Kongsberg Gruppen

Annual Report • Mar 25, 2025

Content

Chapter 1		Chapter 4
Year 2024	4 Key Figures 2024 6 CEO Geir Håøy	Financial Statements	109 Financial Statements and Notes 2024 191 Statement from the Board and the CEO 192 Auditor's Report 2024
Chapter 2
About KONGSBERG	8 This is KONGSBERG	Appendix	195 ESRS Disclosure Requirements
	9 Vision and Purpose		198 Auditor's Assurance Report Sustainability
	10 Our Values		200 Financial Calendar / Contact Details
	11 The Board
	12 The Corporate Executive Management
	13 Strategy and Ambitions
	15 Risk and Risk Management
	16 Financial Performance
	18 The KONGSBERG Share and Shareholder Relationships
	19 Outlook
	20 Business Areas
Chapter 3
Sustainability Statement	41 General Information

Environment Social Governance

Chapter 1

Year 2024

4 Key Figures 2024

6 CEO Geir Håøy

Year 2024 / Key Figures 2024

Key Figures 2024

	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Sales
Operating revenues	48,872	40,617	31,803	27,449	25,612	23,245	13,807	14,490	15,845	17,032
Order intake	87,809	65,401	45,150	40,979	28,818	31,413	15,879	13,430	14,319	15,238
Order backlog	127,893	88,550	63,256	49,535	35,947	32,347	16,707	15,629	16,914	19,597
Book-to-bill ratio	1.80	1.61	1.42	1.49	1.12	1.35	1.15	0.90	0.90	0.90
Performance
EBITDA1)	8,028	6,037	4,602	4,086	3,250	2,113	1,126	1,092	988	1,697
Earnings before interest and taxes (EBIT)1)	6,507	4,600	3,309	2,862	1,905	1,029	701	585	462	857
Earnings before taxes (EBT)	6,584	4,675	3,497	2,922	1,855	833	780	654	729	944
Earnings after tax	5,144	3,715	2,809	2,290	2,932	717	704	559	651	755
Profitability
EBITDA %	16.4%	14.9%	14.5%	14.9%	12.7%	9.1%	8.2%	7.5%	6.2%	10.0%
EBIT %	13.3%	11.3%	10.4%	10.4%	7.4%	4.4%	5.1%	4.0%	2.9%	5.0%
Balance
Equity	19,269	16,465	13,744	13,618	13,301	12,810	12,626	7,365	6,725	6,127
Equity ratio %	27.8%	30.9%	31.8%	34.6%	33.9%	32.8%	45.7%	35.6%	31.7%	32.0%
Net interest-bearing debt	-9,604	-1,085	466	-5,668	-3,949	-1,565	-5,706	384	2,195	-941
Working kapital1)	-7,241	-445	565	-2,003	-458	17	-14	955	2,533	2,698
Roace1)	46.8%	30.3%	33.9%	32.7%	20.8%	10.0%	12.5%	9.1%	8.2%	21.8%
Employees
Number of employees	14,629	13,341	12,187	11,122	10,689	10,893	6,842	6,830	7,159	7,688
Number of reported injuries per million hours worked (TRI)	2.2	1.9	2.0	2.2	1.7	2.3	1.6	3.2	3.5	4.1
Number of lost time days per million hours worked (ISR)	19.1	14.3	12.7	30.0	21.2	31.4	17.6	16.2	32.0	14.2
The environment
Energy consumption (GWh)	183.6	174.4	170.0	170.7	149.9	159.6	131.2	124.4	122.8	119.4
CO2 emissions (metric tonnes)	23,544	29,979	52,063	55,503	52,110	56,229	11,120	10,735	10,901	11,037
Total waste (metric tonnes)	6,597	6,370	5,801	4,586	7,420	7,830	1,888	1,884	1,986	2,368
Owners' value
Market capitalisation	225,180	81,874	73,691	51,146	31,714	24,839	21,167	18,120	14,940	17,400
Earnings per share after tax (EPS) in NOK	29.14	21.08	15.64	12.06	16.08	3.89	5.58	4.62	5.44	6.23
P/E in NOK	43.93	22.08	26.57	23.71	10.82	34.64	30.20	32.70	22.95	23.05
Dividend per share in NOK	22.00	14.00	12.00	15.30	8.00	12.50	2.50	3.75	3.75	4.25

1. For definitions see note 29..

2. Financial figures, order intake, and order backlog for 2018 and 2019 have been adjusted for divested operations. Corresponding figures for previous years have not been adjusted.

4

Year 2024 / Key Figures 2024

6

Year 2024 / CEO Geir Håøy

Geir Håøy, President & CEO

Ambitious Goals for a Safer and More Sustainable Future

2024 has been another strong year for KONGSBERG. We have set new records for order intake, revenue, and operating profit. At the same time, it has been a year marked by significant global challenges. I have never in my career, experienced a more solid and long-term demand for KONGSBERG's technological solutions than what we see today. In 2024, we raised the bar, and set even higher expectations for the future. Over the next decade, we aim to triple our revenue. It is ambitious, but I am confident that we will succeed.

Across the globe, nearly half of the world's population cast their votes in national elections in 2024, shaping new political landscapes. We are in the third year of an ongoing war in Ukraine, we have seen escalating tensions between world powers, and experienced the far-reaching consequences of conflicts in the Middle East. In addition to the geopolitical complexity, the impact of climate change has also become even more evident. 2024 has been recorded as the warmest year in modern history, marked by floods, storms, and droughts that have caused loss of life, devastation, and economic consequences in several parts of the world.

At KONGSBERG, we understand the importance of addressing the two major challenges the world faces: security and sustainability. Our technological solutions are uniquely positioned to meet the needs for enhanced defence capabilities and the urgent need for sustainable solutions. In 2024, our advanced defence systems have contributed to strengthening national security in several countries. Our innovative maritime technology continued to play a crucial role in the transition to zero emissions in the ocean and energy industries. This reflects a simple truth: what we do matters.

2024 has been another record year for KONGSBERG. We have brought new talents on board and increased the number of employees to over 14,600. The mix of solid experience with new perspectives continues to strengthen our ability to innovate and deliver solutions that meet the world's needs. Our success is built on decades of dedication, continuous innovation, and a strong commitment to quality. Our mission has always been the same - to help create a better future by designing innovative systems and solutions to meet global challenges.

Looking ahead, we see increased demand across all our markets. The long-term need for stronger national defence capabilities and sustainable solutions presents us with significant opportunities in the time to come.

At the end of 2024, our order backlog has reached an all-time high of NOK 128 billion. This is a testament to the trust we have in our markets. At the same time, we view the commitment we have made to our customers with great humility and respect. Whether it concerns increased security, better energy efficiency, reduced greenhouse gas emissions, monitoring of operations, or the environment. Our order backlog is proof that we are helping to solve critical challenges.

The sustainability reporting for 2024 marks the transition from voluntary reporting following the GRI standard to the more comprehensive and mandatory ESRS standard. This transition contributes to improve reporting quality and increase transparency on sustainability. With standardised reporting, sustainability data becomes more precise and comparable across companies.

KONGSBERG is uniquely positioned to address the important trends that continue to shape the future. Facing upcoming opportunities and challenges, we remain steadfast in our goal: to protect people and the planet.

I extend my sincere gratitude to all my colleagues for their dedication and contributions. I also wish to thank customers, suppliers, owners, and other key partners for their support in making 2024 a remarkable year for KONGSBERG. Together, we are forging a future that is both secure and more sustainable.

Our mission has always been the same - to help create a better future by designing innovative systems and solutions to meet global challenges.

Geir Håøy President and Chief Executive Officer

Kongsberg Gruppen ASA

Chapter 2

About KONGSBERG

8	This is KONGSBERG
9	Vision and Purpose
10	Our Values
11	The Board
12	The Corporate Executive Management
13	Strategy and Ambitions
15	Risk and Risk Management
16	Financial Performance
18	The KONGSBERG Share and Shareholder Relationships
19	Outlook

Business Areas

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About KONGSBERG / This is KONGSBERG

This is KONGSBERG

KONGSBERG is an international technology group that delivers advanced, sustainable and reliable solutions that contribute to safety and efficiency in complex operations under extreme conditions. KONGSBERG collaborates with global players in the defence, energy, maritime, fisheries and aerospace industries.

Kongsberg Maritime is a leading technology partner for the maritime industry. From advanced offshore vessels to cruise ships, and from fishing vessels to complex marine vessels, we strengthen the entire maritime industry with cutting-edge technology and solutions. 2024 shows that we are on the right track. Together with customers and research partners, we solve technology challenges in new markets and make smart improvements to existing fleets and offshore installations. Customers include shipping companies and shipyards operating within the various maritime segments. During the reporting period, the company sold its steering and rudder business to Norvestor, with completion expected in early 2025.

Kongsberg Defence & Aerospace's solutions protect people and critical infrastructure in countries around the world. Our defence systems in air defence, surveillance, tactical communications, weapons stations and missiles are at the forefront of development, helping to strengthen countries' ability to defend themselves against external threats. We are a growing player in space exploration, where we deliver microsatellites and solutions for maritime surveillance. Key customers include governments, defence organisations and militaries in Europe, the United States and NATO countries, along with commercial aviation customers.

Kongsberg Discovery develops technology to ensure sustainable management of ocean resources, monitor climate change and critical infrastructure, and safeguard national security. The technology and solutions are aimed at areas such as offshore operations, fisheries, ocean research, maritime operations, sea-based energy production, as well as naval defence and the navy. Products include sonars, underwater communication equipment, positioning systems and autonomous vehicles. Customers include businesses within offshore operations, fisheries, marine research, maritime operations, offshore energy production and the navy.

Kongsberg Digital is an industrial software company that optimises the way companies develop, operate and maintain their installations and assets. Our technology contributes to safer, smarter and more sustainable industries by making industrial data accessible and contextualized, primarily within the energy, maritime and renewable industries. Customers include companies operating in process industries, such as oil and gas and renewable energy. After the reporting period, it was announced that the maritime business of Kongsberg Digital had been sold to Kongsberg Maritime and will be transferred during 2025.

About KONGSBERG / Vision and Purpose

Vision and Purpose

We have a strong, value-based culture that drives the performance of our organisation. Our shared vision defines our direction and what we aim to achieve. Our purpose is to protect people and planet by innovating technology today for a better tomorrow, in collaboration with companies and nations.

OUR VISION

WORLD CLASS – through people, technology and dedication

OUR PURPOSE

To protect people and planet by innovating technology today, for a better tomorrow with sustainable solutions for the ocean space, the protection of natural resources and national security - together with companies and nations.

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About KONGSBERG / Our Values

Our Values

Our values describe KONGSBERG's identity and how our organisation and we as individuals conduct. At KONGSBERG, values are regarded as an integral part of the business operations, and we expect all employees to live up to the prevailing standards.

→ Determined What we start, we finish. We don't give in.

We are known for our drive and persistence. We work hard to support our customers' missions and to meet stakeholder's expectations. We set ambitious goals where our purpose is to make a difference for people and the planet.

→ Innovative We relentlessly pursue improvements, new ideas and new solutions.

We have been an industrial pioneer for more than 200 years. On our journey we have always pursued improvements and redefined the standards of excellence in everything we do. We are dynamic by heart and being curious lies in our very core. We constantly strive to create value for our customers, shareholders and the society at large by pushing boundaries of what is possible.

→ Collaborative We collaborate as individuals and as an organisation.

Our collaborative and inclusive behaviour is fundamental to our business. We work closely with our customers and share knowledge with our colleagues, suppliers and partners across the globe - to the benefit of our customers and our own competitiveness. Our people are our most valued asset, and we pride ourself to attract and develop world class employees. We are ONE KONGSBERG, making the impossible possible by performing together.

→ Reliable We are reliable people. We are responsible citizens.

Our customers and partners can trust us to deliver always. We are an organisation characterised by our corporate responsibility, integrity, and concern for health, safety and the environment. We are a part of the solution - proudly creating products for a safer and more sustainable future.

About KONGSBERG / The Board

The Board

Eivind Reiten Chair of the Board

Per A. Sørlie Deputy of the Board

Kristin Færøvik Member of the Board

Merete Hverven Member of the Board

Morten Henriksen Member of the Board

Kjersti Rød Employee-elected member of the Board

Rune Fanøy Employee-elected member of the Board

Oda Ellingsen Employee-elected member of the Board

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About KONGSBERG / The Corporate Executive Management

The Corporate Executive Management

Geir Håøy President and CEO

Mette Toft Bjørgen Group EVP and CFO

Even Aas Group EVP Public Affairs & Communication

Iver Christian Olerud Group EVP Corporate Development

Christian Karde Group EVP General Counsel and Chief of Staff

Lisa Edvardsen Haugan EVP KONGSBERG and President Kongsberg Maritime

Eirik Lie EVP KONGSBERG and President Kongsberg Defence & Aerospace

Martin Wien Fjell EVP KONGSBERG and President Kongsberg Discovery

About KONGSBERG / Strategy and Ambitions

Strategy and Ambitions

KONGSBERG's strategic ambition is to be a group of leading technology companies, delivering advanced technology solutions to solve critical challenges for our customers that enhance and support the security and safety. We will contribute to a safer and more sustainable future.

As a Group, we are very well positioned, operating in markets that are being strongly driven by the mega-trends of sustainability and security and where the delivery of innovative and improved technological solutions will be important for success. We see huge potential to grow and expand within our core markets.

Geo-political instability and conflict, an escalating environmental and resource emergency, increased societal fragility and economic uncertainty, and the adoption of new technologies are all impacting the way we do business and how we prioritise. Against this backdrop, we will constantly review and adapt our strategy, structure and actions. We will seek to meet our customers' needs, manage our own risks, and seek the most valuable opportunities for KONGSBERG.

In all that we do, we have a clear ambition to deliver consistent and lasting value for our shareholders and for all our stakeholders. Over the long-term, we believe that the greatest shareholder value will be created by considering and acting on the opportunities and risks, viewed from a social development, environmental and economic perspective, and by engaging with all our stakeholders in an open and transparent manner in line with our purpose "to protect people and planet by innovating technology today, for a better tomorrow".

We will achieve this by realising our ambitions within five focus areas:

Technology leadership

We have a core foundation of knowledge, systems, partnerships and suppliers, built up over many years. Together with our people and culture, this forms the backbone of how and why we can deliver competitive solutions to our customers. At the heart of our strategy, we want to be a leader for developing, applying, delivering and supporting technology to our customers. We understand that sustainability, security, safety and efficiency are all essential factors in product and technology development, and we will keep developing our deep domain knowledge in new and existing areas and keep applying state-of-the-art technologies to deliver the most advanced, sustainable and competitive solutions to our customers.

Customer-first mindset

We are committed to addressing our customers' most complex problems and we aim to be their preferred partner in finding the smartest and most sustainable solutions. Our leading positions are a result of the deep domain competence we have built up over many years and of the long-standing relationships we have with our customers, built on trust and a constant commitment to putting the customer first. We shall be present where it is relevant for our customers and, together with our strategic partners, we shall deliver the sought-after leading edge and integrated solutions.

Active portfolio management

A thriving workplace

employees to perform at their best.

principles and our strategic focus on sustainability and security.

First and foremost, we shall pursue growth in our core markets, where we have strong market positions and attractive market fundamentals as well as selectively in new and adjacent ones and will look for opportunities where we can leverage off our deep domain knowledge and technological competencies across the Group, to create consistent and long-term value. We will prioritise organic growth, but we will also consider inorganic opportunities, where the strategic rationale is compelling.

At KONGSBERG, we value our people as our most important resource. We shall have a skilled, dedicated, and diverse workforce and a safe and thriving culture that encourages and facilitates for agility and collaboration and allows for our

Sustainable change and operational excellence

Our business areas provide vital solutions to our customers in the defence, space, energy, maritime and ocean-related sectors and we have built up leading positions in specific niches and sectors within our chosen core markets. We shall seek to create value and have solid domain competence in each of these segments. We will continually assess the growth opportunities and competitive positions of our segments, and we will manage and adapt our portfolio in accordance with our value creation Our activities and processes are guided by core beliefs of sustainable change and operational excellence, with the aim of achieving long-term sustainable improvements that create value. We shall move the company in a sustainable direction and have a focus on green and sustainable improvements that create lasting value for our customers, suppliers and society as a whole.

Our values to be "Determined", "Innovative", "Collaborative" and "Reliable" will continue to underpin and guide the way we act. At all times, we shall also seek to navigate KONGSBERG in the best possible way through a rapidly shifting external landscape.

About KONGSBERG / Risk and Risk Management

Risk and Risk Management

At KONGSBERG, effective risk management is an integral part of our daily operations and an important tool for ensuring the long-term achievement of our ambitions. We continuously work to identify and minimise potential threats while actively seeking opportunities to enhance our competitiveness. KONGSBERG has a holistic approach to risk and risk management, utilising systems and processes to ensure effective, proactive, and consistent risk management across the Group. By following a systematic approach to risk identification, assessment, management, and monitoring, we continuously adapt to changes that may affect us as a company.

KONGSBERG see risk management as an opportunity to promote innovation and improvement. By identifying and analysing risks, we also uncover new opportunities for growth and development. This enables us to be more flexible and adaptable to changes in the market, geopolitical shifts, and technological advancements. We believe that effective risk management not only protects us from potential threats but also provides us a competitive edge.

The Board of Directors follows up on risk through quarterly risk reporting, built up from the business areas and ensures transparency and consistent reporting across the group.

Management of the operational portfolio is carried out through effective project management and continuous monitoring of the projects. As part of this, training and further development of project management are provided in the various business areas. This ensures continuous improvement and efficiency with the goal of strengthening future competitiveness and efficiency improvements.

KONGSBERG is in a phase of significant growth, and its important to secure delivery commitments through active management of the supply chain, expansion of production capacity, streamlining processes, and securing access to competence. We have invested significantly in increased production capacity and is conducting active recruitment campaigns towards universities and professional communities to ensure access to necessary expertise.

KONGSBERG operates in a global market with world leading technical systems and solutions and is active within the markets and environments in which we operate. It is important for us to have clear processes for managing risks and when to use various tools as the environments around us change. Inherent in these risks is that we may not necessarily be able to directly influence them, but we have an active focus on how they affect us and how we should act as the environments change.

Our deliveries mainly support customers in the maritime market and the defence market. Market risk will naturally vary between these different segments. Large international presence and global dependence make the group vulnerable to factors affecting international trade, security, geopolitical changes, currency, and the global economy in general. KONGSBERG is exposed to financial uncertainty through currency risk, interest rate risk, credit risk, and liquidity risk. KONGSBERG's financial risk is managed centrally according to the guidelines in the

group's financial policy. The Group's financial risk management is described in note 4 to the annual accounts, "Management of capital and financial risk."

To ensure continued growth and seize opportunities, KONGSBERG closely follow up on strategic initiatives in our risk management. The strategic risks are linked to the success of our future ambitions, and we manage these risks by monitoring the strategic initiatives in nearby short-term milestones to secure and succeed with the long-term ambitions.

KONGSBERG is exposed to climate-related financial risk and works systematically to identify risks and opportunities related to climate change and the transition to a low-emission society. For further details, see chapter 3 "Sustainability Report" and note 4 to the annual accounts.

KONGSBERG sees risk management as an opportunity to promote innovation and improvement.

About KONGSBERG / Financial Performance

Financial Performance

KONGSBERG delivered a solid increase in both operating revenues and profitability, achieving an order intake of nearly NOK 90 billion in 2024. This positions the Group to enter 2025 with an order backlog of NOK 128 billion, which is 44 per cent higher than it was one year ago. The world is facing key challenges related to climate and security, and the geopolitical situation is constantly changing. KONGSBERG is well-positioned to address many of these challenges. This, in addition to a strong order backlog and a solid financial position, provides a good foundation for continued growth in 2025.

KONGSBERG is a publicly traded company headquartered in Kongsberg, Norway. The Group had four business areas in 2024: Kongsberg Maritime, Kongsberg Defence & Aerospace, Kongsberg Discovery and Kongsberg Digital. The Group is administrated through its parent company Kongsberg Gruppen ASA.

The Group's order backlog increased from MNOK 88,550 at the end of 2023 to MNOK 127,893 at the end of 2024. Kongsberg Maritime's order backlog grew by MNOK 3,703, Kongsberg Defence & Aerospace's by MNOK 35,249, Kongsberg Discovery's by MNOK 121 and Kongsberg Digital's order backlog was reduced by MNOK 81 through the year. In total, the Group's order intake came in at MNOK 87,809, up from MNOK 65,401 in 2023. The book/bill was 1.80.

Operating revenues

The Group's operating revenues were MNOK 48,872 in 2024, an increase of 20 per cent from MNOK 40,617 in 2023. Kongsberg Maritime had operating revenues of MNOK 24,766, Kongsberg Defence & Aerospace had operating revenues of MNOK 19,123, Kongsberg Discovery had operating revenues of MNOK 4,427 and Kongsberg Digital had operating revenues of MNOK K 1,735.

EBIT-development

EBIT was MNOK 6,507 in 2024 with an EBIT-margin of 13.3 per cent, compared to MNOK 4,600 with an EBIT-margin of 11.3 per cent in 2023. All the business areas increased the EBIT compared to last year. Advantageous project mix, volume effects and efficient project execution contributed to the increased margin. The EBIT in Kongsberg Maritime increased from MNOK 2,053 to MNOK 3,354 from 2023 to 2024, while the EBIT in Kongsberg Defence & Aerospace increased from MNOK 2,397 to MNOK 2,903. The EBIT in Kongsberg Discovery increased from MNOK 556 to MNOK 653 in 2024, while Kongsberg Digital increased the EBIT from MNOK (479) to MNOK (332) in 2024.

Performance

Earnings before tax was MNOK 6,584, compared to MNOK 4,675 in 2023. Earnings after tax was MNOK 5,144, corresponding to NOK 29.14 per share in 2024, compared to MNOK 3,715 corresponding to NOK 21.08 per share in 2023. Return on average capital employed (ROACE) was 46.8 per cent in 2024 compared to 30.3 per cent in 2023.

KONGSBERG has a solid financial position, and on this basis the Board of Directors will propose a dividend of NOK 22.00 per share,MNOK 3,870 in total, to the Annual General Meeting on

7 May 2025, of which NOK 10.00 is in accordance with the Group's ordinary dividend policy and NOK 12.00 is in addition. The payment is proposed to be divided in two tranches of NOK 10.00 and NOK 12.00. The amount per share is before the proposed five-for-one share split. Approval date is on 7 May 2025 with the following ex. dividend dates: 8 May 2025 and 9 October 2025. Correspondingly, a dividend of NOK 14.00 per share, totally MNOK 2,463, of which NOK 7.00 per share was in excess of the Group's ordinary dividend policy. At year-end, the number of outstanding shares, including shares owned by KONGSBERG, was 175,921,849.

Cash flow

KONGSBERG had a positive cash flow from operating activities of MNOK 13,744 in 2024 compared to MNOK 5,827 in 2023 . This mainly consisted of EBITDA of MNOK 8,028 and changes in current assets and other operating items of MNOK 5,716.

In 2024, there was a negative cash flow related to investing activities of MNOK (1,762) compared to MNOK (1,153) last year. The largest outgoing cash flows related to investing activities were MNOK (1,787), pertaining to investments in property, plant and equipment, such as new missile factory and other production facilities. MNOK (459) is related to capitalised internal development and other tangible assets. Interests

received of MNOK 322 has the opposite effect on cash flow from investing activites.

Cash flow from financing activities were negative by MNOK (3,862) compared to MNOK (2,759) in 2023 , mainly related to dividends paid, payment of leasing liabilities and interest expenses. KONGSBERG settled the bond KOG13 of MNOK 500 during 2024.

The net change in cash and cash equivalents, after the effect of changes in exchange rates, was MNOK 8,318 compared to MNOK 2,043 in 2023.

Capital structure

KONGSBERG aims to maintain a solid balance and to remain "Investment Grade", which normally provides access to the debt capital markets. A solid balance sheet also helps secure the confidence of customers and suppliers in KONGSBERG. This is important, as KONGSBERG is involved in deliveries that extend over many years.

The capital allocation priorities also take the company's dividend policy into account and are further explained in Note 4 Management of capital and financial risks to the consolidated financial statements in the annual report.

As of 31 December 2024, the Group's equity was MNOK 19,269, equal to 27.8 per cent of total assets compared to 30.9 per cent last year. Net interest-bearing debt was MNOK (9,604) compared to MNOK (1,085) in 2023. Long-term interest bearing loan was made up of three long-term bonds as of year-end, totalling MNOK 2,500.

The Group's syndicated loan facility of MNOK 2,500 was unused at the end of 2024.

Historically, KONGSBERG has experienced substantial fluctuations in working capital due to varying payment structures for major projects in Kongsberg Defence & Aerospace. This is expected to continue.

Technology and product development

KONGSBERG develops and delivers high-tech solutions both in Norway and abroad. Our technology platform has been systematically built up over many years and is an important prerequisite for our competitiveness. The transfer of technology between the different parts of the Group is very valuable. Sustainable innovation is an important part of the Group's business strategy and KONGSBERG has developed and invested considerably in future-oriented technology expertise in digitisation. We are also actively working together with our key technology partners to further develop our technology platform. KONGSBERG continuously invests in product and system development, both self-financed and through customerfunded programmes. In total, the Group spends about 10 per cent of its operating revenues on product development over time. This includes both self-financed and customer-financed developments.

The total self-financed product development and maintenance work amounted to MNOK 2,745 in 2024, of which MNOK 369 was capitalised. As of 31 December 2024, the capitalised own development work equalled a total of MNOK 1,409 for KONGSBERG.

Foreign exchange

The Group's financial policy states that contract above a certain size is to be currency hedged when entered, and this is mainly done using forward exchange contracts (fair value hedges). In special cases, forward exchange contracts or options are used as cash flow hedges, for example in the event of large tenders with a high probability of winning. The Group employs hedge accounting for established forward exchange contracts, which means that changes in the value of hedging instruments and objects are capitalised.

At the end of 2024 net sales of foreign exchange as fair value hedges amounted to MNOK 22,570, measured at agreed exchange rates. These forward exchange contracts had a net fair value of MNOK (1,428). In addition, the Group had net sales of currency equivalent to MNOK (281) as cash flow hedges measured at agreed exchange rates, consisting of forward exchange contracts. At year-end, the cash flow hedges had a total net negative fair value of MNOK (247).

Profit for the year and its allocation

The business in the parent comapny, Kongsberg Gruppen ASA, primarily consists of providing group services to subsidiaries as well as handeling other administrative tasks.

In 2024, the revenues were MNOK 243 compared to MNOK 238 in 2023. The annual result in 2024 is MNOK 4,228 compared to MNOK 1,590 last year. The change is due to significantly higher dividends from the subsidiaries in 2024 compared to 2023.

The balance has increased by MNOK 10,133 , attributed to an increase in cash and cash equivalents and debt to subsidiaries. As of 31 December 2024 , the total capital is MNOK 30,283.

The board proposes the following allocation of the annual result in Kongsberg Grupppen ASA.

Provisions for dividend	3,870 MNOK
To equity	358 MNOK
Total allocated	4,228 MNOK

The proposed dividend amounts to 75,2 per cent of The Group's annual result.

Going concern

In accordance with section 3-3a of the Norwegian Accounting Act, it is confirmed that the going concern assumptions continue to apply for both Kongsberg Gruppen ASA and the Group and that the financial statements are prepared on the assumption of a going concern. This is based on forecasts of future profits and the Group's long-term strategic forecasts. The Group is in a healthy economic and financial position.

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About KONGSBERG / The KONGSBERG Share and Shareholder Relationships

The KONGSBERG Share and Shareholder Relationships

KONGSBERG is to provide the stock market with relevant and comprehensive information, forming the basis of a balanced and correct share valuation. We emphasise an open dialogue with the stock market and the media.

The KONGSBERG-share increased from NOK465.40 at the end of 2023, to NOK1,280.00 at the end of 2024. This yields a market value of NOK 225,180.000 million. Including a dividend of NOK 14.00 per share, the total return in 2024 was 178 per cent. The Oslo Stock Exchange Benchmark Index (OSEBX) increased by 9.1 per cent in the corresponding period.

As of 31 December 2024, KONGSBERG had 47,690 shareholders (31,175). The company had 2,513 (1,851) foreign shareholders that owned a combined share of 24.85 per cent of the outstanding shares (20.82 per cent). The Norwegian state, represented by the Ministry of Trade, Industry and Fisheries, is the largest shareholder with 50.004 per cent. The ten largest shareholders held a total of 68.1 per cent (67.9) of the shares at year-end. The number of outstanding shares was 175.92 million, each with a nominal value of NOK 1.25. At the end of 2024, KONGSBERG owned a total of 14,654 (17,250) treasury shares.

KONGSBERG has paid dividends to its shareholders every year since its listing in 1993, apart from 2000 and 2001. The company's dividend policy is states: "KONGSBERG's aim is to pay an ordinary dividend per share that is stable or growing from one year to the next. Additional dividends and/or repurchases of own shares can be used to supplement ordinary dividends. All payments to shareholders will be subject to the company's assessment of future capital requirements." In 2024, 55.1 million (38.9) KONGSBERG-shares were traded in 589,303 (317,927) transactions. The company is actively working to promote interest in the share through activities aimed at the

investor market. KONGSBERG is frequently represented at roadshows, meetings and conferences in Norway and abroad. The ambition for 2025 is to maintain a high degree of availability and continued activity towards the investor market. Investor presentations are held subsequent to the issuance of each quarterly report.

The Board regards employee share ownership as positive. Every year, employee share programmes are arranged so that Group employees can purchase shares in the company. In the spring of 2024, the Group's annual employee share programme was carried out for the 28th time. Shares were sold to employees at a 25 per cent discount to the market price. All employees were offered shares for up to NOK 100,000 before the 25 per cent discount (taxable discount). A total of 403,023 shares were sold to 5,993 employees who participated in the programme.

About KONGSBERG / Outlook

Outlook

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

At the end of 2024, the Group had an order backlog of NOK 127.9 billion (NOK 88.6 billion in 2023), of which NOK 35.4 billion is to be delivered in 2025. This corresponds to NOK 4.5 billion higher order coverage for the current year compared to the previous year and 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 is exposed to market trends that offer significant growth potential going forward. To ensure the capacity to deliver the existing order backlog and meet future demand, investments are being made to increase capacity both within and outside of Norway.

Kongsberg Maritime delivers to newbuilds and the aftermarket across a wide range of vessel segments, from traditional merchant fleets to more advanced vessels performing complex marine operations. An aging fleet and stricter emission requirements create a need for fleet renewal, which supports long-term demand for the business area's solutions. However, the renewal of the maritime fleet will take time, as shipyard capacity limits the number of new vessels being built. Technology is key to succeeding in creating a more environmentally friendly maritime fleet, and Kongsberg Maritime aims to be a leader in this development. The sale of the steering gear and rudder business will be completed in 2025. This part of Kongsberg Maritime generated MNOK 950 in operating revenues in 2024. The business area is well-positioned in a market with increasing demand for efficiency-enhancing and emission-reducing technology, providing a basis for further growth in 2025.

In January 2025, KONGSBERG announced that Kongsberg Digital's maritime business will be transferred to Kongsberg Maritime. This includes approximately 500 employees and operating revenues of just over MNOK 600. Going forward, Kongsberg Digital will prioritize the further development of digital workspaces for the energy and process industries. After this change, Kongsberg Digital will be referred to as part of other operations.

Kongsberg Defence & Aerospace has grown continuously in recent years and had an order backlog of NOK 100 billion at the end of 2024. During 2025, all missile production will be transferred to new facilities. The composition of projects in delivery is an important driver for profitability, which may vary between quarters. The business area has leading market positions in several defence segments and is positioned for good order intake and continued solid growth in 2025.

Kongsberg Discovery has an extensive portfolio of advanced technology combined with deep domain knowledge and software. This is important in fisheries, marine research, marine operations, offshore energy production, and monitoring of critical infrastructure. There is high demand for technology in all these segments. In 2025, the technology portfolio has been further expanded through the acquisition of Naxys Technologies. The business area's solid positions provide a basis for continued growth in 2025.

The world is facing key challenges related to climate and security, and the geopolitical situation is constantly changing. KONGSBERG is well-positioned to address many of these challenges. This, in addition to a strong order backlog and a solid financial position, provides a good foundation for continued growth in 2025.

About KONGSBERG / Business Areas

Business Areas

KONGSBERG consists of four business areas that are managed through a central management model, but operate with a large degree of independence. The organisation is linked by expertise and technology synergies and a common culture based on our shared values. We are an innovative and customer-focused organisation that delivers advanced systems and technologies for use under extreme conditions.

Kongsberg Maritime Maritime Technology Partner

Kongsberg Maritime is a leading technology provider in the maritime industry. We invest heavily in innovative technology and digitalisation to ensure that both new and existing vessels with equipment from Kongsberg Maritime are safe, deliver a high degree of operational efficiency and meet cybersecurity requirements.

Our solutions are forward-looking, and focus on reduced energy consumption and increased use of green energy carriers. Close cooperation with shipowners, shipyards, insurers and educational institutions is a key aspect of our endeavours in the field of innovation.

One of our strongest advantages is the domain knowledge we have built up after supplying equipment to one-third of the world's fleet. Our technological expertise and domain knowledge are our greatest strengths as we navigate energy transformation and digitalisation together with our customers.

21

About KONGSBERG / Business Areas / Kongsberg Maritime

Digitalisation – An Important Driver in the Maritime Industry's Green Revolution

Interview with Lisa Edvardsen Haugan, EVP KONGSBERG and President Kongsberg Maritime

Number of employees: 7,255

Presence: 34 countries

The global shipping fleet and maritime industry are undergoing significant changes, driven by technological shifts and requirements for greenhouse gas emission reductions. Technology offers great opportunities for more energyefficient vessels. As a technology provider, Kongsberg Maritime is leading the green transition currently taking place at sea, says Lisa Edvardsen Haugan.

Q: What is Kongsberg Maritime's most important contribution?

A: Kongsberg Maritime is the technology expert of the seas. 34,000 ships around the world are equipped with technology from Kongsberg Maritime. We deliver maritime technology from propellers to bridge solutions, and by integrating products with technologies such as artificial intelligence, we create unique solutions that secure and optimize maritime operations. This gives us a unique position to lead the digital revolution currently taking place at sea and to be a key driver in the development of decarbonization.

Maritime operations currently account for around three per cent of global greenhouse gas emissions annually. The International Maritime Organization (IMO) has decided that greenhouse gas emissions from shipping must be zero by 2050. This means

that fossil fuels must be replaced with renewable energy. This energy is more expensive and less available today. The transition to renewable energy will have to happen gradually. Our contribution to this journey is to provide both zero-emission solutions where the market is ready for this, and solutions for energy efficiency and reduced consumption in segments where real zero-emission solutions are not yet available.

We aim to be the best possible partner and advisor, offering solutions that help our customers navigate a challenging energy transition.

Q: What were the highlights of the year?

A: 2024 has been a fantastic year for Kongsberg Maritime, with strong and profitable growth in all our divisions. We have delivered unique new builds, have high activity towards the sailing fleet, and we are entering 2025 with a record-high order reserve.

The strong results are primarily due to the solid efforts of Kongsberg Maritime's skilled and highly competent employees who contribute every single day. Our 7,200 employees are in 34 countries at 97 locations. Our strategy is to be present where our customers are, and when they need us throughout the vessel's lifetime. Therefore, we opened offices in four new locations in the past year.

In 2024, Kongsberg Maritime increased its focus on digitalisation and the use of artificial intelligence. Going forward, we will intensify our efforts in this area. In 2025 Kongsberg Maritime is taking over the maritime operations of Kongsberg Digital (KDI). This is a structural change that will significantly

strengthen Kongsberg Maritime's digital capacity. Through digitalisation, we focus on optimizing vessel operations, ensuring good digital life cycle management, integration with the wider value chain and remotely controlled operations.

We have leading solutions for automation, navigation, steering, propulsion and manoeuvring systems, energy management and remote operations. It is good to see the development of integrated solutions, in the form of better deliveries, higher quality and improved vessel performance. Our deliveries to Høegh Autoliner's 12 new Aurora-class car carriers provide an example of the contribution we are making to significant reductions in energy consumption by integrating our products

in smarter ways. Here, we are providing automation and bridge systems, digital solutions for emission monitoring and reporting, energy management systems and propulsion and manoeuvring systems. Höegh's Aurora-class vessels are powered by LNG, resulting in 58 per cent fewer carbon emissions per car carried. The vessels are also cleared to operate using ammonia and methanol.

Q: What are the biggest opportunities ahead?

A: The climate crisis, increased geopolitical tensions and great-power rivalry lead to unpredictability and protectionism. Navigating in such conditions is challenging for a global company like Kongsberg Maritime. Nevertheless, these challenges also represent opportunities. Geopolitical conditions have increased the need for maritime transport, accelerated the demand for energy from offshore oil and gas, as well as offshore wind power, and boosted investment in naval vessels.

Continues on the next page.

Lisa Edvardsen Haugan

EVP KONGSBERG and President Kongsberg Maritime

About KONGSBERG / Business Areas / Kongsberg Maritime

Kongsberg Maritime's broad presence in many segments creates a solid basis for developing competitive technologies and navigating market dynamics. The ability to adapt and standardise solutions for each individual segment is an important element in our strategic positioning. Opportunities to connect vessels via mobile networks and low-orbit satellite communication permit increasing levels of remote operation, autonomous functions, smaller onboard crews and larger numbers of qualified mariners working at control centres on shore. This creates space for new, cost-effective concepts that challenge the way maritime operations are carried out today.

Digitally connected vessels interact with cloud-based applications to optimise their operations individually and across fleets. Cloud-based applications will also integrate the vessels in their respective supply chains. For example, maritime transport will be incorporated into a larger logistics system.

We are already seeing that digitally connected vessels enable customer support to be provided without the customer support team physically being present. This increases uptime and reduces costs. Associated digital services will allow preventive maintenance, software updates and the installation of new functionalities to be performed online.

Kongsberg Maritime's overarching goal is to protect people and the planet. We do so by leveraging our technological expertise and maritime know-how to make seafaring safer and more climate friendly. In 2025, we will further ramp up our application of digital solutions and artificial intelligence to develop more energy-efficient vessels.

We recognise that our customers face complex decisions, and therefore, we aim to be the best possible partner and advisor throughout the energy transformation.

Highlights and Key Figures 2024

Tomorrow's ship design

• Kongsberg Maritime celebrated 50 years of ship design, and our ship design no. 1,000, IWS Seawalker, was delivered in 2024. It is intended for the installation and support of offshore wind farms. A key function is integration between the gangway and the dynamic positioning (DP) system. The vessel also features a hybrid energy system, with a 2.2 MWh battery, two azimuth thrusters in the bow and two astern with identical configuration. This provides an ideal propulsion and manoeuvring solution for operation in a wind farm.
• Reach Remote 1, received the magazine Skipsrevyen's "Ship of the Year 2024" award during the Society for Marine Mammalogy's SMM Conference in Hamburg, Germany. The 24-metre unmanned surface vessel features groundbreaking technology for remote operation that will slash carbon emissions by 90 per cent compared with equivalent manned vessels.

Integrated solutions and energy-efficient operations

• By supplying integrated solutions to ships, we are cutting operating costs and greenhouse gas emissions. One example is Capital Offshore's platform supply vessels (PSV). Built by Fujian Mawei Shipbuilding Ltd, these vessels are equipped with a battery system that enables them to cope with rapid variations in power consumption or unplanned generator outages. This reduces the number of generators in operation and thereby saves on both energy and emissions. The energy system is integrated with the systems for propulsion and manoeuvring, dynamic positioning and automation.

A reliable partner with strong customer relationships

• In 2024, we celebrated the delivery of our 1,500th azimuth thruster to Damen Shipyards Group, in a partnership that has lasted for more than 40 years.
• Höegh Autoliners chose to upgrade ten existing DSME-class RoRo vessels with Kongsberg Maritime's PROMAS propulsion and manoeuvring system.

Dedicated digital unit and cybersecurity

• In 2024, to meet our customers' needs, Kongsberg Maritime established a unit dedicated to the development and upscaling of digital functionalities. Going forward, digital solutions will be the key to providing higher value for our customers.
• This digital focus will be reinforced with effect from April 2025 when Kongsberg Digital's maritime operations are transferred and integrated into Kongsberg Maritime. This transaction will give Kongsberg Maritime 500 new employees, all with a high level of digital competence.
• In 2024, Kongsberg Maritime has classified its products in accordance with the International Association of Classification Societies' new Unified Requirements (UR) for cybersecurity: UR E26 and UR E27. These requirements ensure cyber resilience for new vessels and cybersecurity for onboard systems and equipment.

About KONGSBERG / Business Areas / Kongsberg Maritime

Divisions

Integration & Energy We deliver seamless integration and energy efficiency to the maritime industry

• Provides integrated solutions based on products and systems from all divisions in Kongsberg Maritime. In addition, the division is responsible for ship design, technology for partly or fully unmanned vessels, and our product portfolio within electrical systems.
• Holistic innovation provides sustainable competitive advantages for customers and is particularly relevant for vessels that use new types of fuel in combination with various solutions for energy efficiency, and for fully electric vessels using batteries.
• The digital dimension is a key in our integrated solutions. We leverage our status as a digital spearhead together with the advantage of being a leading integrator.

Operating income:

2,328 MNOK

Number of employees:

463

Intelligent control systems that deliver safer and sustainable operations

• The division's portfolio covers automation and safety systems, bridge systems, and sensor solutions. We support a wide range of missions in the maritime domain, from sea transport to complex marine operations and offshore energy production.
• Integration of digital technology across equipment, vessels and fleets enables performance optimization and safer and more sustainable operations. The products are based and developed with cyber-safe digital properties.
• Our automation and control systems grow together with the customers and are developed in interaction with crew, operators

Operating income:

$$4,766^{\text{ммок}}$$

Number of employees:

Propulsion & Handling We define the future of propulsion and handling

• Kongsberg Maritime is a world-leading supplier of propulsion systems, manoeuvring systems, and handling systems.
• We supply a large selection of products and systems in the field of safety-critical deck machinery, tested to operate in extreme conditions.
• Within propulsion we offer propellers, waterjet and thrusters ranging from mechanical to electrical. The products provide high level of efficiency, reducing energy consumption and emissions, and could be tailored to accommodate low noise.
• Our people include internationally leading experts in hydrodynamics, who deliver energy-efficient propulsion systems in close collaboration with our customers

Operating income:

5,135 MNOK

Number of employees:

1,098

Global Customer Support To achieve our goals, we always work closely with customers

• Global Customer Support supports our customers through a worldwide network of more than a thousand service engineers, technical support, parts sales and upgrading of existing vessels.
• Global Customer Support works closely with customers to ensure cost-effective upgrades, safe operation and environmentally friendly solutions adapted to the operational profile.
• Through KONGSBERG's digital solutions, we also offer support and service without going on board the vessel. This ensures uptime for the vessel and reduces the need for travel.

Operating income:

Number of employees:

3,623

About KONGSBERG / Business Areas / Kongsberg Maritime

Driving Force for Climate Change in the Maritime Industry

Kongsberg Maritime is a leading technology partner for the maritime industry. We equip a third of the world's fleet, from offshore vessels to cruise ships, fishing boats and complex marine vessels. We develop groundbreaking technology that supports zero-emission goals, and with in-depth domain knowledge, a culture of innovation and a global market, we will be our customers' preferred partner in shaping the maritime future.

Maritime transport is the backbone of global trade. More than 80 per cent of the world's goods are still transported by sea, which underlines its unique importance in global logistics. However in a turbulent world, things change quickly. Therefore, it is crucial that Kongsberg Maritime is where our customers are. A key aspect of our innovation work is close collaboration with shipping companies, shipyards, research, and educational institutions.

Research collaboration

Research and development are crucial for Kongsberg Maritime to stay at the forefront. In 2024, Kongsberg Maritime spent MNOK 1,498 on research and development. Kongsberg Maritime collaborates closely with the independent Norwegian research institute Sintef, the Norwegian University of Science and Technology (NTNU), the University of Oslo, the University of Southeast Norway, Sweden's Chalmers University of Technology and other valued partners. The company actively participates in programs from the Research Council of Norway, Horizon Europe, the European Defence Fund, and similar organisations.

Selling steering gear and rudder

KONGSBERG signed an agreement in the third quarter for the sale of the steering gear and rudder business to a fund managed by the Nordic private equity company Norvestor. The steering gear and rudder business is currently part of the Propulsion and Handling division in Kongsberg Maritime. The transaction includes an international business with end-to-end capabilities in both new sales and aftermarket for steering gears and rudders. In 2024, this business generated a revenue of approximately

MNOK 950, and the transfer process to the new owner is expected to be completed by the first quarter of 2025.

Shaping the maritime future

Kongsberg Maritime is growing rapidly, both organically and through acquisitions. Kongsberg Maritime is shaping the maritime future, a future driven by two major forces: Decarbonization and digitalization.

Maritime activities currently account for around three per cent of global greenhouse gas emissions annually. The International Maritime Organization (IMO) has decided that greenhouse gas emissions from shipping should be zero by 2050. However, the global supply of green energy is not sufficient to meet the needs of all industries and we must use smart technology to increase energy efficiency. Therefore, digitalization is the key to developing smart technology that delivers energy-efficient solutions. As an ocean technology expert, Kongsberg Maritime is uniquely positioned to become the leading digital solutions

provider for the maritime industry. To grow and maintain our solid margins, we must focus on customers, competitiveness and capacity.

Kongsberg Maritime will shape the maritime future and ensure that customers find solutions that make shipping more efficient and contribute to reduced emissions. We are close to our customers in 33 countries and thus we are also a longterm advisor to the customer and contribute knowledge and expertise throughout the vessel's lifespan.

A key aspect of our innovation work is close collaboration with shipping companies, shipyards, research, and educational institutions.

About KONGSBERG / Business Areas / Kongsberg Defence & Aerospace

Kongsberg Defence & Aerospace

Protecting People and Infrastructure

Kongsberg Defence & Aerospace develops and delivers technology and systems that protect people and critical infrastructure in countries around the world. Our solutions help strengthen countries' security and defence capabilities. Through innovation and state-of-the-art industrial production, we create jobs and value for our suppliers, partners, customers and owners.

About KONGSBERG / Business Areas / Kongsberg Defence & Aerospace

Increased Security in Uncertain Times

Interview with Eirik Lie, EVP KONGSBERG and President Kongsberg Defence & Aerospace

Number of employees:

4,648

Presence: 17 countries

In the defence segment, KONGSBERG stands for protection, innovation and value creation, says Eirik Lie.

Q: What is the most important contribution of Kongsberg Defence & Aerospace?

A: We provide equipment and technology that enable countries to protect people and infrastructure from external dangers and threats. We develop and deliver solutions to the Norwegian Armed Forces and Norway's allies that help enhance defence capabilities and ensure peace.

