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Q3 2026 EARNINGS CALL PRESENTATION OCTOBER 22, 2026
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BUSINESS UPDATE FINANCIAL UPDATE SUMMARY & OUTLOOK Q&A TODAY’S PRESENTERS K O N G S B E R G A U T O M O T I V E Q 3 2 0 2 6 E A R N I N G S C A L L ERIK MAGELSSEN CFO AGENDA TROND FISKUM PRESIDENT & CEO 3
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BUSINESS UPDATE President & CEO Trond Fiskum 4
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TRANSFORMATION CONTINUES TO DELIVER STRONGER EARNINGS B U S I N E S S U P D A T E Q3 EBIT improved to MEUR 9.0 (4.8% margin) Compared with MEUR 4.9 (3.0% margin) in Q3 2025 Q3 net cash flow MEUR +2.2 Compared with MEUR 6.6 in Q3 2025 Q3 net profit increased to MEUR 6.4 Compared with MEUR 1.6 in Q3 2025 ROCE strengthened to 11.4% Compared with 1.7% in Q3 2025 5
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Revenue growth year over year > Q3 revenue increased to MEUR 185.2, up 13.7 % versus Q3 2025 > The sequential reduction versus Q2 reflects normal seasonality > Strong EBIT improvement > Q3 EBIT improved to MEUR 9.0 (4.8% margin), compared with MEUR 4.9 (3.0%margin) in Q3 2025, in spite of increasing material costs > Reflecting strong operational performance and execution Positive cash flow > Net cash flow was positive at MEUR 2.2. While below Q3 2025, this reflects higher business activity and the resulting increase in net working capital > YTD Q3 26 the net cash flow is positive at MEUR + 1.8, compared with negative MEUR –4.8 YTD Q3 2025 Q3 FINANCIALS – FUNDAMENTALS OF THE BUSINESS CONTINUE TO IMPROVE B U S I N E S S U P D A T E Q1 2025 Q3 2026 Q2 REVENUES MEUR EBIT MEUR FREE CASH FLOW MEUR Q3Q2 190.0 192.4 162.9 167.5 179.6 193.8 185.2 2.2 -2.9 4.9 9.4 5.5 12.0 9.01.2% -1.5% 3.0% 5.6% 3.0% 6.2% 4.8% -10.5 -0.9 6.6 11.5 -4.7 4.3 2.2 -15.9 -12.4 -0.6 +6.7 +12.6 +17.7 +13.3 Note: Line represents 12M Trend Q4 Q1 6
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CLUSES FRANCE RESTRUCTURING EXPECTED TO DELIVER MEUR 5 IN ANNUAL SAVINGS B U S I N E S S U P D A T E Restructuring of KA’s Cluses plant aligns the cost base with market demand, with payback expected in less than two years > Driveline production will be transferred to KA’s plants in Slovakia and Brazil, while Cluses will become a dedicated couplings production site > One-time restructuring costs are estimated at approximately MEUR 7.5 > Cost savings are expected to reach approximately MEUR 4 in 2027 and MEUR 5 annually thereafter > Implementation is expected to be completed in Q1 2027 F R A N C E R E S T R U C T U R I N G A P P R O V E D B Y F R E N C H A U T H O R I T I E S T O B E C O M P L E T E D IN Q1 2 0 2 7 S W E D E N C H I N A F R O M 2 T O 1 P L A N T C O M P L E T E D 2 0 2 6 F R O M 3 T O 1 P L A N T C O M P L E T E D 2 0 2 6 MEUR 7.5 One-time cost MEUR 5 Annual savings <2 years Expected payback Continuing KA’s footprint optimization Following plant consolidations in Sweden and China completed during 2026 7
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WARRANTY MATTERS REMAIN UNDER ACTIVE MANAGEMENT B U S I N E S S U P D A T E > The previously communicated warranty and recall-related matters remain unresolved > During the quarter, KA continued constructive discussions with the relevant counterparties regarding potential resolutions > While progress has been made, no final agreements have been reached > In parallel, legal proceedings relating to insurance recovery in one of these matters remain ongoing > The Company will provide further updates as additional clarity is obtained 8 No material updates to the warranty proceedings
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CONTRACT AWARDS Q3 2026 ESTIMATED REVENUES* FROM CONTRACT AWARDS, MEUR B U S I N E S S U P D A T E * Includes agriculture, construction, power sports and leisure vehicles 94 9 10 29 1 72 70 PER BUSINESS AREA PER CUSTOMER SEGMENT MEUR 142 FLOW CONTROL SYSTEMS DRIVE CONTROL SYSTEMS TRUCK, TRAILER, BUS INDUSTRIAL > MEUR 142 of contract awards secured in Q3, including both incremental business and extension of existing contracts > New contracts secured on improved commercial and contractual terms > Improved commercial momentum compared with recent quarters > The pipeline of business opportunities remains solid AFTERMARKET PASSENGER CARS OFF ROAD 9 * Contract revenues are KA’s best estimates of expected revenues during contract length
