Kongsberg Gruppen

Regulatory Filings • Dec 4, 2023

KONGSBERG awarded framework agreement for the maintenance of Norwegian frigates worth up to NOK 17 billion

KONGSBERG awarded framework agreement for the maintenance of Norwegian frigates worth up to NOK 17 billion

Kongsberg Naval Services (KONGSBERG), a company owned by Kongsberg Maritime and Kongsberg Defense & Aerospace, has been awarded a strategic framework agreement with the Norwegian Defense Material Agency for operational support, maintenance and life-extending services on Norway's frigates. The agreement has a total value of up to NOK 17 billion for services delivered over the lifetime of the agreement - assumed to be up to 2040.

KONGSBERG has been selected as the main supplier for carrying out management and ship technical maintenance, modifications and life-extending activities on Norway’s Fridtjof Nansen-class frigates.

“Together with our strong Norwegian suppliers, we can offer efficient and sustainable maintenance services to strengthen the Armed Forces' operational capability and preparedness, and at the same time provide support to Norway’s allied forces,” said Geir Håøy, President and CEO of Kongsberg Gruppen.

KONGSBERG will coordinate activities with partners through integrated and long-term cooperation with the Norwegian Armed Forces and the Norwegian Defense Material Agency. The company has formed a constellation consisting of the shipyards Westcon Yards and Coast Center Base (CCB), as well as WilNor Governmental Services (WGS) and Wilhelmsen Ship Management (WSM). KONGSBERG also has a cooperation agreement with Navantia to ensure support services from the shipyard that originally built the ships.

“Maritime industry, defense technology and digitization are KONGSBERG's main pillars. In this framework agreement with the Norwegian Armed Forces, these are united to optimize operations and increase technical availability for the Norwegian frigates throughout their lifetime, while at the same time facilitating predictable operating and maintenance costs,” said Håøy.

Kongsberg Naval Services (KNS) has been established for the purpose of delivering maintenance services as described in the contract with the Norwegian Defense Material Agency (NDMA). The company is owned 50 percent each by Kongsberg Maritime and Kongsberg Defense & Aerospace. The contract between NDMA and KNS is expected to be signed later in December 2023.

This release contains inside information related to Kongsberg Gruppen ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This release is issued by Renate Tegdal, Investor Relations, Kongsberg Gruppen ASA. Date and time of publication: 08:30 CET, 12/04/2023.

Kongsberg (OSE-ticker: KOG) is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the energy, merchant, navy and defence and aerospace industries. Kongsberg has more than 13,000 employees in 39 countries and had total revenues of NOK 31.8bn in 2022.

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