Our role as a defence supplier is linked to Norway's national security policy, and Norway's international obligations as a member of the UN and NATO. We work closely with the Armed Forces and research communities to develop customized systems for the country's specific needs, while also developing high-tech defence systems that are competitive internationally. The sale of defense equipment is subject to strict regulations.

We also contribute to creating value in the local communities where we and our subcontractors are present. With nearly 2,300 suppliers, we work with large and small companies in a number of countries and throughout Norway. In Norway, we are an industrial powerhouse driving innovation and value creation throughout the value chain, a role we are very aware of and proud of. Together with them, we are increasing the pace of innovation to develop new solutions."

Q: What is the biggest highlight of the year?

A: It is a bit difficult to call it highlights, when the backdrop is so serious. Last year was marked by security political unrest and war in Europe. At the same time, I am incredibly proud of the efforts that many of my colleagues made to secure deliveries of critical equipment to Ukraine last year. Donations from Norway and other NATO countries, including NASAMS air defence and anti-drone systems, helped protect people and infrastructure in Ukraine. We have also contributed to the completion of F-16 fighter jets and training of Ukrainian soldiers on our systems.

The situation in Ukraine shows why we exist, and the difference we can make in a critical situation.

We experienced a significant increase in new orders, which led to a record high order backlog at the end of the year. The high level of activity makes it extra important for us to expand production capacity with new facilities and more employees.

A highlight last year was definitely the opening of the new missile factory, Nexus, in Kongsberg, Norway. This is a state-ofthe-art facility, which significantly increases our ability to deliver to our customers.

We employed 683 new people last year, a record high for us. We depend on attracting smart minds, and I am pleased that we could welcome so many talented people to us.

Q: What is the biggest opportunity ahead?

A: As the situation stands today, it is likely that NATO countries and Norway's allies will continue to invest in and strengthen their defence capabilities. We expect continued high demand

for our core products such as air defence, missiles and weapon stations. International growth continues, and in 2025 we will begin building the new missile factories in Australia and the USA, which will give us a much stronger presence in these countries. In Norway, there is a lot of activity in connection with the fleet renewal in the Navy, with new frigates and standardized vessels, in addition to strong focus on air defence acquisitions.

The long-term plan for the defense sector was adopted by a unanimous Parliament in 2024. It includes a number of measures to increase the Armed Forces' combat power, availability, and endurance, with significant investments in areas such as maritime surface structure, air defense, land power, and the space domain.

At the same time, we are working purposefully to develop solutions that will meet long-term needs. The new supersonic missile 3SM is a development project together with German industry to bring forward a long-range missile that will complement the current NSM and JSM. In air defence, we are working to expand NASAMS to cover an even wider range of ranges and threats, so-called Full Spectrum Air Defence. In the space segment, we see great potential in using microsatellites in a defence context. Combining short-term needs with long-term strategic plans is part of everyday life for us at KONGSBERG, and I feel we are well positioned for the future.

The situation in Ukraine shows why we exist and that we can make a difference in a critical situation. We help save lives. NASAMS has shot down approximately 900 missiles and drones with an accuracy of 94 per cent.

Eirik Lie

EVP KONGSBERG and President Kongsberg Defence & Aerospace

Highlights and Key Figures 2024

Record order book

High demand led to a number of major new contracts in the past year. Key contracts included JSM to the US Air Force, Japan and Australia, as well as NSM to the US Navy.

We sold the NASAMS air defence system to Spain, the Netherlands, Norway and Lithuania and we secured the first international sale of the mobile NOMADS system, to the Netherlands. Other highlights included the sale of PROTECTOR weapon stations to new NATO members Sweden and Finland, as well as a contract to supply remote control towers to civilian airports in Canada.

New colleagues

In 2024, we hired the highest number of new colleagues in the company's modern era. In total, we welcomed 683 new employees during the past year. The hiring was spread across the three divisions, all of which are experiencing strong growth.

New production facilities

The opening of Nexus, the new missile factory in Kongsberg in June 2024 was a milestone for the company. The decision to build a new factory was made in 2021 after many years of high demand for the NSM and JSM anti-ship missiles, and expectations for further growth. Shortly after the opening in Norway, it was announced that new factories would be built in Virginia in the US and Newcastle in Australia.

Deliveries to Ukraine

Donations from Norway and other NATO countries, including NASAMS air defence and anti-drone systems, continued to contribute to the protection of people and infrastructure in Ukraine throughout 2024. KONGSBERG also contributed to the delivery of F-16 fighter jets to Ukraine and to the training of Ukrainian soldiers on KONGSBERG-systems.

Order backlog

2025 2026 2027+

Divisions

Defence Systems

The division develops and manufactures air defence systems, remotely operated weapon stations, command and control systems, communication solutions and digital, remotely operated airport towers for customers worldwide.

The air defence system NASAMS (National Surface-to-Air-Missile-System) is one of KONGSBERG's signature products, developed in collaboration with the American Raytheon in the 1990s. 13 nations are currently users of the system. More recently, the air defence capacity has been further expanded with NOMADS (National Maneuver Air Defence system). Overall, this provides a full-scale and mobile air defence that provides protection against incoming threats.

KONGSBERG is among the industry's leading suppliers of unmanned weapon stations and towers for military vehicles and platforms. We have so far delivered more than 23,000 systems to 29 nations. The largest program is the American Commonly Remotely Operated Weapon Station (CROWS) program.

10,592 MNOK

Number of employees:

Aerostructures & MRO

Operating revenues: 3,381 MNOK

Number of employees:

1,046

The main business is the production of products for the F-35 fighter aircraft and KONGSBERG-developed systems in the defence sector. This includes deliveries of the JSM and NSM missiles, NASAMS air defence systems and radar systems, as well as maintenance, overhaul and testing of critical dynamic components for helicopters.

The division also operates maintenance services, modifications and upgrades of aircraft and vessels. Kongsberg Aviation Maintenance Services performs, among other things, repair and overhaul of the Pratt & Whitney F135 engine, which powers all three variants of the F-35 fighter aircraft. Kongsberg Naval Services, which is owned 50-50 together with Kongsberg Maritime, has a contract for the maintenance of the Norwegian frigates.

Missiles & Space

We have more than 50 years of experience from a number of missile programs and today deliver high-tech missiles for ships, vehicles, helicopters and aircraft.

The division develops our two missiles, the Naval Strike Missile (NSM) and the Joint Strike Missile (JSM). The NSM is a long-range and precision-guided anti-ship missile that hits enemy targets at a distance of more than 100 nautical miles. The JSM is based on the NSM and is the only fifth-generation cruise missile designed for integration into the weapons bay of the F-35A fighter aircraft. Our missiles have been selected by a total of 14 nations.

The Space & Surveillance area delivers a wide range of equipment, systems and services related to space and maritime surveillance, in more than 40 countries. We develop and manufacture small satellites through our wholly owned subsidiary Kongsberg NanoAvionics.

Operating revenues:

6,496 MNOK

Number of employees:

1,688

Kongsberg Satellite Services (KSAT) – We own 50 per cent of Kongsberg Satellite Services (KSAT), a world-leading provider of communication services for spacecraft and launch platforms and advanced surveillance services via satellites.

About KONGSBERG / Business Areas / Kongsberg Defence & Aerospace

Positioned for Growth

Kongsberg Defence & Aerospace develops and delivers technology and solutions to the Norwegian Armed Forces and Norway's allies to protect people and critical infrastructure. With technology and advanced solutions, we assist nations in defending themselves against threats and ensuring peace.

We are a powerful innovation hub, combining creativity, innovation, research and development with extensive industrial experience to bring forth new products, technology and solutions. The triangular cooperation between the armed forces, the research establishment and the defence industry in Norway has produced unique and world-leading technology.

Kongsberg Defence & Aerospace helps build strong communities by creating attractive jobs, safe workplaces and great value for employees, owners and our many thousands of suppliers throughout Norway and in the countries where we are present.

Collaboration is one of our four values and an important contributor to our international success in recent years. We work closely with the largest players in the defence industry to develop and deliver products and in joint projects.

Outlook

Kongsberg Defence & Aerospace has grown significantly in recent years.

The world is characterized by increased geopolitical uncertainty, with the war in Ukraine now in its fourth year. Defence budgets are increasing in Norway, in NATO countries and among other allies. We expect defence investments to increase further in the coming years. NATO countries are expected to raise their investment ambitions from the current floor of 2 per cent.

The increase in defence budgets reinforces a trend that has lasted for a decade. It is broad-based and affects several of our core products – from air defence to missiles and weapons stations. New investments in increased defence capabilities

contributed to Kongsberg Defence & Aerospace's order backlog reaching a record high of NOK 100 billion in 2024.

To ensure the capacity to deliver on existing commitments and meet the significant demand, we are investing in increased production capacity.

A new missile production factory was opened in the summer of 2024 at Kongsberg Norway, and soon after we announced new factories in Australia and the USA. These factories will increase our ability to deliver larger volumes in a short time.

In the future, we plan to continue to invest internationally, driven by, among other things, the demands and expectations of more customers for industrial collaboration across borders. We will continue to strengthen our presence in countries such as Australia, Canada and the USA.

Profitability varies between different product groups and geographies. The composition of projects in delivery is therefore an important driver of profitability in the business area.

We are well positioned for several significant orders in the short and medium term, which gives expectations of an increased order backlog over the next few years. The high level of activity has also created value locally where we are present, via new jobs and high activity through our supply chains.

Over the past three years, we have hired 1,839 new employees. We expect to continue recruiting in the coming years to handle the increased workload.

With a solid and motivated organization and a good position in our most important markets, Kongsberg Defence & Aerospace is well equipped to seize the opportunities that arise in a rapidly growing market.

About KONGSBERG / Business Areas / Kongsberg Discovery

Kongsberg Discovery The Explorer of the Sea

Kongsberg Discovery develops advanced technology to explore the ocean. Its vastness, depth, cold, darkness, and pressure make ocean exploration challenging.

We manufacture acoustic instruments for seabed mapping at various depths. Our sonars are utilised to estimate fish stocks globally. Additionally, we develop technology for safe navigation in areas without GPS signals, as well as positioning and communication systems to support maritime operations.

The technology and solutions we develop help ensure sustainable marine resource management, monitor climate change and critical infrastructure, and safeguard national security.

About KONGSBERG / Business Areas / Kongsberg Discovery

Collecting Knowledge About the Ocean

Interview with Martin Wien Fjell, EVP KONGSBERG and President Kongsberg Discovery

Number of employees: 1,191

Presence: 7 countries

Kongsberg Discovery develops worldleading technology to increase knowledge about the ocean space. Technology is essential for the sustainable management of marine resources, the monitoring of climate change, and the protection of critical infrastructure as well as national security.

Q: What is the most important contribution Kongsberg Discovery makes?

A: In a time when climate and environmental changes threaten both people, animals, and ecosystems, it is crucial to have good data. This provides us with the necessary information to make the right decisions for the future. The technology we develop offers clear insights and essential information about the ocean space. Our technology also contributes to increased security. Protection of critical infrastructure is essential to maintain, among other things, energy and communication connections. We develop technology that protects the entire ocean space, from drone detection in the air to deep autonomous underwater vehicles that can move down to 6,000 meters below the ocean surface.

Q: What is the biggest highlight of the year?

A: In 2024, Kongsberg Discovery was awarded a contract with the U.S. Defense Innovation Unit (DIU) for the U.S. Navy's Large Diameter Unmanned Underwater Vehicle program. The contract allows the U.S. Navy to acquire equipment, training, and support to test and evaluate new autonomous underwater vehicles.

The agreement gives us the opportunity to enter a new, large market with enormous potential and increases visibility around our autonomous underwater robots. The contract with the Brazilian company Corcovado Geosub Ltda is also important. The company performs advanced seabed monitoring and is among the largest players in mapping changes on the seabed. We provide a system designed to be deployed at approximately 3,000 meters depth to monitor microscopic changes in seabed elevation and observe the seabed during oil and gas production. These systems can also be used elsewhere.

In 2024, we delivered our first drone detection systems. Here,we use radar technology to detect and identify small objects in the air. By using AI, we can classify objects based on a library of signatures, and in this way distinguish between different types, as well as distinguish drones from other objects.

Kongsberg Discovery participates in discussions and working groups with leading experts in quantum technology and challenges Norwegian authorities to take a more proactive stance on investing in the field. We believe that quantum technology can revolutionise performance in sensor technology and aim to be well-positioned to adopt the technology when it is sufficiently developed. The business area also plays central roles in several working groups on ocean monitoring and participates in several international research projects. I consider it a great honour that we are invited to participate, both because it is a recognition of the contributions KONGSBERG has made over the years, and because it strengthens our solid

position within technology environments both in Norway and internationally.

Q: What is the biggest opportunity going forward?

A: For us, it's not just about an opportunity. We have high ambitions and strong belief that the future will bring both growth and change for our business. We have a solid technology platform that we have developed over many decades and use to create world-leading products. This has allowed us to gain new market shares in both the USA and several EU countries throughout 2024. We are growing in both existing and new markets. This demands a lot from our organisation, and we continue to facilitate further growth. Our products help solve challenges related to both sustainability and safety. These are two market drivers that will be very important in the coming years. For Kongsberg Discovery, it is crucial to stay ahead and maintain good collaboration with our colleagues and partners.

Kongsberg Discovery has systems and products that can operate either independently or in conjunction with other technology to provide the best and most comprehensive picture possible.

Martin Wien Fjell

EVP KONGSBERG and President Kongsberg Discovery

Highlights and Key Figures 2024

Future mapping equipment

We strengthened our collection of low-frequency broadband sonar products to provide an even more detailed picture of the marine environment than has previously been possible. In 2024, we launched the EK80, and the product has become popular with our customers in both research and fisheries. Historically, echo sounders have mainly been used to estimate and assess biomass. Now, the instruments are increasingly also being used to perform other biological, physical and chemical analyses within oceanography.

Expert in understanding the surroundings

Over several years, we have developed and improved our technology to increase the safety of maritime operations. In challenging maritime environments, where navigational hazards, shipping traffic, unpredictable weather and evolving risks are constantly emerging, professionals on the bridge and on land need real-time clarity to make the right decisions. During the year, our products and solutions in the area have gained good momentum, and we see that customers are very satisfied. Improved situational awareness increases safety and security, as well as providing even more efficient operations – whether on board or at a remote operations centre.

Sensor that prevents bycatch

In the autumn of 2024, we launched Active Selector, a brand-new trawl sensor with a camera solution to ensure efficient and sustainable trawl fishing. By combining hydroacoustics with an integrated camera, it is possible to monitor which fish species are caught. In this way, the new trawl sensor helps to avoid bycatch. This is sustainability in practice. Bycatch not only threatens the survival of certain species but also disrupts the balance of marine ecosystems.

Contract with the US Armed Forces

In early 2024, we were awarded a contract with the U.S. Defense Innovation Unit, an organization that works to set up and scale commercial technology that is of interest to the U.S. military across sectors. Kongsberg Discovery was selected to assist in the development of the US Navy's prototype Large Displacement Unmanned Underwater Vehicle (LDUUV). During the year, a close and good collaboration has developed, and this will continue into 2025.

About KONGSBERG / Business Areas / Kongsberg Discovery

Divisions

Ocean Technologies

Ocean Technologies is one of the world's leading environments developing technology in subsea positioning and communication. Using hydroacoustic, we provide exact position and send data to and from underwater infrastructure, such as self-propelled underwater vehicles, or remotely operated underwater robots. This technology is used in a wide range of industries and applications where high precision and extreme performance are required. There is also an ever-increasing interest in our latest digital solution for the collection and best possible sharing of data and analysis, Blue Insight. Smart and automatic data sharing provides increased access to information and a better basis for analysis. Ocean Technologies has several interesting collaborative projects underway with the private sector, authorities and independent research communities.

Seatex

Seatex delivers products that combine deep technology expertise and application understanding. Technology related to inertial navigation, navigation satellite systems, microwaves and radio technology, provides our customers with valuable information about position, speed, acceleration and heading. In addition, our solutions contribute to increased situational awareness at sea, in the air, from space and from land. This provides security and efficiency, both during each individual work operation, but also in a larger societal perspective, such as when monitoring critical infrastructure and climate and environmental changes in the ecosystem. Seatex, in addition, has advanced solutions that enable precise positioning and navigation and underwater and on the water's surface.

Marine Life Technologies

Marine Life Technologies has a leading position as the world's leading supplier of technology that ensures sustainable management of the world's most important resource. This includes products that locate fish, of the right species and size, in the most suitable sea areas. This makes the fishing industry more competitive and sustainable and helps to solve societal challenges in the areas of climate and the environment. In recent years, the division has increased its market position in sport fishing, and medium-sized fisheries and coastal players.

Uncrewed Platforms

Uncrewed platforms deliver autonomous underwater and surface vessels for research, defense and commercial use. The vessels are equipped with advanced technology that facilitates efficient and environmentally friendly data collection. Additionally, this technology ensures access to data from previously inaccessible locations. The vessels can be equipped with a tailor-made range of sensors that enable the acquisition of the desired information and data. Our HUGIN vessels are the world's foremost of their kind, and they can conduct deep water cruises with technology that ensures high-quality data.

HUGIN Endurance, which is the latest addition to the HUGIN family, carried out its first test cruises with the customer in the spring of 2024. The underwater drone, which is 8,000 kg and 12 meters long, has a capacity down to 6,000 meters. The HUGIN Endurance can cover around 2,200 km or 1,200 nautical miles. The interest and attention for HUGIN Endurance has been great since it was launched, and there are great expectations for this technology in the years ahead.

Revenues: 2,217 MNOK

Employees:

304

Revenues:

766 MNOK

Employees:

130

Revenues: 657 MNOK Employees:

192

920 MNOK

Revenues:

Employees: 126

About KONGSBERG / Business Areas / Kongsberg Discovery

Discovering the Secrets of the Sea

Kongsberg Discovery's vision is to discover the secrets of the sea. With the global population exceeding eight billion, it might seem that most of the Earth has been explored and that few mysteries are left. The reality is that vast areas beneath the surface of the sea remain unknown to us. An important role for us at Kongsberg Discovery is to contribute technology to explore marine life and map the seabed.

It is frequently stated that we know more about the surface of the moon than life at the bottom of the sea. While this statement may not be entirely accurate, it underscores the significant challenges involved in obtaining precise and comprehensive data from the seabed.

As of today, approximately 26.1 per cent of the world's seabed has been mapped to a relatively high resolution. This equates to about 46 million square kilometres, roughly three times the size of the Moon's surface. Unlike the Moon's surface, which predominantly consists of two types of rock, the seabed hosts a far more diverse and dynamic ecosystem.

Drawing comparisons between the seabed and space is natural, given that both environments are dark, remote, and can evoke a sense of fear. Although the Moon is visible to us regularly, the ocean depths are more abstract and difficult to conceptualize. Nonetheless, research in oceanography and seabed mapping is more advanced than ever before, with substantial research projects underway across various domains. Despite our growing understanding of the seabed and marine ecosystems, much remains to be discovered.

2024 – the year of high temperatures, war and conflict

Overfishing, plastics, greenhouse gas emissions, and climate changes are significant environmental factors affecting marine life. Last year was the warmest ever registered. Unfortunately, war and conflict have been prominent in 2024. Ensuring security for people and protecting critical infrastructure remain essential now and in the future. Our technology aims to contribute during these challenging times.

The major and complex challenges facing the world require better interaction and innovation across industries and sectors of society. Collaboration is crucial for finding effective solutions to protect marine areas and marine life, promoting coexistence between different sectors, peoples, and nations.

International presence

There is a high level of activity with a presence at various international arenas, including conferences, meetings, sales fairs, and participation in several research projects. Seabed 2030 is one of the significant projects that bring together researchers and other participants to map the seabed. Having a detailed picture of the seabed is important both for safe navigation and for countries to manage their marine resources.

Kongsberg Discovery is also involved in the High Arctic Ocean Observation System (HIAOOS), an EU-funded research project aimed at gathering more data about the Arctic Ocean, one of the world's least explored areas.

Our world-leading technology makes us an attractive and relevant partner. It is a role we handle with humility and pride. At the same time, we recognize that there is tough competition, and there is no opportunity to rest. We will continue to develop technology, products, and solutions for the future.

Autonomy and robotics at the core of our activity

Sustainability and safety impact multiple areas. Through technology and solutions, a crucial role is played in achieving the green transition and protecting critical infrastructure. Autonomy and robotics are integral to all operations. Customers across various sectors seek solutions that optimize resources for environmental and economic benefits. Therefore, autonomous solutions are continually developed with robotics as part of the delivery.

The current geopolitical situation presents various threats that challenge communication, navigation, and existing solutions to maintain a comprehensive understanding of surroundings. Thus, technological solutions are developed to enable activity and ensure secure communication despite hostile actions and threats affecting operations at sea, in the air, or underwater.

Smarter sensors create opportunities

75 per cent of the world's oceans lack detailed seabed maps. Acoustic instruments are most effective for this task, as sound travels four times faster and further in water. Multibeam echo sounders efficiently map large areas.

By developing smarter sensors that can capture more data, we will be able to offer our customers stronger and better tools. Transforming data into information quickly is crucial for making informed decisions. Credible data is essential for addressing global crises.

Our expertise in hydroacoustics, robotics, inertial navigation, positioning, laser, radar, and communication, combined with application knowledge and software, give us insight and drives our product development.

We aim to help our customers achieve their goals and promote sustainability. Our creativity positions Kongsberg Discovery to adapt to a changing world.

About KONGSBERG / Business Areas / Kongsberg Digital

Kongsberg Digital

Transforming industries through faster and better solutions

At Kongsberg Digital, we believe that a company's value is determined by the quality of its decisions. Therefore, we help various industries make faster and better choices through data-driven insights that increase customer value, improve productivity, and reduce environmental impact.

We simplify work processes and improve operational efficiency by automating workflows and collecting data from secure sources on a single integrated industrial platform. Our platform supports all levels of the organization, from top management to field workers, and contributes to better planning, design, construction, operation, and maintenance.

With scalable solutions, we support customers throughout their digital transformation, regardless of industry or installation. A broad partner network ensures seamless implementation and high returns on investments. Kongsberg Digital, established in 2016 as a subsidiary of KONGSBERG, builds on world-leading expertise and innovative technology. With a focus on quality, we simplify and accelerate digital transformation.

About KONGSBERG / Business Areas / Kongsberg Digital

38

Technology for faster and better solutions

Interview with Shane McArdle, President Kongsberg Digital

In 2024, Kongsberg Digital has increased its position as a leading industry technology provider, focusing on delivering data-driven insights that enable customers to make faster and better decisions. Shane McArdle sees significant opportunities for continued growth, increased customer value, and a central role in the global energy transition.

Q: What is Kongsberg Digital's most important contribution?

A: Kongsberg Digital enables industries to make faster and more precise decisions through data-driven insights. By combining technical expertise with deep industry knowledge, we turn data into valuable insights that enhance decisionmaking across organisations. By integrating information from multiple sources and automating workflows, we improve operational performance in planning, design, construction, operations, and maintenance. Our scalable solutions, robust partner ecosystem, and deep industry expertise allow us to support customers throughout their digital transformation.

Q: What was the key highlight of the year?

A: First and foremost, we can look back on another year of solid growth across the organisation. The agreement with Yara was a significant milestone, as we expanded Kognitwin into a new market segment. We also launched several new twins and experienced strong growth in our maritime portfolio. Additionally, I would like to highlight Energy Simulations, which had an outstanding 2024. We continued integrating advanced AI tools into our solutions, including Microsoft Copilot technology, which offers users better insights into their data. This development has resulted in more accurate and efficient decision-making tools, supporting our goal of continuous innovation.

Q: What is the greatest opportunity ahead for Kongsberg Digital?

A: We see significant opportunities to scale our technology into more sectors and markets. Advanced data-driven solutions and continued investment in AI will provide our customers with a stronger foundation for strategic decision-making. By strengthening existing relationships, forming new partnerships, and further developing our products, we can meet growing demands for efficiency, safety, and sustainability. This will enable us to enhance our role in the energy transition and the global industrial digitalisation process. By collaborating closely with customers and partners, we are laying the foundation for continued scaling and long-term growth.

Presence:

13 countries

Number of employees:

1,204

By strengthening existing relationships, forming new partnerships, and further developing our products, we can meet the demands for efficiency, security, and sustainability

Shane McArdle

President Kongsberg Digital

Highlights and Key Figures 2024

Digital twin collaboration with Yara International

Kongsberg Digital signed a two-year agreement with Yara to develop digital twin technology for Yara's factories in Herøya, Norway, and Sluiskil in the Netherlands. The agreement includes an operational twin for the production facilities at Herøya in Porsgrunn and a project twin for the carbon capture initiative in Sluiskil.

We will deliver improved simulation technology for the Sleipner field

We secured a significant contract with Equinor to rebuild its Sleipner Life Cycle Simulators using K-Spice and LedaFlow technology. This collaboration will enhance simulation capacity in the Sleipner area of the North Sea, while Equinor will benefit from improved operational efficiency, strengthened training, and greater accuracy in simulatorbased engineering.

Operating revenues

Strong growth for Vessel Insight

We experienced substantial growth in the maritime segment in 2024. By the end of the year, more than 85 shipping companies had signed contracts, with over 300 new vessels connected to Vessel Insight. This reflects the growing demand for our solutions.

Strategic partnerships driving further growth

In 2024, we entered several strategic partnerships, including collaborations with Smart Ship Hub, Royston, Acuvate, Databricks, Capgemini, and CMG. These partnerships are critical for scaling our technology portfolio, particularly in digital twin solutions. The collaboration with Microsoft's Copilot technology highlights our ability to deliver advanced solutions that create added value for customers.

Chapter 3

Sustainability Statement

41 General Information 55 Environment 84 Social

100 Governance

Sustainability Statement / General Information

General Information

General Basis for Preparation

Consolidation

The Corporate Sustainability Reporting Directive entered into force in the EU on 5 January 2023 and was implemented in Norwegian law on 1 November 2024. As a listed company, KONGSBERG must comply with the regulation for the 2024 reporting period.

The sustainability statement for 2024 has been prepared on a consolidated basis with the same scope as the financial statement.

We have worked to establish the capacity and competence to meet the reporting requirements of the CSRD and ESRS over several years. To create a common ground of understanding and application we started the work as a project based top-down approach and have over time taken steps to move us in a direction of a process driven bottom-up approach. As an example, this year the functional owners at corporate took a more defined lead on the identification and assessment of material impacts, risks, and opportunities in connection with our third update of the double materiality assessment. This allowed for a wider involvement of functional owners at business area level and has contributed further to prepare them to deliver their own double materiality assessment during 2025. The strategic decision to move to a bottom-up process recognises the diversity of our business and the need for a tailored approach within each business area, while at the same time maintaining a unified direction for the Group.

Value chain

This sustainability statement covers KONGSBERG's upstream and downstream value chains. The value chains were mapped as part of a circularity project in 2023 and were also applied in the update of the double materiality assessment performed during 2024. The identification of impacts, risks and opportunities was connected to relevant activities in the upstream- and downstream value chains, and own operations.

Our policies, actions and targets apply to the value chain for several reporting topics. Suppliers need to comply with the Supplier Conduct Principles, and we have internal directives that define the due diligence requirements for our upstream- and downstream value chains. To meet our sustainability targets and initiate appropriate actions, we depend on collaboration with value chain stakeholders. Examples are the reduction of scope 3 emissions, ensuring of workers' rights in the supply chain, and development of strategy, products and business models.

Estimation

The metrics presented in this report generally apply to KONGSBERG's own operations. However, some metrics under E1 Climate change (scope 3 emissions) and E5 Resource use and circular economy include the upstream- and downstream value chains. Estimations are disclosed with the relevant metrics where they are applied.

Omitted information

As an actor in the defence sector, we are subject to the Norwegian Security Act. As such, it is important that we do not provide information that could help identify supplier or production locations. This affects the level of detail in information related to who is particularly vulnerable to our impact for our own employees, workers in the value chain and affected communities. We refer to countries and geographies to avoid the possibility of identifying locations.

Certain reporting requirements are phase-in requirements in 2024. We have chosen not to include information related to these, except a data point related to training and competency development for our own employees (number of employee surveys performed).

Disclosures in Relation to Specific Circumstances

We disclose the required information necessary to understand the basis for our reporting as prescribed by the ESRS alongside the respective disclosure requirements. This includes:

• Deviations from ESRS definition of short-, medium-, and long-term time horizons
• Estimations related to upstream or downstream value chain data
• Quantitative and monetary amounts that are subject for a high level of measurement uncertainty
• Changes in preparation or presentation of sustainability information
• Errors in previous reports
• Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Requirements to comply with Norwegian Accounting Act section 2-2 are included in the sustainability report where relevant.

Incorporation by reference

A list of disclosure requirements as an outcome of the materiality assessment and a table of data points that derive from other EU legislations, as required by IRO-2, are incorporated in the appendix to the Annual report on page 195.

Description of significant groups of products and services, and significant markets and customers is reported on under the chapter on About KONGSBERG on page 8. An overview of head count by geographical areas is presented in the Own workforce chapter on page 85.

Sustainability Statement / General Information / Sustainability Governance

Sustainability Governance

for a two-year term of office.

Board of Directors

Name	Position		Gender Categories	Board committee
Eivind Reiten	Chair of the Board	Male	Independent, non-executive	Compensation Committee (chair)
Per A. Sørlie	Deputy of the Board	Male	Independent, non-executive	Audit and Sustainability Committee
Kristin Færøvik	Member of the Board	Female	Independent, non-executive	Audit and Sustainability Committee (acceded on 30 May 2024) Compensation Committee (resigned on 30 May 2024)
Merete Hverven	Member of the Board	Female	Independent, non-executive	Compensation Committee
Morten Henriksen	Member of the Board	Male	Independent, non-executive	Audit and Sustainability Committee (chair)
Kjersti Rød	Member of the Board	Female	Employee elected	Audit and Sustainability Committee
Rune Fanøy	Member of the Board	Male	Employee elected	Compensation Committee
Oda Ellingsen	Member of the Board	Female	Employee elected	Audit and Sustainability Committee

KONGSBERG's Board is a unitary board that consists of eight members, including five independent, shareholder-elected members, and three employee-elected members. The Board maintains a balanced gender representation with 50 per cent female members. 62.5 per cent of the Board are independent, and all members are nonexecutive. The Board is composed to ensure that expertise with regard to sectors and geographic locations we operate in, our products, corporate governance, risk management, financial and non-financial compliance, and sustainability and ESG issues are covered as a whole. The Board members have extensive experience from related sectors such as offshore, resource-based industries, oil, energy, and software. All members are Norwegian citizens with backgrounds from Norwegian businesses with a strong international presence.

The Board actively engage to gain insight into the Group's business activities. In that connection, the Board makes excursions to different locations with the purpose to improve the Board's insight into the different commercial activities of the business.

See the separate report on corporate governance available from our website.

Roles and responsibilities

The Audit and Sustainability Committee is a preparatory body for the Board and consists of at least two shareholder-elected directors and one employee-elected director. Group Executive Vice President & CFO and the Auditor normally participate in the meetings. The President & CEO and the other Board Members are entitled to attend if they wish.

Sustainability related impacts, risks, and opportunities are the responsibility of the Board. The Audit and Sustainability Committee performs an oversight function to monitor progress on sustainability and compliance, and review internal control mechanisms. The responsibilities are reflected in our Corporate governance instruction for the Audit and Sustainability Committee. The management of impacts, risks, and opportunities is delegated to the Group Executive Vice President & CFO, who reports to both the Corporate Management Team and the Board, and regularly participates in the Audit and Sustainability Committee meetings. The Board and Corporate Management Team monitors the setting of targets and progress related to material impacts, risks, and opportunities through the Audit and Sustainability Committee meetings.

We have a decentralised management model featuring delegated responsibility for operations. As a result, the control function parallels the Group's management model, and it is the responsibility of the individual unit to make sure that it has the capacity and competence required to carry out responsible internal control. The Corporate Management Team and the functional owners at the corporate centre are responsible to ensure that the business areas have implemented the appropriate internal controls. An update to our Directive for internal control for financial reporting has been updated to also cover the scope of sustainability and will be applicable for the reporting for 2025.

Directors' liability insurance

Kongsberg Gruppen ASA has a directors' liability insurance applicable to the company's board members, CEO, and senior employees. This insurance covers legal and financial claims directed at the board or management based on their actions in their respective roles. It applies to both the parent company and all subsidiaries of KONGSBERG where KONGSBERG holds more than a 50 per cent ownership stake. The insurance is placed with a reputable insurance company with a good rating.

Skills and expertise

The need for relevant competence and experience for our Board and supervisory bodies is evaluated through the Boards annual self-assessment and the Nominating Committee makes evaluation in connection with nomination of new Board members. The Board has relevant experience related to the material sustainability topics from an Sustainability Statement / General Information / Sustainability Governance

industrial and strategic perspective. In-house specialist competence on climate-related issues such as Science Based Target initiative, GHG protocol and CDP reporting, is available both on administrative and management level. In addition, we have general competence on compliance, anti-corruption, export control, sanctions and security and cybersecurity. External specialists across all Environment, Social and Governance (ESG) topics are available through framework agreements. Administrative functions within sustainability and finance have undergone extensive external training. Courses and other relevant activities are offered as needed to secure that the Board has the appropriate ESG skills and expertise to secure sufficient monitoring of the relevant sustainability matters identified by our materiality assessment.

Governance related to business conduct

The Group has compliance functions at both a corporate level and in the business areas and these functions maintain a close collaboration. Similar to the financial reporting, the internal control is established in accordance with a decentralised management model. Our compliance programme is coordinated and monitored from a corporate level where routines have been established for notification and follow-up of any alleged misconduct. Our guidelines are continuously updated to ensure compliance with the Norwegian Working Environment Act and other relevant legislation. We have a whistleblower system with a web-based notification channel available to all employees globally, which allows for external notifications and secure anonymity for whistleblowers.

The Board follows up risk management and internal controls through its annual plan. This includes a quarterly review of strategic and operational risks, and central items related to financial reporting and non-financial compliance. Our values, and Code of Ethics and Business Conduct are an integral part of our operations, and we expect our employees and partners to demonstrate high ethical standards and compliance with applicable rules and regulations. We continuously work on systematic development and follow-up of important areas for compliance with regulations, rules and internal guidelines. We focus on the anti-corruption programme with emphasis on employee training, cooperation with business partners on anti-corruption measures, as well as training and review of market representatives. Further, we have a particular focus on export control and sanctions, along with robust processes to ensure compliance with Data Privacy regulations.

Sustainability-Related Performance in Incentive Schemes

The Board's Compensation Committee functions as a preparatory body for the Board in cases relating to the remuneration of the President & CEO, and other members of the Corporate Management Team (CMT). The committee annually assesses whether the salary and remuneration schemes are appropriate and competitive. The remuneration shall be composed in such a way that it motivates to make an extra effort to the continuous improvement of the business and the company's financial performance. In addition, the remuneration shall be regarded as clear and acceptable both internally and externally. The schemes must therefore be transparent and in line with the principles of good corporate governance. Further, the remuneration shall be flexible to allow for adjustments when change is required, while also promoting a system that encourages collaboration. Detailed information on remuneration to the management and the Board will be presented in a separate Executive Management remuneration report 2024. The report will be published on our websites in connection with the notice of the Annual General Meeting.

Remuneration for members of the CMT consists of fixed and variable compensation elements. Variable compensation is made up of a bonus scheme (short-term incentive: STI) and a share scheme (long-term incentive: LTI). The purpose of the STI scheme is to motivate the participants to achieve the short-term targets that support the company's long-term strategic objectives and sustainable development. The scheme consists of four key performance indicators (KPIs) as illustrated below.

The President & CEO and Executive Vice Presidents have individual goals related to several sustainability topics, which account for 46 per cent of individual goals. Climaterelated goals account for eight per cent of individual goals and are linked to Group climate targets to reduce absolute GHG emissions in own operations, as well as to achieve the annual target for the Supplier Engagement Program to contribute to have our suppliers to set their own science based targets aligned with the Paris agreement.

Governance Over Sustainability Matters

The Board and the Audit and Sustainability Committee receive regular updates from the sustainability functions at corporate on material impacts, risks, opportunities (IROs), due diligence implementation, and the outcomes and effectiveness of policies, actions, metrics, and adopted targets. During 2024, sustainability matters have been on the agenda at the Audit and Sustainability Committee at three meetings throughout the year. The chair of the committee informs the Board on the minutes of meeting from these meetings. The functions in charge of the sustainability reporting have also presented to the Board the process related to the update of the double materiality assessment for 2024. Through these interactions, the Board is informed about both financial and non-financial impacts.

Sustainable change and operational excellence are core philosophies that underpin all our activities and processes in seeking to achieve long-term sustainable improvements that create value. Further, we have several Corporate directives that aim to include evaluation of sustainability in our decisions on major transactions and risk management processes:

• Directive for sustainability assessments in decision making, such as mergers & acquisitions, investments in financial positions, fixed assets and facilities
• Directive for compliance due diligence, risk management and follow-up of the supply chain
• Directive for compliance due diligence of business partners
• Directive regarding corporate approval of significant bids contracts and framework contracts

During 2024, the Board and its supervisory bodies have addressed IROs across all material topics. They have been involved in the approval of the double materiality assessment, reviewed and contributed to the strategy update process, engaged in updates related to compliance audits of suppliers and market representatives, and M&A due diligence processes.

Sustainability Statement / General Information / Sustainability Governance

Sustainability Due Diligence

The following table shows where and how the application of the main steps in our due diligence process are reflected in the sustainability statement. We have established due diligence processes for sustainability assessments that target selection of suppliers and market representatives, as well as processes related to mergers, acquisitions, larger bids and contracts. The activities towards the supply chain is the main focus of the sustainability statement.

Core elements of due diligence	Paragraphs in the sustainability statement
(a) Embedding due diligence in governance, strategy and business model	• Sustainability related performance in incentive schemes, page 43 • Governance over sustainability matters page 43
(b) Engaging with affected stakeholders in key steps of the due diligence	• Governance over sustainability matters page 43 • Stakeholder engagement page 48 • Double materiality assessment page 50 • Process for engagement for own workforce page 87 and 93 • Process of engagement for workers in the value chain page 96
(c) Identifying and assessing adverse impacts	• Double materiality assessment page 50 • Material impacts, risks and opportunities for; – Climate change page 56 – Resource use page 71 – Own workforce page 85 and 92 – Workers in the value chain page 95 – Affected communities page 98 – Business conduct page 101, 103 and 104 – Security and cybersecurity page 106
(d) Taking actions to address those adverse impacts	• Actions and resources for; – Climate change page 60 – Own workforce page 88 and 93 – Workers in the value chain page 97 – Security and cybersecurity page 107
(e) Tracking the effectiveness of these efforts and communicating	• Targets and metrics for; – Climate change targets page 58 and 64 – Own workforce targets page 89 and 94 – Workers in the value chain page 97 – Security and cybersecurity page 107

Risk Management and Internal Control Related to Sustainability Reporting

Sustainability reporting according to ESRS requires detailed disclosures across Environmental, Social, and Governance (ESG) factors, involving several functional owners at corporate. The data to be reported are both qualitative and quantitative. Quantitative data relies on robust data collection processes across various systems, while qualitative data often requires meticulous documentation and analysis, as it is not recorded on an ongoing basis. Even though the quantitative data are covered by existing internal control mechanisms, we identified a need for system support that enabled an effective consolidation of quantitative data and ability to document internal control mechanisms for qualitative data. As a result, we acquired and implemented a new disclosure management solution during 2024. Our new disclosure management solution secure that all material disclosure requirements are covered and that the reporting undergoes a review process to secure accuracy.

The existing risk assessment approach includes presenting the material topics to the CMT and Board, as well as reporting streams for numerical data points related to climate, HR, HSE, compliance, and security and cybersecurity. Key challenges related to the reporting of the 2023 data has been highlighted to the Audit and Sustainability Committee during 2024. For the 2024 risk prioritisation we rely on past experience and general market maturity on an ESG topical level.

The Enterprise Risk Management (ERM) system addresses sustainability reporting risks on a quarterly basis. Findings and updates are regularly communicated to the Board, ensuring ongoing oversight and alignment with strategic objectives.

Our directive for internal control was revised in 2024 to also cover sustainability data, the change is valid from 2025. This will among other things add an improved risk prioritisation methodology. The updated directive sets requirements for integrating the findings of risk assessments and internal controls in the internal control function. A directive related to climate data reporting has also been updated during 2024 that will introduce quarterly reporting of key elements of our climate accounts as well as waste management starting from Q1-2025. The reporting of climate-related data relies on a number of assumptions and newly established reporting structures and is targeted for additional controls in our 2025 reporting cycle. An improved data collection process has been put in place that makes use of an improved and tested data model, as well as increased attention to evaluate year-over-year changes in reported data. In more general terms, the following key risks and mitigation strategies have been identified:

Key risks

• Completeness and integrity of data
• Accuracy of estimations
• Availability of upstream and downstream value chain data
• Timing and availability of information

Mitigation strategies

• Upskilling and raising awareness among staff
• Reporting from key locations and units
• Continuous improvement of data and methodologies
• Engagement with the Sustainability Forum

Sustainability Statement / General Information / Sustainability Strategy, Business Models and Value Chain

Sustainability Strategy, Business Models and Value Chain

Sustainability Related Goals and Strategy

Connection to strategy and main challenges ahead

KONGSBERG's strategic ambition is to be a group of leading technology companies, delivering advanced technology solutions to solve critical challenges for our customers that enhance and support the security and safety of people in our society and contribute to a more sustainable future.

"Sustainable change and operational excellence" and "A thriving workplace" are two of the focus areas of our strategy that relate to our impact on environment, employees and societies. Sustainable change and operational excellence are core philosophies that underpin all our activities and processes. We aim to move the company in a sustainable direction and focus on improvements and solutions that create lasting value for our customers and society as a whole. We value our people as our most important resource. We shall have a skilled, dedicated, and diverse workforce and a safe and thriving culture that encourages for agility and collaboration which allows for our employees to perform at their best.

Meeting our growth ambitions while simultaneously delivering on our sustainabilityrelated goals will raise challenges for us. From a climate perspective, we have ambitions to reduce our GHG emissions across the entire supply chain. As we grow, we will have a larger and potentially more complex value chain to manage. We must ensure that we continue to build a robust and resilient supply chain with suppliers who are also committed to sustainable change. Collecting and analysing sufficient and relevant operational data remains a challenge in being able to measure our progress to achieving our goals.

Our customers and suppliers can be affected by changes in attitude and market sentiment towards sustainability-related themes. This can have an impact on the speed of transition and the willingness to pay for more sustainable solutions. It is key that reliable and clear requirements, regulations and incentives are in place to assist in the uptake of solutions, technologies and practices that support sustainable change.

As we grow, we must ensure that we are correctly organised and prepared for an increasingly diverse workforce, with a broader range of demands and needs.

Sustainability goals

Our sustainability-related goals relate to all our business areas, across all geographies. The goals are not dedicated to specific product or services, customer categories or relationships with stakeholders. We are well positioned to capture leading positions in fields such as green shipping, offshore wind, security and surveillance, sustainable ocean management, environmental monitoring, and digitisation of heavy industry. Circularity and decarbonisation form a basis in the development and design of new technology. Each of our business areas contributes to the decarbonisation and digitalisation transitions, and capturing relevant opportunities is a core part of our strategy.

The table on the right summarise our sustainability goals across environmental, social and governance (ESG) dimensions. Further details about our work within each of these areas is described in the topical chapters of this sustainability statement.

Topic	Sub-topic	Long term target	Target description	Affected stakeholders
			55% reduction in absolute scope 1 GHG emissions from 2019 by 2030.	Nature1
	Climate change mitigation		Engage 67% of suppliers (by spend) to set their own science-based targets by 2027.	Nature1 Suppliers
			25% reduction in absolute GHG emissions from the use of sold products from 2021 by 2030. Nature1	Customers
Climate change			Net-zero emissions from our value chain by 2050	30% reduction in GHG emissions (per employee) from non-chargeable business travel by plane from 2019 by 2030.	Nature1 Own workforce
			25% reduction in GHG emissions (CO2e per tkm) from transport and distribution from 2019 by 2030.	Nature1 Suppliers
			100% of annual procurement of electricity from renewable sources annually by 2030.	Nature1
	Energy		25% reduction in energy consumption (per employee) through energy efficiency measures from 2019 baseline by 2030.	Nature1
	Working conditions		Reduce total recordable injuries rate (TRI) to 1.82 for 2025.	Own workforce
				Reduce sick leave to 3.4% for operation in Norway in 2025.	Own workforce
Own workforce				Not exceed turnover2 of 4.5% in 2025.	Own workforce
		A thriving workplace
	Equal treatment for all		Engage 100 people for job training in 2025.	Own workforce
			Increase the share of women in the organisation to 23% in 2025.	Own workforce
			Maintain share of women recruited to managerial positions on level 1-3 of 35% in 2025.	Own workforce
Workers in the value chain	Working conditions and other		70% of suppliers assessed for Human Rights and Labour requirements each year.	Suppliers
	work related rights		92% of employees should have formal performance review with immediate manager in 2025. Own workforce At least 130 supplier audits to be completed in 2025. All business areas should update their actual human rights risk assessment in 2025. 100% of senior management should complete declaration regarding any actual or potential conflicts of interests in 2025. 70% of employees should complete declaration regarding any actual or potential conflicts of interests in 2025. 100% of business areas should be external audited with third-party certification each year. 100% of emergency personnel should complete four trainings per year.	Suppliers
	Corporate culture, corruption and bribery			Business partners, suppliers and own workforce
Business conduct			We are committed to responsible business conduct throughout our business and value chain		Own workforce
				Own workforce
	Security and Cybersecurity			Own workforce
					Own workforce

1 Nature is considered a silent stakeholder

2

Only includes employees who have chosen to resign. Employees who leave due to retirement, involuntary termination or internal job changes are not included.

Business Model and Value Chain

We collaborate with over 13,400 global suppliers, including more than 5,000 based in Norway. Our suppliers are key in our value creation, just as we are in theirs. In the supply chain, we depend on workers in the value chain, the communities surrounding our suppliers, as well as nature as a silent stakeholder. Our own operation involves a range of activities, such as product and system assembly, product testing, software and product development, as well as design and prototyping. Our employees, academic and research institutions, investors, and customers represent some of the most critical stakeholders related to our own operations.

Our products and services reach the market through various distribution channels, including direct sales, partnerships and alliances, online platforms, market representatives and dealers. At the end of our value chain are our customers and end-users, which include ship- owners and yards, energy companies, governments and public institutions, and defence organisations. Our customers, governments, and communities that are impacted by the use of our products are important stakeholders in our downstream value chain. At our products end of life, we aim to ensure effective

waste management. This includes promoting circularity through maintenance, overhauls and repairs to enhance product lifetimes, as well as recycling and material recovery.

