Kongsberg Gruppen

Investor Presentation • Jul 15, 2020

INVESTOR PRESENTATION

Q2 2020

Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, EVP & CFO

DISCLAIMER

This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone" or other words of similar meaning and similar expressions or the negatives thereof.

By their nature, forward-looking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected.

Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by the Oslo Stock Exchange rules or applicable law, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based.

Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements

Highlights second quarter 2020

▪ Order intake of BNOK 6.07 with book/bill of 1,01

• BNOK 5.98 in revenue
• Solid profitability with EBITDA of MNOK 772 (12.9%)
• Cost focus and cost reduction initiatives
• Value capture and integration of CM on track
• Several important agreements
• Strategic acquisitions

Good order intake in a challenging period

RWS to the Canadian army MCT - 30 to the United States Real-time software service Marine Corps

Strong order intake from the F-35 program

Realised multiple cross sales opportunities Book bill above 1 in KM

Solid performance in all business areas

Maritime deliver good financial results, despite a challenging market

• Aftermarket impacted by COVID-19
• Cost initiatives and solid operations
• Market continues to be challenging with;
• low contracting of new vessels
• oil price
• intensified cost focus

Increased interest in our digital product portfolio

• Continue to gain momentum in energy segment
• Significant increased number of users on the Nyhamna Dynamic Digital Twin
• Complement the product offering through bolt-on acquisition

Defence continues to sign strategic contracts and delivers on operations

• Signed strategic agreements
• Increased footprint in MRO through bolton acquisition
• Good project execution
• Recruiting campaign

Acquisitions of COACH solutions and Patria Helicopters

COACH Solutions

• Entry-level vessel performance systems
• Increases installed based with ~600 vessels
• Complementary to KDI's product offering

Patria Helicopters

• Strengthens KDA's positions in the MRO segment and ability to support the NH-90 helicopters
• Transaction completed 1. July

COVID-19 Update

Our #1 priority remain: Safeguard our employees, deliver to our customers, and secure financial strength

Less strict travel restrictions and gradual "return to office" in certain regions

Continue to work with governments to promote value creating activities

Position KONGSBERG for "the new normal"

Cost focused and agile with regards to the market situation

Financial status

Gyrid Skalleberg Ingerø, CFO

KONGSBERG financial results

Stable revenues and solid profitability

Order backlog and order intake

Order intake continue to support a book/bill above 1 Stable order backlog throughout second quarter

(BNOK) (BNOK)

33.31 27.18 9.41 2022 → 33.34 32.93 32.35

Cashflow development

Cashflow impacted by changes in working capital and currency effects Comments

Cashflow development (BNOK)

• Positive impact from operations offset by changes in working capital
• Increase in working capital offset by reduced trade receivables
• CF from investments due to expansion of aerostructure factory and acquisition
• Dividends payment NOK 2.50 per share paid out in May

Q2 NWC

Net Working Capital by Business Area

WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 12 KONGSBERG PROPRIETARY - See Statement of Proprietary information

Kongsberg Maritime

Q2

Order intake down, while backlog remain stable

Decrease in revenue offset by good operating performance with in increased profit and margins

Value Capture program continued with strong progress

Key figures	Status per Q2
P&L effect of cost savings relative to 2018, MNOK		Realized savings of 160 MNOK in Q2 •
Quarterly effects	Annual effects	295 MNOK realized YTD; well positioned to •
160	500	reached target of 500 MNOK annual savings
135 90	205 Remaining	Deck Machinery restructuring progressing well •
83 72 15	260 295 Realized H1 '20	Optimization program in Propulsion & Engines • initiated
		Headcount reductions of ~485 FTEs •
Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20	Realized Target 2019 2020

KDA

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this legend. © 2018 KONGSBERG – All rights reserved.

Backlog remains strong

Revenue growth and strong operational performance

Outlook – solid operations, but continued uncertainty

KDA

Current backlog secure growth in 2020

Solid margins due to good project execution

Possible delays in certain programs due to COVID-19

KM

Good order backlog coverage and stable lifecycle business, although expected impacted from COVID-19

New build market expected to remain challenging

International trade development may further impact activity level

KDI

Increased interest and demand for KONGSBERG's digital solutions

Certain segments challenging due to COVID-19

Reduced investment levels among O&G companies may impact order intake

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INVESTOR PRESENTATION

Q&A

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this legend. © 2020 KONGSBERG – All rights reserved.

INVESTOR PRESENTATION

Appendix

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this legend. © 2020 KONGSBERG – All rights reserved.

Order intake distribution

Order intake KM Q2 2020:	MNOK 3 850
Order intake KM Q2 2019:	MNOK 4 917

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Order intake distribution

Order intake KDA Q2 2020: MNOK 1 788 Order intake KDA Q2 2019: MNOK 4 160

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WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY KONGSBERG PROPRIETARY - See Statement of Proprietary information - See Statement of Proprietary information

160 MNOK savings realized in Q2 2020

Realized cost savings

P&L effect of cost savings relative to 2018, MNOK

Area	Q1 '19	Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20	Comments to realized savings
Footprint & delivery streamlining	3	11	12	15	34	45	Effects of co-locations, production facility shutdowns and restructuring of delivery organizations
SG&A savings and synergies	9	52	58	60	81	93	Savings driven by more cost efficient set-up of support and sales functions, as well as harmonization of terms and benefits
Product portfolio optimization	4	8	13	15	20	22	Savings mainly related to streamlining of digital marine spending (Ship Intelligence)
Total	15	72	83	90	135	160	Ahead of schedule for FY20 savings target of 500 MNOK

Strong cash balance and positive development in ROACE

Net debt and cash development Positive development in ROACE due to strong performance

Average capital employed (BNOK) and ROACE (%)