Financial Report October - December 2021: Veoneer

STOCKHOLM,Feb. 2,2022 --

Financial Summary - Q4'21

Net Sales $449 million,Organic Sales1 decline-1%

Active Safety Net Sales increase 18%,Organic Sales increase18%

Operating cash flow $8 million,$85 million improvementYoY

Cash balance $424million

Veoneer is currently focusing on providing information relating to the on-going acquisition process and is no longer providing a forward looking outlook and will not be holding an earningscall.

BusinessHighlights

Organic Sales out-performed the global LVP by ~12pp for Q4 '21 and ~16pp for the full year 2021 (IHS Markit,Jan2022)

On October 4,2021 Veoneer reached a definitive agreement for SSW Partners and QUALCOMM Incorporated Inc. to acquireVeoneer

Market Adjustment Initiatives (MAI) program continued to generate underlying cost structure and balance sheetimprovements

Order book at the end of 2021 was ~$14 billion,Order intake for 2021 was ~$455 million of average annual sales with lifetime sales of ~$2.1 billion where Active Safety was~60%

Important milestone for Arriver,will deliver vision perception software to BMW as part of on-going Qualcommcollaboration

Veoneer set ambitious carbon emission targets for a more sustainable future: Carbon neutral in own operations by 2030,Carbon neutral products by 2039,Carbon neutral company by2040

The negative sales impact from semiconductor related shortages is estimated to have been around $55 million for thequarter

Veoneer-SSW/Qualcomm Merger update

Veoneer stockholders approved the merger agreement in December and by the end of January the deal had received the required regulatory approvals in the United States,Germany,France and Italy. In addition,SSW and Qualcomm are consulting other regulators regarding themerger.

As communicated before the deal is expected to close in 2022. The earliest date to close the deal according to the merger agreement is in early April 2022. The parties are working diligently to be in a position to close at thattime.

Veoneer has been informed that when the acquisition of Veoneer closes SSW intends to sell Arriver to Qualcomm and start the formal process to find long term owner or owners for Veoneer's on-goingbusinesses.

Comments from Jan Carlson,Chairman,President andCEO

The fourth quarter was another period of solid performance by the entire Veoneer team. During this time of unprecedented internal and external change our team managed to deliver solid results and stay focused on the day to day operations which continues to be challenged by semiconductor related shortages and the effects of the COVID-19pandemic.

Despite being limited by semiconductor related shortages our sales continued to significantly outperform the light vehicle production and our operating loss,taking into consideration around $20 million of merger related costs,improved significantly from the same period a year ago. Ingeneral our financial management continues to be very strong and in the fourth quarter we managed to achieve positive operating cashflow.

The merger process with SSW/Qualcomm is progressing well and it will allow for all parts of the Company to further focus on its core competencies. For Veoneer as a leading supplier of systems,sensors and integration for ADAS and safety and for Arriver as a leading software house combining their solution with Qualcomm's world leading Snapdragon Ride SoC. We are committed to provide timely updates to our shareholders as the process continues and we are approaching the closing and the payout to ourshareholders.

During the fourth quarter we also took the next steps in our ESG efforts by setting ambitious targets for reducing our carbon footprint and eventually becoming carbon neutral by the year2040.

We continue to focus on daily execution and look forward to significant growth and a new structure for Veoneer and Arriver,that is fit for the changing businessenvironment.

Contacts:

Thomas Jönsson - EVP Communications & IR,+46 8 527 762 27 or thomas.jonsson@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 12:00 CET on February 2,2022.

1For 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 page10.

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