Inputs

Raw materials, such as steel, iron, aluminium, composites, and titanium, are inputs for developing our advanced technologies and solutions. These raw materials are processed into critical components, including parts and assemblies, castings and forgings, electrical equipment and cables, and hydraulics. The supply chain for these input factors involves a network of direct and indirect suppliers. To ensure a secure and reliable supply, our business areas implement rigorous supplier risk assessment processes and systems. Suppliers are categorised into risk classes based on criteria such as purchase volume, country of origin, and dependency on the supplied goods and services.

We maintain active engagement with our suppliers through daily operations, as well as through conferences and webinars that address commercial, and environmental, social, and governance (ESG) aspects of our business relationships. Our procurement practices are aligned with industrial and security policies, ensuring that we uphold high standards of integrity and sustainability throughout our supply chain. By fostering open dialogue and collaboration with our suppliers, we aim to enhance the resilience and sustainability of our operations.

KONGSBERG is a group consisting of companies who delivers advanced technology solutions to solve critical challenges for our customers. We are involved in activities such as software and product development, design and prototyping, product and system assembly along with product testing. Our organisation is built on knowledge and expertise, valuing our people as our most important resource in delivering our strategy and purpose and creating value for our customers and stakeholders. The commitment, expertise, and cooperation from all our employees is essential to providing the best

Sustainability Statement / General Information / Sustainability Strategy, Business Models and Value Chain

solutions to our customers. Therefore, we invest in their development, well-being, and career growth, striving to be an employer that offers opportunities, challenges, and recognition to allow our employees to perform at their best.

Outputs

Delivering advanced and reliable solutions that enhance safety, security, and performance in complex operations and extreme conditions is at the core of our mission. Our business model is centred around innovation and sustainability to provide superior benefits to our customers, investors, and other stakeholders.

For our customers, we offer cutting-edge technology and comprehensive support, ensuring operational efficiency and reliability. Investors benefit from our strong financial performance, diversified portfolio, and commitment to sustainable growth. Additionally, we foster employee development and maintain robust supplier relationships. We believe that long-term shareholder value is best achieved by addressing risks and opportunities from environmental, social, and economic perspectives, and by engaging openly and transparently with all stakeholders. Our purpose, "to protect people and planet by innovating technology today, for a better tomorrow," guides our actions and ensures that we continue to create value for all.

Engagement with Stakeholders

Feedback from our internal and external stakeholders plays an important role in forming priorities, actions and ambitions to create sustainable value. As part of the double materiality assessment, the perspectives of stakeholders were considered by an internal working group that engage directly with our most important stakeholders. The members of the working group are in regular dialogue with stakeholders, which gives us valuable insight into their interests and expectations. This makes it possible to establish relationships built on respect and trust, which are essential to realise our ambition and deliver our strategy effectively. In addition, these dialogues are enhanced by desktop research on topics relevant for stakeholders to ensure we gain a thorough understanding of their interests. The Board and supervisory bodies are informed about the views and interests of stakeholders through the double materiality assessment and regular updates.

Stakeholders	Why we engage	How we engage	Prioritised topics	Outcome of engagement
Employees	To create an understanding of our employees' needs and expectations, to ensure that their interests are taken care of, to inform about the strategic goals of the organisation, and facilitate for high performance and well-being. Nurture a value based culture. Secure a competent workforce that contribute to our growth ambitions.	Regular performance dialogues, employee surveys, townhalls, team building events, development initiatives, collaboration in various arenas, recruitment activities towards students and other potential employees.	Work-life balance, purpose driven company culture, flexible working arrangements, health and well-being, diversity and inclusion, equal opportunities, and responsible business conduct.	• Monitoring of employees' well-being, and motivation through performance dialogue and engagement surveys • Investment in learning management system and HMS system • Offer flexibility to ensure a good work-life balance • Focus on diversity and social responsibility in recruitment • Summer project and summer jobs for students • Affected communities identified as material topic • Creating a thriving workplace is one of the focus areas of KONGSBERGs strategy
Shareholders/investors	To communicate specific, regular, and consistent information about our company's activities that support our shareholders/investors in taking informed decisions.	Dialogue through stock exchange disclosures, press releases, general assemblies, presentations and one-to one meetings with both investors and analysts. External information on our website, such as annual reports, quarterly reports, and company presentations.	Climate and environment, supply chain, cybersecurity and governance.	• Setting a SBTi climate target • Expanding our Cyber Security Center
Governments	To understand and impact regulatory frameworks affecting KONGSBERG.	Direct dialogue through meetings and other arenas, public hearings, and public debates at events and in media.	Regulations and framework conditions, including technology development, market access, education, energy transition, and others.	• Continuously strengthening ESG reporting and developing first CSRD aligned report for 2024 • EU Taxonomy reporting • Interaction and collaboration with Norway's leading trade unions, business organisations, NGOs and think tanks • Product development • Participation in EU research programme and access to funding
Customers	To create a good understanding of our products and services, capabilities, and deliveries, and to build good relationships, partnerships, and trust.	Regular live and digital meetings with customers. Exhibitions, conferences, and other industry-specific arenas.	Technology, system integration and product offerings. Look after customer needs and deliveries.	• Product development that focuses on energy saving, electrification, and digitalisation.
Suppliers	We engage with our suppliers through daily business interface and strategic relationships to ensure a good and productive collaboration, working towards responsible supply chain.	Direct engagement through meetings, webinars, site visits, and conferences.	Responsible supply chain, inducing quality, health, environment, safety, human rights, compliance, security and export control	• Global deployment of risk-based supplier due diligence, including self-assessments and audits • Supplier engagement and collaboration to meet business and governance requirements • Integration of requirements in procurement processes and training
Academic and research institutions	To create knowledge exchange, promote research, influence new areas of study, and motivate students.	Direct dialogue, collaboration initiatives and research programs.	Climate change, innovative technologies, research and development, and collaboration.	• Collaboration and partnerships with leading research environments worldwide • Collaboration to promote competence development in Kongsberg together with USN • Access to funding from the Research Council • Yearly case competition at universities (USN and NTNU): Your extreme
Civil society	To inform, enhance and challenge our sustainability priorities. We exchange views and knowledge on relevant climate and environmental policies to align with the goals of the Paris Climate Agreement and promote sustainable ocean management.	Regular dialogue in meetings, locally and internationally. We engage in several arenas, including labour unions, industry associations, NGOs, and the UN system.	Sustainability related themes where we have a significant opportunity for positive impact such as climate change and threats to the environment and ecosystems. Topics across the ESG agenda such as responsible business conduct, employee relations and human rights.	• Increased engagement in UNs Ocean Stewardship Coalition • Improved sustainability reporting • Added focus on human rights • Improved communication of values and ambitions

As part of the double materiality assessment, affected communities and workers in the value chain were identified as stakeholder groups. Currently, we do not have a process to engage directly with these groups. Our channel of raising concerns is open for everyone, including affected communities. More details about our channel to raise concerns is provided in the Governance chapter on page 101.

Sustainability Statement / General Information / Sustainability Strategy, Business Models and Value Chain

Resilience of Strategy

KONGSBERG is committed to ensuring the resilience of our strategy and business model across environmental, social, and governance (ESG) dimensions. Our approach includes regular updates to both the Board and the Corporate Management Team on global macro trends, supported by an annual strategy process. We have completed an evaluation on the resilience of our strategy, which includes a comprehensive review of macroeconomic, geopolitical, and social developments, focusing on identifying material impacts, risks, and opportunities related to ESG factors. We employ scenario testing and engage external consultants to provide insights and validate our strategies, allowing us to anticipate potential challenges and adapt accordingly. Our analysis considers various time horizons to ensure both short-term agility and long-term sustainability.

As a Group, we maintain a dynamic approach to external changes and developments. We perform regular quarterly reports, ensuring that the Corporate Management Team and business areas are informed of developments that may impact our operations. Our Public Affairs team and subject matter specialists across the Group stay updated on trends relevant to their areas of expertise. A sustainability forum has been established to assist in coordinating ESG-related discussions across the Group. In addition, both our Board and the Corporate Management Team are regularly updated through our Enterprise Risk Management process.

Through our resilience analysis we address material impacts and risks while capitalising on opportunities across the ESG spectrum. In the analysis, we applied the same time horizons as for our climate risk analysis. Qualitative assessments contribute to identify key areas for strategic focus, ensuring that our business model remains robust and competitive. Quantitative insights, where applicable, support decision-making and strategic planning. Detailed information on the resilience of our strategy in light of climate change is provided in the Climate change chapter on page 56.

Double Materiality Assessment

During 2024, we conducted a comprehensive double materiality assessment. Our assessment was conducted through a process that aimed to manage (identify, assess, prioritise and monitor) potential and actual impacts on people and the environment, as well as risks and opportunities that may have financial effects on the company. This process included our own operations, supply chain, and downstream activities and involved participants from various functions across the business areas to ensure a holistic approach. The methodologies and assumptions for the double materiality assessment are consistent with the principles and guidance of the ESRS. Our process has evolved over the last years to incorporate existing analyses, such as the GRI materiality assessment and TCFD-aligned climate-related risk analysis, which serve as inputs for the 2024 assessment. The management of impacts and risk is integrated in the Enterprise Risk Management process and part of our general risk management process.

Phase 1: Understand

In this phase, we mapped our value chain activities within a sustainability context. The value chain was divided into main activities, each associated with various impacts, risks, and opportunities across environmental, social, and governance topics.

Phase 2: Identify

Actual and potential impacts, risks, and opportunities across the entire value chain were identified. This was achieved by leveraging existing sustainability knowledge and engaging in dialogue with internal and external stakeholders. The focus was on mapping impacts and dependencies, and identifying risks and opportunities linked to these.

Phase 3: Evaluate

In this phase, we evaluated and scored the identified impacts, risks, and opportunities based on their consequence and likelihood. This evaluation followed a structured methodology, assessing the significance of each impact, risk and opportunity to determine its priority level.

Phase 4: Decide

We established thresholds for material topics using a matrix approach. This allowed for the inclusion of high consequence but low likelihood impacts, ensuring a nuanced and precise analysis. The matrix helped identify which impacts, risks and opportunities were material and required further attention. In the previous years of the double materiality assessment update, focus has been to build a common expertise and methodology across the organisation. These efforts will continue while we shift from a top-down project execution to a bottom-up processdriven approach. Previous work to map stakeholders and value chains has been reviewed and we have updated the media analyses to secure a solid foundation to the identification of material topics. In 2025 we will continue the journey to establish the process bottom-up, and during the year the business areas will perform their own double materiality assessment to validate and update the corporate assessment.

The management of impacts has considered relevant activities, business relationships, geographies and other factors across the business areas. We apply a dynamic approach to how our business relationships are considered in the impact assessment based on their relative dependence. Insights from our stakeholder, value chain and media analyses inform our evaluation of actual and potential impacts. To understand our stakeholders, we currently rely on internal evaluation, external experts such as consultants and auditors, and public reports, including the Ministry of Trade, Industry and Fisheries' white paper on ownership policy. Moving forward, we intend to develop this approach to improve our understanding of their views and interests. The materiality of impacts is determined in accordance with ESRS 1, section 3.4 Impact materiality.

Our process to manage risks and opportunities is guided by relevant impacts and dependencies. The risks and opportunities identified in the double materiality assessment process are evaluated and reported as part of the Enterprise Risk Management process. We apply consistent thresholds for magnitude and likelihood in both the double materiality assessment and the Enterprise Risk Management process. The materiality of risks and opportunities is determined in accordance with ESRS 1, section 3.5 Financial materiality.

Functional owners at corporate, across the Environmental, Social, and Governance (ESG) topics, have been responsible to execute workshops to identify Impacts, Risks, and Opportunities (IROs) within their area of expertise. Subject matter experts from the business areas have contributed in the identification workshops to secure a comprehensive and precise overview of relevant IROs. Their involvement has facilitated the creation of a more detailed and thorough understanding of the respective IROs. Central resources from the sustainability team at corporate have provided training and tools for documentation of the workshops. Corporate sustainability has led the management of IROs with significant contributions by Group functional owners

and sustainability resources from the business areas. Particular emphasis has been on securing a balanced reporting of positive and negative impacts, and risks and opportunities.

The draft output of the double materiality assessment was presented to the Corporate Management Team, the Audit and Sustainability Committee, and the Board. These groups provided valuable input for the final review before the assessment was concluded and approved by the Board. The involvement of subject matter experts across the business areas and corporate functions, along with corporate management, has played a crucial role in ensuring robust internal controls in the process of updating the material topics for the 2024 reporting.

Evaluation related to material topics

KONGSBERG is committed to understanding and addressing the impacts of climate change on our strategy and business model. We have taken significant steps towards completing a comprehensive resilience analysis, starting with our climate risk assessments. Our ambition is to achieve net-zero emissions across our value chain by 2050, aligning with international standards like the GHG Protocol and Science Based Targets Initiative (SBTi). We manage GHG emissions from all operations and key parts of our value chain, focusing on scope 1, 2, and 3 emissions. This management is crucial for understanding our impact on climate change and guiding our mitigation efforts.

Since 2019, we have conducted annual climate-related risk assessments, enhancing our understanding each year. In 2024, we further developed our analysis, and in 2025, we plan to transition from a top-down to a bottom-up approach for more detailed insights. This shift will allow for greater detail from business area analysis before consolidating results for the Group.

This year's assessment served as a valuable competence-building exercise, conducted through a full-day workshop involving sustainability, HSE, supply chain, and financial functions. We applied two scenarios for our analysis: the IPCC's SSP1-RCP1.9 (low emissions) and SSP3-RCP7.0 (high emissions), focusing on a more targeted approach than in previous years and therefore excluding a medium emission scenario. Our scenario analysis assesses risks over short, medium, and long-term horizons, focusing on high-impact vulnerabilities and opportunities.

An internal working group identified, reviewed, and prioritised 20 climate risks and opportunities, resulting in a semi-quantitative analysis with some financial estimations. Three of the 20 were physical risks from acute and chronic events like hurricanes and extreme weather, impacting personnel, operations, and supply chains. Transition risks involve regulatory changes and increased production costs, while opportunities include developing low-emission solutions such as green shipping and sustainable ocean management. The net financial effects are expected to be negative, however they are not anticipated to significantly impact our overall business model. This comprehensive preparation ensures we are well-positioned to meet future requirements and effectively quantify financial impacts from 2025 onwards.

We recognise resource use and circular economy as strategic priorities. We have screened our assets and activities across the value chain to identify actual and potential impacts, risks and opportunities related to resource inflows, outflows, and waste. This comprehensive analysis utilised standard methodologies and assessment tools. Although direct consultations with affected communities were not conducted, we engaged in stakeholder dialogues to gather insights and address broader concerns. These efforts reflect our commitment to integrating circular principles across our operations and supporting global sustainability goals.

We have identified impacts, risks, and opportunities related to business conduct by evaluating key criteria such as location, activity, sector, and transaction structure. We assessed our main locations, suppliers, business partners, and activities to identify potential heightened impacts and risks, including historical industry-related challenges with business ethics and corruption.

Evaluation related to non-material topics

We have conducted a comprehensive assessment of our activities and main locations to identify impacts, risks and opportunities related to pollution, water and marine resources, and biodiversity and ecosystems across our value chain. This evaluation was part of our double materiality assessment, utilising aggregated activity descriptions and the LEAP method developed by the Taskforce on Nature-related Financial Disclosures (TNFD). The methodology for this is the same as for all topics in the double materiality analysis, where desktop research and input from internal and external stakeholders were used to identify impacts, risks and opportunities, and internal experts assessed their severity. Although direct consultations with affected communities were not conducted, stakeholder assessments informed our approach. The details of each evaluation for each topic are described below:

• Pollution: While site specific screenings were not conducted, we applied the results from our stakeholder assessment to address broader concerns and align with environmental standards. The analysis concluded that pollution is not a material topic for our operations.
• Water and marine resources: The LEAP analysis in 2023 indicated that few sites are in areas experiencing water stress, with significant dependencies identified in the upstream value chain. This topic was also deemed non-material.
• Biodiversity and ecosystems: The assessment revealed minimal direct interaction with nature at our production sites, indicating low risk. Our Alicante site, near a key biodiversity area, showed no negative impacts from our activities. Transition, physical, and systemic risks were evaluated, with findings included in our 2023 Annual and Sustainability Report. However, we acknowledge that we have not fully assessed dependencies on biodiversity and ecosystems or the specific criteria for these assessments. We do not have a complete overview of our sites near areas defined as particularly vulnerable, or whether there is a need for specific biodiversity measures. We have, however, implemented some biodiversity mitigation measures around our facilities in Kongsberg, including constructing a salamander hotel and restoring their summer habitat.

Material Topics

In 2024, we updated our double materiality assessment for the third time. Over the past three years, we have developed our approach to meet the ESRS requirements. We will continue to develop our methodology and transition from a top-down project approach towards a bottom-up process approach.

The outcome of our double materiality assessment identified six out of the ten topical standards from the ESRS to be material. In addition, we identified security and cybersecurity as an entity specific topic.

E1 Climate change

Climate change is one of the topics with the highest impacts. Both direct and indirect procurement generate GHG emissions at our suppliers themselves as well as the required logistics. Our own manufacturing, assembly and testing of products as well as operation of offices requires energy. Business travel and employee commute to work contribute to GHG emissions. The transportation of our products to customers and the operation of data centres required to deliver our digital solutions are other sources of greenhouse gas emissions. However, our products also make positive impacts as they enable the installation, maintenance and operation of renewable and green energies such as offshore wind. All negative impacts are relevant in a shortterm horizon, while the positive impacts are relevant in the medium- to long-term horizon.

Our key risks in the upstream value chain relate to regulation such as the Carbon Border Adjustment Mechanism and physical climate related risks that may interrupt production or logistics. We strongly believe that low-carbon technologies will be in demand and regard this as an opportunity to take a larger share of the market by monitoring and answering these customer demands on time. These risks and opportunities will likely materialise in a medium to long-term perspective.

E5 Resource use and circular economy

Resource use and circular economy is regarded as an area of strategic importance. Negative impacts have been identified in connection with inbound and outbound resources, as well as waste across our value chain.

We make use of primary- and critical raw materials, such as nickel, cobalt and copper in our products which may impact environment, availability and costs. Plastic, paper, cardboard and wood are used in packaging for both inbound and outbound goods, which may lead to environmental issues. Our deliveries to the defence- and space industries are subject for strict regulations which may affect resource efficiency. We generate waste throughout the value chain, from procurement of raw materials to delivery of finished products. In addition, we rely on IT equipment with limited useful life to deliver our products and services.

S1 Own workforce S2 Workers in the value chain

Our policies and practices affect more than 14,600 permanent employees globally. We have more than 13,400 suppliers globally which employ a significant number of workers in our value chain. Our suppliers and us operate in countries and regions where the risk of poor working conditions is higher. This is especially linked to working conditions in the short term. Part of our own workforce is exposed to manufacturing processes that have a higher exposure to health and safety hazards. Our commitment to invest in training and skills development can have a positive impact on employees' personal growth and well-being. We also work to be an inclusive workplace by offering on-the-job-training to people who have been left outside the job market. This can prepare them for further challenges and equip them with the necessary skills and experience to succeed in their careers. These positive impacts are both relevant in the short-term horizon.

The growth we experience, and the ambitions we have for the future can put pressure on the organisation and contribute to increase the risk related to working time, and health and safety should it not be managed properly. Possible insufficient working conditions for the workers in our value chain may damage our reputation.

S3 Affected communities

We develop technology that safeguards security and stability in a changing geopolitical landscape. Our solutions contribute to secure nations' defence capabilities and peace. At the same time, our products may affect communities negatively during war and crisis situations, and when civilians are affected.

We may face reputational risks and erode trust among stakeholders in the long term. Without stringent controls, this could disrupt operations, lead to legal challenges, and financial penalties.

G1 Business conduct

As a Norwegian organisation, we are exposed to strict regulations and high expectations related to corporate culture and business ethics. In our international operations, we take with us a high standard related to these areas, which represents a positive impact in the short term.

Regulations around sanctions are quickly developing and high focus from several authorities contribute to increase the inherent risk in the short term related to our supply chain. Actors in the defence industry have a higher exposure to governments and their representatives which may pose a risk in our own operations in the medium-term. The use of market representatives and agents, both in the defence and maritime industries, represents risks related to corruption and bribery, corporate culture and management of relationships with suppliers in the short-term.

Security and Cybersecurity have been identified as an entity specific disclosure and is not covered by the ESRS.

Financial Effect of Risks and Opportunities

Our impacts, risks and opportunities, including climate-related risks and opportunities, inform our financial planning. Current, and anticipated future financial effects are mainly related to the material topic Climate change. To achieve our targets related to our material impacts, risks and opportunities, there is a need for investments in both existing technologies to reduce GHG emissions, and in the development of new technologies, solutions and business models that can drive the energy transition. Most of our investments are linked to product development, where sustainability, safety and efficiency are all important factors.

In 2024, no financial effects to address risks and opportunities was considered to be above our significance threshold, which was determined during the double materiality process. An evaluation of which risks and opportunities that are most likely to be materially adjusted in the next reporting period has not been performed in 2024.

Disclosure Requirements in ESRS Covered by the Sustainability Statement

Our sustainability statement is prepared with reference to the outcome of the double materiality assessment. The data reported has been assessed by the corporate functional owners for materiality in accordance with ESRS 1, section 3.2.

Please refer to the Appendix on page 195 for a content index of the Disclosure Requirements complied with, and a table of datapoints that derive from other EU legislation.

Environment

Climate Change

KONGSBERG is committed to and recognises the need to take an active role in the transition to a net-zero emissions society. To achieve the global climate goals, we must swiftly move from words to actions. Our ambition is to support our value chain in reaching its targets by 2050. At KONGSBERG, we are both impacted by and contribute to climate change through our operations. As a Group, we are exposed to physical climate risks in all future scenarios, while our business areas face varying degrees of exposure. We aim to take leading positions and seek opportunities in developing low-emission solutions, such as green shipping, sustainable ocean management, and offshore wind, actively contributing to the energy transition. Addressing these challenges and seizing opportunities is crucial for fostering strategic growth and sustainable innovation.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified several material impacts, risks, and opportunities for the sub-topics climate change mitigation, climate change adaptation, and energy.

ESRS sub-topic	Type	Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Climate change mitigation	Actual negative impact	KONGSBERG's sourcing of materials and components, such as steel, iron, and aluminium, results in emissions from production and transportation, negatively impacting climate change mitigation.	Upstream	Contributes indirectly	Short term
Climate change mitigation	Actual negative impact	Our activities necessitate staff travel by air and ground, both locally and internationally, contributing to increased emissions.	Own operations	Contributes indirectly	Short term
Climate change mitigation	Potential positive impact	Delivering solutions to renewable and green industries, such as wind power and carbon capture, contributes to reducing GHG emissions. Additionally, our technology can aid high-emission industries in lowering their operational GHG emissions.	Downstream	Contributes indirectly	Medium term
Climate change mitigation	Risk	Carbon pricing may lead to increased costs due to the additional expenses associated with emissions from our operations and supply chain.	Upstream Own operations	Not relevant for risks	Medium term
Climate change mitigation	Risk	Failure to meet our climate ambitions can have financial impacts across several areas, such as reduced access to capital or higher capital costs, and reputational risks that could lead to decreased sales.	Upstream	Not relevant for risks	Medium term
Climate change mitigation	Opportunity	The green transition will increase the demand for green business solutions. If effectively monitored and addressed, this presents an opportunity for KONGSBERG to strengthen our competitive advantage by positioning us as a leader in green solutions.	Downstream	Not relevant for opportunities	Medium term
Energy	Actual negative impact	We deliver solutions that depend on data centres, which rely on significant amounts of energy.	Downstream	Contributes directly	Short term
Energy	Actual negative impact	The assembly and manufacturing of KONGSBERG's products, along with the use of servers and IT infrastructure, result in significant energy consumption.	Own operations	Contributes directly	Short term
Energy	Risk	A lack of energy, or limited access to it, can hinder our growth ambitions, as energy is essential for the production of our products and services.	Upstream	Not relevant for risks	Long term
Climate change adaptation	Risk	There is a risk that increased extreme weather events may affect unprepared production facilities of our suppliers, potentially leading to significant production and delivery delays, which could impact our revenue.	Upstream	Not relevant for risks	Medium term

Climate Change Mitigation and Energy

Our production and assembly processes rely on energy and materials that emit greenhouse gases, contributing to climate change. Many of our products require fuel to operate, resulting in significant emissions in our downstream value chain. Additionally, we are responsible for indirect scope 3 emissions from purchased goods and services in our upstream activities, including transport and distribution. Part of our product portfolio comprises a significant amount of secondary materials and energyintensive input factors including categories such as fabrications, castings, forgings and electronics, made up of materials that include steel, copper, iron and aluminium.

Some of our products are fuel and energy agnostic, meaning they can operate using various energy sources. This flexibility allows them to adapt to different energy sources across land, sea, and space. Our products are designed to be long-lasting and efficient, supported by infrastructure for repairs and retrofitting, which helps keep materials and equipment in use longer.

We identify and measure greenhouse gas emissions from our operations and significant parts of our value chain. Our methodologies align with international standards, including the GHG Protocol and Science Based Targets Initiative (SBTi).

Climate Adaptation

Adapting to climate change is essential for maintaining the resilience and efficiency of our operations and value chain. Key risks include physical risks like extreme weather events and regulatory changes, while opportunities lie in developing innovative, energyefficient solutions.

We face physical climate risks across all future scenarios, with varying degrees of exposure in different business areas. Acute and chronic risks, such as hurricanes, extreme weather events, and changes in precipitation patterns, pose threats to personnel, operations, and supply chains. These risks can lead to operational disruptions and increased costs. Our transition risks are particularly related to increased costs of production inputs and regulatory changes. The transition to a renewable society presents uncertainty in timing and scope, impacting demand for our products and services. Regulatory frameworks, such as the IMO climate strategy and the EU's

emission reduction targets, drive a shift towards cleaner fuel alternatives. We can play a role in this transition by providing products that contribute significantly to energy saving, electrification, and efficiency improvements, such as energy-efficient ship designs and advanced propulsion systems.

Our strategic adaptability is explained in further detail in the Strategy, Business Model, and Value Chain chapter on page 45.

Policies

Type and name of governing document	Overall summary of content	Relevance for climate change
Code of Governance	Main governing document for KONGSBERG.	Establishes that KONGSBERG has a strategic focus in driving innovation to provide technical solutions that support the climate transition. Sustainability is acknowledged as a Group wide business priority.
Code of Ethics and Business Conduct	Outlines the principles for business conduct, including a chapter on reducing footprint in own operations and value chain.	Principles included for climate change mitigation and adaptation in own operations and value chain.
Directive for Environmental Reporting	Describes the methodology used to calculate KONGSBERG's GHG emissions and how climate and environmental data should be reported.	Establishes quarterly reporting for GHG emissions to integrate with the financial reporting cycle, main tool to monitor progress for climate change mitigation.
Sustainability assessment in decision-making	Outlines the principles for sustainability assessments in relation to decisions regarding investments and business development.	Establishes main principles for investment decisions including: 1) Climate targets (GHG emission reduction targets), 2) Impact on EU Taxonomy eligibility and alignment (CAPEX, OPEX and revenue). 3) Identification of, and eligibility towards relevant project categories towards KONGSBERG's sustainable finance framework, 4) Circularity, 5) Environmental risk assessment.
Supplier Conduct Principles	Describes KONGSBERG's expectations for suppliers.	A paragraph included on expectations for suppliers in terms of a precautionary approach to climate challenges and minimising adverse effects on the environment and natural resources.
Directive for Compliance due diligence, risk management and follow-up of the supply chain	Establishes the process to conduct supplier due diligence.	Mapping of climate and environment-related risks among KONGSBERG's suppliers.

All policies included in this overview apply to the whole Group, including all business areas, and are published on KONGSBERG's internal platforms. The documents that are relevant for suppliers and business partners are made available in appropriate channels. Business areas may have additional policies, strategies and procedures in relation to climate change mitigation and adaptation. In addition, certain business areas have developed their own sustainability strategies to support our overarching goals. The highest senior level accountable for all policies is the President & CEO, except for Code of Governance and Code of Ethics and Business Conduct, which is the responsibility of the Board. The execution and implementation of all KONGSBERG sustainability related policies is the responsibility of the sustainability leads of all relevant business areas and functions. The interest of key stakeholders is considered by placing emphasis on safeguarding affected communities and ensuring robust supplier relations and conditions in the content of the governing documents1 .

Overall, climate change mitigation and adaptation are covered in multiple aspects in our governing documents, as seen in the table above. Energy efficiency and renewable energy deployment are not mentioned specifically but are included as part of our climate goals approved by the Board and followed up by regular reporting. The policies are monitored through regular reporting (as specified in the governing documents), the business areas' business reviews, internal systems for monitoring and internal control, and control by external auditors specifically for climate accounting and reports.

Transition Plan for Climate Change Mitigation

The Net Zero strategy and transition plan are an integral part of our overall business strategy. The Board has the overall responsibility to review and approve the Group strategy and transition plan. This section will outline the goals, actions and resources allocated to meet our climate ambitions.

Our climate transition plan was published in the 2023 annual report and approved by the Board on 14 March 2024. During the development of the climate transition plan, action packages were defined to achieve our climate goals. Additionally, we developed a toolkit addressing how to influence downstream scope 3 emissions. This toolkit is anchored in the Board through the approval of the double materiality analysis, which was approved on 11 December 2024.

As of 31 December 2024, we have not prepared a plan that is fully in line with the requirements of the ESRS. The financial implementation of the plan is calculated for some specific measures, but not for the plan as a whole. The business areas will include this in their routines for financial planning from 2025. We are transparent about the status quo and the CAPEX and OPEX dispositions for which we have calculations, such as the Johnstown measures and the purchase of guarantees of origin. The reductions presented in the figure on page 60 are to be considered as estimates and will be detailed and specified as part of the work on the action plan for following up on our climate goals.

The overall responsibility for executing the transition plan within the business areas lies with the sustainability function.

Targets

In November 2023, KONGSBERG's climate targets for 2030 were verified by SBTi and our scope 1 and 2 targets were assessed to be compatible with limiting global warming to 1.5 degrees Celsius in accordance with the Paris Agreement.

The transition plan is based on four main targets to reduce the climate impact of our operations and to create business opportunities by enabling our customers and other stakeholders to do the same. Our GHG emission reduction targets include:

• Reduce absolute scope 1 greenhouse gas emissions from 2019 by 55 per cent by 2030
• Increase annual procurement of renewable energy certificates from 0 per cent in 2019 to 100 per cent by 2030 (scope 2, market-based).
• Engage 67 per cent of KONGSBERG's suppliers to set their own science-based targets by 2027 (scope 3), using 2021 as the base year.
• Reduce absolute greenhouse gas emissions from the use of sold products from 2021 by 25 per cent by 2030 (scope 3, category 11). Under Reassessment and potential resubmission.

In addition, we have established the following intensity targets:

• 25 per cent reduction in energy consumption per employee through energy efficiency measures from 2019 by 2030.
• 25 per cent reduction of greenhouse gas emissions from transport and distribution from 2020 by 2030 through optimization of the mode of transport, in collaboration with our carriers to reduce the total emissions per tonne-kilometre.
• 30 per cent reduction in greenhouse gas emissions per employee from business travel by air from 2019 by 2030.
• The action packages were developed in consultation with the business areas in 2023, and quarterly meetings were implemented in a sustainability forum across business areas and relevant functions.

All targets address our impacts and risks related to climate change. Our intensity measures are not approved by SBTi. The targets are not explicitly described in any of our governing documents but are approved by the Board and communicated through the 2023 annual and sustainability report. The effectiveness of our actions is tracked through our quarterly climate accounting, illustrating progress towards our targets. Our climate change targets are based on a scientific approach, approved by the Science Based Targets Initiative. The targets cover all our activities across the Group, including

our upstream and downstream value chain. Our targets align with the Paris Agreement's goal of limiting global warming to 1.5 degrees, in scope 1 and 2, and therefore also align with the political goals in Norway and the EU.

Process of setting targets

The work to set our emission reduction targets was initiated by the Corporate Management Team and sustainability leaders in 2021. The targets were developed without direct stakeholder involvement, but the Ministry of Trade, Industry and Fisheries has clearly stated that state-owned Norwegian companies, like KONGSBERG, should set reduction targets in line with the Paris Agreement. Furthermore, a scientific approach to target setting is required, with SBTi highlighted as the leading standard in the field internationally.

Progress towards target

We are building knowledge and assigning greater responsibility for our climate targets to the business areas to ensure desired progress. 2024 marks the second year we have a comprehensive scope 3 accounting and the first year we have implemented quarterly climate data reporting.

Through this work we have also improved our data quality which has helped us make adjustments in our climate accounts for scope 3, category 11. This is further explained under Recalculations and moving forward on page 63. The recalculation had implications for our target connected to scope 3, category 11 and we are in dialogue with SBTi about a possible adjustment. We are still publishing the target as we have publicly committed to it.

The increase in scope 1 emissions from the 2019 baseline has several causes. From 2019 to 2023, more units have been included in the reporting, and some units have reported additional sources of fossil fuel consumption. Thus, our reporting has improved in quality and scope over time, alongside increased activities.

In 2025, we will focus specifically on our scope 1 emissions. Despite being a rapidly growing company, we expect to reduce emissions from fossil sources in line with our 2030 target. The emission reductions at Kongsberg Technology Park in 2024 provide a foundation to continue this work towards achieving our goals. We have not made specific calculations on expected emission reductions but will develop this work in 2025.

Progress on our targets is described in the table below. We make progress towards the SBTi targets not covered by scope 3, category 11. In addition, it is worth noting that even though we grew in 2024, we operated with approximately the same electricity consumption as in 2023. The climate targets therefore contribute to a more efficient operations at KONGSBERG.

Kongsberg has an ambition to reach net zero by 2050, corresponding to a 90 per cent reduction in absolute emissions. We have not specified this in our transition plan and have not fully studied the consequences of this. Nevertheless, this sets a direction for our work, and we will work to make plans for how this is possible to achieve. The most significant emissions in our greenhouse gas inventory are related to our value chain, in particular purchased goods and services (scope 3, category 1) and use of sold products (scope 3, category 11). To achieve results in scope 3, we must collectively decarbonise production facilities, produce for circularity, engage on commitment targets with stakeholders in the value chain, and recycle resources already in use. Our transition plan does not require the use of nature-based solutions, carbon credits, or carbon removals.

Climate targets		Scope Decarbonisation measures	Action packages and measures	Progress towards target
Reduce absolute scope 1 greenhouse gas emissions from 2019 by 55% by 2030	1	Reduce the use of fossil fuels by switching to environmentally friendly fuels and energy sources	Package 1: Operational Improvements	17% increase in absolute greenhouse gas emissions since the base year. Reduction of 3% from 2023 to 2024. Emissions in the base year were 1,255 tons of CO2e, in 2024 the emissions were 1,473 tons and will be reduced to 565 tons of CO2e in 2030.
Increase annual procurement of renewable energy from 2019 to 100% by 2030	2	Procurement of certified renewable electricity. 80% by 2025 and 100% by 2030	Package 2: Facility Programme	The target of 70% guaranteed renewable electricity was achieved in 2024. Actual emissions in the base year were 59,974 tonnes CO2e and 22,071 tonnes CO2e in 2024. Emissions in 2030 will be 0.
Engage 67% of KONGSBERG's suppliers to set their own science-based targets by 2027, using 2021 as the base year	3	Program for our suppliers which includes conferences and webinars with information on how to set science-based climate targets and requirements for climate accounting. Follow up is conducted through IntegrityNext. This will contribute to the reduction of emissions from our purchased products and services.	Package 3: Scope 3 Upstream	By the end of 2024, 33% of our suppliers by spend are committed to SBTi or equivalent science-based targets.
Reduce absolute greenhouse gas emissions from the use of sold products by 25% by 2030	3	Research and development of optimal solutions for, and together with customers. Strategic projects for increasing electrification, partnerships for the maritime transition and digitalisation.	Measures for Scope 3 Downstream	The target for scope 3, category 11 is under review and recalculation.
25% reduction in energy consumption per employee through energy efficiency measures from 2019 by 2030.	1 & 2	Continuous energy analysis for existing buildings to identify and prioritise opportunities, costs, and investments in energy efficiency. This includes both maintenance and major investments such as the transition to alternative energy sources for buildings and sites. Assessment of the most climate-friendly solutions in the lease or purchase of new buildings. This is part of the KONGSBERG Facility Programme.	Package 2: Facility Programme	15% reduction per employee from the base year.
25% reduction of greenhouse gas emissions from transport and distribution from 2020 by 2030 through optimization of the mode of transport in cooperation with our carriers to reduce the total emissions per tonne-kilometre.	3	Optimise the mode of transport in cooperation with our carriers to reduce the total emissions per tonne-kilometre.	Package 3: Scope 3 Upstream	The plan for annual intensity reductions is on track and the reduction in 2024 was 3%. Actual emissions in the base year were 18,051 tonnes CO2e and 21,584 in 2024. Actual emissions in 2030 have not been estimated.
30% reduction in greenhouse gas emissions per employee from business travel by air from 2019 by 2030	3	Reduce flights per employee through use of online meetings, reduce the number of employees travelling to conferences etc.	Not Relevant	69% reduction in relative emissions per employee from the base year. Actual emissions reduced by 17%. Actual emissions in the base year were 33,782 tonnes CO2e, reduced to 13,795 tonnes CO2e in 2024. Estimated emissions in 2030 are 40,250 tonnes CO2e.

Actions and Resources

We understand action packages as ways to group climate change mitigation efforts, ensuring that planned actions are designed to meet our reduction targets. In 2024, we worked to establish these packages based on our climate risk analysis, considering two scenarios, including one compatible with the 1.5-degree goal. The climate risk analysis mapped relevant developments related to environmental and societal changes, including physical and transition risks. The action packages are as follows:

• Scope 1, 2 and 3, Operational improvements: Shift from a top-down to bottom-up approach for the sustainability strategy to improve data quality, ensure more targeted actions, increased competence in business units, and strengthen the integration of financial functions.
• Scope 1 and 2, Facility programme: A working group consisting of facility managers from the business areas and other relevant functions.
• Scope 2, Renewable energy certificates: Purchase guarantees of origin for all scope 2 market-based emissions in Norway and international locations.
• Scope 3, Upstream: Supplier engagement, upstream transportation and distribution, including business travel and commuting.

All of the actions included in these levers are approved or pending approval by the appropriate functions in KONGSBERG or relevant business areas, to ensure the allocation of necessary resources.

The financial impact of implementing this plan has been calculated for some of the specific measures, but not for the plan as a whole. The business areas will include this in their financial planning routines from 2025. As of 31 December 2024, the Group has not prepared a plan in compliance with the EU taxonomy.

Operational improvements (scope 1, 2 and 3)

In 2024, the sustainability functions in the business areas were strengthened as part of the transition from a top-down to a bottom-up sustainability strategy. The aim is to improve data quality and ensure more targeted actions. This shift began in 2024 and will continue in 2025, with business areas responsible for:

• Conducting and completing double materiality analysis that will be aggregated at Group level.
• Conduct business area specific climate risk analysis
• Deliver autonomous and complete climate inventories for scope 1, 2 and 3
• Deliver business area specific transition plans to support and strengthen the Group transition plan
• In 2024, we implemented quarterly reporting on climate and environmental data, and we will continue in 2025 to align this reporting with the deadlines of quarterly financial reporting.

These actions do not require significant financial investments but will demand additional resources in the business areas for implementation and increased responsibilities. We have not made calculations of the expected reduction in emissions for the operational improvements.

Facility Programme (scope 1 and 2)

The reduction of our own greenhouse gas emissions will primarily occur through transitioning from fossil fuels to biofuels, increasing electrification of our operations, actively improving energy management, and continuing the shift to more electric vehicles. In 2023, we analysed our portfolio of Norwegian-owned buildings to map and plan climate and environmental measures. This work continued through the Facility Programme, a working group consisting of facility managers from business areas and other relevant functions. The Facility Programme is tasked with monitoring and implementing necessary actions to ensure we meet our targets for scope 1 and 2 emissions and achieve a 25 per cent reduction in energy consumption through efficiency measures by 2030. Our goal is to increase revenue and the number of employees without a corresponding increase in energy consumption, achieving growth while reducing emissions in line with our SBTi targets for scope 1 and 2. These actions are ongoing and align with the overall timeframe of our climate strategy. Important measures have been identified and implemented, however, the work is ongoing and to fully achieve our targets we depend on identifying and implementing further measures. A complete CAPEX plan for these measures has not yet been calculated and will be developed by individual business areas. We do not expect CAPEX costs to be significant.

Johnstown

In 2024, several global measures were initiated to support the Facility Programme's goals. The Kongsberg Defence & Aerospace facility in Johnstown, Pennsylvania, USA, accounts for approximately 16 per cent of KONGSBERG's top five scope 1 emission points. About 15 per cent of Johnstown's energy consumption currently comes from natural gas (scope 1), primarily used for heating.

In 2024, Kongsberg Defence & Aerospace approved an investment plan to transition to fully electric heat pumps at the Johnstown facility, aiming to significantly reduce natural gas usage. Seventeen outdated ventilation units will be replaced by electric heat pumps by 2028, reducing scope 1 emissions by approximately 45 per cent. Allocated resources to the Johnstown project has an approved frame of MNOK 3.5 to 4.5 (CAPEX) in phase 1 (2026-2028).

Mawson Lakes Facility

The Kongsberg Defence and Aerospace facility in Mawson Lakes, Adelaide, Australia, opened in 2024 and aims to achieve LEED Platinum status, the highest level of sustainability under the international Leadership in Energy and Environmental Design principles. The Mawson Lakes facility demonstrates how we can pursue growth towards 2033 while focusing on energy-efficient solutions to align with our scope 1 and 2 climate targets.

Initiatives at the Mawson Lakes facility include using lower-carbon concrete, installing a 99 kW solar system, maximizing natural light, reducing reliance on air conditioning with heated flooring, and implementing digital environmental controls. A complete CAPEX for these environmental measures has not been calculated. We have not made calculations of the expected reduction in emissions for this measure at Mawson Lakes.

Kongsberg Technology Park (KTP)

At Kongsberg Technology Park, we continued in 2024 to work on energy efficiency measures, reducing the use of fossil fuels, and increasing efficiency in the production of district heating, cooling, and compressed air for businesses in the technology park.

Results in 2024:

• Scope 1 emissions reduced from 400.0 tonnes in 2023 to 296.0 tonnes.
• Use of electricity reduced from 34,569 MWh in 2023 to 31,651 MWh.
• Use of LPG (Liquefied Petroleum Gas) reduced from 134.6 tonnes in 2023 to 100.1 tonnes.
• Use of HVO (Hydrotreated Vegetable Oil) reduced from 101.5 tonnes in 2023 to 68.7 tonnes.

Recovered energy produced at the KTP Energy Recovery Facility increased from 25,090 MWh in 2023 to 28,978 MWh in 2024. The main contributor to enable these positive results is related to energy efficiency improvements at the Energy Recovery Facility.

The total reduction in scope 1 emissions at KTP from 2023 to 2024 is 26 per cent.

This action did not require significant monetary amounts to implement. We have made assumptions on the expected reduction in emissions for these measures.

Renewable energy certificates - 100 per cent renewable energy in own operations

In 2024, the sustainability and finance functions at Group structured the plan to increase annual procurement of renewable energy to 100 per cent by 2030. In the plan, we have outlined the roadmap to cover energy use in all Norwegian and international facilities, as well as the financial plan for the purchase of renewable energy from 2025 to 2030. The roadmap to 2030 will be further developed in 2025. The current plan started in 2023, where we purchased guaranteed renewable electricity for a volume of 75,078 MWh covering 60 per cent of our total electricity consumption in 2023.

For 2024, 97,013 MWh of our electricity consumption is guaranteed renewable power, corresponding to 71 per cent of total electricity consumption. Of this, 97 per cent were unbundled guarantees of origin, while the remaining 3 per cent were unbundled guarantees of origin. The purchase of 94,254 MWh of unbundled guarantees in the Norwegian market in 2024 corresponds to an emission reduction of 56,458 tonnes CO2e calculated using a market-based approach. In 2025, we will increase to 80 per cent and aim for 100 per cent for 2030. We spent MNOK 6.9 of operating costs on the purchase of renewable energy certificates for 2024, and purchases are budgeted for in 2025.

Activities related to indirect GHG emissions (scope 3)

Upstream action packages

We are committed to a target that 67 per cent of our suppliers (by spend) will have their own science-based targets in line with the Paris Agreement by 2027. This applies to all business areas. The supplier follow-up process is supported by IntegrityNext, a digital supplier portal for ESG and compliance, including a greenhouse gas emissions module for suppliers. Phased KPIs have been established to reach the 2027 target, with a Group achievement of 33 per cent in 2024, against a target of 22 per cent. Kongsberg Maritime and Kongsberg Discovery contributed 25 per cent, while Kongsberg Defence & Aerospace contributed 42 per cent. This action did not require significant investment or operational expenses in 2024.

For scope 3 upstream transportation, we have set a target to reduce our carbon intensity emissions by 25 per cent (gCO2e/tkm) by 2030. In 2024, we achieved a three per cent reduction, on track to meet the target. Initiatives include transitioning from air freight to lower carbon intensity transport, volume consolidation, and logistics optimization with strategic partners.

This action did not require significant monetary amounts to implement.

In addition to these action packages, we have measures that demonstrate our active contribution to emission reductions in the value chain:

Downstream measures

This package covers our engagement and collaboration with authorities, academia, central trade unions, industry and business organisations, and NGOs working towards a zero-emission society. Since the majority of scope 3, category 11 emissions are linked to Kongsberg Maritime's sold products, these measures are specific to Kongsberg Maritime. Measuring the impact of scientific research on our scope 3, category 11 emissions is challenging, but funding and conducting research is essential to support emission reductions in line with the Paris Agreement.

Other actions are being evaluated in line with a possible resubmission of the target for scope 3, category 11. Regardless, Kongsberg Maritime continues to play a crucial role as a stakeholder in relevant organisations, forums, and scientific research, collectively working towards achieving the International Maritime Organization (IMO) targets and the green transition at sea.

SEAEurope (Shipyards' & Maritime Equipment Association of Europe): SEA Europe represents the civil maritime and marine technology industry in Europe. We are represented on the board and in several relevant working groups, including the working groups for technology and the environment. This provides us with the opportunity to address and give input to IMO's climate strategy and the EU's Net-Zero Industry Act.

Waterborne Technology Platform: The European research and innovation platform for waterborne industries. Kongsberg Maritime is represented in the Partnership Board and in relevant working groups.

Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping: The Mærsk Mc-Kinney Møller Center is a non-profit, independent research and development centre looking to accelerate the transition towards a net-zero future for the maritime industry. The centre facilitates the development and implementation of new technologies, builds confidence in new technological concepts, and develops strategies to drive necessary systemic and regulatory changes. Kongsberg Maritime became a "Mission" ambassador for the centre in 2024.

