Kongsberg Gruppen

Earnings Release • Jul 13, 2022

Revenue growth of 12 per cent and new orders worth 11 billion during the quarter

Revenue growth of 12 per cent and new orders worth 11 billion during the quarter

KONGSBERG increased its operating revenues by 12 per cent and grew all its business areas compared to the second quarter of last year. The EBITDA was just over NOK 1 billion and the order intake came to almost NOK 11 billion.

2nd quarter:

The order intake was MNOK 10,945 compared to MNOK 5,554 for Q2 2021 (+ 97 %)

The operating revenues were MNOK 7,567 compared to MNOK 6,762 for Q2 2021 (+ 12 %)

The EBITDA was MNOK 1,012 compared to MNOK 993 for Q2 2021

The EBITDA margin was 13.4% compared to 14.7% for Q2 2021

“KONGSBERG maintained its good progress and had strong growth in its order intake and operating revenues in the second quarter. The order backlog has increased to about NOK 54 billion. Kongsberg Maritime had a record-high order intake during the quarter and its operating revenues grew by 14%, while Kongsberg Defence & Aerospace increased its operating revenues by 10 per cent and produced an EBITDA margin of more than 20% despite continued delays in weapon station deliveries. Kongsberg Digital increased both its operating revenues and recurring operating revenues. All the business areas have grown and I’m very pleased with the quarter,” says Geir Håøy, President and CEO of KONGSBERG.

Strong order intake

Kongsberg Maritime (KM) had an order intake of NOK 6.6 billion, which is 57 per cent higher than in Q2 2021. There was strong order intake both from the after- market and for deliveries to new vessels. At the same time, there is also a very good order intake from the Sensors & Robotics area, among other things linked to the Hugin family of autonomous subsea vessels.

The order intake of Kongsberg Defence & Aerospace (KDA) came to NOK 4.1 billion, equal to a book-to-bill ratio of 1.52. A new significant contract for deliveries to the F-35 programme and a start-up order for deliveries of the Naval Strike Missile (NSM) to Australia were just two of the agreements entered into during the quarter.

Kongsberg Digital (KDI) continued to sign up new customers for its digital solutions, and the number of both customers and installations in operation increased. This included a contract for the delivery of a further four digital twins to one of the world’s largest oil and energy companies, as well as a contract with Mediterranean Shipping Company for the digitalisation of almost 500 vessels.

In total, the Group’s order backlog increased by NOK 3.9 billion during the quarter and now stands at NOK almost 54 billion.

Vigilance and continual measures

The world is currently experiencing increasing inflation, logistics difficulties and component shortages. This also affects KONGSBERG both directly and indirectly.

“KONGSBERG’s deliveries consist to a large extent of systems and products composed of a considerable number of components. Even with the beforementioned delays linked to remote weapon stations, we feel we have a generally good overview of the component situation. We are also affected by high inflation. This requires an extra level of vigilance, and we are continually implementing measures to neutralise any negative consequences. For some of our order backlog, we have inflation adjustment clauses in the contracts. The part of the order backlog that does not have such clauses mainly consists of contracts with a shorter delivery horizon or where the cost picture is tied to subcontractors,” says Håøy.

Solid foundation for continued growth

“The current turbulent state of the world leads to more unpredictability in the short term than we have had for the past few years. At the same time, we have a solid foundation and a record-high order backlog. Our positions in both established and new markets have never been stronger. This makes me confident that KONGSBERG will grasp new opportunities and while also dealing with the external challenges. In total, we expect our operating revenues to continue to grow and we are on schedule to achieve our ambitions for 2022,” concludes Håøy.

FOR MORE INFORMATION CONTACT:

Ronny Lie

Chief Communication Officer

Kongsberg Gruppen ASA

(+47) 91 61 07 98

ronny.lie@kog.kongsberg.com

kongsberg.com

Jan Erik Hoff

Group Vice President Investor Relations

Kongsberg Gruppen ASA

(+47) 99 11 19 16

jan.erik.hoff@kog.kongsberg.com

kongsberg.com

KONGSBERG (OSE-ticker: KOG) is a leading global technology corporation delivering mission-critical systems and solutions with extreme performance for customers that operate under extremely challenging conditions. We work with nations, businesses and research environments to push the boundaries of technology development in industries such as space, offshore and energy, merchant marine, defence and aerospace, and more. KONGSBERG has over 11,000 employees located in more than 40 countries, creating a total revenue of NOK 27.5bn in 2021.

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