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of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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99.1

Press Release of Veoneer, Inc. dated July 27, 2018.

Exhibit No.

Description

99.1

Press Release of Veoneer, Inc. dated July 27, 2018.

VEONEER, INC.

By:

/s/ Lars A. Sjöbring

Name:

Lars A. Sjöbring

Title:

Executive Vice President, Legal Affairs,

General Counsel and Secretary

Financial Summary

•Consolidated Net Sales $572M

•Net Sales growth (1)%

•Organic Sales* growth (4.5)%

•Operating margin (8.4)%

Full Year Outlook 2018

•Consolidated Net Sales similar level as 2017

•Organic Sales* growth around (3)%

•Operating loss to remain around similar levels as Q2 for Q3 and Q4 2018

Business Highlights

•Active Safety organic sales* growth of 11%

•Strong order intake over the last 12 months of approximately $1.1 billion on an annualized basis

•Expanding customer bid activity across the product portfolio

•Sourced major mono-vision contract and first driver monitoring business with major global OEMs

•Continued investments for growth

Three Months Ended June 30

Six Months Ended June 30

Dollars in millions,

2018

2017

Change

2018

2017

Change

(except where specified)

$

%

$

%

$

$

%

$

%

$

Net Sales

$572

$579

($7)

$1,166

$1,162

$7

Gross Profit / Margin

$112

19.6%

$120

20.7%

($8)

$223

19.1%

$233

20.1%

($10)

RD&E, net / % of Sales

$119

20.8%

$102

17.6%

$17

$225

19.3%

$189

16.3%

$36

Operating Loss / Margin

($48)

-8.4%

($12)

-2.1%

($36)

($64)

-5.5%

($22)

-1.9%

($42)

EBITDA / Margin

($21)

-3.7%

$12

2.1%

($33)

($9)

-0.8%

$42

3.6%

($51)

Page 1 (10)

27 July 2018

Consolidated Net Sales

Three Months Ended June 30

Components of

Change vs. Prior Year

Dollars in millions,

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

2018

2017

Chg. $

Chg. %

$

%

$

%

Restraint Control Systems

$246

$266

($19)

-7%

$11

4%

($31)

-12%

Active Safety

$215

$191

$24

12%

$4

2%

$20

11%

Brake Systems

$111

$122

($11)

-9%

$4

3%

($15)

-12%

Total

$572

$579

($7)

-1.2%

$19

3.3%

($26)

-4.5%

1) Non-U.S. GAAP measure reconciliation for Organic Sales

Sales – Veoneer’s sales developed according to plan during the quarter in which net sales decreased by around 1% to $572 million as compared to 2017. The organic sales decline of 4.5% was mostly offset by currency translation effects of 3.3%, which was mainly due to a weaker US dollar as compared to 2017.

The organic sales developed essentially according to plan during the quarter. The decline of Restraint Control Systems and Brake Systems, was partially offset by Active Safety growth.

Restraint Control Systems – Net sales for the quarter of $246 million decreased by 7% as compared to 2017. The organic sales decline of approximately 12%, was mainly attributable to the phase out of certain vehicle models.

Active Safety - Net sales for the quarter of $215 million increased by 12% as compared to 2017. This improvement was mainly driven by an increase in organic sales of 11%.

Strong demand for vision systems and ADAS ECUs on several vehicle models, mono vision on the Mini, and night vision to Audi together with radar products on several models, accounted for most of the organic sales growth. This strong growth was partially offset by the continued ramp-down of current GPS business.

Brake Systems – Net sales of $111 million for the quarter decreased by approximately 9% as compared to 2017, mainly due to an organic sales decline of 12%, primarily due to lower delivery volumes on certain vehicle models.

Gross Profit – Gross Profit for the quarter of $112 million was $8 million lower as compared to 2017. The volume/mix impact from the decline in organic sales was partially offset by positive net currency effects of around $3 million.

Operating Loss – The operating loss for the quarter of $48 million was $36 million more as compared to 2017.