The Green Shipping Programme: A Norwegian public-private partnership aimed at establishing the world's most effective and environmentally friendly shipping. This includes collaboration to find sustainable logistics solutions, cost-effective emission reductions, and green jobs.

Maritimt Forum: An interest organisation that unites all segments of the Norwegian maritime cluster, including employers and employees, and represents the cluster's common interests to national decision-makers. KONGSBERG currently holds the chairmanship of the central organisation. In 2024, Maritimt Forum continued to be a key player in collaboration between the government and industry in developing measures to achieve national climate goals. The ambition is for the maritime climate partnership to accelerate the maritime transition while supporting the export of green technology.

These measures are not linked to any significant monetary amounts for 2024.

Scientific collaboration and research initiated in 2024:

Project name Scope		Objective	Relevance for scope 3
WIND	Total budget of 15 MNOK with 12 MNOK support from the Research Council. Project owner is Sintef Ocean. Kongsberg Maritime is an industry partner.	Optimisation of wind-assisted propulsion.	Reduce energy consumption by optimally utilising wind assisted propulsion potential.
AirOcean	Total budget of 15 MNOK with 12 MNOK support from the Research Council. Project owner is Sintef Ocean.	Study the effect of air lubrication on ship resistance and identify solutions for optimal utilisation of this technology.	Reduced resistance through water to lower energy consumption.
PulsJet	Total budget of 13 MNOK with 6 MNOK support from the Research Council. Project owner is Kongsberg Maritime.	Utilise hydrodynamic effects known from the animal kingdom (e.g., squid) to achieve higher efficiency in propulsion systems during DP operations.	Reduced energy consumption in DP operations.
CALIPSO	Total budget of 25 MEUR, 100% funded by the European Defence Fund (EDF).	Integrate green technology developed in civilian applications into military ships and vehicles, adapting them to military requirements. Focus on green fuels and energy efficiency.	The goal is that military ships and vehicles also meet Green Deal requirements

Recalculations and Moving Forward

Scope 1 and scope 2 corrections for Johnstown, USA

In 2024, we discovered errors in the previously reported scope 1 and scope 2 greenhouse gas emissions at our Johnstown unit in the USA, related to natural gas and electricity consumption. This prompted corrections to the 2023 data for Johnstown. However, the errors accounted for less than one per cent of the base year for the SBTi target, so no changes were made to the base year emissions.

Errors in Dataset for Scope 3, Category 11 Use of Sold Products

At the end of 2024, we identified an error in the scope 3 dataset related to emissions from sold products. Several products in the controllable pitch propeller (CPP) segment were omitted from calculations for the base year, 2022, 2023, and 2024. Including this product in the calculations exceeds the thresholds for recalculation according to SBTi and internal directives. Therefore, scope 3, category 11 emissions were recalculated for the base year, 2022, 2023, and 2024 in this report. After confirming the error, we notified SBTi of the need for recalculation. This error also affects our ability to meet the approved target in its current form. We have begun reassessing the target for scope 3, category 11, and are considering submitting a new and updated target to SBTi in 2025.

Moving forward

Until 2030, we will work diligently towards the targets defined in our commitment to SBTi. We will create a roadmap for how we can continue to drive emission reductions towards 2050. In 2024, we continued work on business area-specific transition plans. In October 2024, Kongsberg Defence & Aerospace published the first draft of such a plan. The roadmap will be accompanied by assessments of relevant climate-related risks and opportunities for KONGSBERG and the business areas.

Each year, we will measure and report the status of our targets. Greenhouse gas emissions will be reported for each category, every year from the base year to the reporting year. Progress towards targets may vary each year and by category. Whether emission reductions occur immediately or more towards the end of the period will vary between categories, units, and types of actions. Each target and annual progress will be continuously assessed throughout each reporting year, including evaluations of the need for additional efforts to ensure the target is met on time.

Potential locked-in emissions

Our emissions from scope 3, category 11, are our most significant greenhouse gas emissions. These emissions are calculated by multiplying the sales volume of products in the reporting year by the estimated direct emissions during their use phase, over an estimated 25-year lifespan. This equates to 28 million tCO2e if the current fuel mix is used, discounted to 2024. However, we do not consider these emissions to be locked in due to the agnostic nature of our products. Our thrusters and controllable pitch propellers can be powered by both fossil and renewable energy sources, allowing the products, with an estimated 25-year lifespan, to be used throughout the green transition in the maritime industry. In our 2024 climate accounts, we present our emissions adjusted for the IMO climate targets for scope 3, category 11 use of Sold Products. These illustrate how emissions from our products sold in 2024 will decrease until 2049, when the international shipping fleet will operate with net-zero technologies. As our products are agnostic, we have not identified any business activities in our portfolio that are incompatible with the transition to a net-zero society.

Metrics for Climate Change Mitigation

Energy Consumption and Mix

Energy consumption and mix related to own operations	2024
Coal and coal products (MWh)	0
Crude oil and petroleum products (MWh)	1,550
Natural gas (MWh)	3,678
Other fossil sources (MWh)	1,402
Purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	60,242
Total fossil energy consumption (MWh)	66,872
Share of fossil sources in total energy consumption	36%
Nuclear sources (MWh)	0
Share of nuclear sources in total energy consumption	—%
Renewable sources, incl. biomass (MWh)	1,626
Purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	97,013
Self-generated non-fuel renewable energy (MWh)	18,042
Total renewable energy consumption (MWh)	116,681
Share of renewable sources in total energy consumption	64%
Total energy consumption (MWh)	183,553

Total energy intensity (MWh/MNOK)1 3.76

1 All KONGSBERG activities are classified as climate-intensive. Therefore, intensity is calculated based on total energy consumption relative to the company's total net revenue as reported in the financial statements on page 110.

Energy production and mix	2024
Non-renewable energy production (MWh)	0
Renewable energy production (MWh)	28,986
Total energy production (MWh)	28,986

Gross scope 1, 2, 3 and total GHG emissions

	GHG Emissions (tCO2e)
		Retrospective			Milestones and target years
	Base year	2023	2024	Change from 2023	2025	2030	2050	Annual % Target / base year
Scope 1 GHG emissions1
Gross scope 1 GHG emissions (tCO2eq)	1,255	1,520	1,473	-3%		-55%
Percentage of scope 1 GHG emissions from regulated emission trading schemes (%)		0	0
Scope 2 GHG emissions1
Gross location-based scope 2 GHG emissions (tCO2eq)	9,582	7,126	8,100	14%
Gross marked-based scope 2 GHG emissions (tCO2eq)2	54,974	28,535	22,071	-23%		-100%		-70%
Significant scope 3 GHG emissions
Total gross indirect (scope 3) GHG emissions (tCO2eq)3		15,451,617	13,561,458	-12%
1 Purchased goods and services	1,456,421	1,868,339	1,826,892	-2%
2 Capital Goods	8,447	368	575	56%
3 Fuel and energy-related activities (not included in scope 1 or 2)	2,485	2,463	2,944	20%
4 Upstream transportation and distribution4	18,051	21,687	21,584	—%	n.a.	-25% intensity	n.a.	n.a.
5 Waste generated in operations5	206	326	42	-87%
6 Business travel6	33,782	16,585	13,795	-17%
7 Employee commuting7	10,890	11,432	5,360	-53%
8 Upstream leased assets	0	701	791	13%
9 Downstream transportation and distribution4	14,881	13,313	19,257	45%	n.a.	n.a.	n.a.	n.a.
11 Use of sold products	28,171,443	31,350,764	28,327,337	-10%
11 Use of sold products (IMO adjusted)	13,307,272	13,503,387	11,570,713	-14%
12 End-of-life treatment of sold products	160	132	134	2%
13 Downstream leased assets	5	261	335	28%
15 Investments8	12,766	12,624	99,035	684%
Total GHG emissions
Total GHG emissions (location-based) (tCO2eq)	n.a.	15,460,263	13,571,031	-12%
Total GHG emissions (market-based) (tCO2eq)	n.a.	15,481,672	13,585,002	-12%
GHG intensity, location based (tCO2e/mill NOK net revenue)9	n.a.		0.278
GHG intensity, marked based (tCO2e/mill NOK net revenue)9	n.a.		0.278

1 Scope 1 and scope 2 for Kongsberg Defence & Aerospace in Johnstown for 2023 have been corrected for errors in previous reporting. The error was not sufficient to trigger recalculation of emissions in the base year.

Scope 2 target achievement is measured in percentage of purchased guarantees of origin in relation to consumption. The target for 2024 was 70 per cent.

Total scope 3 emissions based on category 11 Use of products sold (IMO adjusted). Reported scope 3 emissions are based on a combination of supplier-specific primary data and estimates based on static data and generic conversion factors, see further description under the chapter Methodology below.

4 As part of continuous improvement work, the data scope has been improved and more deliveries have been included in consultation with our transport suppliers. Historical figures have been corrected based on this. Target achievement is an intensity measure measured in gCO2e/tkm. 5 Reduction from 2023 to 2024 is mainly due to changes in conversion factors from Defra.

6 Includes emissions from business travel by air, based on reports from the travel agencies that cover the majority of our business travel.

2

3

7

New calculation method introduced for 2024 based on updated travel habits survey. 8 KONGSBERG's share of emissions from KSAT (50% ownership) and Patria (49.9% ownership). For 2024, emissions from Patria include scope 1, scope 2 (market-based) and scope 3. KSAT includes scope 1 and scope 2 (market-based). The increase from 2023 to 2024 is mainly due to the inclusion of scope 3 for Patria.

9 Total greenhouse gas emissions (scope 1, 2 and 3) relative to net sales as reported in the Group's financial statements, see the Income Statement on page 110.

Biogenic CO2 emissions from the use of HVO and other biodiesel in KONGSBERG units are estimated at 307 tonnes CO2 in 2024, based on reported consumption and conversion factors from Defra. Biogenic emissions from HVO and additional biodiesel are not included in the reported scope 1 emissions.

The calculations of categories 4, 5 and 15 are based on primary data delivered from suppliers or other stakeholders in our value chain. This only amounts to 0.4 per cent of our total scope 3 emissions in 2024. The remaining categories in scope 3 are based on direct data from our own activities such as data related to production and spend in combination with emission factors from different sources such as Defra and Emisoft. For a more detailed description of the categories see the following Methodology section.

Methodology

The purpose of this section is to describe the methods we use, the emission factors, the inclusion of the value chain in the accounts, uncertainties along with a description of the data collection process, assumptions and extrapolations used for the greenhouse gas emissions data.

Our GHG inventory is prepared in accordance with the GHG Protocol, specifically the GHG Corporate Standard, Corporate Value Chain (scope 3) Standard, scope 2 Guidance, and scope 3 Calculation Guidance. We use the operational control consolidation method, meaning emissions from companies we control are included, specifically those we own more than 50 per cent of. We report on all locations that are not offices, and offices with more than 10 full-time equivalents (FTE), as a minimum. The reporting covers more than 98 per cent of all FTEs, and emissions from excluded units are estimated to be below two per cent.

The reporting period for our GHG metrics aligns with our financial reporting period, from 1 January to 31 December each year. Quarterly reporting of environmental and climate data was introduced in 2024 to strengthen internal control and the strategic capacity of each business area.

Emission calculations use factors from the Department for Environment, Food and Rural Affairs UK (Defra), Association of Issuing Bodies (AIB), U.S. Energy Information Administration (EIA), and climate transparency reports. The Global Warming

Potential (GWP) of the emission factors used in calculating CO2e is based on the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report over a 100-year period. The GHG inventory provides emissions in CO2 equivalents (CO2e), including CO2, CH4, and N2O. Emissions of other GHG gases are not significant.

The aim of our reporting processes is to provide data that is complete, accurate and relevant to our operations. If any data is later found to be materially incorrect or if conversion factors have materially changed, this will be clearly indicated, and the data will be updated.

Baseline years for climate change submission inventory

Our targets for reducing greenhouse gas emissions include a 55 per cent reduction in scope 1 emissions by 2030, starting from the base year 2019. For scope 2, we have committed to purchase guaranteed renewable electricity (100 per cent) by 2030, starting in 2023. The choice of base year 2019 for scope 1 and 2 is based on the fact that this was the last year before Covid-19 with comparable operations. We have chosen 2021 as the base year for our scope 3 targets due to challenges in obtaining reliable and complete historical data. However, there are two exceptions to this. For business travel we have chosen 2019 as the base year, as this was the last year of comparable operations before the Covid-19 pandemic. For transport and distribution we have chosen 2020 as the base year, as this was the first year we had comparable data. The engagement target, where 67 per cent of our suppliers (by spend) should have science-based targets, is to be achieved in 2027 (covering categories 1, 2 and 4). The target of a 25 per cent reduction in emissions from the use of sold products (category 11) shall be achieved by 2030, however the target is under revaluation and with possible resubmission.

Recalculations principles

To ensure that GHG accounting is consistent, comparable, and accurate across time, calculations and targets must be reviewed and, if necessary, recalculated and revalidated. A retroactive recalculation will take place in the case of significant changes or identified prior period errors that increase or decrease base year emissions by a minimum of the chosen significance threshold of five per cent. Our principles are defined in accordance with the GHG Protocol's guidance tracking emissions over time.

SBTi methodology

KONGSBERG has followed the methodology and guidance documents from SBTi in

setting targets. This ensures that the reductions KONGSBERG has committed to are in line with the latest science and the 1.5°C degree ambition of the Paris Agreement. Since KONGSBERG is not defined to be in any of the sectors where SBTi has developed a Sectoral Decarbonization Approach (SDA), the targets are in line with a general methodology. These methods are constructed from three main elements: a greenhouse gas (GHG) budget, a set of emission scenarios, and an allocation approach. The SBTi's procedure for developing a method begins with determining a representative set of emissions scenarios that are considered plausible, responsible, objective, consistent, and aligned with a specific temperature goal (1.5˚C or WB-2˚C of global warming). SBTi scenarios are drawn primarily from the Integrated Assessment Modelling Consortium (IAMC) and the International Energy Agency (IEA)

Updated methodology on Use of sold products (scope 3, category 11)

In accordance with the IMO transition plan, we report on scope 3, category 11 with two different methodologies as outlined below.

• 1. Conservative method: The methodology used in the 2023 Annual and Sustainability report. This is an estimate based on no change in emissions in the maritime industry.
• 1. Method with adopted emission reductions: A methodology that includes the IMO's adopted emissions reductions towards 2050.

To succeed in reducing emissions in scope 3, category 11 at the scale required, KONGSBERG depend on innovation and collaboration throughout the value chain, and we expect our suppliers and markets to develop in line with global climate goals. Essential to our targets is the 2023 IMO Strategy on Reduction of GHG Emissions from Ships and the following indicative checkpoints:

• 2030: Reduce total annual GHG emissions from international shipping by at least 20 per cent compared to 2008.
• 2040: Reduce total annual GHG emissions from international shipping by at least 70 per cent, striving for 80 per cent, compared to 2008.

Our emission reduction targets in scope 3, category 11 are thus subject to externalities where our impact is limited.

Direct GHG emissions (scope 1)

Scope 1 includes emissions from the use of fuel and gas for heating processes and fuel for vehicles and equipment, as well as from the production of district heating at Kongsberg Technology Park. The small amounts of emissions related to the burning of biofuels are included in scope 1, and their value chain emissions are included in scope 3 (Fuel and energy related activities). No biogenic CO2 emissions are reported in other scope 3 accounts. Out- of-scope emissions have not been calculated or included in this report. Currently, zero per cent of scope 1 GHG emissions are regulated by emission trading schemes. The higher heating value is applied for fuels used in scope 1 reporting.

Indirect GHG emissions from purchased electricity, heat and cooling (scope 2)

Scope 2 includes emissions from electricity consumption, district heating and district cooling from external suppliers. The CO2e emission factors used for electricity include both market-based and location-based method, in accordance with GHG Protocol Scope 2 Guidance. Emission factors for district heating are site- and supplier-specific. Purchases of guarantees of origin for electricity are made with approved certificates, covering 70 per cent of electricity consumption.

Value chain GHG emissions (scope 3)

The scope 3 emissions inventory accounts for indirect greenhouse gas emissions from sources in our value chain. For scope 3, we have screened all categories and established a GHG inventory that covers all relevant categories in the value chain. The categories that are not relevant are: 10 Processing of sold products and 14 Franchises.

All relevant categories have been calculated and included in the inventory. Our calculations and estimates show that categories 1 Purchased goods and services, and 11 Use of sold products constitute over 90 per cent of our total GHG inventory (scope 1, 2 and 3 emissions).

Purchased goods and services and Capital goods

We have used a spend-based method where each expenditure is defined according to its category (Purchased goods and services or Capital goods), then categorised, mapped and matched with emission factors per product type. Expenditures covered by scope 1, scope 2 or other scope 3 categories are removed from the calculations to avoid double counting. Capital goods are defined as fixed assets or plant, property, and equipment (PP&E). In financial accounting, capital goods (sometimes called "capital assets") are typically depreciated or amortised over the life of the asset. For

2 Refer to "Country specific electricity grid greenhouse gas emission factors - 2024", published by Carbon Footprint Ltd. on 31 July 2024. 3 Refer to "Greenhouse gas reporting: conversion factors 2024", published by the Department for Energy Security and Net Zero (UK Government) on 8 July 2024.

scope 3, category 2 Capital Goods, we account for the total cradle-to-gate emissions of purchased capital goods in the acquisition year, according to the GHG Protocol methodology. We have used spend-based emission factors in our 2023 and 2024 reports but will increase precision over time as illustrated below.

Fuel and Energy related activities

The calculation uses the same consumption data as reported for scope 1 and 2, based on data from internal sources (invoices etc.). Emission factors for the value chain emissions (well-to-tank) for all fuel consumption reported in scope 1 is applied. For all electricity consumption reported in scope 2, we apply emission factors related to the generation of electricity and transmission and distribution losses in the grid. The emission factors for the scope 3 emissions from electricity are country specific. The source for emissions factors is Carbon Footprint - Country specific electricity grid greenhouse gas emission factors - 20242 .

Upstream transportation and distribution

For the calculations of category 4 Upstream transportation and distribution, we have used supplier-specific data and emissions calculations. The transport providers use fuel-based calculations.

Waste generated in operations

Waste data is gathered from each reporting site within KONGSBERG. The data includes information about waste type, weight and disposal method, using emission factors based on a waste-type-specific method. The source for emission factors is Defra 2024 data3 .

Business travel

For booking flights, we use various travel agencies. These agencies calculate CO2 emissions for all flights and report passenger kilometres and emissions to KONGSBERG.

Employee commuting

For 2024, we updated our methodology for calculating employee commuting based on an internal global survey covering most business units. The survey provided information on commuting habits worldwide. We assigned specific emission factors for different transportation modes in the four largest countries by FTEs. For employees outside these countries, we used international standards. These emission factors are based on gCO2e/km and are multiplied by the commuting distance. Emissions are adjusted for the average number of weekly home office days reported in the survey.

Upstream leased assets

This category includes emissions from the operation of assets that are leased by a KONGSBERG unit and not already included in the scope 1 or scope 2 GHG inventories. Emissions are calculated based on reported area (square metres) leased and an average estimated electricity consumption per square metre, and country-specific location-based emission factors for electricity.

Downstream transportation and distribution

For calculating emissions from downstream transportation, we use the GHG Protocol's scope 3 guidance. The average result of category 4 calculations is used as a proxy for more generic emission factors. This average is combined with the number of shipments, assuming that emissions and transport types paid for by us and by customers are similar.

Use of sold products

This category accounts for indirect emissions associated with the lifetime emissions occurring in the use phase of products sold within a given year. Products from business areas Kongsberg Maritime and Kongsberg Defence & Aerospace were mostly treated as final products, with their own assumptions of use and emissions through their expected lifetime. The summary below describes how emissions from products sold by Kongsberg Maritime are calculated in this category. The number of units delivered is accounted for by using data from our ERP system and sales orders. The most significant emission sources (propulsion and winch) have been included. Some ERP data have been considered insignificant and not been included. The excluded products are typically electronic equipment consuming a smaller amount of energy.

MDO (Marine Diesel Oil) has been used as the fuel source for reporting in accordance with the IMO DCS report.

For some products, maximum nominal power has been based on assumptions when data was unavailable, with validation performed by product owners.

A 25-year lifetime is assumed for all units. This assumption is in line with the GHG Protocol for calculating category 11 (Use of sold products) emissions.

Internal sales, spare parts, and upgrades are removed from calculations to avoid duplicate reporting.

End-of-life treatment of sold products

All products sold during a reporting year are included in the reporting and calculated by using their weight, then divided into waste groups. Assumptions are made on treatment methods combined with similar waste-type emission factors as used for category 5.

Downstream leased assets

This category includes greenhouse gas emissions from the operation of assets that are owned by a KONGSBERG unit and leased to a third party, and where GHG emissions are not already included in scope 1 or scope 2. Emissions are calculated based on reported area (square metres) leased, average estimated electricity consumption per square metre, and the country-specific location-based emission factors for electricity.

Investments

Reported greenhouse gas emissions represent emissions from jointly controlled operations, associated companies, and other subsidiaries we own but do not have operational control over, proportional to our equity share in these companies. Emissions are gathered directly from the companies.

GHG removals and GHG mitigation projects

We have several targets setting a clear course towards a net-zero society by 2050. However, we have not yet determined the specific methods and frameworks to neutralise residual greenhouse gas emissions by 2050. This includes achieving approximately 90-95 per cent reduction in emissions, with potential sectoral variations aligned with recognised decarbonisation pathways. We will continuously evaluate options to neutralise these emissions.

Internal carbon pricing

Not relevant.

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Climate Change Adaptation

In addressing climate change, our approach to climate adaptation is crucial for ensuring long-term sustainability. We have identified significant climate risks through thorough analyses based on IPCC scenarios and are continuously working to integrate these into our strategic planning. To assess the strategy's adaptability against our material themes, we conducted a climate risk analysis to gain insight into the risks we face. Although we have not defined specific goals or measures for climate adaptation, we are continuously managing and monitoring these risks.

In 2022, we conducted our first climate risk analysis, introducing low-emission and high-emission scenarios. In 2023, we added a "middle scenario" based on current trends. The well-established global scenarios published by the IPCC are SSP1-RCP1.9 (low emissions), SSP2-RCP4.5 (medium emissions), and SSP3-RCP7.0 (high emissions). In 2023, we also expanded the analysis to include assessments against selected scenarios up to 2050. These scenarios align with the climate-related assumptions in our financial statements.

In 2024, we continued working on these scenarios to further assist our business areas in conducting their own climate risk analysis in 2025. Business areas will take full ownership of climate risk in 2025, based on Group requirements, with an approach based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). From 2025, risk assessments will be aggregated at the Group level, based on specific risk analyses from each business area. To build the necessary competence in the business areas, a workshop was held in autumn 2024 with representatives from the sustainability functions of the Group and business areas, HSE, compliance, and supply chain experts. Relevant financial functions from the business areas and the Group's finance department also participated to prepare for reporting the financial impacts of climate change. The results of the climate risk analysis is the foundation for our reporting climate risk in note 4, Management of capital and financial risks.

Negative change in EBITDA related to risks

Summary of Our Assessment of Climate Risks and Opportunities in 2024

With this background, we can summarise our analysis of climate risks and opportunities for 2024. We have identified both transition and market risks, as well as physical risks that may impact our operations. This insight is crucial for shaping our future strategy and ensuring we are well-positioned to address the challenges and opportunities presented by climate change.

• In the transition scenario, we expect to experience net costs in the three assessed years (2025, 2030, and 2050). Opportunities related to technology development have been identified, where KONGSBERG delivers cutting-edge technologies and meets the demand for increased volumes of sustainable products, but the potential risks are considered greater.
• Market risks and opportunities are expected to pose the greatest challenges for KONGSBERG. This includes declining revenues from oil and gas, increased costs for components and materials, and the possibility that sustainable products may become less competitive in markets outside Europe.
• Risks related to changes in guidelines, regulations, and regulatory requirements are expected to increase over time.

Physical risks and opportunities

As climate change continues, it may lead to increased demand for some of our technologies and products. Increasing storms and extreme weather could boost demand for solutions and technology of particularly high quality and robustness. However, the opportunities are expected to be smaller than the consequences of physical risks, leading to a net negative effect.

Our process for identifying, assessing, and addressing climate risks and opportunities from 2025 onwards will be conducted by the business areas on a quarterly basis, as part of the ordinary risk management process according to ISO 14001. Both risks and opportunities are assessed, and possible economic or strategic impacts and actions are identified. These assessments are elevated to relevant decision levels and evaluated quarterly by the Board.

Scenario	Category	Description	Risk / opportunity	2025	2030	2050
High emissions	Physical risks and opportunities	Acute risk pose physical threats to personnel and asset operations, creating barriers to fulfil contract agreements	Risk	1	2	4
		Acute and chronic, such as extreme weather events and precipitation changes, risks cause supply chain disruptions	Risk	2	3	4
		Increased demand for e.g., communication and surveillance technology and products adapted to extreme weather conditions	Opportunity	1	3	4
		Need to establish new revenue streams, such as renewable energy, to replace decline in oil and gas revenue	Risk	2	3	4
Low emissions	Market risks and opportunities	Lost competitiveness in markets outside the EU that have less stringent sustainability-related requirements	Risk	1	2	3
		Reduced supply of components and materials due to geopolitical conditions, changes in global value chains or physical risk	Risk	2	3	4
		Reduced access to capital due to inability to meet sustainability requirements or targets	Risk	1	2	3
		May manage to benefit from early entry or supply to new industries or technologies (e.g. aquaculture, offshore wind, hydrogen)	Opportunity	2	3	4
		Increased demand for service and MRO-activities.	Opportunity	2	3	4
Low emissions		Transition to renewable revenue streams and green investments not balanced with market demands for new technologies	Risk	2	3	4
	Technology risks and opportunities	Increased demand for sustainable and circular products make existing products and services more attractive and competitive	Opportunity	2	3	4
		Disruptive technologies (maritime transition/low-carbon) contribute to increased demand for integrated solutions and products	Opportunity	2	3	4
Low emissions	Policy & legal risks and opportunities	Introduction or increase of carbon tax, carbon pricing, volatile energy prices	Risk	2	4	4
		More stringent criteria related to energy efficiency and sustainability for real estate and facilities	Risk	1	1	2
		Reduced access to public funding for R&D due to stricter requirements for sustainable solutions/climate-related projects	Risk	1	1	2
		Increased requirements for documentation and reporting related to climate and sustainability	Risk	2	3	3
		Tougher regulatory requirements (e.g., IMO, EU ETS, Fit for 55) create demand for our solutions	Opportunity	1	3	3
		Increased access to public funding for sustainable R&D due to prioritisation by governments on energy transition	Opportunity	2	3	3
Low emissions	Reputation	Insufficient contribution to the green transition can make us less attractive to critical talent and other stakeholders	Risk	1	2	2
	risks and opportunities	Transparency and commitment to sustainability, such as impact documentation of products and ambitious climate targets	Opportunity	2	2	3

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We have focused on the vulnerabilities and opportunities considered to have the greatest impact on us and those with the highest degree of uncertainty.

We are working to adapt our business to the impacts of climate change but do not currently have formalised targets and actions. We are mapping the opportunities within climate change and adapting our business model accordingly. We see a clear opportunity linked to innovation and new business areas.

In 2023, we assessed the physical climate risk at our ten most important locations in Norway, aiming to implement necessary measures to protect employees, property, and business operations. This analysis ranked the priority locations based on nine risks such as flooding, rising sea levels, and landslides. The main conclusions of the report were that the short-term risk was not acute. We considered these conclusions to remain valid in 2024 and will continue to monitor them in 2025. However, we have assessed that acute and chronic risks can cause supply chain disruptions, site closures, contract breaches, etc. Considering that many of our deliveries are critical to ensuring national security and defence capability, it is a high priority to effectively identify, manage, and mitigate risks associated with our ability to deliver as agreed. We have thus identified critical components and suppliers to establish alternative procurement strategies, qualify secondary suppliers, remediate project planning and inventory management, and adapt products to identify alternatives to single-sourced products.

As a Group, we see increased demand for communication and surveillance equipment adapted to extreme weather conditions in all future scenarios. Our product range across the business areas is well-positioned to deliver in this market.

Market and technology risks and opportunities

Parts of our operations are exposed to the oil and gas industry, making them particularly susceptible to climate-related transition risks. However, our broad product portfolio in the maritime sector is particularly well-positioned to deliver technologies that contribute to a net-zero ocean economy.

Policy and legal risk

We monitor regulatory developments with external experts and distribute monthly newsletters to all relevant business areas about these developments. In 2024, we also conducted workshops on EU and Norwegian regulatory developments at our quarterly sustainability forums. The sustainability function in the business areas is responsible for implementing necessary actions to comply with stricter and more comprehensive environmental legislation.

Reputational risk

Our science-based climate targets were approved by the Science Based Targets initiative in 2023. We continue to take an active role in the transition to a zero-emission society and have not identified significant areas where reputational risk could impact KONGSBERG.

Sustainability Statement / Environment / E-5 Resource Use and Circular Economy

Resource Use and Circular Economy

KONGSBERG aims to play an active role in the global transition towards a circular economy and to enhance the circularity of our products. We aim to integrate circular principles across our operations and value chain.

We rely on a steady supply of raw materials, including rare and primary materials, to meet our commercial commitments. Success in resource use and circular economy is crucial for maintaining and further developing our business model and meeting the market's growing expectations for sustainable solutions.

Our approach to circular economy incorporates definitions from the OECD and CSRD. This ensures compliance with EU regulations, promotes transparency, and aligns with global sustainability standards.

Material Impacts, Risks, and Opportunities

KONGSBERG's double materiality assessment has identified several impacts, risks, and opportunities related to resource use and the circular economy. Those considered material are described in the table to the right. These impacts are particularly significant for Kongsberg Defence & Aerospace and Kongsberg Maritime, as these business areas rely on larger quantities of resources to fulfil long-term contractual obligations.

As part of our materiality assessments, we have identified non-material risks and opportunities related to end-of-life product management, efficient use of raw materials and components, and the implementation of green steel. Although these were not considered material, we believe these areas could become important for KONGSBERG in future analyses.

ESRS sub-topic	Type	Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Resource inflows	Actual negative impact	We use critical raw materials (CRMs) such as nickel, cobalt, and copper in our products. To support the decarbonisation of energy systems, significant amounts of critical minerals like lithium, nickel, cobalt, copper, and rare earth elements (REEs) are required. These materials are associated with high risks of human rights violations and poor environmental management. The demand for CRMs can affect the global availability and prices of these materials, potentially leading to supply chain challenges and increased costs.	Upstream	Contribute indirectly	Short term
Resource inflows	Actual negative impact	Our revenue depends on the delivery of resource-intensive products, which require the procurement of raw materials, including primary materials, and components for production. Many of these materials are limited, and their extraction and use can have significant negative environmental impacts. This dependency poses a risk to sustainable resource management and can lead to increased costs and supply chain challenges.	Upstream	Contribute indirectly	Short term
Resource inflows	Actual negative impact	We procure products for our own operations, which are often packaged in materials such as plastic, paper, cardboard, and wood. Packaging is necessary to protect incoming goods during transport and upon arrival. However, the need for packaging poses environmental risks, particularly related to waste management and recycling. Additionally, improper handling of packaging materials can lead to increased waste and potential breaches of environmental regulations.	Upstream	Contribute indirectly	Short term
Resource outflows	Actual negative impact	We use materials such as plastic, paper, cardboard, and wood to package products sent to customers. Packaging is essential to protect goods during transport and upon arrival. However, the need for packaging poses environmental risks, particularly concerning waste management and recycling. Additionally, improper handling of packaging materials can increase waste and potentially violate environmental regulations.	Downstream	Contribute directly	Short term
Resource outflows	Actual negative impact	Many of our deliveries to the defence and aerospace industries are subject to regulations, including export restrictions, safety stock requirements, delivery reliability, and limited product lifespans. These regulations can in some cases lead to inefficient resource use and environmental challenges, such as overproduction. This poses a risk, as it can impact both operational efficiency and environmental considerations.	Downstream	Contribute directly	Short term
Resource outflows	Actual negative impact	We generate waste throughout the entire value chain, from the procurement of raw materials to the production and delivery of finished products. This waste generation poses a risk of environmental impact, including challenges related to waste management, recycling, and compliance with environmental regulations.	Upstream, Own operations and Downstream	Contribute directly and indirectly	Short term
Waste	Actual negative impact	We rely on IT equipment for the delivery of our products and services. This equipment has a limited lifespan and eventually becomes waste. In the defence sector, there are also special considerations for electronic waste containing memory, which requires these products to be incinerated upon disposal. This process poses a risk of environmental impact and can present challenges related to secure waste management and regulatory compliance.	Own operations	Contribute directly	Short term

Sustainability Statement / Environment / E-5 Resource Use and Circular Economy

How We Work with Resource Use and Circularity

We have not yet established policies or actions to address the identified impacts, nor have we planned how to facilitate the reduction of primary raw materials in our products and increase the use of recycled or renewable resources. We also have not set overarching objectives for resource use and circularity, or targets to track the effectiveness of initiated activities. Currently, we have not set any timeframe for establishing these targets.

Variations in resource inflows and outflows across business areas highlight the need for tailored approaches to ensure that each unit's unique impacts and dependencies are effectively managed. To fully understand which policies, actions, and targets will have the greatest impact on the Group, we need deeper insights than we currently have to comprehend the challenges of each business area.

In the following sections, we will describe our existing approaches and strategies at a higher level. We will focus on the business areas with the greatest impact in this domain: Kongsberg Defence & Aerospace and Kongsberg Maritime.

Policies

KONGSBERG's Principles for Supplier Conduct are mandatory requirements that we expect all our suppliers to follow. Key requirements related to circularity include waste reduction, material reuse, safe handling of hazardous materials, and compliance with waste legislation. These principles are further detailed in the chapter 'Workers in the Value Chain' on page 95. In addition, Kongsberg Maritime has established its own procurement conditions based on these principles, which more specifically cater to their operations.

The directive 'Sustainability Assessments in Decision-Making' integrates sustainability assessments into all decision-making processes, including investments, mergers, acquisitions, and real estate. The directive applies to all entities where we have dominant influence and at all decision-making levels. In line with the CSRD's definition of a circular economy, the directive encourages designing products and materials according to circular principles, emphasising the EU's nine R-strategies4. Additionally, the directive highlights sustainability principles such as durability, reuse, repairability, disassembly, remanufacturing, or upgrading, and recycling. The directive is further detailed in the Policies chapter in Climate Change on page 56.

Kongsberg Defence & Aerospace's Sustainability and ESG-Strategy

Circular economy is strategically important in the defence industry. Over the past year, Kongsberg Defence & Aerospace has developed a comprehensive ESG strategy that includes key circular economy principles.

The strategy has been developed in line with the Paris Agreement, OECD guidelines, EU CSRD, and SBTi. The strategy is implemented through collaboration with strategic suppliers, including setting emission reduction targets and conducting due diligence to reduce the use of primary resources. Within the organisation, Kongsberg Defence & Aerospace focuses on efficient resource use, waste reduction, and promoting the use of regenerative resources. Efforts include considering material selection and product lifespan in product design, working to find innovative solutions, and enabling the reuse, recycling, and upgrading of materials.

Kongsberg Maritime's Circular Economy Initiatives

Kongsberg Maritime has established tailored packaging and shipping requirements for suppliers, approved and implemented in 2018. The requirements encourage suppliers to use recycled and recyclable materials. The packaging should be appropriately sized to minimise waste while protecting the product.

In 2023, Kongsberg Maritime established its own guidelines to promote sustainable product development and circular economy, focusing on the use of secondary raw materials. The guidelines require compliance with legal requirements and the Group's strategy, emphasising ISO 14001, life cycle assessment (LCA), the EU Waste Framework Directive (WFD), the EU Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), and the EU Directive on the Restriction of Hazardous Substances (RoHS).

In 2024, Kongsberg Maritime developed a waste management procedure outlining the minimum requirements for waste management for wholly-owned companies and subsidiaries. The procedure can also guide subsidiaries with less than 50 per cent ownership. Management is responsible for ensuring resources for compliance. It integrates legal requirements, the EU Waste Framework Directive, HSE principles, and industry standards. Roles and responsibilities are clearly defined, and compliance is monitored through gap assessments and periodic HSE rounds. The use of authorised waste contractors ensures environmentally responsible disposal. The procedure includes circular economy principles such as waste segregation and the waste management hierarchy, prioritising prevention, reuse, and recycling before disposal. Waste segregation and appropriate storage facilitate recycling and reuse, encourage resource management, and promote the use of secondary resources.

The Thruster Support Pool-Initiative

Kongsberg Maritime has established a Thruster Support Pool to meet customer demand for high quality and efficiency, as well as to ensure the longest possible lifecycle for our products. When a thruster is removed, it is sent to one of our specialised workshops, where it is cleaned, sandblasted, and primed. The unit is disassembled, inspected, and overhauled according to our specifications with original parts. Any model upgrades are included. The unit undergoes spin tests to detect leaks, and measurements of vibration and temperature before final adjustments. The thrusters then enter the support pool with new zinc anodes, approved coating, and the same warranty and classification as new thrusters. In 2024, 177 thrusters were refurbished and replaced, with a total weight of 1,421 tonnes.

The Circularity Mapping-Project

In 2023 and 2024, KONGSBERG conducted a comprehensive Circularity Mapping project. The aim of this initiative was to define our approach to the circular economy, assess current practices, and establish a foundation for future actions and goals. We mapped KONGSBERG's regulatory landscape and value chains, focusing on resources and waste. Led by our unit managers, this project has been crucial in understanding the flow of materials, products, and value across our business areas. By distinguishing between activities under our control and those managed by external parties, we can further identify targeted and impactful initiatives to enhance our positive impact on resource use and circularity.

In 2024, Kongsberg Defence & Aerospace conducted its own double materiality analysis, based on the Circularity Mapping project. Actions were planned from a comprehensive list of identified impacts, risks, and opportunities, in line with

Metrics

Resource Inflow

The provided data for resource inflows has been disaggregated to highlight KONGSBERG's various types of resource inflows. Resource inflows consist of 44,058 tonnes of purchased goods and 1,421 tonnes of refurbished and reused thrusters from Kongsberg Maritime's Thruster Support Pool. We have estimated the reused packaging for Kongsberg Maritime to be zero.

Resource Inflows	Metric ton	Per cent
Inflows Kongsberg Maritime	39,584	87.04%
Thuster Support Pool	1,421	3.12%
Reused packaging (pure wood)	0	—%
Total Kongsberg Maritime	41,005	90.16%
Inflows Kongsberg Defence & Aerospace	3,200	7.04%
Total Kongsberg Defence & Aerospace	3,200	7.04%
Inflows Kongsberg Discovery	1,176	2.59%
Total Kongsberg Discovery	1,176	2.59%
Inflows Kongsberg Digital	98	0.22%
Total Kongsberg Digital	98	0.22%
Total KONGSBERG	45,479	100.00%

Weight data from purchases is sourced from transport information collected from our logistics companies and suppliers and is summarised in our Sustainability Logistics Dashboard. The data reflects the actual weight of KONGSBERG's total purchases and includes incoming deliveries from all suppliers in 2024. We assume that goods purchased in 2024 have also been used in the production of our products during the same period.

Weight data from the Thruster Support Pool consists of actual weight data, obtained directly from Kongsberg Maritime's workshops.

Weight data for reused packaging (clean wood) is estimated to be zero due to limited data. This conservative approach is taken because our systems lack structured data, making it difficult to accurately assess the reuse rate. Additionally, this approach ensures that we do not overestimate the impact of the action.

Since we do not have data for resource inflows to report on biological materials, we have assumed that the resource inflows consist of technical materials.

Considering the small amounts of biological materials in our products, including wood and cardboard for packaging, rubber, and potentially oils and greases for machinery lubrication, relative to the total weight of resource inflows, and the associated procurement costs for wood and rubber being less than 0.4 per cent at the Group level, we estimate that biological materials will constitute a marginal share of resource inflows in 2024. Therefore, we assume that approximately 100 per cent of resource inflows are technical materials. Additionally, we assume that biofuels are not used for non-energy purposes in our production processes. These assumptions are underscored by the lack of certification schemes known to KONGSBERG's procurement team.

We aim to establish a more robust data foundation for future reporting.

Description of Resource Inflows

Since 90 per cent of our resource inflows are used in our maritime business area, and the types of resource inflows are similar across other business areas, we base our description of KONGSBERG's resource inflows on Kongsberg Maritime's activities. This applies to both our own operations and upstream in the value chain. The description also includes materials used in the Thruster Support Pool and reused packaging that Kongsberg Maritime uses for transporting products to its downstream customers.

In our maritime value chain, we use a variety of products, including components for shipping and maritime solutions, as well as IT equipment. Components for ship production are primarily made of metals such as aluminium (Al) and steel, along with small amounts of rubber and potentially oils and greases for machinery lubrication. IT equipment typically includes plastics, rubber, and small amounts of precious

KONGSBERG's double materiality analysis and overarching circular economy strategy. Initial workshops were held to map Kongsberg Defence & Aerospace's value chains, and a preliminary project focusing on Life Cycle Assessment (LCA) was initiated. The project was expanded in 2024 to include Kongsberg Maritime's product portfolio.

The LCA process has enabled both Kongsberg Defence & Aerospace and Kongsberg Maritime to identify activities within their control and influence. The analysis reveals opportunities for cost savings, efficiency, and reduced ecological footprints, while also promoting innovation and strengthening corporate responsibility. The primary focus for future efforts is data collection, which is currently manual and limited in both business areas. The LCA project aims to assess data needs and establish a comprehensive strategy to improve this practice.

In 2025, we plan to expand these workshops and project initiatives related to resource use and circular economy across KONGSBERG. This will help us further identify specific focus areas and develop a comprehensive mitigation and action plan.

As part of the circular economy program initiated in 2023, we have identified the following key areas that will form the foundation for developing future actions.

• Sustainable product design: Reducing the use of primary material, integrating recycled and reused materials, and phasing out hazardous waste.
• Efficient resource use: Promoting modular design principles ensuring upgrades and repairability, increasing the use of secondary materials, and promoting sustainable packaging solutions.
• Sustainable waste management and reduction: Exploring recycling solutions for hazardous waste and optimising the end-of life cycle enhancing recycling and material recovery.

Through these initiatives, we commit to promoting resource efficiency and the circular economy, ensuring compliance with regulatory requirements, and addressing future environmental challenges. The first step will be to evaluate the relevance of these initiatives for each of KONGSBERG's business areas and their current level of engagement. Where possible, initiatives will be integrated into existing workflows.

Sustainability Statement / Environment / E-5 Resource Use and Circular Economy

metals such as nickel (Ni), cobalt (Co), and copper (Cu). Packaging usually consists of plastic, paper, cardboard, and wood. Critical raw materials and rare earth elements are also important. In IT equipment, tantalum (Ta) and gold (Au) are used in electronic components, while neodymium (Nd) is used in magnets. In the maritime industry, neodymium (Nd) and dysprosium (Dy) are crucial for high-performance magnets in motors and generators, and titanium (Ti) is used for its corrosion-resistant properties.

Key Products and Materials Related to Outflow and Waste

We are working to integrate sustainable and circular economy principles across our business areas. Each business area focuses on aspects such as product life cycles, recyclability, and alignment with international standards, aiming to meet industry criteria and future sustainability requirements. The following sections will provide information about Kongsberg Defence & Aerospace and Kongsberg Maritime, as they generate the largest share of KONGSBERG's total resource outflows.

Kongsberg Defence & Aerospace designs products that meet stringent criteria in the military and aerospace sectors, focusing on reliability and durability. Although they are not specifically designed for circularity, the products support a circular economy through maintenance, repairs, and upgrades. Military products have a lifespan of 15 to over 30 years, with integrated maintenance and upgrades. The design supports lifecycle management and the establishment of end-of-life processes for safe decommissioning and recycling. Aerospace products are designed for over 15 years of operation, with recyclable packaging materials such as aluminium.

Kongsberg Defence & Aerospace uses recyclable materials such as aluminium, steel, and copper. Although military waste regulations may limit waste treatment to energy recovery, selected product lines are highly recyclable. Due to the long lifespan of the products, disposal is expected in the 2050-60s. Future waste management methods are expected to further increase recyclability. To meet evolving sustainability requirements, Kongsberg Defence & Aerospace is improving its approach by aiming for a mature methodology for lifecycle assessments, such as ISO 14040/44.

Kongsberg Maritime is dedicated to optimising products and services to ensure maximum performance over an installation lifecycle of up to 40 years. With a strong focus on sustainability and continuous improvement, Kongsberg Maritime integrates lifecycle management into its product development and management processes. The products are designed for longevity, with digital solutions to monitor performance and simplify upgrades. A good example is the company's Thruster Support Pool, where damaged thrusters are refurbished and reused. Kongsberg Maritime is committed to sustainable practices throughout the product lifecycle, from raw material selection to recycling processes. Kongsberg Maritime is actively working to reduce and recycle plastics in logistics and production, with initiatives set to implement improvements by 2025. In compliance with the EU Ship Recycling Regulation, Kongsberg Maritime aligns its practices with industry standards for safe and environmentally friendly recycling.

The products and packaging from Kongsberg Defence & Aerospace and Kongsberg Maritime have significant potential for recyclability, due to favourable markets and the availability of recycling solutions for waste fractions consisting of pure raw materials. However, we estimate that a negligible amount of these materials is actually recycled. This conservative estimate arises from the lack of structured data in our systems to accurately assess the recycling rate of our outflows, helping us avoid overestimating recycling rates.

Sustainability Statement / Environment / E-5 Resource Use and Circular Economy

Waste Data

The disclosed waste data relates to all business areas.

	Non
Waste generated (tonnes)	hazardous	Hazardous	Total
a. Preparation for reuse	2	9	11
b. Recycling	2,818	275	3,093
c. Other recovery	1,333	342	1,674
A. Total diverted from disposal (a. + b. +c.)	4,152	626	4,778
d. Incineration	12	70	82
e. Landfill	225	19	244
f. Other disposal	801	692	1,493
B. Total directed to disposal (d. + e. + f.)	1,038	781	1,819
TOTAL WASTE (A. + B.)	5,190	1,406	6,597
Non-recycled waste (d)			3,493
% Non-recycled waste (d)			53%

"Non-recycled waste" means any waste not recycled within the meaning of "recycling". "Recycling" means any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original or other purposes. It includes the reprocessing of organic material but does not include energy recovery and the reprocessing into materials that are to be used as fuels or for backfilling operations

Total amount of radioactive waste 0

Aligned with the EU's Circular Economy Action Plan and Sustainable Finance directives, Kongsberg Defence & Aerospace and Kongsberg Maritime categorises waste into material-related streams such as metal, glass, paper, cardboard, clean wood, and plastic, as well as product-related streams like electronic waste, cables, and batteries.

