding of the requirements in relation to corruption
and bribery.
All cases of bribery or corruption related to KA, its personnel, and representatives
must be reported to the General Counsel either directly or via the whistleblowing ser‑
vice SpeakUp® line. This applies even if the bribery attempt is rejected or unsuccessful.
All reports or concerns relating to the Code of Conduct will be considered by the Gen‑
eral Counsel. The General Counsel is responsible for ensuring that grievances are inves‑
tigate using the appropriate means, e.g. internal resources from Finance, Legal or HR, or
retained external resources.
ACTIONS, TARGETS, AND METRICS
The Code of Conduct training includes a large section of anti‑corruption and bribery train‑
ing. KA has not dened functions at risk. However, the Code of Conduct training is manda‑
tory for all employees, and potential at‑risk functions are therefore included as well.
Reports of breaches of the Code of Conduct are included in the quarterly plant report‑
ing to Internal Audit. No such cases were reported in 2024 and 2025. Site audits by Inter‑
nal Audit also include an assessment of business ethics and the internal control environ‑
ment. In 2025, three site audits were performed (2024: ve site audits) and no incidents
were identied during those audits. Furthermore, no conrmed cases of corruption or
bribery were reported through the SpeakUp® line in 2024 and 2025 either.
In conclusion, there were no conrmed incidents of corruption reported or identied
in 2024 and 2025. Further, no legal cases regarding corruption were brought against the
company or its employees.
ANTI-CORRUPTION
AND BRIBERY
ANNUAL REPORT 2025 // GOVERNANCE INFORMATION
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ACTIONS, TARGETS, AND METRICS
KA continues to encourage the reporting of suspected
breaches of the Code of Conduct or any other unethical
or illegal behavior and raises awareness of the options
available within the Code of Conduct training. All cases
reported are handled with objectivity and diligence. In
2025, 37 whistleblower reports were received, of which
30 were resolved within the reporting year. In 2024, ve
reports were received, of which four were resolved within
the same reporting year.
ACCOUNTING POLICIES
Number of whistleblower reports received and resolved
Number of whistleblower reports received through the
SpeakUp® line and investigated as well as resolved by the
Compliance Committee within the reporting period.
MANAGEMENT OF RELATIONSHIP WITH SUPPLIERS,
INCLUDING PAYMENT PRACTICES
Fair payment terms, such as reasonable payment peri‑
ods and transparent agreements, foster trust, strengthen
business relationships, and encourage collaboration
between KA and its suppliers. More information on KA’s
approach to its relationship with suppliers can be found
in chapter S2 – Workers in the value chain.
Timely payments are crucial for ensuring supplier
sustainability and growth. KA’s payment terms align
with industry practice and apply consistently across all
PROTECTION
OF WHISTLEBLOWERS
POLICIES
Kongsberg Automotive (KA) encourages the reporting of
suspected misconduct, and this goes for both employ‑
ees and people external to the company. The option of
raising concerns outside of contacting the direct man‑
ager or Human Resources is clearly laid out in the Code
of Conduct. The company has established a whistleblow‑
ing service for reporting suspected breaches of the Code
of Conduct or any other unethical or illegal behavior. For
the anonymous reporting of concerns, KA uses a whis‑
tleblowing service called the SpeakUp® line. SpeakUp®
is accessible online and via phone and is also available to
external parties. A link to the web option and phone num‑
bers can be found on the Code of Conduct page in the Sus‑
tainability section of KA’s external website as well as on
KA’s intranet and within the Code of Conduct itself.
Any reports submitted to the SpeakUp® line are sent
to the General Counsel and the EVP Human Resources. The
General Counsel is responsible for ensuring that grievances
are investigated using the appropriate means, e.g. internal
resources from Finance, Legal or HR, or retained external
resources. The General Counsel provides quarterly reports
to the CEO of all ongoing and closed matters concerning
potential Code of Conduct violations. Signicant and seri‑
ous matters are reported to the Board of Directors. All con‑
cerns are treated with the utmost condentiality and with‑
out fear of retaliation in line with the EU Whistleblower
Protection Directive (EU Directive 2019/1937).
supplier categories. In 2025, the average invoice payment
time was 78 days (2024: 75 days), with no legal proceed‑
ings for late payments.
ACCOUNTING POLICIES
Average number of days to pay invoices
Average number of days based on accounts payable divided
by the sum of cost of the goods sold (direct materials.)
Number of outstanding legal proceedings for late payments
Number of outstanding legal proceedings (litigation or
arbitration) for late payments.
ANNUAL REPORT 2025 // GOVERNANCE INFORMATION
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ENTITY-SPECIFIC DISCLOSURES
PRODUCT QUALITY AND SAFETY
IMPACTS, RISKS, AND OPPORTUNITIES
Within the process to identify business conduct‑material impacts, risks, and opportuni‑
ties, KA’s subject matter experts assessed product quality and safety matters (ESRS Com‑
pany Specic) through desktop analyses and discussions, guided by KA’s existing policies,
customer requirements, and applicable regulations.
KA has identied its main product quality and safety-related impacts, risks, and
opportunities. The following table and subsequent pages outline these key elements and
their management:
IRO NAME IRO TYPE DESCRIPTION KA’S RESPONSE
PRODUCT SAFETY
(CUSTOMER) AND
CONSUMER HEALTH
(CUSTOMER)
Financial risk

products. Reputational damage can
have a severe impact.
> Established product
quality and safety
organization at KA
> Comprehensive
product safety program
implemented
PRODUCT SAFETY
(CUSTOMER)
Opportunity
High priority of safety for customers

to customers.
ACCESS TO AND
AFFORDABILITY
OF PRODUCTS
AND SERVICES
(CUSTOMER)
Opportunity

powertrain bigger part of overall

price and thus the accessibility of the
product).
To ensure the highest level of product quality despite increasing
product complexity, Kongsberg Automotive (KA) uses a certied
quality management system as well as consistent quality
controls and regularly optimized processes.
POLICIES
KA has established a quality policy for product‑related quality and safety, setting the
standards for how product quality is ensured. The policy covers all facilities. KA complies
with various quality‑related ISO standards, including ISO 9001 (quality management sys‑
tems) and IATF 16949 (quality management standard for the automotive industry), to
maintain a robust management system that aligns with international best practices. The
policy has been approved by the CEO and was published in 2023.
ACTIONS, TARGETS, AND METRICS
KA’s standardized group‑wide management system, which covers the requirements of
IATF (the International Automotive Task Force) 16949, has ensured quality for many years.
This system is coordinated and controlled by KA’s Quality departments. Management
system representatives at the manufacturing and development sites assume the imple‑
mentation of business processes in their entities. This ensures that nearly all development
sites are successfully certied in accordance with ISO 9001 and nearly all production sites
in accordance with the additional requirements of the automotive industry (IATF 16949).
In addition, ambitious quality targets are a key element of KA’s quality planning. KA’s
group‑wide reporting of relevant quality data ensures that accurate information on the
quality performance of all units is always available. Malfunctions can have serious conse‑
quences in the case of safety‑related components for vehicles or for industrial applications.
KA therefore assumes responsibility for the safety of its products throughout their planned
life cycle by dening their functional description for customers. The company reduces risks
in series production through quality assurance measures and monitors conformity with
its specications through internal and external audits. Identied weaknesses and errors
are systematically analyzed and consistently eliminated. As a result of these activities, the
company was able to stabilize the number of customer complaints in 2025 compared to
2024 for the Flow Control Systems (FCS) business area and lower the number of customer
complaints for the Drive Control Systems (DCS) business area. The 2025 target of defective
parts (ppm) of <10.0 was fullled by both business areas as well.
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KPI
BUSINESS
AREA
2024* 2025
Number of accepted customer complaints per €M sales
FCS 0.5 0.5
DCS 0.4 0.3
Number of non-conforming parts per million parts sold
FCS 1.7 1.6
DCS 26.6 6.2
*The 2024 results for DCS were restated to reect the same methodology as FCS (= 12 months rolling calculation)
For 2026, KA decided to shift the focus to other KPIs to focus on the reduction of Repeated
and High Impact claims (NCT3, NCT4 and NCT5) on actual occurrence numbers. NCT
refers to non‑conformity (claim) types with increasing severity and impact according to
the attached number.
# KPI
BUSINESS
AREA
20 26
TARGET
1 Customer complaints repeated (re-occurance case)
FCS 2
DCS 3
2 Customer complaints NCT3 - (customer line stop case)
FCS 0
DCS 3
3

case
FCS 0
DCS 0
4 Customer complaints NCT5 - (product safety claim)
FCS 0
DCS 0
ACCOUNTING POLICIES
ppm rate of defective parts for external customers
The parts per million (ppm) rate of defective parts for external customers is calculated as
the total number of defective parts during production divided by 1 million parts sold.
ANNUAL REPORT 2025 // ENTITY-SPECIFIC DISCLOSURES
Kongsberg, March 25, 2026
The Board of Directors and the President & CEO of Kongsberg Automotive ASA
Sign.
Trond Fiskum
President & CEO
Sign.
Ulla-Britt Fräjdin-Hellqvist
Director
Sign.
Bård Klungseth
Deputy Chair
Sign.
Olav Volldal
Chair
Sign.
Synnøve Gjønnes
Director
Sign.
Ørjan Langnes
Employee representative
Sign.
Siw Reidun Wærås Bjerke
Employee representative
Sign.
Brian Kristoffersen
Director
Sign.
Hilde-Yvonne Beggerud
Employee representative
105
ANNUAL REPORT 2024 // FINANCIAL STATEMENTS OF THE GROUP
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    
FI
NANCIAL 
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    

FINANCIAL
STATEMENTS
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CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME ............................. 107
CONSOLIDATED STATEMENT OF CASH FLOWS ... 108
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION .................................... 109
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY ...................................... 111
NOTE 1 REPORTING ENTITY ..............................112
NOTE 2 STATEMENT OF COMPLIANCE ............... 112
NOTE 3 MATERIAL ACCOUNTING POLICIES .......112
NOTE 4 CRITICAL ACCOUNTING ESTIMATES
AND JUDGMENTS ...............................................121
NOTE 5 NEW STANDARDS
AND INTERPRETATIONS .....................................123
NOTE 6 SUBSIDIARIES .......................................124
NOTE 7 SEGMENT INFORMATION .......................125
NOTE 8 SALARIES AND SOCIAL EXPENSES ......128
NOTE 9 OTHER INCOME AND OTHER
OPERATING EXPENSES ...................................... 128
NOTE 10 FINANCIAL ITEMS ...............................129
NOTE 11 TAXES .................................................130
NOTE 12 INTANGIBLE ASSETS ..........................133
NOTE 13 PROPERTY,
PLANT & EQUIPMENT (PP&E) ............................135
NOTE 14 RIGHT-OF-USE ASSETS ......................136
NOTE 15 IMPAIRMENT LOSSES ..........................137
NOTE 16 INVENTORIES ......................................139
NOTE 17 TRADE AND OTHER RECEIVABLES .....140
NOTE 18 SHARE CAPITAL ..................................142
NOTE 19 EARNINGS AND
DIVIDEND PER SHARE........................................144
NOTE 20 RETIREMENT BENEFIT OBLIGATIONS ... 145
NOTE 21 INTEREST-BEARING LIABILITIES ........146
NOTE 22 OTHER NON-CURRENT
INTEREST-FREE LIABILITIES .............................148
NOTE 23 RISK MANAGEMENT ............................148
NOTE 24 TRADE AND OTHER PAYABLES ...........151
NOTE 25 FINANCIAL INSTRUMENTS .................. 152
NOTE 26 REMUNERATION AND FEES FOR
MANAGEMENT, BOARD OF DIRECTORS (BOD)
AND AUDITOR .....................................................153
NOTE 27 COMMITMENTS AND GUARANTEES ..... 154
NOTE 28 CONTINGENT LIABILITIES .................. 154
NOTE 29 SUBSEQUENT EVENTS ...................... 154
NOTE 30 RELATED-PARTY TRANSACTIONS ..... 154
FINANCIAL STATEMENTS
OF THE GROUP
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MEUR NOTE 2025 2024
Operating revenues 7 712.8 788.2
Other income 9 2.3 5.0
Operating expenses
Raw material expenses (308.5) (343.2)
Change in inventories (4.2) (21.0)
Salaries and social expenses 8 (211.9) (234.6)
Other operating expenses 9 (144.1) (150.9)
Depreciation 13, 14 (29.2) (29.1)
Amortization 12 (0.9) (0.7)
(Impairment losses)/reversal of impairment
12, 13, 14,
15
(2.7) 5.0
Total operating expenses (701.5) (774.5)
Operating profit/(loss) 13.6 18.7
Financial items
Financial income 10 3.1 2.6
Financial expenses 10 (16.4) (23.6)
Net financial items (13.3) (21.0)
Profit (loss) before taxes 0.3 (2.3)
Income taxes 11 (0.1) (15.9)
Net profit (loss) 0.2 (18.2)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
MEUR NOTE 2025 2024
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Translation differences on foreign operations (21.8) 19.1
Items that will not be reclassified to profit or loss in subsequent periods:
Translation differences on non-foreign operations 0.0 (12.7)
Remeasurement of net defined benefit obligations (DBO) 20 2.2 (1.0)
Tax on net DBO remeasurement 11 (0.5) 0.2
Other comprehensive income (20.1) 5.6
Total comprehensive income for the year (19.9) (12.6)
Net profit attributable to
Equity holders (parent company) 0.2 (18.2)
Non-controlling interests 0.0 0.0
Total 0.2 (18.2)
Total comprehensive income attributable to
Equity holders (parent company) (19.9) (12.7)
Non-controlling interests 0.0 0.1
Total (19.9) (12.6)
Earnings per share:
Basic earnings per share, euros 19 (0.00) (0.02)
Diluted earnings per share, euros 19 (0.00) (0.02)
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CONSOLIDATED STATEMENT OF CASH FLOWS
MEUR NOTE 2025 2024
Operating activities
Profit/(loss) before taxes 0.3 (2.3)
Depreciation 13, 14 29.2 29.1
Amortization 12 0.9 0.7
Impairment losses/(reversal of impairment)
12, 13, 14, 15
2.7 (5.0)
Interest income and other financial items 10 (1.1) (2.4)
Interest expenses and other financial items 10 16.3 21.6
Taxes paid (5.5) (11.1)
(Gain)/loss on sale of non-current assets (1.7) (2.0)
Changes in trade receivables 17 13.1 20.7
Changes in inventory 16 4.2 21.0
Changes in trade payables 24 (5.9) (31.8)
Currency differences 10 (6.9) 3.6
Difference between pension funding contributions paid/
pensions paid and the net pension cost
20 (0.8) 0.4
Changes in provisions 9.1 (13.9)
Changes in other items* 4.6 3.8
Cash flow from operating activities 58.5 32.4
Investing activities
Capital expenditures, including intangible assets 12, 13 (16.3) (24.7)
Proceeds from sale of intangible and tangible assets 2.0 2.1
Acquisition of Chassis Autonomy, net of cash acquired 0.2 0.0
Interest received and other financial items 10 1.0 2.5
Investments in associates and other 17 (1.7) (1.3)
Cash flow used by investing activities (14.8) (21.4)
* Includes changes in contract assets and contract liabilities, other current receivables like receivables from
public duties, customer developments and prepaid expense, and other non-current assets.
** Relates to the acquisition of the remaining 25% shares in Kongsberg Automotive Morse Shanghai Co. Ltd.,
from Dongfeng Electronic Technology Co., Ltd. This means KA now owns 100% of the company.
MEUR NOTE 2025 2024
Financing activities
Payments for purchase of treasury shares 18 0.0 (2.4)
Net proceeds from issuing new bond notes 21 0.0 107.5
Payments for redemption/repurchase of the old bond notes 21 0.0 (190.2)
Securitization facility drawn/(repaid) 21 0.0 25.0
Net draw down/(repayment) of debt 21 (0.2) 0.0
Interest paid and other financial items (15.4) (21.9)
Repayment of lease liabilities 21 (10.0) (9.7)
Purchase of remaining 25% of shares in KAMS** (2.0) 0.0
Dividends paid to the subsidiary’s minority interest 0.0 (1.1)
Cash flow used by financing activities (27.6) (92.8)
Currency effects on cash (9.6) 1.4
Net change in cash 6.5 (80.4)
Net cash as at January 1 84.3 164.7
Net cash as at December 31 90.8 84.3
Of this, restricted cash 0.0 0.1
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS EQUITY AND LIABILITIES
MEUR NOTE 2025 2024
Non-current assets
Intangible assets, including Goodwill 12, 15 80.6 84.6
Property, plant, and equipment 13, 15 103.5 117.3
Right-of-use assets 14, 15 51.4 54.8
Deferred tax assets 11 8.5 10.0
Investments accounted for using the equity method 17 0.0 0.7
Other non-current assets 17 2.4 2.0
Total non-current assets 246.4 269.4
Current assets
Inventories 16 76.3 80.5
Trade and other receivables 17 139.0 154.3
Other current assets 17 12.6 14.4
Cash and cash equivalents 21 90.8 84.3
Total current assets 318.7 333.5
Total assets 565.1 602.9
MEUR NOTE 2025 2024
Equity
Share capital 18 80.6 80.6
Treasury shares 18 (5.2) (5.2)
Share premium 172.0 172.0
Other reserves 90.9 110.6
Retained earnings (157.4) (158.3)
Attributable to equity holders 180.9 199.7
Non-controlling interests 0.0 3.3
Total equity 180.9 203.0
Non-current liabilities
Deferred tax liabilities 11 20.3 25.4
Retirement benefit obligations 20 10.1 13.0
Interest-bearing liabilities 21 133.1 132.5
Non-current lease liabilities 14, 21 55.4 63.8
Other non-current interest-free liabilities 22 1.0 0.7
Total non-current liabilities 219.9 235.4
Current liabilities
Current lease liabilities 14, 21 10.2 9.9
Current income tax liabilities 11 0.8 1.3
Trade payables 24 78.9 84.8
Other current payables 24 74.4 68.5
Total current liabilities 164.3 164.5
Total liabilities 384.2 399.9
Total equity and liabilities 565.1 602.9
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Sign.
Olav Volldal
Chair
Sign.
Brian Kristoffersen
Director
Sign.
Bård Klungseth
Deputy Chair
Sign.
Hilde-Yvonne Beggerud
Employee representative
Sign.
Synnøve Gjønnes
Director
Sign.
Ørjan Langnes
Employee representative
Sign.
Ulla-Britt Fräjdin-Hellqvist
Director
Sign.
Siw Reidun Wærås Bjerke
Employee representative
Kongsberg, March 25, 2026
The Board of Directors and the President & CEO of Kongsberg Automotive ASA
Sign.
Trond Fiskum
President and CEO
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
MEUR
SHARE
CAPITAL
TREASURY
SHARES
SHARE
PREMIUM
OTHER
RESERVES
RETAINED
EARNINGS
EQUITY
HOLDERS OF
THE PARENT
NON-CON
-
TROLLING
INTEREST
TOTAL
EQUITY
Equity as at 01.01.2024 84.6 (3.2) 180.6 91.8 (140.1) 213.7 4.4 218.1
Purchase of treasury shares (2.4) (2.4) (2.4)
Share-based compensation 1.1 1.1 1.1
Dividends allocated or paid 0.0 (1.2) (1.2)
Total comprehensive income for the year:
Loss for the year (18.2) (18.2) 0.0 (18.2)
Other comprehensive income:
Translation differences on foreign operations
19.0 19.0 0.1 19.1
Translation differences on non-foreign operations (4.0) 0.4 (8.6) (0.5) (12.7) (12.7)
Remeasurement of net defined benefit liability
(1.0) (1.0) (1.0)
Tax on remeasurement of net defined benefit liability
0.2 0.2 0.2
Other comprehensive income (4.0) 0.4 (8.6) 17.7 0.0 5.5 0.1 5.6
Total comprehensive income for the year (4.0) 0.4 (8.6) 17.7 (18.2) (12.7) 0.1 (12.6)
Equity as at 31.12.2024 80.6 (5.2) 172.0 110.6 (158.3) 199.7 3.3 203.0
Acquisition of NCI 0.4 0.7 1.1 (3.3) (2.2)
Total comprehensive income for the year:
Profit for the year 0.2 0.2 0.0 0.2
Other comprehensive income:
Translation differences on foreign operations
(21.8) (21.8) (21.8)
Remeasurement of net defined benefit liability
2.2 2.2 2.2
Tax on remeasurement of net defined benefit liability
(0.5) (0.5) (0.5)
Other comprehensive income 0.0 0.0 0.0 (20.1) 0.0 (20.1) 0.0 (20.1)
Total comprehensive income for the year
0.0 0.0 0.0 (20.1) 0.2 (19.9) 0.0 (19.9)
Equity as at 31.12.2025 80.6 (5.2) 172.0 90.9 (157.4) 180.9 0.0 180.9
Specification of constituent
elements of equity:
• Share capital: par value for shares
in issue
•
Treasury shares: par value for own
shares and premium over par value
for own shares
•
Share premium: premium over par
value for shares in issue
• Other reserves: translation differ
-
ences, share options and OCI
•
Retained earnings: accumulated
retained profits and losses
•
Non-controlling interests: NCI
share in group’s equity
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 REPORTING ENTITY
Kongsberg Automotive ASA ("the company” or “the parent company’) and its subsidiaries (together
the “group”) develop, manufacture, and sell products to the automotive industry worldwide. The
company is a limited liability company incorporated and domiciled in Norway.
The address of its registered office is Dyrmyrgata 48, NO-3601 Kongsberg, Norway. The company
is listed on the Oslo Stock Exchange. The group’s consolidated financial statements were authorized
for issue by the Board of Directors on March 25, 2026.
NOTE 2 STATEMENT OF COMPLIANCE
The group’s consolidated financial statements have been prepared in accordance with IFRS
®
Accounting Standards (IFRS) and IFRIC interpretations as endorsed by the EU.
NOTE 3 MATERIAL ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial state-
ments are set out below. These policies have been consistently applied to all the years presented,
unless otherwise stated.
Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis except for certain
financial instruments that are measured at fair value, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or liability the group considers the characteristics of the asset or liability if mar-
ket participants would do so. Fair value for measurement and/or disclosure purposes in these consol-
idated financial statements is determined on such basis, except for share-based payment
transactions that are within the scope of IFRS 2, leasing transactions within the scope of IFRS 16, and
measurements that have some similarities to fair value but are not fair value, such as net realizable
value in IAS 2 or value-in-use in IAS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2.
or 3 based on the degree to which the inputs to the fair value measurement are observable and the sig-
nificance of the inputs to the fair value measurement in its entirety, which are described as follows:
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that
the entity can access at the measurement date
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly
• Level 3 inputs are unobservable inputs for the asset or liability
Basis of consolidation
The consolidated financial statements comprise the financial statements of Kongsberg Automotive
ASA and its subsidiaries as of December 31 each year. The financial statements of subsidiaries are
prepared for the same reporting periods as the company, using consistent accounting principles.
The consolidated financial statements incorporate the financial statements of the company and
entities controlled by the company (its subsidiaries) made up to December 31 each year. Control is
achieved when the company:
• has the power over the investee,
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The company reassesses whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of control listed above.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the
parent company obtains control directly or indirectly and continue to be consolidated until the date
when such control ceases. All intra-group assets and liabilities, equity, income, expenses, and cash
flows relating to transactions between members of the group are eliminated in full.
Changes in the parent company’s direct or indirect ownership interests in subsidiaries that do not
result in losing control of the subsidiaries are accounted for as equity transactions. The carrying
amounts of the controlling interests and non-controlling interests are adjusted to reflect the changes
in their relative interests in the subsidiary. Any difference between the amount by which the
non-controlling interests are adjusted and the fair value of the consideration paid or received is rec-
ognized directly in equity and attributed to owners of the parentüompany.
If the parent company loses its direct or indirect control of a subsidiary, the group should recog-
nize a gain or loss on the loss of control in the income statement, which is calculated as the difference
between (i) the fair value of the consideration received and the fair value of any retained interest and
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(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary
and any non-controlling interests. All components of the other comprehensive income (OCI) that are
attributable to the subsidiary are to be reclassified on the loss of control from the equity to the
income statement or directly to retained earnings.
Business combinations
Business combinations are accounted for using the acquisition method. The consideration trans-
ferred in a business combination is measured at fair value at the acquisition date, which is calculated
as the sum of the acquisition-date fair values of the assets transferred by the group, liabilities
incurred by the group to the former owners of the acquiree, and the equity interests issued by the
group in exchange for control of the acquiree. Acquisition-related costs are recognized in the income
statement as incurred.
At the acquisition date, the identifiable assets acquired and liabilities assumed are recognized at
fair value, except as noted below:
•
Deferred tax assets or liabilities arising from assets acquired and liabilities assumed shall be recognized
or measured in accordance with IAS 12
• Liabilities related to the acquiree’s employee benefit arrangements shall be recognized and measured
in accordance with IAS 19
• Right-of-use assets and lease liabilities shall be recognized and measured in accordance with IFRS 16
• A liability or an equity instrument related to share-based payment transactions of the acquiree or the
replacement of an acquiree’s share-based payment transactions with share-based payment transactions
of the acquirer shall be measured in accordance with IFRS 2
• Assets classified as held for sale and discounted operations are measured in accordance with IFRS 5
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the
acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent
settlement is accounted for within equity. Contingent consideration classified as an asset or liability
that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at
fair value with the changes in fair value recognized in the statement of profit or loss in accordance
with IFRS 9.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of
any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held
equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. Non-controlling interests that are present ownership
interests and entitle their holder to a proportionate share of the entity’s net assets in the event of
liquidation may be initially measured at fair value or a non-controlling interests’ proportionate share
of the recognized amounts of the acquiree’s identifiable net assets.
Where the fair value of the identifiable net assets acquired exceeds the aggregate of the consider-
ation transferred, the amount of this excess is recognized by the group as a gain from a bargain pur-
chase (badwill). Such a gain typically arises when a business is acquired for an amount that is less
than its fair market value. The group reassesses whether it has correctly identified all assets acquired
and liabilities assumed and reviews the procedures used to measure their fair values. Only after this
reassessment confirms the bargain purchase, the group recognizes the resulting gain. The gain from
a bargain purchase is recognized immediately in profit or loss on the acquisition date. The gain is
presented within “Other income” in the consolidated statement of profit or loss.
On January 13, 2025, the group entered into a call option agreement granting the right to acquire the
remaining 10,000 shares (75%) of Chassis Autonomy, in addition to the shares already previously
acquired. On August 13, 2025, KA exercised the option and purchased the additional 10,000 shares from
the four remaining shareholders for a purchase price of 1 SEK each, subject to Earn-Out conditions.
Through these transactions, the group obtained full control over employees, customer data, processes,
know-how, and other relevant resources, thereby meeting the IFRS 3 criteria for a business combination
and qualifying the transaction as a step acquisition. The previously acquired interest was remeasured
to the fair value implied by the controlling tranche acquired on August 13, 2025. It was concluded that
part of the Earn-Out arrangement represents remuneration for post-acquisition services, while the
remaining portion constitutes contingent consideration to be included in the purchase price and subse-
quent purchase price allocation. Post-combination services provided by employees or selling sharehold-
ers are not accrued at the acquisition date, but are recognized as compensation expense over the service
period. The acquisition resulted in a small bargain-purchase gain, as the fair value of the identifiable net
assets exceeded the consideration transferred. The resulting badwill was immaterial and recognized
immediately in profit or loss in accordance with IFRS 3. For additional details, refer to Note 17.
As of December 31, 2025, there is no non-controlling interest recognized in any subsidiary. In
2025, the remaining 25% of the shares in Kongsberg Automotive Morse Shanghai Co., Ltd. has been
acquired from the minority shareholder, Dongfeng Electronic Technology Co., Ltd.
Goodwill
Goodwill arising from business acquisitions is carried at cost established at the acquisition date, less
accumulated impairment losses (if any).
For the purposes of impairment testing, Goodwill is monitored by the management at the level of
each of the group’s cash-generating units (CGUs), which are part of the respective operating seg-
ments identified in note 7.
NOTE 3 MATERIAL ACCOUNTING POLICIES (CONTINUED)
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A cash-generating unit to which Goodwill has been allocated is tested for impairment annually, or
more frequently when there is an indication that the unit may be impaired. If the recoverable amount
of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to
reduce the carrying amount of Goodwill allocated to the unit and then the other assets of the unit
pro rata based on the carrying amount of each asset in the unit. Any impairment loss for Goodwill is
recognized directly in the income statement and is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of Goodwill is included
in the determination of the income statement on disposal.
Investments in associates
An associate is an entity over which the group has significant influence and that is neither a subsidiary nor
an interest in a joint venture. Significant influence is the power to participate in the financial and operat
-
ing policy decisions of the investee, but does not constitute control or joint control over those policies.
An investment in an associate is accounted for using the equity method from the date on which
the investee becomes an associate or a joint venture. On acquisition of the investment in an associate
or a joint venture, any excess of the cost of the investment over the group’s share of the net fair value
of the identifiable assets and liabilities of the investee is recognized as Goodwill, which is included
within the carrying amount of the investment.
Under the equity method, an investment in an associate is recognized initially in the consolidated
statement of financial position at cost and adjusted thereafter to recognize the group’s share of the
profit or loss and other comprehensive income of the associate or joint venture.
The statement of profit or loss reflects the group’s share of the results of operations of the associ-
ate. The aggregate of the group’s share of profit or loss of an associate and a joint venture is shown on
the face of the statement of profit or loss outside operating profit and represents profit or loss after
tax and non-controlling interests in the subsidiaries of the associate or joint venture.
Functional and presentation currency
In preparing the financial statements of each individual group entity, transactions in currencies
other than the entity’s functional currency are recognized using exchange rates at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies
are translated at the year-end exchange rates. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated using the exchange rates at the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.
For presentation purposes, the assets and liabilities of the group’s foreign operations are trans-
lated into euros using the exchange rates at the end of each reporting period. Income and expense
items are translated at the average exchange rates for the period. Exchange differences arising are
recognized in other comprehensive income, accumulated in equity, and attributed to non-controlling
interests as appropriate.
At the disposal of a foreign operation, all the exchange differences accumulated in equity in
respect of that operation attributable to the owners of the parent company are reclassified to the
income statement.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed
through the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation
and translated using the exchange rate at the end of each reporting period. Exchange differences aris
-
ing are recognized in comprehensive income.
Exchange differences on monetary items are recognized in the income statement (in financial items)
in the period in which they arise except for monetary items receivable from or payable to a foreign oper
-
ation for which the settlement is neither planned nor likely to occur (therefore forming part of the net
investment in the foreign operation). These are recognized initially in other comprehensive income
and reclassified from equity to the income statement on the repayment day of the monetary items.
The group presents its consolidated financial statements in euros. The parent company’s presenta
-
tion currency is the euro, and its functional currency was assessed to be changed from Norwegian
krone to euro effective January 1, 2025. This change eliminates foreign-exchange gains and losses on
EUR-denominated financial instruments and removes translation exposure related to the Norwegian
holding operations. All financial information presented in euros has been rounded to the nearest
thousand unless otherwise stated.
Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating
resources and assessing the performance of the operating segments, has been identified as the group’s
Executive Leadership Team (led by the CEO).
Intangible assets other than Goodwill
Internally generated intangible assets ‒ research and development expenditure
Research expenditures are expensed as incurred. An internally generated intangible asset arising from the
development of specific projects is recognized only when all the following criteria can be demonstrated:
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• The technical feasibility of completing the intangible asset so that it will be available for use or for
sale
• The entity’s intention to exercise the right to use or to sell the asset
• The entity’s ability to use or sell the intangible asset
• The entity’s asset will generate probable future economic benefits
• The availability of adequate resources to complete the development and to use or sell the asset
• The entity’s ability to reliably measure the expenditure incurred during its development
The amount initially recognized for the internally generated asset is the sum of the expenditure
incurred from the date when the intangible asset first meets the recognition criteria listed above.
Where no internally generated intangible asset can be recognized, development expenditure is
recognized in the income statement in the period in which it is incurred.
After initial recognition, internally generated intangible assets are reported at cost less accumu-
lated amortization and accumulated impairment losses. The amortization period is five years.
Software
Costs associated with maintaining computer software are expensed as incurred. Development costs
that are directly attributable to the design and testing of identifiable and unique software products
controlled by the group are recognized as intangible assets when the above-mentioned criteria are
demonstrated to be fulfilled.
Development expenses that do not meet these criteria are expensed as incurred and are not rec-
ognized as an asset in a subsequent accounting period.
Software costs are amortized over their estimated useful lives, which shall not exceed three years.
Other intangible assets – acquired in a business combination
Intangible assets acquired in a business combination and recognized separately from Goodwill are
initially recognized at their fair value at the acquisition date, which is regarded as their cost.
After initial recognition, intangible assets are reported at cost less accumulated amortization and
accumulated impairment losses.
The useful life of patents is considered to be up to 21 years. The useful life of customer relation-
ships is estimated to be 10 years.
Property, plant & equipment (PP&E)
PP&E are stated at historical cost less accumulated depreciation and impairment losses. The assets
are depreciated over their useful economic lives using the straight-line method.
Historical costs include expenditures that are directly attributable to the acquisition of the asset and
to make the non-current asset available for use. Subsequent costs, such as repair and maintenance
costs, are expensed when incurred unless increased future economic benefits arise as a result of
repair and maintenance work. Such costs are recognized in the Statement of Financial Position as
additions to non-current assets. Straight-line depreciation is calculated at the following rates:
• Land n/a
• Buildings 3–4%
• Production machinery and tooling 10–25%
• Computer equipment 33%
Right-of-use assets and lease liabilities
The group leases various manufacturing facilities, offices, warehouses, equipment, and vehicles.
Rental contracts are typically made for fixed periods of 6 months to 10 years but may have extension
or termination options.
Contracts may contain both lease and non-lease components. The group allocates the considera-
tion in the contract to the lease and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants other than the security interests in
the leased assets that are held by the lessor.
The group has applied the practical expedients provided by IFRS 16 to exclude low-value assets
and short-term leases (term of up to 12 months). The lease payments associated with these leases are
charged to the income statement on a straight-line basis and are reported under cash flow from
operating activities in the statement of cash flows. In addition, the expedient to include non-lease
components, such as service costs, in the lease calculation has been applied.
Assets and liabilities arising from a lease are initially measured on a present-value basis. Lease
liabilities include the net present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable
• Variable lease payments that are based on an index or a rate, initially measured using the index or rate
as at the commencement date
• Amounts expected to be payable by the group under residual value guarantees
• The exercise price of a purchase option if the group is reasonably certain to exercise that option
•
Payments of penalties for terminating the lease, if the lease term reflects the group exercising that option
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability.
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The lease payments should be discounted using:
• the interest rate implicit in the lease; or
• if the interest rate implicit in the lease cannot be readily determined, the lessee's incremental bor-
rowing rate.
The interest rate implicit in the lease is likely to be like the lessee’s incremental borrowing rate in
many cases. This is because both rates, as they are defined in IFRS 16, take into account the credit
standing of the lessee, the length of the lease, the nature and quality of the collateral provided, and
the economic environment in which the transaction occurs.
In June 2024, the group secured a new bond with a floating rate. Management determined that the
previous update to the group incremental borrowing rate was still applicable given the coupon rate of
the new bond in addition to the fact that no new significant leases were signed in 2024. Going forward,
based on the floating rate nature of the bond and the current interest rate climate, the IBR will be
assessed annually.
The group is exposed to potential future increases in variable lease payments based on an index or
rate, which are not included in the lease liability until they take effect. When adjustments to lease pay
-
ments based on an index or rate take effect, the lease liability is reassessed and adjusted against the
right-of-use asset.
Lease payments are allocated between principal payments and finance cost. The finance cost is
charged to the income statement over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period. For the classification in the statement
of cash flow, the interest payments on the lease liabilities follow the same principles as other interests.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of the lease liability
• Any lease payments made at or before the commencement date less any lease incentives received
• Any initial direct costs
• Restoration costs
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease
term on a straight-line basis. If the group is reasonably certain to exercise a purchase option, the
right-of-use asset is depreciated over the underlying asset’s useful life. The group assesses its right-
of-use assets for impairment after any significant changes in operations as well as on an annual
basis. This assessment of individual right-of-use assets for impairment is performed in addition to
the group’s overall impairment testing.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value
assets are recognized on a straight-line basis as an expense in the income statement. Short-term
leases are leases with a lease term of 12 months or less.
The group uses tooling equipment that is owned by specific customers to produce parts for the
customer. Under the new standard, these contracts do not constitute a lease as the group has no
authority to direct the use of the equipment.
Taxes on leases
In most of the jurisdictions in which the group operates, tax deductions are received for lease pay-
ments as they are paid, thus the tax base of the right-of-use asset as well as the lease liability is zero
at the inception of the lease. Subsequently, as the straight-line depreciation of the assets exceeds the
rate at which the debts reduce, a net liability arises resulting in a deductible temporary difference on
which a deferred tax asset is recognized if recoverable.
Impairment of PP&E, intangible assets (other than Goodwill) and right-of-use assets
The group tests on each reporting date whether these assets have suffered any impairment as well as if
any indication arises, due to changes in circumstances, that the carrying amount is not fully
recoverable.
The recoverable amount of the asset is determined in order to assess the extent of the impairment
loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the
group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When
a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the smallest group of cash-gener-
ating units for which a reasonable and consistent allocation basis can be identified.
The recoverable amount of an asset is the greater of its fair value less costs of disposal and its value
in-use. In assessing value-in-use, the estimated future cash flows are discounted to their present value
using a post-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carry-
ing amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable
amount. An impairment loss is recognized immediately in the income statement.
Upon indication that an impairment loss may no longer exist or may have decreased, the carrying
amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable
amount, however not exceeding the carrying amount that would have been determined had no impair-
ment loss been recognized for the asset or cash-generating unit in prior years.
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Inventories
Inventories are stated at the lower of cost and net realizable value. The cost of inventories is determined
at standard cost with capitalizable variances being capitalized at balance sheet date. Cost of raw mate-
rials comprise purchase price, inbound freight, and import duties. Cost of finished and semi-finished
goods includes variable production costs and fixed costs allocated based on normal capacity.
Interest costs are not included. Net realizable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale. Value adjust-
ments are made for obsolete materials and excess stock.
Financial instruments
Financial assets and financial liabilities are recognized when a group entity becomes party to the
contractual provisions of the instrument.
Financial assets and liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized immediately in the income statement.
Financial assets
Subsequent measurement
All recognized financial assets are subsequently measured at either amortized cost or fair value
based on the business model for managing the financial assets and the contractual cash flow charac-
teristics of the financial assets.
The group holds loans and receivables (including trade receivables and other receivables, bank
balances, and cash) within the business model that aims to collect the contractual cash flows.
Consequently, these assets are subsequently measured at amortized cost using the effective
interest method, less any potential impairment.
Amortized cost and effective interest method
The effective interest method is a method of calculating the amortized cost of a debt instrument and
of allocating interest income over the relevant period.
Impairment of financial assets
The group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortized cost. For trade receivables, the group applies the simplified
approach which requires expected lifetime losses to be recognized from initial recognition of the
receivables. See note 17 for further details.
Derecognition
The group derecognizes a financial asset when the contractual rights to the cash flow from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of owner-
ship of the asset to another party.
Financial liabilities
The group recognizes and measures its financial liabilities (including borrowings and trade and
other payables) at amortized cost using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a debt instrument
and allocating interest income over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs, and other premiums or dis-
counts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to
the net carrying amount on initial recognition.
The group derecognizes financial liabilities when, and only when, the group’s obligations are dis-
charged, canceled, or have expired. The difference between the carrying amount of the financial lia-
bility derecognized and the consideration paid and payable is recognized in profit or loss.
Taxes payable and deferred taxes
The tax expense for the period comprises current and deferred tax. Tax is recognized in the income
statement, except to the extent that it relates to items recognized in other comprehensive income or
directly in equity. In this case, the tax is also recognized in other comprehensive income or directly
in equity, respectively.
The current tax payable is based on taxable profit for the year. Taxable profit differs from “profit
before tax” because of items of income or expense that are taxable or deductible in other years and
items that are never taxable or deductible. The group’s current income tax charge is calculated on the
basis of the tax laws enacted in the countries in which the company’s subsidiaries operate.
Deferred income tax is recognized, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements, using tax rates that have been enacted or substantively enacted by the balance sheet date
and are expected to apply when the deferred tax asset is realized, or the deferred tax liability settled.
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Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will
be available, against which the temporary differences can be utilized. Deferred tax positions are
netted within the same tax entity.
Employee benefits ‒ retirement benefit cost and termination benefits
Payments to defined contribution retirement benefit plans are recognized as an expense when
employees have rendered service entitling them to the contributions.
For defined benefit retirement plans, the cost of providing benefits is determined by using the
projected unit credit method, with actuarial valuations being carried out at the end of each annual
reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to
the asset ceiling (if applicable), and the return on plan assets (excluding interest), is reflected imme-
diately in the statement of financial position with a charge or credit recognized in other comprehen-
sive income in the period in which they occur. Remeasurement recognized in other comprehensive
income is reflected immediately in retained earnings and will not be reclassified to the income state-
ment. Past service cost is recognized in the income statement when the amendment of a plan
occurred. Net interest is calculated by applying the discount rate at the beginning of the period to
the net defined benefit liability or asset.
Defined benefit costs are categorized as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on curtail-
ment and settlements),
• Net interest expense or income on benefit obligations and/or plan assets,
• Remeasurement, and
• Administration costs.
The group presents the first two components of defined benefit cost in the income statement in the line
item salaries and social expenses. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognized in the statement of financial position represents the
actual deficit or surplus in the group’s defined benefit plans. Any surplus resulting from this calcula-
tion is limited to the present value of any economic benefits available in the form of refunds from the
plans or reductions in future contributions to the plans.
A liability for termination benefits is recognized at the earlier of when the entity can no longer with-
draw the offer or the termination benefit or when the entity recognized any related restructuring costs.
Pension plans in the group
The company and its Norwegian subsidiary Kongsberg Automotive AS have defined benefit and
defined contribution pension plans. The plans were changed from defined benefit to defined contri-
bution in 2004. The defined benefit plan was continued for employees who had already retired.
Defined benefit pension plans also exist in two subsidiaries in Germany (closed pension plans
for both German subsidiaries), one subsidiary in France, and one subsidiary in Switzerland. The
other subsidiaries have either no pension plan or defined contribution pension plans for
employees.
The former early-retirement arrangement in Norway was replaced in 2011. Financing of the
early-retirement arrangement is now done by an annual fee, which represents the final cost for the
companies included. The arrangement is defined as a multi-employer plan and is accounted for as a
defined contribution pension plan. Norwegian employees are included in this scheme.
The defined contribution plans in Norway have legislative limitations when it comes to maximum
salary as a calculation basis for tax-deductibility. Norwegian employees with salaries that exceed
this limit will be granted an addition to the pension that includes the salary above the maximum
limit. This obligation will only materialize if the person is employed in the company at the time of
retirement. This plan is accounted for as a defined benefit pension plan.
In the case of defined contribution plans, the contributions are recognized as expense in the
period in which they occurred.
Short-term and other long-term employee benefits
A liability is recognized for benefits employees are entitled to in respect of wages and salaries, annual
leave, and sick leave for the period the related service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for the service.
Liabilities recognized in respect of short-term employee benefits are measured at the undis-
counted amount of the benefits expected to be settled before twelve months after the end of the
reporting period in exchange for the related service rendered during the financial reporting period.
Termination benefits are considered a separate category of employment benefits because the
event that gives rise to an obligation is the termination of employment rather than employee service.
Termination benefits are typically lump-sum payments, but sometimes also include salary pay-
ments until the end of a specified notice period if the employee renders no further service that pro-
vides economic benefits to the entity. Termination benefits are accrued upon signature of the
contract.
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Deferred cash-based and share-based payments
For 2025, KA has a new LTI plan for top executives replacing the previous share-based plans. This is a
cash-based plan and consists of an LTI cash payout occurring one year after the plan is communi-
cated to participants. The final LTI cash payout is directly linked to the STI outcome, which is based
on the ROCE level achieved. Given the direct link to STI, the same trigger applies for the LTI cash
payout (i.e. EBT must be positive after STI payout considerations). After the LTI cash payout is made,
participants are obliged to use the net amount to purchase KA shares and to hold them for two years
(lock-in period). The LTI cash payout is capped and there is no overachieving in the payout. The indi-
vidual LTI value is linked to base salary and the role and responsibility. The LTI plan is approved
annually by the Board. No expense was recorded in 2025 in relation to the 2025 LTI plan.