The planned increase in RD&E investments of $17 million, mainly related to the increase in engineers to support customer projects for future sales growth, and higher SG&A of $11 million, mostly related to the additional costs associated with being a standalone listed company, accounted for most of the change as compared to 2017.

The net currency effect for the quarter was negligible as compared to 2017.

A slight increase in the amortization of intangibles for the quarter was offset by an increase in other income as compared to 2017.

Net Loss – The net loss for the quarter of $66 million increased by $36 million as compared to 2017.

In addition to the operating loss impact, Veoneer’s net cost of the Zenuity JV increased by $8 million during the quarter as compared to 2017. This is primarily due to a higher net cost run-rate in 2018, related to the hiring of additional software engineers over the last 12 months bringing Zenuity’s total to approximately 500.

Income tax for the quarter was $3 million as compared to $11 million in 2017. The lower tax expense was primarily impacted by a reduction in the pre-tax earnings of our profitable subsidiaries. Lastly, the non-controlling interest loss in Veoneer Nissin Brake Systems was $3 million for the quarter as compared to $2 million in 2017.

Loss per Share - The loss per share decreased to $0.72 for the quarter as compared to a loss of $0.32 per share in 2017 due to the change in net loss, as the share count remained unchanged.

Cash Flow and Balance Sheet

Net cash used in operating activities – Net cash used in operating activities of $85 million during the quarter was approximately $42 million higher than in 2017 mainly due to timing related to working capital items and the higher net loss.

Net cash used in investing activities – Net cash used in investing activities of $37 million during the quarter was $111 million lower than in 2017. Higher capital expenditures of $17 million was more than offset by lower investments in Zenuity of $113 million and a decline in a related party note receivable.

Cash and cash equivalents - Cash and cash equivalents for the quarter of $980 million includes the net capital contribution from Autoliv adjusted for cash held in joint ventures.

Net Working Capital – The net working capital* of $135 million at the end of the quarter was an increase of $75 million as compared to the prior quarter in 2017. The increase was mainly due to timing of changes in working capital.

Capital Expenditures – Capital expenditures of $40 million for the quarter increased by $17 million as compared to 2017. This level is approximately 7% of sales and is slightly lower than our full year 2018 expectation of upper single digits as a percentage of sales.

Shareholders Equity – Shareholders equity, excluding non-controlling interest for the quarter of $1,989 million includes the cash liquidity provided from Autoliv immediately prior to the spin-off.

Page 2 (10)

27 July 2018

Three Months Ended June 30

Components of

Change vs. Prior Year

Dollars in millions,

2018

2017

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

$

%

$

%

Chg. $

Chg. %

$

%

$

%

Net Sales

$461

$579

$4

0.9%

$15

3.2%

($11)

-2.4%

Operating Loss / Margin

($31)

-6.7%

($7)

-1.5%

($24)

Segment EBITDA / Margin

($13)

-2.8%

$10

2.2%

($23)

Associates

6,404

5,466

5,466

1) Non-U.S. GAAP measure reconciliation for Organic Sales

The net sales increase in the Electronics segment of $4 million for the quarter as compared to 2017 was mainly attributable to strong Active Safety growth which was partially offset by the decline in Restraint Control Systems sales.

The operating loss in the segment increased to $31 million in the quarter as compared to 2017 mainly due to the volume mix impact from lower organic sales and increase in RD&E cost to support future organic sales growth.

For the quarter, Segment EBITDA* declined by $23 million to a negative $13 million as compared to 2017. This increase is mainly due to the increased operating loss whereas depreciation and amortization remained relatively unchanged.  

The number of associates increased by over 900 mainly due to hiring of engineers to support a strong order intake for both Restraint Control Systems and Active Safety.