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KEY CONTRACT AWARDS Q3 2026 B U S I N E S S U P D A T E CABIN STABILIZERS FOR A GLOBAL TRUCK OEM CONTRACT EXTENSION ESTIMATED CONTRACT REVENUE* 34 MEUR KA PRODUCTION POLAND SEGMENT HEAVY DUTY TRUCK EST IMATED CONTRACT REVENUE* 24 MEUR KA PRODUCTION MEXICO SEGMENT AUTONOMOUS VEHICLE ESTIMATED CONTRACT REVENUE* 20 MEUR KA PRODUCTION CHINA, NORWAY SEGMENT MEDIUM DUTY TRUCK AT SHIFTER FOR A GLOBAL OEM CONTRACT EXTENSION ESTIMATED CONTRACT REVENUE* 15 MEUR KA PRODUCTION BRAZIL SEGMENT PASSENGER CARS Images are illustrative and may not show the exact product and customer application * Contract revenues are KA’s best estimates of expected revenues during contract length ABC COUPLINGS FOR AN ASIAN TRUCK OEM INCREMENTAL CONTRACT AWARDS ACROSS 4 REGIONS AND IN DIFFERENT BUSINESS SEGMENTS, PROVIDING BASIS F OR FUTURE PROFITABLE GROWTH HOSE AND TUBE ASSEMBLIES FOR AN AUTONOMOUS PEOPLE MOVER IN NORTH AMERICA INCREMENTAL 10
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IMPROVE CASH CONVERSION STRENGTHEN THE LEADERSHIP TEAMS AND KA CULTURE DRIVE COST -EFFICIENCY AND OPERATIONAL IMPROVEMENTS ACCELERATE INNOVATION AND PROFITABLE GROWTH FROM TRANSFORMATION PRIORITIES TO TANGIBLE RESULTS B U S I N E S S U P D A T E OUR 2026 PRIORITIES Further performance improvement and a stronger foundation for KA’s next phase THE TRANSFORMATION IS DELIVERING RESULTS STRONGER PERFORMANCE Profitability • Capital efficiency • Lower leverage STRONGER ORGANISATION Leadership • Accountability • Execution STRONGER FOUNDATION FOR GROWTH Capabilities • Financial capacity • Innovation 11
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FINANCIAL UPDATE CFO Erik Magelssen 12
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2.0% 1.9 Q3 2025 6.6% 6.5 Q4 2025 -0.2% -0.2 Q1 2026 4.1% 4.3 Q2 2026 1.9% 1.9 Q3 2026Q1 2025 Q2 2025 -1.4%-1.5 -8.7% -9.6 DRIVE CONTROL SYSTEMS BUSINESS AREA UPDATE F I N A N C I A L U P D A T E Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 95.1 98.3 97.3 105.3 99.3 Q1 2025 Q2 2025 110.6 110.2 REVENUES, MEUR Q3 2026 compared with Q3 2025 Revenue: up 4.4% vs. Q3 2025 > The North America region led revenue growth, while a decline in the China market and lower revenue level within Business Unit Driveline partly offset the increase > Impacted by positive currency translation effects of MEUR +2.3 > EBIT: > Although revenue increased slightly, EBIT remained broadly stable at MEUR 1.9, equivalent to a 1.9% margin > Direct material cost developments had a negative impact on operating profit compared to Q3 2025 > But compensated by reduction in manufacturing overhead and administrative costs within Business Area > Reduction in corporate costs compared to Q3 2025, resulting in lower allocation to the Business Area EBIT & EBIT MARGIN, MEUR / % 13 1) EBIT in Q2 2025 affected by significant warranty cost accruals 2) EBIT in Q4 2025 positively affected by certain extraordinary items from reversal of prior period accruals 1) 2)
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4.4% 3.0 Q3 2025 4.2% 2.9 Q4 2025 6.9% 5.7 Q1 2026 8.7% 7.7 Q2 2026 8.2% 7.0 Q3 2026Q1 2025 Q2 2025 4.7% 3.7 8.3% 6.8 FLOW CONTROL SYSTEMS BUSINESS AREA UPDATE F I N A N C I A L U P D A T E EBIT & EBIT MARGIN, MEUR / % Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 67.8 69.2 82.3 88.6 85.9 Q1 2025 Q2 2025 79.4 82.2 REVENUES, MEUR Q3 2026 vs. Q3 2025 Revenues: +26.7 % vs Q3 2025 > Increase in volume in all Business Units > Supported by strong growth in North America and positive development in Europe within the heavy-duty vehicle market > Including positive currency translation effects of MEUR 1.7 EBIT: > Increased contribution from increased sales volume, although affected by direct material cost developments > Reduction in manufacturing overhead and administrative costs within Business Area > Reduction in corporate costs compared to Q3 2025, resulting in a lower allocation to the Business Area > The EBIT margin recorded at 8.2 % in Q3 2026 compared to 4.4 % in Q3 2025 14
