Kongsberg Gruppen

Quarterly Report • Oct 24, 2024

Quarterly report 3rd quarter 2024

protectingpeopleandplanet

A solid and eventful quarter

In the third quarter, we achieved profitable growth and signed key agreements that set the stage for continued strong development. Our strong profitability year to date demonstrates our effective scaling during this growth phase. In addition to fulfilling current commitments, we have taken steps to further increase capacity and entered into new development collaborations. KONGSBERG will contribute to security and a sustainable transition.

We have completed a very solid quarter. Growth continues, and profitability is developing as planned. For KONGSBERG, the third quarter has historically shown somewhat higher margins than the remaining quarters of the year. The strong profitability in the quarter also demonstrates our ability to scale as operating revenues increase. However, it is important to note profitability will fluctuate depending on the projects being executed.

Our markets are undergoing substantial growth and transformation, and our positions have never been stronger. Security is a top priority in most countries, leading to a strong demand for our products and services. At the same time, the maritime industry is undergoing a transition aimed at extensive energy efficiency and emission reductions. Technology and data access, both above and below water, are prerequisites for success, and we offer the solutions required for a successful transition.

The growth phase we are in requires capacity. Over the past few years, we have made significant investments in new hires, facilities, and the further development of our processes. In the third quarter, we announced that we will establish missile production capacity in both Australia and the USA. This reflects the growth and significant potential we see for our missiles going forward. Concurrently, we have also signed a contract with the Norwegian Defence Materiel Agency to develop the future German-Norwegian missile, the Supersonic Strike Missile, which is expected to be operational from the mid-2030s.

KONGSBERG is well-positioned, has a record-high order backlog, and market activity has never been higher. This provides a solid foundation for further growth.

Highlights in the quarter

Financial

Martime

• MNOK 11 924 in operating revenues, corresponding to 19 per cent growth from Q3 2023

Discovery Øvrige Sum Kongsberg

[CY] [PY]

Martime

Kongsberg Defence & Kongsberg

• All business areas contributed to the growth

Kongsberg

Kongsberg Defence &

• Positive growth in both EBIT and EBIT margin. Generally good and efficient project execution

Market and order intake

• Very high marketing- and tendering activity across the entire group. Book-to-bill ratio of 1.09 in the 3rd quarter
• Contract with Australia for delivery of the Joint Strike Missile
• Generally good order intake in Maritime and Discovery

Other

• Announced new missile production facilities in Australia and in the USA
• Signed a development contract for the Supersonic Strike Missile

Kongsberg Discovery	Øvrige Sum

	Q3				Year to date
MNOK	Operating revenues	EBITDA	EBIT	Order intake	Order backlog	Operating revenues	EBITDA	EBIT	Order intake	Order backlog
Kongsberg Maritime	6 487	1 240	1 112	6 953	20 536	17 870	2 989	2 594	19 241	20 536
Kongsberg Defence & Aerospace	4 255	856	689	4 749	71 963	13 596	2 559	2 093	20 197	71 963
Kongsberg Discovery	1 122	194	167	1 229	3 002	3 186	502	424	3 226	3 002
Kongsberg Digital	422	21	(43)	284	2 046	1 221	(72)	(261)	1 178	2 046
Other/eliminations	(362)	(65)	(57)	(264)	(682)	(910)	(97)	(72)	(867)	(682)
Kongsberg Group	11 924	2 246	1 868	12 951	96 865	34 963	5 881	4 778	42 975	96 865

Key figures

	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
Operating revenues	11 924	9 978	34 963	28 681	40 617
EBITDA	2 246	1 626	5 881	4 364	6 037
EBITDA (%)	18,8	16,3	16,8	15,2	14,9
EBIT	1 868	1 270	4 778	3 327	4 600
EBIT (%)	15,7	12,7	13,7	11,6	11,3
Earnings before tax	1 771	1 312	4 691	3 284	4 675
Earnings after tax	1 369	1 043	3 671	2 590	3 715
EPS (NOK)	7,72	5,93	20,88	14,53	21,08
Order Intake	12 951	11 339	42 975	33 940	65 401

	30.9	30.6	31.12
MNOK	2024	2024	2023
Equity ratio (%)	30,7	29,3	30,9
Net interest-bearing debt 1)	(2 402)	(1 324)	(1 085)
Working Capital 2)	(60)	(316)	(445)
ROACE (%) 3)	38,0	34,9	30,3
Order backlog	96 865	95 561	88 550
Net interest-bearing debt/EBITDA 4)	(0,3)	(0,2)	(0,2)
No. of employees	14 361	13 898	13 341

1) Net interest-bearing debt is the net amount of the accounting lines "Cash and cash equivalents" and "Short- and long-term interest-bearing liabilities" 2) Current assets (except cash and cash equivalents) minus non-interest-bearing liabilities (except taxes payable). Financial instruments recognised at fair value are not included in working capital.

3) 12-month rolling EBIT divided by the 12-month mean of recognised equity and net interest-bearing debt. 4) 12-month rolling EBITDA

Operating revenues and order intake

KONGSBERG

Performance and order intake

					1.1. -
	1.7. - 30.9		1.1. - 30.9	31.12
MNOK	2024	2023	2024	2023	2023
Operating revenues	11 924	9 978	34 963	28 681	40 617
EBITDA	2 246	1 626	5 881	4 364	6 037
EBITDA (%)	18,8	16,3	16,8	15,2	14,9
EBIT	1 868	1 270	4 778	3 327	4 600
EBIT (%)	15,7	12,7	13,7	11,6	11,3
Order Intake	12 951	11 339	42 975	33 940	65 401
Order backlog	96 865	69 233	96 865		69 233 88 550

Operating revenues in 3rd quarter was MNOK 11 924 compared to MNOK 9 978 in the same quarter last year, an increase of 19 per cent. All business areas experienced substantial growth. Kongsberg Defence & Aerospace had previously communicated somewhat lower growth from the missile programs following the opening of the new factory, while the high activity on deliveries to the CROWS program continued. Kongsberg Maritime increased operating revenues from both the newbuilding and aftermarket segments. Growth in Kongsberg Discovery was mainly driven by deliveries of Hugin as well as mapping and positioning systems. In Kongsberg Digital, operating revenues and recurring operating revenues increased. This was a

result of the rollout of systems and an increase in the number of users on the solutions.

Accumulated operating revenues is so far this year MNOK 34 963, up 22 per cent from MNOK 28 681 1 in Q3 2023.

EBIT in Q3 was MNOK 1 868, corresponding to an EBIT margin of 15,7 per cent compared to MNOK 1 270 (12,7 per cent) in the same quarter last year. Advantageous project mix, volume effects and efficient project execution contributed to the increased margin. Reduced risk in major individual projects contributed to the margin increase in Kongsberg Maritime. Accumulated EBIT of the first three quarters were MNOK 4 778, corresponding to an EBIT margin of 13,7 per cent, an increase from MNOK 3 327 (11,6 per cent) in the same period in 2023.

Order intake in Q3 was MNOK 12 951, compared to MNOK 11 339 in the same quarter last year. This gave a book-to-bill for the quarter of 1,09. Order intake can fluctuate significantly between quarters. The largest individual contracts were signed in Kongsberg Defence & Aerospace.

The order backlog at the end of Q3 2024 was MNOK 96 865, an increase of MNOK 1 304 in the quarter and MNOK 27 632 since Q3 2023.