KA has legacy share-based remuneration plans for eligible top executives coming from plans
granted in 2023 and 2024 which consist of two equity instruments: Performance Stock Units (PSU)
and Restricted Stock Units (RSU). Both instruments are based on a service condition to vest. In addi-
tion, the PSU evaluation is based on three performance conditions: total shareholder return (TSR)
versus a defined peer group, one financial target, and one ESG target. The plans will vest three years
after the grant date, in 2026 and 2027, respectively per plan.
Equity-settled share-based payments to employees and others providing services are measured
at the fair value of the equity instruments at the grant date. Details regarding the determination of
the fair value of equity-settled share-based transactions are set out in note 18.
Provisions
Provisions are recognized when a) the group has a present obligation (legal or constructive) because
of a past event, b) it is probable that the group will be required to settle the obligation, and c) the
amount of the obligation can be reliably estimated.
The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, considering the risks and uncertainties sur-
rounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, the carrying amount is the present value of those cash flows (when the effect of
the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognized as an asset only if it is virtually certain that
reimbursement will be received, and the amount of the receivable can be measured reliably.
Onerous contracts
Present obligations arising under onerous contracts are recognized and measured as provisions.
An onerous contract is considered to exist where the group has a contract under which the unavoida-
ble costs of meeting the obligations under the contract exceed the economic benefits expected to be
received under the contract.
Restructuring provisions
A restructuring provision is recognized when the group has developed a detailed formal plan for the
restructuring and has raised a valid expectation in those affected that it will carry out the restruc-
turing by starting to implement the plan or announcing its main features to those affected by it. The
measurement of a restructuring provision includes only the direct expenditures arising from the
restructuring, which are those amounts that are both necessarily entailed by the restructuring and
not associated with the ongoing activities of the entity.
Warranties
Provisions for the expected cost of warranty obligations under local sale of goods legislation are
recognized, at management’s best estimate of the expenditure required to settle the group’s
obligation. As soon as a claim is raised and agreed to by KA, the provision to date is recognized based
on the estimated defective parts sold so far, and warranty costs continue to be recorded on the
ongoing sales until the underlying issue is solved. The estimate of warranty-related costs is reviewed
and revised quarterly.
Government grants
Government grants are not recognized until there is reasonable assurance that the group will comply
with the conditions attached to them and that the grants will be received. Government grants that
are receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the group with no future related costs are recognized in profit or loss
in the period in which they become receivable.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the entity
after deducting all its liabilities. Equity instruments issued by the company are recognized at the
proceeds received, net of direct issue costs.
Repurchase of the company’s own equity instruments is recognized and deducted directly
in equity. No gain or loss is recognized in the income statement on the purchase, sale, issue or
cancelation of the company’s own equity instruments.
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Revenue recognition
The group is in the business of providing products to the global vehicle industry. In doing so, the
group provides services covering engineering and tooling, as well as the manufacturing and delivery
of automotive parts. Engineering services are the development of customized designs in collabora-
tion with the customer. Tooling is the provision of tools such as cutting tools and molds needed in the
manufacturing of parts. Tooling can be highly customized or developed to produce standardized
products to a wider range of customers. Product parts are the continuous supply of automotive parts
such as shifters, shifter cables, drive control systems, and fluid handling systems.
Engineering, tooling, and product sales may be contracted in separate agreements (concluded at
different points in time) or may be contracted in one agreement. In either case, any binding obliga-
tion for the customer with respect to parts is created only upon issuance of purchase orders. The
group has determined that engineering, tooling, and the delivery of product parts are separate and
distinct for the customer and therefore constitute separate performance obligations under IFRS 15,
which are fulfilled upon transfer of control. As is normal in the automotive industry, the customer
does not guarantee that it will purchase a minimum quantity of parts. The prices agreed in the con-
tracts for the single performance obligations are considered to be the stand-alone selling prices and
are therefore used for recognizing revenue.
Engineering
Before manufacturing and sale of automotive parts begins, the group normally undertakes application
engineering to tailor the design of a part to customer needs. Where the control resulting from the
engineering is transferred to the customer, the group recognizes any consideration received from the
customer as revenue. The group has determined that the performance obligation from engineering is
satisfied at a point in time and upon transfer of control over the results of the engineering.
Transfer of control normally takes place when engineering is complete, and the tooling phase is ini-
tiated. Consideration received from the customer may be agreed as installments following the progress
of the engineering, as a lump-sum payment upon completion of the engineering phase, or may be
explicitly included in the piece price over a certain specific sales volume. Consideration received in
advance is deferred and recognized as contract liability. Any consideration to be received through the
allocation to the piece price is recognized as revenue and accrued as a receivable upon transfer of con-
trol to the customer only if the consideration for the engineering is a guaranteed amount.
Tooling
After the engineering phase, and before manufacturing and sale of automotive parts begins, the group
manufactures, or has manufactured, the tooling for use in the subsequent production of automotive
parts. Where the control of tooling is transferred to the customer, the group recognizes any consider
-
ation received from the customer as revenue. The group has determined that the tooling performance
obligation is satisfied at a point in time and upon finally approved transfer of control over the tooling
to the customer. Transfer of control normally takes place in connection with start of production of the
automotive parts. Consideration from the customer may be agreed as installments following the
manufacturing progress of the tooling, as a lump-sum payment upon final approval of the tooling by
the customer or may explicitly be included in the piece price. Revenue is recognized at a point in time
upon transfer of control and final approval of the tooling by the customer. Consideration received in
advance of transfer is deferred and recognized as a contract liability. Any consideration to be received
through piece price is recognized as revenue and accrued as a receivable upon approval of the tooling
by the customer only if the consideration for the tooling is a guaranteed amount.
Product sales
The sale of manufactured automotive products is satisfied upon transfer of control of the automotive
products to the customer, which in general is upon delivery to the customer. Each delivery is consid-
ered as a performance obligation that is satisfied at a point in time.
Variable consideration
Revenue will be recognized to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
A few contracts with customers entitle the customer to price reductions after exceeding defined
volume thresholds per year. Such variable considerations are estimated based on continuously
updated volume projections.
As is common industry practice, most of the contracts have variable elements in the form of year-
on-year price reductions or staggered rebates. The group has determined that the price reductions
reflect the competition in the industry and therefore are not to be considered as a loyalty bonus.
Revenue recognition is therefore based on the sales price for each delivery to the customer.
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Warranty obligations
The group generally provides warranties for general repairs and does not provide extended warran-
ties in its contracts with customers. As such, most existing warranties will be assurance-type war-
ranties under IFRS 15, which will continue to be accounted for under IAS 37 Provisions, Contingent
Liabilities and Contingent Assets, consistent with its current practice.
Incremental contract costs
Incremental costs are costs that would not have been incurred had that individual contract not been
obtained, e.g. nomination fees. These costs are recognized as an asset if they are expected to be
recovered from the customer through the awarded contract.
An asset recognized as part of the capitalization of contract costs is amortized on a systematic
basis that is consistent with the transfer to the customer of the goods or services to which the asset
relates. In case of nomination fees, the recognized amortization for the period shall be presented as a
reduction of the external sales and recorded on the appropriate income statement account.
NOTE 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
In application of its accounting policies, the group is required to make judgments, estimates, and
assumptions about the carrying amounts of assets and liabilities that are not readily available from
other sources. The estimates and judgments are based on historical experience and other factors,
including expectations of future events that are deemed to be reasonable under the circumstances.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects both
current and future periods.
Critical judgments in applying accounting policies
The following are the critical judgments that the group has made in the process of applying the
group’s accounting policies and that have the most significant effect on the amounts recognized in
the financial statements.
Lease extension and termination options
The group has a number of leases with options to terminate early or extend the term of the lease.
When determining the lease liability of the group, the following principles were applied to options. No
leases will be terminated early as the leases are necessary for the regular operations of the group unless
there are clear indications otherwise. All extension options on buildings and equipment used in pro-
duction, sales, and engineering have been included in the lease liability, as these are core operations
that require significant investment to move and are therefore reasonably certain to be kept in use for
as long as possible under current conditions, unless there are clear indications otherwise. Leases used
in administrative and supporting functions were determined to be more flexible and were therefore
individually assessed by management to determine if they met the reasonably certain criteria.
Incremental borrowing rate used to discount the lease payments
More than 90% of the value of right-of-use assets relates to buildings. As any lease building by any
subsidiary (lessee) requires a guarantee from the group, the credit standing of any lessee does not
exceed the group’s credit standing.
In addition, in June 2024, the group issued a new bond with a floating interest rate. Management
determined that the previously updated group incremental borrowing rate remained appropriate,
given the coupon rate of the new bond and the fact that no significant new leases were entered into
in 2024. Looking ahead, considering the bond’s floating rate and the prevailing interest rate environ-
ment, the IBR will be evaluated annually.
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Consolidation of SPE
On September 25, 2020, the company entered into an accounts receivable securitization program (the
“Program”) where trade receivables generated by the company’s subsidiaries in the United States,
Canada, Slovakia, and Poland were sold to Kongsberg Automotive Finance B.V., a special purpose entity
domiciled and incorporated in the Netherlands (the “SPE”). As sales of the company’s products to cus
-
tomers occurred, trade receivables were sold to the SPE at an agreed upon purchase price. Part of the con-
sideration was received upfront in cash and part was deferred in the form of senior subordinated and
junior subordinated loans notes issued by the SPE to the parent company and Kongsberg Automotive AS.
In determining whether to consolidate the SPE, the company has evaluated whether it has control
over the SPE, in particular, whether it is exposed, or has rights, to variable returns from its involve-
ment with the investee and has the ability to affect those returns through its power over the
investee.
Receivables are sold to the SPE under a true sale opinion with legal interest transferred from the
selling subsidiaries to the SPE. While the sale of receivables to the SPE is without credit recourse, the
company continues to be exposed to the variable returns from its involvement in the SPE, as it is
exposed to credit risk as a subordinated lender to the SPE and it earns a variable amount of remuner-
ation as master servicer of the receivables, as well as any excess return from additional service fee,
including the loss or gain due to the effect of foreign exchange rates.
As master servicer, the company is responsible for the cash collection and management of any
impaired receivables. Therefore, the company is considered to have control over the SPE, as it is
exposed to variable returns and has the ability to affect those returns through its power over the
investee.
As a result of consolidating the SPE, the trade receivables purchased by the SPE are included in
the company’s consolidated statement of financial position, along with loans (see note 21) and cash
held by the SPE.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future and other key sources of estimation
uncertainty at the end of the reporting period that may have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year.
Impairment
Determining whether goodwill and other assets are impaired requires an estimation of the value-in
use of the cash-generating units to which these assets have been allocated. The value-in-use calcula-
tion requires the group to estimate the future cash flows expected to arise from the cash-generating
NOTE 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
unit and provide a suitable discount rate in order to calculate present value. Where the actual future
cash flows are less than expected, a material impairment loss may arise.
The cash-generating units in the group are the business units (Drive Control Systems segment
consisting of: On-Highway, Off-Highway, Driveline, Electric Actuators and Headrest; Flow Control
Systems segment consisting of: Fluid Transfer System and Couplings). In 2025, the Driveline (exclud-
ing Electric Actuators) segment (previously presented as Other operations in 2024) has been incor-
porated into the Drive Control System segment. Figures for 2024 have been accordingly restated in
note 7 to reflect this change in segment reporting. The forecasts of future cash flow are based on the
group’s best estimates of future revenues and expenses for the cash-generating units to which these
assets have been allocated. Various assumptions and estimates can have significant effects on these
calculations and include parameters such as macroeconomic assumptions, market growth, business
volumes, margins, and cost effectiveness. Changes to any of these parameters, following changes in
the market conditions, competition, strategy, or other factors, affect the forecasted cash flow and
may result in impairment.
The carrying amount of Goodwill as at December 31, 2025 was MEUR 68.0 (2024: MEUR 73.8). No
impairment losses were recognized in 2025. Details of the impairment test are set out in note 15.
Climate change
Kongsberg Automotive faces both climate change-related risks and opportunities arising from cli-
mate change itself and from actions taken in climate change mitigation. These are embedded in the
company’s risk management and business strategy.
The financial implications of the risks of climate change can be classified into two types of risks:
physical risks and transition risks. Physical risks are related to the increase and severity of extreme
weather and long-term climate changes. Transition risks are related to decarbonization including
new technological advances and requirements imposed by regulators or public opinion. Both are
considered in the company’s risk assessment as part of the annual budget process and in impairment
testing at year end. There is still significant uncertainty about the future financial impact of climate
risks and opportunities. During the budget process, several scenarios are considered, and the best
estimate is included in the assumptions for the final budget.
In addition to the annual assessment, climate change governance is embedded in the group’s
structure, with operational and strategic climate change issues raised being reviewed regularly by
the designated bodies.
As at year-end 2025, climate risk changes have not resulted in adjustments to the useful lives of
long-term assets. Further, climate-related risk considerations have not resulted in adjustments of the
carrying amounts of assets or liabilities.
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NOTE 5 NEW STANDARDS AND INTERPRETATIONS
New and amended standards and interpretations
The group applied for the first-time certain amendments to the standards, which are effective for
annual periods beginning on or after January 1, 2025. The group has not chosen to adopt any stand-
ards, interpretations, or amendments early that have been issued but are not yet effective.
New and amended IFRS Standards that are effective for the current year
The adoption of the following standards and interpretations has not had any material impact on the
disclosures or on the amounts reported in these financial statements:
• Amendments to IAS 21 – The effects of changes in foreign change rates – Lack of Exchangeability.
New and amended standards and interpretations not yet adopted
At the date of the authorization of these financial statements, the group has not applied the follow-
ing new and revised IFRS Standards that have been issued but are not yet effective:
• Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments &
Contracts referencing nature-dependent electricity (effective from January 1, 2026)
• IFRS 18 – Presentation and Disclosure in Financial Statements (effective from January 1, 2027)
• IFRS 19 – Subsidiaries without Public Accountability: Disclosures (effective from January 1, 2027).
The group does not expect that the adoption of the Standards listed above will have a material
impact on the financial statements of the group in future periods.
Even though IFRS 18 will not have an impact on the recognition and measurement of items in the
financial statements, its impact on presentation and disclosure are expected to be pervasive, in par-
ticular those related to the statement of comprehensive income, the statement of cash flows, and the
provision of management-defined performance measures within the financial statements. The
group is currently working to identify all impacts the amendments will have on the primary finan-
cial statements and notes to the financial statements.
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NOTE 6 SUBSIDIARIES
CONSOLI-OWNED COUNTRY OF OWNER-DATION BY ENTITY NAME INCOR PORA TIONSHIPMETHODCOMPANYKongsberg Automotive Ltda Brazil 100% Full XKongsberg Inc Canada 100% FullKongsberg Automotive (Wuxi) Ltd China 100% Full XKongsberg Automotive Morse Shanghai Co., Ltd* China 100% FullKongsberg Driveline Systems SAS France 100% FullKongsberg Raufoss Distribution SAS France 100% FullSCI Immobilière La Clusienne France 100% FullKongsberg 1 GmbH Germany 100% FullKongsberg Actuation Systems GmbH Germany 100% FullKongsberg Automotive GmbH Germany 100% FullKongsberg Driveline Systems GmbH Germany 100% FullKongsberg Actuation Systems LtdGreat Britain100% FullKongsberg Automotive Hong Kong LtdHong Kong100% FullKongsberg Automotive (India) Private Ltd India 100% Full XKongsberg Automotive LtdKorea100% Full XKongsberg Driveline Systems S. de RL de CV Mexico 100% FullKongsberg Fluid Transfer Systems, S. de R.L. de CVMexico 100% FullKongsberg Actuation Systems BV Netherlands 100% FullKongsberg Automotive AS Norway 100% FullKongsberg Automotive Holding 2 AS Norway 100% Full XKongsberg Automotive Sp. z.o.o Poland 100% FullKongsberg Automotive s.r.o Slovakia 100% FullKongsberg Actuation Systems SL Spain 100% FullKongsberg Automotive AB Sweden 100% Full
* In Q3 2025, the remaining 25% of the shares was acquired from the minority shareholder, Dongfeng
Electronic Technology Co., Ltd.
** Special Purpose Entity (the "SPE") – consolidation is based on the assessment of control according to IFRS 10
(for further information, see note 4)
*** In Q3 2025, Kongsberg Automotive decided to take full ownership of the entity and acquired the remaining
shareholding from the existing shareholders.
CONSOLI-OWNED COUNTRY OF OWNER-DATION BY ENTITY NAME INCOR PORA TIONSHIPMETHODCOMPANYKongsberg Power Products Systems AB Sweden 100% FullKA Group AG Switzerland 100% FullKongsberg Driveline Systems I LLC. US 100% FullKongsberg Actuation Systems II LLC. US 100% FullKongsberg Holding III Inc. US 100% FullKongsberg Automotive Inc. US 100% FullKongsberg Power Products Systems I LLC. US 100% FullKongsberg Automotive Finance BV** Netherlands 100% FullChassis Autonomy AB*** Sweden 100% FullEntities liquidated/merged in 2025 and 2024:Kongsberg Automotive SARL France 100%Liquidated in 2024Kongsberg Automotive Ltd Great Britain 100%Liquidated in 2024CTEX Seat Comfort (Holding) Ltd Great Britain 100%Liquidated in 2024Kongsberg Power Products Systems Ltd Great Britain 100%Liquidated in 2024Kongsberg Automotive Japan KK Japan 100%Liquidated in 2024Kongsberg Automotive Driveline System Merged in 2025 India 100%India Ltd with Kongsberg Automotive (India) Kongsberg Automotive Technology Center India 100%Private LtdIndia Private Ltd
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NOTE 7 SEGMENT INFORMATION
Operating segments
As of December 31, 2025, the group had two reportable segments, which are the strategic core busi-
ness segments: Drive Control Systems (DCS) and Flow Control Systems (FCS). In Q3 2025, the
Driveline (excluding Electric Actuators) segment (previously presented as Other operations in 2024)
was incorporated into the Drive Control System segment. Following the adoption of new segment
structure from January 1, 2025, figures in 2024 have been restated accordingly to reflect this
change.
To enhance segment accountability for all attributable group costs, a new reporting approach
was implemented on January 1, 2025, under which all costs previously included in the Corporate &
Other segment are allocated to the reportable segments (DCS & FCS). The allocation is performed
based on usage, applying Sales and FTE as the primary drivers. As this constitutes a change in
accounting policies, the prior year’s periods have been restated.
The strategic business areas (segments) offer different products and services and are managed
separately because they require different technology and marketing strategies. The group’s risks and
rates of return are affected predominantly by differences in the products manufactured. The seg-
ments have different risk profiles in the short-term perspective, but over a long-term perspective the
profiles are considered to be the same. The group’s Executive Leadership Team (led by the CEO)
reviews the internal management reports from all strategic business areas on a monthly basis.
Information regarding the results of each reportable segment is included below. Performance is
measured by EBITDA, EBIT, and ROCE as included in the internal management reports issued on a
monthly basis. Segment EBIT is used to measure performance, as management believes that such
information is the most relevant in evaluating the results of the segments (also relative to other
entities that operate within these industries).
Sales transactions and cost allocations between the business units are based on the arm’s length
principle. The results for each segment and the capital allocation elements comprise both items that
are directly related to and recorded within the segment, as well as items that are allocated based on
reasonable allocation keys.
The following summary describes the operations of each of the group’s core reportable segments:
Drive Control Systems
Drive Control Systems develops and manufactures a comprehensive range of drive control products
for heavy- and light-duty vehicles, including clutch actuation systems, advanced vehicle systems,
operator control systems for construction, agriculture, outdoor power equipment, and power
electronics-based products. Drive Control Systems serves the commercial vehicle, off-highway, and
passenger car markets, with particularly strong positions in Europe and the Americas.
Flow Control Systems
Flow Control Systems designs and manufactures fluid handling systems for both the passenger cars
and commercial vehicles markets, as well as industrial applications and couplings systems for com-
pressed-air circuits in heavy-duty vehicles.
Profit and loss statementFY 2025 FY 2024DRIVE FLOW DRIVE FLOW CONTROL CONTROL TOTAL CONTROL CONTROL TOTAL MEURSYSTEMSSYSTEMSGROUPSYSTEMSSYSTEMSGROUPRevenues* 414.3 298.5 712.8 480.9 307.3 788.2 EBITDA 13.0 30.7 43.7 24.4 24.1 48.5 Depreciation (15.0) (14.2) (29.2) (14.7) (14.4) (29.1)Amortization (0.8) (0.1) (0.9) (0.6) (0.1) (0.7)EBIT (2.8) 16.4 13.6 9.1 9.6 18.7 Impairment losses (-) and Reversal of impairment (1.5) (1.2) (2.7) 4.6 0.4 5.0 losses (+), thereof:- allocated to Goodwill 0.0 0.0 0.0 0.0 0.0 0.0 - allocated to assets other (1.5) (1.2) (2.7) 4.6 0.4 5.0 than GoodwillTiming of revenue recognitionOwnership transferred 414.3 298.5 712.8 480.9 307.3 788.2 at a point in time
* For segment reporting purposes, revenues are only external revenues; related expenses are adjusted accordingly.
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Balance sheetFY 2025 FY 2024DRIVE CONTROL FLOW CONTROL CORPORATE TOTAL DRIVE CONTROL FLOW CONTROL CORPORATE TOTAL MEURSYSTEMSSYSTEMS& OTHER*GROUPSYSTEMSSYSTEMS& OTHER*GROUPAssets and liabilitiesGoodwill 16.1 52.0 0.0 68.1 16.5 57.3 0.0 73.8 Other intangible assets 7.5 4.6 0.4 12.5 6.2 4.5 0.1 10.8 Property, plant, and equipment 43.1 59.0 1.4 103.5 51.5 63.7 2.1 117.3 Right-of-use assets 18.2 29.0 4.2 51.4 18.9 32.9 3.0 54.8 Inventories 33.9 42.4 0.0 76.3 38.1 42.4 0.0 80.5 Trade receivables 80.2 47.1 0.4 127.7 89.1 51.9 0.0 141.0 Other assets 3.8 2.4 0.0 6.2 3.6 3.6 0.0 7.2 Segment assets 202.8 236.5 6.4 445.7 223.9 256.3 5.2 485.4 Unallocated assets 119.4 119.4 117.5 117.5 Total assets 202.8 236.5 125.8 565.1 223.9 256.3 122.7 602.9 Trade payables 49.8 27.8 1.3 78.9 50.9 31.2 2.7 84.8 Accrued expenses 24.4 14.7 2.5 41.6 31.5 11.5 3.3 46.3 Provisions 23.6 0.1 2.4 26.1 12.6 0.3 3.0 15.9 Non-current lease liabilities 18.7 33.0 3.7 55.4 22.9 37.4 3.5 63.8 Current lease liabilities 6.2 3.0 1.0 10.2 6.3 2.6 1.0 9.9 Segment liabilities 122.7 78.6 10.9 212.2 124.2 83.0 13.5 220.7 Unallocated assets 172.0 172.0 179.2 179.2 Total liabilities 122.7 78.6 182.9 384.2 124.2 83.0 192.7 399.9 Total equity 180.9 180.9 203.0 203.0Total equity and liabilities 122.7 78.6 363.8 565.1 124.2 83.0 395.7 602.9 Capital expenditure (7.2) (9.1) 0.0 (16.3) (9.9) (14.2) (0.6) (24.7)
* The column “Corporate & Other” mainly includes balance sheet items related to tax, pension, and financing.
