Financial Summary - Q1'19

  · Consolidated Net Sales $494 million
  · Net
Sales growth (17)%, Organic Sales1 growth (12)%
  · Active Safety Net Sales
growth (10)%, Organic Sales1 growth (3)%

2019 Outlook

  · Light vehicle
production decline low to mid single digits versus 2018
  · Organic Sales1
decline in the mid single digits versus 2018
  · Currency translation impact on
sales unchanged at ~(2)% versus 2018
  · Operating loss, cash flow weaker in
H1'19, expected improvement in H2'19

Business Highlights

  · Veoneer Order
Book at the beginning of 2019 was more than $19 billion as
compared to
approximately $16 billion one year earlier
  · Q1'19 Order Intake remains
strong, LTM approximately $1.2 billion average
annual sales with Active Safety
at similar levels to 2018
  · Market adjustment initiatives are expected to
deliver margin and cash flow
improvements during the H2'19 and into 2020
  ·
The Company is considering alternatives for a capital markets raise of up
to
$500 million


Comments from Jan Carlson, Chairman, President and CEO

The
future of transportation belongs to Collaborative Driving. We believe that
in
the not too distant future, the vast majority of all cars sold will be
equipped
with advanced driving assistance technology. We also believe that
Veoneer, with
our cutting-edge offering in a broad range of Active Safety
products, will be
one of the leaders in this emerging industry. However, the
speed of this
transition is proving more difficult to predict than earlier
anticipated. We
have to adjust our speed to changing road conditions.

At present, we see
changes in the market. The first quarter was weaker than
expected. Light
vehicle production during the first quarter deteriorated beyond
market
expectations. In addition, Veoneer sales declined more than the light
vehicle
production primarily driven by our high-level content on premium car
models in
current deliveries. This vehicle segment saw a sharper production
decline than
the general market.

We currently see these trends continuing through 2019,
primarily due to weak
markets in China and Europe. We still expect the second
half, mainly the fourth
quarter, to be stronger than the first half of 2019. We
now anticipate our
organic sales will decline for the full year 2019 as
compared to 2018. We
experienced continued increasing RD&E costs during the
quarter. This w as mainly
driven by the complexity of certain projects, change
requests from our customers
and high level of new hires.

At the same time, our
order intake continues to be strong. Our strategically
important Active Safety
business specifically show ed progress. While launch
schedules into 2020 are
mainly on track, we see some potential customer launch
delays and lower
production volumes than previously expected.

Developing cutting-edge
technology for the next generation of automotive
mobility requires resources,
particularly in a situation when the order intake
continues to be strong. In
consideration of this and the changed market
conditions, the company has
decided to seek additional funding to help secure
the continued development of
our product portfolio.

Moving forward, w e w ill continue our focus on growth
and take firm internal
actions to adjust to the market changes by:

  ·
increasing our efforts on the initiatives around investment priorities,
as
announced in the fourth quarter 2018 earnings report,
  · improving balance
sheet and cash-flow efficiency, including restrictions on
capital expenditures
and focus on operating working capital,
  · undertaking several gross margin
improvement initiatives,
  · maintaining RD&E costs relatively flat at a
maximum of $600 million for the
full year 2019,
  · enhancing efficiency and
focus on w inning orders within the product
portfolio,
  · reviewing our brake
control business, a process that is w ell under w ay,
and
  · reviewing the
focus of Zenuity, as the market opportunities move to
Collaborative Driving and
self-driving is pushed out in time.

Our belief is firm: The future belongs to
Collaborative Driving. By Creating
Trust in Mobility we believe we are w ell on
our w ay to realizing the vision.
Veoneer is built on close to 70 years of
developing safety systems within
Autoliv, a pioneer in automotive safety. A
vital part of our heritage is our
ability to patiently build profitable
business models based on innovation.

As described above, we see deteriorating
business conditions in the near term,
including lower than expected light
vehicle production. We also do not expect to
see the effects of our efficiency
and prioritization initiatives until the
latter part of the year and into 2020.
This situation, along with our capital
needs for RD&E due to continued strong
order intake, execution of current
customer projects and the continued
development of our product portfolio, has
led the Company to consider
alternatives for approaching the capital markets for
a capital raise of up to
$500 million.

We are fully committed to address the short-term challenges head
on. We have a
strong and dedicated management team, cutting edge technology, a
talented work
force, and a competitive product portfolio with an order book of
more than $19
billion points toward a strengthened future market position.
These building
blocks will help establish Veoneer among the top companies in
the development of
Active Safety and Collaborative Driving.

Contacts:
Thomas
Jonsson - EVP Communications & IR, +46 8 527 762 27
or
thomas.jonsson@veoneer.com and
Ray Pekar - VP Investor Relations, +1 248 794
4537 or ray.pekar@veoneer.com.
Inquiries - Company Corporate website
www.veoneer.com.
This report 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 EVP Communications and IR
set out above,
at 08:30 CET on Monday, April 29, 2019.


An earnings conference
call will be held today, April 29, 2019 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. See
also the Non-U.S. GAAP Financial Measures section
on page 8 of this earnings
release for further disclosures.
1For these non-U.S. GAAP financial measures,
see the reconciliation tables in
this earnings release, including the Non-U.S.
GAAP Financial Measures section on
page 8. See the Non-U.S. GAAP Financial
Measures section for further discussion
of the forward-looking organic sales
non-U.S. GAAP financial measure.