Cash flow

The Group had MNOK 7 126 in cash and cash equivalents at the end of 3rd quarter compared to MNOK 5 938 at the end of the second quarter 2024, a increase of MNOK 1 189 in the quarter. Cash flow in the quarter was mainly impacted by a positive EBITDA.

Net cash flow from operating activities was MNOK 1 673, driven by a positive EBITDA of MNOK 2 246 partly offset by increased working capital as a result of progress on projects where we have already received prepayments from customers, as well as paid taxes.

The Group's cash flow from investment activities was MNOK (329). KONGSBERG is investing significantly in increased capacity and product development.

Cash flow from financing activities was MNOK (257), primarily related to instalments and interest on leasing obligations.

So far this year, KONGSBERG has had a net increase in cash and cash equivalents of MNOK 1 151. The largest increase came from positive EBITDA and positive working capital development. The largest outgoing cash flows were related to dividend payments, repayment of KOG13 bond and investments in production facilities and associated equipment.

Balance sheet

	30.9	30.6	31.12
MNOK	2024	2024	2023
Equity	17 790	16 297	16 465
Equity ratio (%)	30,7	29,3	30,9
Total assets	57 876	55 542	53 222
Working capital 1)	(60)	(316)	(445)
Gross interest-bearing debt	2 500	2 500	2 500
Cash and cash equivalents	7 126	5 938	5 975
Net interest bearing debt 1)	(2 402)	(1 324)	(1 085)
Net interest bearing debt/ EBITDA 1)	(0,3)	(0,2)	(0,2)

1) See definition note 14

At the end of the quarter, the Group had interest-bearing debt of total MNOK 2 500. The debt consisted of three bonds, see Note 7 for further information.

Net interest-bearing debt at the end of Q3 was MNOK (2 402) compared to MNOK (1 324) at the end of Q2 2024 and MNOK (1 085) at the end of 2023.

The Group has a syndicated and committed loan facility of MNOK 2 500, as well as an overdraft facility of MNOK 1 500.

KONGSBERG has a long-term issuer rating of A- with a «stable prospect» awarded by the credit rating agency Nordic Credit Rating. The standalone credit assessment is BBB+. The rating was last updated on 19 April 2024 and can be found on .

Product development

KONGSBERG invests continuously in product development, through self- and customer-financed programmes. Total self-financed product development and maintenance amounted to MNOK 598 in the quarter and MNOK 1 923 in the first nine months of the year, of which MNOK 98 and MNOK 262 were activated. Activated development in the quarter was mainly related to projects in Kongsberg Digital and Kongsberg Defence & Aerospace. See table i Note 8 to the finanical accounts.

In the balance sheet as of 3rd quarter the largest activated projects were related to the development of the digital platform Kognifai and associated applications, missile technology, weapon stations, communication solutions and remote-controlled control towers for airports.

In addition, customer-financed development, either as part of a project or as a specified development assignment. The total scope of product development and maintenance accounts for about ten per cent of operating revenues over time.

Employees

The company had 14 361 employees at the end of 3rd quarter 2024, corresponding to an increase of 463 during the quarter and 1 165 over the past year. All business areas in KONGSBERG are growing and capacity will continue to increase in the future to meet this growth. As of 1 January 2024, over 200 employees in the Group's IT organisation were transferred from Kongsberg Defence & Aerospace to Group functions, which are reported under other activities. Historical figures in tables have been revised and reflect this.

Kongsberg Maritime

MNOK	2024	2023	2024	2023	2023
Operating revenues	6 487	4 990	17 870	14 592	20 180
EBITDA	1 240	762	2 989	1 930	2 601
EBITDA (%)	19,1	15,3	16,7	13,2	12,9
EBIT	1 112	615	2 594	1 515	2 053
EBIT (%)	17,1	12,3	14,5	10,4	10,2
Order Intake	6 953	5 534	19 241	17 610	22 408

	30.9	30.6	31.12
MNOK	2024	2024	2023

Key figures Operating revenues EBIT Operating revenues

Integration & Energy Global Customer Support Propulsion & Handling Automation & Control

Results

Operating revenues was MNOK 6 487 in Q3, an increase of 30 per cent compared to the same quarter last year. All divisions increased operating revenues, and there was significant activity in delivering to both the existing fleet and new vessels. In recent years, order intake from vessel segments such as LNG, tankers and general merchant fleet, including containers, has been at a high level. These are important drivers for the increase in equipment deliveries to new vessels from KM. In the aftermarket, there has still been a high level of activity related to the sale of spare parts and upgrades. Accumulated for 2024, operating revenues was MNOK 17 870, corresponding to a growth of 22 per cent compared with 2023.

EBIT was MNOK 1 112 in 3rd quarter, corresponding to an EBIT

margin of 17,1 per cent compared to MNOK 615 (12,3 per cent) in the same quarter last year. The EBIT improvement came from a combination of a favorable project mix, increased volume and efficient project execution. Reduced risk in some major individual projects resulted in a positive EBIT effect of just over NOK 100 million in the quarter.

Market and orders

Order intake in the quarter was MNOK 6 953, corresponding to a book-to-bill of 1,07. Order intake in Q3 2023 was MNOK 5 534. Accumulated order intake as of Q3 2024 was MNOK 19 241, corresponding to a book-to-bill of 1,08.

Order intake was higher than in the corresponding quarter in 2023 from both the newbuilding and aftermarket segments. The growth in orders from newbuildings was almost 40 per cent and accounted for more than half of the business area's order intake. There was a good order intake from several vessel segments. LNG has been and continues to be an important driver of order intake. In the quarter, there has also been a good order intake related to the tanker segment and significant orders have been signed for deliveries of both new chemical and shuttle tankers.

The number of new vessels contracted to shipyards annually has been relatively stable from 2021 until today. Despite this, Kongsberg Maritime has significantly increased its order intake during the period. This confirms Kongsberg Maritime's strong position in the market. At the same time, the technology content of the vessels is increasing across the segments. Increased efficiency and reduced emissions are an important driver for this. As a result, the business area is experiencing great demand for emission-reducing and emission-free solutions for both newbuilds and existing vessels. In order to be a good partner for

customers through the energy transformation, the business area has strengthened its position as an integrator. Kongsberg Maritime currently has a wide range of integrated solutions that will ensure energy-efficient solutions that meet increasing regulatory requirements. The focus on decarbonization extends across market segments and places greater demands on technological solutions.

The average age of the world fleet has increased significantly over the past ten years. At the same time, the world's shipping faces significant requirements and expectations related to reduced emissions and increased energy efficiency. Kongsberg Maritime has delivered solutions related to safety and streamlining vessel operation and operation for decades. Close co operation with shipyards, vessel owners and operators has given the business area a unique domain knowledge that provides an advantage in both existing and new markets. This provides a good basis for significant demand for Kongsberg Maritime's solutions in both the short and long term.

At the end of Q3 2024, Kongsberg Maritime had an order backlog of MNOK 20 536.

Other conditions

In Q3, KONGSBERG signed an agreement to sell the steering machine and rudder business to a fund managed by the Nordic private equity firm Norvestor. The steering machine and rudder business is currently part of Kongsberg Maritime's Propulsion and Handling division. The transaction includes an international business with end-to-end capabilities in both new sales and aftermarket for steering machines and rudders.

In 2023, this business generated a turnover of approximately NOK 850 million.

The transaction is expected to be completed no later than Q1 2025.