The figures presented in this table were restated following the adoption of a new segment structure.
NOTE 7 SEGMENT INFORMATION (CONTINUED)
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NOTE 7 SEGMENT INFORMATION (CONTINUED)
Operating segments – reconciliation to total assets MEUR 2025 2024Segment assets of reportable segments 439.3 480.2Assets of segment “Corporate & Other” 6.4 5.2 Unallocated assets include:Deferred tax assets 8.5 10.0 Investments accounted for using the equity method 0.0 0.7 Other non-current assets 2.2 1.7 Cash and cash equivalents 90.8 84.3Other current receivables 17.9 20.8 Total assets of the group 565.1 602.9
Operating segments – reconciliation to total liabilities MEUR 2025 2024Trade payables of reportable segments 77.6 82.1 Accrued expenses of reportable segments 39.1 43.0 Provisions of reportable segments 23.7 12.9 Non-current lease liabilities of reportable segments 51.7 60.3 Current lease liabilities of reportable segments 9.2 8.9 Liabilities of segment “Corporate & Other” 10.9 13.5 Unallocated liabilities include:Deferred tax liabilities 20.3 25.4 Retirement benefit obligations 10.1 13.0 Interest-bearing loans and borrowings 133.1 132.5 Other non-current interest-free liabilities 1.0 0.8 Current income tax liabilities 0.8 1.3 Other short term liabilities 6.7 6.2 Total liabilities of the group 384.2 399.9
Operating segments – geographical areas
The following segmentation of the group’s geographical sales to external customers is based on the
geographical locations of the customers. The segmentation of non-current assets is based on the
geographical locations of its subsidiaries. Non-current assets comprise intangible assets (including
Goodwill), right-of-use assets, and property, plant, and equipment.
Sales to external customers by geographical location MEUR 2025 % 2024 %Europe 322.6 45.3% 344.9 43.8%North America 237.4 33.3% 271.4 34.4%South America 46.6 6.5% 46.3 5.9%Asia 101.6 14.3% 122.0 15.5%Other 4.6 0.6% 3.6 0.4%Revenues 712.8788.2
Intangible assets, PP&E, and RoU by geographical location MEUR 2025 % 2024 %Europe 141.6 60.1% 146.4 57.0%North America 74.4 31.6% 86.5 33.7%South America 1.3 0.6% 1.6 0.6%Asia 18.2 7.7% 22.2 8.7%Total intangible assets, PP&E, and RoU235.5256.7
Major customers
Included are revenues of MEUR 101.1 in 2025 (2024: MEUR 100.8) which arose from sales to the
group’s largest customer. One single customer contributed 10% or more to the group’s revenues in
2025.
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MEUR 2025 2024Wages and salaries 147.5 162.6 Social security tax 30.1 31.4 Severance payments 1.5 2.7 Pension cost, defined benefit plans 0.1 1.0 Pension cost, defined contribution plans 6.8 7.8 Other employee-related expenses* 25.9 29.1 Total salaries and social expenses 211.9 234.6
MEUR 2025 2024Gain on external sale of non-current assets 0.4 0.1 Subsequent proceeds from sale of major operations 1.7 1.9 Income from sub-leases 0.2 0.2Income from compensation received 0.0 2.8Total other income 2.3 5.0
NOTE 8 SALARIES AND SOCIAL EXPENSES
Specification of salaries and social expenses as recognized in the statement
of comprehensive income
NOTE 9 OTHER INCOME AND OTHER OPERATING EXPENSES
Specification of other income as recognized in the statement
of comprehensive income
*Other employee-related expenses include bonus costs.
As of December 31, 2025, the group had 4,291 employees (FTEs), while as of December 31, 2024, the
number of employees (FTEs) was 4,714.
MEUR 2025 2024Operating expensesFreight, packaging, and customs duties charges 31.7 34.1 Tariff costs (not included in customs duties)* 5.7 0.0 Facility costs 11.7 11.6 Consumables 18.3 20.9 Repairs and maintenance 12.2 11.7 Service costs/external services 8.3 10.1 Warranty expenses 21.0 19.5 Other costs 8.6 11.7 Administrative expensesUtilities 0.9 0.3 Service costs/external services 13.9 17.6 Consumables 4.4 4.6 Travel costs 1.5 2.4 Other costs 5.9 6.4Total other operating expenses 144.1 150.9
Specification of other operating expenses as recognized in the statement
of comprehensive income
* Of which MEUR 5.6 is related to US tariff costs
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NOTE 10 FINANCIAL ITEMS
Specification of financial items as recognized in the statement
of comprehensive income
MEUR 2025 2024Foreign currency gains * 2.0 0.00.0Interest income 0.8 1.7 1.7 IFRS 16 interest income 0.2 0.1 0.1 Other financial income 0.1 0.8 0.8 Total financial income 3.1 2.6 2.6 Interest expense (10.3)(11.3)(11.3)IFRS 16 interest expense (4.3)(4.5)(4.5)Foreign currency losses * 0.0 (1.9)(1.9)Account receivables securitization – expense (0.3)(0.4)(0.4)Change in value of financial derivatives 0.0 (0.1)(0.1)Share of net profit (loss) from investments accounted for using the 0.0 (0.2)(0.2)equity methodImpairment of the equity investments and loans granted to equity and (0.5)(2.4)(2.4)at cost investmentsOther financial expenses (1.0)(2.8)(2.8)Total financial expenses (16.4)(23.6)(23.6)Total financial items (13.3)(21.0)(21.0)
* Includes realized currency loss of MEUR 4.9 and unrealized currency gain of MEUR 6.9 (2024: realized currency
gain of MEUR 1.7 and unrealized currency loss of MEUR 3.6
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NOTE 11 TAXES
Tax recognized in the statement of income
The major components of income tax expense:
Reconciliation of the Norwegian nominal statutory tax rate
to effective tax rate
MEUR 2025 2024Current tax on profits for the year* (4.9) (8.2) Total current tax (4.9) (8.2)Current year change in deferred tax 5.2 (7.8)Impact of changes in tax rates 0.0 (0.4)Adjustments in respect of prior years – deferred tax (0.4) 0.5 Total change in deferred tax 4.8 (7.7)Total income tax (expense)/credit (0.1) (15.9)
MEUR 2025 2024Tax on pension remeasurement (0.5) 0.2 Tax in other comprehensive income (0.5) 0.2
MEUR 2025 2024Profit/(loss) before taxes 0.3 (2.3)Expected tax calculated at Norwegian tax rate 0.0 0.5 Other permanent differences/currency 1.2 (2.4)Effect of withholding tax (0.7) (3.0)Foreign tax rate differential (0.5) (1.7)Impact of changes in tax rates and legislation 0.0 (0.4)(Losses not recognized as deferred tax assets)/Usage of tax losses 2.0 (8.8)without DTAWrite down of deferred tax assets (1.7) (0.6)Adjustments in respect of prior years and other adjustments (0.4) 0.5 Income tax (expense)/credit (0.1) (15.9)Average effective tax rate 33% -691%
*Includes withholding tax. Further details can be found in table below.
Tax recognized in other comprehensive income
MEUR 2025 2024Current income tax receivables* 2.5 1.8 Current income tax liabilities (0.8) (1.3)Total 1.7 0.5
Tax recognized in the statement of financial position
Current income tax
*Included under “Trade and other receivables”.
MEUR 2025 2024Deferred tax assets 8.5 10.0 Deferred tax liabilities (20.3) (25.4)Total (11.8) (15.4)
Deferred tax
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NOTE 11 TAXES (CONTINUED)
Specification of deferred tax assets/(liabilities) recognized in the statement of financial position
2024FX DIFF AND OPENING CHARGED CHANGES RECLASSIFI-CLOSING MEURBALANCETO INCOMEIN R ATE OCICATIONBALANCEProperty, plant, (2.0) 1.1 (0.4) 0.0 (0.1) (1.4)and equipmentIntangible assets (5.4) 0.0 (0.1) 0.0 (0.3) (5.8)Leases 1.5 0.4 0.1 0.0 (0.1) 1.9 Retirement benefits 1.4 (0.1) 0.0 0.2 0.1 1.6 obligationsLosses carried forward 4.8 (2.4) 0.0 0.0 0.2 2.6 Trade and other receivables 3.2 0.4 0.0 0.0 (0.1) 3.5 Accrued expenses 7.1 (3.2) 0.0 0.0 0.1 4.0 Accrued interest 0.0 1.4 0.0 0.0 0.0 1.4 Unrealized exchange differences on long-term (26.0) (5.6) 0.0 0.0 1.3 (30.3)receivables/payablesOther temporary differences5.8 0.7 0.0 0.0 0.6 7.1 Net deferred tax assets/ (9.6) (7.3) (0.4) 0.2 1.7 (15.4)(liabilities)
2025FX DIFF AND OPENING CHARGED CHANGES RECLASSIFI-CLOSING MEURBALANCETO INCOMEIN R ATE OCICATION BALANCEProperty, plant, (1.4) 0.9 0.0 0.0 0.0 (0.5)and equipmentIntangible assets (5.8) 0.5 0.0 0.0 0.6 (4.7)Leases 1.9 0.2 0.0 0.0 0.0 2.1 Retirement benefits 1.6 (0.1) 0.0 (0.5) 0.0 1.0 obligationsLosses carried forward 2.6 1.8 0.0 0.0 (0.3) 4.1 Trade and other receivables 3.5 0.1 0.0 0.0 0.0 3.6 Accrued expenses 4.0 (0.5) 0.0 0.0 (0.2) 3.3 Accrued interest 1.4 2.2 0.0 0.0 (0.2) 3.4 Unrealized exchange differences on long-term (30.3) 6.9 0.0 0.0 0.0 (23.4)receivables/payablesOther temporary differences 7.1 (7.2) 0.0 0.0 (0.6) (0.7)Net deferred tax assets/ (15.4) 4.8 0.0 (0.5) (0.7) (11.8)(liabilities)
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Tax positions not recognized
NOTE 11 TAXES (CONTINUED)
Remaining lifetime of tax losses (gross tax value)
MEUR 2025 2024Tax positions not recognized 48.6 50.6 Total 48.6 50.6
MEUR 2025 2024Less than five years 27.7 19.8 19.8 5–10 years 5.8 13.9 13.9 10–15 years 0.0 1.9 1.9 15–20 years 0.0 0.0 0.0 Without time limit 19.8 17.6 17.6 Total 53.3 53.253.2
Measurement of deferred taxes
Deferred tax assets and liabilities are measured at the tax rates enacted.
Limitation and assumptions for the utilization of losses carried forward
and deferred tax assets
The carrying amount of deferred tax assets is reviewed at each balance sheet date and recognized for
unused tax losses and unused tax credits to the extent that future taxable profit will be available
against which the unused tax losses and unused tax credits can be utilized. As part of the review, the
group conducts comprehensive analyses of future profits within the legal entity as well as consider-
ing possibilities for utilization within the group. As at the year-end, the estimates indicated that tax
losses at MEUR 48.6 will not be deductible within the foreseeable future, resulting from a change of
tax positions not recognized of MEUR 2.0 in the current year.
OECD Pillar Two model rules
The parent company Kongsberg Automotive ASA is incorporated in Norway, which enacted the Pillar
Two income taxes legislation in January 2024 with effective date January 1, 2024. Under the new leg-
islation, the parent company is required to pay top-up tax in Norway on profits of its subsidiaries
that are taxed at an effective tax rate of less than 15%. Based on the assessments to date, the group
does not expect the impact of the Pillar Two legislation to be material to its consolidated financial
statements. There is no current top-up tax exposure based on the assessment for 2025. Therefore,
no top-up current tax expense has been booked.
The temporary exception issued by the IASB in May 2023 from the accounting requirements for
deferred taxes in IAS 12 is applied. Accordingly, the group neither recognizes nor discloses informa-
tion about deferred tax assets or liabilities related to Pillar Two income taxes.
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NOTE 12 INTANGIBLE ASSETS
PATENTS CUSTOMER AND RELATION-DEVELOP-SOFTWARE MEUR GOODWILLSHIPSMENTAND OTHER TOTALAcquisition costs 95.9 19.7 44.1 8.8 168.5 Accumulated amortization & (25.2) (19.7) (37.3) (8.0) (90.2)impairmentNet book value at 31.12.2023 70.7 0.0 6.8 0.8 78.3 Cost at 01.01.2024 95.9 19.7 44.1 8.8 168.5 Additions 0.0 0.0 3.8 0.2 4.0 Translation differences 3.2 1.2 (0.7) (0.1) 3.6 Acquisition costs at 31.12.2024 99.1 20.9 47.2 8.9 176.1 Accumulated amortization (25.2) (19.7) (37.3) (8.0) (90.2)& impairment at 01.01.2024Amortization 0.0 0.0 (0.4) (0.3) (0.7)Reversal of impairment loss 0.0 0.0 0.3 0.0 0.3 Translation differences (0.1) (1.2) 0.3 0.1 (0.9)Accumulated amortization (25.3) (20.9) (37.1) (8.2) (91.5)& impairment at 31.12.2024Acquisition costs 99.1 20.9 47.2 8.9 176.1 Accumulated amortization & (25.3) (20.9) (37.1) (8.2) (91.5)impairmentNet book value at 31.12.2024 73.8 0.0 10.1 0.7 84.6
PATENTS CUSTOMER AND RELATION-DEVELOP-SOFTWARE MEUR GOODWILLSHIPSMENTAND OTHER TOTALCost at 01.01.2025 99.1 20.9 47.2 8.9 176.1 Additions (purchases and 0.0 0.0 2.7 0.2 2.9 capitalized costs)Additions – first consolidation 0.0 0.0 1.6 0.0 1.6 of Chassis AutonomyDisposals accumulated cost 0.0 0.0 0.0 (0.7) (0.7)Translation differences (6.1) (2.1) (0.2) (0.3) (8.7)Acquisition costs at 31.12.2025 93.0 18.8 51.3 8.1 171.2 Accumulated amortization & (25.3) (20.9) (37.1) (8.2) (91.5)impairment at 01.01.2025Amortization 0.0 0.0 (0.7) (0.2) (0.9)Impairment loss 0.0 0.0 (1.6) (0.1) (1.7)Reversal of impairment loss 0.0 0.0 0.0 0.0 0.0 Disposals accumulated amortization 0.0 0.0 0.0 0.7 0.7 Translation differences 0.3 2.1 0.1 0.3 2.8 Accumulated amortization (25.0) (18.8) (39.3) (7.5) (90.6)& impairment at 31.12.2025Acquisition costs 93.0 18.8 51.3 8.1 171.2 Accumulated amortization (25.0) (18.8) (39.3) (7.5) (90.6)& impairmentNet book value at 31.12.2025 68.0 0.0 12.0 0.6 80.6
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Internally developed intangible assets
NOTE 12 INTANGIBLE ASSETS (CONTINUED)
MEUR 2025 2024Internally developed intangible assets at 01.01. 9.8 6.6 Additions (purchases and capitalized costs) 2.7 3.6 Additions – first consolidation of Chassis Autonomy 1.6 0.0 Disposals during the year 0.0 0.0 Amortization (0.6) (0.4)Impairment (1.6) 0.0 Reversal of impairment 0.0 0.3 Translation differences (0.1) (0.3)Internally developed intangible assets at 31.12. 11.8 9.8Non-capitalized development costs net of customer contribution (24.3) (25.8)Amortization of internally developed intangible assets (0.6) (0.4)Total recognized development cost in the reporting period* (24.9) (26.2)Cash investment in development (27.0) (29.4)
* Net amount; gross amount MEUR 29.4 in 2025 (2024: MEUR 31.2).
The internally developed intangible assets include capitalized costs related to the development of
new products. These assets are included in “Patents and Development”.
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NOTE 13 PROPERTY, PLANT & EQUIPMENT (PP&E)
EQUIP-MEUR LAND BUILDINGSMENT TOTALAcquisition costs 3.0 27.2 451.3 481.5 Accumulated depreciation & impairment (1.6) (21.7) (342.4) (365.7)Net book value at 31.12.2023 1.4 5.5 108.9 115.8 Cost at 01.01.2024 3.0 27.2 451.3 481.5 Additions 0.0 2.8 17.9 20.7 Disposals accumulated cost 0.0 (0.1) (7.3) (7.4)Translation differences 0.0 0.2 (0.7) (0.5)Acquisition costs at 31.12.2024 3.0 30.1 461.2 494.3 Accumulated depreciation & impairment (1.6) (21.7) (342.4) (365.7)at 01.01.2024Depreciation 0.0 (0.8) (19.7) (20.5)Reversal of impairment loss 0.0 0.0 1.6 1.6Disposals accumulated depreciation 0.0 0.1 7.0 7.1 Translation differences 0.0 (0.1) 0.6 0.5 Accumulated depreciation (1.6) (22.5) (352.9) (377.0)& impairment at 31.12.2024Acquisition costs 3.0 30.1 461.2 494.3 Accumulated depreciation & impairment (1.6) (22.5) (352.9) (377.0)Net book value at 31.12.2024 1.4 7.6 108.3 117.3
EQUIP-MEUR LAND BUILDINGSMENT TOTALCost at 01.01.2025 3.0 30.1 461.2 494.3 Additions (purchases and capitalized costs) 0.0 0.2 13.6 13.8 Additions – first consolidation of Chassis Autonomy 0.0 0.0 0.2 0.2 Disposals accumulated cost 0.0 (1.2) (17.6) (18.8)Translation differences 0.0 (1.0) (14.6) (15.6)Acquisition costs at 31.12.2025 3.0 28.1 442.8 473.9 Accumulated depreciation & (1.6) (22.5) (352.9) (377.0)impairment at 01.01.2025Depreciation 0.0 (0.8) (19.9) (20.7)Depreciation – first consolidation of 0.0 0.0 (0.1) (0.1)Chassis AutonomyImpairment loss 0.0 (0.1) (2.7) (2.8)Reversal of impairment loss 0.0 0.0 0.0 0.0 Disposals accumulated depreciation 0.0 1.2 17.4 18.6 Translation differences 0.0 0.6 11.0 11.6 Accumulated depreciation & (1.6) (21.6) (347.2) (370.4) impairment at 31.12.2025Acquisition costs 3.0 28.1 442.8 473.9 Accumulated depreciation & impairment (1.6) (21.6) (347.2) (370.4)Net book value at 31.12.2025 1.4 6.5 95.6 103.5
Impairment testing
See note 15 for information related to impairment testing of intangible assets, PP&E, and right-of-use
assets.
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NOTE 14 RIGHT-OF-USE ASSETS
EQUIP-MEUR BUILDINGSMENT TOTALAcquisition costs 103.3 6.0 109.3 Accumulated depreciation & impairment (51.4) (2.9) (54.3)Net book value at 31.12.2023 51.9 3.1 55.0 Cost at 01.01.2024 103.3 6.0 109.3 Additions 8.2 1.3 9.5 Lease terminations (6.2) (0.5) (6.7)Translation differences (2.8) (0.1) (2.9)Acquisition costs at 31.12.2024 102.5 6.7 109.2 Accumulated depreciation & impairment at 01.01.2024 (51.4) (2.9) (54.3)Depreciation (7.6) (1.0) (8.6)Reversal of impairment loss 3.0 0.1 3.1 Lease terminations 4.1 (0.1) 4.0 Translation differences 1.4 0.0 1.4 Accumulated depreciation & impairment at 31.12.2024(50.5) (3.9) (54.4)Acquisition costs 102.5 6.7 109.2 Accumulated depreciation & impairment (50.5) (3.9) (54.4)Net book value at 31.12.2024 52.0 2.8 54.8
EQUIP-MEUR BUILDINGSMENT TOTALCost at 01.01.2025 102.5 6.7 109.2 Additions 4.5 1.8 6.3 Additions – first consolidation of Chassis Autonomy 0.3 0.0 0.3 Lease terminations (2.2) (1.3) (3.5)Translation differences (2.0) (0.0) (2.0)Acquisition costs at 31.12.2025 103.3 7.0 110.3 Accumulated depreciation & impairment at 01.01.2025 (50.5) (3.9) (54.4)Depreciation (7.4) (1.1) (8.5)Reversal of impairment loss 1.8 0.1 1.9 Lease terminations 0.1 0.9 1.0 Translation differences 1.1 0.0 1.1 Accumulated depreciation & impairment at 31.12.2025(54.9) (4.0) (58.9)Acquisition costs 103.3 7.0 110.3 Accumulated depreciation & impairment (54.9) (4.0) (58.9)Net book value at 31.12.2025 48.4 3.0 51.4
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MEUR 2025 2024Non-current lease liabilities 55.4 63.8 Current lease liabilities 10.2 9.9 Total lease liabilities 65.6 73.7
MEUR 2025 2024Within one year 14.1 14.3 One to five years 39.6 41.9 More than five years 31.8 43.0 Total undiscounted lease commitments 85.5 99.2
MEUR 2025 2024Interest expense on lease liabilities (included in financial items) (4.3) (4.5)Interest income on subleases 0.2 0.1 Depreciation of right-of-use assets (8.4) (8.6)Expenses relating to low-value and short-term leases (0.3) (0.3)Total expenses relating to leases (12.8) (13.3)
In 2025, the group had total cash outflows of approximately MEUR 14.7 (2024: MEUR 14.7) for all
leases, including non-material leases that are not part of the group’s IFRS 16 reporting.
