Financial Report July - September 2020

STOCKHOLM, Oct. 23, 2020 /PRNewswire/ --

Financial Summary - Q3'20

• Net Sales and Cash flow were better than expected
• Net Sales of $371 million declined by 20% including an Organic Sales1  decline of 7%
• Active Safety Net Sales of $170 million declined by 5% including an Organic Sales decline of 9%
• Operating Cash flow was positive $1 million, which includes positive timing effects in the quarter

Outlook

• Net Sales are expected to return to organic growth during Q4'20 and outperform the global LVP during H2'20
• Currency translation, net is expected to be slightly positive for FY'20
• RD&E, net is expected to improve by more than $100 million from 2019 (on a comparable basis)
• Operating loss is expected to improve from 2019 levels (on a comparable basis), and Cash flow before financing activities1 is now expected to be better than $(170) million for H2'20

Business  Highlights

• Cash flow before financing activities tracking better than our previous expectations for FY'20
• Veoneer and Qualcomm Technologies, Inc. announced their intent to collaborate on the delivery of ADAS, Collaborative and AD solutions powered by Veoneer's next-generation perception and driving policy software stack and the Qualcomm Snapdragon Ride ADAS/AD scalable portfolio of System on Chip (SoC), and Accelerators
• Completed the divestiture of the VBS-US operations to ZF Friedrichshafen AG
• Market Adjustment Initiatives (MAI) program continues to contribute to the improved operating loss and cash flow performance
• Order intake is approximately $600 million during the LTM, where Active Safety is approximately two thirds of the LTM order intake

Comments from Jan Carlson, Chairman, President and CEO

Health and safety continue to be our first priorities and we are closely monitoring the development of the COVID-19 pandemic, which unfortunately shows signs of becoming more severe again, and we are staying ready to take the necessary safety precautions and business actions.

Vehicle production accelerated through the quarter, leading to a rapid increase in demand in the entire automotive supply chain, in a time when we are still fighting the effects of the global COVID-19 pandemic. In this challenging environment we executed a record number of activities including: successful vehicle launches, continued market adjustment initiatives, signing of a letter of intent with Qualcomm, finalizing the split of Zenuity and the divestment of our brake business. To summarize our underlying performance improved in almost all metrics. I am pleased with Veoneer's operational performance in the third quarter and I would like to thank the entire Veoneer team for their focus, dedication and discipline during this highly unusual year.