Waste data has been collected from our production and office locations. Based on feedback from the various locations, we assume that 94 per cent of the reported data is actual weight data. Six per cent of the reported data is estimated, based on comparable locations, activity, and number of employees.

Composition of the Waste

The overview below shows waste categories that are relevant to our sector and business and indicates the largest waste categories as well as an overall description of the remaining waste fractions.

Waste relevant to KONGSBERG's sector and operations	Ton	Waste composition
Metals	2,060	Over 50% consists of iron and ferrous alloys. The rest is various mixed metals and specific metals. All metal waste is delivered for recycling.
Wood		1,040 Mainly clean wood. Less than 2% CCA treated wood.
Mixed residual waste	880	Unsorted mixed waste is sent to incineration with energy recovery or to landfill depending on the waste's content and local regulations and established practices in relevant geographies.
Oil waste		610 Various oils delivered to approved hazardous waste recipients.
Paper and cardboard		450 Sorted paper and cardboard delivered for recycling.
Acids and bases	250	Various acids and bases, for example from surface treatment of metals. Delivered to approved hazardous waste recipients.
Other waste	1,307	Various other waste fractions, such as EE waste, plastic materials, solvents and paint, construction waste, etc.

EU Taxonomy

Our Scope of Reporting

KONGSBERG reports on the full scope of the EU Taxonomy for 2024. We report on eligible and aligned economic activities for all three KPIs; Revenue5 , OPEX and CAPEX. Non-eligible activities are those activities that the EU Taxonomy Regulation has not described and where no criteria to evaluate sustainability has been established. The EU Taxonomy Regulation prioritises economic activities related to sectors with the highest potential to fulfil the goals of the environmental objectives. Consequently, activities deemed non-eligible are not necessarily unsustainable, but the EU Taxonomy does not provide any criteria to evaluate them on.

Total operating revenue for KONGSBERG was NOK 48.9 bn. for 2024. Please refer to the Financial statements on page 109 and notes 6 and 7 on pages 122 and 128.

Total EU Taxonomy relevant CAPEX for KONGSBERG was NOK 3.1 bn. for 2024. Please refer to notes 12, 13 and 14 in the Financial statements on pages 138, 141 and 144.

Total Personnel and Other operating expenses for KONGSBERG was NOK 23.2 bn. for 2024. Please refer to Financial statements, page 110. The part of our OPEX that meet the definition of EU Regulation 2021/2178 Annex I, point 1.1.3.1 is estimated to be NOK 2.1 bn. and form the denominator of the OPEX KPI. For each business area we have evaluated the R&D OPEX and estimated the share of direct expenses according to the EU Taxonomy description. In addition, we have evaluated the direct expenses from our property activities that meet the EU Taxonomy description to give the total estimated OPEX denominator. No portion of operating expenses is related to other expenses related to the daily maintenance of assets, plant and equipment.

We report only on OPEX and CAPEX that are associated with taxonomy-aligned activities since we do not have a CAPEX plan, and data related to purchase of output of Taxonomyaligned activities is not available.

The evaluation of relevant activities has been performed by the business areas (BAs) with support of the corporate centre to ensure consistent reporting and to perform consolidation for KONGSBERG. The BAs have identified relevant activities from the EU Taxonomy and financial data related to eligible activities have been extracted from the respective ERP systems to prepare the reporting. Economic activities have only been evaluated against the most relevant activity, which avoid double counting.

Sustainability Statement / Environment / EU Taxonomy

Summary of Performance

11 activities have been identified as eligible and assessed against the criteria for alignment. The non-eligible scope of our revenues remains high at 52 per cent, which means that the majority of our activities are not yet captured by the EU Taxonomy. Sales of spare parts and Provision of IT/OT data-driven solutions are the activities that contributes the most to eligibility under the revenue KPI. R&D activities related to Provision of IT/OT data-driven solutions is the largest driver for eligibility under the OPEX KPI, while Construction of new buildings and Manufacturing of aircraft are the activities that contribute the most under the CAPEX KPI. Access to relevant data from internal and external sources to perform the necessary evaluations against the Technical screening criteria remains a challenge which limits the share of aligned KPI performance. A summary of the KPI reporting is found on the previous page, while more detailed tables in line with the format established by the EU Taxonomy are available at the end of the chapter.

In our 2024 taxonomy reporting we have focused on our core business, and as a result, we have cut reporting on five activities this year. Our 2023 report included very moderate shares of aligned revenue, CAPEX and OPEX related to activities that are no longer included in the reporting.

Our 2023 report consisted of mandatory reporting on the activities described in the EU Commission Delegated Regulation related to the environmental objectives for climate change mitigation and climate change adaptation. In addition, we voluntarily reported on the revenue KPI for the activities under the remaining four environmental objectives. We did not report on the CAPEX or OPEX KPIs for the voluntary scope of our 2023 report. A direct comparison of our 2024 report with 2023 is therefore not possible.

Manufacture, installation, and servicing of high, medium, and low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigation

(Climate Change Mitigation – 3.20)

Kongsberg Maritime develops, installs, and services Electrical Power Systems (EPS) which contributes to GHG emission reductions through integration of renewable energy solutions and efficient power conversions to vessels. All our deliveries of EPS meet the description of the activity and are therefore considered eligible. We include activities by our Global Customer Support where these are not already reported under other activities.

The following activities from the Substantial contribution criteria have been identified as relevant:

• Low voltage electrical products, equipment and systems, that increase the controllability of the electricity system, and contribute to increasing the proportion of renewable energy or improve energy efficiency, and
• high and medium voltage switchgears and control gears that increase the controllability of the electricity system, are integrated to increase the proportion of renewable energy or improve energy efficiency.

Switchgear insulations avoid gases with Global Warming Potential above 10 and exclude sulphur hexafluoride (SF6) in circuit breakers. All products comply with EU directive 2009/125/EC, however we are not able to document compliance with standards IEC 60364 and IEC 62271. As a result, we do not meet the Substantial contribution criteria.

An evaluation against Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

Manufacturing of aircraft (Climate Change Mitigation – 3.21)

Kongsberg Defence & Aerospace manufactures airframe parts for the F35 fighter jet and performs maintenance, repair, and overhaul (MRO) of helicopters and aircrafts.

Our activities are aimed at military, and search and rescue aircrafts where priority is given to other factors rather than GHG emissions. Hence, none of the activities are

aligned as they do not meet the Substantial contribution criteria. No evaluation against Do no significant harm is performed due to lack of compliance to the Substantial contribution criteria. As a result, the activity is reported as eligible.

Retrofitting of sea and coastal freight and passenger water transport (Climate Change Mitigation – 6.12)

Kongsberg Maritime delivers projects related to retrofit and upgrade of vessels designed and equipped for sea and coastal transport of freight or passengers as described by the EU Taxonomy.

We continue to apply the definition of relevant vessels which we have established in prior years' reporting. For example, we do not restrict eligibility to tugs solely dedicated to port operations. Further, we include Offshore Supply and similar vessels on the basis that they transport freight between the shore and offshore operations. Vessels that do not have the primary function to transport freight or passengers, such as naval, fishing, and research vessels are not considered eligible in our reporting. We also exclude vessels that does not have their own propulsion, such as barges.

We have only evaluated deliveries that provide improved functionality from the original design. Activity 5.1 Repair, refurbishment and remanufacturing under the Environmental objective related to Circular Economy captures other aspects and is presented later in this chapter.

We have delivered several projects during 2024 that improve fuel consumption and are expected to meet the Substantial contribution criteria. However, only a limited scope of projects has been documented to meet these criteria. Applicable projects may consist of several product deliveries, both physical and digital, under the same contract to meet the Substantial contribution criteria. CAPEX and OPEX are tied to the individual products and solutions, which by themselves typically do not meet the Substantial contribution criteria.

We have evaluated the Do no significant harm criteria that are relevant for the activity and concluded that we are not able to report compliance with the requirements as several of them require vessel-specific data that we are not able to access or assess. As a result, the activity is reported as eligible.

Sustainability Statement / Environment / EU Taxonomy

Construction of new buildings

(Climate change mitigation – 7.1)

To meet increasing demand for our products we increase our capacity through, among other things, investments in new buildings. During 2024, we have invested in new buildings in the town of Kongsberg as well as Adelaide, Australia. The Adelaide facility aims to become the first defence facility in Australia to achieve LEED Platinum status. However, documentation of the primary energy demand (PED) of these are not available. As a result, it has not been possible to determine if the investments meet the Substantial contribution criteria.

An evaluation against the Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

Acquisition and ownership of buildings

(Climate Change Mitigation – 7.7)

KONGSBERG own and lease real estate, which mainly supports our own operation. We have CAPEX and OPEX spend related to these and also generate revenue from renting out to external parties, especially at the Kongsberg Technology Park (KTP). Real estate includes properties consisting of land and the buildings on it and may also include undeveloped land.

We report IFRS16 CAPEX against an evaluation of the real estate's performance of the real estate itself against the criteria for Acquisition and ownership of buildings. We believe this approach is most aligned with the spirit of the EU Taxonomy, as it helps to create incentives in favour of sustainable real estate. Once we apply this interpretation to CAPEX, it also makes sense to consider external revenue of sub-letting to be evaluated against this activity to create symmetry. By doing so we treat both CAPEX and revenue from the real estate in question equally. During 2024 IFRS16 CAPEX makes up most of the CAPEX under this activity.

No properties have been evaluated to meet the Substantial contribution criteria defined by the EU Taxonomy. Buildings built before 31 December 2020 do not have an Energy Performance Certificate (EPC) of class A. There are currently no available statistics in Norway that allow us to assess whether these buildings are in the top 15 per cent of the national or regional building stock. The Ministry of Finance has communicated that they will align with other relevant ministries to evaluate how this can be made available. As a

consequence, we will wait for this update to assess if our buildings can be considered differently. A couple of buildings are built after 31 December 2020, including the Space & Surveillance production and office facility (Cosmos) and a new missile factory (Nexus). Where we have information about the EPC class or PED, we have not been able to verify that the building meets the Substantial contribution criteria. For other buildings, including leased property, information on EPC class or PED is not available to evaluate performance against the Substantial contribution criteria.

An evaluation against the Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

Data-driven solutions for GHG emissions reductions (Climate Change Mitigation – 8.2)

Kongsberg Digital delivers maritime simulators that fit the description of data-driven solutions for GHG emission reductions.

The simulators allow training to be performed virtually rather than on actual ships, thereby contributing to reduce fuel consumption and GHG emissions.

To meet the Substantial contribution criteria, third-party verified life-cycle GHG emission reductions compared to the best performing alternative solution is required. Such analysis has not been performed yet, and we are not able to confirm alignment.

An evaluation against Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

Manufacturing of electrical and electronic equipment

(Transition to a Circular Economy – 1.2)

Manufacturing of electrical and electronic equipment for industrial, professional and consumer use is a broad economic activity that can fit a wide scope of the activities we perform. To ensure a consistent application of the activity we have established three key interpretations of the activity description.

With reference to other EU Taxonomy activities, we interpret "manufacturing" to be an intentional limitation in scope. The implication is that physical products, which

are developed and designed, loaded with KONGSBERG software and algorithms, and sold under KONGSBERG brand must also be manufactured by us to be eligible. Second, we consider any product that relies on electrical or electronic equipment to function as intended to be in scope. Finally, an evaluation of the boundaries related to the "industrial, professional, and consumer use" is required. There is little guidance available to help us determine what would be appropriate boundaries, but we believe the specification of this boundary has been intentional to limit the scope of the activity. Our interpretation is that products need to be generally commercially available, and as a consequence products sold solely for military use are excluded. These products are not available for purchase on a general commercial basis, which is made evident by the need for export control licence for instance.

Only revenue related to sale of stand-alone products (which may be custom built) are evaluated. When physical products are sold as part of a project the delivery is an integrated delivery which also include aspects such as product and software development, training, testing, calibration etc.

The activity is relevant for most of our business areas, with the majority of the eligible contribution from Kongsberg Discovery.

Several requirements to meet the Significant contribution criteria exist for products that do not have EU Ecolabel, like ours. The requirements are many, and not always easy to interpret, which makes the documentation of compliance demanding and costly. We have not yet evaluated the relevant products against the requirements but will consider the benefits for our business in closer detail during 2025.

An evaluation against the Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

Provision of IT/OT data-driven solutions

(Transition to a Circular Economy – 4.1)

Both Kongsberg Maritime and Kongsberg Digital offer data-driven solutions. Activities connected with subscription service, necessary hardware, as well as setup and installations are all evaluated to meet the eligibility criteria of the EU Taxonomy. We continue to rely on the activity-specific criteria to evaluate relevant lock-in principle considerations.

Sustainability Statement / Environment / EU Taxonomy

We have performed a re-evaluation of the activities previously reported under Datadriven solutions for GHG emission reductions (Climate change mitigation 8.2) and found that most of our products better align with this activity. This change reflects that our products focus on operational efficiency with circular economy as a by-product, rather reduction of GHG emissions.

Kongsberg Digital offer data-driven solutions which enable more efficient use of assets and reduce impact from unwanted future events. K-IMS is a digital solution offered by Kongsberg Maritime, similar to the Vessel Insight solution from Kongsberg Digital, where both solutions provide data and analytics that offer decision-making support for customers to improve the operational performance of vessels. We have also reported Health Management monitoring services from Kongsberg Maritime as eligible since it ensures that assets receive service and maintenance follow up that allow them to operate under optimal conditions.

Relevant products and solutions have been assessed against the Substantial contribution criteria and found to meet the relevant requirements.

However, we are not able to confirm that the relevant products and solutions meets the requirements set out in the Do no significant harm criteria to pollution prevention. As a result, the activity is reported as eligible.

Repair, refurbishment and remanufacturing

(Transition to a Circular Economy – 5.1)

The repair, refurbishment and remanufacturing activity is a relevant activity for most of our business areas. The description of the activity specifies that the "goods have been used for their intended purpose before" and we understand this to mean any product that has been used, i.e. which is not new out-of-the-box. We understand that the aim of the activity is to extend the life of the products covered by the activity.

The Global Customer Support division in Kongsberg Maritime is established specifically to meet the purposes of this activity. Kongsberg Digital perform repair and maintenance work related to their maritime simulator business. Kongsberg Discovery reports eligible activities linked to the product portfolios of Ocean Technologies and Seatex. In Kongsberg Defence & Aerospace maintenance, repair, and overhaul (MRO) is provided by division Aerostructures & MRO, while other divisions provide field- and upgrade support.

Since waste management plans are not formalised in the operation yet, none of the activities meet the Substantial contribution criteria and the Do no significant harm criteria have consequently not been evaluated. As a result, the activity is reported as eligible.

Sale of spare parts

(Transition to a Circular Economy – 5.2)

The sale of spare parts is another activity relevant for most of our business areas. Spare parts are separate parts of a product that can replace a part of a product with the same or similar function. The product cannot function as intended without that part of the product.

The major contributor to the eligible revenue reported under this activity is from Kongsberg Maritime and the Global Customer Support division. Kongsberg Discovery reports eligible revenue linked to the product portfolios of Ocean Technologies and Seatex. The Defence Systems division of Kongsberg Defence & Aerospace also have eligible revenue under this activity.

Kongsberg Maritime and Kongsberg Discovery report that packaging does not meet the requirement of the Substantial contribution criteria. Kongsberg Defence & Aerospace meets the Significant contribution criteria. However, the use of substances such as Cadmium and Lead results in non-compliance with EU Directive 2011/65/EU (RoHS). Consequently, the Do no significant harm criteria are not met, and the activity is reported as eligible.

Product-as-a-service and other circular use- and result-oriented service models (Transition to a Circular Economy – 5.5)

Kongsberg Discovery operate a rental business within their Ocean Technologies and Uncrewed Platforms units that meet the description of the activity. We believe that the activity increases the use intensity of the product and meets the other Substantial contribution criteria but have not performed the necessary work to document this. We will evaluate the benefits to invest in the required documentation for our business in closer detail during 2025.

An evaluation against the Do no significant harm criteria has not been performed, provided that no activities have been assessed to meet the Substantial contribution criteria. As a result, the activity is reported as eligible.

No

No

Minimum Safeguards

Minimum safeguards criteria are outlined in the EU Taxonomy regulation (EU 2020/852) Article 3 and 18 and establish that compliance is required on entity level to qualify activities as environmentally sustainable. We rely on the final report advice presented by the Platform on Sustainable Finance on the application of Minimum safeguards6 to evaluate compliance. In their advice, four criteria are identified where compliance is required: Human Rights, Corruption, Taxation, and Fair Competition.

We have not been convicted of violating laws within these areas in 2024.

Human Rights

We have carried out a gap analysis between the Norwegian Transparency Act and the requirements established by the Platform on Sustainable Finance and concluded that there is an overlap. Hence, we consider ourselves to be compliant with the Human Rights requirements of the Minimum safeguards of the EU Taxonomy through the legislative requirements established by the Transparency Act.

Corruption

KONGSBERG has a zero tolerance for corruption and our attitude is expressed explicitly through our Code of Ethics and Business Conduct which is accepted by all employees on employment and periodically attested to. Further, we have endorsed the UN Global Compact, the OECD's Guidelines for Multi-National Enterprises and is a member of Transparency International, the International Forum on Business Ethical Conduct (IFBEC) and Maritime Anti- Corruption Network (MACN). As a part of the overall assessment every third year, the program is subject to an audit. In 2023 an audit was executed by a US law firm who found the program to be adequate and effective, and observed that significant improvements had been made since their prior review in 2020. As such, we consider to be compliant with the Anti Corruption requirements of the Minimum safeguards of the EU Taxonomy.

Tax

Our international presence means that we must comply with a wide variety of tax systems in many countries. In our opinion, a responsible approach to taxation is essential for our long-term activities in the countries in which we operate. This includes identifying and complying with current tax legislation, disclosing all the necessary information to the relevant authorities and taking prudent tax positions where tax legislation allows different interpretation or choices.

We have a central tax department that reports to corporate management, and whose primary purpose is to ensure compliance with our Tax Policy throughout the Group. The tax department and local management within the Group companies ensure compliance with local tax reporting requirements in the countries in which we operate, in cooperation with internationally recognised tax advisers. The tax department regularly monitors the external advisers.

KONGSBERG prioritise the work on an improved version of a tax framework, with more emphasis on roles, responsibilities, and internal controls for the future. This aligns with growing requirements from Governments not only to adhere to a responsible tax policy, but also to document such adherence. As such, we consider ourselves to be compliant with the Tax requirements of the Minimum safeguards of the EU Taxonomy.

Fair Competition

All employees accepted the Code of Ethics and Business Conduct, which includes a chapter on Fair Competition, on employment. In addition, specialised training and awareness activities related to competition laws and regulations are carried out regularly towards employees in senior management positions, as well as other positions identified to be of high relevance. As such, we consider ourselves to be compliant with the Fair Competition requirements of the Minimum safeguards of the EU Taxonomy.

Nuclear energy related activities

The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.

The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No

The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

Fossil gas related activities

fuels.

The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous No

The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No

Revenue KPI

Financial year 2024		Year				Substantial Contribution Criteria					DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)	Co de (2 )	Tu rno ve r (3 )	ye Pr ar op 20 ort 24 ion (4 of ) Tu rno ve r	Cli Mi tig ma ati te on Ch (5 an ) ge	Ad Cli ma ap tat te Ch ion an (6 ge )	Wa ter (7 )	Po llu tio n ( 8)	Cir cu lar Ec on om y ( 9)	ec Bio os div ys ers tem ity s ( an 10 d )	Cli Mi tig ma ati te on Ch (11 an ) ge	Ad Cli ma ap tat te Ch ion an (12 ge )	Wa ter (13 )	Po llu tio n ( 14)	Cir cu lar Ec on om y ( 15)	Bio div ers ity (16 )	Minimum Safeguards (17)	Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) turnover, year 2023 (18)	Category enabling activity (19)	Category transitional activity (20)
		MNOK	%		Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL					Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES			47.9%
A.1. Environmentally sustainable activities (Taxonomy-aligned)
None		0	-%	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	-%
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0	-%	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	0.0%
	Of which enabling	0	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	Y	Y	Y	Y	Y	Y	Y	0.0%	E
	Of which transitional	0	0.0%	0.0%						Y	Y	Y	Y	Y	Y	Y	0.0%		T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL
Manufacture, installation, and servicing of high, medium and low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigation	CCM 3.20	437	0.9%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Manufacturing of aircraft	CCM 3.21	2,133	4.4%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Retrofitting of sea and coastal freight and passenger water transport	CCM 6.12	2,980	6.1%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Acquisition and ownership of buildings	CCM 7.7	66	0.1%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Data-driven solutions for GHG emissions reductions	CCM 8.2	278	0.6%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Manufacturing of electrical and electronic equipment	CE 1.2	2,585	5.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Provision of IT/OT data-driven solutions	CE 4.1	4,894	10.0%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Repair, refurbishment and remanufacturing	CE 5.1	4,039	8.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Sale of spare parts	CE 5.2	5,885	12.0%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Product-as-a-service and other circular use- and result-oriented service models	CE 5.5	110	0.2%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)			47.9%	12.1%	-%	-%	-%	35.8%	-%
Total (A.1+A.2)		23,408	47.9%	12.1%	-%	-%	-%	35.8%	-%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities		25,464	52.1%
Total (A+B)		48,872	100.0%

CAPEX KPI

Financial year 2024		Year					Substantial Contribution Criteria				DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)	Co de (2 )	Tu rno ve r (3 )	ye Pr ar op 20 ort 24 ion (4 of ) Tu rno ve r	Cli Mi tig ma ati te on Ch (5 an ) ge	Ad Cli ma ap tat te Ch ion an (6 ge )	Wa ter (7 )	Po llu tio n ( 8)	Cir cu lar Ec on om y ( 9)	ec Bio os div ys ers tem ity s ( an 10 d )	Cli Mi tig ma ati te on Ch (11 an ) ge	Ad Cli ma ap tat te Ch ion an (12 ge )	Wa ter (13 )	Po llu tio n ( 14)	Cir cu lar Ec on om y ( 15)	Bio div ers ity (16 )	Minimum Safeguards (17)	Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) turnover, year 2023 (18)	Category enabling activity (19)	Category transitional activity (20)
		MNOK	%				Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL			Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES			66.7%
A.1. CapEx of environmentally sustainable activities (Taxonomy-aligned)
None		0	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	Y	2.8%
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0	-%	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	2.9%
	Of which enabling	0	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	Y	Y	Y	Y	Y	Y	Y	0.0%	E
	Of which transitional	0	0.0%	0.0%						Ja	Ja	Ja	Ja	Ja	Ja	Ja	0.0%		T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned)
				EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL
Manufacturing of aircraft (CapEx A)	CCM 3.21	360	11.7%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Construction of new buildings (CapEx A)	CCM 7.1	471	15.3%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Acquisition and ownership of buildings (CapEx A)	CCM 7.7	827	26.9%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Data-driven solutions for GHG emissions reductions (CapEx A)	CCM 8.2	24	0.8%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Manufacturing of electrical and electronic equipment (CapEx A)	CE 1.2	66	2.1%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Provision of IT/OT data-driven solutions (CapEx A)	CE 4.1	285	9.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Repair, refurbishment and remanufacturing (CapEx A)	CE 5.1	1	0.0%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Product-as-a-service and other circular use- and result-oriented service models (CapEx A)	CE 5.5	15	0.5%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		2,049	66.7%	54.7%	-%	-%	-%	11.9%	-%
Total (A.1+A.2)		2,049	66.7%	54.7%	-%	-%	-%	11.9%	-%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Capex of Taxonomy-non-eligible activities		1,023	33.3%
Total (A+B)		3,072	100.0%

OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

OpEx of Taxonomy-non-eligible activities 1,621 76.4% Total (A+B) 2,121 100.0%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

(A.2) ⁴⁹⁹ 23.6% 7.8% -% -% -% 15.8% -% Total (A.1+A.2) 499 23.6% 7.8% -% -% -% 15.8% -%

OPEX KPI

Financial year 2024		Year				Substantial Contribution Criteria						DNSH criteria ('Does Not Significantly Harm')
Economic Activities (1)	Co de (2 )	Tu rno ve r (3 )	ye Pr ar op 20 ort 24 ion (4 of ) Tu rno ve r	Mi Cli tig ma ati te on Ch (5 an ) ge	Ad Cli ma ap tat te ion Ch an (6 ge )	Wa ter (7 )	Po llu tio n ( 8)	Cir cu lar Ec on om y ( 9)	ec Bio os div ys ers tem ity s ( an 10 d )	Mi Cli tig ma ati te on Ch (11 an ) ge	Ad Cli ma ap tat te ion Ch an (12 ge )	Wa ter (13 )	Po llu tio n ( 14)	Cir cu lar Ec on om y ( 15)	Bio div ers ity (16 )	Minimum Safeguards (17)	Proportion of Taxonomy aligned (A.1.) or -eligible (A.2.) turnover, year 2023 (18)	Category enabling activity (19)	Category transitional activity (20)
		MNOK	%				Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL Y, N, N/EL			Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES			23.6%
A.1. Environmentally sustainable activities (Taxonomy-aligned)
None		0	-%	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	—
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0	-%	-%	-%	-%	-%	-%	-%	Y	Y	Y	Y	Y	Y	Y	2.1%
	Of which enabling	0	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	Y	Y	Y	Y	Y	Y	Y	0.0%	E
	Of which transitional	0	0.0%	0.0%						Y	Y	Y	Y	Y	Y	Y	0.0%		T
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL	EL, N/EL
Manufacture, installation, and servicing of high, medium and low voltage electrical equipment for electrical transmission and distribution that result in or enable a substantial contribution to climate change mitigation (OpEx A)	CCM 3.20	14	0.7%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Manufacturing of aircraft (OpEx A)	CCM 3.21	2	0.1%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Retrofitting of sea and coastal freight and passenger water transport (OpEx A)	CCM 6.12	21	1.0%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Acquisition and ownership of buildings (OpEx A)	CCM 7.7	81	3.8%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Data-driven solutions for GHG emissions reductions (OpEx A)	CCM 8.2	47	2.2%	EL	N/EL	N/EL	N/EL	N/EL	N/EL
Manufacturing of electrical and electronic equipment (OpEx A)	CE 1.2	91	4.3%	N/EL	N/EL	N/EL	N/EL	EL	N/EL
Provision of IT/OT data-driven solutions (OpEx A)	CE 4.1	243	11.5%	N/EL	N/EL	N/EL	N/EL	EL	N/EL

83

Sustainability Statement / Social

Social

Sustainability Statement / Social / S-1 Own Workforce - Working Conditions and Equal Treatment for All

Own Workforce - Working Conditions and Equal Treatment for All

Introduction to the Topic

We aspire to be a thriving workplace. We value our employees as our most important resource and strive for a competent, dedicated, and diverse workforce. We promote a safe culture that supports flexibility and collaboration, enabling our employees to perform at their best. As a company built on knowledge and expertise, we recognise that our employees are crucial for achieving strategic goals. Fostering a culture of diversity and inclusion is crucial for cultivating a sense of belonging, driving innovation, and supporting growth. Our shared values are our strength and are vital for being an attractive employer that positively impacts our employees.

To fully leverage our employees' expertise, we offer a thriving workplace with a strong focus on diversity, inclusion, and belonging. We believe this creates an environment where all employees can excel. We are committed to promoting equality and preventing discrimination in line with the Equality Act.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified positive and negative impact, risks and opportunities related to working conditions, equal treatment and equal opportunity for all.

ESRS sub-topic	ESRS sub-sub topic	Type	Description	Value chain location	KONGSBERG's involvement with the impact	Time horizon
Working conditions	Working time, Adequate wages, Social dialogue, Freedom of association, Collective bargaining	Potential negative impact	We operate in countries and regions where the risk of breaches in work-related rights is high. This is especially related to our own operations in Asia, Middle East, and South America. In these regions labour unions are less common, which may increase the potential systematic risk of breaches in rights related to working hours, adequate wages and the possibility to unionise. Thus, we may contribute to poor working conditions for employees if not handled correctly.	Own operations	Contribute directly	Medium term
Working conditions	Working time and work-life balance Risk		As a company, we have high growth ambitions and work with time-critical deliveries which may lead to long working hours for our employees. Risks for KONGSBERG related to long working hours for employees are mainly operational and include poor productivity and staff turnover, resulting from health issues, or decrease of employees' satisfaction and engagement. We depend on a thriving workforce to deliver on strategic objectives.	Own operations	Not relevant for risks	Medium term
Equal treatment and opportunities for all	Gender equality and equal pay for equal value, Diversity	Potential negative impact	The industries we operate in are widely characterised by relatively low representation from women and minority groups. Lack of diversity may have a negative impact on groups that are most likely to be discriminated against, such as minorities and women. Lack of diversity within the workforce may lead to negative economic consequences for the impacted people.	Own operations	Contribute directly	Medium term
Equal treatment and opportunities for all	Training and skills development, Diversity	Potential positive impact	By investing in training and skill development, KONGSBERG might have a positive impact on all employees' personal growth and well-being.	Own operations	Contribute directly	Short term
Equal treatment and opportunities for all	Training and skills development, Diversity	Actual positive impact	We focus on including people who have been left outside the job market. When these people become a part of our workforce, it prepares them for further challenges and equip them with the necessary skills and experience to succeed in their careers.	Own operations	Contribute directly	Short term
Equal treatment and opportunities for all	Diversity	Risk	A lack of diversity may lead to homogeneous thinking, stifling creativity and problem solving. We rely on being perceived and experienced as a workplace that values diversity to ensure we come up with the best solutions.	Own operations	Not relevant for risks	Medium term

Sustainability Statement / Social / S-1 Own Workforce - Working Conditions and Equal Treatment for All

We identified no material potential negative or positive impacts on our workforce related to our ambition to be an active participant in sustainable change and energy transition. Other work-related rights, such as forced labour and child labour, were not deemed material for our workforce. Therefore, information regarding types of incidents, countries, and geographic areas with significant risks is not relevant to disclose. Unless otherwise specified, all descriptions apply to all employees within the Group.

Description and Characteristics of Own Workforce

Description of type of workers included in own workforce

We are a global company with a unique and strong culture that helps us attract and retain the right people to solve the challenges of the future. Developing a diverse workforce is crucial for us. Employees and non-employee workers in our workforce can be materially impacted by our operations. The tables below describe who our employees and non-employees are.

Characteristics of our employees

		Definition
Employee Non-employee	Permanent employee	A person who works permanently in KONGSBERG. Includes employees on maternity leave and long term absence.
	Temporary employee	A person on a temporary contract, where start- and end date is defined.
	Full-time	A person who is employed in a full position during the year.
	Part-time	A person who is employed in a part time position during the year.
		Non-guaranteed hours A person without a guaranteed minimum number of working hours who works on demand according to our workload in the business.
	Agency Worker (temporary agency person)	A person who is hired from an agency company to cover an increased workload or gaps in capacity.
	Contractor	A person who is hired in project work with defined deliverables, the work is typically result oriented and time-limited. Self-employed employees is counted in this category.

Management level (0-3)	Description
Level 0	President & CEO
Level 1	Corporate Management Team
Level 2	Business Area Management Team
Level 3	Managers reporting to level 2

11,389

Male

Full-time employees 14,067

Countries with less than

14,629

	Number of employees
Gender	(head count)
Male	11,389
Female	3,240
Other	n/a
Not Reported	—
Total employees	14,629
Comment: Data reported are headcount of permanent employees (not full-time equivalents)
Number of permanent

	employees
Country	(head count)
Norway	8,765
Other countries with less than 10% of employees	5,864
Total employees	14,629

Comment: Data reported are headcount of permanent employees (not full-time equivalents)

2024
	Female			Male Other Not disclosed	Total
Number of employees	3,388	11,780	n/a		— 15,168
Number of permanent employees	3,240	11,389	n/a		— 14,629
Number of temporary employees	100	276	n/a	—	376
Number of non-guaranteed hours employees	48	115	n/a	—	163
Number of full-time employees	3,052	11,015	n/a		— 14,067
Number of part-time employees	188	374	n/a	—	562

2024
	Norway	Other				Europe America Asia Africa Australia TOTAL
Number of employees	9,012	3,313		999 1,686	39		119 15,168
Number of permanent employees		8,765 3,069		986 1,658	35		116 14,629
Number of temporary employees	128	216	13	12	4	3	376
Number of non-guaranteed hours employees	119	28	—	16	—	—	163
							Total
Number of employees who have left during the reporting period							840
Rate of employee turnover in the reporting period							6.3%

87

All data is reported as headcount at the end of the reporting period. For 2024 we have not reported on the gender category "other", but plan to make this available in 2025. Gender reporting is based on employees' self-disclosure. The reporting of the total number of employees who left during the reporting period includes permanent employees who left voluntarily, due to dismissal, retirement, or death in service. Employee turnover is calculated as number of employees who left KONGSBERG, divided by the number of permanent employees at the start of the reporting period (1 January). Headcount numbers are not presented in the financial statements, however average FTE is reported in Note 9 Personnel expenses, remuneration to Executive Management and the Board on page 130.

Policies

Respecting human rights is a fundamental value for KONGSBERG and is an integral part of all policies related to our employees. These policies are developed in line with internationally recognised human rights, including, but not limited to, those outlined in the International Bill of Human Rights and International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work. Refer to our disclosure on due diligence in the Human Rights Report. The report will be published on our website in connection with the notice of the Annual General Meeting.

Directive for Human Resources

At KONGSBERG, we recognize that our success is built on the strength and dedication of our employees. We aim to attract, recruit, develop and retain a diverse and dynamic workforce with the right skills and mindset to support our overall business strategy and goals. We use strategic business priorities and data-driven insights to identify and focus on the most critical priorities. This is reflected in our Directive for Human Resources, which includes guidelines related diversity, leadership, and competence. The directive is applicable and available to all employees worldwide via our intranet. The document is owned by the President & CEO and maintained by the corporate HR-function. The business areas are responsible for establishing clear ownership, accountability, and resources to implement, manage and monitor compliance with this document. They are also responsible for embedding the requirements of this document into HR processes and the business management systems.

Employee handbook

The Employee handbook shall give our employees information about rights and obligations associated with their employment. The handbook is available to all employees on our intranet, and the HR functions within the business areas are responsible for its implementation. The handbook includes guidelines on the following topics:

• Employment: This guideline includes topics such as probation periods, job titles, secondary employment, and roles outside KONGSBERG.
• Work and overtime: This guideline includes topics such as working hours, core- and flexible hours, working from home, rest breaks and reduced working hours, overtime and travel time, overtime compensation according to the Working Environment Act, and guidance and guidelines for time registration.
• Sickness, vacation, and absence: This guideline includes topics such as personal sick leave, child or caregiver's illness, care for close relatives, vacation and compensatory time off, leave of absence, and application and registration of absence.
• Salary: This guideline includes topics such as salary, holiday pay, and overtime pay.
• Pension and insurance: This guideline includes topics such as pension and employee insurance, health insurance, and travel insurance.
• Resignation: This guideline outlines the three main reasons for resignation (resignation by the employee, retirement age, measures by the employer in case of underperformance or rule violations) as well as rules and routines for resignation, including a checklist for resignation, non-compete clauses, equipment and system access, and exit interviews.

Employment contract

All employees, including part-time and temporary employees, shall have a signed employment contract according to local law. The contract shall be written in a language understandable to the employee. All employees shall be informed about their rights and obligations associated with their employment. The employment contract is based on the principles described in the employee handbook.

Code of Ethics and Business Conduct

The Code sets clear expectations for how we expect our employees and leaders to behave and that we expect from our suppliers and business partners. The Code covers areas related to labour rights, such as;

• a good, safe and secure working environment,
• avoidance of child labour and compulsory labour,
• non-discrimination, based on gender, ethnicity, religion, and sexual orientation
• acceptable working hours and reasonable wage conditions
• freedom of association and the right of collective bargaining

We monitor whether our employees have conducted training related to the Code of Ethics and Business Conduct. Further details about the Code of Ethics and Business Conduct can be found in the Governance chapter page 101.

Process for Engagement

We have robust systems to address employees' needs and expectations through regular performance dialogues and employee engagement surveys. The Executive Vice President Business Support is operationally responsible for ensuring engagement with our workforce. The effectiveness of this process is evaluated by reviewing the results of the engagement survey, where we ask employees if they are aware of how to engage and report concerns at KONGSBERG.

Engagement through unions

We have established well-founded forums for cooperation with trade unions and organisations, which provide valuable contributions to addressing our challenges in a constructive manner. About half of our employees are unionised. In some countries, employers do not have the right to ask employees for this type of information. The Corporate Committee has been established to ensure good communication and coordination between KONGSBERG's management and the various trade unions in Norway. Regular meetings are held to discuss issues of common interest. The committee consists of the President & CEO, central managers at corporate and at the business area levels, in addition to union representatives from each of the business areas.

Engagement survey

We measure employee engagement globally to identify strengths and areas for improvement. Previously conducted every other year, in 2024, we introduced a new system to provide continuous feedback and meaningful insights, enhancing performance and supporting successful transformation. The Peakon platform offers real-time visibility into employee engagement, sentiment, and productivity throughout the employee lifecycle.

Performance dialogues, including exit interviews

Business areas are responsible for ensuring a process is in place for performance and development dialogues. These dialogues should be conducted for all employees at least once a year. Employees should be aware of the requirements for their position/role. Topics such as life phase, mobility, competence development, and career plans are covered during these dialogues. Employees can raise concerns with their line manager during the annual performance dialogue.

Employees leaving the company have the opportunity to provide feedback through an exit survey and interview. These processes help us understand the reasons for departures and gather valuable information on how we can become a better and more attractive employer.

Process to Remediate Negative Impacts and Reporting Channels

We adhere to the OECD principles of responsible business conduct, in line with our Directive for Human Rights risk assessments and the Norwegian Transparency Act, ensuring remediation where required. Each case is handled individually to ensure the best outcome for the individual and community.

The Group has a management response plan which ensures that we respond in a timely manner to incidents and minimise adverse consequences. The plan describes the procedure and internal responsibilities between the Board and management for handling compliance incidents. When a concern about a potential negative impact is reported, and investigation in started. The Corporate Compliance Officer (CCO) evaluates if the incident is high-risk and consults with the General Counsel (GC). An independent investigation lead and team are then assigned to submit an interim report, including a summary of facts, conclusions, root cause analysis, and remedial actions. The CCO and GC review the report and submit recommendations for further follow-up to the President & CEO, including any sanctions or other responses against a company and employee, or others acting on behalf of KONGSBERG.

We ensure that our activities do not cause or contribute to significant negative impacts on our own workforce through strict policies and regular evaluations. Our HR processes include continuous monitoring and improvement of working conditions, as well as training in ethical guidelines. We have also established a whistleblowing channel to capture and address any concerns.

When we detect incidents that require remediation, the case will be assigned to a dedicated action owner who is responsible for taking appropriate actions and management will be kept updated as necessary according to internal procedures. The effectiveness of the actions is assessed against the desired effect of the change and possible unintended consequences this may have had on other parties. The same process is followed regardless of whether the incident concerns our own employees, suppliers, workers in the value chain, affected communities or other stakeholder groups.

Our whistleblowing channel, through which we ensure effective handling of whistleblowing and that no one experiences retaliation for whistleblowing, is described in more detail in the chapter on Governance on page 101.

Actions and Resources

HR in each business area is operationally responsible for implementing measures to support our employees. Each area has action plans linked to HR goals. We measure the effectiveness of these actions through continuous feedback from employees via various communication channels, either directly between managers and employees or indirectly through engagement surveys or dialogue with employee representatives. These actions apply globally unless specified otherwise.

We will now describe the key actions undertaken in 2024, particularly related to working conditions, equal treatment, and equal opportunities for all. As these actions are part of general operations and ongoing improvement, we have not calculated the financial resources allocated to each action.

Actions to limit negative impact

In response to findings on harassment and discrimination, we have implemented several measures, including prevention training, ensuring protection for those using the reporting channels, and reducing barriers for reporting concerns. Stakeholders feedback has been a key focus in business area leadership meetings.

Actions related to working conditions

To help employees manage an at times high workload and ensure a healthy work-life balance, we offer flexible working hours and, where possible, the opportunity to work from home. Working hours are also discussed during performance dialogues. These guidelines and rights are detailed in the employee handbook. Success is indirectly assessed through employee satisfaction surveys and dialogue with employees and managers.

We prioritise monitoring turnover to retain employees and their expertise, with a particular focus on understanding those who leave within two years of starting. Exit interviews with HR or line managers help us pinpoint areas for improvement. To reduce early departures, we are refining our onboarding processes and conducting follow-up meetings during probation to address any issues promptly. Success is measured by tracking turnover rates.

Actions related to equal treatment and opportunities for all

We aim to increase the proportion of women, especially in leadership roles. To achieve this, we actively ensure qualified female candidates are selected in recruitment processes. We also provide diversity training for leaders and highlight women as role models in recruitment campaigns and internal events. We focus on recruiting women externally and motivating them internally to apply for leadership positions. Success is measured by tracking gender balance and the proportion of women in levels 1-3.

We do not have specific governing documents related to the inclusion of vulnerable groups in society, but we are dedicated to including individuals who have been out of the workforce by offering job training and engagement opportunities. This initiative targets those with CV gaps, partial disabilities, or wage subsidies. We work closely with NAV and partners like Unicus to facilitate job training. Success is measured by the number of individuals participating in job training or engagement each year.

See the Gender Equality Report 2024 Kongsberg Gruppen ASA for more information on the status of gender equality and what is being done to fulfil the activity obligation of the parent company. The report is published on our website.

Actions planned

In 2025, we will continue to focus on improving our efforts related to all targets, such as enhancing diversity, skill development, and ensuring our employees are motivated and engaged.

Targets and Metrics

KONGSBERG has several key HR targets to manage our impact and risks related to our workforce and to track the effectiveness of our actions. These targets reflect the focus areas in the HR Directive and aim to ensure qualified employees. The targets related to working conditions are designed to ensure that every employee has development opportunities and remains motivated. Performance dialogues provide employees with the chance to give feedback on their job satisfaction and discuss topics such as working hours. The targets related to equal treatment and opportunities for all are directly linked to the fact that we operate in an industry with low female representation, and we aim to increase the proportion of women. Additionally, we are committed to including individuals who are outside the workforce.

Target	Measured by (metric)	Status 2023 (base year)	Status 2024	Target 2024	Connection to IRO
91% of employees globally should have at least one formal performance review with immediate manager in 2024	Number of total completed annual performance reviews registered/number of employees who are entitled to have a performance review1	89%	90%	91%	• Impact connected with Working conditions
Not exceed external turnover of 5.3 % in 2024	Number of terminates during the year divided by the number of employees at the beginning of that period2	5.3%	4.5%	5.3%	• Impact connected with Working conditions
Increase the share of women in organisation to 21.8 % in 2024	Number of female representation divided by total number of all employees	21.6%	22.1%	21.8%
Maintain share of women recruited to managerial positions of 35 % in 2024	Number of female managers with personnel responsibility on level 1-3 divided by total number of managers on level 1-33	39.7%	31,9 %	35.0%	• Impact and risk connected with Equal treatment and opportunities for all
Engage 70 people for job training for 2024	Number of engagements through the year4	80	87	70

1 Employees who are ineligible are primarily due to long-term absence or new hires undergoing the probationary follow-up process, etc.

2 Voluntary turnover is not total (as defined by CSRD); it only includes employees who have chosen to resign voluntarily, excluding retirees, involuntary terminations, or employees transferring internally within KONGSBERG. 3 Recruited leaders include both internal and external hires.

4 This includes individuals in job training or positions where we receive partial or full support from the authorities while they work in the company. Employees supported by NAV or those requiring accommodations are also included in this number.

Process of setting targets

HR representatives from each business area are involved in setting targets, alongside the People Committee, which includes a representative from corporate management, a representative from the corporate HR function, and the Executive Vice President Business Support from each business area. HR targets are updated and presented quarterly to the Board. Our employees are indirectly involved in the goal-setting process through regular performance reviews and employee surveys, which ensure that their perspectives and needs are reflected in our HR goals and strategies.

Progress towards targets

To ensure employees are prioritised in training, skills, and development, close dialogue between employees and managers is essential. Performance dialogues facilitate this interaction, both through annual reviews and ongoing feedback. Employees do not participate in tracking progress towards the goals directly, but through elected representatives and employee representatives. Through performance dialogues, they contribute with possible areas for improvement.

The completion rate for annual performance dialogues increased from 89 per cent in 2023 to 90 per cent in 2024. Although we aimed for 91 per cent, there is a continuous focus on these dialogues in each business area, as reflected in the 2024 status. Turnover has decreased over recent years, from 6.4 per cent in 2021 to 4.5 per cent in 2024, outperforming our target of maintaining the previous year's rate of 5.3 per cent. We closely monitor early leavers, defined as those with less than two years of service, to understand their reasons for leaving through the exit process. We also focus on onboarding to ensure new hires have a strong start.

2024 was a strong growth year for KONGSBERG. This is reflected in the increase in the number of employees from 2023 to 2024 of 9 per cent. Progress in female representation has been a focus for many years, since 2015. When we look at the years from 2015 to today, we have steadily increased the share of female employees overall. We started in 2015 with 21 per cent, 22 per cent women in 2019, after the acquisition of Rolls Royce Commercial Marine we fell to 20 per cent, and in 2024 we are back to over 22 per cent women in total in KONGSBERG. The focus going forward will be the same as in previous years, to work to be a t workplace for women, as well as men. Female representation at management levels (levels 1-3) is 25 per cent. The recruitment of women to management positions was 31.9 per cent in 2024. Both the share of women in management positions, and recruitment to these, decreased last year. In particular,

the share of female leadership recruitment, from 39.7 per cent to 31.9 per cent. We aim to include individuals who are, or have been, outside the job market through job

Metrics for Working Conditions

Collective bargaining coverage and social dialogue

We adhere to all legal regulations concerning collective bargaining agreements, which cover over 100 per cent of our employees in the EEA. Some countries have different arrangements according to country-specific practices, traditions and local labour legislation. We have established well-founded forums for cooperation with trade unions and organisations, providing valuable contributions to address our challenges in a constructive manner. All employees in Norway are represented by union representatives in the corporate and company committees. All employees in EU countries are represented by union representatives in the European Works Council.

engagement or training. We achieved the goal of including more people than our target

Adequate wages

for 2024.

We offer a competitive compensation to all our employees. Regardless of location, we will ensure that wages and working conditions comply with local laws and regulations. We remunerate our employees based on both achieved results and desired behaviours. We have a global compensation policy to maintain a fair, competitive and financially responsible remuneration structure across the organisation. We also utilise the Korn Ferry salary benchmark database to maintain an up-to-date understanding of current standards across different regions. This approach allows us to ensure consistency and fairness in our compensation practices globally.

Metrics for Equal Opportunities for All

To fully leverage the extensive knowledge of our employees, we provide a thriving workplace with a strong focus on diversity, inclusion, and belonging. We believe this creates an environment where all employees can perform at their best. We are committed to promoting gender equality and preventing discrimination in violation of the Norwegian Gender Equality Act. As previously described, short- and long-term goals have been established to increase the proportion of women in recruitment and leadership positions.