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EBIT BRIDGE (Q3 & YTD Q3) SIGNIFICANT COST SAVINGS AND REVENUE LEVERAGE F I N A N C I A L U P D A T E Q3 2026 vs. Q3 2025 Volume & Mix > Revenue increased 13.7% Q3 2026 vs. Q3 2025 Costs and Other > Cost savings in overhead and administrative expenses > Significant increase in revenue not driving cost base > Continued tariff recovery efforts from customers, targeting near-complete reimbursement YTD Q3 2026 vs. YTD Q3 2025 Volume & Mix > Revenue level 2.4% higher than 2025 Costs and Other > Cost savings in overhead and administrative expenses on a recurring basis driving sustainable EBIT growth > Lower warranty costs than in first nine months 2025. Warranty cost distribution through the four quarters in the year different between 2025 and 2026 EBIT ( Q3), MEUR EBIT ( YTD Q3), MEUR Q3 2025 2,2 Volume & Mix 10,3 Overhead cost 0,3 Net Tariffs 10,1 Warranty costs 26,5 Q3 2026 4,2 Q3 2025 3,9 Volume & Mix 0,5 Overhead cost -0,4 Net Tariffs 0,0 Warranty costs 9,0 Q3 2026 4,9 15
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Q3 2025 +4.1 -0.4 0.0 +3.4 -2.4 Q3 2026 1.6 NET INCOME BRIDGE (Q3 & YTD) SIGNIFICANT IMPROVEMENT IN NET INCOME IN Q3 2026 F I N A N C I A L U P D A T E EBIT IMPROVEMENTS > The key driver in the increase in Net Income are the improvements in Operating profit /EBIT. > Cost savings on a recurring basis, also giving revenue leverage the key driver for improvements in EBIT CURRENCY GAINS/LOSSES > The net currency loss in Q3 2025 was MEUR –0.5, compared net currency gain of MEUR +2.9 in Q3 2026, giving a positive variance of MEUR +3.4 TAX > The improvements in profitability driving a certain increase in estimated tax cost for the period +6.4 Q3 2025 +22.3 EBIT +0.1 Net Interests +1.0 Other Financial Items +2.5 Currency Gains/Losses -6.5 Tax Q3 2026 -2.6 NET INCOME (YTD), MEUR NET INCOME (Q3), MEUR +16.8 16
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F I N A N C I A L U P D A T E 190 192 163 168 180 194 185 142 139 135 125 136 147 154 19% 18% 21% 19% 19% 19% 21% -10% -5% 0% 5% 10% 15% 20% 0 50 100 150 200 250 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q2-2026 Q3-2026 MEUR Revenue NWC NWC in % L3M Revenue Annualized > Stronger business volumes in Q3 2026 driving higher working capital requirements > The NWC development is in line with seasonal variations > Ongoing activities to reduce Net Working Capital (NWC) level > Significant potential for reduction in net working capital identified L3M Revenue annualized – Last 3 Months Revenue multiplied by 4, to measure against Net Working Capital level INCREASE IN REVENUE LEVEL DRIVING INCREASE IN NET WORKING CAPITA L 17
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NET CASH FLOW 1, MEUR 1. Net Cash Flow is measured based on sum of cash flow from operating activities, investing activities, financial activities and currency effects on cash (together described as change in cash), excluding net draw-down/repayment of debt, net effects of repayment of old bond and issuing new bond, proceeds received from capital increase and purchase of treasury shares. Thus, it includes payments for interests NET CASH FLOW POSITIVE NET CASH FLOW F I N A N C I A L U P D A T E -5.2 -20.0 Q3 2024 +4.2 -20.3 Q4 2024 -10.5 -15.9 Q1 2025 -0.9 -12.4 Q2 2025 +6.6 -0.6 Q3 2025 +11.5 +6.7 Q4 2025 -4.7 +12.5 Q1 2026 +4.3 +17.7 Q2 2026 +2.2 +13.3 Q3 2026 12M Trend NET CASH FLOW Q3 2026 Operating activities, incl. currency effects NWC +8.1 +16.7 Q3 2025 Investing activities -2.8 -3.0 Financing activities -6.2 -8.2 Other currency and translation effects on cash flow +3.2 +1.1 Net Cash Flow +2.2 +6.6 MEUR 18 > Cost reductions and increased profits offsetting part of cash flow effect from change in net working capital in Q3 2026 > Significant opportunities identified for continued optimalization of net working capital and increased earnings to cash conversion