Kongsberg Defence & Aerospace

Key figures						Operating revenues	EBIT	Operating revenues
	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12			YTD per division
MNOK	2024	2023	2024	2023	2023
Operating revenues	4 255	3 940	13 596	10 932	15 949	4 255	689 594
EBITDA	856	752	2 559	2 105	3 005	3 940	452
EBITDA (%)	20,1	19,1	18,8	19,3	18,8	2 802		Defence Systems Missile & Space
EBIT	689	594	2 093	1 650	2 397			Aerostructures & MRO
EBIT (%)	16,2	15,1	15,4	15,1	15,0
Share of net income	32	147	165	215	406	Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3	Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
associated Order Intake	4 749	4 646	20 197	12 932	37 771	2022 2023 2024	2022 2023 2024

Defence Systems Missile & Space

Order backlog	71 963	71 506	65 377
No. of employees	4 560	4 378	4 129

Resultat

Operating revenues was MNOK 4 255 in Q3, up 8 per cent from the same quarter last year. The weapon station deliveries to the US CROWS programme were the single project with the highest operating revenues in Q3. In addition, there was a high level of activity in several air defence projects. As announced in connection with the transfer to new facilities, missile deliveries remain relatively stable compared with the previous quarter. Accumulated operating revenues so far in 2024 MNOK 13 596, up 24 per cent compared to Q3 2023.

EBIT ended at MNOK 689 in Q3, corresponding to an EBIT

margin of 16,2 per cent compared to MNOK 594 (15,1 per cent) ) in the same quarter last year. The EBIT margin in the business area may vary somewhat due to the projects on which it is delivered. Increased volume contributes to scale effects. Accumulated for the first three quarters of the year, EBIT was MNOK 2 093 compared to MNOK 1 650 in the same period in 2023.

The share of net income from associated companies was MNOK 32 (MNOK 147) in the quarter. See also note 5.

Market and Orders

Order intake was MNOK 4 749 in 3rd quarter corresponding to a book-to-bill of 1,12. Accumulated order intake in Q3 2024 was MNOK 20 197 compared to MNOK 12 932 in Q3 2023. At the end of the quarter, the business area had an order backlog of MNOK 71 963, an increase of MNOK 457 during the quarter.

Largest contracts in the quarter:

• Initial contract with Australia for the delivery of the Joint Strike Missile for Australia's F-35A fighter aircraft. The contract had a value of approximately MNOK 1,000.
• Agreement for upgrading Norway's Ula-class submarines. The agreement had a value of MNOK 436 and includes software and hardware upgrades to be able to extend the lifetime of the Ula class until Norway's new 212CD submarines become operational in the 2030s.

Increased missile capacity

On 20 June, the new missile factory, Nexus, opened in Kongsberg. The transfer of missile production to the new and modern facilities is well underway. In Q3, further capacity expansion for missile production was announced in both Australia and the US.

Australian authorities announced in August that they will finance the construction of a new production and service facility for NSM and JSM missiles in New South Wales, Australia.

In September, the business area announced that KONGSBERG will start construction of a missile factory in Virginia, USA. Together with the facilities in Norway and Australia, this underlines the long-term demand for both NSM and JSM.

KONGSBERG already has contracts for deliveries of both missile variants to both the USA and Australia.

Other factors

In July, the business area signed a contract with the Norwegian Defence Materiel Agency for the first phase of development of a new German-Norwegian missile system, the Supersonic Strike Missile (3SM). The 3SM is complementary to the NSM and is a next-generation missile system expected to be put into service from the mid-2030s.

Kongsberg Defence & Aerospace has almost half of its order backlog hedged against inflation through escalation clauses in its contracts. For the part of the order backlog that is not secured, long-term agreements with the supply chain are used to create a predictable cost picture throughout the delivery process.

Kongsberg Discovery

	1.7. - 30.9		1.1. - 30.9	1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
Operating revenues	1 122	924	3 186	2 768	3 913
EBITDA	194	160	502	472	646
EBITDA (%)	17,3	17,3	15,7	17,0	16,5
EBIT	167	149	424	407	556
EBIT (%)	14,9	16,1	13,3	14,7	14,2
Order Intake	1 229	1 103	3 226	2 979	4 305

2022

Key Figures Operating revenues EBIT Operating revenues 151 149

Q2 Q3 Q4 Q1

2024

2024

Q2 Q3

167

YTD per division

Ocean Technologies Marine Life Technologies Uncrewed Platforms Seatex

Order backlog	3 002	2 925	2 948
No. of employees	1 174	1 149	1 074

2023

Results

Operating revenues was MNOK 1 122 in Q3, an increase of 21 per cent compared to the same quarter last year. The main drivers for the increased revenues were high activity related to deliveries of autonomous underwater vehicles, as well as deliveries of mapping and positioning systems to commercial and public customers.

Accumulated for the 3rd quarter , Kongsberg Discovery increased its operating revenues by 15 per cent to to MNOK 3 186 compared with Q3 2023.

EBIT was MNOK 167 in 3rd quarter, corresponding to an EBIT margin of 14,9 per cent compared to MNOK 149 (16,1 per cent) in the same quarter last year. The margin change from Q3 last year is mainly due to a different project mix. Accumulated so far in 2024, EBIT was MNOK 424, up from MNOK 407 in 2023.

Market and Orders

Order intake in 3rd quarter was MNOK 1 229, corresponding to a book-to-bill of 1,10. Order intake was MNOK 1 103 in Q3 2023. Order intake in Kongsberg Discovery may vary between quarters as a result of larger individual orders.In Q3 , four new contracts were signed for the delivery of the autonomous underwater vehicle Hugin, two of which are Hugin Superior. In addition to these contracts, the order intake consisted of contracts for the delivery of mapping and positioning systems to research vessels, in addition to a large number of smaller contracts.

The most important overarching drivers for Kongsberg Discovery are sustainability and safety. Sustainable management of marine resources is an important driver for several of the business area's. The business area is exposed to these drivers in major market segments such as offshore energy generation, commercial fishing, seabed mapping, security and critical infrastructure monitoring. The demand for solutions from commercial actors, public administration and defence customers is increasing.

Sensor technology monitors and maps areas that are often difficult to access, such as along the seabed and in the water column. Protecting and monitoring critical infrastructure is high on the agenda of both international and national actors. Kongsberg Discovery has a broad product portfolio that is relevant to the area and is experiencing great interest in this. Together with other parts of the Group, Kongsberg Discovery delivers comprehensive solutions that secure critical infrastructure.

At the end of Q3 2024, Kongsberg Discovery had an order backlog of MNOK 3 002.

Kongsberg Digital

	1.7. - 30.9		1.1. - 30.9	1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
Operating revenues	422	360	1 221	994	1 433
of this Recurring	227	193	645	529	735
revenues* EBITDA	21	(36)	(72)	(187)	(252)
EBITDA (%)	4,9	(10,1)	(5,9)	(18,9)	(17,6)
EBIT	(43)	(84)	(261)	(326)	(479)
EBIT (%)	(10,1)	(23,5)	(21,3)	(32,8)	(33,4)
Order Intake	284	321	1 178	1 285	2 285

Key Figures Operating revenues Recurring revenues

	30.9	30.6	31.12
MNOK	2024	2024	2023
Order backlog	2 046	2 171	2 034
No. of employees	1 200	1 186	1 188

Resultat

Operating revenues was MNOK 422 in Q3, up 17 per cent from the same period in 2023. Recurring operating revenues were MNOK 227 in the quarter, up from MNOK 193 in Q3 2023. The growth compared to Q3 last year was mainly driven by an increased user base on the dynamic digital twin solution Kognitwin and the digital solutions for "ship to cloud" infrastructure, Vessel Insight, as well as increased activity in the simulation business. Kognitwin was the main driver of the growth in recurring revenue

Operating revenues so far this year were MNOK 1 221, an increase of 23 per cent from the same period last year. Of the operating revenues, MNOK 645 was recurring. This is an increase of 22 percent compared to the same persiod last year.