Amounts recognized in the statement of comprehensive income relating to leases
Lease liabilities
Maturity analysis – contractual undiscounted cash flows
NOTE 14 RIGHT-OF-USE ASSETS (CONTINUED) NOTE 15 IMPAIRMENT LOSSES
The group has performed impairment tests on the carrying values of all intangible assets (including
goodwill), property, plant, and equipment, and right-of-use assets (RoU) in accordance with the
requirements of IAS 36. The group used the cash-generating unit’s value in use to determine the
recoverable amount. Value in use (VIU) was derived as the net present value (NPV) of projected
future cash flows for each of the cash-generating units (CGUs).
In Q3 2025, the Driveline (excluding Electric Actuators) segment (previously presented as other
operations) has been incorporated into the Drive Control System segment. This is in line with how
the new management team views and reports the business, and the Driveline segment is no longer
defined as “non-core”.
The On-Highway, Off-Highway, Driveline & Electric Actuators, Headrest, Couplings, and Fluid
Transfer Systems business units were identified as the respective CGUs.
Cash flow projections and assumptions
The model was based on a three-year projection of discounted cash flows plus a terminal value (cal-
culated using Gordon’s growth model with the perpetual growth of 1.6% (applicable for all business
units)). The net discounted cash flows were calculated before tax.
The projected cash flows were derived from the business plans set up by the management of the
business units and reviewed as well as finally approved by the top management in the course of the
budget and strategic planning process covering the period until 2028. The business plans were based
on the group’s three-year long-range plan (LRP), adjusted for relevant recent changes in internal short-
term forecasts and market data. Adjustments were made to exclude significant cash flows related to
restructuring not yet committed, future investments or enhancements. Assumptions on labor inflation
as well as on raw material price development were provided centrally. The input data on developments
of the relevant markets were taken from well-known external sources, such as LMC Automotive (com-
mercial vehicles market) and customers, in addition to all relevant internal information, such as change
in orders, customer portfolio, fitment rate for products, geographical development, market shares, etc.
Discount rate assumptions
The required rate of return was calculated using the WACC method. The input data of the WACC
was chosen by an individual assessment of each parameter. Information from representative
sources and peer groups were used to determine the best estimate. The WACC was calculated to be
9.6% pre-tax. The WACC used was the same for all CGUs; the reason being that the long-term risk
profiles of the CGUs are not considered to be significantly different. The key parameters were set to
reflect the underlying long-term period of the assets and time horizon of the forecast period of the
business cases. The following parameters were applied:
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•
Risk-free interest rate: 3.66%. Based on 10-year governmental Eurobond rate and US treasury 10-year
yield, weighted 50/50.
• Beta: 1.22. Based on an estimated unlevered beta for the automotive industry levered to the group’s
structure.
• Market risk premium: 4.87% (post tax). Based on market sources.
• Cost of debt: based on the market value of the group’s debt.
The discount rate has been adjusted to reflect the current market assessment of the risks specific to
the group’s business activity and was estimated based on the weighted average cost of capital for the
group. Further changes to the discount rate may be necessary in the future to reflect changing risks
for the industry and changes to the weighted average cost of capital.
Sensitivity analysis and allocation of impairment as of December 31, 2025
The value in use is dependent on the free cash flow and discount rate. The cash flow will fluctuate in
relation to changes in price, currency, and volume. Business awards, success of the vehicle model, prod
-
uct fitment rates, government regulations, and economic conditions in turn influence the volume.
On-Highway:
No reasonable change in any of the key assumptions would cause the recoverable amount to be lower
than the carrying value.
Off-Highway:
The value in use is significantly higher than the carrying value. Hence, no reasonable change in any
of the key assumptions would cause the recoverable amount to be lower than the carrying value.
Headrest:
No reasonable change in any of the key assumptions would cause the recoverable amount to be lower
than the carrying value.
NOTE 15 IMPAIRMENT LOSSES (CONTINUED)
Driveline & Electric Actuators:
Due to the similarities in the business profiles of Driveline and Electric Actuators (EAC), their pro-
jected free cash flows and net carrying values were combined for the impairment test. The calculated
value-in-use is slightly higher than the combined carrying amount, based on projected cash flow for
the next three years (excluding terminal value due to uncertainties surrounding both business
units). Management firmly believes that EAC holds significant potential. Strategic investments in
this innovative technology position KA to capture market opportunities and reinforce its leadership
in the industry. Following the successful restructuring of operations, Driveline is generating positive
margins and is expected to maintain this performance over the coming years. This will provide the
necessary resources to finance EAC’s product development. Therefore, no impairment needs to be
recorded as of December 31, 2025.
In 2023, it was determined that the Driveline business unit should be fully impaired, therefore, all
assets used in the production of Driveline products were written down to zero. In 2024 and 2025, a
significant number of these previously impaired assets were repurposed to be used in the manufac-
turing of products in core business segments. The impairment of these assets has been reversed in
the amount of MEUR 1.5 (2024: MEUR 5.0) and they were placed back on their original depreciation
schedules under their new business unit. Otherwise, and given the current key assumptions, no
plausible changes are expected to justify the further reversal of the previously recorded impairment.
Couplings:
The value in use is significantly higher than the carrying value. No reasonable change in any of the
key assumptions would cause the recoverable amount to be lower than the carrying value.
Fluid Transfer Systems:
No reasonable change in any of the key assumptions would cause the recoverable amount to be lower
than the carrying value.
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DRIVE CONTROL SYSTEMS FLOW CONTROL SYSTEMSELECTRIC FLUID TRANSFERMEUR ON-HIGHWAY OFF-HIGHWAY DRIVELINEACTUATORS HEADREST COUPLINGSSYSTEMS TOTALGoodwillGross book value as at 01.01.2025 16.5 0.0 6.8 0.0 0.0 0.2 57.0 80.5 Accumulated impairment as at 01.01.2025 0.0 0.0 (6.8) 0.0 0.0 0.0 0.0 (6.8)Translation adjustments (0.5) 0.0 0.0 0.0 0.0 0.0 (5.2) (5.7)Net book value as at 31.12.2025 16.0 0.0 0.0 0.0 0.0 0.2 51.8 68.0
NOTE 15 IMPAIRMENT LOSSES (CONTINUED)
Net carrying value of the Goodwill per business unit
NOTE 16 INVENTORIES
Specification of inventories
MEUR 2025 2024Raw materials 43.5 47.3Work in progress 17.5 17.4 Finished goods 15.3 15.8 Total inventories 76.3 80.5
The values displayed above are net of provisions for slow-moving and obsolete inventory shown below.
MEUR 2025 2024Book value at 01.01. (13.4) (14.2)Write-down (1.7) (2.2)Reversal of prior write-downs 3.5 3.1 Foreign currency effects 0.5 (0.1) Book value at 31.12. (11.1) (13.4)
Provision for slow-moving and obsolete inventory
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NOTE 17 TRADE AND OTHER RECEIVABLES
Specification of trade and other receivables MEUR 2025 2024Trade receivables 127.7 140.8 Public duties 6.7 6.6 Other short-term receivables 4.6 6.9 Total trade and other receivables 139.0 154.3
MEUR 2025 2024Not overdue 108.7 123.3 Overdue 1–20 days 9.8 11.7 Overdue 21–40 days 4.3 1.8 Overdue 41–80 days 1.7 1.2 Overdue 81–100 days 1.6 0.3 Overdue > 100 days 2.5 3.4 Gross trade receivables 128.6 141.7 Total provision for bad debt (0.9) (0.9)Net trade receivables 127.7 140.8
Trade receivables maturity
The provision for bad debt remained stable compared to 31.12.2024. Trade receivables are subject to con-
stant monitoring. The impairment of receivables is reflected through provision for bad debt. Monthly
assessments of loss risk, including forward-looking information, are performed, and corresponding pro
-
visions are made at the entity level. The provision for bad debt reflects the total expected loss risk on the
group’s trade receivables. The oldest trade receivables, overdue > 100 days, represent the highest risk
level. Most of the impaired trade receivables are included in that category. Expected losses on trade
receivables were MEUR 0.9 in 2025 (2024: MEUR 0.9). The risk for losses on receivables other than trade
receivables is assessed to be insignificant. For risk management, see note 23.
MEUR 2025 2024Tooling for sale 4.6 5.9 Customer development for sale 1.3 1.0 Prepayments 6.5 7.4 Contract costs – current 0.2 0.1 Total other current assets 12.6 14.4
MEUR 2025 2024Investments accounted for using the equity method 0.0 0.7 Investments in non-material subsidiary 0.2 0.6 Contract costs – non-current 0.2 0.4 Net pension assets 0.3 0.2 Other non-current assets 1.7 0.8 Total other non-current assets 2.4 2.7
Receivables by currency MEUR 2025 2024EUR 50.2 52.5 USD 49.6 42.5 CNY 17.4 31.5 NOK 4.0 4.7 Other 17.8 23.1 Total trade and other receivables 139.0 154.3
Other current assets
Other non-current assets
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NOTE 17 TRADE AND OTHER RECEIVABLES (CONTINUED)
Investments accounted for using the equity method/business combinations
Acquisition of Chassis Autonomy SBA AB
On January 13, 2025, the group entered into a call option agreement granting the right to acquire the
remaining 10,000 shares (75%) of Chassis Autonomy SBA AB, in addition to the shares already previ
-
ously acquired. On August 13, 2025, KA exercised the option and purchased the additional 10,000
shares from the four remaining shareholders for a purchase price of 1 SEK each, subject to Earn-Out
conditions.
Through these transactions, the group obtained full control over employees, customer data, pro-
cesses, know-how and other relevant resources, thereby meeting the IFRS 3 criteria for a business
combination and qualifying the transaction as a step acquisition. From the acquisition date, Chassis
Autonomy SBA AB is fully consolidated into the group's financial statements, and all intra-group bal-
ances and transactions have been eliminated. The previously held interest was remeasured to the
fair value implied by the controlling tranche acquired on August 13, 2025. The consideration trans-
ferred for the additional 75% interest, together with the fair value of the previously held interest, was
allocated to the identifiable assets acquired and liabilities assumed based on their fair values at the
acquisition date.
It was concluded that part of the Earn-Out arrangement represents remuneration for post-acqui-
sition services, while the remaining portion constitutes contingent consideration to be included in
the purchase price and subsequent purchase price allocation. Post-combination services provided
by employees or selling shareholders are not accrued at the acquisition date, but are recognized as
compensation expense over the service period.
The acquisition resulted in a small bargain-purchase gain, as the fair value of the identifiable net
assets exceeded the consideration transferred. The resulting gain from a bargain purchase (badwill)
was immaterial (<100 kEUR) and recognized immediately in profit or loss in accordance with IFRS 3.
FAIR VALUE RECOGNISED ON MEUR NOTEACQUISITIONIntangible assets (development costs) 12 1.6 Property, plant, and equipment 13 0.1 Right-of-use assets 14 0.3 Other current assets 17 0.5 Cash and cash equivalents 21 0.2 Total assets 2.7Contingent liability 22 0.3 Interest-bearing liabilities 21 0.1 Non-current lease liabilities 21 0.2 Current lease liabilities 21 0.1 Trade payables 24 0.2 Other current payables 24 0.1 Total liabilities 1.0
Assets acquired and liabilities assumed
The fair values of the identifiable assets and liabilities of Chassis Autonomy SBA AB as at the date of
acquisition were:
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The twenty largest shareholders in the company as at 31.12.2025 were as follows:
SHAREHOLDERS AND NOMINEES NO. OF SHARES % COUNTRY TYPE OF ACCOUNTApollo Asset Limited 115,000,000 12.1% Cayman Islands OrdinaryNordnet Bank AB 36,849,233 3.9% Sweden NomineeSaxo Bank AS 35,816,871 3.8% Denmark NomineeCitibank, N.A. 22,186,690 2.3% Ireland NomineeKongsberg Automotive ASA 18,225,314 1.9% Norway OrdinaryArild Vigen Christoffersen 14,280,921 1.5% Norway OrdinaryNordnet Livsforsikring AS 13,896,983 1.5% Norway OrdinaryThe Bank of New York Mellon SA/NV 12,792,265 1.3% United Kingdom NomineeDanske Bank A/S 11,195,656 1.2% Denmark NomineeVerdipapirfondet DnB Norge Indeks 8,776,876 0.9% Norway OrdinaryCommuter 2 AS 7,300,000 0.8% Norway OrdinaryKransekakebakeren AS 7,296,868 0.8% Norway OrdinaryFinn Arnesen 6,600,000 0.7% Norway OrdinaryUBS Switzerland AG 6,540,934 0.7% Switzerland NomineeLars Rimestad 6,150,000 0.6% Norway OrdinaryVerdipapirfondet KLP Aksjenorge 5,879,895 0.6% Norway OrdinaryJan Erik Andersen 5,431,824 0.6% Norway OrdinaryVerdipapirfondet Storebrand Indeks 5,181,372 0.5% Norway OrdinaryJohn Stien Invest AS 4,950,000 0.5% Norway OrdinaryAlfaplan AS 4,700,000 0.5% Norway OrdinaryTotal 20 largest shareholders 349,051,702 36.7%Other shareholders 602,371,429 63.3%Number of shares in issue at 31.12.2024 951,423,131 100.0%Number of shareholders 21,796 Foreign ownership 33.0%
NOTE 18 SHARE CAPITAL
Shares
The share capital of the company is NOK 951,423,131 comprising
951,423,131 ordinary shares with a par value of NOK 1.00. The
company holds 18,225,314 shares (2024: 21,994,445) as treasury
shares. For more information, see the Statement of Changes in
Equity. The company is listed on the Oslo Stock Exchange with the
ticker code “KOA.”
2025 2024Number of shares 951,423,131 951,423,131 in issue at 01.01.Number of shares 951,423,131 951,423,131in issue at 31.12.Of these, treasury shares 18,225,314 21,994,445
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Share options
Options at NOK 3.0 (grant 2021) are performance stock options and expire 10 years after the date of
grant. No other share options were granted thereafter. The company has no legal or constructive obli
-
gation to repurchase or settle the options in cash. Refer to note 3 for further information.
Movements in share options (NOK)
Movements in restricted stock units (RSU) and performance stock units (PSU)
Outstanding restricted stock units and performance stock units at the end of the year
Outstanding options at the end of the year (NOK)
2025 2024AVERAGE AVERAGE EXERCISE EXERCISE NOKPRICE OPTIONSPRICE OPTIONSOptions at 01.01. 3.0 1,827,835 3.0 4,677,069 Granted – – – – Forfeited 3.0 (321,190) 3.0 (1,294,116)Expired 3.0 (325,031) 3.0 (716,177)Adjusted (quantity) 3.0 – 3.0 (838,941)Options at 31.12. 3.0 1,181,614 3.0 1,827,835
2025 2024EXERCISE EXERCISE PRICE PRICE EXPIRY DATE(NOK) OPTIONS (NOK) OPTIONS 10.06.2031 (grant 2021) 3.0 1,181,614 3.0 1,827,835 Options at 31.12. 1,181,614 1,827,835
NOK 2025 2024RSU at 01.01. 29,776,538 26,545,542 Granted – 16,834,565 Released (5,073,501) (4,713,359)Forfeited (10,925,335) (8,725,343)Adjusted (2,952,172) (164,867)RSU at 31.12. 10,825,530 29,776,538
EXPIRY DATE 2025 2024Grant 2022 (02.06.2025) – 5,369,783 Grant 2023 (05.06.2026) 3,302,990 7,754,410 Grant 2024 (30.05.2027) 7,522,540 16,652,345 RSU at 31.12. 10,825,530 29,776,538
NOTE 18 SHARE CAPITAL (CONTINUED)
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NOTE 19 EARNINGS AND DIVIDEND PER SHARE
Earnings per share for the group Dividend per share
2025 2024Net profit attributable to equity shareholders (MEUR) 0.2 (18.2)Weighted average number of shares in issue (in millions) 1,041.0 1,039.2 Weighted average total number of ordinary shares (in millions) 1,061.9 1,061.9 Weighted average number of treasury shares held (in millions) (20.9) (22.7)Basic earnings per share, EUR 0.00 (0.02)Weighted average number of shares in issue (diluted) (in millions) 1,062.1 1,068.4 Weighted average number of outstanding options & RSU/PSU (in millions) 21.2 29.2 Diluted earnings per share, EUR 0.00 (0.02)
EUR 2025 2024Dividend per share paid 0.0 0.0 Dividend per share proposed 0.0 0.0
No dividend was proposed for 2025.
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Defined benefit scheme – change in net pension liability
Defined benefit scheme – net pension liability
Specification of carrying value of net pension liability
MEUR 2025 2024Net pension liability 01.01. 12.4 11.3 Pension cost for the year 0.0 1.0Remeasurement of net defined benefit liability (2.2) 0.9Paid pensions (0.6) (0.6)Pension plan contributions (0.2) (0.3)Translation differences 0.0 0.1 Net pension liability 31.12. 9.4 12.4
MEUR 2025 2024Pension liabilities and assets:Projected benefit obligation (PBO) 12.0 16.2Fair value of pension assets (2.6) (3.8)Net pension liability before social security taxes 9.4 12.4 Social security taxes liabilities 0.0 0.0 Net pension liability 9.4 12.4
MEUR 2025 2024Retirement benefit obligation 12.0 16.2 Retirement benefit asset (2.6) (3.8)Net pension liability 9.4 12.4
NOTE 20 RETIREMENT BENEFIT OBLIGATIONS
Retirement benefit obligations recognized in the statement of financial position
Defined benefit scheme – assumptions
Defined benefit scheme – net periodic pension cost
MEUR 2025 2024Defined benefit pension obligation 9.4 12.4 Top hat, retirement provisions, and other employee obligations 0.7 0.6 Retirement benefit obligations 10.1 13.0
2025 2024Discount rate 2.3% 2.9%Rate of return on plan assets 0.1% 0.2%Salary increases 1.1% 1.1%Increase in basic government pension amount 0.9% 1.0%Pension increase 0.5% 0.4%
MEUR 2025 2024Current service cost 0.5 0.6 Past service cost (including plan settlement) (0.9) 0.0 Interest on benefit obligations 0.3 0.4Net periodic pension cost 0.1 1.0Remeasurement of net defined benefit liability (2.2) 0.9 Actual return on plan assets 6.2% 2.5%
The assumptions for KA Group are presented as a weighted average of the assumptions reported
from respective subsidiaries.
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NOTE 21 INTEREST-BEARING LIABILITIES
Interest-bearing liabilities as presented in the statement of financial position
MEUR 2025 2024Non-current interest-bearing loans and borrowings 110.0 110.0 Capitalized arrangement fees (1.9) (2.5)Drawn securitization facility 25.0 25.0 Interest-bearing lease liabilities 65.6 73.7 Total interest-bearing liabilities 198.7 206.2
On June 24, 2024, the previously secured five-year bonds with the outstanding principal amount of
MEUR 190.6, were settled, and new senior secured four-year bonds (the “Notes”) with the principal
amount of MEUR 110.0 were issued (ISIN: NO0013260943). The Notes are due in 2028 and have an
interest rate of 3M EURIBOR plus a margin of 5.25% (payable quarterly). The Notes are listed on the
Open Market of Frankfurt Stock Exchange and the Oslo Stock Exchange. Subject to an incurrence
covenant, the group can at any time tap the bond with an additional notional of up to MEUR 50.0.
The group may call the bond in parts any time after December 2026 at the agreed call prices plus
accrued interest on the redeemed amounts.
As part of the refinancing in June 2024, KOA entered a revolving credit facility (RCF) agreement
with DANSKE Bank for an amount of MEUR 15.0. The RCF was undrawn at the end of December 31,
2025.
The indenture for our outstanding Senior Notes and the RCF includes customary terms and con-
ditions, including restrictions on the incurrence of additional debt unless it qualifies as permitted
financial indebtedness and restrictions on our ability to make distributions unless they are classified
as permitted distributions. Furthermore, the terms restrict corporate actions that could have a
material impact on the group, such as the disposal or transfer of a substantial part of the assets of the
material group companies, or merger and consolidation with other entities. Additionally, a negative
pledge clause prevents the creation of any security over our assets, ensuring that no preferential
claims are placed on the company's assets that could disadvantage existing creditors. These meas-
ures collectively support our commitment to maintaining robust financial health and adhering to
strategic business practices.
On January 31, 2024, the group amended and extended the existing Accounts Receivables
Securitization Agreement with NORD/LB and Finacity Corporation (“Finacity”). This has a commit-
ted MEUR 25.0 facility at rate of 1.75% above the funding rate. The actual drawing of the funds could
Defined benefit scheme – sensitivities*
DBO AS AT DBO AS AT MEUR31.12.202531.12.2024Actual valuation 9.4 12.4 Discount rate + 0.5% 9.0 11.7 Discount rate – 0.5% 9.9 13.1Expected rate of salary increase + 0.5% 9.5 12.4 Expected rate of salary increase – 0.5% 9.3 12.3 Expected rate of pension increase + 0.5% 9.8 12.8Expected rate of pension increase – 0.5% 9.0 11.9
*The sensitivity does not include all schemes, however it covers a significant part of the pension liability.
Defined benefit scheme – average expected lifetime
Average expected lifetime at the balance sheet date for a person retiring on reaching age 65:
• Male employee 21 years
• Female employee 24 years
Average expected lifetime 20 years after the balance sheet date for a person retiring on reaching
age 65:
• Male employee 24 years
• Female employee 27 years
Expected pension payment
The pension payment for 2026 is expected to be in line with the 2025 payment.
NOTE 20 RETIREMENT BENEFIT OBLIGATIONS (CONTINUED)
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Changes in liabilities arising from financing activities
Liquidity reserve
The liquidity reserve of the group consists of cash and cash equivalents in addition to undrawn
credit facilities.
MEUR 2025 2024Opening balance at 01.01. 206.2 264.9 Changes arising from cash flows:Net proceeds from issuing the new bond notes 0.0 107.5 Payments for redemption/repurchase of the old bond notes 0.0 (190.2)Securitization facility drawn/(repaid) 0.0 25.0 Repayment of lease liabilities (10.0) (9.7)Repayment of Chassis Autonomy's external debt (0.2) 0.0 Non-cash changes:Additions – lease liabilities 4.1 7.1Additions – first consolidation of Chassis Autonomy 0.4 0.0 Amortization of capitalized arrangement fees 0.5 0.0 Reduction of capitalized arrangement fees due to the bond repayment 0.0 1.3Other:Foreign exchange movement (1.0) 2.1Translation effect (1.3) (1.8)Closing balance at 31.12. 198.7 206.2
MEUR 2025 2024Cash and cash equivalents 90.8 84.3 Restricted cash 0.0 (0.1)Undrawn revolving credit facility 15.0 15.0 Undrawn securitization facility 0.0 0.0 Liquidity reserve 105.8 99.2
NOTE 21 INTEREST-BEARING LIABILITIES (CONTINUED)
be less than the commitment, depending on the availability of receivables meeting the investment
criteria. At the end of December 2025, MEUR 25.0 had been drawn from the facility.
