Kongsberg Gruppen

Investor Presentation • May 8, 2020

INVESTOR PRESENTATION

Q1 2020

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

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.

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

Key priorities COVID-19

SAFEGUARD HEALTH AND SAFETY DELIVER AND SUPPORT CUSTOMERS SECURE FINANCIAL STRENGHT

COVID-19 measures

Despite challenges related to COVID-19, Kongsberg deliver another strong quarter

KONGSBERG

GROUP

• Growth in all business areas
• Continued high order backlog
• Strong cashflow

DEFENCE

• Crows, US Army
• NSM, US Navy (OTH program)
• ~56% increased order intake compared to Q1 2019
• Order backlog of ~BNOK 20

MARITIME

• Completed Hydroid transaction
• Solid order intake and revenue synergies
• On track with "value capture" program

Order intake Revenue EBITDA EBITDA margin 6 812 6 678 643 9.6%

DIGITAL

• Increased revenue and stable order intake
• Increased interest for KONGSBERG's digital solutions

Financial status

Gyrid Skalleberg Ingerø, CFO

KONGSBERG financial results

BNOK

Financial highlights

• Order intake ~86% higher in Q1 2020 compared to Q1 2019 (~21 % including CM pro forma order intake in Q1 2019)
• Book-to-bill of 1.02 in Q1 2020
• Revenue increased ~93% in from Q1 2019 to Q1 2020 (~25% including CM pro forma revenue in Q1 2019)
• ~69% growth in EBITDA (~85% including CM pro forma EBITDA in Q1 2019)
• ~44% growth in EBIT (~155% including CM pro forma EBIT in Q1 2019)

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

1) EBITDA margin including pro forma CM Q1 19 equals 6.5% 2) EBIT margin including pro forma CM Q1 19 equals 2.2%

Continued high order backlog with a larger share of long term projects

Q2 19 6.74 Q1 19 Q1 20 16.79 Q3 19 Q4 19 33.34 99% Order backlog continue to grow Increased share of long term projects 15% 53% 32% Q1 2019¹ 16.79 2020 2019 rest 2021 → CM proforma Order backlog development (BNOK) Distribution of order backlog 2022 → 42% 33.34 31% 27% Q1 2020 2020 rest 2021

High positive cash flow from operations supported by proceeds from Hydroid sale

Successful closing of Hydroid transaction

Q4 NWC

Net Working Capital by Business Area

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

Strong cash balance and positive development in ROACE

Net debt and cash development Development in ROACE explained by capital employed

Average capital employed (BNOK) and ROACE (%)

Kongsberg Maritime

Q1

KM order intake and backlog

1) pro forma CM not included in order backlog distribution in Q1 19

Order intake distribution

Order intake KM Q1 2020: MNOK 4 813

Order intake KM Q1 2019: MNOK 2 306

Order intake included CM pro forma Q1 2019: MNOK 4 279

Order intake + 109% YoY/+12% YoY including CM Q1 19 pro forma

15

High revenue growth supported by growth in EBITDA and EBIT

Value Capture program on track

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

Key figures Status per Q1

• Value Capture program continues with undiminished effort (important contributor to COVID-19 effect mitigation)
• Realized savings of ~135 MNOK in Q1 yields confidence to 500 MNOK FY target
• Broad range of ongoing activities
• Deck Machinery restructuring
• finalization of Ship Design restructuring
• harmonization of automation and electro product portfolio
• Headcount reductions progressing according to plan

135 MNOK savings realized in Q1 2020

Area Q2 '19 Footprint & delivery streamlining SG&A savings and synergies Product portfolio optimization 11 52 8 Total 72 Comments to realized savings Effects of co-locations, production facility shutdowns and optimization of delivery organizations Savings driven by more cost efficient set-up of support and sales functions, as well as harmonization of terms and benefits Savings mainly related to streamlining of digital marine spending (Ship Intelligence) Well on track for FY20 savings target of 500 MNOK Q1 '20 34 81 20 135 Q1 '19 3 9 4 15 Q4 '19 15 60 15 90 Q1 2020 effects Realized cost savings P&L effect of cost savings relative to 2018, MNOK Q 3 '19 12 58 13 83

Integration and restructuring costs

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.

Stronger order intake supported by increased share of long term projects

Order intake distribution

Order intake KDA Q1 2020: MNOK 1 769 Order intake KDA Q1 2019: MNOK 1 137

22

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

Double digit revenue, EBITDA and EBIT growth

Business update

Geir Håøy, President & CEO

BUSINESS UPDATE KONGSBERG MARITIME

Hydroid sale and new strategic alliance

• Completed sale of Hydroid Inc. to Huntington Ingalls Industries (HII) for USD 350 million

• Good progression regarding the strategic alliance with HII

• Mystic Cruises ~300 MNOK

• Large scope contract for 3 + 1 expeditions vessels
• Highly solution-oriented attitude among customers and suppliers to adjust to the COVID situation

Impact and respond to COVID-19

• Ensure safety, liquidity and keep the operation going
• Adjust capacity and cost through various initiatives
• Increased use of remote services and KONGSBERG's digital solutions

BUSINESS UPDATE KONGSBERG DEFENCE & AEROSPACE

Strong order intake	Call-off on frame work agreements; • NSM US Navy "Over The Horizon" • Crows to US Army • C-UAS to Germany
Progression on ongoing campaigns	• Norway/Germany submarine cooperation • NSM Germany • Progress on ongoing campaigns despite COVID-19
COVID-19	• Ensure safety, liquidity and keep the operation going • Proactively work with various industrial and governmental bodies to accelerate new initiatives and planned investments
Patria	• ~12% revenue growth compared to Q1 2019, driven by acquisition of Belgium Engine Centre • Patria deliver MEUR 9 in EBITDA in Q1 20, up from MEUR 5.4 Q1 19, driven by ongoing cost initiatives • Patria 6x6 vehicle platform selected for Finnish-Latvian-Estonia development program

Business update Kongsberg Digital

Growing revenue and stable order intake

Increasing interest for digital products and solutions in light of COVID-19 situation

Extensive digital marketing campaigns and webinars

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MNOK

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

Outlook – high uncertainty related to COVID-19

KDA

Current backlog will continue funds growth in 2020

Possible delays in certain programs due to COVID-19

Continued progress on ongoing campaigns

KM

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

Segments within new build market expected to remain challenging

Low oil price expected to impact certain segment in the after market

KDI

Increased interest and demand for KONGSBERG's digital solutions

Certain segments challenging due to COVID-19

Accelerate on positions related to Vessel Insight and our Dynamic Digital Twin, Kognitwin

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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. © 2018 KONGSBERG – All rights reserved.

Appendix

Cash, net debt and bond maturity profile

Net debt and cash development Bond maturity profile

Cash and net debt (BNOK) Outstanding bonds (BNOK)