EBIT in the quarter was MNOK (43) compared to MNOK (84) same quarter last year. The negative operating profit was due to investments in product development and sales and marketing activities. Accumulated EBIT in Q3 2024 was MNOK (261) compared to MNOK (326) in the same period 2023.

Market and order intake

Order intake was MNOK 284 in 3rd quarter, corresponding to a book-to-bill of 0,67. At the end of the quarter, the business area had an order backlog of MNOK 2 046.

With the dynamic digital twin solution Kognitwin, Kongsberg Digital has become a leading player in the digitalisation of industrial and process plants. The solution has previously mainly been sold to customers in the energy industry, but Kongsberg Digital has also generated attention to the solution from other industries. At the end of Q3 2024, Kongsberg Digital had 49 digital twins in operation.

Since Kongsberg Digital was established in 2016, the business area has established itself as a leading supplier of digital solutions to the energy sector and the maritime industry. Digitalization is an important contributor to increased efficiency and reduction in greenhouse gas emissions in these industries. Software as a Service (SaaS) solutions are the key drivers of growth. In recent years, positioning in the market has been in focus, and Kongsberg Digital has therefore increased its capacity related to development, sales and delivery during this period. There is good and growing interest, especially related to Kognitwin, where the number of twins in operations has more than doubled in the past year.

KONGSBERG has high growth ambitions for Kongsberg Digital, and significant investments are being made in scaling and rolling out new solutions and applications.

Outlook

Over the past few years, KONGSBERG has shown positive development, demonstrated good adaptability, and delivered significant growth and strong results.

At the end of Q3 2024, the Group had an order backlog of NOK 96,9 billion, of which NOK 11,7 billion will be delivered during Q4 2024. This provides a good basis for continued growth. Order intake from the aftermarket is to a lesser extent included in the order backlog. Framework agreements are only included in the order backlog when orders under the framework are received

Kongsberg Maritime is exposed to newbuilds and aftermarkets in a wide range of segments, from traditional merchant fleets to more advanced vessels performing complex marine operations. A generally ageing vessel fleet and stricter requirements related to emissions create a need for fleet renewal, which underpins longterm demand for the business area's solutions. However, the renewal of the maritime fleet will take time, as the capacity of the shipyards limits the number of new vessels being built. Technology is the key to succeeding in creating a more environmentally friendly maritime fleet, and Kongsberg Maritime's ambition is to be a leader in this development. The business area is well positioned in a market with an increasing need for efficient and emission-reducing technology, which provides the basis for further growth into 2025.

Kongsberg Defence & Aerospace has grown continuously in recent years and has an order backlog of NOK 72,0 billion at the end of Q3 2024. The business area is well positioned for several significant orders in the short and medium term, which gives expectations of a further increase in the order backlog over the next few years. Profitability varies between different product groups and different geographies. The composition of projects in delivery is therefore an important driver for profitability, which will vary between quarters. To ensure capacity to deliver existing orders and meet the significant demand, investments have been made in increased production capacity for missiles, among other things. The business area is positioned for significant order intake in Q4 and will enter 2025 with a record-high order backlog.

Kongsberg Discovery has a broad, world-leading technology portfolio combined with deep domain knowledge and software. This is important in fisheries, marine research, marine operations, oceanbased energy production and monitoring of critical infrastructure. There is a great demand for technology in all these segments. This provides the basis for continued growth into 2025.

Kongsberg Digital has increased operating revenues and recurring operating revenues significantly in recent years. There is a great deal of attention from the market for the area's digital solutions, both related to streamlining operations and from a climate perspective. Kongsberg Digital delivered positive EBITDA in Q3. This came as a result of growth combined with a favourable cost profile. Investments will continue to be made in the development and roll-out of digital solutions in 2025. Growth will continue, but costs associated with initiatives vary and will result in fluctuations in margins.

The current global perspective remains uncertain and unpredictable. At the same time, there's a significant demand for increased energy efficiency, environmentally friendly energy sources, and enhanced security and monitoring solutions. KONGSBERG has products and systems that can help solve these challenges. This, in addition to a strong order backlog and a solid financial position, provides a good starting point for further growth, both in Q4 2024 and into 2025.

Kongsberg, 23 October 2024

The Board of Directors Kongsberg Gruppen ASA

Numbers & Notes

Key figures by quarter

KONGSBERG	2024						2023			2022
MNOK	2024	Q3	Q2	Q1	2023	Q4	Q3	Q2	Q1	2022	Q4	Q3	Q2	Q1
Operating revenues	34 963	11 924	11 589	11 450	40 617	11 936	9 978	9 614	9 090	31 803	9 444	7 745	7 567	7 046
EBITDA	5 881	2 246	1 815	1 820	6 037	1 672	1 626	1 381	1 357	4 602	1 401	1 360	1 012	829
EBITDA (%)	16,8	18,8	15,7	15,9	14,9	14,0	16,3	14,4	14,9	14,5	14,8	17,6	13,4	11,8
EBIT	4 778	1 868	1 448	1 463	4 600	1 273	1 270	1 038	1 019	3 309	1 068	1 035	683	522
EBIT (%)	13,7	15,7	12,5	12,8	11,3	10,7	12,7	10,8	11,2	10,4	11,3	13,4	9,0	7,4
Share of net income associated companies	166	32	97	37	358	177	148	21	12	387	174	144	47	23
Order intake	42 975	12 951	17 278	12 746	65 401	31 461	11 339	10 512	12 089	45 150	19 166	7 535	10 945	7 503
Order backlog	96 865	96 865	95 561	90 204	88 550	88 550	69 233	68 130	66 927	63 256	63 256	54 127	53 788	49 903

KONGSBERG MARITIME 2024							2023			2022
MNOK	2024	Q3	Q2	Q1	2023	Q4	Q3	Q2	Q1	2022	Q4	Q3	Q2	Q1
Operating revenues	17 870	6 487	5 980	5 402	20 180	5 589	4 990	4 978	4 624	16 486	4 608	4 136	4 005	3 737
EBITDA	2 989	1 240	861	888	2 601	671	762	529	640	1 825	531	622	360	312
EBITDA (%)	16,7	19,1	14,4	16,4	12,9	12,0	15,3	10,6	13,8	11,1	11,6	15,1	9,0	8,4
EBIT	2 594	1 112	729	753	2 053	538	615	392	508	1 255	374	486	211	185
EBIT (%)	14,5	17,1	12,2	13,9	10,2	9,6	12,3	7,9	11,0	7,6	8,2	11,8	5,3	5,0
Order intake	19 241	6 953	6 131	6 157	22 408	4 798	5 534	5 077	6 999	21 335	5 672	4 931	5 583	5 149
Order backlog	20 536	20 536	19 733	20 053	19 097	19 097	19 942	19 553	19 135	16 423	16 423	15 565	14 594	12 633