Three Months Ended June 30

Components of

Change vs. Prior Year

Dollars in millions,

2018

2017

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

$

%

$

%

Chg. $

Chg. %

$

%

$

%

Net Sales

$111

$123

($12)

-9.7%

$4

3.3%

($16)

-13.0%

Operating Loss / Margin

($4)

-3.6%

($1)

-0.8%

($3)

Segment EBITDA / Margin

$5

4.5%

$6

4.9%

($1)

Associates

1,502

1,636

(134)

1) Non-U.S. GAAP measure reconciliation for Organic Sales

The net sales decline of $12 million in the Brake Systems segment for the quarter as compared to 2017 was mainly attributable to lower delivery volumes on certain Honda vehicle models.

The operating loss in the segment increased to $4 million as compared to 2017 mainly due to the volume/mix impact on lower organic sales and a slight increase in RD&E to support future organic sales growth which was partially offset by reductions in overhead costs.

For the quarter, Segment EBITDA of $5 million remained relatively unchanged as compared to 2017. The increase in operating loss of $3 million was essentially offset by slightly lower depreciation on fixed assets.

The number of associates declined by 134 primarily due to overhead reductions related to the Honda sales decline.

Page 3 (10)

27 July 2018

Consolidated Net Sales

Three Months Ended June 30

Components of

Change vs. Prior Year

Dollars in millions,

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

2018

2017

Chg. $

Chg. %

$

%

$

%

Restraint Control System

$514

$537

($23)

-4%

$30

6%

($53)

-10%

Active Safety

$427

$383

$45

12%

$14

4%

$31

8%

Brake Systems

$225

$242

($18)

-7%

$10

4%

($28)

-11%

Total

$1,166

$1,162

$4

0.3%

$53

4.6%

($50)

-4.3%

1) Non-U.S. GAAP measure reconciliation for Organic Sales

Sales – Net sales for the first half of 2018 increased by $4 million to $1,166 million as compared to 2017. The organic sales* decline of 4.3% was more than offset by positive currency translation effects of 4.6%, mainly due to a weaker US dollar as compared to 2017.

Organic sales developed according to plan during the first half of 2018. A decline in Restraint Control Systems and Brake Systems, was partially offset by Active Safety organic sales growth. We expect this sales trend in Restraint Control and Brake Systems to rebound during 2019 and into 2020 based on new business awarded during 2016 and 2017.

Restraint Control Systems – Net sales of $514 million for the first half of 2018 decreased by 4% as compared to 2017. The organic sales decline of approximately 10% was mainly driven by the phase-out of certain models.

Active Safety - Net sales of $427 million for the first half of 2018 increased by 12% as compared to 2017. This improvement was mostly driven by an increase in organic sales of 8%.

Strong demand for vision systems, ADAS ECUs and radar products on multiple models accounted for most of the organic sales growth together with night vision systems to Audi. This strong growth was partially offset by the continued ramp-down of current GPS business.

Brake Systems – Net sales of $225 million for the first half of 2018 decreased by approximately 7% as compared to 2017, mainly due to an organic sales decline of 11%, primarily due to lower volumes on certain vehicle models.

Gross Profit – Gross Profit of $223 million for the first half of 2018 was $10 million lower as compared to 2017. The volume/mix impact from the decline in organic sales was partially offset by net currency effects of around $17 million.

Operating Loss – The operating loss of $64 million for the first half of 2018 was $42 million more as compared to 2017, including a net favorable currency benefit of $6 million.

The planned increase in RD&E investments of $36 million, mainly related to the increase in engineers for future sales growth, and higher SG&A of $13 million, mainly resulting from the additional costs associated with being a standalone public company, accounted for most of the change from 2017.

These effects were partially offset by a $13 million decrease in the amortization of intangibles related to acquisitions, which prior year amortizations was the result of an impairment charge in 2017, and a $4 million increase in other income during the first half of 2018.

Net Loss – The net loss for the first half of 2018 of $103 million was $51 million more as compared to 2017.

In addition to the operating loss impact, the Veoneer net cost of the Zenuity JV increased by $22 million for the first half of 2018 due to the increased net cost run-rate in 2018 and an additional quarter of cost in 2018 since the JV was formed in April 2017.

