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Stockholm , Sweden , February 3 , 2021 ( NYSE : VNE and SSE : VNE - SDB ) Financial Report October - December 2020 Financial Summary - 04'20 • Financial performance better than expectations • Net Sales $ 455 million , Organic Sales ' increase 17 % • Active Safety Net Sales increase 38 % , Organic Sales increase 31 % • Operating cash flow $ ( 77 ) million , $ 27 million improvement YoY • Cash balance $ 758 million Business Highlights and Mid - Term Targets Update • Organic Sales out - performed the global LVP by ~ 15pp for the fourth quarter and ~ 1pp for the full year 2020 • Veoneer and Qualcomm Technologies Inc. finalized an agreement in January 2021 where the companies will collaborate on the delivery of scalable Advanced Driver Assistance Systems ( ADAS ) , Collaborative and Autonomous Driving ( AD ) solutions • Market Adjustment Initiatives ( MAI ) program continued to generate underlying cost structure and balance sheet improvements • Order book at the end of 2020 was - $ 14 billion , Order intake for 2020 was ~ $ 530 million of average annual sales with lifetime sales of - $ 2.6 billion where Active Safety was -70 % Key Figures Dollars in millions , ( except where specified ) Net Sales Gross Profit / Margin RD & E , net / % of Sales Operating Loss / Margin Operating Cash Flow • Net Sales in 2023 are expected to be approximately $ 2.5 billion and the Company expects to arrive to a sustainable operating profit and positive free cash flow ' during 2023 $ $ $ $ $ Three Months Ended December 31 2020 455 72 ( 108 ) ( 77 ) ( 77 ) % Page 1 of 9 $ 15.8 % $ ( 23.8 ) % $ ( 17.0 ) % $ $ Outlook - FY'21 • Organic Sales growth YoY is expected to exceed 25 % • Active Safety Organic Sales ' growth YoY is expected to be ~ 45 % • Currency translation impact is expected to be -5 % • Operating loss is expected to improve in 2021 from 2020 , Cash balance is expected to exceed $ 400 million at 2021 year - end • Order intake in 2021 is expected to increase from 2020 $ 2019 456 76 ( 103 ) ( 72 ) ( 104 ) % veoneer Change $ $ 16.7 % $ ( 22.5 ) % $ ( 15.8 ) % $ $ ( 1 ) $ ( 4 ) $ ( 5 ) $ ( 5 ) $ 27 $ Twelve Months Ended December 31 2020 % 2019 $ $ 1,373 $ 1,902 182 13.3 % $ 311 ( 407 ) ( 29.7 ) % $ ( 562 ) ( 367 ) ( 26.7 ) % $ ( 460 ) ( 192 ) $ ( 325 ) % Change $ $ 16.4 % $ ( 29.6 ) % $ ( 24.2 ) % $ $ ( 529 ) ( 129 ) 155 93 133 Comments from Jan Carlson , Chairman , President and CEO The fourth quarter saw an unfortunate resurgence of the COVID - 19 pandemic . We continue to put the health and safety of our people first , reinforcing our measures that were first put in place in the beginning of the pandemic , and we believe that the global efforts and vaccinations that have now started will allow the situation to gradually improve throughout 2021 . In the fourth quarter of 2020 Veoneer saw organic growth for the first time , a pivotal moment for the company . The strong growth was driven by new launches and a stronger development of the light vehicle production than anticipated in the beginning of the quarter . We further continued our strong focus on efficiencies and financial management , which allowed us to finish the year in a stronger cash position than anticipated . Despite some initial additional launch related costs , our ability to deliver new products and technologies to recently launched vehicle platforms in the current uncertain environment was an outstanding achievement . I would like to sincerely thank everyone in Veoneer for coming together as one team and really delivering above and beyond expectations . During 2020 , we experienced dramatic declines in the vehicle production during the first half , and an unprecedented rebound in the second half . This global development , which was witnessed across multiple industries , has created serious challenges for supply of electronic components . Relatively speaking , we have managed this situation well , but we do expect the tightness in supply to affect the global light vehicle production during the first half of 2021. Currently , the effects are difficult to quantify , and we monitor and manage this situation daily . During the fourth quarter we negotiated , and in January finalized an agreement with Qualcomm to build a world leading solution in ADAS and AD , which we anticipate will be ready for commercial launches in 2024. To build this business we have created ArriverTM , our new software unit and brand which will be fully focused on further developing perception , fusion and drive policy software for the next generation cars . It builds on more than a decade of experience in Active Safety development and for drive policy software on previous cooperation with Volvo Cars ( VCC ) in the Zenuity joint venture . It will deliver an open , scalable and flexible architecture solution running on Qualcomm's next generation Snapdragon RideTM System on a Chip ( SoC ) platform . Our joint expectation is to create a leading ADAS and AD solution , which over ime , will form the core of one of the leading ecosystems for automation in our industry . With Qualcomm having the lead go - to - market responsibility , we are already receiving very positive feedback from initial presentations to vehicle OEMs and Tier 1 automotive suppliers . The trend of a changing automotive industry is stronger than ever . Veoneer is right in the middle of this development and we have recently taken critical steps to position our company for the future . We have divested our brake control business , dissolved our joint venture with VCC , and now created ArriverTM . Additionally , we are revisiting our Lidar strategy as we see rapid changes in the core technology development and see several new opportunities in the future for Veoneer as a system integrator and industrialization partner for new Lidar startups . With health and safety as our first priority , our focus remains to be on flawless daily execution , winning new profitable business and building a world leading technology portfolio . An earnings conference call will be held today , Wednesday , February 3 , 2021 at 14:00 CET . To follow the webcast or to obtain the phone number / pin code , please see www.veoneer.com . The slide deck will be available on our website prior to the earnings conference call . For all Non - U.S . GAAP financial measures , see the reconciliation tables in this earnings release , including the Non - U.S . GAAP Financial Measures section for further discussion of the forward - looking Non - U.S . GAAP financial measures on page 9 . 03 February 2021