The group was in compliance with all applicable debt covenants at and for the year ending
December 31, 2025.
Specification of total interest-bearing liabilities by currency MEUR 2025 2024EUR 168.0 170.7 USD 11.4 14.8 Other currencies 21.2 23.2Capitalized arrangement fees (1.9) (2.5)Total interest-bearing liabilities 198.7 206.2
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NOTE 23 RISK MANAGEMENT
Finance risk management policies
The group’s overall financial risk management focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on the group’s financial performance. The group
exploits derivative financial instruments for the potential hedging of certain risk exposures; however,
the current usage of such instruments is limited.
Foreign exchange risk
The group operates internationally in numerous countries and is exposed to foreign exchange risk
arising from various currency exposures. The primary exposures are related to USD. Foreign
exchange risk arises from future commercial transactions, recognized assets and liabilities, and net
investments in foreign operations. As the group reports its financial results in EUR, changes in the
relative strength of EUR to the currencies in which the group conducts business can adversely affect
the group’s financial development. Historically, changes in currency rates have influenced the reve-
nues development. However, they have not had a significant impact on operating profit. This is due
to the fact that the group seeks to align its revenue and cost base to reduce the currency exposure on
a net cash flow basis.
Management is monitoring the currency exposure at group level. The group treasury uses the
debt structure and profile to balance some of the net exposure of the cash flow from operations. The
group’s treasury function regularly evaluates the use of hedging instruments, but currently has no
usage of such instruments.
The ultimate parent company’s presentation currency is the euro, and its functional currency was
assessed to be changed from Norwegian krone to euro effective January 1, 2025. This change elimi-
nates foreign-exchange gains and losses on EUR-denominated financial instruments and removes
translation exposure related to the Norwegian holding operations.
Sensitivity
As of December 31, 2025, if the USD had weakened/strengthened by 5% against the EUR with all other
variables being constant, revenues would vary by (1.7%) and 1.9% or MEUR (12.0) and MEUR 13.2, and
group's operating result would decrease by MEUR 0.4 (3.0%) and increase by MEUR 0.4 (3.4%).
Operational risks
Operation and investment risks and uncertainties
The group is usually contracted as a supplier with a long-term commitment. The commitment is usually
based on model platforms, which for passenger cars are typically three to five years, while for commercial
vehicles it is typically five to seven years and in some cases even longer. Purchase orders are achieved on a
NOTE 22 OTHER NON-CURRENT INTEREST-FREE LIABILITIES
Specification of other non-current interest-free liabilities
MEUR 2025 2024Contingent liability – first consolidation of Chassis Autonomy 0.3 0.0 Provision for employee litigations 0.5 0.5 Other non-current interest-free liabilities 0.2 0.2 Total other non-current interest-free liabilities 1.0 0.7
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NOTE 23 RISK MANAGEMENT (CONTINUED)
the group’s financial position, revenues, profits, and cash flow. When the market prices go down, the
adverse effect will occur. For products sold to passenger car applications, the group does not have the
same opportunity to pass along increases in raw materials prices.
Uninsured losses
The group maintains a number of separate insurance policies to protect its core businesses against
loss and/or liability to third parties. Risks insured include general liability, business interruption,
workers’ compensation and employee liability, professional indemnity, and material damage.
Supply chain-related risks and uncertainties
The company’s ability to meet the customers’ needs depends on the ability to maintain key manufactur-
ing and supply arrangements. The loss or disruption of such manufacturing and supply arrangements
may be caused by issues such as labor disputes, inability to procure sufficient raw or input materials,
natural disasters, disease outbreaks, or other external factors over which the company has no control.
Risks related to the Russia-Ukraine war and conflicts in the Middle East
The war in Ukraine has created considerable uncertainty, particularly with regard to the potential
impact of political actions, primarily where the duration, intensity, and allocation of energy supplies,
as well as their impact on the supply chain, are concerned. In addition, the recent war in Iran and the
broader conflict in the Middle East have further increased volatility in global energy markets and
heightened overall economic uncertainty.
Due to the Russia-Ukraine war, the supply of energy, other raw materials, and parts for the pro-
duction process has resulted in greater constraints, especially in Europe. Higher energy and com-
modity prices, together with greater volatility, have added to the strain. Developments in the Middle
East have reinforced these pressures, contributing to higher energy, logistics, and raw material costs.
Furthermore, rising inflation rates could reduce purchasing power, adversely affect end-customer
behavior, and put a damper on demand for the products offered to customers.
As a consequence of these geopolitical conflicts, the following negative risks might arise in the
near future: protectionist tendencies, turbulence in the financial markets, structural deficits in indi-
vidual countries, as well as high inflation and rising interest rates worldwide. The potential effects
and duration of these conflicts remain uncertain and continue to evolve.
The group’s operations were not directly impacted by these conflicts, as none of the group’s plants
are located in Ukraine, Russia, Iran, or other affected countries in the Middle East, and most of KA’s
customers do not have close economic ties with these regions. However, the group’s financials have
been impacted by the indirect consequences of these conflicts, such as increased energy prices and
competitive bidding basis for either a specific indefinite period of time. Even if present commitments are
cost reimbursable, they can be adversely affected by many factors and short-term variances, including
shortages of materials, equipment and work force, political risk, customer default, labor conflicts, acci-
dents, environmental pollution, the prices of raw materials, unforeseen problems, changes in circum-
stances that may lead to cancelations, and other factors beyond the control of the group. In addition,
some of the group’s customer contracts may be reduced, suspended, or terminated by the customer at
any time upon the giving of notice. Customer contracts also permit the customer to vary the scope of
work under the contract. As a result, the group may be required to renegotiate the terms or scope of such
contracts at any time, which may result in the imposition of terms less favorable than the previous terms.
Competition
The group has significant competitors in each of its business areas and across the geographical mar-
kets in which it operates. The group believes that competition in the business areas in which it oper-
ates will continue in the future. The group continuously monitors its competitive environment, as it
is constantly exposed to potential strategic M&A activities by the supplier, customers, or competi-
tors that may negatively impact its market position.
Volatility in prices of input factors
The group’s financial performance is dependent on the prices of input factors, i.e. raw materials and
different semi-finished components with a varying degree of processing that are used in the produc-
tion of the various automotive parts. Some of the major raw materials are:
• Steel including rod and sheet metal, cast iron, and machined steel components
• Polymer components of rubber, foam, plastic components, and plastic raw materials
• Copper
• Zinc
• Aluminum
The prices may be subject to large fluctuations in response to relatively minor changes in supply and
demand and a variety of additional factors beyond the control of the group, including government
regulation, capacity, and general economic conditions.
A substantial part of the group’s products based on steel and brass (copper and zinc) is sold to
truck manufacturers. Business practice in the truck industry allows the group to some extent to pass
increases in steel, aluminum, and brass prices on to its customers. However, there is a time lag of
three to six months before the group can adjust the price of its products to reflect fluctuations in the
mentioned raw material prices, and a sudden change in market conditions could therefore impact
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rising freight costs, as well as heightened uncertainty in customer demand and global supply chains.
The group continues to closely monitor the situation and takes prudent actions to mitigate potential
adverse impacts.
Exposure to tariff risks
The uncertainty and risks arising from the tariffs imposed by the United States in 2025 could dis-
rupt supply chains, increase costs, and contribute to inflationary pressures. Any new, increased, or
changed tariffs, along with related trade restrictions, may heighten business risks and have a nega-
tive impact on existing business and supplier relationships. These developments are closely moni-
tored by Kongsberg Automotive, necessitating sustained attention to mitigate potential adverse
impacts. To mitigate the negative effects, Kongsberg Automotive is in continuous dialog with cus-
tomers to negotiate and agree on compensation. In addition, the group has considered adjusting the
sourcing strategy to mitigate the effects from tariffs and their subsequent impact on demand.
Climate change risk
Kongsberg Automotive has put in place adequate procedures that enable Management and the
Board of Directors to regularly review material climate change issues that may have a significant
impact on the company’s operations from an operational and strategic point of view. The company
expects and is preparing for regulatory changes and policy measures targeted at reducing carbon
emissions, especially as part of the commitments resulting from the Paris Agreement. The com-
pany invests in sources of renewable energy, such as solar panels, to become more sustainable.
Moreover, Kongsberg Automotive actively monitors its supply chains in relation to the potential
disruptions caused by extreme weather events. In case of an occurrence of such unfavorable
events, the company works on mitigation actions together with its suppliers. In the group’s assess-
ment, there are no material physical climate risks that the group is expected to face in the foresee-
able future. In 2025, the company’s financial reporting was not significantly impacted by climate
change risk.
Interest rate risk
KA successfully refinanced its main outstanding financial debt in June 2024 using the Norwegian
bond market. At the time of refinancing, KA launched a EUR 110 million bond with a maturity of June
2028. The bond notes can be drawn up to a maximum of EUR 50 million at any one time, with an
NOTE 23 RISK MANAGEMENT (CONTINUED)
aggregate maximum of EUR 160 million. Furthermore, the group concluded a super senior revolving
credit facility (SSRCF) with Danske Bank for an amount of EUR 15 million, maturing six months ear-
lier than the bond.
As both instruments are based on floating rates, KA is well positioned to benefit from the current
interest rate environment with declining rates.
Internally, KA has defined certain interest-rate levels, at which interest rate swaps will be con-
cluded to lock in lower interest rates for the remaining maturity of the outstanding bond.
In addition, KA uses an accounts receivable securitization (ARS) facility provided by NORD/LB with
a maximum amount of EUR 25 million for certain receivables in the US and Poland. The funding
costs are based on the actual usage and are floating rate based.
Credit risk
Credit risk is managed at the group and entity level. Credit risk arises mainly from trade with cus-
tomers and outstanding receivables. The level of receivables overdue is monitored on a weekly basis.
Historically the group has had limited loss on receivables. Applying forward-looking information, we
do not see any material increase in the credit risk. Refer to note 17.
The automotive industry consists of a limited number of vehicle manufacturers; hence, the five
biggest customers will account for approximately 41.2% of total sales in 2025. The group has a diver-
sified customer base, with one individual customer representing more than 10% of the group’s reve-
nues. In addition, the customer base consists of solvent OEMs and Tier 1 suppliers. In the group’s
opinion, there is no concentration risk; however, due to the number of vehicle manufacturers and
customers, concentration risk could be considered to exist.
Liquidity and capital risk
The group’s sources of capital consist of shareholders’ equity, long-term borrowings, and third-
party financing.
Total capital is defined as total equity plus net debt and is managed to safeguard the business
as a going concern, to maximize returns for its owners, and to maintain an optimal capital struc-
ture to minimize the weighted average cost of capital. All activities around cash funding, borrow-
ing, and financial instruments are centralized within the KA Treasury department. The
development of net interest-bearing debt and liquidity reserves is closely monitored. For liquidity
reserve, see note 21.
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NOTE 24 TRADE AND OTHER PAYABLES
Specification of trade and other payables as presented in the statement
of financial position
MEUR 2025 2024Trade payables 78.9 84.8 Accrued expenses 41.6 46.4 Provisions 26.1 15.9 Interest payable 0.0 0.1 Other short-term liabilities 6.7 6.1 Total trade and other payables 153.3 153.3
Provisions
Maturity structure
RESTRUC-RESTRUC-PROVISION TURING PROVISION TURING FOR AND OTHER TOTAL FOR AND OTHER TOTAL MEURWARRANTIESPROVISIONS2025WARRANTIESPROVISIONS2024 Opening balance 12.7 3.2 15.9 9.2 8.0 17.2 P&L charge 21.0 2.1 23.1 19.7 2.2 21.9 Payments (7.7) (2.4) (10.1) (16.6) (5.3) (21.9) Release (0.1) (0.9) (1.0) (0.1) (1.7) (1.8) Translation effect (1.7) (0.1) (1.8) 0.5 0.0 0.5 Closing balance 24.2 1.9 26.1 12.7 3.2 15.9
OTHER ACCRUED INTEREST SHORT-TERM TRADE TOTAL MEURPROVISIONSEXPENSESPAYABLESLIABILITIESPAYABLES2025Repayable 0-3 months 8.5 27.9 0.0 4.5 67.6 108.5 after year endRepayable 3-6 months 5.5 9.7 0.0 0.9 6.7 22.8 after year endRepayable 6-9 months 5.5 2.3 0.0 0.2 4.1 12.1 after year endRepayable 9-12 months 6.6 1.7 0.0 1.1 0.5 9.9 after year endTotal 26.1 41.6 0.0 6.7 78.9 153.3
OTHER ACCRUED INTEREST SHORT-TERM TRADE TOTAL MEURPROVISIONSEXPENSESPAYABLESLIABILITIESPAYABLES2024Repayable 0-3 months 10.2 28.2 0.1 4.7 76.1 119.3 after year endRepayable 3-6 months 1.4 12.1 0.0 0.8 5.2 19.5 after year endRepayable 6-9 months 0.1 3.4 0.0 0.1 3.2 6.8 after year endRepayable 9-12 months 4.2 2.7 0.0 0.5 0.3 7.7 after year endTotal 15.9 46.4 0.1 6.1 84.8 153.3
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NOTE 25 FINANCIAL INSTRUMENTS
Classification, measurement, and fair value of financial instruments
2025LOANS, RECEIVABLES, FINANCIAL AND CASH AT LIABILITIES AT MEURAMORTIZED COSTAMORTIZED COST TOTAL 2025Trade and other receivables 139.0 139.0 Cash and cash equivalents 90.8 90.8 Interest-bearing loans and (133.1)(133.1)borrowingsInterest-bearing lease liabilities(65.6)(65.6)Trade payables and accrued (120.5)(120.5)expensesTotal 229.8(319.2) (89.4)Fair value 229.8(318.9)(89.1)Unrecognized gain/(loss)*0.30.3
2024LOANS, RECEIVABLES, FINANCIAL AND CASH AT LIABILITIES AT MEURAMORTIZED COSTAMORTIZED COST TOTAL 2024Trade and other receivables 154.3 154.3 Cash and cash equivalents 84.3 84.3Interest-bearing loans and (132.5)(132.5)borrowingsInterest-bearing lease liabilities(73.7)(73.7)Trade payables and accrued (131.2)(131.2)expensesTotal 238.6(337.4)(98.8)Fair value 238.6(337.5)(98.9)Unrecognized gain/ (loss)**(0.1)(0.1)
*Based on level 1 input. The bond was traded at 98.0% of its par value as at 31.12.2025 (97.8% as at 31.12.2024).
** Based on level 1 input
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Remuneration and fees recognized in the statement of comprehensive income Specification of fees paid to the auditors
KEUR 2025 2024Total remuneration of the Board of Directors 316.7 321.9  1, 2Gross base salary to the CEO545.1 518.0  3CEO short-term incentive costs0.0 0.0  4CEO's long-term incentive costs0.0 92.7  1Pension costs to the CEO26.5 10.9  1, 5Other remuneration to the CEO76.7 19.7  2Management salaries other than to the CEO1,633.5 2,626.2 STI, LTI costs, and other remuneration of management 102.9 907.6  3, 4, 5other than the CEOPension costs of management other than the CEO 335.2 364.5  6Termination payments to former CEO660.3 0.0  7Termination payments to former management members1,228.9 0.0 Total – Board of Directors and Senior Management 4,925.8 4,861.4 Remuneration to Nomination Committee 17.3 46.4
KEUR 2025 2024Statutory audit services to the parent company (Deloitte) 281.2 364.2 Statutory audit services to subsidiaries (Deloitte)* 626.7 613.8 Statutory audit services to subsidiaries (other) 31.5 113.3 Non-audit services (Deloitte) 36.0 50.2 Tax services (Deloitte) 407.0 290.1 Total 1,382.4 1,431.5
NOTE 26 REMUNERATION AND FEES FOR MANAGEMENT,
BOARD OF DIRECTORS (BOD) AND AUDITOR
1
For 2025, the CEO-related items reflect the items paid in total to the CEO role, added up from three position
holders in the year: former CEO Linda Nyquist-Evenrud (until 28.01.2025), Interim CEO Christian Johansson
(29.01.2025-30.03.2025), and current CEO Trond Fiskum (From 31.03.2025). The detailed split of all items can
be found in the Remuneration Report 2025 in the section entitled Breakdown of CEO remuneration in 2025.
2
Holiday pay, as applicable, included in base salary.
3
There have been no payouts under the current STI plan, as the required performance levels were not reached.
4
Long-term incentives plans – share-based compensation. The amounts represent the expenses accounted for
according to IFRS 2. For LTI 2025, the plan changed from a share-based plan to a cash-based plan. The required
performance was not achieved, therefore no grant under LTI 2025.
5
Includes regular benefits, and for CEO includes a one-time extraordinary payment specific for the FY 2025 that
is not part of regular compensation.
6
Termination payment and benefits paid out to former CEO Linda Nyquist-Evenrud until the last contractual day.
7
Termination payments and benefits paid out to former executive leadership members.
* of which kEUR 125.9 (kNOK 1,500.0) in 2025 (2024: kEUR 74.8 (kNOK 870.0)) related to Deloitte’s ESG
attestation services
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NOTE 28 CONTINGENT LIABILITIES
There are no current material legal disputes involving either the company or its subsidiaries that
need to be disclosed.
However, a comprehensive review of the warranty exposure has been conducted. This review has
revealed further challenges related to warranty costs. These issues are not primarily due to product
quality, but rather stem from historically unfavorable contractual terms and suboptimal warranty
management practices. The warranty accrual per Q4 2025 is based on the best estimate of the total
liabilities, but the complexity and variability of potential outcomes KA may be held accountable for
is significant.
NOTE 29 SUBSEQUENT EVENTS
No significant subsequent events have been identified.
NOTE 30 RELATED-PARTY TRANSACTIONS
Kongsberg Automotive ASA is listed on the Oslo Stock Exchange and is the group’s ultimate parent.
The group has no material transactions with related parties.
Key Management and BoD compensation
See note 26 – it includes remuneration for Senior Management and the Board of Director.
NOTE 27 COMMITMENTS AND GUARANTEES
Commitments
The group’s operating lease commitments are now disclosed in note 14. In relation to low-value and
short-term leases that are not presented as lease liabilities, the group is committed to an expected
expense of MEUR 0.3 in 2026.
Guarantees
The issued senior secured notes are guaranteed on a senior basis by:
• Parent guarantor (Kongsberg Automotive ASA),
•
Material group companies: Kongsberg Automotive Holding 2 AS, Kongsberg Automotive AS,
Kongsberg Raufoss Distribution SAS, Kongsberg Actuation Systems B.V., Kongsberg Actuation
Systems Ltd., Kongsberg Automotive Sp. z.o.o, Kongsberg Holding III, Inc., Kongsberg Actuation
Systems II, LLC, Kongsberg Power Products Systems I, LLC, Kongsberg Automotive, Inc., Kongsberg
Driveline Systems I, LLC, Kongsberg Automotive Ltda, and KA Group AG.
General information
In 2025, total parent guarantees in the total amount of around MEUR 35.0 (MEUR 26.0 and MUSD
10.0) were issued for entities in Slovakia, Poland, and Mexico.
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NOTE 12 TRADE AND OTHER RECEIVABLES .......165
NOTE 13 SHARE CAPITAL ..................................165
NOTE 14 INTEREST-BEARING LIABILITIES ........166
NOTE 15 RISK MANAGEMENT ............................166
NOTE 16 TRADE AND OTHER PAYABLES ...........167
NOTE 17 REMUNERATION AND FEES
FOR MANAGEMENT, BOARD OF DIRECTORS
AND AUDITORS ..................................................167
NOTE 18 COMMITMENTS AND GUARANTEES ......167
NOTE 19 CONTINGENT LIABILITIES ...................167
NOTE 20 SUBSEQUENT EVENTS .......................167
NOTE 21 RELATED-PARTY TRANSACTIONS ......168
FINANCIAL STATEMENTS
OF THE PARENT COMPANY
STATEMENT OF COMPREHENSIVE INCOME .......... 156
STATEMENT OF CASH FLOW ............................... 157
STATEMENT OF FINANCIAL POSITION ................ 158
STATEMENT OF CHANGES IN EQUITY .................. 160
NOTE 1 REPORTING ENTITY ..............................161
NOTE 2 STATEMENT OF COMPLIANCE ...............161
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES ....161
NOTE 4 INVESTMENTS IN SUBSIDIARIES ..........161
NOTE 5 SALARIES AND SOCIAL EXPENSES ......162
NOTE 6 OTHER OPERATING EXPENSES .............162
NOTE 7 FINANCIAL ITEMS .................................162
NOTE 8 TAXES ...................................................163
NOTE 9 INTANGIBLE ASSETS ........................... 164
NOTE 10 PROPERTY, PLANT AND EQUIPMENT ... 164
NOTE 11 RIGHT-OF-USE ASSETS .......................165
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MEUR NOTE 2025 2024
Operating revenues 21 8.9 5.3
Operating expenses
Salaries and social expenses 5 (0.3) (0.3)
Other operating expenses 6 (2.9) (3.5)
Total operating expenses (3.2) (3.8)
Operating profit 5.7 1.5
Financial items
Financial income 7 9.5 58.6
Financial expenses 7 (39.9) (12.8)
Net financial items (30.4) 45.8
Profit/(loss) before taxes (24.8) 47.3
Income taxes 8 7.0 (7.2)
Net profit/(loss) (17.8) 40.1
Other comprehensive income
Translation differences 0.0 (12.7)
Other comprehensive income 0.0 (12.7)
Total comprehensive income for the year (17.8) 27.4
STATEMENT OF COMPREHENSIVE INCOME
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MEUR NOTE 2025 2024
Operating activities
Profit/(loss) before taxes (24.8) 47.3
Interest income 7 (4.1) (4.7)
Dividend income 7 (5.3) (26.8)
Interest expenses and other financial expenses 7 11.9 12.4
(Gain)/loss on sale of non-current assets 0.0 (1.0)
Changes in trade receivables* 12 (26.3) 42.4
Changes in trade payables** 16 21.1 15.8
Currency differences 7 27.7 (21.1)
Changes in other items*** 0.3 1.1
Cash flow from operating activities 0.5 65.4
Investing activities
Repayment of investments in subsidiaries 4 0.0 9.7
Interest received 7 4.1 4.7
Dividends received 7 4.8 24.5
Other investing payments (0.3) 0.0
Cash flow from investing activities 8.6 38.9
Financing activities
Payments for purchase of treasury shares 13 0.0 (2.3)
Net proceeds from issuing the new bond notes 14 0.0 107.5
Repayment of IC loans 14 0.0 (199.0)
Interest paid and payments for other financial items 7 (9.3) (12.3)
Cash flow used by financing activities (9.3) (106.1)
Currency effects on cash 0.4 0.4
Net change in cash 0.2 (1.4)
Net cash at January 1 0.0 1.4
Net cash at December 31 0.2 0.0
Of this, restricted cash 0.0 0.0
STATEMENT OF CASH FLOW
* Comprises changes in short-term group loans and receivables and
in-house bank (note 12)
** Comprises changes in trade payables and short-term group liabilities
(note 16)
*** Comprises changes in other short-term receivables and prepayments
(note 12) as well as other short-term liabilities and accrued expenses
(note 16)
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STATEMENT OF FINANCIAL POSITION
ASSETS EQUITY AND LIABILITIES
MEUR NOTE 2025 2024
Non-current assets
Investments in subsidiaries 4 228.6 228.6
Loans to subsidiaries 21 211.4 238.6
Other non-current assets 0.1 0.1
Total non-current assets 440.1 467.3
Current assets
Trade and other receivables 12, 21 35.0 11.5
Cash and cash equivalents 0.2 0.0
Total current assets 35.2 11.5
Total assets 475.3 478.8
MEUR NOTE 2025 2024
Equity
Share capital 13 80.6 80.6
Treasury shares 13 (5.2) (5.2)
Share premium 172.0 172.0
Other reserves (49.5) (49.5)
Retained earnings 69.8 87.6
Total equity 267.7 285.5
Non-current liabilities
Deferred tax liabilities 8 19.0 26.5
Retirement benefit obligations 0.3 0.3
Interest-bearing liabilities 14 108.1 107.5
Total non-current liabilities 127.4 134.3
Current liabilities
Trade and other payables 16, 21 80.2 59.0
Total current liabilities 80.2 59.0
Total liabilities 207.6 193.3
Total equity and liabilities 475.3 478.8
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Kongsberg, March 25, 2026
The Board of Directors and the President & CEO of Kongsberg Automotive ASA
Sign.
