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© Autoliv Electronics Production | April 27, 2018

Autoliv on Veoneer spin-off progress

Operational separation of the Electronics business (new name: Veoneer) was completed on schedule April 1, 2018 and critical items, including transfer of people, set-up of systems and the establishment of leadership teams, are tracking according to plan.
The company anticipates trading in Veoneer to begin in the early part of the third quarter of 2018 with listings on the New York Stock Exchange and Nasdaq Stockholm.

The initial capitalization of Veoneer is expected to be provided through a capital injection from Autoliv and will provide up to USD 1.2 billion of cash liquidity in Veoneer (including existing cash). It is expected to be sufficient to fund Veoneer until it reaches positive cash flow. The initial capitalization also takes into account Veoneer's on-going investments in joint ventures, particularly Zenuity, and certain anticipated business combinations, a press release states.

To fund the capital injection, Autoliv intends to raise the majority of the needed capital through debt financing, while the remaining amount of the capital injection will be from Autoliv's cash on hand. Autoliv's ambition is to maintain its strong investment grade credit rating following the capital raise and the capital injection into Veoneer.

Completion of the spin-off is subject to market, regulatory and certain other conditions, including final approval by Autoliv's Board of Directors and declaration of effectiveness of the registration statement by the SEC.

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July 18 2018 5:55 pm V10.0.0-2