Income tax for the first half of 2018 was $10 million as compared to $22 million in 2017. The tax expense was primarily impacted by a reduction in the pre-tax earnings of our profitable subsidiaries.  

The non-controlling interest loss in the VNBS JV was $8 million for the first half of 2018 as compared to $4 million in 2017.

Loss per Share - The loss per share for the first half of 2018 increased to $1.09 as compared to a loss of $0.55 per share in 2017 due to the change in net loss.

Page 4 (10)

27 July 2018

Cash Flow and Balance Sheet

Net cash used in operating activities – Net cash flow of minus $164 million for the first half of 2018 increased by $129 million as compared to 2017 mainly due to the change in net loss and timing of changes in working capital.

Net cash used in investing activities – Net cash used in investing activities of $62 million for the first half of 2018 was $102 million lower as compared to 2017, mainly due to higher capital expenditures which was more than offset by lower affiliate investments.

Net Working Capital – The net working capital of $135 million at the end of the quarter was an increase of $77 million since December 31, 2017. The increase is mainly due to an increase in related party receivables.

Capital Expenditures – Capital expenditures during the first half of 2018 of $71 million was approximately 6% of sales and $21 million more as compared to 2017. This level is slightly lower than the expectation for full year 2018.

30-Jun-18

31-Mar-18

31-Dec-17

30-Jun-17

The number of associates increased to 7,937 during the quarter due to the addition of more than 250 engineers to support future sales growth. Over the last year, close to 800 engineers have been hired while direct manufacturing associates have been reduced close to 100 reflecting the current decline in organic sales.

Total Associates

7,937

7,567

7,484

7,102

Whereof: Direct Manufacturing

2,229

2,199

2,232

2,325

R,D&E

3,959

3,703

3,576

3,173

Temporary

1,246

1,146

1,151

1,122

Six Months Ended June 30

Components of Change vs. Prior Year

Dollars in millions,

2018

2017

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

$

%

$

%

Chg. $

Chg. %

$

%

$

%

Net Sales

$

941

$

920

$

21

2.3

%

$

44

4.8

%

$

(23

)

-2.5

%

Operating Loss / Margin

$

(32

)

-3.4

%

$

(9

)

-1.0

%

$

(23

)

Segment EBITDA / Margin

$

4

0.4

%

$

36

3.9

%

$

(32

)

Associates

6,404

5,466

938

1) Non-U.S. GAAP measure reconciliation for Organic Sales

Six Months Ended June 30

Components of Change vs. Prior Year

Dollars in millions,

2018

2017

US GAAP Reported

Currency

Organic¹⁾

(except where specified)

$

%

$

%

Chg. $

Chg. %

$

%

$

%

Net Sales

$

225

$

245

$

(20

)

-8.2

%

$

10

4.0

%

$

(30

)

-12.2

%

Operating Loss / Margin

$

(12

)

-5.3

%

$

(3

)

-1.2

%

$

(9

)

Segment EBITDA / Margin

$

7

3.1

%

$

16

6.5

%

$

(9

)

Associates

1,502

1,636

-134

1) Non-U.S. GAAP measure reconciliation for Organic Sales

Page 5 (10)

27 July 2018

Outlook for 2018

Our sales indication for full year 2018 remains unchanged from January 29, 2018. Total net sales are expected to remain at approximately the same level as 2017 where organic sales are estimated to decline from the prior year by around 3%.

Net sales declines in Restraint Control and Brake Systems are expected to be partially offset by Active Safety organic sales growth of more than 10%. The overall organic sales decline is expected to be offset by favorable currency translation effects.

Based on our current levels of orders and deliveries we expect the quarterly operating loss to remain around similar levels as Q2 for Q3 and Q4 2018.

Other Topics and Events

Filings – Please refer to www.veoneer.com or to our Form 10-Q for definitions of terms used in this report. Veoneer’s quarterly reports on Form 10‑Q, press releases, current reports on Form 8-K and other documents filed with the SEC can be obtained free of charge from Veoneer at the Company’s address. These documents are also available at the SEC’s website www.sec.gov and at Veoneer’s corporate website www.veoneer.com. The earnings call webcast slide presentation is posted on our corporate website.