KONGSBERG DEFENCE & AEROSPACE		2024						2022
MNOK	2024	Q3	Q2	Q1	2023	Q4	Q3	Q2	Q1	2022	Q4	Q3	Q2	Q1
Operating revenues	13 596	4 255	4 425	4 917	15 949	5 017	3 940	3 468	3 523	11 860	3 894	2 802	2 692	2 472
EBITDA1)	2 559	856	856	846	3 005	900	752	664	689	2 463	874	588	554	447
EBITDA (%)	18,8	20,1	19,4	17,2	18,8	17,9	19,1	19,1	19,6	20,8	22,5	21,0	20,6	18,1
EBIT1)	2 093	689	703	700	2 397	748	594	514	541	1 919	727	452	424	316
EBIT (%)	15,4	16,2	15,9	14,2	15,0	14,9	15,1	14,8	15,4	16,2	18,8	16,2	15,8	12,8
Share of net income associated companies	165	32	96	37	406	191	147	56	12	330	172	74	61	24
Order intake	20 197	4 749	10 257	5 190	37 771	24 839	4 646	4 438	3 849	19 560	12 530	1 619	4 080	1 331
Order backlog	71 963	71 963	71 506	65 667	65 377	65 377	45 667	44 938	43 964	43 540	43 540	35 027	35 950	34 504

1) EBITDA and EBIT for 2023 and 2022 are restated due to Kongsberg IT being reported as a part of other from 2024.

Key figures by quarter continued

KONGSBERG DISCOVERY	2024						2023					2022
MNOK	2024	Q3	Q2	Q1	2023	Q4	Q3	Q2	Q1	2022	Q4	Q3	Q2	Q1
Operating revenues	3 186	1 122	1 012	1 052	3 913	1 145	924	934	911	2 998	827	685	747	739
EBITDA	502	194	169	139	646	174	160	168	144	565	131	173	147	113
EBITDA (%)	15,7	17,3	16,7	13,2	16,5	15,2	17,3	18,0	15,8	18,9	15,9	25,3	20,1	15,4
EBIT	424	167	143	114	556	150	149	141	117	464	102	151	123	88
EBIT (%)	13,3	14,9	14,2	10,9	14,2	13,1	16,1	15,1	12,8	15,6	12,3	22,0	16,8	12,0
Order intake	3 226	1 229	839	1 157	4 305	1 326	1 103	835	1 041	3 575	550	885	1 215	926
Order backlog	3 002	3 002	2 925	3 110	2 948	2 948	2 732	2 641	2 708	2 452	2 452	2 811	2 592	2 068

KONGSBERG DIGITAL	2024			2023				2022
MNOK	2024	Q3	Q2	Q1	2023	Q4	Q3	Q2	Q1	2022	Q4	Q3	Q2	Q1
Operating revenues	1 221	422	406	393	1 433	439	360	341	293	989	285	262	220	221
• of this recurring revenues	645	227	219	199	735	206	193	190	145	469	132	122	112	102
EBITDA	(72,0)	21,0	(62,0)	(30,0)	(252,0)	(64,0)	(36,0)	(68,0)	(83,0)	(259,0)	(109,0)	(52,0)	(50,0)	(48,0)
EBITDA (%)	(5,9)	4,9	(15,3)	(7,7)	(17,6)	(14,7)	(10,1)	(19,9)	(28,4)	(26,2)	(38,1)	(19,6)	(23)	(21,7)
EBIT	(261,0)	(43,0)	(125,0)	(93,0)	(479,0)	(153,0)	(84,0)	(114,0)	(127,0)	(380,0)	(146,0)	(83,0)	(79,0)	(73,0)
EBIT (%)	(21,3)	(10,1)	(30,8)	(23,6)	(33,4)	(34,8)	(23,5)	(33,5)	(43,3)	(38,4)	(51,1)	(31,4)	(36,1)	(32,8)
Order intake	1 178	284	363	531	2 285	1 001	321	411	553	1 275	523	286	257	209
Order backlog	2 046	2 046	2 171	2 224	2 034	2 034	1 509	1 570	1 489	1 150	1 150	1 050	986	928

Due to eliminations and that Property, Kongsberg IT and Corporate functions are not included, the sum of Business Areas does not add up to Group.

Condensed income statement

			1.7. - 30.9	1.1. - 30.9		1.1. - 31.12
MNOK	Note	2024	2023	2024	2023	2023
Operating revenues	4	11 924	9 978	34 963	28 681	40 617
Operating expenses	8	(9 678)	(8 352)	(29 082)	(24 317)	(34 581)
EBITDA	4	2 246	1 626	5 881	4 364	6 037
Depreciation		(146)	(119)	(411)	(353)	(479)
Depreciation, leasing assets	6	(123)	(130)	(360)	(365)	(493)
Impairment of property, plant and equipment		—	—	—	—	(4)
Amortisation		(109)	(108)	(327)	(319)	(422)
Impairment of intangible assets		—	—	(6)	—	(39)
EBIT	4	1 868	1 270	4 778	3 327	4 600
Share of net income from joint arrangements and associated companies	5	32	148	166	181	358
Interest on leasing liabilites	6	(39)	(36)	(110)	(103)	(136)
Net financial items		(89)	(70)	(142)	(120)	(147)
Earnings before tax (EBT)		1 771	1 312	4 691	3 284	4 675
Income tax expenses	11	(402)	(269)	(1 020)	(694)	(959)
Earnings after tax (EAT)		1 369	1 043	3 671	2 590	3 715
Attributable to:
Equity holders of the parent		1 359	1 043	3 672	2 559	3 712
Non-controlling interest		11	—	(1)	31	4
Earnings per share (EPS) / EPS diluted in NOK
Earnings per share		7,72	5,93	20,88	14,53	21,08
Earnings per share, diluted		7,72	5,93	20,88	14,53	21,08

Condensed statement of comprehensive income

		1.7 - 30.9	1.1 - 30.9	1.1 - 31.12
MNOK Note	2024	2023	2024	2023	2023
Earnings after tax	1 369	1 043	3 671	2 590	3 715
Specification of other comprehensive income for the period:
Items to be reclassified to profit or loss in subsequent periods: Change in fair value, financial instruments
• Cash flow hedges and cross-currency swaps 7	(56)	200	(223)	(6)	93
Tax effect cash flow hedges	12	(44)	49	1	(20)
Translation differences currency	192	(213)	328	542	426
Total items to be reclassified to profit or loss in subsequent periods	148	(57)	154	537	499
Items not to be reclassified to profit or loss in subsequent periods:
Actuarial gains/losses pensions	—		—		(53)
Tax effect on actuarial gain/loss on pension	—		—		11
Total items not be reclassified to profit or loss	—	—	—	—	(42)
Comprehensive income	1 517	986	3 825	3 128	4 173

Condensed statement of financial position

		30.9	30.6	31.12
MNOK	Note	2024	2024	2023
Assets
Property, plant and equipment		6 482	6 261	5 588
Leasing assets	6	1 998	1 889	1 668
Intangible assets	8	5 945	5 923	5 952
Share in joint arrangments and associated companies	5	4 386	4 340	4 259
Other non-current assets		779	905	871
Total non-current assets		19 590	19 318	18 338
Inventories		7 119	7 003	6 848
Trade receivables		8 298	8 546	8 722
Customer contracts, asset	7	13 267	12 297	10 500
Derivatives	7	1 321	1 391	1 887
Other short-term receivables		1 155	1 048	951
Cash and cash equivalents		7 126	5 938	5 975
Total current assets		38 287	36 223	34 884
Total assets		57 876	55 542	53 222

