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									     Kongsberg Automotive
     1Q 2006
     Olav Volldal (CEO)




Q1-2006 presentation      Group Finance   27.04.2006   1
Highlights first quarter 2006


  • The market has been stable for car production in Europe and
    North America and a small increase in volumes for heavy
    trucks. Some key customers have lost market share.

  • The volume growth corrected for the effect of Milan, currency
    effects and price reductions is 3,6 %.

  • New important orders won for Head Restraints in North
    America and Seat Comfort products in Asia.

  • Improved operations.

  • Actions taken to prepare for a weaker market in second half of
    2006 and growth in 2007.


  Q1-2006 presentation         Group Finance    27.04.2006           2
Operating revenue pr quarter KA Group


  800


  700


  600


  500


  400
                                                                                         720
                                620     620              651                     653
  300                                                            597
             527        539
  200


  100


     0
             Q2 04      Q3 04   Q4 04   Q1 05            Q2 05   Q3 05           Q4 05   Q1 06


 Q1-2006 presentation                    Group Finance              27.04.2006                   3
Operating revenue pr quarter KA Group


                                                    800
 • Milan contributed with NOK 101
   mill in 1st quarter 2006.                        750
 • Adjusting for
        – non-product sales (tooling and            700
          R&D income)
        – price reductions                          650
        – currency effects
 • the underlying volume increase is
                                                                       720
                                                    600
   3,6 %.
                                                            620
                                                    550


                                                    500
                                                           Q1 05       Q1 06



 Q1-2006 presentation               Group Finance         27.04.2006           4
EBITA pr quarter KA Group


100                                                                                               16 %


 90
                                                                                                  14 %

 80
                                                                                                  12 %
 70

                                                                                                  10 %
 60
                                 90                                                       86
          57                                               85
 50                                                                                               8%


 40
                                                                                   72
                                                                                                  6%
                         75                                       75
 30
                                          71                                                      4%
 20

                                                                                                  2%
 10


 0                                                                                                0%
         Q2 04*          Q3 04   Q4 04   Q1 05            Q2 05   Q3 05           Q4 05   Q1 06



  Q1-2006 presentation                           Group Finance            27.04.2006              5
EBITA pr quarter KA Group

                                                    100
 • Milan contributes with NOK 12 mill
                                                    95
   in 1st quarter 2006.
 • The increase in EBITA for the rest               90

   of the Group is consequently NOK 3               85
   mill.
                                                    80
 • The main explanation factors are
        – Higher raw material prices.               75

        – Lower R&D and marketing cost.             70

        – Excluding Milan other operating                               86
                                                    65
          expenses are down.
                                                    60       71

                                                    55


                                                    50
                                                           Q1 05       Q1 06


 Q1-2006 presentation               Group Finance         27.04.2006           6
KA Group – Key figures

                                           1st quarter
           1000 Nok                     2006         2005           2005
           Product Sales                 689 381      582 660        2 385 956
           Other Sales                    30 385       37 122          139 284
           Total Operating revenue       719 766      619 782        2 525 240
           Cost of Goods sold           (426 193)    (359 347)      (1 426 979)
           Contribution                  293 573      260 435        1 098 261
           Contribution margin            40,8 %       42,0 %            43,5 %
           R&D and Marketing             (54 260)     (56 237)        (214 689)
           Other Operating expenses     (132 303)    (113 740)        (501 132)
           EBITDA                        107 010       90 458          382 440
           Depreciation                  (21 046)     (19 256)         (79 679)
           EBITA                          85 964       71 201          302 761
           EBITA %                        11,9 %       11,5 %            12,0 %
           Amortisation                   (2 797)      (3 332)         (10 552)
           EBIT                           83 167       67 869          292 209
           Profit before taxes            65 426       43 327          240 313
           EBIT %                         11,6 %       11,0 %            11,6 %
           Net Profit                     46 452       34 685          177 809

           Capital employed             793 675       755 173         757 023
           Capex                         22 516        34 103         121 450

           Net interest bearing-debt     591 017      617 597         638 362
           Equity                        529 373      362 970         489 483
           Total Assets                1 887 964    1 545 588       1 748 469     *Profit before tax includes extraordinary finance
           Equity ratio                   28,0 %       23,5 %          28,0 %     elements of NOK 8 million.