Reporting Structure – Veoneer is organized according to product areas around its two segments, Electronics, which includes Restraint Control Systems and Active Safety, and Brake Systems, which is the VNBS JV. Products are Veoneer’s primary focus in running and reporting its business, as well as its customer focus. Consequently, although Veoneer discloses sales by region in accordance with its reporting obligations to the SEC, the Company does not believe it is particularly helpful to investors and does not intend to provide regular quarterly analysis and reporting details on sales by region or other comparisons versus light vehicle production to those regions.

Other Events -

May 24 – Autoliv’s board of directors approved the completion of the spin-off of Veoneer into an independent publicly listed company. Also announced were the additional individuals that were expected to serve on the board of directors of Veoneer effective as of the completion of the spin-off, including Jonas Synnergren a partner of Cevian Capital.

May 29 – Veoneer was selected by one of the world’s leading automakers as a partner to develop and produce mono vision camera systems comprised of camera hardware, software and algorithms.

Our previously announced 2020 and 2022 targets remain unchanged; however, we see a current trend of increasing customer activity across geographies and our product portfolio, as well as potentially higher than anticipated take rates for Active Safety products.

These early market indicators are encouraging and if we conclude that they are likely to affect our previous announced sales targets for 2022 and beyond, they may also potentially heighten our short-term investment needs.

May 31 – Announced that the top three Autoliv shareholders, Cevian Capital, Alecta and AMF individually agreed with Autoliv and Veoneer to remain significant shareholders of Veoneer for a minimum period after the spin-off.

June 8 - Veoneer named Jan Carlson its Chairman of the board following the completion of the spin-off. Jan Carlson has been President and CEO of Veoneer since April 1, 2018.

June 29 – The spin-off of Veoneer from Autoliv was completed. Veoneer’s common stock trades on NYSE under the symbol “VNE” and its Swedish Depository Receipts trade on Nasdaq Stockholm under the symbol “VNE-SDB”.

Carve-Out Reporting – The first half 2018 financial results for Veoneer have been prepared from the financials of Autoliv, Inc. under specific carve-out basis accounting rules.

Next Report – The next report is planned for October 26, 2018.

Inquiries – Corporate website www.veoneer.com. Contacts: Thomas Jonsson – EVP Corp. Communications & IR,                  +46 70-957 81 27 or Thomas.jonsson@veoneer.com and       Ray Pekar – VP Investor Relations, +1 248 794 4537 or ray.pekar@veoneer.com.

This information is information that Veoneer, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the VP Investor Relations set out above, at 11:00 am CET on July 27, 2018.

Page 6 (10)

27 July 2018

(Dollars in millions, except per share data)

Three Months Ended June 30

Six Months Ended June 30

Last

Full Year

(Unaudited)

2018

2017

2018

2017

12 Months

2017

Net sales

$572

$579

$1,166

$1,162

$2,326

$2,322

Cost of sales

(460)

(459)

(943)

(929)

(1,870)

(1,856)

Gross profit

$112

$120

$223

$233

$456

$466

Selling, general & administrative expenses

(37)

(26)

(68)

(55)

(123)

(110)

Research, development & engineering expenses, net

(119)

(102)

(225)

(189)

(411)

(375)

Goodwill impairment charges

-

-

-

-

(234)

(234)

Amortization of intangibles

(6)

(5)

(11)

(24)

(24)

(37)

Other income

2

1

17

13

12

8

Operating loss

($48)

($12)

($64)

($22)

($324)

($282)

Loss from equity method investments

(16)

(8)

(30)

(8)

(53)

(31)

Interest income

1

-

1

-

1

0

Interest expense

(1)

-

(1)

-

(1)

0

Other non-operating items, net

1

1

1

0

0

(1)