	30.9	30.6	31.12
MNOK Note	2024	2024	2023
Equity, liabilities and provisions
Issued capital	5 928	5 928	5 928
Retained earnings	9 952	8 676	8 856
Other reserves	1 337	1 188	1 185
Non-controlling interests	572	504	497
Total equity	17 790	16 297	16 465
Long-term interest-bearing loans 7	2 500	2 500	2 500
Long-term leasing liabilities 6	1 794	1 690	1 457
Other non-current liabilities and provisions 3	2 073	2 076	2 111
Total non-current liabilities and provisions	6 367	6 266	6 068
Customer contracts, liabilities 7	21 509	20 999	19 825
Derviatives 7	2 041	1 590	1 929
Short-term interest-bearing loans 7	—	—	500
Short-term leasing liabilites 6	430	422	433
Dividend not paid	1 231	1 276	—
Other current liabilites and provisions 3	8 508	8 691	8 001
Total equity, liabilitiess and provisions	33 719	32 979	30 689
Total equity, liabilities and provisions	57 876	55 542	53 222
Equity ratio (%)	30,7	29,3	30,9
Net-interest-bearing debt	(2 402)	(1 324)	(1 085)

Condensed statement of changes in equity

	30.9	30.6	31.12
MNOK Note	2024	2024	2023
Equity opening balance	16 465	16 465	13 744
Total comprehensive income	3 825	2 308	4 172
Dividends	(2 465)	(2 463)	(2 115)
Share buy-back related to share buy-back programme	—	—	(265)
Transactions with tresury shares related to employee share programme	(13)	(13)	4
Capital reduction	—	—	(2)
Purchase/sale, in non-controlling interest	(23)	(1)	927
Equity closing balance	17 790	16 297	16 465

Condensed cash flow statement

		1.7 - 30.9	1.1 - 30.9	1.1 - 31.12
MNOK Note	2024	2023	2024	2023	2023
Earnings after tax	1 369	1 043	3 671	2 590	3 715
Depreciation/impairment of property, plant and equipment	147	119	411	353	483
Depreciation, leasing assets	123	130	360	365	493
Amortisation/impairment of intangible assets	109	108	332	319	461
Share of net income from joint ventures and associated 5 companies	(32)	(148)	(166)	(181)	(358)
Net finance items	128	106	252	223	283
Income taxes	402	269	1 020	694	959
Gain on sale of business	—	—	—	(135)	(135)
Change in net current assets and other operatings-related items	(573)	(2 014)	(1 167)	(4 336)	(74)
Net cash flow from operating activites	1 673	(387)	4 714	(107)	5 827
Dividend from joint arrangments and associated companies 5	25	—	184	170	170
Purchase/disposal of property, plant and equipment	(300)	(604)	(1 211)	(1 420)	(1 931)
Investment in subsidiaries and associated companies	(75)	—	(84)	(153)	(163)
Interest received	96	26	234	80	120
Sale of business and investment in subsidiaries	53	—	53	1 115	1 115
Capitalised internal development and other intangible assets	(127)	(101)	(322)	(298)	(403)
Settlement of cross-currency swaps	—	—	(109)	(72)	(59)
Net cash flow from investing activites	(329)	(679)	(1 256)	(578)	(1 153)

			1.7 - 30.9	1.1 - 30.9	1.1 - 31.12
MNOK	Note	2024	2023	2024	2023	2023
Net change interest-bearing loans		—	742	(500)	1 739	537
Payment of principal portion of lease liabilities	6	(122)	(119)	(356)	(343)	(477)
Interst paid		(52)	(71)	(155)	(151)	(222)
Interst paid on leasing liabilities	6	(39)	(36)	(110)	(103)	(136)
Net payment related to employee share programme		—	—	(100)	(80)	(80)
Share buy-back related to share buy-back programme		—	—	—	(267)	(267)
Dividends paid to equity holders of the parent		(45)	—	(1 232)	(2 128)	(2 128)
of which dividends from treasury shares		—	—	—	13	13
Net cash flow from financing activities		(257)	517	(2 453)	(1 319)	(2 759)
Effect of changes in exchange rates on cash and cash equivalents		102	(95)	146	184	128
Net change in cash and cash equivalents		1 189	(644)	1 151	(1 820)	2 043
Cash and cash equivalents at the beginning of the period		5 938	2 757	5 975	3 932	3 932
Cash and cash equivalents at the end of the period		7 126	2 112	7 126	2 112	5 975

1 General information and principles

General information

The consolidated financial statement for 3rd quarter (interim financial statement) covers Kongsberg Gruppen ASA, its subsidiaries and shares in joint arrangements and associated companies that are included according to the equity method.

Principles

Interim financial statements are compiled in accordance with IAS 34 (interim reporting), stock exchange regulations and the additional requirements of the Securities Trading Act. Interim financial statements do not include the same amount of information as the full financial statements and should be read in the context of the consolidated financial statements for 2023. The consolidated financial statements for 2023 were prepared in compliance with the Norwegian Accounting Act and international standards for financial reporting (IFRS) established by the EU.

The consolidated financial statements for 2023 are available on www.kongsberg.com.

The interim financial statement has not been audited.

The accounting principles used in the quarterly report are the same principles as those applied to the consolidated financial statements for 2023, with the exception of changes to IFRS 16 "Leases", IAS 1 "Presentation of Financial Statements", IFRS 7 "Financial Instruments – disclosure " and IAS 7 " "Statement of Cash Flows" which were implemented 1 January 2024.

The implementation of the changes has not had any significant effect on the consolidated financial statements.

The amendments to IFRS 16 specifiy the requirements that a sellerlessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. The amendments to IAS 1 clarify how covenants affect the classification of liabilities as current and non-current and the related disclosure requirements. The amendments specify that if the entity's right to defer settlement of a liability is subject to the entity complying with the required covenants only at a date subsequent to the reporting period ("future covenants") the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period.

The amendments also clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or a later date. An entity must provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants within twelve months. The disclosure must include information about the covenants and the related liabilities as well as any facts and circumstances that indicate the entity may have difficulty complying with the covenants. The amendments in IFRS 7 and IAS 7 concern new disclosure requirements regarding supplier finance arrangements. The requirements regard arrangements where the entity achieve deferred payment or that the supplier achieve pay in advance compared to the agreed terms and conditions between the entity and the supplier.

Preparing the interim financial statement involves assessments, estimates and assumptions that affect the use of accounting principles and posted amounts for assets and obligations, revenues and expenses. Actual results may deviate from these estimates. The key considerations in connection with the application of the Group's accounting principles and the major sources of uncertainty remain the same as when the 2023 consolidated financial statements was compiled.

4 Segment information

	Operating revenues				EBITDA				EBIT
		1.7 - 30.9	1.1 - 30.9		1.1 - 31.12		1.7 - 30.9		1.1 - 30.9	1.1 - 31.12		1.7 - 30.9		1.1 - 30.9	1.1 - 31.12
MNOK	2024	2023	2024	2023	2023	2024	2023	2024	2023	2023	2024	2023	2024	2023	2023
Kongsberg Maritime	6 487	4 990	17 870	14 592	20 180	1 240	762	2 989	1 930	2 601	1 112	615	2 594	1 515	2 053
Kongsberg Defence & Aerospace²	4 255	3 940	13 596	10 932	15 949	856	752	2 559	2 105	3 005	689	594	2 093	1 650	2 397
Kongsberg Discovery	1 122	924	3 186	2 768	3 913	194	160	502	472	646	167	149	424	407	556
Other 1) 2)	60	124	311	389	575	(44)	(47)	(168)	(142)	(215)	(101)	(88)	(334)	(245)	(407)
Group	11 924	9 978	34 963	28 681	40 617	2 246	1 626	5 881	4 364	6 037	1 868	1 270	4 778	3 327	4 600

1) Other activities consist of Kongsberg Digital, Kongsberg IT, property, corporate functions and eliminations. For information about Kongsberg Digital see separate section. 2) The EBITDA and EBIT for 2023 is restated due to Kongsberg IT from 2024 is reported as part of other.