 Q1-2006 presentation                               Group Finance                 27.04.2006                                7
Net Interest bearing debt
(Incl Vikaberg and Bilco)


    NOK mill

  900
  850
  800              799               797
                            772
  750
                                                     717      712
  700
  650                                                                            657

  600                                                                                     591
  550
  500
  450
  400
  350
  300
  250
  200
               Q2 04     Q4 04    Q1 05          Q2 05     Q3 05             Q4 05     Q1 06




  Q1-2006 presentation                     Group Finance            27.04.2006                  8
Seat Comfort (SC)


                                                                              Smart TCU
                                                                                              Smart Wire
                              Head Restraints                        Seat Heating




                        Seat Ventilation & Cooling                     Seat Support Systems




 Q1-2006 presentation                                Group Finance             27.04.2006           9
SC Highlights


 • Market stable compared to 1st quarter 2005.

 • Several new businesses won for Head Restraints
   and Seat Heaters in the North American market . . .

 • and Seat Comfort products in Asia.

 • High activity regarding the German market.

 • Significant cost reduction programs introduced.

 Q1-2006 presentation     Group Finance   27.04.2006     10
Operating revenue pr quarter SC


  400


  350


  300


  250


  200
                                                                                       357
  150                                                          304             307
                                                         274
             242                252     245
                        225
  100


   50


    0
            Q2 04       Q3 04   Q4 04   Q1 05        Q2 05     Q3 05           Q4 05   Q1 06


 Q1-2006 presentation                    Group Finance            27.04.2006                   11
Operating revenue pr quarter SC


                                                   400

 • Milan contributed with 101 mill.
                                                   350
 • The remaining product sale is
   up NOK 1 mill                                   300


        – Higher volume for Seat
                                                   250
          Support in Europe and seat
          heaters in China                         200

        – Negative impact of price                                    357

          reductions.                              150

                                                         245
        – Positive currency                        100

 • Other revenue up NOK 10 mill
                                                   50


                                                    0
                                                         Q1 05        Q1 06



 Q1-2006 presentation              Group Finance         27.04.2006           12
EBITA pr quarter SC


70                                                                                                   23 %


                                                                                                     20 %
60

                                                                                                     18 %

50
                                                                                                     15 %


40
                                                                                                     13 %


                                                                                                     10 %
30                                                                                            58
            39                                                                        54
                                    47                        55     51                              8%
                             44              43
20

                                                                                                     5%

10
                                                                                                     3%


 0                                                                                                   0%
           Q2 04            Q3 04   Q4 04   Q1 05            Q2 05   Q3 05           Q4 05   Q1 06



     Q1-2006 presentation                           Group Finance            27.04.2006              13
EBITA pr quarter SC

                                                     80

 • Milan contributes with NOK
   12 mill in 1st quarter 2006.                      70



 • The rest of the portfolio is up                   60
   NOK 3 mill
        – Relocation of production
                                                     50
        – Higher R&D and marketing
          costs.
                                                     40

                                                                        58

                                                     30     43




                                                     20
                                                          Q1 05        Q1 06


 Q1-2006 presentation                Group Finance        27.04.2006           14
Commercial Vehicle Systems (CVS)




                        Clutch Actuation Systems                   Components




                        Gearshift Systems                            Air Couplings




 Q1-2006 presentation                              Group Finance           27.04.2006   15
CVS Highlights


 • The European market for Commercial Vehicles up in
   the 1st quarter.

 • Raw material prices hurt the profit.

 • High market and R&D activities.

 • Strong improvements of internal productivity.




 Q1-2006 presentation      Group Finance   27.04.2006   16
Operating revenue pr quarter CVS


  300



  250



  200



  150
                                273                      278                           275
                                        262                                    249
                        231
                                                               216
  100
             188


   50



    0
            Q2 04       Q3 04   Q4 04   Q1 05        Q2 05     Q3 05           Q4 05   Q1 06


 Q1-2006 presentation                    Group Finance            27.04.2006                   17
Operating revenue pr quarter CVS


                                                280

   The increase reflects the market in
                                                270
   general and the production rate of
   our customers.                               260


                                                250


                                                240
                                                                   275

                                                230   262


                                                220


                                                210


                                                200
                                                      Q1 05        Q1 06



 Q1-2006 presentation           Group Finance         27.04.2006           18
EBITA pr quarter CVS


35                                                                                                   16 %



                                                                                                     14 %
30


                                                                                                     12 %
25

                                                                                                     10 %
20                                  31
            13                                                                                       8%
                                                             27
15                                                                                            25
                            27                                                                       6%

10                                           26
                                                                     22                              4%