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3.1 2.7 3.7 3.1 3.0 2.6 2.22.2 2.22.2 1.71.6 1.5 1.5 NET -INTEREST BEARING DEBT , MEUR LEVERAGE RATIO NET INTEREST -BEARING DEBT (NIBD) & LEVERAGE RATIO CONTINUED REDUCTION IN NET -INTEREST BEARING DEBT AND LEVERAGE RA TIO F I N A N C I A L U P D A T E 41.5 129.1 Q1 2025 34.5 126.9 Q2 2025 39.0 117.8 Q3 2025 48.6 107.9 Q4 2025 51.2 111.4 Q1 2026 62.7 105.8 Q2 2026 66.7 101.8 Q3 2026 NIBD/ Adjusted EBITDA (LTM)1 Leverage ratio per bond term definition 2 Adjusted EBITDA (LTM)1 NIBD 1. Adjusted EBITDA as defined in the APM section of the Quarterly Report 2. Definition in relation to the MEUR 110 bond issued in 2024. Maximum allowed level (covenant) is 4.0 19
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CAPITAL EMPLOYED 3, MEUR ROCE 2, %, LTMLEVERAGE RATIO, NIBD 1/ ADJUSTED EBITDA 4, LTM EQUITY RATIO, % 1. Net interest-bearing debt 2. EBIT (LTM) / Average capital employed 3. Capital employed consists of Intangible Assets, PPE’s, Right-of-use assets, Net Working Capital less Lease liabilities at quarter end 4. Adjusted EBITDA as defined in the APM section of the Quarterly Report Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 3.0 2.6 2.2 2.2 2.2 2.2 1.7 1.6 1.5 1.5 31.3 Q3 2025 32.0 Q4 2025 32.4 Q1 2026 33.2 Q2 2026 34.1 Q3 2026 303.6 Q3 2025 295.0 Q4 2025 306.9 Q1 2026 317.6 Q2 2026 324.2 Q3 2026 1.7 Q3 2025 4.4 Q4 2025 5.4 Q1 2026 10.2 Q2 2026 11.4 Q3 2026 FINANCIAL RATIOS CONTINUAL REDUCTION IN LEVERAGE RATIO STRONG IMPROVEMENT IN RETURN ON CAPITAL EMPLOYED (ROCE) - INCREA SED CAPITAL EFFICIENCY F I N A N C I A L U P D A T E NIBD/ Adjusted EBITDA (LTM) Leverage ratio per bond term definition 20
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NEW DIVIDEND POLICY F I N A N C I A L U P D A T E 21 > The Board of Directors approved a new Dividend Policy October 21, 2026 > Guiding principle to provide shareholders with competitive and sustainable returns over time, consisting of dividends and share price appreciation > Dividend and capital allocation decisions shall balance: > the company’s profitability and cash flow > capital requirements for growth and investments > the company’s risk profile > and the need for a solid equity ratio > Long-term target to distribute up to 50 % of annual net profit as dividends over a business cycle > Dividends must comply with all legal requirements and generally maintain at least 30 % headroom against any covenant thresholds > See the complete Dividend policy on our company website
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SUMMARY & OUTLOOK 22
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SUMMARY S U M M A R Y & O U T L O O K 23 Strong results > Q3 delivered strong year-on-year revenue growth and a significant improvement in profitability Stronger financial position > Positive cash flow, improved capital efficiency and lower leverage further strengthened KA’s financial position Continued footprint optimization > The approved Cluses restructuring represents another important step in creating a more competitive and efficient manufacturing footprint Building the next phase > KA remains focused on further improving performance while building the foundation for the next phase of profitable growth
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KA’S NEXT PHASE OF VALUE CREATION S U M M A R Y & O U T L O O K 24 CAPITAL MARKETS DAY 2027 > 25 February 2027 | Oslo* | 09:00 – 13:00 SETTING OUT KA’s NEXT PHASE » Strategic priorities and ambitions » Drivers for further performance improvement » Priorities for profitable growth » Key product and technology opportunities The Q4 2026 earnings presentation will form part of the Capital Markets Day program Capital Markets Day 2027 will set out KA’s strategic priorities and ambitions for future value creation * Exact location to be confirmed CAPITAL MARKETS DAY 25 FEBRUARY 2027 OSLO
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> KA expects the underlying positive development in profitability to continue, driven by further operational improvements, cost reductions and a more efficient manufacturing footprint > Market conditions for KA’s main markets remain cautiously positive in the near term, supported by stronger North American truck order intake and positive developments in Europe. Geopolitical, and trade -related uncertainties remain OUTLOOK S U M M A R Y & O U T L O O K 25
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Q&A 26
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