Operating revenues YTD by division:

MNOK	2024	2023
Divisions
Global Customer Support	9997	8 577
Integration & Energy	1775	1 155
Propulsion & Handling	3797	2 953
Automation & Control	3 408	2 852
Other/elimination	(1107)	(945)
Kongsberg Martime	17 870	14 592

MNOK	2024	2023	MNOK	2024	2023	MNOK	2024	2023
Divisions			Divisions			Divisions
Global Customer Support	9 997	8 577	Defence Systems	7 740	6 018	Ocean Technologies	1 571	1 180
Integration & Energy	1 775	1 155	Missile & Space	4 449	3 558	Marine Life Technologies	476	526
Propulsion & Handling	3 797	2 953	Aerostructure & MRO	2 367	1 894	Uncrewed Platforms	683	603
Automation & Control	3 408	2 852	Other/eliminations	(960)	(538)	Seatex	552	498
Other/elimination	(1 107)	(945)	Kongsberg Defence & Aerospace 1)	13 596	10 932	Other/eliminations	(97)	(39)

MNOK	2024	2023	MNOK	2024	2023	MNOK	2024	2023
Divisions			Divisions			Divisions
Global Customer Support	9 997	8 577	Defence Systems	7 740	6 018	Ocean Technologies	1 571	1 180
Integration & Energy	1 775	1 155	Missile & Space	4 449	3 558	Marine Life Technologies	476	526
Propulsion & Handling	3 797	2 953	Aerostructure & MRO	2 367	1 894	Uncrewed Platforms	683	603
Automation & Control	3 408	2 852	Other/eliminations	(960)	(538)	Seatex	552	498
Other/elimination	(1 107)	(945)	Kongsberg Defence & Aerospace 1)	13 596	10 932	Other/eliminations	(97)	(39)
Kongsberg Martime	17 870	14 592				Kongsberg Discovery	3 186	2 768
			1) The 2023 figures are restated according to the new division structure in Kongsberg Defence & Aerospace.			Other/elimination	311	389

Total revenues	34 963	28 681

The table shows the anticipated date on which remaining performance obligations as of 30.9.2024 are recognised as income:

	2024				2023
		Date of revenue recognition			Date of revenue recognition
	Order backlog			Order backlog
MNOK	30.9.24	2024	2025	2026 and later	30.9.23	2023	2024	2025 and later
Kongsberg Martime	20 536	5 018	9 572	5 946	19 942	4 453	9 484	6 005
Kongsberg Defence & Aerospace	71 963	5 024	16 540	50 399	45 667	4 724	14 095	26 849
Kongsberg Discovery	3 002	1 099	1 458	445	2 732	1 049	1 157	528
Other/elimination	1 364	559	294	511	890	258	521	109
Total	96 865	11 700	27 864	57 301	69 233	10 486	25 257	33 491

5 Shares in joint arrangements and associated companies

Specification of movement in the balance sheet line "Shares in joint arrangements and associated companies" 1 January to 30 September

MNOK		Ownership Carrying amount 1.1	Additions/ disposals	Dividend received	Share of net income 1)	Other items and comprehensive income	Carrying amount 30.9	Share of net income 1.7-30.9
Patria Oyi	49,9 %	3 331	—	(159)	36	128	3 335	(12)
Kongsberg Satelite Services	50 %	855	—	(25)	119	—	950	43
Other shares		73	17	—	11	—	101	1
Total		4 259	17	(184)	166	128	4 386	32

1) The share of net income is included after tax and amortisation of excess value

Shares of net result from Patria:

	1.7. - 30.9		1.1. - 30.9	1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
KONGSBERG's share (49,9%) 1)	(9)	93	43	85	244
Amortisation of excess values after tax	(3)	(3)	(7)	(7)	(10)
Share of net income recognised in KDA for the period	(12)	90	36	79	233

1) ) Share of Patria's net income after tax adjusted for non-controlling interests and net income from KAMS. Share of net income from Patria is recognised as follows during the quarters: Q1: jan-Feb, Q2: Mar-May, Q3: Jun-Aug and Q4: Sep-Des.

Share of net income and dividend from associated companies per business

area:

	Share of net income					Dividend
	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12
MNOK	2024	2023	2024	2023	2023	2024	2023	2024	2023	2023
Kongsberg Maritime	—	—	(1)	(1)	(14)	—	—	—	—	—
Kongsberg Defence & Aerospace	32	147	165	215	406	25	—	184	170	170
Kongsberg Discovery	—	—	—	(35)	(35)	—		—	—	—
Other	—	1	2	1	1	—		—	—	—
Group	32	148	166	181	358	25	—	184	170	170

KONGSBERG has leases that are primarily related to land and buildings, as well as leases for machinery, vehicles and equipment.

Leasing assets and leasing liabilities recognised in the financial position:

	30.9.24	30.6.24	31.12.23
Leasing assets	1 998	1 889	1 668
Long-term leasing liabilities	1 794	1 690	1 457
Short-term leasing liabilites	430	422	433

IFRS 16 effects on condensed income

statement in the period:	1.7. - 30.9		1.1. - 30.9	1.1. - 31.12
	2024	2023	2024	2023	2023
Retured rental cost earlier included in EBITDA	160	163	466	454	613
Profit/Loss on disposed leases	—	—	3	1	1
Increased EBITDA in the period	161	163	469	455	614
Depreciation on leases	(123)	(130)	(360)	(365)	(493)
Increased EBIT in the period	38	33	109	90	121
Interest cost on leasing liabilities for the period	(39)	(36)	(110)	(103)	(136)
Reduced EBT in the period	(1)	(3)	(1)	(13)	(15)

IFRS 16-effects on condensed statement of financial position:

1 668
363
(55)
(119)
22
1 879
144
(2)
(118)
(14)
1 889
253
(35)
(123)
14
1 998

Loans and credit facilities

The group has three bond loans amounting to a total of MNOK 2 500 . The maturity dates of the long-term bond loans range from the 26th of February 2026 to the 31st of May 2030. In addition, the group has a syndicated credit facility of MNOK 2 500 and an overdraft credit facility of MNOK 1 500. Neither were utilized at the end of the quarter.

Interest-bearing loans:

			30.9.2024	31.12.2023
MNOK	Due date	Nominal interest rate	Value 1)	Value 1)
Long-term loans:
Bond issue KOG09 - fixed interest rate	2.6.26	3,20 %	1 000	1 000
Bond issue KOG14 - floating interest rate	26.2.26	5,56 %	500	500
Bond issue KOG15 - fixed interest rate 2)	31.5.30	4,85 %	1 000	1 000
Other long-term loans			—	—
Total long-term loans			2 500	2 500
Short-term loans:
Bond issue KOG13 - floating interst rate	6.6.24	5,90 %	—	500
Overdraft facility			—	—
Total short-term loans			—	500
Total interest-bearing loans			2 500	3 000
Syndicated credit facility (unutilised credit limit)	22.3.29		2 500	2 500
Overdraft facility (max credit limit)			1 500	1 500

1) Value is equal to nominal amount

2)Bond issue KOG 15 was entered into at a fixed rate of 4.85% p.a. KONGSBERG also entered into a floating rate swap agreement with 3M NIBOR + 1.36% p.a.

