Kongsberg Automotive Holding 3rd Quarter 2006 Olav Volldal (CEO)

1. Kongsberg Automotive Holding3rd Quarter 2006Olav Volldal (CEO) Q3-2006 presentation

2. Highlights third quarter 2006 • Stable car production in Europe, the North American market is down • Drop in sales of SUVs reduces the margins • Volume growth corrected for currency effects and price reductions is 7,9 % • Growth in revenues year over year by 10,3 %, quarter over quarter 3,5 % • EBITA year over year down 6,5 %, quarter over quarter down 26,7 % • Decline in EBITA mainly related to • Less favourable product mix due to lower sales of premium cars • Raw material prices not fully compensated • Start-up costs for new programs • Capacity costs • Net profit year over year up 1,1 %, quarter over quarter down 44,2 %, due to high currency translation differences Q3-2006 presentation

3. Highlights continues • Raw material prices not fully compensated • Purchase of 1.000.000 KOA shares • The market outlook for the rest of 2006 and beginning of 2007 looks promising • EBITA margin Q4 expected to be above first half of 2006 (11,2%) • About 300 employees have bought KOA shares • First Seat Support order for Far East • New strategic initiatives • Increased activities in Asia • More emphasis on sourcing and low cost production • Internal restructuring for improved efficiency to increase R&D and marketing efforts • Strong progress on M&A activities Q3-2006 presentation

4. Operating revenue pr quarter KA Group MNOK Q3-2006 presentation

5. Operating revenue pr quarter KA Group MNOK Revenue up 21 MNOK • Adjusting for • Other revenue down 16 MNOK • Price reductions 17 MNOK • Positive currency effects 11 MNOK • the underlying volume growth is 7,9 % Q3-2006 presentation

6. EBITA pr quarter KA Group MNOK Q3-2006 presentation

7. EBITA pr quarter KA Group MNOK • EBITA is down 20 MNOK • Less favorable product mix 11 MNOK • Higher raw material prices 7 MNOK • Lower margin Audi Q7 4 MNOK • Start-up costs Milan and weaker market in NA 3 MNOK • Cost of capacity constrains 4 MNOK • Other elements positive 9 MNOK Q3-2006 presentation

8. KA Group – Key figures Q3-2006 presentation

9. Net Interest bearing debt MNOK Q3-2006 presentation

10. Positive effect Negative effect Net Interest bearing debt Q3-2006 presentation

11. Smart TCU Smart Wire Seat Comfort (SC) Head Restraints Seat Heating Seat Ventilation & Cooling Seat Support Systems Q3-2006 presentation

12. Operating revenue pr quarter SC MNOK Q3-2006 presentation

13. Operating revenue pr quarter SC MNOK Revenue are stable • Other revenues down 9 MNOK • The remaining product sale is up 9 MNOK • Higher volume for Head Rests and Seat Heaters in Europe and Seat Heaters in China • Lower volumes in NA market • Negative impact of price reductions. • Corrected for price reductions and currency effects the volume growth is 3,8% Q3-2006 presentation

14. EBITA pr quarter SC MNOK Q3-2006 presentation

15. EBITA pr quarter SC MNOK EBITA down 21 MNOK • Lower margin Audi Q7 4 MNOK • Less favorable product mix 11 MNOK • Higher raw material prices 4 MNOK • Start-up costs Milan and a weaker market in NA 3 MNOK • Timing of effect of moving from Sweden to Poland is behind plan as a consequence of high volumes in Poland Q3-2006 presentation

16. Back on track…. Q3-2006 presentation

17. Actions implemented • Started to in-source trim – sewing for Head Rests in Reynosa • Decided to expand in Pruszków, Poland • Reduced cost base in Milan • Strong improvement in quality • More local sourcing of purchased material • Capacity build-up in China Q3-2006 presentation

18. Commercial Vehicle Systems (CVS) Clutch Actuation Systems Components Air Couplings Gearshift Systems Q3-2006 presentation

19. Operating revenue pr quarter CVS MNOK Q3-2006 presentation

20. Operating revenue pr quarter CVS MNOK Revenue is up 28 MNOK • Other revenues are down 1 MNOK • Product sales are up 29 MNOK • Higher volume on Couplings and Hydraulic Gearshift Systems • Corrected for price reductions and currency effects the volume growth is 16,5 % Q3-2006 presentation

21. EBITA pr quarter CVS MNOK Q3-2006 presentation

22. EBITA pr quarter CVS MNOK • EBITA up 1 MNOK • Lower contribution on product sales • Higher raw material prices 3 MNOK • Capacity costs in Norwegian operations 4 MNOK Q3-2006 presentation

23. Raw material development Zinc Copper Aluminum Q3-2006 presentation

24. Actions implemented • Targeted new price increases for 2007 to compensate for raw material prices • High focus on improving product robustness and quality • Planned capacity build-up Q3-2006 presentation

25. Gearshifts (GS) Automatic shifters Manual shifters Q3-2006 presentation

26. Operating revenue pr quarter Gearshift MNOK Q3-2006 presentation

27. Operating revenue pr quarter Gearshift MNOK Revenue down 7 MNOK • Product sales are stable • Lower sales of plastic products is compensated by a positive currency effect of 2 MNOK. • Other revenue down by 7 MNOK Q3-2006 presentation

28. EBITA pr quarter Gearshift MNOK Q3-2006 presentation

29. EBITA pr quarter Gearshifts MNOK EBITA is stable at 2 MNOK • Higher raw material prices compensated by… • Improved productivity both in R&D and production Q3-2006 presentation

30. Actions implemented • High focus on cost reductions • Improved productivity and quality both in production and R&D • High activity on production start-up Q3-2006 presentation

31. New strategic actions • New production facility eastern Europe • India establishment • Sourcing • Restructuring • Asia Q3-2006 presentation

32. REMINDER Capital markets day 24th of November 2006 Høyres hus, Stortingsgata 20 Oslo Q3-2006 presentation

33. Q & A Q3-2006 presentation