 5
                                                                                                     2%

                                                                                      6
 0                                                                                                   0%
           Q2 04*           Q3 04   Q4 04   Q1 05            Q2 05   Q3 05           Q4 05   Q1 06



     Q1-2006 presentation                           Group Finance            27.04.2006              19
EBITA pr quarter CVS


                                                    35
      Positive impact from higher sales
      balanced by:                                  33


                                                    31
        – Lower contribution as a result of
                                                    29
          significant increase in raw
          materials.                                27

        – Increased activity in R&D and             25
          marketing to be able to leverage on
          future opportunities.                     23


                                                    21     26          25

                                                    19


                                                    17


                                                    15
                                                         Q1 05        Q1 06


 Q1-2006 presentation               Group Finance        27.04.2006           20
Gearshifts (GS)




                        Automatic shifters                   Manual shifters




 Q1-2006 presentation                        Group Finance       27.04.2006    21
GS Highlights



 • GM Opel is picking up – Zafira is estimated to sell more than
   earlier planned.

 • New Saab models have a positive effect on sales.

 • Weak Volvo and Renault sales have negative impact on the
   top–line.

 • Improved productivity and quality.

 • Drop in revenues for plastic containers.


 Q1-2006 presentation          Group Finance    27.04.2006         22
Operating revenue pr quarter Gearshift


  120



  100



   80



   60
                                        112
              97                 96                      98
                                                                              91      88
   40                    82                                   77


   20



    0
            Q2 04       Q3 04   Q4 04   Q1 05        Q2 05    Q3 05           Q4 05   Q1 06


 Q1-2006 presentation                    Group Finance           27.04.2006                   23
Operating revenue pr quarter Gearshift


 • Product sales down 9 mill.                       120

        – Lower sales of non-strategic
          plastic products (6 mill).                100

        – Price reductions
        – Some main customers are                   80
          loosing market shares
 • Other sales down by 15 mill                      60
                                                          112
   due high tooling sales in 1st
   quarter 2005.                                    40
                                                                        88




                                                    20




                                                     0
                                                          Q1 05        Q1 06



 Q1-2006 presentation               Group Finance         27.04.2006           24
EBITA pr quarter Gearshift

14                                                                                                  14 %



12                                                                                                  12 %


                                                                                     12
10                                                                                                  10 %



 8                                                                                                  8%



 6                                                                                                  6%

                                     8
 4                                                                                                  4%

                                                              5
 2                                                                                                  2%
                                             3                                                3
                                                                      2
             6               4
 0                                                                                                  0%
          Q2 04*            Q3 04   Q4 04   Q1 05            Q2 05   Q3 05          Q4 05   Q1 06



     Q1-2006 presentation                           Group Finance            27.04.2006             25
EBITA pr quarter Gearshifts

                                                    6



      Despite lower sales EBITA is                  5
      stable at NOK 3 mill. This is due
      to
        – Higher capitalization of R&D….            4


        – and reduction of total R&D cost
          level.                                    3

        – Improved productivity.
                                                    2

                                                         3            3

                                                    1




                                                    0
                                                        Q1 05        Q1 06


 Q1-2006 presentation               Group Finance       27.04.2006           26
KA Group - Outlook


 • The market for 2nd quarter seems to be much in line
   with 1st quarter. For the rest of the year we foresee
   a weaker market.
 • Raw material prices are expected to increase and
   sales prices will decrease
 • To compensate for this:
        –    Produce more in low cost countries.
        –    Source more from low cost areas.
        –    Improve operations.
        –    Get price compensation for extraordinary raw material price
             increases.


 Q1-2006 presentation                Group Finance   27.04.2006        27
General info


 Change in dividend policy
            Kongsberg Automotive shall create good financial value for
            its shareholders, employees and society. Returns to
            shareholders should be a combination of changes in share
            price and dividends. Dividends should reflect the results of
            the company, while recognizing opportunities for new,
            profitable investments. Over time the returns to
            shareholders should come more from an increased share
            price rather than through dividend distributions.

             The Board of Directors of Kongsberg Automotive considers
             that dividends over a period should average roughly 35
             percent of the company's net income.




 Q1-2006 presentation               Group Finance    27.04.2006        28
General meeting




  Remind all shareholders about the General meeting on
                  the 15th of May at 1300
                         in Oslo




 Q1-2006 presentation    Group Finance   27.04.2006   29
                       Q&A




Q1-2006 presentation    Group Finance   27.04.2006   30

								
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