Remuneration metrics

We strive to maintain a gender-neutral pay system. Our ambition, outlined in our global compensation guideline, is to achieve equal pay for women and men in equivalent positions with comparable competence and experience. In 2024, the average compensation for women was 8.4 per cent lower than for men. This calculation is based on actual base salary. Figures beyond base salary, such as bonuses, car allowances, pensions, and insurance, are based on actual financial data with assumptions for gender distribution. These calculations are limited to employees within the career system, representing 83 per cent of permanent staff.

The remuneration ratio between the highest-paid individual and the median of the remaining employees is calculated at 14.2. The highest-paid employee is the President & CEO, while the median remuneration for the remaining employees is estimated using the same data basis as the compensation gap described above.

Training and skill metrics

It's essential that all our employees have clear performance and development goals and a solid understanding of our guidelines and procedures. We believe a systematic approach facilitates successful development, including identifying training needs and opportunities for internal transfers. Strong development opportunities are crucial incentives for recruiting and retaining valuable employees. We invest in knowledge and skill sharing through internal and external training programs, as well as on-the-job development. Many of our training programs are digitalised, particularly for onboarding new employees and leaders. We have also implemented game-based training, especially for process and IT system training. We will report on the total number of training hours by gender starting next year.

All employees should have at least one formal performance dialogue with their line manager annually. In 2024, 90 per cent of employees globally completed this dialogue.

		Collective bargaining	Social dialogue
Coverage rate	Employees EEA (significant countries)	Employees non-EEA (significant regions)	Workplace representation (significant EEA countries only)
0-19%		n/a
20-39%		n/a
40-59%		n/a
60-79%		n/a
80-100%	Norway	n/a	Norway

	Employees at top management level
Gender	Number (head count)	Percentage
Female	89	25%
Male	271	75%
Other	n/a	n/a
Not reported	0	—%

Comment: Data reported are headcount of permanent employees (not full-time equivalents)

Distribution of employees by age group

Age group	Number of employees (head count)
Under 30 years old	2,339
Between 30 and 50 years old	8,119
Over 50 years old	4,171

Comment: Data reported are headcount of permanent employees (not full-time equivalents)

	Share of completed performance appraisals
Gender	%
Male	89.9%
Female	90.1%
Other	n/a
Total employees	89.9%

Comment: The proportion of employees who have completed their performance review is calculated based on the number of employees who had completed the process by the end of the reporting period, divided by the number of permanent employees who were sent the process

Sustainability Statement / Social / S-1 Own Workforce - Working Conditions and Equal Treatment for All

Gender diversity

The proportion of female leaders in top and middle management (levels 1-3) in the company is 25 per cent in 2024, down from 26 per cent in 2023.

89 271 Number of women in management Number of men in management

Age diversity

Average age is 42.5 years. We maintain an internal age limit of 72 years in most parts of our business.

Sustainability Statement / Social / S-1 Own Workforce - Health and Safety

Health and Safety

Introduction to the Topic

Safety comes first in KONGSBERG. Integrating Health, Safety, and Environment (HSE) into strategic planning enhances adaptability, promotes sustainable growth, and builds a high-performance culture and a safe, thriving workplace essential for achieving our future growth ambitions. We are conscious of the importance of this work and actively strive to create a safe and inclusive work environment while reducing unhealthy workrelated stress.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified material impact and risks related to the health and safety sub-sub topic.

ESRS sub-topic	ESRS sub-sub topic Type		Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Working conditions	Safety	Potential negative impact	We operate in several labour intensive sectors that involve exposure to hazardous materials, working at heights, operating heavy machinery and dealing with complex electronic systems. A physically challenging job can cause physical injuries, health issues, stress and anxiety in employees.	Own operations	Contribute directly	Short term
Working conditions	Health	Potential negative impact	Psychological health issues can occur. A physically challenging job, extensive travels, chemical exposure, and ergonomic work tasks can cause health issues, stress, and anxiety in employees. For some employees this may cause negative impacts on workers mental health.	Own operations	Contribute directly	Long term
Working conditions	Health and safety	Risk	As a global company we depend on compliance with various legislations related to health, safety and working conditions to operate. Non-compliance with legislation is a risk that can have significant consequences for KONGSBERG including legal penalties, and may lead to suspended operations and negative publicity that can harm our reputation. We depend on protecting our employees from harm, to foster a positive, productive and sustainable work environment.	Own operations	Contribute directly	Short term

Sustainability Statement / Social / S-1 Own Workforce - Health and Safety

Policies

KONGSBERGs Directive for Occupational Health and Safety outlines the minimum requirements to ensure the protection of the health, safety and work environment (HSE) for our employees, customer, contractor and partner across all business areas. The directive details purposes, roles and responsibilities, overarching goals, mandatory KPIs, and risk management prerequisites. It is based on ISO 45001 and ISO 14001, representing best practices. The directive aims to prevent accidents and ensure all employees are covered by management systems and relevant insurances. It is developed in collaboration with HSE functions in business areas, responsible for its implementation in their management systems. The directive is owned by the corporate HR and HSE functions, and employees can access it via our internal systems and intranet.

Process of Engagement

At KONGSBERG, we respond positively to reported HSE incidents and work proactively to ensure a safe work environment by talking about HSE with employees in various forums, committees and events. We emphasise the importance of reporting near misses, observations, and accidents at all organisational levels and with our suppliers and contractors. By highlighting the significance of HSE work, we aim to create an open environment where employees feel safe to report dangerous conditions and issues. Our leaders are responsible for ensuring employee involvement. Annually, we gather around 100 subcontractors for a conference to share HSE best practices and highlight our requirements and expectations. We believe that our long-term engagement will lead to a reduction in accidents and foster a healthier, more motivating workplace.

Process to Remediate Negative Impacts and Reporting Channels

KONGSBERG's reporting system for HSE incidents is called SYNERGI. High-risk incidents and personal injuries must be reported within 48 hours, and all high-risk incidents are investigated to identify root causes. The handling of incidents depends on their severity and type. All employees in Norway have access to occupational health services, while business areas outside Norway follow local practices and legislation. Additionally, all employees are covered by relevant insurance schemes. Our HSE

functions work closely with HR functions and local management on incidents related to occupational health, mental health, and well-being. Managers are responsible for implementing the right measures to mitigate potential negative consequences. Root causes, contributing factors, and preventive actions are compiled in lessons learned reports. The Group Director for HSE distributes relevant HSE reports, incidents, plans, strategy and status to the Corporate Management Team and the Board. We also seek experiences and best practices outside our organisation, participating in proactive work groups with the Federation of Norwegian Industries.

Actions and Resources

HR in each business area is operationally responsible for implementing adequate measures to support our employees. Each business area has action plans linked to specific goals. The effectiveness of actions related to health and safety is evaluated by reviewing our progress towards set targets. As these actions are part of general operations and improvement, we have not calculated the financial resources allocated to each action. These measures apply globally unless specified otherwise.

Actions related to health and safety

To create a robust HSE culture and proactive work environment, actions are required at all levels of the organisation. Training is fundamental, and all employees, contractors, and suppliers must receive relevant health and safety training. Information about risks, rules and requirements should be available before work can commence. Relevant HSE training is mandatory for all employees and can be conducted as e-learning, classroom learning, or role-playing, depending on the scope and location of the work.

In 2022, we invested in a new reporting tool, and in 2024, we ensured its availability across all business areas. The new tool has contributed to a record number of submitted reports by our employees. Corporate HSE functions conduct regular health and safety audits in selected business areas to support and review internal controls, especially after accidents and high-risk incidents, enhancing employee awareness, openness, and proactivity.

We have initiated the global roll-out and process to implement the Human and organisation performance (HOP) principles into our safety culture. HOP emphasises the interaction between people, technology and organisational conditions to achieve safe, efficient and psychological safe workplace.

Actions related to mental health

We mark the World Mental Health Day annually, as health and well-being are crucial to us. All business areas have collaborated on the roll-out and development of our mental health campaign, including communication on how to give and receive help. President & CEO Geir Håøy emphasised the importance of caring, asking, listening, and opening up to all employees. To measure the impact of our initiatives, employee satisfaction has become a key company goal, creating a systematic focus on mental health issues. We have also implemented several risk-reducing measures:

• Leadership training for all managers consistent and reliable management
• Voluntary training focused on well-being and time management
• A mental health campaign in October with internal and external contributions
• Audits and controls covering employee mental health topics
• Serious cases are handled according to internal procedures with the employee and their manager

Actions related to the environment

Our environmental processes and management systems monitor compliance with regulations, standards and legal requirements. Our internal reporting confirms no major environmental incidents, conflicts or accidents in 2024. We have also reviewed our environmental reporting processes to improve reporting quality. More information about our environmental work and our commitments can be found in the section on Environment on page 55.

Actions planned in 2025

We will continue the global roll-out of the HOP principles in all regions of our operation. We will also continue to communicate that every employee and contractor working for KONGSBERG has the mandate and right to stop any work that poses acute threat to life and health. Another important action is to review our competence and training registers, and to verify the robustness of our processes. We will continue to map and mitigate all operational high-risk routine tasks and update our processes regarding contractor incidents reporting. We will also review our minimum training requirements for contractors and suppliers.

Targets and Metrics

We have a "Vision Zero" ambition related to health, safety and environment: no employees, customers, contractors, partners, or the environment should be involved in accidents and incidents. This target aligns with the objective of the Directive for Occupational Health and Safety, addressing identified impacts, risks, and opportunities related to health and safety. By evaluating our progress towards these targets, we assess the effectiveness of our actions in mitigating identified health and safety impacts and risks.

Target	Measured by (metrics)	Status 2023 (base year)	Status 2024	Goal 2024	Connection to IROs
Reduce total recordable injuries (TRI) rate to 1.82 in 2024	Total recordable injuries per 1 million hours worked, extending first aid1	1.92	2.24	1.82	Impact and risk related to safety
Increase focus and awareness to high-risk incident (HRI) rate	High-risk incidents per 1 million hours worked2 0.52		0.65	no goal defined	Impact and risk related to safety
Reduce sick leave globally	(Total days hours to absence / Total available working hours) × 100	3.4%	3.4%	no goal defined	Impact and risk related to safety
Reduce sick leave to less than 3.4% for 2025 for operation in Norway	(Total days hours to absence / Total available working hours) × 100	4.0%	4.0%	3.4%	Impact and risk related to safety
Ensure that at least 75% of reported HSE cases are handled within deadline in 2024	Percentage of reported HSE cases that are closed within the defined deadline3	New KPI	69%	>75%	Impact and risk related to safety

Comment: Our reporting system for HSE incidents covers all employees and non-employees.

TRI includes injuries beyond first aid.

1

2

3

The HRI rate is based on 19 incidents in 2024.

Normal deadline is 14 days, which may be adjusted depending on the nature and complexity of the case.

Health and safety metrics
	Status 2024
The percentage of own workforce covered by health and safety management system	100%
The number of work-related fatalities, including own workforce and other workers on our sites	0
The amount of recordable work-related lost-time injuries for own workforce (LTI)	59
The rate of recordable work-related lost-time injuries, per million hours worked, for own workforce (LTI)	2.24
The number of cases of recordable work-related ill health for own workforce	Cases of work-related illness are followed up at the individual level. We are currently working on reviewing the reporting processes.
The number of days lost to work-related ill-health, injuries and fatalities for own workforce	502

Process of setting targets

The Group's overarching targets and strategic work are based on risk assessments and collaboration with business areas in the Group's HSE Committee. The Corporate Management Team holds ultimate responsibility for HSE across the Group, including setting overall targets and priorities, and following up on results, challenges, opportunities, accidents, and high-risk incidents. The Board of Directors is responsible for monitoring and reviewing these targets.

Progress towards targets

The TRI rate increased in 2024 due to a rise in injuries. Most injuries were classified as minor, with 28 serious injuries and one major injury. Our underlying injury statistics show a slight upward trend over the past five years. We have identified causes and strategies to reverse this trend. We focus on high-risk incidents (HRI) due to their potential for severe damage, helping protect both people and the environment. The HRI rate is gradually increasing due to improved reporting and heightened awareness. Global sick leave remains stable, ending at 3.4 per cent, the same as in 2023. Norwegian sick leave is above target but stable, ending at 4.0 per cent, also the same as in 2023. All business areas perform better than the average in the Federation of Norwegian Industries. Our employees reported a record number of HSE observations and improvement suggestions in 2024, with 69 per cent of all reported HSE cases handled and closed within the deadline. The target is more than 75 per cent. All TRI, HRI incidents, and sick leave results are reported and followed up according to our procedures. HSE status reports are distributed to the Corporate Management Team, the Board, and other management teams and employees.

Sustainability Statement / Social / S-2 Workers in the Value Chain

Workers in the Value Chain

Introduction to the Topic

We strive to respect and promote all internationally recognised human rights, including those against forced and child labour, as outlined in the UN International Bill of Human Rights. We also adhere to the International Labour Organization's (ILO) Declaration on Fundamental Principles and Rights at Work and applicable international humanitarian law standards. We require our suppliers to ensure compensation practices align with international standards and regulations, respect workers' rights, and provide a safe and healthy work environment.

Our suppliers play a crucial role in the value chain, enabling us to deliver products and services to our customers. How we and our supply chain manage workers in the value chain is essential for achieving our strategic goals. Sustainability and ESG requirements are integrated into our procurement processes and strategies to ensure effective supplier follow-up and risk management. Our impact on workers in the value chain is linked to our global sourcing of products and materials, including from high-risk countries.

Material Impacts, Risks and Opportunities

Our double materiality assessment identified material actual and potential negative impacts and risks in KONGSBERG's value chain related to working conditions and human rights (other work-related rights).

ESRS sub-topic	ESRS sub-sub topic	Type	Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Working conditions	Secure employment, Working time, Adequate wages, Social dialogue, Freedom of association/ participation rights, Collective bargaining	Potential negative impact	Our extensive supply chain includes suppliers in countries where the systematic risk for breaches in work-related rights is high, particularly concerning working time and fair payments. In these regions, labour unions are less prevalent, potentially increasing the risks that could impact workers' health.	Upstream	Contribute indirectly	Medium term
Working conditions	Health and safety	Potential negative impact	Our suppliers produce components, products, and systems that involve higher risk HSE operations, such as casting, forging, welding, machining, electrical, and heavy products. High levels of systematic HSE performance in the supply chain are crucial to ensure the health and well-being of all workers.	Upstream	Contribute indirectly	Medium term
Other work-related rights	Child labour and forced labour	Potential negative impact	Some of our suppliers are located in countries where the risk of human rights breaches is relatively high, which can significantly impact both individual workers and communities.	Upstream	Contribute indirectly	Medium term
Other work-related rights	Child labour and forced labour	Risk	We may face reputational risks if poor labour conditions or human rights violations are identified in our supply chain. This risk arises from the identified potential negative impacts.	Upstream	Not relevant for risks	Short term

Comment: Our identified potential negative impacts cover all products and services, including those related to our green transition.

Description of Workers in the Value Chain

Our suppliers deliver both direct and indirect products and services to our sites and customers. These suppliers employ workers to meet our requirements. Value chain workers are defined as blue-collar or white-collar workers who are employed by our suppliers. Blue-collar workers are considered to be at a higher risk of potential negative impacts due to their roles in manufacturing and production operations. Our direct procurement categories include fabrications, machining, castings, forgings, hydraulics, electrical, power products, and reference systems. Our indirect sourcing categories include logistics, IT, facility management, professional services, engineering services, production expenses, travel, and marketing.

As part of our due diligence requirements for supplier compliance risk management, country risk factors and sourcing categories are applied to identify very high- risk and high-risk countries with regard to identifying workers at greatest risk related to compliance, human rights and forced labour. The country risk factors are externally validated to provide latest risk information based on available external information and indices. To assess risks for forced and child labour, we use a cumulative risk rating based on the 2021 ITUC index, US Department of Child Labour and Forced Labour lists, Corruption Perception Index ratings, and the Global Gender Gap Report (WEF) country ratings. 1,832 of our suppliers are located in very high- and high-risk countries in 2024, while 92 per cent of suppliers (by spend) are in low or medium risk countries. High-risk countries include suppliers in Asia, Middle East and South America. Our inherent risk assessment identifies all direct procurement categories as having a high priority due to the type of products being managed in the supply chain. The Human Rights report for 2024 provides more detailed information on our human rights due diligence and can be found on our webpage.

Policies

All our supplier policies are implemented by the business areas. Supplier due diligence self-assessments and supplier audits are conducted by the business areas and are based on our Supplier Conduct Principles and Supplier Quality Requirements documents. These policies address how we manage potential impacts and risks related to workers in the value chain. The Supply Chain Vice President in each business area is responsible for ensuring that both documents are communicated to suppliers and that suppliers comply with the requirements.

Supplier Conduct Principles

The Supplier Conduct Principles (SCP) describe mandatory requirements for all our suppliers, communicated through purchase orders and contracts The objective is to ensure safe working conditions throughout our supply chain, ensuring that workers are treated with respect and dignity, impartially and fairly, that business operations are environmentally sound, and that business is conducted in accordance with internationally recognised principles and relevant international conventions relating to responsible business conduct. The SCP includes sections on human and labour rights, that suppliers should not practice retaliation on anyone raising or helping raise concerns quality and continuous improvement, the environment, business integrity, and implementation and administration. The directive explicitly addresses topics such as non-retaliation, human trafficking, forced, compulsory and child labour, alongside all the material topics related to working conditions identified in the double maternity assessment. The principles have been developed in accordance with OECD Guidelines for Multinational Enterprises and suppliers are expected to adhere to the core convention of the International Labour Organization (ILO). No breaches of the SCP have been reported in 2024. The directive is available to suppliers in six languages on our webpage and was updated on 1 July 2022 to include requirements to comply with the Norwegian Transparency Act. In 2024, we approved 14 suppliers to follow equivalent SCP documents.

Supplier Quality Requirements

To meet our directives, business areas have established product-specific mandatory requirements for suppliers, in addition to the Supplier Conduct Principles. These are communicated through purchase orders and contracts. The documents, known as Kongsberg Maritime and Kongsberg Discovery Supplier Quality Requirements (SQR) and Kongsberg Defence & Aerospace Supplier Quality Assurance Requirements (SQAR), require compliance with regulations, ISO standards, and specific quality, HSE, sustainability, conflict minerals, security, export control, and business continuity requirements. These documents are available to suppliers on our webpage.

Process for Engagement

In accordance with the Supplier Conduct Principles and due diligence requirements, we engage with suppliers through meetings, site visits, self-assessments and audits. However, we do not engage directly with value chain workers employed by suppliers, unless invited to by the supplier. Risk management is integrated into our procurement processes and strategies, including handling, mitigating, or escalating specific risks. This risk-based approach considers factors such as country risk, spend, and product or category type to identify risks that need addressing. The business areas are responsible for managing the due diligence process with their supply chains. Our due diligence requirements are described in our Directive for Compliance due diligence, risk management and follow-up of the supply chain and addresses working conditions, human rights and other sustainability topics.

We regularly engage with key suppliers to ensure that our supply chain impacts and risks are identified and addressed. Since we do not have direct contact with value chain workers, we work with our suppliers to enable transparency and collaboration to ensure that our risk assessments and engagement strategies are effective. We evaluate outcomes of our assessments on an ongoing basis to improve our work. In 2025, we plan to further improve our risk-based due diligence activity with suppliers in very highand high-risk countries by increasing the share of suppliers who have completed the human rights and labour rights modules in IntegrityNext and increasing the number of supplier audits. See Targets and metrics section below for more information.

Further information on the steps of the supplier due diligence process can be found in the chapter Management of relationship with suppliers on page 104.

Process to Remediate Negative Impacts and Reporting Channels

As part of our supplier due diligence process, we provide remediation to affected parties when required. Preventive work is crucial to ensure that we do not cause harm to workers in the value chain and to manage risks. We regularly conduct human rights due diligence with a risk-based approach to proactively mitigate risks before they require remediation. Country risks factors are applied with focus on very high- and high-risk countries. Other factors as part of the evaluation include spend, and sourcingor product category type. In 2024, 19 high-risks were identified in our supply chain related to HSE, ESG compliance and human rights, with 11 closed with corrective actions in 2024 and 8 are in-process (as registered in Q4 2024). The identified high-risks as defined by theme: HSE (6), lack in requirements flow-down (3), compliance (2), social Responsibility (1), IntegrityNext/system red flags to follow-up (7), with none considered to be severe human rights violations.

In cases where negative impacts have been identified that require remediation, the appropriate remediation action is evaluated on an individual case-by-case basis. All incidents are handled according to a standardised process, that follows the same steps as for incidents related to own workforce. The general approach, and how effectiveness is evaluated is described in more detail in the chapter Own Workforce on page 85.

Workers in the value chain can engage with us through our whistleblowing channel, available to everyone on our webpage. Information about the channel is shared with suppliers through regular communications, including conferences and webinars, and is part of our Supplier Conduct Principles. We expect suppliers to inform their employees about the channel, though we do not have processes to ensure this information is forwarded. No supplier whistleblower cases were registered in 2024. Further description of the channel and how to access it is provided in the Channels to raise concerns section under the Governance chapter on page 101.

Actions and Resources

Supplier relationship management and engagement is a central part of the procurement processes, with regular communication at all levels and including supplier due diligence follow up and risk management. Extensive communication to suppliers took place in 2024 with three supplier conferences and one global webinar held, with good attendance and engagement. Themes covered included our requirements and expectations for human rights (Norwegian Transparency Act, SCP, and whistleblower channel) HSE, ESG compliance, sustainability, security and export control. Additional engagement events in 2024 included the Group Indirect Supplier Forum at the Kongsberg Agenda, held for the first time and Kongsberg Maritime and Kongsberg Discovery business areas awarding the Sustainability Supplier of the Year for 2024. As these actions are part of our everyday operations, we have not calculated the specific financial resources allocated towards supplier management. We expect this to have increased suppliers' awareness about SCP ESG requirements, transparency on suppliers, and sub-contractors work, including work with human and labour rights of workers. The effectiveness of these communication forums is assessed continuously by observing participation and suppliers' ESG work, through self-assessments and audits.

Remediation actions are managed through our supplier due diligence requirements, including those resulting from supplier screening, self-assessment and audits. We did not have any incidents that required remediation action in 2024.

Targets and Metrics

1

2

We have not set, nor do we plan to set, targets that directly measure how we reduce our potential impact or manage material risks related to value chain workers. We engage with suppliers at a company level and not directly with workers. The principles outlined are mandatory requirements, and we expect suppliers to communicate them to workers and subcontractors, but we cannot measure the effectiveness of these guidelines and actions in reducing our potential impact and risk. However, we have set targets for riskbased supplier due diligence to follow up on ESG requirements, including human and labour rights. These targets are in line with the mandatory Supplier Conduct Principles and Supplier Quality Requirements documents and relate to all business areas. Steps to be taken for supplier self-assessment of ESG requirements and supplier audits are described in detail in the Directive for Compliance due diligence, risk management and follow-up of suppliers.

Process of setting targets

Targets have been developed in compliance, sustainability and governance functions in KONGSBERG. We have not directly engaged with value chain workers or their representatives, all supplier interactions are managed with designated supplier contacts. All targets are monitored and reviewed regularly and are part of the Supply Chain Management Reviews by Supply Chain Vice President.

Progress towards target

In 2024, 70 per cent of suppliers (by spend) completed the human rights and labour requirements module in our IntegrityNext system, a two per cent increase from 2023. Supplier audits increased to 134 in 2024, up from 119 in 2023, reflecting results from our inherent risk assessment.

The Supply Chain Vice President in each business area is responsible for monitoring progress towards our targets, and value chain workers are not directly or indirectly involved in this process. Overall, we have achieved the goals set for 2024. This work has laid the foundation for the actions planned for 2025 to enhance our activities with suppliers and workers within our value chain.

Target	Measured by (metric)	Status 2023 (base year)	Status 2024	Goal 2024	Connection to IROs and actions
70% of suppliers should be assessed for human rights and working conditions in IntegrityNext in 2024	Percentage of suppliers registered in IntegrityNext who have completed the human rights and labour rights questions asked1	70%	70%	70%	• Impacts and risks related to human rights and working conditions
130 supplier audits completed globally based on risk based assessment and impact priority	Number of suppliers audits conducted2	119	134	130	• Impacts and risks related ESG (including human rights and working conditions)

Comment: All numbers are collected by the business areas and consolidated at the Group level.

The percentage is based on 3,083 suppliers who have completed the human rights and labour rights module in IntegrityNext. Through the module, suppliers conduct a self-assessment of their work. Supplier audits include climate, environmental, social and governance requirements and are a key part of our supplier due diligence requirements.

Sustainability Statement / Social / S-3 Affected Communities

Affected Communities

98

Material Impacts, Risks, and Opportunities

The double materiality assessment identified impacts, risks and opportunities that KONGSBERG may have in relation to our affected communities. These are described in the table below.

ESRS sub-topic	ESRS sub-sub topic	Type	Description	Value chain location	KONGSBERG's involvement with impact Time horizon
Communities economic, social and cultural rights	Adequate housing, Adequate food, Water and sanitation, Land-related impacts, Security-related impacts	Potential negative impact	As a global actor, our products may have unintended negative impacts on communities and civilians, potentially resulting in loss of access to land, injuries, fatalities, or loss of livelihood.	Downstream	Contribute indirectly	Long term
Communities economic, social and cultural rights	Security-related impacts	Potential positive impact	Our defence solutions can protect people, communities, critical infrastructure, land, promoting security and stability worldwide in a complex geopolitical landscape.	Downstream	Contribute indirectly	Long term
Communities economic, social and cultural rights	Security-related impacts	Risk	Incorrect or irregular use of our products pose a potential reputational risk, which could weaken stakeholder trust. Without robust and stringent controls in place, this could impact operations, lead to legal challenges, and result in financial consequences.	Downstream	Not relevant for risks	Long term

Introduction to the Topic

KONGSBERG protect people and critical infrastructure and promote security and stability in a complex and dynamic geopolitical landscape. We recognise the potential impact and the human element in the use of our products, and how this may affect communities. The sale of defence-related products is governed by stringent regulations established and enforced in Norway and in the countries where we operate. Regulatory perspectives are built into our products. Our role as a supplier of defence solutions and technology is linked to Norway's national security policy and its international obligations as a member of the UN and NATO. Additionally, we deliver defence solutions from other countries we operate in with similar considerations.

Our reporting on affected communities is a relatively recent development, and the relevant processes, targets and metrics are therefore not yet standardised or fully documented. Parts of our business, such as suppliers and production locations, are subject to the Norwegian Security Law and will therefore not be reported on.

Definition of Affected Communities

KONGSBERG is present in over 40 countries worldwide, and our potential impact on affected communities may be widespread. Our affected communities range from residents near manufacturing and testing facilities to those in areas where our products are produced and used. Our most vulnerable affected communities are civilians living in conflict areas. People in conflict areas are always vulnerable due to the compounded threats to their security and livelihoods, which may lead to unwanted negative consequences and a lack of access to basic necessities and rights.

Sustainability Statement / Social / S-3 Affected Communities

Policies

KONGSBERG does not have any internal policies or processes specifically concerning affected communities. However, our commitment to these communities is ensured through adherence to international legislation, regulations and conventions, such as the Universal Declaration of Human Rights and International Humanitarian Law. In the future, we will consider whether there is a need to make adjustments to existing guidelines. These principles are embedded in the KONGSBERG Code of Ethics and Business Conduct, guiding all our actions. More information about the guidelines can be found on page 101.

Controversial weapon declaration

KONGSBERG has signed a controversial weapons declaration, committing us to not be involved in the production, development, storage, trade, or sale of non-conventional weapons (e.g., cluster bombs, landmines, biological and chemical weapons, blinding laser weapons, incendiary weapons, depleted uranium weapons). Nor we have involvement in nuclear weapons production, storage, or maintenance activities. The declaration is available on our website.

Export control

Our approach to running a global business requires a strong focus on compliance with all applicable export, import, transit and trade regulations.

Norwegian rules for exporting defence material are among the most restrictive in the world and forms the core of our approach and risk management. Transparency around defence material exports is an important principle in Norway. KONGSBERG consistently complies with all requirements set by the Ministry of Foreign Affairs regarding the application process, reporting, and statistics.

The Norwegian Parliament has decided that defence products shall only be sold to countries that are approved for export through an export application. The current Norwegian export control regulations are strict and clear, and provide necessary predictability. This has become more important after Russia's invasion of Ukraine, which is also perceived as a threat to the peace in Europe. Stable and predictable export control regulations are crucial to ensuring a credible defence that contributes to the security of the nation and its citizens, and to giving the armed forces access to technology, expertise, and infrastructure in times of peace, crisis, and war.

KONGSBERG also holds shares in companies, and has partners, suppliers, and customers in other countries. Compliance with export control regulations in other countries must therefore also be ensured. KONGSBERG has a comprehensive program for internal control and training in connection with our export activities.

Process for Engagement and Remediation of Negative Impacts

Currently, we do not have a formalised process to engage directly with our affected communities, which limits their influence on our decision making. However, our Code of Ethics and Business Conduct states that we will provide for or co-operate in remediation of negative impacts to society when appropriate. As described in the chapter on our own employees (page 88), the Group has a response plan to ensure that we limit negative consequences and find appropriate remediation. The same process also applies to incidents related to affected communities.

Our channel of raising concerns is open to everyone, including affected communities. We are continually working to improve our outreach to these communities, a commitment that will continue in the coming years. For more information about the channel and how KONGSBERG protects whistleblowers, please refer to the Governance chapter page 101.

Actions and Resources

We have not assessed specific actions that directly address the identified impacts, risks, and opportunities. Since our affected communities can be negatively affected in situations of war and crisis, it is difficult to implement measures aimed at these. However, we have launched a collaborative project with Patria, with the goal of collaborating on export controls.

Launch of Trade Compliance Project with Patria

The Trade Compliance Project is a collaboration between Patria and KONGSBERG. The export of defence materiel is strictly regulated by national legislation and international treaties. Companies in the defence sector operating in international markets must therefore be well-versed in these regulations and continuously develop their expertise. This is why we launched a joint Trade Compliance project with Patria that seeks to strengthen both companies' expertise and operating models in the field of export control. For defence companies, having a strong compliance program is crucial. It demonstrates, to both the authorities and other stakeholders, that the company takes these matters seriously and is engaged in systematic efforts to comply with legislation and regulations.

Targets and Metrics

We do not have any targets and metrics concerning affected communities, but we consistently monitor the whistleblowing channel for issues raised that might be relevant to these communities.

Governance

Sustainability Statement / Governance / Business Conduct and Anti-Corruption

Business Conduct and Anti-Corruption

Introduction to the Topic

We are dedicated to ensuring responsible business conduct throughout our operations and value chain. Our values are embedded in our Code of Ethics and Business Conduct, which provides the foundation and principles that underpin everything we do. We expect everyone at KONGSBERG, as well as our business partners, to demonstrate integrity, holding ourselves and everyone we work with to high standards. Our value creation relies on high ethical standards to build trust with employees, owners, partners and local communities. The Compliance function at KONGSBERG is responsible for commercial compliance, trade regulations, privacy and human rights.

A strong corporate culture and ethics are essential for achieving our goals and are integrated into our values. They guide employee behaviour and shape our identity and reputation. As a global company with an extensive supply chain, our approach to anti-corruption, bribery, and business conduct has implications for many people along our value chain. We have a robust quality and compliance regime to ensure that we always adhere to the laws, rules, and requirements set by the industries and countries that we operate in. We are committed to compliance with laws and regulations, ethical behaviour, sustainability, good governance and respect for human rights, maintaining an open dialogue on ethical issues. We aim to lead with a best-practice mindset, across the entire Group in reporting and transparency requirements. We will never compromise our values for results, and our Code of Ethics and Business Conduct is fully integrated into our business operations at every level of the organisation.

We have clear guidelines and principles towards internal compliance risk assessment, covering environmental, social, and governance (ESG) topics and these are applied in all business decisions and processes throughout the organisation. We align our processes with the UN Global Compact and the OECD Guidelines for Multinational Enterprises.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified material impact and risks for the subtopics corporate culture and avoiding corruption and bribery.

Corporate culture	Potential positive impact	Our culture is defined by our corporate responsibility, and we strive to positively influence our global supply chain by holding them to high standards of integrity.	Upstream	Contribute directly	Short term
Corporate culture	Risk	An inherent risk in our operations is the potential lack of independence or falling victim to bribery and fraud. This can lead to financial losses and indirect effects through time spent managing incidents and the resulting productivity losses.	Own operation	Not relevant for risks	Short term
Corruption and bribery	Risk	As a global company, we operate in countries with high corruption risks. Without measures to mitigate this risk, we could face both financial losses and reputational damage.	Own operation	Not relevant for risks	Short term
Corruption and bribery	Risk	The highest risk for corruption and bribery is identified for downstream value chain, as the use of market representatives and agents limits our control. If not	Downstream	Not relevant for risks	Short term

repercussions.

mitigated, this could also result in financial and reputational

ESRS sub-topic Type IRO description Value chain location

Fostering a Strong Corporate Culture

Operating with integrity is not only essential to our licence to operate, but it also embodies our values. KONGSBERG's Code of Ethics and Business Conduct clearly outlines the culture and expectations for fundamental attitudes, setting standards for how to interact with employees, leaders, customers, suppliers, business partners, and society in general. Everyone who works at KONGSBERG, and all our business partners, must sign our Code of Ethics and Business Conduct, which is available on our website. The Code is approved by the Board and fully implemented throughout the organisation. The Code includes a description of our responsibilities, principles for how we treat people, commitment to sustainable operations, and reliable business practices. Topics covered include anti-corruption, avoiding conflicts of interest, fair competition, trade regulations and sanctions, anti-money laundering, and whistleblowing principles. The guidelines clearly state that there should be no retaliation against individuals who report objectionable matters. The Code is based on international standards and regulations, and guidelines related to social responsibility, including the UN Global Compact, the OECD Guidelines for Multinational Enterprises, the ILO Conventions, and membership of the Transparency International.

We have a robust compliance program with over 60 dedicated employees with effective tools for due diligence, traceability monitoring, and auditing. Our Ethics and Compliance Program ensures that our business practices are aligned with our values and applicable laws and regulations in the countries where we operate. We focus on three pillars:

KONGSBERG's involvement

with impact Time horizon

1. Prevention

We seek to embed a culture of integrity and ethics across the Group and with the business partners in our value chain.

2. Detection

We encourage and support employees and third parties to speak up and raise concerns. We perform control and monitoring to measure compliance and to provide assurance.

3. Response

We have tools to investigate and perform due diligence. We take a risk-based approach and where appropriate, sanction confirmed breaches of our Code or governance. We also use concerns and due diligence to manage risk and improve our program. We continuously monitor our program to align with good practice and legal and legislative requirements.

Sustainability Statement / Governance / Business Conduct and Anti-Corruption

We regularly review and monitor our programme to adopt it to best practice, and legal and regulatory requirements.

How our business partners behave can have a direct impact on our operations. It is critical to manage our relationships well, including how we select, contract and monitor them. We are committed to working with business partners who share our values and focus on integrity. Our processes include due diligence engagement processes, ongoing monitoring and assurance activities including, but not limited to, audits. Where we identify actual or potential risks, we manage or mitigate them as appropriate. Due diligence is being performed on all of our third parties using a risk-based approach. That means that those with a high-risk profile are getting more attention and a more thorough analysis than those with a low risk profile. This approach helps us stay efficient while still handling risks appropriately.

Compliance Training

In 2024, we achieved over 90 per cent attestation of the Code of Ethics and Business Conduct. We conduct regular compliance training, both general and tailored, based on employees' role within the company and business area. KONGSBERG employees are informed of our expectations regarding business conduct and anti-corruption efforts as part of the onboarding process. Our guidelines require all employees to make annual declarations regarding any actual or potential conflicts of interest.

We offer targeted training based on company functions, delivered through both regular classrooms and web-based formats. The topics covered include, anti corruption and bribery, gifts and hospitality, and conflicts of interest. In 2024, all executive leadership groups completed compliance training, including anti-corruption and bribery training. All business areas are committed to conducting and reporting on the training program, which follows a three-year cycle.

All employees in positions assessed as high-risk receive regular training. The Board received training in 2023, and administrative bodies have received regular compliance updates alongside their training.

Combating Corruption and Bribery

KONGSBERG has a robust anti-corruption program with established policies, preventative measures, and audits to ensure vigilance in this critical area. Concerns about unlawful behaviour or breaches of our Code of Ethics and Business Conduct are primarily identified through our whistleblower channel and supplier due diligence process. Our country risk analysis, part of the due diligence process, has identified the highest corruption risk among suppliers in Asia and South America. More information

about our procedures for ensuring independence and objectivity can be found in the description of our whistleblower channel in the next chapter.

We work to prevent unlawful behaviour by providing appropriate training and clear guidelines for employees on expected conduct. At a Group level, we have established a control environment that ensures the proper work routines, attitudes, capacity and skills, while business areas manage and implement these processes. Our anticorruption training includes employees, business partners, and suppliers, focusing on follow-up routines particularly related to human- and worker's rights. We encourage our employees to report any unlawful or unethical conduct through our channels. Monitoring, audits, and follow-ups are our primary activities to identify, detect, and investigate potential corruption incidents. The corporate ethics and compliance team include independent investigators and conducts periodic quality assurance activities. A law firm is engaged to audit the program every three years.

The business areas provide the Chief Compliance Officer (CCO) with a comprehensive compliance report annually, as well as quarterly status reports. These reports cover all aspects of the compliance function, preventive actions, and KPI status. The CCO reports to the Board twice a year, the Audit and Sustainability Committee three times a year, and the Corporate Management Team on a regular basis. The compliance function is an independent organisation, with the CCO reporting to the President & CEO, the Audit and Sustainability Committee, and the Board.

We have not been fined or convicted for any corruption or bribery-related crimes during the year.

Channels for Raising Concerns

KONGSBERG encourage all employees and stakeholders to report any potential ethical concerns or misconduct. We own and operate an openly available reporting channel on our website for employees and external stakeholders. Alternatively, concerns can be emailed to ethics@kongsberg.com. The channel is anonymous to ensure that users feel safe to report concerns. Employees can also raise concerns through KONGSBERG's compliance management system, directly to managers, local HR representatives, business area or our corporate ethics and compliance team. We believe that fostering an environment where employees feel comfortable raising issues and concerns without fear of retaliation promotes openness, leading to improved business performance and supporting our values.

Information about the channel is made available to employees through internal information channels, training related to the Code of Ethics and Business Conduct, and anti-corruption training. All concerns raised are registered in our internal compliance management system and triaged by KONGSBERG's compliance team. Based on the

case's attributes, it is further assigned to an independent investigator. This process is in detail described in the Own Workforce chapter page 85.

We promptly, independently, and objectively investigate business conduct incidents, including corruption and bribery. The ethics and compliance teams regularly train on investigation processes to ensure proper procedures are followed.

Our suppliers are informed about the channel as part of the onboarding process and when Supplier Conduct Principles requirements are flow-down through contracts and purchase orders. Currently, we do not have a specific process to ensure affected communities are aware of the channel, as this is a new focus for us. No whistleblower cases from suppliers were registered in 2024, despite communication about the channel at supplier conferences and webinars.

We find that the number of concerns reported to generally be low, especially related to the supply chain. To ensure that we receive reports from suppliers, we are working to strengthen the competence related to human rights and reporting for those who conduct supplier audits. Additionally, we provide information about the channel in dialogue with suppliers and make the information available by offering guidelines in multiple languages. To ensure a good reporting culture internally, we maintain a high focus on training related to ethical guidelines. Some business areas plan to conduct analyses in 2025 to identify barriers to reporting.

Number of Incidents and Complaints Reported

In 2024, KONGSBERG had a total of 75 concerns raised through the various methods. 21 of the cases concerned accusations of discrimination and harassment. We have received two complaints of human and social rights coming from our own workforce, and no cases of severe human rights incidents. We had two cases related to corruption and bribery.

Political Engagement

We actively engage in political processes in line with our commitments and strategic ambitions. Close collaboration with public and private parties has always been important in KONGSBERG's history and is crucial for delivering on our strategic ambition to create long-term value. Our government relations work provides an opportunity to enhance our positive impact on our surroundings, in line with our purpose and values. Our political engagement aligns with our business strategy and priorities, including our commitment to developing the company in a sustainable direction.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified one material risk for the sub-topic political engagement.

ESRS sub-topic Type		Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Political engagement	Risk	The defence industry primarily conducts business with the public sector and is heavily regulated. Our business is a highly politicised, and if our activities are perceived as inappropriate, it could damage our reputation.	Own operation	Not relevant for risks	Medium term

Political Influence and Lobbying Activities

The Group Executive Vice President Public Affairs is responsible for overseeing our government relations. In line with our strategy, we regularly interact with external stakeholders on the following key themes and topics:

• Global trends and developments: We collaborate with authorities in the United States, the European Union Institutions, think tanks, NGOs and the United Nations on issues related to security and sustainability.
• European Union policy and regulations: We focus on issues related to the defence industry, space, maritime, oceans, EU Taxonomy, and critical infrastructure.
• Norwegian authorities: We engage with the government, parliament, and public support systems on various policy areas, such as Norway's Long-Term Plan on Defence, green maritime strategy, Norway's Climate Action Plan, the export control system, space policy, and critical infrastructure.
• International engagement: Participation and coordination with the Norwegian government during state and official visits, as well as expo engagements, are priorities to showcase KONGSBERG's technologies in emerging markets.

Our goal is to increase participation in public debates on climate, the environment, and social issues, especially where collaboration and dialogue between public and private actors are crucial for developing leading technological solutions and practices.

A key part of our government relations efforts is interaction and close collaboration with trade unions, business organisations, NGOs and think tanks. These efforts will be increasingly important to mitigate risks, enhance the Group's reputation and brand value, and build strong relationships with key stakeholders.

We do not provide financial or in-kind contribution to political parties, their elected representatives, or individuals seeking political office. However, we are a member of various business organisations that actively influence decisions at both the Norwegian national, and EU levels. We are part of the Norwegian Confederation of Enterprise (NHO) and several of its subordinate trade associations, such as Norsk Industri. We are also members of Maritimt Forum, an interest organisation for the Norwegian maritime cluster. Our total financial contribution to these organisations, in membership fees, amounted to MNOK 12 in 2024. Additionally, three KONGSBERG representatives have been appointed to serve on the boards in these business associations.

No members of the Board have held comparable position in public administration (including regulators) in the two years preceding 2024. However, a new member to the Public Affairs team joined the organisation in 2024, having previously served as Committee Secretary for the Norwegian Parliament's Standing Committee on Foreign Affairs and Defence. Our subsidiary Kongsberg Defence & Aerospace is registered in the EU Transparency Register with registration number 385881749297-85.

Sustainability Statement / Governance / Management of Relationships with Suppliers

Management of Relationships with Suppliers

Introduction to the Topic

We aim to establish a responsible supply chain in collaboration with our over 13,400 global suppliers. We place great emphasis on maintaining a sustainable supply chain that responsibly manages our social and environmental impacts. KONGSBERG's diverse group of suppliers contributes to our global product deliveries, and systematic, effective cooperation with them is a key part of our strategy for responsible business operations. This approach improves our risk management and enhances quality throughout the value chain.

Material Impacts, Risks, and Opportunities

ESRS sub-topic Type		Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Management of relationship with suppliers	Potential negative impact	We play a crucial role in the operations of many of our suppliers and sub suppliers. If we fail to pay our suppliers on time and they experience cash flow issues, it could negatively affect their employees.	Own operation	Contribute directly Short term

Supplier Payment Practices

Supplier payments are managed according to our Supplier Conduct Principles (SCP) and other internal requirements deployed in the business areas. We are committed to timely payments to suppliers, guided by the principles outlined in our Code of Ethics and Business Conduct and SCP. We have implemented a comprehensive source-topay system for indirect purchases and invoicing, facilitating the improvement and digitisation of payment processes. KONGSBERG's standard payment terms are focused on our strategic and high value suppliers, but we also look to support small and medium sized enterprises. This includes a supplier finance scheme offered by Kongsberg Maritime, which provides suppliers with the facility to improve their cash-flow. Our general approach to managing suppliers and our SCP are described in the Workers in the value chain chapter on page 95.

The following table summarises our payment practices by business area.

Payment Practices	Kongsberg Maritime	Kongsberg Digital	Kongsberg Defence & Aerospace	Kongsberg Discovery
Average number of days to pay invoice	50	42	50	20
Standard payment terms in number of days	60	60	60	30
Percentage of payments aligned with standard payment terms	67%	67%	55%	92%
Number of outstanding legal proceedings for late payments	0	0	0	0

Comment: Data is directly from ERP and finance systems and no representative samples have been used.

Sustainability Statement / Governance / Management of Relationships with Suppliers

Supplier Due Diligence

We have a risk-based approach, aligned with OECD's due diligence principles in our selection of suppliers. The process includes supplier screening, requirements flowdown through contracts and purchase orders, supplier self-assessments via the IntegrityNext system, and supplier audits. Identified risks are evaluated and addressed as part of the procurement process. Several factors, referred to as "key principles", are evaluated including environmental, social and governance aspects.

KONGSBERG only collaborates with suppliers whose values align with our ethical standards. Suppliers must comply with all applicable laws and regulations. We conduct continuous due diligence and risk management when selecting, renewing, or managing supplier relationships, in accordance with OECD Guidelines for Multinational Enterprises.

Sustainability Statement / Governance / Security and Cybersecurity

Security and Cybersecurity

Introduction to the Topic

With our long-standing heritage of delivering mission-critical high-tech solutions to defence, space, maritime, and energy industries, we have consistently prioritised security. This includes the protection of personnel, information and property. In today's digital age and complex geopolitical landscape, addressing these security concerns has become increasingly vital for businesses. Security and privacy by design are fundamental principles in our software development and lifecycle management. Security is essential to deliver high-quality services, meet safety requirements and is a crucial element of our strategy and operations.

In the current geopolitical climate, KONGSBERG faces increased security challenges. As a provider of mission-critical high-tech solutions, we are especially exposed to cyber and physical threats from foreign intelligence services. Additionally, the rapid development of artificial intelligence introduces a new layer of uncertainty to the cyber domain. This chapter will focus on KONGSBERG's efforts related to security, including cyber-, personnel- and physical security.

Material Impacts, Risks, and Opportunities

The double materiality assessment identified two material risks for the entity specific topic security and cybersecurity.

Entity specific topic	Type	Description	Value chain location	KONGSBERG's involvement with impact	Time horizon
Security and cybersecurity	Risk	We may be subjected to cybersecurity risks as we manage sensitive customer information, including data related to national defence. Failure to mitigate these risks could lead to operational disruptions, substantial financial losses, and reputational damage.	Own operation	Not relevant for risks	Short term
Security and cybersecurity	Risk	We face increasing risks of potential physical sabotage to property and assets. Companies involved in weapon donations to Ukraine are particularly at risk. The consequences can be operational, financial, and reputational.	Own operation	Not relevant for risks Short term

Policies

We have established governing documents to ensure security, cybersecurity, and emergency preparedness across the organisation. These documents are accessible via the management system or intranet and apply to all employees. While some business areas have additional security-related directives and policies, this overview focuses on Group-level directives.