Loss before income taxes

($63)

($19)

($93)

($30)

($377)

($314)

Income tax expense

(3)

(11)

(10)

(22)

(18)

(30)

Net loss

($66)

($30)

($103)

($52)

($395)

($344)

Less: Net loss attributable to non-controlling interest

(3)

(2)

(8)

(4)

(131)

(127)

Net loss attributable to controlling interest

($63)

($28)

($95)

($48)

($264)

($217)

Net loss per share - basic^{2, 3)}

($0.72)

($0.32)

($1.09)

($0.55)

($3.03)

($2.49)

Weighted average number of shares outstanding (in millions)

87.13

87.13

87.13

87.13

87.13

87.13

30-Jun

31-Mar

31-Dec

30-Jun

31-Mar

(Dollars in millions, unaudited)

2018

2018

2017

2017

2017

Assets

Cash & cash equivalents

$980

-

-

-

-

Receivables, net

439

504

460

475

452

Inventories, net

157

161

154

162

157

Related party receivables

71

0

-

0

0

Prepaid expenses and contract assets

29

41

34

36

28

Other current assets

23

0

-

2

5

Total current assets

$1,699

$706

$648

$675

$642

Property, plant & equipment, net

415

398

362

343

336

Investments

134

159

98

120

-

Goodwill

291

291

292

511

510

Intangible assets, net

109

121

122

130

133

Deferred tax assets

30

32

30

20

20

Related party notes receivables

-

0

76

81

66

Other non-current assets

71

54

34

26

20

Total assets

$2,749

$1,761

$1,662

$1,906

$1,727

Liabilities and equity

Accounts payable

279

325

323

326

313

Related party payables

47

6

5

8

4

Accrued expenses

216

213

195

189

197

Income tax payable

12

42

41

35

34

Other current liabilities

30

36

26

53

47

Short-term debt

0

24

0

4

12

Page 7 (10)

27 July 2018

Total current liabilities

$584

$646

$590

$615

$607

Related party long-term debt

13

36

62

31

12

Pension liability

19

14

14

14

16

Deferred tax liabilities

20

17

17

17

19

Other non-current liabilities

11

10

22

2

0

Total non-current liabilities

$63

$77

$115

$64

$47

Equity

Common stock

87

-

-

-

-

Additional paid-in capital

1,915

-

-

-

-

Net Former Parent Investment

-

917

844

1,011

856

Accumulated other comprehensive income (loss)

(13)

-

(8)

(24)

(24)

Total Equity

$1,989

$917

$836

$987

$832

Non-controlling interest

113

121

121

240

241

Total Equity and non-controlling interests

$2,102

$1,038

$957

$1,227

$1,073

Total liabilities, Parent Equity and non-controlling interests

$2,749

$1,761

$1,662

$1,906

$1,727

Three Months Ended June 30

Six Months Ended June 30

Last

Full Year

(Dollars in millions, unaudited)

2018

2017

2018

2017

12 Months

2017

Operating activities

Net loss

$

(66

)

$

(30

)

$

(103

)

$

(52

)

$

(395

)

$

(344

)

Depreciation and amortization

$

27

$

24

$

55

$

64

$

110

$

119

Goodwill, impairment charge

-

-

-

-

$

234

$

234

Contingent consideration write-down

-

-

$

(14

)

$

(13

)

$

(14

)

$

(13

)

Other, net

$

(3

)

$

(17

)

$

3

$

(20

)

$

16

$

(7

)

Change in operating assets and liabilities

$

(43

)

$

(20

)

$

(105

)

$

(14

)

$

(81

)

$

10

Net cash used in operating activities¹⁾

$

(85

)

$

(43

)

$

(164

)

$

(35

)

$

(130

)

$

(1

)

Investing activities

Net decrease in related party notes receivable

-

$

(15

)

$

76

$

(7

)

$

81

$

(2

)

Capital expenditures

$

(40

)

$

(23

)

$

(71

)

$

(50

)

$

(131

)

