Veoneer Order Book, New Order Intake and Sales Estimate Update

Veoneer, Inc. (NYSE: VNE)  (SSE: VNE SDB), estimates its current total order book value to be approximately $19 billion, in line with the estimate of more than $19 billion from the end of 2018, pointing to strong sales growth ahead. Lifetime value of the new order intake for the full year 2019 is estimated at approximately $2.5 billion, corresponding to an average annual new order intake value of around $550 million, of which around 70% is for Active Safety orders. The lower than expected figure is mainly due to delayed timing of orders, first indicated in Veoneer's earnings release for the third quarter 2019.

The total order book value of approximately $19 billion is in line with the estimate from the end of 2018, despite an average decline in the expectations for light vehicle production until 2025 of approximately 9%, compared to the expectations from one year ago. Similar to last year around 80% of the order book is for the Electronics business segment (Active Safety and Restraint Control Systems).  The total order book value is calculated as the total expected sales value of all current orders.

Given the continued strong order book, Veoneer estimates its core Active Safety and Restraint Control Systems sales to grow to approximately $2.5 billion by 2022, a compound annual growth rate (CAGR) of approximately 19%, an outperformance of the currently expected light vehicle production by more than 15%. Including its Brake Control Systems business, currently under strategic review, sales are expected to be approximately $3.3 billion and an estimated CAGR of 20%. This compares to last 12 months net sales as of September 30, 2019 of the core business of $1.604 billion and total net sales (including the Brake Control Systems business) of $1.982 billion.

Veoneer expects to return to organic sales growth in 2020. Based on the timing of new vehicle launches, the growth is expected to be focused in the second half of the year. The Company intends to share further information regarding 2020 organic sales and estimated new order intake in its earnings release for the fourth quarter 2019, scheduled to be issued on February 5, 2020.

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 Friday January 3, 2020. 

Non-U.S. GAAP Financial Measure

In this release we refer to organic sales growth, a forward-looking non-U.S. GAAP financial measure.  For additional information on organic sales and organic sales growth, see Veoneer's filings with the Securities and Exchange Commission.