Directive for Security Management

KONGSBERG's Directive for Security Management outlines roles and responsibilities related to security management and covers all security disciplines. Its purpose is to set minimum requirements that all business areas must follow to ensure adequate protection of KONGSBERG. Our President & CEO is responsible for security and delegates the implementation and monitoring responsibilities to the EVP & President of each business area, which is followed up by the Group Chief Security Officer (Group CSO).

Directive for Emergency Response Management

KONGSBERG's Emergency Response Management directive provides a structured approach to crisis management, aiming to establish a clear framework reflecting best practices in emergency response. It ensures all personnel understand their roles and responsibilities during an emergency and applies to all business units and subsidiaries where we own 50 per cent share or more. The Group CSO is responsible for this document and ensures a holistic approach to emergency preparedness.

Travel Directive

KONGSBERG's Travel Directive outlines policies and procedures for business travel to ensure personell safety during business travel. It aims to facilitate safe, efficient, and cost-effective travel for all employees and managers. Executive managers in the respective business areas are mutually responsible for this document.

Sustainability Statement / Governance / Security and Cybersecurity

Actions and Resources

Security is a high priority in KONGSBERG and an integrated part of our risk management system to balance our business goals and efficiency. We will now describe the most important measures we have worked on in 2024 and where not described, we have not measured the effect of the measure. As these measures are considered part of general operations and continuous improvement, we have not calculated the financial resources allocated to each measure.

In 2024, Group-level security underwent reorganisation to better support KONGSBERG's growth. New resources were introduced, including the establishment of a new department supporting all business areas. This department, Security Advisory & Services, focuses on crisis incidents and emergency training to reduce the physical risk.

The Directives for Security Management and Emergency Response Management underwent significant revisions in 2024 to align with current threat levels and enhance future robustness. These updates aim to reduce the physical security risks by streamlining processes and establishing clear local responsibilities within each business unit. The Security Committee, led by the Group CSO reports directly to the President & CEO and includes representatives from all business areas, Chief Security Officers, Chief Information Security Officers, and export control representatives. The Group CSO also oversees the Group's overall security policy and ensures the security strategy reflects the Group's operations, risk landscape, and challenges. Each business area is tasked with establishing and maintaining adequate security measures.

We also improved the physical security of our head office in 2024, as well as other important sites in Norway. The restructuring of Kongsberg Defence & Aerospace has granted the divisions greater local responsibility for security, ensuring that our facilities remain secure and resilient against potential threats.

The Kongsberg Cyber Security Center (KCSC) has been a focus area and will continue to expand in 2025, enhancing and professionalising its services. In 2024, a new roadmap was developed to introduce new services across all business areas, supported by a significant increase in personell at KCSC and a corresponding investment in a new security operations centre. This strategy aims to enhance our capabilities in monitoring and responding to cyber threats, ensuring robust protection for our digital assets and infrastructure.

External audits in accordance with ISO/IEC 27001 have been conducted across all business areas with the aim of reducing cybersecurity risk. Kongsberg Defence & Aerospace was also subject to an external audit from the Defense Industrial Base Cybersecurity Assessment Center. In 2025, Kongsberg Defence & Aerospace will continue to implement the Cybersecurity Maturity Model Certification program as mandated by the US Department of Defense. We measure the impact of the initiative by mapping the proportion of business areas that have been audited.

Employees are regularly required to undergo training to stay informed about cyber and physical security at KONGSBERG. In addition, emergency personnel must annually conduct four physical emergency training sessions. We measure the impact of the initiative by mapping the number of people who complete the training annually.

October is designated as our security month, featuring articles and presentations from external experts to raise employee awareness of security. All personnel nominated for positions in an Emergency Response Team (ERT) must have the necessary personal and professional qualifications. A minimum of four training sessions per year is required for each ERT member.

KONGSBERG has adopted Binding Corporate Rules (KONGSBERG BCR). These provide us with a legal basis for transferring personal data from Group companies established within the EEA to Group companies established outside the EEA. The Binding Corporate Rules have been approved by Norwegian and other relevant data protection authorities and are an important means of demonstrating compliance with the GDPR.

Targets and Metrics

KONGSBERG has developed three targets to assess how effectively our measures reduce risks related to security and cybersecurity. The targets related to auditing and training in the table below align with the objectives of the Directive for Security Management, while the target related to emergency training aligns with the Directive for Emergency Response Management.

		107
--	--	-----

Target	Measured by (metric)	Status 2024 (base year)		Goal 2024 Connection to IROs
External audit of all business areas according to ISO/IEC 27001 each year	Share of business areas with external audit1	100%	100%	• Risks related to cybersecurity • Conduct ISO audits
80% of employees should conduct security e-learning each year	Share of employees completing e-learning on security and cybersecurity2	86%	80%	• Risks related to cyber, personnel, and physical security • Mandatory training • Marking October as security month
All emergency personnel should conduct four emergency response trainings per year	Share of emergency personnel completing four emergency physical trainings per year3	75%	100%	• Risks related to personnel and physical security • Improvement of physical security at offices and facilities

1 The percentage of business areas is based on the four business areas. During the ISO 27001 lifecycle, an annual surveillance audit by a third party is required. Audit firms conducting these audits include Nemko Scandinavia, Lloyd's, and DNV.

2 Training figures include employees in Kongsberg Defence & Aerospace and Kongsberg Digital. Kongsberg Maritime and Kongsberg Discovery have introduced a new Learning Management System (LMS), hence we do not have sufficient data for reporting for 2024. Processes, expectations and requirements are the same for all business areas, but the content of the training vary to cater to the different industry sectors. 3 Emergency personnel are employees with critical roles in management of all types of crises, and consist of less than 10 employees for each business area. The emergency training is developed in line with recommendations from the Norwegian Industrial Safety Organisation. After each emergency exercise, a report is written to document participant attendance. During 2024, three out of four business areas met the target for number of emergency response trainings.

Process of setting targets

Chief Security Officers (CSO) and Chief Information Security Officers (CISO) in all business areas have been involved in setting targets. The target related to security training is a requirement in ISO/IEC 27001 implementation.

Progress towards targets

Security and cybersecurity targets were established for the first time in 2024, so there are no figures for 2023. In line with our goals, all business areas have undergone third-party audits. Additionally, 86 per cent of employees received security training and all emergency personnel in three of four business areas completed the required emergency trainings. For 2025, we plan to release new targets and develop a process for monitoring and reviewing them. The targets will be reported to the Group SCO yearly.

Chapter 4

Financial Statements ¹⁰⁹ Financial Statements and Notes 2024

191 Statement from the Board and the CEO

192 Auditor's Report 2024

Financial Statements and Notes 2024

Page			Page
KONGSBERG (Group)			notes cont.
110	Consolidated Statement of Income			18	Other non-current assets
110	Consolidated statement of comprehensive income			19	Receivables and credit risk
111	Consolidated statement of financial position as of 31 December			20	Financial instruments
112	Consolidated statement of changes in equity			20A	Fair value hedges
113	Consolidated statement of cash flow			20B	Currency risk and currency hedging
114	Notes		159	20C	Cash flow hedges and hedging of net investment in foreign entity
114	1	General information	161	20D	Interest rate risk on loans
114	2	Basis for the preparation of the consolidated financial statements	163	20E	Liquidity risk
115	3	Fair value	163	20F	Summary financial assets and liabilities
116	4	Management of capital and financial risks	165	20G	Assessment of fair value
119	5	Operating segments	165	20H	Estimation uncertainty
122	6	Revenue recognition of customer contracts	166	21	Cash and cash equivalents
128	7	Shares in joint arrangements and associated companies	166	22	Share capital
130	8	Inventories	168	23	Provisions
130	9	Personell expenses, remuneration to Executive Management and the Board	170	24	Other current liabilities
132	10	Pensions	170	25	Assets pledged as collateral and guarantees
136	11	Property, plant and equipment	171	26	Auditor's fees
138	12	Leases	172	27	List of Group companies
141	13	Intangible assets	174	28	Transactions with related parties
144	14	Impairment testing	175	29	Definitions
147	15	Financial income and financial expenses	175	30	Events after the balance sheet date

Page

Kongsberg Gruppen ASA

Statement of income

177		Statement of financial position as of 31 December
178	Statement of cash flow
179	Notes
179	1	Accounting policies

180	2	Equity reconciliation

181	3	Shares in subsidiaries

181	4	Personnel expenses and auditor's fees

182	5	Pensions

183 6	Income tax
----------	------------

• 7 Long-term interest-bearing loans and credit facilities
• 8 Guarantees
• 9 Related parties
• 10 Currency hedging
• 11 Cash and cash equivalents

17 Earnings per share

16 Income tax

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

KONGSBERG (Group)

MNOK	Note	2024	2023
Operating revenues	5, 6	48,872	40,617
Total Revenues		48,872	40,617
Material cost	5, 8	(17,689)	(15,334)
Personnel expenses	5, 9, 10	(15,764)	(13,691)
Other operating expenses	5, 26	(7,392)	(5,556)
EBITDA	5, 29	8,028	6,037
Depreciation property, plant and equipment	5, 11	(577)	(479)
Depreciation leasing assets	5, 12	(485)	(493)
Impairment of property, plant and equipment	5, 11	—	(4)
Amortisation intangible assets	5, 13	(436)	(422)
Impairment of intangible assets	5, 13	(23)	(39)
Earnings before interest and taxes (EBIT)	5, 29	6,507	4,600
Share of net income from joint arrangements and associated companies	7	441	358
Financial income	15	397	172
Financial expenses	15	(613)	(319)
Interest expenses leasing on liabilities	12, 15	(148)	(136)
Earnings before tax		6,584	4,675
Income tax expense	16	(1,441)	(959)
Earnings after tax		5,144	3,715
Attributable to:
Equity holders of the parent		5,126	3,712
Non-controlling interest		18	4
Earnings per share / Earnings per share diluted, in NOK
– for the period's result	17	29.14	21.08
– for the period's result, diluted	17	29.14	21.08

KONGSBERG (Group)

MNOK Note	2024	2023
Earnings after tax	5,144	3,715
Specification of other comprehensive income:
Items to be reclassified to profit or loss in subsequent periods:
Change in fair value, cash flow hedges
– Hedging of signed customer and supplier contracts 20C	(134)	170
– Cross-currency swaps 20B, C	(105)	(77)
Tax effect cash flow hedges 16	53	(20)
Translation differences currency 20B	376	426
Total items to be reclassified to profit or loss in subsequent periods	190	499
Items not to be reclassified to profit or loss:
Actuarial gains/losses, pensions 10	(51)	(53)
Tax effect on actuarial gain/loss on pension 16	11	11
Total items not to be reclassified to profit or loss	(40)	(42)
Other comprehensive income	150	457
Comprehensive income after tax	5,294	4,172

Comprehensive income after tax	5,294	4,172
Attributable to:
Equity holders of the parent	5,277	4,160
Non-controlling interest	17	11

Consolidated Statement of Financial Position as of 31 December

KONGSBERG (Group)

MNOK Note	2024	2023
Assets
Non-current assets
Property, plant and equipment 11	6,804	5,588
Leasing assets 12	1,959	1,668
13, Goodwill 14	3,891	3,886
Other intangible assets 13	2,066	2,066
Deferred tax assets 16	509	331
Shares in joint arrangements and associated companies 7	4,634	4,259
Other non-current assets 18	378	541
Total non-current assets	20,240	18,338
Current assets
Inventories 8	7,274	6,848
Trade receivables 19	10,662	8,722
Customer contracts, assets 6	13,435	10,500
Financial derivatives 20A	2,356	1,887
Other short-term receivables 19	1,154	951
Cash and cash equivalents 21	14,293	5,975
Total current assets	49,174	34,884
Total assets	69,414	53,222

KONGSBERG (Group)

MNOK Note	2024	2023
Equity, liabilites and provisions
Equity
Issued capital	5,928	5,928
Retained earnings	11,377	8,855
Other reserves	1,372	1,185
Equity attributable to owners of the parent	18,677	15,968
Non-controlling interest	593	497
Total equity 22	19,269	16,465
Non-current liabilites and provision
Long-term interest-bearing loans 20D	2,500	2,500
Long-term leasing liabilities 12	1,762	1,457
Pension liabilites 10	637	578
Provisions 23	73	106
Deferred tax liabilites 16	1,425	1,377
Other non-current liabilities	52	51
Total non-current liabilites and provisions	6,449	6,068
Current liabilities and provisions
Customer contracts, liabilites 6	29,158	19,825
Financial derivatives 20A	4,100	1,929
Provisions 23	1,490	1,449
Short-term interest-bearing loans 20D	—	500
Short-term leasing liabilities 12	427	433
Other current liabilites 24	8,521	6,552
Total current liabilities and provisions	43,696	30,689
Total liabilites and provisions	50,145	36,757
Total equity, liabilites and provisions	69,414	53,222

Kongsberg, 19 March 2025

Eivind Reiten	Per A. Sørlie	Merete Hverven	Morten Henriksen	Kristin Færøvik	Rune Fanøy	Oda Ellingsen	Kjersti Rød	Geir Håøy
Chairman of the Board	Deputy of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	President and CEO

Consolidated Statement of Changes in Equity

KONGSBERG (Group)

		Equity related to shareholders of the parent						Non-controlling assets	Total equity
		Issued capital		Other reserves		Retained earnings	Total
MNOK	Note	Share capital	Other issued capital	Hedging reserve1)	Translation difference
Equity as of 1 January 2023		222	5,708	(215)	907	6,912	13,534	209	13,744
Earnings after tax		—	—	—	—	3,712	3,712	4	3,715
Other comprehensive income		—	—	73	419	(42)	449	8	457
Transactions with treasury shares related to employee share program		—	—	—	—	4	4	—	4
Dividend paid	22	—	—	—	—	(2,115)	(2,115)	—	(2,115)
Capital reduction	22	(2)		—	—	—	(2)	—	(2)
Share buy-back related to share buy-back programme		—	—	—	—	(265)	(265)	—	(265)
Purchase/sale, non-controlling interests		—	—	—	—	650	650	277	927
		—	—	—	—	—	—	—	—
Equity as of 31 December 2023		220	5,708	(143)	1,326	8,855	15,968	497	16,465
Equity as of 1 January 2024		220	5,708	(143)	1,326	8,855	15,968	497	16,465
Earnings after tax		—	—	—	—	5,126	5,126	18	5,144
Other comprehensive income		—	—	(186)	374	(37)	151	(1)	150
Transactions with treasury shares related to employee share programme		—	—	—	—	(3)	(3)	—	(3)
Dividend paid	22	—	—	—	—	(2,463)	(2,463)	—	(2,463)
Capital reduction	22	—	—	—	—	—	—	—	—
Share buy-back related to share buy-back programme		—	—	—	—	(102)	(102)	78	(23)
Equity as of 31 December 2024		220	5,708	(329)	1,700	11,377	18,677	593	19,269

1) For more details on hedge reserves see note 20C Cash flow hedges and hedging of net investment in foreign entity.

Consolidated Statement of Cash Flow

KONGSBERG (Group)

MNOK Note	2024	2023
Earnings after tax	5,144	3,715
Depreciation/impairment of property, plant and equipment 5, 11	577	483
Depreciation of leasing assets 5, 12	485	493
Amortisation/Impairment of intangible assets 5, 13	459	461
Shares of net income from joint ventures and associated companies 7	(441)	(358)
Net finance items 15	364	283
Income tax expenses 16	1,441	959
Gain on sale of business	—	(135)
Adjusted for
Change in customer contracts, assets	(5,319)	(2,955)
Change in customer contracts, liabilities	12,691	6,837
Change in other current liabilites	923	838
Change in inventories	(425)	(1,355)
Change in trade receivables	(1,817)	(1,781)
Change in other current receivables	(195)	6
Change in provisions and other accurals	723	(614)
Income taxes paid 16	(865)	(1,049)
Change in net current assets and other operations-related items	5,716	(74)
Net cash flows from operating activites	13,744	5,827

MNOK	Note	2024	2023
Dividends from joint ventures and associated companies	7	184	170
Proceeds from sale of property, plant and equipment	11	120	49
Purchase of property, plant and equipment	11	(1,787)	(1,980)
Capitalised internal development and other intangible assets	13	(459)	(403)
Interests received	15	322	120
Investments in subsidiaries and associated companies	7	(84)	(163)
Investments in financial assets		—	—
Proceeds from sale of business and capital increase in subsidiaries		53	1,115
Settlement of cross-currency swaps	20B	(109)	(59)
Net cash flow from investing activities		(1,762)	(1,153)
Proceeds from interest-bearing loans	20D	—	1,000
Repayment of interest-bearing loans	20D	(500)	(463)
Payment of principal portion of lease liabilites	12	(480)	(477)
Interest paid		(171)	(222)
Interest paid on leasing liabilites	12, 15	(148)	(136)
Transactions with treasury shares related to employee share programme		(100)	(80)
Share buy-back related to share buy-back programme		—	(267)
Dividends paid to equity holders of the parent	22	(2,463)	(2,128)
of which dividends from treasury shares		—	13
Net cash flow from financing activities		(3,862)	(2,759)
Total cash flow		8,120	1,915
Effect of changes in exchange rates on cash and cash equivalents		198	128
Net change in cash and cash equivalents		8,318	2,043
Cash and cash equivalents as of 1 January 2024		5,975	3,932
Cash and equivalents as of 31 December 2024	21	14,293	5,975

Notes

KONGSBERG (Group)

KONGSBERG is an international technology group. The parent company Kongsberg Gruppen ASA is a public limited company headquartered in Kirkegårdsveien 45, Kongsberg, Norway. The company's shares are traded on the Oslo Stock Exchange. The Board approved KONGSBERG's consolidated financial statements for the accounting year 2024 at its meeting on 19 March 2025. The consolidated financial statements for 2024 include the parent company and subsidiaries (collectively referred to as "KONGSBERG" or "the Group"), as well as the Group's investments in associated companies and joint arrangements.

2 Basis for the preparation of the consolidated financial statements

The consolidated financial statements are presented in Norwegian kroner (NOK), and all figures have been rounded to the nearest million, except when otherwise indicated. Due to rounding, the figures in one or more lines or columns in the consolidated financial statements may not be summed to the total in the line or column.

The consolidated financial statements have been prepared in accordance with IFRS (R) Accounting Standards (IFRS) as adopted by the European Union (EU) and related interpretations, as well as the Norwegian disclosure requirements according to the Accounting Act applicable. The consolidated financial statements have been prepared on a historical cost basis except for the following assets and liabilities:

• Financial derivatives (forward exchange contracts, currency options and interest swap agreements), measured at fair value
• Other financial assets measured at fair value

Consolidation

The consolidated financial statements present the parent company and all the subsidiaries as one entity. When new subsidiaries are acquired, the profit and loss, assets and liabilities are recognised in the consolidated accounts from the date of acquisition. The date of acquisition is the date when KONGSBERG obtains control of the acquired company. Control normally exists when KONGSBERG has more than 50 per cent of the voting rights through ownership or agreements. Subsidiaries disposed of during the year are included in the consolidated statement of income until the date on which the control ceases.

In some cases, KONGSBERG does not own all the shares in the subsidiaries. The share of profit and equity in the subsidiaries that do not accrue to KONGSBERG are included in the consolidated earnings for the year but are specified as non-controlling interests after earnings after tax in the income statement, after comprehensive income after

tax in the statement of comprehensive income and in the equity in the statement of financial position. In the case of acquisitions where there are non- controlling ownership interests, goodwill is in most cases limited to KONGSBERG's share.

Assets and liabilities in foreign subsidiaries applying functional currencies other than Norwegian kroner are translated into NOK at the exchange rates at the balance sheet date. Revenues and expenses are translated into NOK at the average exchange rates on a monthly basis.

Companies that constitute the Group are listed in note 27 List of Group companies.

Joint arrangements and associated companies are recognised in the income statement with KONGSBERG's share of the earnings after tax on the accounting line Share of net income from joint arrangements and associated companies.

Foreign currency

The Group's consolidated financial statements are presented in Norwegian kroner (NOK), which is also the parent company's functional currency. Customer contracts, above a certain threshold, in currencies different from the functional currency are hedged and recognised as income on the basis of the hedged exchange rate. Gains and losses related to foreign exchange items in the normal operating cycle are included in EBITDA. Other gains and losses related to items in non-functional currencies are classified as financial income or financial expenses.

Estimation uncertainty and assessment of accounting assumptions

During the preparation of the financial statements, the company's management has applied its best estimates and assumptions considered to be realistic based on

Changed standards in IFRS that have not yet been implemented

There are no standards or interpretations that are not yet effective that would be expected to have a material impact on KONGSBERG's consolidated financial statement, with the exception of the new IFRS(R) Accounting Standard IFRS 18 "Presentation and Disclosure in Financial Statements which enter into force on 1 January 2027. This introduces new requirements for income statements, information on managementdefined performance measures and new guidance on aggregation and disaggregation in financial statements and notes. For KONGSBERG, this change will primarily lead to some restructuring of the consolidated statement of income.

IFRS standards implemented with the effect from 1 January 2024

Amendments to the accounting standards IFRS 16 Leases, IAS 1 Presentation of Financial Statements, IFRS 7 Financial Instruments – disclosures and IAS 7 Statement of Cash Flows entered into force on 1 January 2024 and have been implemented in the preparation of the consolidated financial statments.

Implementation of these changes have not had any significant effect on KONGSBERG's financial statements.

3 Fair value

KONGSBERG's accounting principles and disclosures require a measurement of fair value on certain financial and non-financial assets and liabilities. For both measurement and disclosure purposes, fair value has been estimated as described in the disclosures below. Where relevant, further disclosures will be provided in the notes regarding the assumptions for calculating fair value on the individual assets and liabilities.

Intangible assets

The fair value of intangible assets, e.g., technology, software and customer relations acquired through acquisitions, is calculated at the net present value of the estimated future cash flow from the asset, discounted by a risk-adjusted discount rate.

Brand names are calculated at the net present value of the estimated savings of royalty costs by using the brand name.

The fair value of customer relations is based on the discounted net excess earnings on the related asset.

Leases

Leases are recognised at cost which corresponds to the fair value at the time the agreement is signed. When acquiring a business, lease contracts are measured at fair value on the date of acquisition. The market value is determined using the implicit interest rate in the lease contract or the incremental borrowing rate. For lease of property yield obtained from external parties is used.

experience and market conditions. Situations can arise which alter the estimates and assumptions, which will affect the company's assets, liabilities, revenues and expenses. The estimates are reviewed on an ongoing basis and are recognised in the period in which they occur. In the preparation of the consolidated financial statements, management has made some significant judgements relating to the application of accounting policies.

For more detailed information about estimation uncertainty and areas for application of judgement that could have a significant impact on the amounts recognised in the following financial period, please see the following notes:

• Note 6 Revenue recognition of customer contracts
• Note 13 Intangible assets
• Note 14 Impairment testing
• Note 16 Income tax
• Note 20 Financial instruments
• Note 23 Provisions

Going concern

The consolidated financial statement has been prepared on the assumption of a going concern. This is based on forecasts of future profits and the Group's long-term strategic forecasts. The Group is in a healthy economic and financial position.

4 Management of capital and financial risks

KONGSBERG has a centralised finance function responsible for the Group's capital structure and financing, currency risk, liquidity management, interest rate risk, credit risk, financial counterparty risk, trade finance, insurance schemes, management of the company's business portfolio and capital allocation principles.

The Group's subsidiaries have limited opportunities to establish independent funding or assume financial risk. The Board has adopted guidelines for financial risk management which have been included in the Group's financial policy.

Funding and capital management

KONGSBERG's policy is to allocate capital according to the following principles and sequence:

Maintain a solid statement of financial position

The working capital requirement in KONGSBERG can vary significantly in KONGSBERG, which requires good liquidity and predictable access to capital. The Group therefore aims to maintain a solid balance and to remain Investment Grade, which normally provides access to the debt capital markets. A solid balance sheet also helps secure the confidence of customers and suppliers in KONGSBERG. As of 31 December 2024 KONGSBERG had a long-term issuer rating of "A-" with a "stable outlook" from Nordic Credit Rating.

Invest for organic growth

KONGSBERG's technology platforms have been built up over years and are prerequisites for being competitive. In recent years, the Group has invested around five per cent of its revenue in development, and in order to maintain its competitiveness, the Group must continue to allocate capital to this and other essential investments.

Ensure competitive shareholder remuneration

KONGSBERG aims to generate a competitive remuneration to its shareholders. The target is to pay a stable or growing ordinary dividend on a per share basis year over year, supplemented by the possibility of paying special dividends in excess of the ordinary dividend policy and share buy-back of own shares. Together and over time these components shall be competitive for the shareholders. When determining the size of

remunerations to the shareholders, management and the board will take into account future capital requirements.

Active management of the company's business portfolio

KONGSBERG shall actively manage its business portfolio, which entails acquisition, disposals and restructurings. The Group's businesses are primarily assessed for their value creation ability, but also for the way in which they fit KONGSBERG's strategy, their ability to hold leading market positions, and the potential for synergies across the Group.

The capital structure of the Group consists of interest-bearing debt and equity which is primarily attributable to the shareholders of Kongsberg Gruppen ASA. The Group's equity as of 31 December 2024 was MNOK 19,269, which corresponds to 27.8 per cent of total assets. The Group's net interest-bearing debt, at year-end was MNOK -9,604.

KONGSBERG primarily uses debt instruments in the Norwegian capital market as a debt financing source. The Group considers that its access to capital is satisfactory. See also the reference to interest rate risk below.

Interest rate risk

KONGSBERG is primarily exposed to interest rate changes as a result of the financing of the business and the management of liquidity. All bonds and deposits of excess liquidity were at yearend in Norwegian kroner. The bonds have been issued with both fixed and floating interest rates, whereas the major deposits have floating interest rates. Deposits with banks are normally subject to floating interest rate.

KONGSBERG shall give priority to minimizing interest rate expenses on its outstanding debt and has a policy of keeping the interest rate duration below 2.5.

The need for interest rate swaps is assessed in light of the duration policy. As of yearend, the Group had two interest rate swaps from fixed to floating interest rate related to the bond KOG15. 20 per cent of the issued debt had floating interest rate (33 per cent in 2023), while the remaining 80 per cent had fixed interest rate (67 per cent in 2023), before the interest rate swaps are included. If the interest rate swaps are included, then 60 per cent of the issued debt had floating interest rate. The interest rate duration was 0.6 (0.7 in 2023).

External debt will normally be refinanced well before it matures. The Group also seeks to hold a spread maturity profile on its bonds to mitigate refinancing risk.

See note 20D Interest rate risk on loans for further information.

Liquidity risk

Liquidity risk is related to the Group's solvency as financial liabilities fall due for payment. For KONGSBERG, this means having a financial framework and liquidity that is adapted to the operating and investment plans at all times. The centralised treasury department is responsible for managing the Group's liquidity risk.

Short-term liquidity requirements are covered by bank deposits and other cash equivalents. Any additional liquidity requirements may be covered by the syndicated and committed loan facility of MNOK 2,500 and an overdraft facility of MNOK 1,500 per 31 December 2024. During 2024 the committed loan facility was extended by one year through the exercise of the last of the extension options in the agreement. KONGSBERG has a Group cash pool structure to which most subsidiaries are connected. This structure increases availability and flexibility of the liquidity management.

The Group's liquidity is routinely monitored through monthly rolling liquidity forecasts from the largest business units, as well as the annual budget process and reporting by segment for major investments. For further information see note 20E Liquidity risk.

Currrency risk

KONGSBERG has a global presence with subsidiaries in many countries. The Group has a high proportion of its revenues from contracts in currencies other than Norwegian kroner, with a relatively low proportion of procurement in the same currency. The individual business areas identify exposure for each contract, whilst the centralised treasury function offers instruments that reduce currency risk.

The Group's financial policy states that contracts above a certain threshold shall be subject to currency hedging upon award, and these are primarily hedged using forward exchange contracts (fair value hedges) towards the entity's functional currency. In special cases, the Group uses forward exchange contracts or currency options as cash flow hedges, e.g. in large tenders where contract award is highly probable. The

Group will normally have some open currency exposure related to minor contracts, as well as other revenues and expenses in foreign currency. This exposure is reduced through frequent spot transactions and/or forward exchange contracts. Cash holdings in currency considered to be part of the businesses' working capital are normally not hedged. KONGSBERG has the highest exposure towards US dollar and euro, but also has minor exposure towards other currencies. Future cash flows from entities outside of Norway with functional currency other than Norwegian kroner (net investment hedging) are normally not hedged. The Group assesses ongoing the need for hedging this currency exposure, based on risk and materiality.

Currency options are used to some extent, mainly in tenders, after an assessment of probability for contract award. Currency accounts in the cash pool structure are used for the natural hedging of smaller amounts with short tenors.

KONGSBERG's partly owned subsidiaries and joint arrangements may enter into service agreements to use the group's central finance function to carry out foreign exchange transactions on their behalf based on a standard pricing model. Foreign exchange contracts and associated risk under the service agreement will be borne by KONGSBERG's balance sheet.

In addition to the use of financial instruments the entities and the centralised treasury function implement operational measures to reduce the foreign exchange risk. One measure could be to ensure that expenses incurred are in the same currency as the sales contract.

KONGSBERG uses a reputable Treasury Management System and a separate platform for trading foreign exchange and recording of financial instruments. See note 20B Currency risk and currency hedging for more information.

Credit/Counterparty risk

Counterparty risk is the risk that the Group's contractual counterparty will be unable to meet its obligations to KONGSBERG, or the settlement of financial instruments such as foreign exchange contracts and deposits. The Group's financial policy requires financial institutions to hold a certain credit rating as prerequisite to being counterpart in financial contracts. The company's core relationship banks, which are counterparties in most derivative transactions and in which most of KONGSBERG's liquidity is placed, have credit ratings from A- to AA- (Standard & Poor's).

Credit risk relates to trade receivables, and the business areas are responsible for managing this risk. The receivables carry varying degrees of risk depending on the customer, term to maturity and whether any payment guarantees have been provided. For major, long-term projects, credit risk related to customers and subcontractors is assessed throughout the contract period. These projects are monitored in accordance with agreed milestones. Historically, KONGSBERG has had a low percentage of bad debts.

The business in KONGSBERG which has the greatest exposure to credit risk is Kongsberg Maritime. The business area has customers primarily from the private sector and the market in which it operates is cyclical. Credit insurance is used only to a limited extent but is considered in certain cases. Kongsberg Defence & Aerospace has mostly government customers and therefore has limited credit risk exposure.

The Group strives to maintain a fair balance between increasing sales with acceptable margins and the risk of losses. In addition, large parts of the Group operate on the basis of credit manuals including routines for debt collection. See note 19 Receivables and credit risk for more information.

Climate risk

KONGSBERG is committed to and recognises the need to take an active role in the transition to a net-zero emissions society. Our ambitions is to achieve net-zero emissions across our value chain by 2050, aligning with international standards including the GHG Protocol and Science Based Target Initiative (SBTi).

KONGSBERG has taken significant steps towards completing a comprehensive resilience analysis, starting with our climate risk assessments. We applied two scenarios for our analysis: low emissions and high emissions. Our scenario analysis assesses risks over short, medium, and long-term horizons, focusing on high-impact vulnerabilities and opportunities. 20 climate risks and opportunities were identified, reviewed and prioritised, resulting in a semi-quantitative analysis with some financial estimation. Three of the 20 were physical risks from acute and chronic events like hurricanes and extreme weather, impacting personnel, operations, and supply chains. Transition risks involve regulatory changes and increased production costs, while opportunities include developing low-emission solutions such as green shipping and sustainable ocean management. The net financial effects are expected to be negative, however they are not anticipated to significantly impact our overall business model.

See note 14 Impairment testing to the consolidated statements for further description of KONGSBERG's opportunities related to the climate change.

As a group, KONGSBERG is exposed to physical climate risks in all future scenarios, while the business areas face varying degrees of exposure.

The following risks are identified for the Group:

• Physical risk related to extreme weather events. Extreme weather events can lead to downtime or reduction in production as a result of production facilities being damaged or working conditions not being safe. The same applies to the Group's suppliers, which may lead to reduced access to raw materials or supplies that KONGSBERG needs in the deliveries. This may result in lost revenues due to production downtime, increased expenses due to ensuring safe working conditions or due to higher cost of raw materials or due to sourcing alternative raw materials at higher cost. This may also lead to claims from customers due to inability of KONGSBERG to deliver according to contractual obligations.
• Transition risk related to market. KONGSBERG must be capable to replace the revenues from the Oil & Gas business with new revenue streams from the renewables segment which may have lower margins. The Group can also experience lost competitiveness in markets that have less stringent sustainability-related requirements due to higher production expenses. Challenges related to reduced supply of components and materials due to change in global value chains may also affect us. In addition, reduced access to capital as a consequence of KONGSBERG's, or our subcontractor's, inability to sufficiently meet sustainability requirements represents a risk. The first two risks may result in reduced revenues, in addition to reduced margins due to possibly lower margins for renewable technology solutions. The risk of reduced access to raw materials may lead to higher cost of raw materials while the risk of reduced access to capital may lead to higher cost of capital. The latter may also indirectly lead to higher cost of raw materials if the suppliers experience higher cost of capital.
• Transition risk related to technology. Risk has been identified related to the Group's ability to adapt the technology development to the market demand and ensure that the Group is not too early or too late. The green technology development must be balanced against market demand. Both, too early and too late entry may lead to reduced revenues. It may also lead to increased expenses due to expenses spent on developing solutions that will not be the future winners.
• Transition risk related to policy & legal. This could materialise in the form of legislative changes that will change carbon cost and taxes, more stringent criteria related to energy efficiency and emissions from real estate, stricter requirements to get access to public funding for innovation and development, and increased reporting requirements related to climate and sustainability topics. These risks may result in increased cost of raw materials, real estate facilities, product development, and administration expenses.
• Transition risk related to reputation. If KONGSBERG's contribution to the green transition is insufficient, or is perceived to be so, this can make the Group a less attractive employer and result in lack of critical expertise. This may result in increased recruitment expenses and lost revenues due to lack of skilled labour to meet growth expectations.

For further descriptions of opportunities, risks and scenario analysis see chapter 3 Sustainability at KONGSBERG in the Annual Report.

Other risks

Geopolitical Uncertainty

KONGSBERG has a significant international presence and is affected by global changes. 2024 has been affected of geopolitical uncertainties and war in large parts of the world, combined with threats of trade wars and tariff barriers. We see a risk of Norway being outside EU and are actively working to mitigate the effects of this risk on our operations. The inflation growth of recent years has stabilized at a somewhat lower level, while uncertainty about possible tariffs could lead to increased raw material prices. KONGSBERG is exposed to price changes in energy, wages, and material costs, and we continue to implement measures already initiated to ensure profitability in delivery contracts.

5 Operating segments

KONGSBERG has four operating segments; Kongsberg Maritime, Kongsberg Defence & Aerospace, Kongsberg Discovery and Kongsberg Digital, of which the reporting requirements as an operating segment do not apply to Kongsberg Digital according to size and is therefore reported in "Other". Reporting of operating segments are based on the reporting to the Corporate Executive Management.

Kongsberg Maritime shapes the maritime future and provides the technology, equipment and services required for sustainable maritime operations. The business area enables operations across the world's oceans, in Artic waters, in the busiest ports and under the harshest weather conditions. Kongsberg Maritime consists of four divisions that supply solutions, systems, products and services. The division Integration & Energy provides integrated solutions based on products and systems from all divisions within Kongsberg Maritime including responsibility for ship design, development of systems for autonomous/remotely controlled vessels, and for our electro product portfolio. The division Automation & Control is responsible for product and technology development, supply chain operations and project delivery of Bridge Systems, Automation & Safety and Sensing Solutions. The division Propulsion & Handling supplies propulsion systems, manoeuvring and handling systems. The division Global Customer Support delivers support services and spare parts to ships and has a global network of service centres. In addition, the division supplies upgrades to more environmentally friendly solutions and more efficient operation.

In Q2 2024, changes were made to the divisional structure of Kongsberg Defence & Aerospace. The business area now consists of three divisions, which primarily supply various systems and services to the defence industry. The three divisions are Defence Systems, Missile & Space and Aerostructures & MRO (Maintenance, Repair & Overhaul). Defence Systems is a merger of the two former divisions Integrated Defence Systems and Land Systems. Missile & Space is a merger of the two former divisions Missile Systems and Space & Surveillance. The Defence Systems division develops and supplies air defence systems, combat systems, sonars and navigation for marine vessels and submarines, integrated command and control systems and remote control weapon stations for land-based vehicles and marine vessels. The division also develop remote tower solutions for airports, in addition to supply products for military tactical communication. The division Missile & Space develops and supplies naval strike missiles and air-to- surface missiles, components and services to the space industry, as well as port monitoring systems. The Aerostructures & MRO division produces and supplies advanced lightweight composite and titanium components for F-35 combat aircraft, as well as maintenance and lifecycle services for military and civil capabilities.

Kongsberg Discovery develops technology to ensure sustainable management of marine resources, monitor climate change and critical infrastructure and safeguard national security. The technology and solutions are aimed at areas such as offshore operations, fisheries, marine research, maritime operations, ocean-based energy production, and monitor critical infrastructure as well as for naval defence and navy. The business area consist of four divisions. The division Ocean Technologies is a developer of subsea positioning and communication technology. Using hydroacoustic an exact position is given and data are sent to and from underwater infrastructure, such as selfpropelled underwater vehicles, or remotely operated underwater robots. The division Seatex delivers products that combine deep technology expertise and application understanding. Technology related to inertial navigation, navigation satellite systems, microwaves and radio technology, provides valuable information about position, speed, acceleration and heading. In addition, the solutions contribute to increased situational awareness at sea, in the air, from space and from land. The division Marine Life Technologies is a supplier of technology that ensures sustainable management of the world's most important resource. This includes products that locate fish, of the right species and size, in the most suitable sea areas. The division Uncrewed Platforms deliver autonomous underwater and surface vessels for research, defense and commercial use. The vessels are equipped with advanced technology that facilitates efficient and environmentally friendly data collection. Additionally, this technology ensures access to data from previously inaccessible locations.

Other

Other activities consist of Kongsberg Digital, real property, Kongsberg IT, group functions and eliminations between the business areas.

Kongsberg Digital is an industrial software company that optimises the way companies develop, operate and maintain their installations and assets. The technology contributes to safer, smarter and more sustainable industries by making industrial data accessible and contextualized, primarily within the energy, maritime and renewable industries. Customers include companies operating in process industries, such as oil and gas and renewable energy.

The funding of the Group is based on evaluations for the Group as a whole. Consequently, financial items, net interest-bearing debt and cash are not assigned to segments. The same applies to tax expenses and balance sheet items associated with tax, as these items are influenced by tax-related transfers between the business areas.

The management monitors the operating segments' EBIT on a regular basis and uses this information to analyse the various operating segments' performance and to make decisions regarding allocation of resources. The operating segments' performance is assessed based on EBIT and return on capital employed.

Information on the Group's operating segments that are required to report is presented on the following page.

Operating segment data

			2024						2023
MNOK	Kongsberg Maritime	Kongsberg Defence & Aerospace	Kongsberg Discovery	Other	Eliminations		Consolidated Kongsberg Maritime	Kongsberg Defence & Aerospace4)	Kongsberg Discovery	Other4)	Eliminations	Consolidated
Operating revenues from external customers	24,596	19,042	3,599	1,635	—	48,872	19,995	15,858	3,228	1,536	—	40,617
Operating revenues from Group companies	170	81	828	757	(1,836)	—	185	90	686	567	(1,528)	—
Total revenues	24,766	19,123	4,427	2,392	(1,836)	48,872	20,180	15,949	3,913	2,103	(1,528)	40,617
Material cost	(9,557)	(7,387)	(1,731)	(141)	1,127	(17,689)	(7,994)	(6,565)	(1,669)	(8)	901	(15,334)
Personnel expenses	(7,570)	(5,338)	(1,352)	(1,503)	—	(15,764)	(6,620)	(4,409)	(1,117)	(1,545)	—	(13,691)
Other operating expenses	(3,752)	(2,852)	(585)	(911)	709	(7,392)	(2,965)	(1,970)	(482)	(766)	627	(5,556)
EBITDA	3,886	3,545	759	(162)	—	8,028	2,601	3,005	646	(215)	—	6,037
Depreciation property, plant and equipment	(146)	(215)	(55)	(160)	—	(577)	(132)	(187)	(45)	(115)	—	(479)
Depreciation leasing assets	(266)	(302)	(51)	135	—	(485)	(269)	(292)	(44)	112	—	(493)
Impairment of property, plant and equipment	—	—	—	—	—	—	(3)	—	—	(1)	—	(4)
Amortisation and impairment intangible assets	(120)	(124)	—	(215)	—	(459)	(145)	(129)	—	(187)	—	(461)
EBIT	3,354	2,903	653	(402)	—	6,507	2,053	2,397	556	(407)	—	4,600
Segment assets1)	18,348	25,220	5,074	5,462	(2,847)	51,258	17,405	19,293	4,642	6,044	(2,903)	44,480
Segment investment2)	195	1,047	133	872	—	2,246	133	594	82	1,799	—	2,607
Current segment liabilities and provisions3)	10,821	26,147	1,742	998	(570)	39,139	10,034	15,530	1,450	973	(684)	27,304

1) Segment assets do not include derivatives and cash and cash equivalents, as these assets are assessed for the Group as a whole.

2) Investments comprise acquired property, plant and equipment, intangible assets and goodwill, excluding leasing. Including investments related to acquisition of business.

3) Segment liabilities do not include deferred tax liabilities, tax payables, interest-bearing liabilities (exclusive short-term leasing liabilities), other non-current liabilities or provisions and derivatives, as these liabilities are assessed for the Group as a whole.

4) The comparable figures are restated due to Kongsberg IT being reported as a part of other from 2024, instead of Kongsberg Defence & Aerospace.

None of KONGSBERGs customers account for more than 10 per cent of the Group's total revenues either in 2024 or 2023.

There are no differences between the principles or the measurement methods used at the segment level and those applied to the consolidated financial statements. The different operating segments' EBITs include income and expenses from transactions with other operating segments within the Group.

Transactions between the segments are based on market prices. Intercompany transactions between the different segments are eliminated upon consolidation.

Reconciliation of assets

MNOK Note	31 Dec 24	31 Dec 23
Segment assets	51,258	44,480
Deferred tax asset 16	509	331
Financial derivatives 20A	2,356	1,887
Fair value financial instruments	999	549
Cash and cash equivalents 21	14,293	5,975
Total assets	69,414	53,222

Reconciliation of liabilities and provisions

MNOK Note		31 Dec 24	31 Dec 23
Current segment liabilities and provisions		39,139	27,304
Short-term interest-bearing loans 20D		—	500
Financial derivatives 20A		4,100	1,929
Fair value financial instruments		(607)	516
Calculated income tax payable	24	1,064	440
Total current liabilities and provisions		43,696	30,689

Geographical information

In presenting information by geographical segments, revenues are distributed based on the customers' geographical location, while the fixed assets are based on the location of the physical investment or relationship to the relevant acquisition. The Group's activities are generally divided into Norway, the rest of Europe, America and Asia. Fixed assets include property, plant and equipment, intangible assets and goodwill. Financial instruments, deferred tax assets, pension funds and rights following from insurance agreements are not included.

Total
40,617
13,208
Africa 383 1% 4

1) Middle-East is included in Asia

6 Revenue recognition of customer contracts

Revenue recognition of customer contracts consists of five steps that must be assessed to determine the correct revenue recognition of customer contracts according to IFRS 15:

Step 1: Identifying customer contracts

Identified customer contracts in KONGSBERG must have commercial substance, and key terms of delivery must be agreed between the parties (the parties' rights and obligations, terms of payment etc.). It must also be probable that KONGSBERG will receive settlement for the delivery. In principle, a customer contract does not have to be in writing, but KONGSBERG has established this as a requirement.

Step 2: Identifying separate performance obligations

Kongsberg Maritime supplies integrated solutions within a single contract where the deliverable consists of a number of Kongsberg Maritime's products that must function together and be approved collectively upon handover to the customer. In addition, Kongsberg Maritime also has a significant proportion of equipment deliveries. The equipment deliveries are independent and are treated as separate performance obligations.

Kongsberg Defence & Aerospace's deliveries are often development projects, where the end project consists of many components and sub-systems integrated into a single system. The contracts therefore typically consist of a single performance obligation, which is the integrated system approved by the customer through final testing.

Kongsberg Defence & Aerospace also has series of identical deliveries that are covered by a single contract. These are treated as a single performance obligation.

Kongsberg Discovery delivers some major integrated solutions that are treated as one performance obligation. The business area also has stand-alone equipment deliveries. These deliveries are treated as separate performance obligations.

Kongsberg Maritime, Kongsberg Defence & Aerospace and Kongsberg Discovery supply equipment and services to the aftermarket. These deliveries are treated as separate performance obligations.

Certain areas in KONGSBERG use contracts that are normally divided into parts which are various products in a single contract that are used by the customer independently of one another, goods with service agreements, licences and services. This does not represent a significant proportion of KONGSBERG's turnover.

Step 3: Determining the transaction price

KONGSBERG's customer contracts often apply fixed prices. The transaction price will thus in most cases be easy to determine. However, there are certain cases which need to be assessed. This largely applies to different forms of discounts and incentive schemes, financing items in the contracts and options. Best estimate is used as basis for discounts and incentives schemes when determining the transaction price. For contracts where the financing element is more than one year and at the same time is material, the financing element is separated from the contract income. In some customer contracts, KONGSBERG has customer advances with a significant financing element in excess of one year as of 31 December 2024. The effect of the financing element has little impact on operating revenues in 2024, while other interest expenses are affected to a greater extent. These effects will be offset over the duration of the contracts. There may also be cases involving income reduction as a result of financial penalties for delays or other variable components. Penalties for delays are recognised when calculating the transaction price unless it is highly probable that they will not occur.

Step 4: Allocating the transaction price

When the transaction price has been determined, it will be allocated to each individual performance obligation as identified under step 2, based on the stand-alone selling price. The stand- alone selling price is normally the price of the product when it is sold separately, less any discounts that are to be distributed. If this price cannot be observed directly, it must be estimated. This will often apply to the allocation of revenues between licences and services, but also to the distribution of revenues between different products that are supplied as an integrated solution. Integrated solutions are mainly considered as a single performance obligation under step 2. This is because the systems operate together and because the delivery is usually approved as a whole.