$

(110

)

Equity method investment

$

1

$

(112

)

$

(71

)

$

(112

)

$

(84

)

$

(125

)

Proceeds from sale of property, plant and equipment

$

2

$

2

$

4

$

5

$

6

$

7

Net cash used in investing activities

$

(37

)

$

(148

)

$

(62

)

$

(164

)

$

(128

)

$

(230

)

Financing activities

Net increase in short-term debt including related party

$

(23

)

$

(9

)

`

-

$

4

$

(4

)

Cash provided at separation by Former Parent

$

980

-

$

980

-

-

-

Net transfers from Former Parent

$

168

$

179

$

275

$

179

$

280

$

184

Repayments and other changes in related party long-term debt

$

(23

)

$

20

$

(49

)

$

20

$

(18

)

$

51

Net cash provided by financing activities

$

1,102

$

190

$

1,206

$

199

$

1,239

$

232

Effect of exchange rate changes on cash and cash equivalents

-

-

-

-

-

-

Increase in cash and cash equivalents

$

980

-

$

980

-

$

980

-

Cash and cash equivalents at beginning of year

-

-

-

-

-

-

Cash and cash equivalents at end of year

$

980

-

$

980

-

$

980

-

Page 8 (10)

27 July 2018

Dollars in millions,

Three Months Ended June 30

Six Months Ended June 30

(except where specified)

2018

2017

2018

2017

Gross margin, %¹⁾

19.6

20.7

19.1

20.1

SG&A %

6.5

4.5

5.8

4.7

RD&E %

20.8

17.6

19.3

16.3

Operating margin, %²⁾

(8.4

)

(2.1

)

(5.5

)

(1.9

)

Depreciation and Amortization, %

4.7

4.1

4.7

5.5

EBITDA, %³⁾

(3.7

)

2.1

(0.8

)

3.6

Capital Expenditures, %

7

4

6.1

4.3

Net working capital ⁴⁾

135

60

135

60

Shareholders' equity⁵⁾

1,989

987

1,989

987

Cash and cash equivalents

980

-

980

-

Weighted average number of shares outstanding (in millions)6)

87.13

87.13

87.13

87.13

Loss per share⁶⁾

$

(0.72

)

$

(0.32

)

$

(1.09

)

$

(0.55

)

Total parent shareholders’ equity per share

$

22.83

$

11.33

22.83

11.33

No. of Associates at period-end⁷⁾

6,691

5,980

6,691

5,980

No. of Total Associates at period-end⁸⁾

7,937

7,102

7,937

7,102

Days receivables outstanding⁹⁾

82

75

80

75

Days inventory outstanding¹⁰⁾

21

21

21

21

Dollars in millions,

Three Months Ended June 30

Six Months Ended June 30

(except where specified)

2018

2017

2018

2017

Electronics

($13)

$10

$4

$36

Brake Systems

$5

$6

$7

$16

Segment EBITDA

($8)

$16

$11

$52

Corporate and other

($13)

($4)

($20)

($10)

EBITDA

($21)

$12

($9)

$42

Page 9 (10)

27 July 2018

Dollars in millions,

Three Months Ended June 30

Six Months Ended June 30

(except where specified)

2018

2017

2018

2017

Net Loss

($66)

($30)

($103)

($52)

Depreciation and amortization

$27

$24

$55

$64

Loss from equity method investments

$16

$8

$30

$8

Interest and other non-operating items, net

($1)

($1)

($1)

–

Income tax expense

$3

$11

$10

$22

EBITDA

($21)

$12

($9)

$42

Dollars in millions,

As of

(except where specified)

June 30, 2018

March 31, 2018

December 31, 2017

June 30, 2017

Total current assets

$1,699

$706

$648

$675

Total current liabilities

$584

$646

$590

$615

Working capital

$1,115

$60

$58

$60

Cash and cash equivalents

($980)

$0

$0

$0

Net working capital

$135

$60

$58

$60

Page 10 (10)

27 July 2018