Olav Volldal
Chair
Sign.
Brian Kristoffersen
Director
Sign.
Bård Klungseth
Deputy Chair
Sign.
Hilde-Yvonne Beggerud
Employee representative
Sign.
Synnøve Gjønnes
Director
Sign.
Ørjan Langnes
Employee representative
Sign.
Ulla-Britt Fräjdin-Hellqvist
Director
Sign.
Siw Reidun Wærås Bjerke
Employee representative
Sign.
Trond Fiskum
President and CEO
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STATEMENT OF CHANGES IN EQUITY
MEUR
SHARE
CAPITAL
TREASURY
SHARES
SHARE
PREMIUM
OTHER
RESERVES
RETAINED
EARNINGS
TOTAL
EQUITY
Equity as at 01.01.2024 84.6 (3.2) 180.6 (50.1) 47.5 259.4
Purchase of treasury shares (2.4) (2.4)
Share-based compensation 1.1 1.1
Total comprehensive income for the year:
Profit for the year 40.1 40.1
Other comprehensive income:
Translation differences (4.0) 0.4 (8.6) (0.5) (12.7)
Total comprehensive income for the year (4.0) 0.4 (8.6) (0.5) 40.1 27.4
Equity as of 31.12.2024/01.01.2025 80.6 (5.2) 172.0 (49.5) 87.6 285.5
Purchase of treasury shares 0.0 0.0
Share-based compensation 0.0 0.0
Total comprehensive income for the year:
Loss for the year (17.8) (17.8)
Other comprehensive income:
Translation differences 0.0 0.0 0.0 0.0 0.0
Total comprehensive income for the year 0.0 0.0 0.0 0.0 (17.8) (17.8)
Equity as of 31.12.2025 80.6 (5.2) 172.0 (49.5) 69.8 267.7
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NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY
NOTE 1 REPORTING ENTITY
Kongsberg Automotive ASA (“the company”) is a limited liability company incorporated and domi-
ciled in Norway. The address of its registered office is Dyrmyrgata 48, NO-3601 Kongsberg, Norway.
The company is listed on the Oslo Stock Exchange. The company is the ultimate parent of the group
and serves the purpose of a holding company in the group.
The information provided in the consolidated financial statements covers the company to a
significant degree. For a description of the operating activities of the subsidiaries of Kongsberg
Automotive ASA, please refer to the consolidated financial statements of the group. The company
financial statements were authorized for issue by the Board of Directors on March 25, 2026.
NOTE 2 STATEMENT OF COMPLIANCE
The company’s financial statements are prepared in accordance with simplified IFRS according to
the Norwegian Accounting Act § 3-9, and regulations regarding simplified application of IFRS issued
by the Ministry of Finance on February 7, 2022.
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES
The company’s significant accounting principles are consistent with the accounting principles of
the group, as described in note 3 of the group’s consolidated financial statement. Where the notes for
the company are substantially different from the notes for the group, it is shown accordingly.
Otherwise, refer to the notes to the group’s consolidated financial statements.
Dividends and group contributions received are recognized as income in the same year as allo-
cated by the subsidiary. If the dividend exceeds the share of retained profits after the purchase, the
excess part represents repayment of invested capital, and the disbursements received are deducted
from the value of the investment in the balance sheet. Kongsberg Automotive ASA has decided to uti-
lize the option in the regulations of simplified application of international financial reporting stand-
ards, which allow it to account for dividends and group contributions in accordance with Norwegian
General Accepted Accounting Principles (NGAAP).
The company’s presentation currency is the euro, and its functional currency was assessed to be
changed from Norwegian krone to euro effective January 1, 2025. This change eliminates foreign-
exchange gains and losses on EUR-denominated financial instruments and removes translation
NOTE 4 INVESTMENTS IN SUBSIDIARIES
ENTITY NAME
COUNTRY
OF INCOR-
PORA TION
OWNER-
SHIP 2025
& 2024 2025 2024
Kongsberg Automotive Holding 2 AS Norway 100% 223.1 125.7
KA Group AG Switzerland 0%* 0.0 97.4
Kongsberg Automotive (Wuxi) Ltd China 100% 0.8 0.8
Kongsberg Automotive Ltda Brazil 100% 2.0 2.0
Kongsberg Automotive Ltd Korea 100% 1.5 1.5
Kongsberg Automotive (India) Private Ltd India 100% 0.8 0.8
Kongsberg Automotive Driveline System India Ltd India 100% 0.4 0.4
Total investments in subsidiaries 228.6 228.6
exposure related to the Norwegian holding operations. All financial information presented in euros
has been rounded to the nearest thousand, unless stated otherwise.
Investments
In 2025, no new investments were made in subsidiaries. The change in the carrying amount of the
investments in Kongsberg Automotive Holding 2 AS and KA Group AG is due to the following: the
planned closure of the Swiss entity in 2026 required the parent company to fully impair its shareholding
in this subsidiary, while the impairment test performed for the shareholding in Kongsberg Automotive
Holding 2 AS indicated that the previously recognized impairment could be reversed in an amount
corresponding to the impairment charges recorded for the shareholding in KA Group AG. As a result,
there was no net impact on the total carrying value of the parent company’s investments in
subsidiaries.
In 2024, the company executed a debt-equity conversion to Kongsberg Automotive Holding 2 AS, as
part of its efforts to optimize the capital structure of the subsidiary.
* The carrying amount of the investment in KA Group AG resulted from capital contributions made by the parent
company in prior years without the issuance of shares. KA Group AG is directly and wholly owned by another
subsidiary of the group, Kongsberg Actuation Systems B.V.
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Impairment testing
The company has performed impairment tests on all KA companies owned or financed directly by
Kongsberg Automotive ASA.
The following assets have been considered for impairment: share investments, intercompany
loans to group companies, and intercompany receivables. The impairment assessment is made at a
“net investment” level (all direct loans, receivables, and share investments are considered together).
Shares are impaired before loans, and loans before receivables.
In a first step, the net investment was compared to the carrying value of the equity of the respective
subsidiaries. The equity carrying value is considered as a conservative valuation of the company value.
In a second step, the net investment was compared to the enterprise value. The enterprise value
has been derived from the net present value of all future cash flows including terminal value. The
principal model has been taken into account as well as all assumptions used for the three-year
strategic planning in the cash flow estimation of each tested subsidiary.
Discount rate assumptions
The required rate of return was calculated using the WACC method. The same WACC was used as calcu-
lated for group impairment purposes. For details, please refer to group note 15.
Impairment test results and conclusion
Based on the results from the impairment test performed, the company concluded that there is no
requirement for impairment indicated as at 31.12.2025.
NOTE 5 SALARIES AND SOCIAL EXPENSES
NOTE 4 INVESTMENTS IN SUBSIDIARIES (CONTINUED)
NOTE 7 FINANCIAL ITEMS
MEUR 2025 2024
Wages and salaries 0.3 0.3
Pension cost (defined contribution plans) 0.0 0.0
Total salaries and social expenses 0.3 0.3
MEUR 2025 2024
Dividend and other financial income 5.3 26.6
Foreign currency gains* 0.0 25.1
Account receivables securitization – income 0.6 0.7
Interest income 3.6 4.0
Reversal of write-down of intercompany shares 0.0 2.2
Total financial income 9.5 58.6
Interest expense (8.8) (12.0)
Foreign currency losses* (27.8) 0.0
Change in value of financial derivatives 0.0 (0.1)
Write-down of intercompany loans (2.9) (0.3)
Other financial expenses (0.4) (0.4)
Total financial expenses (39.9) (12.8)
Total financial items (30.4) 45.8
MEUR 2025 2024
Service costs 2.4 2.6
Other costs 0.5 0.9
Total other operating expenses 2.9 3.5
The company had no employees as of 31.12.2025 and 31.12.2024. Wage and salaries comprise
directors’ fees.
* Includes unrealized currency loss of MEUR 27.7 (2024: unrealized gain of MEUR 21.1)
NOTE 6 OTHER OPERATING EXPENSES
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Tax recognized in the statement of income
The major components of income tax expense:
NOTE 8 TAXES
MEUR 2025 2024
Current tax on profits for the year* (0.4) (2.2)
Adjustments in respect of prior years – current tax (0.1) (0.1)
Total current tax expense (0.5) (2.3)
Current year change in deferred tax 7.4 5.0
Adjustments in respect of prior years – deferred tax 0.1 0.1
Total change in deferred tax 7.5 (4.9)
Total income tax (expense)/credit 7.0 (7.2)
MEUR 2025 2024
Profit/(loss) before taxes (24.8) 47.3
Expected tax calculated at Norwegian tax rate 5.5 (10.4)
Dividends (permanent differences) 1.1 5.7
Other permanent differences 0.9 (0.3)
Effect of withholding tax* (0.4) (2.2)
Income tax (expense)/credit 7.0 (7.2)
Average effective tax rate 28.2% 15.2%
MEUR 2025 2024
Current income tax receivables 0.0 0.0
Current income tax liabilities 0.0 0.0
Total 0.0 0.0
MEUR 2025 2024
Deferred tax liability (19.0) (26.5)
Total (19.0) (26.5)
* Includes withholding tax of MEUR 0.4. Further details can be found in table below.
Tax recognized in other comprehensive income
No tax was recognized in other comprehensive income in 2025 and 2024.
Reconciliation of the Norwegian nominal statutory tax rate to effective tax rate
Tax recognized in the statement of financial position
Current tax
Deferred tax
Deferred tax positions are netted within the tax entity.
* Paid by the distributing entity.
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MEUR
OPENING
BALANCE
CHARGED
TO INCOME
CHANGES
IN R ATE OCI
EXCHANGE
DIFFER-
ENCES
CLOSING
BALANCE
Property, plant, and equipment 0.0 0.0 0.0 0.0 0.0 0.0
Retirement benefits obligations 0.1 0.0 0.0 0.0 0.0 0.1
Losses 0.1 0.4 0.0 0.0 0.0 0.5
Trade and other receivables 3.3 0.3 0.0 0.0 0.0 3.6
Unrealized FX on long-term receivables/payables (30.3) 6.8 0.0 0.0 0.0 (23.5)
Other temporary differences 0.3 0.0 0.0 0.0 0.0 0.3
Net deferred tax asset/(liability) (26.5) 7.5 0.0 0.0 0.0 (19.0)
NOTE 8 TAXES (CONTINUED)
Specification of deferred tax assets/(liabilities) recognized in the statement of financial position
Tax positions not recognized
The company had no unrecognized positions in 2025 and 2024.
Remaining lifetime of tax losses (net tax value)
Tax losses have no expiration date and amount to MEUR 0.5.
NOTE 9 INTANGIBLE ASSETS
All intangible assets were fully amortized as of December 31, 2025.
NOTE 10 PROPERTY, PLANT & EQUIPMENT (PP&E)
All PP&E assets were fully depreciated as of December 31, 2025.
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NOTE 11 RIGHT-OF-USE ASSETS
All right-of-use assets were fully depreciated as of December 31, 2025.
Lease liabilities
MEUR 2025 2024
Non-current lease liabilities 0.0 0.1
Current lease liabilities 0.0 0.0
Total lease liabilities 0.0 0.1
Maturity analysis – contractual undiscounted cash flows
MEUR 2025 2024
Within one year 0.0 0.1
One to five years 0.0 0.0
More than five years 0.0 0.0
Total undiscounted lease liabilities 0.0 0.1
NOTE 12 TRADE AND OTHER RECEIVABLES
In 2019, the group changed from a notional cash pool under Kongsberg Automotive ASA to a physical
cash pool with KA Group AG as the master header for the group and Kongsberg Automotive ASA as a
sub-header for some of the European entities. In addition, its cash held by KA Group AG was included
as in-house bank under trade and other receivables.
Specification of trade and other receivables
MEUR 2025 2024
Short-term group loans and receivables 9.6 9.7
In-house bank 24.8 1.3
Other short-term receivables 0.1 0.1
Receivables 34.5 11.1
Prepayments 0.5 0.4
Total trade and other receivables 35.0 11.5
MEUR 2025 2024
NOK 25.7 4.5
EUR 8.9 5.5
USD 0.4 1.5
Total trade and other receivables 35.0 11.5
Receivables by currency
NOTE 13 SHARE CAPITAL
Refer to note 18 in the group’s statements.
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NOTE 14 INTEREST-BEARING LIABILITIES
Interest-bearing liabilities as presented in the statement of financial position
Specification of total interest-bearing liabilities by currency
MEUR 2025 2024
External non-current interest-bearing loans and borrowings 110.0 110.0
Capitalized arrangement fees (1.9) (2.5)
Total interest-bearing liabilities 108.1 107.5
MEUR 2025 2024
EUR 110.0 110.0
Capitalized arrangement fee (1.9) (2.5)
Total interest-bearing liabilities 108.1 107.5
On June 24, 2024, new senior secured four-year bonds with the principal amount of MEUR 110.0 were
issued (ISIN: NO0013260943). The Notes are due in 2028 and have an interest rate of 3M EURIBOR
plus a margin of 5.25% (payable quarterly). The Notes are listed on the Open Market of Frankfurt
Stock Exchange and the Oslo Stock Exchange. Subject to an incurrence covenant, the group can at
any time tap the bond with an additional notional of up to MEUR 50.0. The company may call the
bond in parts any time after December 2026 at the agreed call prices plus accrued interest on the
redeemed amounts. Refer to note 27 of the group’s statements for list of the material group compa-
nies, guaranteeing the new issued secured bond notes.
Changes in liabilities arising from financing activities
MEUR 2025 2024
Opening balance as of 01.01. 107.5 197.8
Net proceeds from issuing the new bond notes 0.0 107.5
Repayment of IC loans 0.0 (199.0)
Amortization of capitalized arrangement fees 0.6 0.0
Reduction of capitalized arrangement fees due to the
redemption of the old bond
0.0 1.3
Foreign exchange movement 0.0 6.4
Translation effect 0.0 (6.6)
Other 0.0 0.1
Closing balance as of 31.12. 108.1 107.5
NOTE 15 RISK MANAGEMENT
The company’s risk management is an integral part of the group’s risk management. Refer to note 23
of the group’s statements for further information.
Currency exposure risk
Management monitors the currency exposure at a group level. Due to the change of the functional
currency from NOK to EUR effective January 1, 2025, the foreign exchange risk on EUR-denominated
financial instruments was eliminated. The group’s treasury function regularly evaluates the use of
hedging instruments.
Interest risk
The company is exposed to limited interest risk.
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MEUR 2025 2024
Trade payables 0.5 0.8
Group payables 78.4 57.0
Accrued expenses 1.3 1.0
Other short-term liabilities 0.0 0.2
Total trade and other payables 80.2 59.0
MEUR
ACCRUED
EXPENSES
OTHER
SHORT-TERM
LIABILITIES
GROUP
PAYABLES
TRADE
PAYABLES TOTAL 2025
Repayable 0–3 months
after year end
0.5 0.0 0.0 0.5 1.0
Repayable 3–6 months
after year end
0.6 0.0 0.0 0.0 0.6
Repayable 6–9 months
after year end
0.0 0.0 0.0 0.0 0.0
Repayable 9–12 months
after year end
0.2 0.0 78.4 0.0 78.6
Total 1.3 0.0 78.4 0.5 80.2
Provisions
The company had no provisions as of December 31, 2025, and December 31, 2024.
Maturity structure
NOTE 16 TRADE AND OTHER PAYABLES
Specification of trade and other payables as presented in the statement
of financial position
NOTE 17 REMUNERATION AND FEES FOR MANAGEMENT,
BOARD OF DIRECTORS AND AUDITORS
Refer to note 26 in the group’s consolidated financial statements.
NOTE 18 COMMITMENTS AND GUARANTEES
Guarantees
Some subsidiaries require a financial support guarantee from the parent to satisfy the going concern
assumption.
The company has issued guarantees toward suppliers of subsidiaries. The risk exposure is
assessed to be immaterial.
In 2025, total parent guarantees in the total amount of around MEUR 35.0 (MEUR 26.0 and
MUSD 10.0) were issued for entities in Slovakia, Poland, and Mexico.
In relation to the Offering of Senior Secured Notes, the company is the parent guarantor.
NOTE 19 CONTINGENT LIABILITIES
Refer to note 28 in the group’s consolidated financial statements.
NOTE 20 SUBSEQUENT EVENTS
No significant subsequent events have been identified. Refer to note 29 in the group’s consolidated
financial statements for the group-relevant subsequent events.
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MEUR 2025 2024
Kongsberg Actuation Systems S.L.U. 0.1 0.1
Kongsberg Automotive Holding 2 AS 5.2 0.0
Kongsberg Automotive Hong Kong Ltd 0.1 1.5
Kongsberg Automotive (Wuxi) Ltd. 2.6 2.6
KA Group AG 0.0 2.1
Other group companies 1.6 3.3
Total outstanding receivables to other group companies 9.6 9.7
MEUR 2025 2024
Group payables* 78.4 57.0
Total 78.4 57.0
Current assets and liabilities have due dates within one year. The outstanding accounts are repayable
on demand based on the available liquidity in the respective subsidiary.
Outstanding liabilities with other group companies
* Includes the group contribution payable of MEUR 28.9 to Kongsberg Automotive Holding 2 AS as at
December 31, 2025, and December 31, 2024.
Outstanding loans and receivables with other group companies
Loans to other group companies
MEUR 2025 2024
Kongsberg Automotive Holding 2 AS 208.6 235.9
Kongsberg Automotive Finance BV 2.5 2.5
Other group companies 0.3 0.2
Total outstanding loans with other group companies 211.4 238.6
In 2024, the company executed a debt-equity conversion to Kongsberg Automotive Holding 2 AS as
part of its efforts to optimize the capital structure of the subsidiary. This transaction resulted in a
MEUR 125.7 increase in the company’s shareholding in the subsidiary, while simultaneously reducing
intercompany loans given to subsidiaries.
Most of the company's loans to group companies have due dates exceeding one year.
The interest rate on loans to group companies consists of the reference rate in the respective
currency plus a margin. The margin on new intercompany loans is determined according to Moody’s
rating methodology.
Short-term group receivables
NOTE 21 RELATED-PARTY TRANSACTIONS
The group's ultimate parent is Kongsberg Automotive ASA.
The company has carried out the following transactions with related parties:
Specification of revenues – type of services
MEUR 2025 2024
Trademark fee* 5.2 1.9
Service fee** 3.7 3.4
Operating revenues 8.9 5.3
MEUR 2025 2024
Norway 7.9 0.0
Switzerland 1.0 5.3
Operating revenues 8.9 5.3
* In 2024, entirely from KA Group AG; in 2025, entirely from Kongsberg Automotive Holding 2 AS
** In 2024, entirely from KA Group AG; in 2025, MEUR 1.0 from KA Group AG and MEUR 2.7 from Kongsberg
Automotive Holding 2 AS
Specification of revenues – revenues by geographical location
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CONSOLIDATED
KEY FINANCIAL DATA
Definitions
5 Profit/(loss) after tax
9 Gross expenses – Payments from customers
10 ((Operating profit/(loss)) + depreciation and
amortization)/Operating revenues
11 (Operating profit/(loss))/Operating
revenues
12 (Net profit/(loss))/Operating revenues
13 (Operating profit/(loss))/Average total assets
14 EBIT/Average capital employed
15 (Net profit/(loss))/Average equity
17 Operating assets – Operating liabilities
20 Cash + unutilized credit facilities and loan
approvals
22 Current assets/Current liabilities
23 NIBD/Adjusted EBITDA
25 Full-time equivalents (FTEs)
2025 2024 2023 2022 2021
Operations and profit*
1 Operating revenues
(MEUR) 712.8 788.2 884.9 905.6 831.4
2 Depreciation /amortization
(MEUR) 30.1 29.8 32.9 34.9 32.1
3 Operating profit/(loss)
(MEUR) 13.6 18.7 (19.7) 63.1 47.5
4 Profit/(loss) before taxes
(MEUR) 0.3 (2.3) (45.7) 46.3 38.0
5 Net profit/(loss)
(MEUR) 0.2 (18.2) (59.1) 20.8 28.5
6 Cash flow from operating
activities
(MEUR) 58.5 32.4 21.5 64.5 56.7
7 Investment in property,
plant, and equipment
(MEUR) 16.3 24.7 28.5 26.4 25.6
8 Development expenses, gross
(MEUR) 29.4 31.2 35.0 42.2 55.9
9 Development expenses, net
(MEUR) 24.9 26.2 28.1 36.6 47.5
Profitability*
10 EBITDA margin
% 6.1 6.2 1.5 10.8 9.6
11 Operating margin
% 1.9 2.4 (2.2) 7.0 5.7
12 Net profit margin
% 0.0 (2.3) (6.7) 2.3 3.4
13 Return on total assets
% 2.3 2.8 (2.6) 8.2 5.7
14 Return on capital employed
(ROCE)**
% 4.4 5.8 (5.9) 6.8 8.5
15 Return on equity
% 0.1 (8.7) (23.8) 7.6 11.2
2025 2024 2023 2022 2021
Capital as at 31.12.
