Veoneer : Release

Convenient, Safe Driving for Everyone

We believe that a step-by-step approach to autonomy is the way to increase convenience and traffic safety. We call it collaborative driving.

Collaborative driving blends the best of human drivers and machine intelligence for Advanced Driving Assistance Systems into a sophisticated driving system, where the human driver is interact- ing with intelligent technology. High performance driver state anal- ysis is used to monitor levels of attention, distraction, drowsiness, engagement and impairment, with warning and intervention strat- egies developed using human factors and behavioral research to keep the human driver in the loop.

We Innovate Trust

Today, lack of trust is a major roadblock for adoption of currently available vehicle technology. Consumer surveys show that drivers often turn off safety features such as lane-keeping assist because they beep too often. At the other end of the spectrum, we know that some drivers can over-trust technology, resulting in severe crashes. Humans must trust automated systems to make the right decisions. In return, these systems must decipher a human driver's readiness to intervene, as well as respond to a range of driver skill levels and human emotions. When humans and ma- chines collaborate seamlessly, that is when we successfully have innovated trust.

Democratize Safety

According to the World Health Organization, annually almost 1.4 million lives are lost and 50 million people are injured on roads

globally, over half of which are pedestrians and vulnerable road users. Veoneer's products and solutions prevent traffic accidents and, when accidents are unavoidable, our restraint control systems help mitigate the effects of a crash. We create trust in mobility.

Improved safety can no longer be just an option. We democra- tize safety through a scalable architecture, where the same base technology platform can be used from basic driver assistance solu- tions up to fully autonomous driving on highways and in traffic jam situations. This approach helps lowering the R&D costs and means that increased safety becomes affordable for more people. In 2030, the vast majority of all cars sold will have advanced safety soft- ware and hardware that provide collaborative interaction with the driver.

Scalable Architecture

• • L2 supervised cruising & connected features

Creating

Trust in Mobility

Veoneer, Inc. is a worldwide leader in automotive technology. Our purpose is to create trust in mobility. We design, manufacture and sell state-of-the-art software, hardware and systems for occupant protection, advanced driving assistance systems, and collaborative and automated driving to vehicle manufacturers globally. Headquartered in Stockholm, Sweden, Veoneer became an independent, publicly traded company in 2018, listed on the New York Stock Exchange and on the Nasdaq Stockholm.

7,543

ASSOCIATES

$1.37 Bn

NET SALES

Sales by Product

11

COUNTRIES

6

MANUFACTURING SITES

Sales by Customer

22

TECHNICAL CENTERS

Sales by Region

Other

Honda

Brake Systems

Other 1%

2020 was a year unlike any other. The COVID-19 pandemic and its consequences occupied the thoughts and actions of an entire world and for Veoneer, just as for the world at large, health and safety emerged as the primary focus of all activities. Second to the health effects were the economic consequences. The auto-motive industry was not immune, and the second quarter of the year saw global car production almost cut in half compared to the year before, after which a strong rebound commenced, one which is still on-going. Fundamentally this rebound has been a positive development which on the flip side is also creating challenges for global supply chains and logistics.

I am grateful for the efforts and support from all our asso-ciates and the commitment from our shareholders and other stakeholders during this unique year. It has allowed Veoneer to stick to its plans from the beginning of the year, showing organic growth, improving financials, deliver new technologies and key vehicle launches and being able to set a stake in the ground for the timing of reaching positive cash flow and operating income.

Covid -19 Actions

In February, we initiated our crisis response by creating health and operational crisis management teams. This included strict health protocols and measures at all our facilities to avoid the spread of the virus within Veoneer. In addition, daily reviews to secure our operations and logistics allowed Veoneer to meet commitments to our customers while ensuring the health and safety of our associates. We also initiated work at home, where at the peak more than 4,000 of Veoneer's associates were work-ing remotely. The initial actions turned out to be effective and we have by and large retained the same type of Covid-19 measures throughout the year and into 2021. This has allowed us to keep our operations relatively unaffected, while at the same time we have kept building for the future. We have also had some cases of

*Non-U.S. GAAP measure. See Annual Report on Form 10-K for more information.

Veoneer 2020

Covid-19, unfortunately including tragic losses of associates, and my thoughts goes to all who have been personally touched by the pandemic and have lost near and dear ones.

Current Trends in Automotive

In 2020 the strength of the trend toward electrification surprised many and this transition will continue to be rapid. In automation the trend is equally strong, but maybe slightly more multifaceted. On one hand the efforts toward fully autonomous driving are continuing, but refocusing towards last the mile delivery and robo-taxis in well-defined geofenced areas. The general-purpose self-driving car is still many years away. At the same time, the trend toward more driver support and collaborative driving is stronger than ever. New constellations are being formed almost on a weekly basis and billions of dollars are being invested into this trend, which promises to make driving safer, more conven-ient and more environmentally friendly. We continue to see the Active Safety market grow strongly, at least the next decade.

Underlying all these developments are the rise of software as an increasing force in the automotive industry. It takes many shapes and forms in everything from infotainment and radically improved connectivity to software for perception and driving policy, which enables decision making and actuation in the areas of Active Safety, collaborative and autonomous driving.

Veoneer's Focus and Financial Performance

Veoneer is at the center of the trend of automation. We are 100% focused on creating hardware, software, systems and solutions for safer and more convenient driving. We have been consistent in following an evolutionary strategy. We see that automakers are gradually introducing more and more Active Safety technol-ogy every year; they also introduce it across broader sections of their vehicle programs. We are supporting our OEM customers