Exhibit 99.1
 
Stockholm, Sweden, October 25, 2018 (NYSE: VNE and SSE: VNE-SDB)
Financial Report July - September 2018
Financial Summary - Q3'18
Consolidated Net Sales $526 million
Net Sales growth (7)%
Organic Sales* growth (5)%
Operating Margin (11)%
Order Intake ~$1.1 billion Q3 LTM average annual sales
 
2018 Outlook and Targets Update
FY’18 Consolidated Net Sales growth (4)%
Q4’18 RD&E increase ~$20 million from Q3’18 levels
Downside risk to 2020 total Sales target, Active Safety on-track
1 to 2 year delay to achieve 0 to 5% Operating Income target
Upside potential to 2022 total Sales target, mainly Active Safety


Business Highlights
Active Safety Organic Sales* growth of 6%
Continued increases in customer bidding, technical qualifications and new business awards during the quarter
Hiring of 370 engineers in RD&E during the quarter
Continued strong Order Intake in Q4’18 - currently more than $1.3 billion LTM average annual sales

Key Figures
 
Three Months Ended September 30

 
Nine Months Ended September 30

Dollars in millions,
2018
 
2017
 
Change
 
2018
2017
Change
(except where specified)
$
 
%
 
$
 
%
 
$
 
$
 
%
 
$
 
%
 
$
Net Sales
$
526

 
 
 
$
567

 
 
 
$
(40
)
 
$
1,692

 
 
 
$
1,729

 
 
 
$
(37
)
Gross Profit / Margin
$
99

 
18.8
 %
 
$
109

 
19.2
 %
 
$
(10
)
 
$
321

 
19.0
 %
 
$
342

 
19.8
 %
 
$
(20
)
RD&E, net / % of Sales
$
(109
)
 
20.7
 %
 
$
(91
)
 
16.0
 %
 
$
(19
)
 
$
(334
)
 
19.7
 %
 
$
(280
)
 
16.2
 %
 
$
(54
)
Operating Loss / Margin
$
(58
)
 
-11.0
 %
 
$
(16
)
 
-2.8
 %
 
$
(42
)
 
$
(122
)
 
-7.2
 %
 
$
(39
)
 
-2.2
 %
 
$
(83
)
EBITDA(1) / Margin
$
(31
)
 
-5.9
 %
 
$
10

 
1.9
 %
 
$
(41
)
 
$
(40
)
 
-2.4
 %
 
$
52

 
3.0
 %
 
$
(92
)
(1) Non-U.S. GAAP measure reconciliation for EBITDA
Comments from Jan Carlson, Chairman, President and CEO
We continue to see very rapid developments in the Active Safety market - new partnerships are being formed, new products introduced and for every model year an increasing number of new cars have Active Safety features available. It remains a dynamic and fast-growing market which means more long-term opportunities for Veoneer. However, the volatile nature of this evolving market and light vehicle fluctuations make the precise timing of its development difficult to predict. Considering this, we see the need to provide some updates on our progress towards our previously announced targets.
Based on the attractiveness of our Active Safety portfolio and strong customer relationships, we see a potential upside to our $4 billion 2022 total sales target, particularly for the $2 billion Active Safety sales target. We are encouraged by the fact that Active Safety, the growth engine of the company continues to look very strong. In fact, Veoneer’s current total order intake for the last twelve months (LTM) is more than $1.3 billion average annual sales, with the majority coming from Active Safety.
To support the continued high order intake, the advanced system business we have already won, and further investment in long-term leadership in Active Safety, we intend to further increase our investments in RD&E. This investment decision for future growth means that we now anticipate reaching our 0-5% operating income target one to two years later than previously communicated.
In the short-term, we see some delays in the start of production and slower ramp-ups of certain customer models along with some slight delays in expected business. These developments result in downside risk to our 2020 total sales target and we are therefore likely to reach $3 billion in total sales slightly later than previously anticipated. Despite this, Active Safety remains on-track to exceed $1 billion in sales in 2020.
Although the near-term slowdown in light vehicle production is affecting our 2018 sales, we saw several positive developments in the third quarter. Our order intake remained strong, we secured business for advanced future technologies and we had our first dedicated software feature sale.
We secured a contract for an advanced electronic control unit for Robo-taxis with a major global OEM and we also introduced to the market the world’s most advanced super computer “Zeus” for Autonomous Driving together with our partners Zenuity and NVIDIA.
We are well on track to fulfill our vision of being the trusted leader in mobility, while delivering long-term value to our employees, customers and shareholders.

An earnings conference call will be held today, October 25, 2018 at 15:00 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 MD&A in the Form 10-Q report and the Non-U.S. GAAP Financial Measures section on page 10 of this earnings release for further disclosures.
*For these non-U.S. GAAP financial measures, and any others marked with an “ * ” throughout this earnings release, see the reconciliation tables in this earnings release, including the Non-U.S. GAAP Financial Measures section on page 10. See the Non-U.S. GAAP Financial Measures section for further discussion of the forward-looking organic sales non-U.S. GAAP financial measure.

1

The following information was filed by Veoneer, Inc. (VNE) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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