Forward exchange contracts

Fair value of balances classified as cash flow hedges, as shown in the condensed statement of comprehensive income, decreased by MNOK 223 before tax during the period 1 January – 30 September 2024. The fair value of unrealized forward exchange contracts increased by MNOK 91 during the period. The total change in net fair value of fair value hedges represented a decrease of MNOK 786 from the end of last year. The endof-quarter spot rates were USD/NOK 10.54, EUR/NOK 11.74 and GBP/NOK 14.15.

	Due in 2024		Due in 2025 or later		Total
MNOK	Value in NOK on agreed rates	Fair value at 30.9.24	Value in NOK on agreed rates	Fair value at 30.9.24	Value in NOK on agreed rates	Change in fair value from 31.12.23	Fair value at 30.9.24
USD	241	20	9 172	(283)	9 413	65	(263)
EUR	(6)	10	(3 367)	35	(3 373)	15	45
Other	7	13	(861)	10	(854)	10	22
Sum	241	43	4 945	(238)	5 185	91	(195)
Roll-over of currency futures		15		112		(222)	128
Total	241	59	4 945	(126)	5 185	(131)	(67)

Forward exchange contracts cash flow hedges, assets 346 Forward exchange contracts cash flow hedges, liabilities 541 Net forward exchange contracts cash flow hedges (195) Fair value is referring to the net present value of the variance between the forward rate as of 30.9.24 and the forward rate at the time of entering the forward exchange contract. The change in the fair value of cash flow hedges recognised in the statement of comprehensive income is MNOK -223, while the table above show a change in fair value of MNOK -131. The difference between these two amounts of MNOK -92 was ascribable to a change in fair value of crosscurrency swaps.

Forward exchange contracts classified as fair value hedges :	The net value of fair value hedges which are mainly
--------------------------------------------------------------	-----------------------------------------------------

	Due in 2024		Due in 2025 or later		Total
MNOK	Value in NOK on agreed rates	Fair value at 30.9.24	Value in NOK on agreed rates	Fair value at 30.9.24	Value in NOK on agreed rates	Change in fair value from 31.12.23	Fair value at 30.9.24
USD	1 305	(38)	4 402	(50)	5 706	(300)	(88)
EUR	1 501	(29)	14 057	(240)	15 559	(375)	(268)
GBP	172	(22)	(267)	(31)	(95)	(56)	(52)
Others	213	(31)	250	(30)	463	(55)	(61)
Total	3 190	(120)	18 442	(350)	21 632	(786)	(470)

recognized as derivates in the statement of financial position, offset against customer contracts, assets by MNOK 187 decrease and customer contracts, liabilities by MNOK -649 (decrease ).

Forward exchange contracts fair value hedges, assets	964
Forward exchange contracts fair value hedges, liabilities	1 434
Net forward exchange contracts fair value hedges	(470)

Specification of derivatives:

	30.9	30.6	31.12
MNOK	2 024	2024	2023
Forward exchange contracts, cash flow hedges (a)	346	247	238
Forward exchange contracts, fair value hedges (b)	964	1 144	1 617
Cross-currency swaps	10	—	32
Total derivatives, current assets	1 321	1 391	1 887
Forward exchange contracts, cash flow hedges ( c)	541	407	524
Forward exchange contracts, fair value hedges (d)	1 434	1 160	1 301
Cross-currency swaps	65	23	105
Total derivatives, current liabilities	2 041	1 590	1 929
Net forward exchange contracts, cash flow hedges (a) - ( c)	(195)	(159)	(286)
Net forward exchange contracts, fair value hedges (b) - (d)	(470)	(16)	316
Total net forward exchange contracts	(665)	(176)	30

8 Product developments

Product maintenance cost and development recognised int he income statement during the period:

	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
Product maintenance	135	134	432	410	569
Development cost	365	342	1 229	1 058	1 513
Total	500	477	1 661	1 467	2 082

In the consolidated statement of financial position at the end of the 3rd quarter the largest capitalised projects were related to the development of the digital platform Kognifai and associated applications, missile technology, medium-calibre weapon station (MCT and RWS), communication solutions and remote towers for airports.

Capitalised development recognised during the period:

	1.7. - 30.9		1.1. - 30.9		1.1. - 31.12
MNOK	2024	2023	2024	2023	2023
Capitalised development	98	96	262	276	340

9 Related parties

The Board is not aware of any changes or transactions in the 3rd quarter associated with related parties that in any significant way have an impact on the Group's financial position and profit for the period.

10 Important risk and uncertainty factors

KONGSBERG's risk management is decribed in the 2023annual report. No new risk and uncertainty factors emerged during this quarter.

The income tax expense per 3rd quarter was calculated to be 21.7 per cent of earnings before tax. The income tax expense was mainly affected by income from associates recognized after tax.

Alternative performance measures and definitions

KONGSBERG uses terms in the consolidated financial statements that are not anchored in the IFRS accounting standards. Our definitions and explanations of these terms follow below.

KONGSBERG considers EBITDA and EBITT to be normal accounting terms, but they are not included in the IFRS accounting standards. EBITDA is the abbreviation of "Earnings Before Interest, Taxes, Depreciation and Amortisation". KONGSBERG uses EBITDA in the income statement as a summation line for other accounting lines. These accounting lines are defined in our accounting principles, which are part of the 2023 financial statements. The same applies to EBIT.

Restructuring costs consist of salaries and social security tax upon termination of employment (such as severance and gratuity) in connection with workforce reductions. In addition to this are rent and other related costs and any one-off payments in the event of the premature termination of tenancy agreements for premises that are not in use.

Net interest-bearing debt is the net amount of the accounting lines "Cash and cash equivalents" and "Short- and long-term interestbearing liabilities".

Return on Average Capital Employed (ROACE) is defined as the 12-month rolling EBIT including share of net income from joint arrangements and associated companies, divided by the 12 month mean of recognised equity and net interest-bearing debt.

Net interest-bearing debt/EBITDA is defined as net interestbearing debt incl. leasing liabilities divided by 12-month rolling EBITDA.

Working capital is defined as current assets (except cash and cash equivalents) minus non-interest-bearing liabilities (except taxes payable). Financial instruments classified as cash flow hedges are not included in working capital.

Working capital is calculated as follows:

	30.9	30.6	31.12
MNOK	2024	2024	2023
Current assets	38 287	36 223	34 884
Current liabilities and provisions	(33 719)	(32 979)	(30 689)
Adjusted for:
Cash and cash equivalents	(7 126)	(5 938)	(5 975)
Unpaid dividend	1 231	1 276	—
Short-term interest-bearing loans	—	—	500
Short-term leasing liabilities	430	422	433
Net tax payable	716	611	393
Financial instruments classified as cash flow hedges	122	67	8
Working capital	(60)	(316)	(445)

Book/bill is order intake dividend by operating revenues.

Recurring revenues consist of revenues from Software as a Service, Software Leases and Software Maintenance & User Support.

Organic growth is change in operating revenues exclusive acquired companies.

Quarterly report 3rd quarter 2024 kongsberg.com

Disclaimer: In the event of any discrepancy between the Norwegian and the English version of KONGSBERG's quarterly report, the Norwegian version is the authoritative one.