16 Total assets
(MEUR) 565.1 602.9 721.5 797.9 984.8
17 Capital employed**
(MEUR) 295.0 319.5 319.9 538.8 507.6
18 Total equity
(MEUR) 180.9 203.0 218.1 280.5 265.6
19 Equity ratio
% 32.0 33.7 30.2 35.2 27.0
20 Liquidity reserve
(MEUR) 105.8 99.2 219.2 287.4 140.9
21 Long-term
interest-bearing debt
(MEUR) 188.5 196.3 254.7 258.3 338.7
22 Current ratio (banker's ratio)
1.9 2.0 2.2 2.4 1.6
23 Le verage rat io
2.2 2.5 1.8 0.8 3.8
24 Leverage ratio as per
bond terms***
2.2 2.1 n/a n/a n/a
Personnel
25 Number of employees (FTEs)
at 31.12.
4,291 4,714 5,286 5,270 5,624
* Items in the Statement of comprehensive income and Statement of cash flow classified as discontinued oper-
ations are excluded in 2022 and 2021.
** Capital employed in 2023 has been adjusted to align with the updated definition starting from 2024; ROCE in
2023 has been adjusted to align with the updated capital employed definition and transition from adjusted
EBIT to EBIT starting from Q1 2024; Capital employed and ROCE in 2022 and 2021 have not been adjusted and
follow the old definition.
*** Since new bond notes were issued on June 24, 2024, the ratio is only available from the year 2024 onward.
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ALTERNATIVE PERFORMANCE
MEASURES (APM)
This section describes the non-GAAP financial measures that are used in this report and in the
quarterly presentation.
The following measures are not defined nor specified in the applicable financial reporting
framework of IFRS GAAP. They may be considered as non-GAAP financial measures that may include
or exclude amounts that are calculated and presented according to IFRS GAAP.
• Operating profit/(loss) – EBIT/Adjusted EBIT
• EBITDA/Adjusted EBITDA
• Operating revenues at constant currencies
• Business wins
• Free cash flow
• NIBD
• Capital employed
• ROCE
OPERATING PROFIT/(LOSS) – EBIT/ADJUSTED EBIT
EBIT, earnings before interest and tax, is defined as the earnings excluding the effects of how the
operations were financed and taxed, excluding foreign exchange gains and losses. Adjusted EBIT is
defined as EBIT excluding unusual or non-recurring items and restructuring items. Restructuring
items include severance costs related to the overhead costs optimization program.
EBIT is used as a measure of operational profitability. Consequently, the group also reports the
adjusted EBIT, which is the EBIT excluding restructuring items and impairment losses/reversal of
impairment.
2025
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Operating profit/(loss)
(2.8)
16.4 13.6
Additional salaries and social expenses 1.7 1.6 3.3
Other additional operating expenses/(income) (1.2) 0.1 (1.1)
Impairment losses/(reversal of impairment) 1.6 1.1 2.7
Adjusted EBIT
(0.7)
19.2 18.5
Adjusted EBIT margin -0.2% 6.4% 2.6%
2024
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Operating profit/(loss) 9.1 9.6 18.7
Restructuring costs (0.3) (0.3) (0.6)
Additional salaries and social expenses 5.3 1.1 6.4
Other additional operating expenses/(income) (0.6) 0.2 (0.4)
Impairment losses/(reversal of impairment) (4.6) (0.4) (5.0)
Adjusted EBIT 8.9 10.2 19.1
Adjusted EBIT margin 1.9% 3.3% 2.4%
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EBITDA / ADJUSTED EBITDA
EBITDA is defined as EBIT (previously defined) before depreciation and amortization. Adjusted
EBITDA is therefore EBITDA excluding restructuring items and impairment losses/reversal of
impairment.
EBITDA is used as an additional measure of the group’s operational profitability, excluding the
impact from depreciation and amortization.
2025
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Operating profit/(loss) (2.8) 16.4 13.6
Depreciation 15.0 14.2 29.2
Amortization 0.8 0.1 0.9
EBITDA 13.0 30.7 43.7
Restructuring items 0.5 1.7 2.2
Impairment losses/(reversal of impairment) 1.6 1.1 2.7
Adjusted EBITDA 15.1 33.5 48.6
Adjusted EBITDA margin 3.7% 11.2% 6.8%
2024
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Operating profit/(loss) 9.1 9.6 18.7
Depreciation 14.7 14.4 29.1
Amortization 0.6 0.1 0.7
EBITDA 24.4 24.1 48.5
Restructuring items 4.4 1.0 5.4
Impairment losses/(reversal of impairment) (4.6) (0.4) (5.0)
Adjusted EBITDA 24.2 24.7 48.9
Adjusted EBITDA margin 5.0% 8.0% 6.2%
OPERATING REVENUES AT CONSTANT CURRENCIES
In order to measure the actual revenue development and to have it comparable year-on-year, cur-
rency translation effects are excluded. For this reason, the actual operating revenues are remeasured
at prior-year currency rates (constant currencies).
BUSINESS WINS
Business wins are reported when KA is awarded: (1) new contracts, (2) an extension of the existing
contract, (3) price or volume adjustments to existing programs/business awards. Annualized busi-
ness wins are calculated as the annual average of total awarded future revenues, disregarding the
sales in the years of start of production and end of production.
2025
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Operating revenues (incl. currency translation effects) 414.2 298.5 712.8
Currency translation effects (11.7) (5.1) (16 .7)
Operating revenues (excl. currency translation effects) 425.9 303.6 729.6
2025
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Annualized business wins 35.7 84.2 119.9
Lifetime business wins 104.3 234.7 339.0
2024
DRIVE
CONTROL
SYSTEMS
FLOW
CONTROL
SYSTEMS GROUP
MEUR
Annualized business wins 249.1 133.7 382.8
Lifetime business wins 1,074.6 451.4 1,526.0
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MEUR 2025 2024
Interest-bearing loans and borrowings 133.1 132.5
Long-term interest-bearing lease liabilities 55.4 63.8
Other short-term liabilities, interest-bearing 10.2 9.9
Cash and cash equivalents (90.8) (84.3)
Net interest-bearing debt 107.9 121.9
FREE CASH FLOW
Free cash flow is measured based on the sum of cash flow from operating activities, investing
activities, financial activities, and currency and translation effects on cash flow (together described
as Change in cash), excluding net draw-down/repayment of debt and proceeds received from capital
increase/purchase of treasury shares.
The group considers that this measurement illustrates the amount of additional cash generated
by the group that it has at its disposal to pursue additional investments or to repay debt
NIBD
Net interest-bearing debt (NIBD) consists of interest-bearing liabilities less cash and cash equivalents.
The group risk of default and financial strength is measured by the net interest-bearing debt. It
shows the group’s financial position and leverage. As cash and cash equivalents can be used to repay
debt, this measurement shows the net overall financial position of the group.
CAPITAL EMPLOYED
Capital employed includes the total sum of intangible assets, property, plant, and equipment, net
working capital (which in turn comprises trade receivables and inventories net of trade payables),
and right-of-use assets less lease liabilities.
Capital employed is measured to assess how much capital is needed for the operations/business
to function and evaluate if the capital employed can be utilized more efficiently, and/or if operations
should be discontinued.
MEUR 2025 2024
Intangible assets 80.6 84.6
Property, plant, and equipment 103.5 117.3
Right-of-use assets 51.4 54.8
Net working capital
(inventories and trade receivables less trade payables)
125.1 136.5
IFRS 16 lease liabilities (long-term and short-term) (65.6) (73.7)
Capital employed 295.0 319.5
MEUR 2025 2024
Capital employed beginning
(1)
01.01.2025 319.5 01.01.2024 319.9
Capital employed at end
(2)
31.12 2025 295.0 31.12 2024 319.5
EBIT last twelve months
(3)
13.6 18.7
ROCE
(3)/((1) + (2)) * 2
4.4% 5.8%
ROCE
Return on capital employed (ROCE) is based on EBIT for the last twelve months divided by the
average of capital employed at the beginning and end of the period.
Return on capital employed is used to measure the return on the capital employed and is used to
assess the company’s profitability and efficiency during the period under review. The group consid-
ers this ratio as appropriate to measure the return of the period.
MEUR 2025 2024
Cash flow from operating activities 58.5 32.4
Cash flow used by investing activities (14.8) (21.4)
Cash flow used by financing activities (27.6) (92.8)
Currency effects on cash (9.6) 1.4
Add back/less:
Payments for purchase of treasury shares 0.0 2.4
Net proceeds from issuing new bond notes 0.0 (107.5)
Payments for redemption/repurchase of the old bond notes 0.0 190.2
Securitization facility (drawn)/ repaid 0.0 (25.0)
Net (draw down)/repayment of debt 0.2 0.0
Free cash flow 6.7 (20.3)
ANNUAL REPORT 2025 // DECLARATION TO THE ANNUAL REPORT
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Responsibility statement
The President & Chief Executive Ofcer and the Board of Directors conrm, to the best of their knowledge, that the nancial statements for the period
January 1 to December 31, 2025, have been prepared in accordance with current applicable accounting standards, and give a true and fair view of the
company’ s and the group’s assets, liabilities, nancial position, and prot or loss of the entity and the group taken as a whole. We also conrm that
the Board of Directors’ report includes a true and fair view of the development and performance of the business and the position of the entity and the
group, together with a description of the principal risks and uncertainties the group and the company face.
Additionally, we conrm that the annual report and the report of the Board of Directors have been prepared in accordance with standards for
sustainability reporting established pursuant to Section 2-6 of the Accounting Act, and in accordance with rules laid down pursuant to Article 8(4) of
the Taxonomy Regulation.
Kongsberg, March 25, 2026
The Board of Directors and the President & CEO of Kongsberg Automotive ASA
DECLARATION TO THE
ANNUAL REPORT 2025
Sign.
Ulla-Britt Fräjdin-Hellqvist
Director
Sign.
Siw Reidun Wærås Bjerke
Employee representative
Sign.
Bård Klungseth
Deputy Chair
Sign.
Hilde-Yvonne Beggerud
Employee representative
Sign.
Olav Volldal
Chair
Sign.
Brian Kristoffersen
Director
Sign.
Synnøve Gjønnes
Director
Sign.
Ørjan Langnes
Employee representative
Sign.
Trond Fiskum
President and CEO
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AUDITOR’S
REPORT
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Deloitte AS
Dronning Eufemias gate 14
Postboks 221
NO
-0103 Oslo
Norway
+47 23 27 90 00
www.deloitte.no
Deloitte AS and Deloitte Advokatfirma AS are the Norwegian affiliates of Deloitte NSE LLP, a member firm of Deloitte Touche T
ohmatsu Limited, a
UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and ind
ependent entities. DTTL and
Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network
of member firms.
Deloitte Norway conducts business through two legally separate and independent limit
ed liability companies; Deloitte AS, providing audit,
consulting, financial advisory and risk management services, and Deloitte Advokatfirma AS, providing tax and legal services.
Registrert i Foretaksregisteret
Medlemmer av Den norske Revisorforening
Organisasjonsnummer: 980 211 282
To the General Meeting of Kongsberg Automotive ASA
INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Kongsberg Automotive ASA, which comprise:
• The financial statements of the parent company Kongsberg Automotive ASA (the Company), which
comprise the statement of financial position as at 31 December 2025, statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
• The financial statements of Kongsberg Automotive ASA and its subsidiaries (the Group), which
comprise the consolidated statement of financial position as at 31 December 2025, consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the financial statements, including
material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements of the Company give a true and fair view of the financial position of the
Company as at 31 December 2025, and its financial performance and its cash flows for the year then
ended in accordance with simplified application of International Accounting Standards according to
the Norwegian Accounting Act section 3-9, and
• the financial statements of the Group give a true and fair view of the financial position of the Group as
at 31 December 2025, and its financial performance and its cash flows for the year then ended in
accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by relevant
laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code)
as applicable to audits of financial statements of public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of Kongsberg Automotive ASA for 16 years from the election by the general meeting
of the shareholders on 4 June 2010 for the accounting year 2010.
Independent auditor’s report
Kongsberg Automotive ASA
2
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of 2025. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Impairment of Intangible assets, including Goodwill, Property, plant and equipment and Right-of use assets
Description of the Key Audit Matter How the matter was addressed in the audit
Refer to note 15 to the Group financial statements for
description of management’s impairment testing
process and key assumptions.
As disclosed in note 12, 13 and 14 the carrying value
of Intangible assets, including Goodwill, Property,
plant and equipment and Right-of use assets
(identified assets) amounted to EUR 235.5 million at
31 December 2025.
Management’s annual impairment testing is based on
the Group’s three-year long-range plan, adjusted for
relevant recent changes in internal short-term
forecasts and market data. Changes in these
assumptions could have a significant impact on the
value in use of the cash-generating units (CGU’s) and
the recoverability of the carrying values of the
identified assets allocated to these CGU’s.
Transparent disclosures and clarity about sensitivities
to key assumptions used in the valuations are critical
to inform readers how management has made their
assessments, given the uncertainty associated with
the valuation of the recoverable amounts.
Due to the inherent uncertainty involved in the
forecasting and discounting of future cash flows,
which are the basis of the assessment of
recoverability of the CGU and the level of
management judgement involved, this has been
identified as a key audit matter.
We challenged management’s assumptions
used in its impairment model for assessing the
recoverability of the identified assets.
We focused on the appropriateness of CGU
identification, methodology applied to estimate
recoverable values, discount rates and
forecasted cash flows. Specifically:
• We obtained a detailed understanding of
management’s process for performing the
CGU impairment assessment. As part of
this we assessed the design and
implementation of the key controls.
• We tested the methodology applied to
estimate recoverable values as compared
to the requirements of IAS 36, Impairment
of assets;
• We tested the mathematical accuracy of
management’s impairment models;
• We obtained an understanding of and
assessed the basis for the key assumptions
for the Group’s four-year long-range plan;
• We evaluated and challenged
management’s cash flow forecasting
included in the four-year plan and the
growth rate beyond with reference to the
recent and historical performance of the
CGU’s and external market forecasts and
by performing sensitivity analysis;
• We assessed the discount rate applied by
benchmarking against independent data.
We used Deloitte valuation specialists to assist
our audit of the impairment testing.
We considered the appropriateness of the
related disclosures provided in note 15.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report, but does not include the financial statements and
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our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the
Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there is
material inconsistency between the Board of Directors’ report and the other information accompanying the
financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appear to be materially misstated. We are required to report if there is a material misstatement in the Board
of Directors’ report or the other information accompanying the financial statements. We have nothing to
report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our statement on the Board of Directors’ report applies correspondingly to the statement on Corporate
Governance.
Our statement that the Board of Directors’ report contains the information required by applicable law does
not cover the sustainability report, for which a separate assurance report is issued.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with simplified application of International Accounting Standards according to the
Norwegian Accounting Act section 3-9, and for the preparation of the consolidated financial statements of the
Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the Company
or the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Independent auditor’s report
Kongsberg Automotive ASA
4
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of accounting,
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s and the Group's ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company and
the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Kongsberg Automotive ASA, we have performed an
assurance engagement to obtain reasonable assurance about whether the financial statements included in
the annual report, with the file 5967007LIEEXZXJDCG21-2025-12-31-1-en.zip, have been prepared, in all
material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5
of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
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5
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in compliance with
ESEF. We conduct our work in compliance with the International Standard for Assurance Engagements (ISAE)
3000 – “Assurance engagements other than audits or reviews of historical financial information”. The
standard requires us to plan and perform procedures to obtain reasonable assurance about whether the
financial statements included in the annual report have been prepared in compliance with the ESEF
Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s processes
for preparing the financial statements in compliance with the ESEF Regulation. We examine whether the
financial statements are presented in XHTML-format. We evaluate the completeness and accuracy of the
iXBRL tagging of the consolidated financial statements and assess management’s use of judgement. Our
procedures include reconciliation of the iXBRL tagged data with the audited financial statements in human-
readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Oslo, 25 March 2026
Deloitte AS
Lars Atle Lauvsnes
State Authorised Public Accountant
(electronically signed)
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2
with the ESRS and for disclosing this Process in subsection Double Materiality Assessment on pages 45-46 of
the Sustainability Statement. This responsibility includes:
• understanding the context in which the Group's activities and business relationships take place and
developing an understanding of its affected stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to
sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected
to affect, the Group's financial position, financial performance, cash flows, access to finance or cost
of capital over the short-, medium-, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to
sustainability matters by selecting and applying appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
Management is further responsible for the preparation of the Sustainability Statement, in accordance with the
Norwegian Accounting Act section 2-3, including:
• compliance with the ESRS;
• preparing the disclosures in subsection EU Taxonomy on pages 57-61 of the Sustainability
Statement, in compliance with the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that management determines is
necessary to enable the preparation of the Sustainability Statement that is free from material
misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making
assumptions and estimates that are reasonable in the circumstances.
Inherent limitations in preparing the Sustainability Statement
In reporting forward-looking information in accordance with ESRS, management is required to prepare the
forward-looking information on the basis of disclosed assumptions about events that may occur in the future
and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events
frequently do not occur as expected.
Sustainability auditor’s responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about
whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to
issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence decisions of users taken on the basis of the Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional
judgement and maintain professional scepticism throughout the engagement.
Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include:
• obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the
effectiveness of the Process, including the outcome of the Process;
• considering whether the information identified addresses the applicable disclosure requirements of
the ESRS; and
• designing and performing procedures to evaluate whether the Process is consistent with the Group's
description of its Process set out in subsection Double Materiality Assessment on pages 45-46.
Our other responsibilities in respect of the Sustainability Statement include:
• identifying where material misstatements are likely to arise, whether due to fraud or error; and
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To the General Meeting of Kongsberg Automotive ASA
INDEPENDENT SUSTAINABILITY AUDITOR'S LIMITED ASSURANCE REPORT
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of
Kongsberg Automotive ASA, included in Sustainability Statement of the Board of Directors' of the Board of
Directors’ report (the “Sustainability Statement”), as at 31 December 2025 and for the year then ended.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects,
in accordance with the Norwegian Accounting Act section 2-3, including:
• compliance with the European Sustainability Reporting Standards (ESRS), including that the process
carried out by the Group to identify the information reported in the Sustainability Statement (the
“Process”) is in accordance with the description set out in subsection Double Materiality
Assessment on pages 45-46, and
• compliance of the disclosures in subsection EU Taxonomy on pages 57-61 of the Sustainability
Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical
financial information (“ISAE 3000 (Revised)”), issued by the International Auditing and Assurance Standards
Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion. Our responsibilities under this standard are further described in the Sustainability auditor’s
responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements as required by relevant laws and
regulations in Norway and the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for Accountants
(IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence
and due care, confidentiality and professional behaviour.
The firm applies International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Other matter
The comparative information included in the Sustainability Statement for the financial year 2023 and previous
years was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter.
Responsibilities for the Sustainability Statement
The Board of Directors and the Managing Director (management) are responsible for designing and
implementing a process to identify the information reported in the Sustainability Statement in accordance
179
ANNUAL REPORT 2024 // AUDITOR'S REPORT
Auditor’s Report
Introduction
Contents
Governance Business and PerformanceBoD’s Letter Sustainability Statements Financial Statements
Independent sustainability auditor's
limited assurance report
Kongsberg Automotive ASA
4
• performed inquiries of selected relevant personnel, analytical procedures and substantive
procedures on selected taxonomy disclosures included in the Sustainability Statement.
Oslo, 25 March 2026
Deloitte AS
Lars Atle Lauvsnes
State Authorised Public Accountant - Sustainability Auditor
(This document is signed electronically)
3
• designing and performing procedures responsive to where material misstatements are likely to arise
in the Sustainability Statement. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability
Statement. The procedures in a limited assurance engagement vary in nature and timing from, and are less in
extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower than the assurance that would have been obtained had
a reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the
identification of disclosures where material misstatements are likely to arise in the Sustainability Statement,
whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• obtained an understanding of the Process by:
o performing inquiries to understand the sources of the information used by management
(e.g., stakeholder engagement, business plans and strategy documents); and
o reviewing selected parts of the Group’s internal documentation of its Process; and
• evaluated whether the evidence obtained from our procedures with respect to the Process
implemented by the Group was consistent with the description of the Process set out in subsection
Double Materiality Assessment on pages 45-46.
In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:
• obtained an understanding of the Group's reporting processes relevant to the preparation of its
Sustainability Statement by
o obtaining an understanding of the Group's control environment and selected processes,
control activities and information system relevant to the preparation of the Sustainability
Statement, but not for the purpose of providing a conclusion on the effectiveness of the
Group's internal control
• evaluated whether the information identified by the Process is included in the Sustainability
Statement;
• evaluated whether the structure and the presentation of the Sustainability Statement is in
accordance with the ESRS;
• performed inquires of relevant personnel and analytical procedures on selected information in the
Sustainability Statement;
• performed substantive assurance procedures on selected information in the Sustainability
Statement;
• where applicable, compared selected disclosures in the Sustainability Statement with the
corresponding disclosures in the financial statements and other sections of the Board of Directors’
report;
• evaluated selected methods, assumptions and data for developing estimates and forward-looking
information;
• obtained an understanding of the Group’s process to identify taxonomy-eligible and taxonomy-
aligned economic activities and the corresponding disclosures in the Sustainability Statement;
• evaluated whether information about the identified taxonomy-eligible and taxonomy-aligned
economic activities is included in the Sustainability Statement, and
180
KONGSBERG AUTOMOTIVE ASA
DYRMYRGATA 48
3611 KONGSBERG
NORWAY
T: +47 32 77 05 00
WWW.KONGSBERGAUTOMOTIVE.COM
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