Step 5: Recognition when the performance obligation is fulfilled

The principle stated in IFRS 15 is that control over the asset will then be transferred to the customer before KONGSBERG can recognise revenue. Control normally means that the customer can use an asset directly, is able to achieve most of the remaining benefits of an asset and is able to prevent other parties from using or achieving benefits of an asset. This is considered for each individual performance obligation. Most of KONGSBERG's contracts are recognised according to level of progress (over time), where the physical handover of the products is not done on an ongoing basis, but when the products are completed and often towards the end of the contract period. Assessments are based on different criteria were the most important ones are:

• various degrees of customer-specific adaptations,
• there is a limited market for similar products,
• the systems are installed/integrated on the customer's property on an ongoing basis or at the end of the project, and,
• remanufacturing the products for another customer requires considerable work.

In Kongsberg Maritime, deliveries by the Integration & Energy and Automation & Control divisions, primarily are recognised as revenue according to level of progress made over time. This is because the deliveries are extensively customised and have no alternative area of use for Kongsberg Maritime. In most cases, the measures of progress used in connection with revenue recognition over time is "cost to cost", but hours can also be used. There are also some deliveries that are recognised over time in the Propulsion & Handling division.

Kongsberg Maritime also has a significant proportion of deliveries where the revenues are recognised upon delivery. This particularly applies such as the Propulsion & Handling division , but it also applies to certain areas of the divisions Integration & Energy and Automation & Control. Equipment deliveries are largely assessed as being independent and have a short time horizon; and the revenue is therefore recognised as income upon delivery. For a more detailed description of what the various divisions supply, see note 5 Operating segments.

Almost 60 per cent of Kongsberg Maritime's revenues in 2024 are within the aftermarket. Most of these contracts are recognised upon the delivery of hours/ equipment and are often of short duration. There are also cases where this type of contract is recognised over time, but it is then assumed that the contract is large and will extend over a number of accounting periods.

Kongsberg Defence & Aerospace's customer contracts primarily concern deliveries that are combined in a system and must operate together. Most customer contracts in the business area are recognised as revenue according to progress over time. This is because the deliveries are extensively customised and it will demand considerable rework to meet an alternative area of use for Kongsberg Defence & Aerospace. The customer contracts are normally long-term and large. Kongsberg Defence & Aerospace is entitled to payment for work performed to date. "Cost to cost" is primarily used as a measure of progress, but accrued hours, progress made by subcontractors and, in some cases, milestones are also used. Deliveries of this type are air defence systems, missile systems, command and control systems and monitoring systems.

Series of identical units within the same contract are recognised as revenue over time. These are then treated as a single delivery obligation. The condition is that they would have individually qualified for revenue recognition over time. Revenue measures for such contracts could be delivery/withdrawals from inventories to customers, as this represents the progress that has been made, because the manufacturing period is relatively short. Many of the contracts concerning weapons stations are recognised as revenue according to these principles. The same applies to contracts related to the F-35 programme.

Kongsberg Defence & Aerospace makes little use of revenue recognition upon delivery, but this method may be used for example in connection with the delivery of communication equipment and equipment for the space industry.

Kongsberg Defence & Aerospace also has deliveries of service and maintenance. These services are primarily recognised as revenue as the hours/goods are delivered.

For a more detailed description of the divisions and deliveries in Kongsberg Defence & Aerospace see note 5 Operating segments.

Just over 45 per cent of Kongsberg Discovery's contract revenues in 2024 are recognised according to level of progress over time. This is due to the deliveries being extensively customised and have no alternative use for Kongsberg Discovery. In most cases, the level of progress used in revenue recognition over time is "cost to cost", but hours can also be used. Kongsberg Discovery also has stand- alone equipment deliveries with a short time horizon. These are recognised as revenue upon delivery.

KONGSBERG has contracts that give KONGSBERG a legal right to coverage of costs incurred plus a margin in the event that the customer terminates the contract without sufficient reasons.

KONGSBERG • Annual Report 2024 124

Financial Statements / Financial Statements and Notes 2024

			2024			2023
MNOK	Kongsberg Martime	Kongsberg Defence & Aerospace	Kongsberg Discovery	Other	Total	Kongsberg Martime	Kongsberg Defence & Aerospace	Kongsberg Discovery	Other	Total
Revenues
Revenue recognition based on progress in the projects (over time)	4,838	14,563	1,638	610	21,003	3,012	12,217	1,575	699	17,502
Revenue recognition upon delivery of goods and services	5,415	1,328	1,074	87	8,551	5,455	1,030	925	57	7,468
Aftermarket activities1)	14,326	3,147	876	868	19,216	11,502	2,611	547	714	15,373
Revenue from rental of property, plant and equipment	7	—	—	66	74	17	—	177	67	261
Total external revenues from customer contracts	24,586	19,038	3,589	1,631	48,843	19,986	15,858	3,225	1,536	40,604
Gains from sale of property, plant and equipment	10	5	10	3	28	9	—	3	—	13
Total external revenues	24,596	19,042	3,599	1,635	48,872	19,995	15,858	3,228	1,536	40,617

1) Revenues from aftermarket activities includes revenues from service, maintenance, upgrades, spare parts, accessories and training related to previously delivered system and are recognised upon delivery or over time based on the terms in the customer contracts. The share of revenue recognition over time is MNOK 2 100 for Kongsberg Maritime, MNOK 1 563 for Kongsberg Defence & Aerospace, MNOK 81 for Kongsberg Discovery and 100 per cent for other. Spare parts and upgrades are reflected in the order backlog while the remaining are not included in the summary of revenues for future periods; see the table below.

The table shows the anticipated data on which remaining performance obligations as of 31.12.24 are recognised as income:

		2024				2023
		Date of revenue recognition		Date of revenue recognition
MNOK	Order backlog 31 Dec 24	2025	2026	2027 and later	Order backlog 31 Dec 23	2024	2025	2026 and later
Kongsberg Maritime	22,800	13,592	5,828	3,380	19,097	12,373	4,008	2,716
Kongsberg Defence & Aerospace	100,626	18,581	19,047	62,999	65,377	15,774	11,609	37,994
Kongsberg Discovery	3,069	2,512	377	179	2,948	2,116	610	222
Other/elimination	1,397	717	448	232	1,127	556	228	344
Total order backlog	127,893	35,402	25,700	66,790	88,550	30,818	16,456	41,276

Operating revenues by division

MNOK	2024	2023
Divisions
Global Customer Support	13,922	11,664
Integration & Energy	2,328	1,672
Propulsion & Handling	5,135	4,188
Automation & Control	4,766	3,878
Other/elimination	(1,385)	(1,222)
Kongsberg Maritime	24,766	20,180

MNOK	2024	2023¹
Divisions
Defence systems	10,592	9,106
Missile & Space	6,496	5,002
Aerostructures & MRO	3,381	2,709
Missile & Space	6,496	5,002
Aerostructures & MRO	3,381	2,709
Other/elimination	(1,345)	(869)
Kongsberg Defence & Aerospace	19,123	15,949

MNOK	2024	2023
Divisions
Ocean Technologies	2,217	1,703
Marine Life Technologies	657	683
Uncrewed Platforms	920	859
Seatex	766	682
Other/elimination	(133)	(13)
Kongsberg Discovery	4,427	3,913
Other/elimination	556	575
Total revenues	48,872	40,617

1) The comparable figures for 2023 are adjusted due due new divisional structure in 2024.

For a more detailed description of the various divisions and their deliveries, see note 5 Operating Segments.

Geographic distribution of external revenues from customer contracts

MNOK	Kongsberg Maritime	Kongsberg Defence & Aerospace	Kongsberg Discovery	Other	Total
2024
Norway	3,737	4,046	701	405	8,889
Europe	8,130	5,479	1,077	476	15,162
North America	2,591	7,407	1,080	406	11,484
South America	525	19	144	44	732
Asia1)	8,427	863	491	254	10,035
Africa	543	(49)	43	18	555
Australia	643	1,276	63	31	2,013
Total external revenues from customer contracts	24,596	19,042	3,599	1,635	48,872

MNOK	Kongsberg Maritime	Kongsberg Defence & Aerospace	Kongsberg Discovery2)	Other	Total
2023
Norway	2,930	3,753	873	491	8,047
Europe	6,768	4,294	1,012	512	12,586
North America	2,459	6,150	764	325	9,698
South America	586	33	90	39	747
Asia1)	6,513	566	418	150	7,647
Africa	320	20	41	1	383
Australia	419	1,042	31	18	1,509
Total external revenues from customer contracts	19,995	15,858	3,228	1,536	40,617

1) Middle -East is included in Asia.

Contract balances

Specification of contract balances1)

MNOK	31 Dec 24	31 Dec 23
Customer contracts in progress	6,555	2,286
Prepayments received from customers	(30,588)	(16,157)
Accrued assets, customer contracts	10,188	8,043
Accrued liabilities, customer contracts	(1,878)	(3,496)
Net contract balances	(15,722)	(9,325)

MNOK	31 Dec 24	31 Dec 23
Customer contracts, assets	13,435	10,500
Customer contracts, liabilities	(29,158)	(19,825)
Net contract balances	(15,722)	(9,325)

1) The table above on the left shows the gross amounts before netting between the income- and the expense side of the customer contracts. The table above to the right shows balance sheet items for each customer contract, with the exception of trade receivables netted and presented on the corresponding balance sheet line. Each contract is represented by one debit or one credit amount.

The carrying value of customer contracts in the statement of financial position is based on an assessment of the financial status of each individual customer contract. The classification is determined on a contract-to-contract basis unless netting has been agreed. If this is the case, the contracts can be considered together. In the consolidated financial statement, all balances are netted for each customer contract in the Group accounts and presented on one line in the statement of financial position, with the exception of trade receivables (presented on the line "Receivables"). Individual customer contracts are then presented as either "Customer contracts, assets" or "Customer contracts, liabilities".

"Customer contracts, assets"

On the line "Customer contracts, assets", KONGSBERG has collected all asset items associated with customer contracts, except trade receivables. This includes accrued, non-invoiced revenue, prepayments to subcontractors, goods which have been purchased or allocated to customer contracts, but which have not been processed or led to progress being made on the project, and work in progress for projects that are recognised upon delivery.

Most of KONGSBERG's customer projects that are recognised over time apply costto-cost as a measure of progress. Cost-to- cost is calculated comparing the actual

costs with the estimated total costs of the projects. Some areas use cost-to-costlike approaches and this may give positive inventories in the projects. This normally happens when production has commenced without revenue being recognised because production has not been allocated to a concrete order, or when revenue, due to significance, is only recognised when each component is completed. The reason for this is that goods are often moved from inventories to projects without any transfer of control to the customer taking place. Alternative measures of progress might then be necessary, such as hours incurred, as a cost-to-cost approach. If the profit on a contract cannot be estimated reliably, the project will be recognised without a profit until reliable estimates are available. Recognised accrued contract profit is classified as "Customer contracts, assets" in the balance sheet. When the customer is invoiced the "Customer contracts, assets" are reclassified to trade receivables.

In special cases, work on projects will be started and expenses incurred before a contract has been signed with the customer. This requires a high probability that the contract will be signed. Capitalised costs of this kind are classified as inventories until a contract has been signed.

"Customer contracts, liabilities"

In some cases, advances are received from customers or customers are invoiced before control is transferred. This is presented as a "Customer contracts, liabilities". "Customer contracts, liabilities" will also arise as a result of cost accruals performed during the fulfilment of the customer contracts. With the exception of trade payables, all liabilities relating to customer contracts are collected together on this line. In the same way as with assets, balance sheet items for customer contracts that are recognised according to progress are presented together with assets that are recognised upon delivery.

In the business areas customer contracts have different payment terms, depending on the product, market and negotiations with the customer. Many customer contracts that are recognised over time include an advance paid by the customer upon contract signing, followed by payments as milestones are achieved. There are considerable differences between the contracts. For goods and service deliveries, including aftermarket deliveries, customers are primarily invoiced upon delivery and payment takes place after an agreed credit period, which depends on the individual agreement.

Just under NOK 9 billion of advances registered in the opening balance sheet have been recognised as income in the 2024 financial year.

Revenue recognition from customer contracts includes:
MNOK	2024	2023
Prepayments from customers included in "Customer contracts, liabilities" at the beginning of the year and which are recognised as revenue in the fiscal year	8,964	8,827
Revenue from performance obligations completed before the financial year	2	20

Estimation uncertainty related to customer contracts

The recognition of customer contracts is associated with uncertainty related to the determination of the type of performance obligation and the transaction price. The type of performance obligation will impact on the timing of revenue recognition, while in cases where the transaction price must be estimated, estimates will impact on the size of the consideration that is to be recognised as revenue. Contract revenue is normally in accordance with the agreement. Variable considerations and financial penalties for delays can impact on the transaction price. Uncertainty related to the probability that variable considerations or financial penalties for delays will occur and also regards the estimation of the magnitude of these.

Progress of completion is normally calculated on the basis of costs incurred compared to total expected costs or incurred hours measured against the expected time consumption.

Expected total costs are estimated, based on a combination of experience- based estimates, systematic estimation procedures and follow-up of efficiency metrics and good judgement. Normally, a high proportion of the total costs will relate to the number of hours remaining that employees must spend developing or completing the project. Uncertainty in the estimates is affected by the project's duration and technical complexity. Principles have been established for categorising projects in terms of technological complexity and degree of development. This forms the basis for an assessment of risk and recognition of revenue in the projects.

7 Shares in joint arrangements and associated companies

KONGSBERG has a few investments in joint ventures and associated companies. Based on the business size and strategic importance to KONGSBERG, Patria Oyj and Kongsberg Satellite Services AS are specified in more details below.

	2024		2023
MNOK	Patria Oyj	Kongsberg Satellite Services	Andre	Sum	Patria Oyj	Kongsberg Satellite Services	Andre	Sum
Net holding 1 January	3,331	855	72	4,259	3,037	719	113	3,868
Acquisitions/disposals	—	—	17	17	—	—	(9)	(9)
Share of net income1)	274	151	16	441	233	156	(32)	358
Dividends received	(159)	(25)	—	(184)	(150)	(20)	—	(170)
Other items and comprehensive income2)	100	—	—	100	211	—	—	211
Net holding 31. December	3,546	981	106	4,634	3,331	855	72	4,259

1) The share of net income is recognised after tax and amortisation of excess value. The share of net income from Patria includes amortisation of MNOK 4 (MNOK 10 in 2023). In addition, the share of net income from Patria is adjusted for non-controlling interest and net income from Kongsberg Aviation Maintenance Service AS. 2) Other items and comprehensive income comprise translation differences mainly related to translation differences of excess values. See note 20B "Currency risk and currency hedging".

Investments in joint ventures and associated companies as of 31 December 2024 includes goodwill and other excess value of MNOK 1,835 and MNOK 7 (MNOK 1,744 and MNOK 21 as of 31 December 2023).

The table below shows assets, liabilities and profit and loss for Patria Oyj and Kongsberg Satellite Services AS per 100 per cent basis.

	Patria Oyj Helsinki, Finland		Kongsberg Satellite Services AS
Location				Tromsø, Norge
	Associated company		Joint arrangement
Ownership per cent	49.9%		50.0%
	MEUR			MNOK
	2024	2023	2024	2023
Operating revenues	826	733	2,237	1,900
Earnings after tax	64	57	310	325
The majority's share of the earnings after tax	55	50	310	325
Non-current assets	525	458	2,160	1,869
Current assets	542	460	791	1,006
Long-term liabilities	183	134	172	173
Short-term liabilities	553	464	709	929

Patria is Finland's leading supplier of defence maintenance services and covers all defence aspects within MRO (Maintenance, Repair and Overhaul). Patria is an international organisation approximately 3,400 employees and owns 50 per cent of the shares in Nammo. The headquarter is located in Helsinki and Patria is owned by the Finish State (50.1 per cent) and KONGSBERG (49.9 per cent).

Kongsberg Satellite Services (KSAT) is a world-leading supplier of communication services for spacecraft and launch platforms and advanced monitoring services via satellites. In addition, KSAT delivers services within environment, safety and climate monitoring among others based on satellite data from the traditional space programmes and also satellite constellations within New Space segments. KSAT has over 400 employees and is headquartered in Tromsø. The company is owned by KONGSBERG (50 per cent) and Space Norway (50 per cent) which is owned by the Norwegian State.

Share of net income and dividend from associated companies per business area:

	Share of net income		Dividend
MNOK	2024	2023	2024	2023
Kongsberg Maritime	(5)	(14)	—	—
Kongsberg Defence & Aerospace	445	406	(184)	(170)
Kongsberg Discovery	—	(35)	—	—
Others	1	1	—	—
Total	441	358	(184)	(170)

8 Inventories

KONGSBERG defines goods as inventories of raw materials, work in progress and finished products that are not related to specific customer contracts. Inventories are measured at the lower of acquisition cost and net realisable value. For raw materials and work in progress, net realisable value is calculated as the estimated selling price in ordinary operations of finished products less remaining production costs and the costs of the sale. For finished goods, net realisable value is the estimated selling price in ordinary operations less estimated costs of completion of the sale. For work in progress and finished products, the acquisition cost is calculated as direct and indirect costs. Inventories are valued based on the average acquisition cost.

The Group's total inventories include the following:

MNOK	2024	2023
Raw materials	4,086	4,028
Work in progress	766	487
Finished products	2,422	2,334
Total as of 31 December	7,274	6,848
Value changes in inventory recognised through profit and loss	130	103
Cost of goods sold in the year amounts to	17,689	15,334

9 Personell expenses, remuneration to Executive Management and the Board

Salaries and other personnel expenses represent expenses associated with the remuneration of personnel employed by the Group.

MNOK Note	2024	2023
Salaries	12,219	10,588
Long-term incentive scheme (LTI)	27	22
Share program employees	91	74
Employer's National Insurance contributions on salaries	1,724	1,495
Pension expenses, defined benefit plan 10	3	6
Pension expenses, defined contribution pension schemes 10	889	808
Other benefits	809	698
Total personnel expenses	15,764	13,691
Average no. of full-time equivalents	13,874	12,767

Share transactions with employees

For a number of years, the Group has been conducting a share programme for all employees, offering shares at a discounted price. Discounts on shares are recognised as personnel expenses. The Group also has a share programme for leading employees.

Total remuneration to the members of the Executive Management for 2024 and 20231)

	Amounts in TNOK	Salary paid	Other benefits3)	Paid pension compensation4)	Accrued long-term incentive plan (LTI)5)	Accrued performance related pay during the financial year (STI)6)7)	Pension accrual during the year8)	Pension right for salary exceeding 12G paid out	Outstanding amount, loans	Shares acquired during the financial year linked to the LTI scheme9)	Total number of shares inc. LTI as of 31 Dec
Year
2024		30,371	2,324	317	5,557	13,975	2,402	0	0	5,941	129,401
2023		28,283	2,040	310	4,784	11,548	2,132	0	0	7,229	140,668

1) Compensation and other benefits to members of Corporate Executive Management are based on their time served as part of the Corporate Executive management.

2) Salary paid during the period, including holiday pay

3) The amount includes benefits such as communication, car arrangements, taxable share of insurance, expensed discounts on shares in connection to KONGSBERG's share program as well as other taxable benefits.

4) Paid pension compensation related to transition from defined benefit pension plan to defined benefit contribution scheme as of 1 January 2008 5) Accrued LTI including tax compensation is, for accounting purposes, accrued on a linear basis over three years since the shares can be managed freely only after three years. The 2024 figure consist therefore of 1/3 of the 2022 award, 1/3 of the 2023 award and 1/3 of the 2024 award.

6) Accrued performance-based part of salary (STI) in the financial year. To be paid when the financial statement for this year have been approved by the Board.

7) Correction of STI 2023 for two members of the Corporate Executive Management, for details please see the remuneration report or the Corporate Executive Management.

8) The amount includes accrued pension during the year in the benefit contribution scheme related to salary under 12G and accrued pension related to salary above 12 G as well as early retirement pension for those in the Corporate Executive Management entitled to this. Further described in the remuneration report for the Corporate Executive Management.

9) Correction of the 2023 LTI for the three newest members of the Corporate Executive Management. The figure included LTI for the period they were not members of the Corporate Executive Management.

Detailed information about remuneration to the Executive Management and the Board will be presented in a separate report on remuneration to the Executive Management in KONGSBERG 2024. It is the Board's Compensation Committee that prepare significant issues related to salary and other remuneration to the Executive Management before the formal Board discussion and resolution. The remuneration report will be published at kongsberg.com in relation with the notice of the Annual General Meeting.

Compensation and share holdings members of the Board

Amounts in NOK	Number of shares	Fixed Board remuneration	Remuneration for committee meetings	Total Board remuneration	Number of Board meetings
Year
2024	17,321	3,039,287	809,633	3,848,920	12
2023	18,077	2,770,380	591,060	3,361,440	15

10 Pensions

KONGSBERG has a service pension plan that complies with legislation and consists of a defined contribution plan. The service pension plan includes all employees of the Group in Norway. As of 31.12.24 8,765 employees in Norway are covered by the plan. KONGSBERG aims to ensure that as many of its employees abroad also are covered by a pension scheme.

Defined contribution pension scheme

The Group has a defined contribution pension scheme for all employees in Norway with some exceptions. The contribution rates are five per cent of salary up to 7.1G, and 11 per cent of salary from 7.1G up to 12G. In addition, the Group has a closed collective, unfunded contribution plan for salaries exceeding 12G. This means that the money required for the pension payments are not paid to a pension fund, but the company is obliged to cover the pension payments from own funds when the payments are executed. The Group's deposits in this plan is 18 per cent of the portion of the base salary exceeding 12G. The return reference is a savings profile with 50 per cent shares. KONGSBERG keeps track of the pension additions to the employees and the return together with our pension provider. KONGSBERG's companies abroad generally have defined contribution plans. As of 31 December 2024 approximately 8,765 employees in Norway and the majority of the employees abroad were covered by these plans. The contributions are expensed as incurred and are recognised as personnel expenses in the consolidated statement of income.

Defined benefit plan

The Group has a closed collective defined benefit pension plan for salaries exceeding 12G for a few employees. The defined pension plan is collective for all the members and they receive pension payments based on a common setup. The collective defined benefit plan corresponds to about 60 per cent of the share of the final salary that exceeds 12G until the age of 77, and then the benefit is reduced by 50 per cent for the remaining lifetime.

The Group has also a collective defined benefit pension plan for white collar employees in Sweden born before 1979. The pension benefits are defined by the number of contribution years and the salary level of the individual employee. The employees earn pension on Swedish income base amounts (the same as the Norwegian base amount (G)) between 0 and 30.

To ensure a uniform calculation of KONGSBERG's pension liabilities, all corporate companies, except two companies, Kongsberg Aviation Maintenance Services AS and Kongsberg Maritime Sweden AB, have used the same actuary for the calculations. In the consolidated statement of income, the year's net pension expenses, after a deduction for the net interest expenses of the liability and the expected return on pension plan assets, have been recognised as Personnel expenses. The pension liabilities are presented net including social security contributions in the statement of financial position. The financial and actuarial assumptions are subject to annual review. The discount rate is stipulated on the basis of the covered bond interest rate, that reflects the duration of the pension liability. Actuarial gains or losses related to changes in the basis data, estimates and changes in assumptions are recognised in other comprehensive income.

Net pension liabilities have increased somewhat since 2023. This is mainly due to reduced discount rate and actuarial losses.

Terms and conditions for the Corporate Executive Management are described in the "Remuneration report for Executive Management in KONGSBERG".

Risk coverage

Disability pension from the Group will provide an addition to the estimated disability benefits from national insurance. National insurance will cover 66 per cent of the pension basis up to 6G, while the Group plan covers 66 per cent of the pension basis between 6G and 12G. The Group plan also provides an additional three per cent of the pension basis from 0G to 12G, a pay increase of 25 per cent of G and any child supplement of four per cent per child (maximum three children). The disability pension is a one-year risk cover and the premiums will be expensed as they accrue. The risk pensions are unfunded for the share of salary that exceeds 12G. In practice this implies that KONGSBERG is self-insurer for the risk pension for future periods.

Early retirement schemes

KONGSBERG does not any longer offer early retirement schemes, but employees included in these schemes before 1 October 2015 had this continued. The Group still has outstanding obligations related to such early retirement pension agreements for a few people.

Pension assumptions

The calculation of future pensions in the benefits plan is based on the following assumptions:

Economic assumptions	31 Dec 24	31 Dec 23
Discount rate, Norway	4.00 %	4.80 %
Discount rate, Sweden	3.00 %	3.30 %
Wage adjustment	2.75 %	3.00 %
Pension base level (G) adjustment	3.25 %	3.50 %
Pension adjustment	1.00 %	1.00 %
ABCDE
Other Norwegian assumptions	31 Dec 24	31 Dec 23
Mortality	K2013	K2013

Disability IR73 IR73 Voluntary turnover 4,5 % for all ages 4,5 % for all ages

The year's pension costs were calculated as follow:

MNOK	2024	2023
Expenses, defined benefit plans	3	6
Expenses of defined contribution plans in Norway	651	571
Expenses of defined contribution plans abroad	238	236

Net interest expenses are classified as finance expenses.

Change in net pension liabilities

	2024			2023
MNOK	Funded	Unfunded	Total	Funded	Unfunded	Total
Changes in gross pension liabilities
Gross pension liabilities as of 1 January	107	499	606	143	430	573
Adjustment to opening balance	—	—	—	(21)	21	—
Present value of current year's contribution	—	3	3	—	5	5
Interest expenses on pension liabilities	4	17	21	4	17	21
Actuarial losses/gains	13	29	42	44	26	70
Payments of pensions/paid-up policies	(9)	(13)	(22)	(59)	(15)	(74)
Net change in social security expenses	2	1	3	(5)	1	(4)
Translation differences	—	6	6	—	15	15
Gross pension liabilities as of 31 December	117	541	659	107	499	606
Changes in gross pension fund assets
Fair value, pension plan assets as of 1 January	28	—	28	19	—	19
Expected return on pension funds	1	—	1	1	—	1
Actuarial losses/gains	(5)	—	(5)	18	—	18
Premium payments	—	—	—	40	—	40
Payments of pensions/paid-up policies	(2)	—	(2)	(50)	—	(50)
Settlement of pension scheme	—	—	—	—	—	—
Fair value, pension plan assets as of 31 December	22	—	22	28	—	28
Net carrying amount pension liabilities as of 31 December	95	541	637	79	499	578

The secured pension scheme is insured through an insurance company, and the Group's pension funds are thereby regulated by an insurance policy. The insurance policy cannot be traded, and the value is determined in accordance with the legislation on insurance businesses. The insurance has an interest guarantee, implying that the insurance company carries the risk for the return on the pension funds. The funds have primarily been invested in bonds, with some being invested in shares and property.

Historical information

MNOK	2024	2023	2022	2021	2020
Gross pension liabilities as of 31 December	659	606	2,662	2,808	2,690
Fair value, pension plan assets as of 31 December	22	28	1,557	1,671	1,716
Net pension liabilities as of 31 December	(637)	(578)	(1,105)	(1,137)	(974)
Actuarial gains/losses pension liabilities as of 31 December	42	70	147	148	67
Actuarial gains/losses pension assets as of 31 December	(5)	18	22	3	(37)
Accumulated estimated gains/losses recognised in the statement of comprehensive income after tax	(1,469)	(1,429)	(1,387)	(1,672)	(1,559)
Of which, constitutes experience deviations	(1,111)	(1,097)	(1,057)	(1,044)	(972)

Contractual early retirement plan

The Group's general contractual early retirement plan gives a life-long supplement to the ordinary pension. Employees can choose to draw on the plan from the age of 62, even if they continue to work. The plan is a defined benefit multi-employer pension plan, and it is funded through premiums established as a percentage of wages. For the moment, there is no reliable measurement or allocation of liabilities and funding as regards the plan. For accounting purposes, the plan is therefore considered to be a defined contribution pension scheme in which premium payments are expensed against income on an ongoing basis, and no provisions are made in the financial statements. A premium is paid to the plan of the total payments made between 1G and 7.1G to the Group's employees. In 2024 the premium was 2.6 per cent (2.6 per cent in 2023) estimated at MNOK 142). There is no accumulation of capital in the plan and further increases in the premium level are expected over the coming years.

Other

Expected pension payments within the defined benefit pension scheme are as follows:

MNOK
24
24
24
25
22
102

11 Property, plant and equipment

Property, plant and equipment are recognised at acquisition cost, net of accumulated depreciation and/or any accumulated impairment losses. Such cost includes expenses that are directly attributable to the acquisition of the assets. Property, plant and equipment are depreciated on a straight-line basis over their expected useful life. When individual parts of a property, a plant or equipment have different useful lives, and the cost is significant in relation to total cost, these are depreciated separately. Any expected residual value is taken into account when stipulating the depreciation schedule.

The remaining expected useful life and expected residual value are reviewed annually. Gains or losses on the disposal of property, plant and equipment are the difference between the sales price and the carrying amount of the unit, and recognised to net value in the income statement. Expenses incurred after the asset is in use, e.g., day-today maintenance costs, are expensed as they are incurred. Other expenses expected to result in future economic benefits and that can be reliably measured, are recognised in the statement of financial position.

KONGSBERG has production sites and offices all over the world. Some of these may be more vulnerable to extreme weather and climate change than others. The Group has contingency plans and alternative delivery lines for those locations that may be affected by extreme weather. In 2023, an analysis was carried out in collaboration with an external company where physical climate risk was assessed for the ten most important locations in Norway. The analysis ranked the priority locations based on nine risks, such as flooding, rising sea levels and landslides. This gave us important insight into which locations that are most exposed and what risks make them vulnerable. The Group's climate risk assessment indicates that there is low physical climate risk associated with KONGSBERGs property, plant and equipment. The conclusions are still valid in 2024. Therefore, no impairment or adjustment of depreciation have been made related to climate risk on own property. KONGSBERG has property damage and interruption insurance that safeguards risk adapted to the Group's exposure.

	2024			2023
Note	Land	Buildings and other real property	Machinery and plant	Equipment and vehicles	Plant in progress	Total	Land	Buildings and other real property	Machinery and plant	Equipment and vehicles	Plant in progress	Total
Aquisition cost
Acquisition cost as of 1 January	403	3,713	3,073	1,895	1,513	10,598	411	3,539	2,790	1,873	422	9,035
Reclassification	12	100	30	—	(161)	(18)	(17)	28	43	(81)	(39)	(65)
Additions	49	768	729	343	(102)	1,787	18	289	291	250	1,132	1,980
Disposals	(7)	(198)	(17)	(9)	—	(231)	(7)	(51)	(70)	(172)	(3)	(303)
Disposal discontinued operations	—	—	—	—	—	—	(4)	(175)	(24)	—	—	(203)
Translation differences	3	101	48	36	1	190	2	84	44	25	—	154
Acquisition cost as of 31 December	460	4,485	3,864	2,264	1,252	12,326	403	3,713	3,074	1,895	1,513	10,599
Accumulated depreciations and impairment
Total accumulated depreciation and impairment as of 1 January	(5)	1,574	2,020	1,419	2	5,010	(5)	1,540	1,900	1,490	2	4,928
Reclassification	—	(11)	(9)	(3)	—	(23)	—	4	(3)	(68)	—	(67)
Depreciation for the year 5	—	159	233	185	—	577	—	146	187	146	—	479
Impairment for the year 5	—	—	—	—	—	—	—	1	—	3	—	4
Accumulated depreciation through disposal	—	(123)	(15)	(7)	—	(145)	—	(32)	(69)	(171)	—	(272)
Accumulated depreciation through discontinued operations	—	—	—	—	—	—	—	(109)	(22)	—	—	(131)
Translation differences	—	38	36	29	—	103	—	23	27	20	—	69
Total accumulated depreciation and impairment as of 31 December	(5)	1,636	2,265	1,624	3	5,522	(5)	1,574	2,021	1,419	2	5,011
Carrying amount as of 31 December	466	2,850	1,598	640	1,249	6,804	409	2,140	1,053	476	1,511	5,588
Useful life		10-33 år	1-10 år	1-10 år				10-33 år	1-10 år	1-10 år

12 Leases

KONGSBERG has leases which are primarily related to land and buildings, as well as leases for machinery, vehicles and equipment. The leases are hedged with the underlying asset. KONGSBERG recognises the value of leases as leasing assets and leasing liabilities if it is considered that the lease contains a right to control the use of the asset. The Group applies uniform principles in the recognition and measurement of leases. Other performances in the leases such as shared costs related to leasing of property or service agreements concerning vehicles and leases concerning intangible assets are not recognised, in accordance with the rules in IFRS 16.

Leasing assets

Leasing assets are recognised from the date the underlying assets are made available for use to KONGSBERG.

Leasing assets are considered for impairment according to the principles described in Note 14 Impairment testing.

Leasing liabilities

Leasing liabilities are recognised from the date the underlying assets are made available for use to KONGSBERG.

Most leasing agreements in KONGSBERG regard leasing of property. The incremental borrowing rate is determined based on yield. The property yield is therefore used in the discounting of the lease payments to calculate the present value since the interest rate implicit in the lease is not normally readily determinable.

The lease term includes the non-cancellable period of a lease. In addition, periods covered by extension options are also included if it is reasonably certain that KONGSBERG will exercise the option and periods covered by termination options if they most likely will not be exercised. KONGSBERG has a number of leases which include extension options. These options have been negotiated to secure flexibility as regards the handling of the lease portfolio according to KONGSBERG's ongoing needs.

Short-term leases and leases of low-value assets

KONGSBERG applies the recognition exemption to leases that have a lease term of less than 12 months for property, machinery, vehicles and equipment. KONGSBERG applies the recognition exemption to leases of low-value assets primarily on office equipment. Lease payments related to the above mentioned leases, are recognised as expense on a straight-line basis over the lease term and are therefore not recognised in the consolidated statement of financial position.

Sale and leaseback transactions

KONGSBERG has a few sale and leaseback transactions related to property. In the event of the sale of a property, if the sale is considered as an actual sale, the property is derecognised and a leasing asset and a leasing liability are recognised, along with a gain or loss on the transferred rights for use of the asset. If the leaseback only is considered to be a financial transaction the asset will not be derecognised.

	2024			2023
MNOK	Real property	Machinery and plant	Total	Real property	Machinery and plant	Total
Acquisition cost
Acquisition cost as of 1 January	3,310	33	3,343	3,142	25	3,168
Additions through acquisition	—	—	—	10	—	10
Additions	814	11	826	379	14	393
Disposals	(505)	(9)	(514)	(272)	(7)	(280)
Translation differences	79	1	79	51	1	52
Total acquisition cost as of 31 December	3,698	37	3,735	3,310	33	3,343
Accumulated depreciation and impairment
Accumulated depreciation and impairment as of 1 January	1,660	15	1,675	1,413	11	1,424
Depreciation for the year	474	10	485	483	10	493
Accumulated depreciation through disposals	(412)	(9)	(421)	(259)	(7)	(266)
Translation differences	38	—	38	22	2	24
Total accumulated depreciation and impairment as of 31 December	1,760	17	1,777	1,660	15	1,675
Carrying amount as of 31 December	1,939	20	1,959	1,650	18	1,668
Lease term	1-37 år	1-10 år		1-21 år	1-5 år
Depreciation period	Linear	Linear		Linear	Linear

Leasing liabilities

MNOK	2024	2023
Carrying amount as of 1 January	1,890	1,945
Additions through acquisition	—	10
Additions	826	393
Interests on leasing liabilities	148	136
Lease payments	(628)	(613)
Disposals	(95)	(14)
Translation differences	48	33
Carrying amount as of 31 December	2,189	1,890
Short-term leasing liabilities	427	433
Long-term leasing liabilities	1,762	1,457

Recognised in the income statement

MNOK	2024	2023
Depreciation on leases during the year	485	493
Interest expenses on leasing liabilities	148	136
Expenses related to short-term leases and leases on assets of low value	61	37
Total recognised in profit/loss	694	666

See note 23 Provisions regarding non-current liabilities associated with properties that have been sold and leased back. The total outgoing cash flows for leases was MNOK 689 in 2024 (MNOK 650 in 2023) ), which consist of calculated interest on leasing liabilities of MNOK 148, payment of principal portion of leasing liabilities of MNOK 480 and payment for leasing contracts not recognised in the financial position of MNOK 61.

For information on due dates for leases payments, see Note 20E Liquidity risk.

13 Intangible assets

Goodwill

Goodwill arises at the acquisition of a business (business combination) and is not depreciated. Goodwill is recognised in the statement of financial position at acquisition cost less any accumulated impairment losses. Goodwill does not generate cash flows independent of other assets or groups of assets, and is allocated to the cash-generating units that are expected to gain financial benefits from the synergies that arise from the business combination from which the goodwill is derived. In KONGSBERG, the cashgenerating units are defined as operating segments in accordance with 5 Operating Segments. Cash-generating units that are allocated goodwill are tested for impairment (loss) annually at the end of the year, or more frequently if there is any indication of impairment.

Development

Costs related to development activities, including projects in the development phase, are recognised in the statement of financial position if the development activities or project meet the defined criteria for capitalisation. Development comprises activities related to planning or designing the manufacturing of new or significantly improved materials, devices, products, processes, systems or services before being placed in commercial production or use. When assessing whether a project constitutes the development of a new system, functionality or module, the object being developed must be able to operate independently of existing systems/products that are sold. Significant improvements to already capitalised development must also be considered in relation to the defined requirements to capitalisation. KONGSBERG has considered the criteria for significant improvements to be an increase of more than 20 per cent in value from before being developed in relation to the replacement cost of the system. Capitalisation requires development costs to be measured reliably, that the product or process is technically and commercially feasible, that future economic benefits are likely and that KONGSBERG intends, and has sufficient resources, to complete the development and to use or sell the asset. Other development costs are expensed as they are incurred.

When the criteria for capitalisation are met, accrued costs are recognised in the balance sheet. Costs include raw materials, direct payroll expenses and a portion of indirect costs that are directly attributable to the development.

Capitalised development costs are recognised at cost less accumulated amortisation and impairment losses in the statement of financial position. Amortisation is based on the expected useful life. The amortisation starts when the asset is available for use. The main principle is linear amortisation. The remaining expected useful life and expected residual value are reviewed annually.

The calculation of financial benefits is based on the same principles and methods as for the impairment testing. The calculation is based on long-term budgets approved by the Board. Note 14 Impairment testing has more details on the calculation.

Assessments of the fulfilment of the criteria for capitalising development costs are made on an ongoing basis throughout the completion of the development projects. Based on technical success and market assessments, a decision is made whether to complete development and start recognition in the statement of financial position.

Internally financed development projects at Kongsberg Maritime and Kongsberg Discovery mainly contain many projects with limited total scope and, to a great extent, the development of existing technology. Many of these development projects are not considered to be eligible for capitalisation. Several of the projects also entail considerable uncertainty about whether they are technologically feasible and how the final solution will turn out. Normally, the criteria for capitalisation will not be satisfied until fairly late in the development project.

The business area Kongsberg Defence & Aerospace has per 31 December 2024 just above MNOK 600 of the carrying amount related to capitalised internal development projects in KONGSBERG. This includes technology associated to weapon stations, missile systems, control systems and communication equipment.

Kongsberg Digital has ongoing capitalised development projects related to the digital platform Kognifai and associated applications. Kongsberg Digital has per 31 December 2024 just below MNOK 800 of the carrying amount related to capitalised internal development projects in KONGSBERG.

Development projects financed by customers are not capitalised, but KONGSBERG seeks to obtain ownership rights to the developed products.

Maintenance

Technology and other intangible assets

Maintenance is the work that must be performed on products or systems to secure their expected useful life. If a significant improvement is made on the product or system that could result in a prolonged life cycle, or if the customer is willing to pay more for the improvement, this is to be considered as development and must be included in the presentation of financial position. Costs related to maintenance are expensed as incurred.

Technology and other intangible assets with determined useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is based on the expected useful life, according to the principle of linear amortisation. The expected useful life and the determination of the amortisation rate are reviewed during each period. In KONGSBERG "Other intangible assets" consists primarily of customer relations and trademarks acquired through acquisitions, as well as proprietary software.

			2024					2023
MNOK Note	Goodwill	Technology	Capitalised internal development	Other intangible assets	Total	Goodwill	Technology	Capitalised internal development	Other intangible assets	Total
Aquisition cost
Acquisition cost as of 1 January	4,788	1,279	2,546	954	9,565	4,588	1,239	2,194	902	8,923
Reclassification	—	(23)	18	1	(3)	(3)	(1)	11	(10)	(3)
Additions through acquisition	—	—	—	—	—	196	28	—	—	224
Additions	—	—	369	90	459	—	—	340	63	403
Disposals	—	(2)	—	(1)	(3)	—	—	—	—	—
Translation differences	6	9	2	1	17	7	12	1	—	20
Acquisition cost as of 31 December	4,794	1,263	2,934	1,044	10,036	4,788	1,279	2,546	954	9,567
Accumulated amortisation and impairment
Total accumulated amortisation and impairment as of 1 January	903	798	1,218	698	3,613	902	697	932	611	3,142
Reclassification	—	15	—	(17)	—	—	(1)	10	(10)	(1)
Amortisation 5	—	92	285	60	436	—	89	237	97	422
Impairment 5	—	—	23	—	23	—	—	39	—	39
Disposals	—	(2)	—	(1)	(3)	—	—	—	—	—
Translation differences	—	9	—	—	9	—	13	—	—	13
Total accumulated amortisation and impairment as of 31 December	903	911	1,525	739	4,079	902	798	1,218	698	3,615
Carrying amount as of 31 December	3,891	351	1,409	305	5,957	3,886	481	1,328	257	5,952
Useful life		1-10 years	1-10 years	1-10 years			1-10 år	1-10 år	1-10 år

Product maintenance and development recognised in profit and loss

	2024			2023
MNOK	Product Maintenance	Development costs	Total	Product Main tenance	Development costs	Total
Kongsberg Maritime	453	1,045	1,498	373	800	1,174
Kongsberg Defence & Aerospace	3	195	197	34	114	148
Kongsberg Discovery	92	373	465	103	358	461
Kongsberg Digital	49	166	215	59	240	300
Total	596	1,779	2,376	569	1,513	2,082

Estimation uncertainty

KONGSBERG has strict criteria that must be satisfied before capitalisation can start. The decision to start to capitalise a development program is based on assessments made by the management of the relevant business area. Management makes assessments of future market opportunities, ability to achieve the desired technological solution and of development costs that will be incurred. These are conditions that can change over time.

Capitalised development costs are amortised according to the estimated lifetime. Estimated lifetime may change over time. This is considered annually, and the amortisation is adjusted when considered necessary. No impairment needs have been identified for existing technology and capitalised development as a result of the fact that this could potentially become outdated in the development of new technology that will contribute to solving climate challenges. When testing the value of capitalised development costs, the Group applies the same principles and methods as used for impairment testing of goodwill. Regarding estimate uncertainty associated with this matter, see Note 14 Impairment testing.

14 Impairment testing

All non-financial assets are reviewed for each reporting period to determine whether there are any indications of impairment. If this is the case, recoverable amounts are calculated. The Group uses the value in use to determine the recoverable amount of the cash flow-generating units.

The calculation of net present value is based on a discount rate after tax and reflects current market assessments of the time value of money and the risks specific to the asset. The pre-tax discount rate has been calculated using an iterative method.

Non-financial assets subject to impairment losses are reviewed during each period to determine whether there are indications that the impairment loss has been reduced or no longer exists. Reversals of previous impairment are limited to the carrying value the asset would have had after depreciation and amortisation, if no impairment loss had been recognised.

Goodwill

Goodwill acquired through acquisitions is allocated to the Group's operating segments and is followed up and tested collectively for the group of cash flow-generating units included in the operating segment. Goodwill is followed up for groups of cash flow generating units that are similar to those defined as operating segments in accordance with Note 5 Operating segments.

Goodwill is allocated to the operating segments as follows:

MNOK	31 Dec 24	31 Dec 23
Kongsberg Maritime	1,815	1,812
Kongsberg Defence & Aerospace	633	631
Kongsberg Discovery	1,092	1,092
Kongsberg Digital	397	397
Eliminations1)	(46)	(46)
Total	3,891	3,886

1) Eliminations contain an adjustment for added value arising from transfers between the business areas

The Group tests goodwill for impairment annually or more frequently if there are indications of impairment. Goodwill write- downs cannot be reversed in a later period if the recoverable amount of the cash flow-generating unit increases. Any impairment is recognised as impairment in the income statement.

The Group has used value in use to determine recoverable amounts for the cash flow-generating entities. Value in use is determined by using the discounted cash flow method. The expected cash flow is based on the business areas' budgets and long-term plans, which are approved by KONGSBERG's executive management and Board. Budgets and long-term plans cover a five-year period (explicit prognosis period). Approved budgets and long-term plans are adjusted for cash flows related to investments, restructuring, future product improvements and new development, if the elements are considered significant for the impairment test. After the five years of explicit plans, the units' cash flows are stipulated by extrapolation. At the beginning of the extrapolation period, the entity is assumed to be in a steady state. To calculate value in use, the Group has used anticipated cash flows after tax and, correspondingly, discount rates after tax. The recoverable amount would not have been significantly different if cash flows before tax and the discount rate before tax had been used. The discount rate before tax has been stipulated using an iterative method and is shown in a separate table.

Key assumptions for impairment testing

The calculation of value in use for the business areas is most sensitive to the following assumptions:

Key assumptions per cash flow-generating unit

Percent	Kongsberg Maritime	Kongsberg Defence & Aerospace	Kongsberg Discovery	Kongsberg Digital
Discount rate before tax	10.26	8.60	10.25	10.05
Discount rate after tax	8.64	7.05	8.64	8.64
Long-term nominal growth rate	2.00	2.00	2.00	2.00
Inflation	2.00	2.00	2.00	2.00

Discount rate

The discount rates are based on a weighted average cost of capital (WACC) method, whereby the cost of equity and the cost of liabilities are weighted according to an estimated capital structure. The discount rates reflect the market's required return on investment at the time of the test and in the industry to which the cash-generating unit belongs. The estimated capital structure is based on the average capital structure in the industry in which the cash generating unit operates and an assessment of what is a reasonable and prudent long-term capital structure. The CAPM model is used to estimate the cost of equity. In accordance with the CAPM model, the cost of equity consists of risk-free interest as well as an individual risk premium. The risk premium is the entity's systematic risk (beta), multiplied by the market's risk premium. The risk-free interest is estimated on a 10-year Norwegian government bond interest rate and is based on all cash flows being translated to NOK. The cost of liabilities represents an expected long-term after- tax interest rate for comparable liabilities and consists of risk-free interest and an interest spread.

Profit margin (EBIT)

The profit margin is reviewed for each of the cash flow-generating entities that are based on expectations of future development. On the Capital Markets Day in 2024 a long-term target of 15 per cent EBIT for the Group in 2033 was communicated. The explicit five- year period is based on moderate growth.

Growth rate

Growth rates in the explicit prognosis period are based on management's expectations of market trends in the markets in which the undertaking operates. The Group uses stable growth rates to extrapolate cash flows in excess of five years. The long- term growth rate beyond five years is not higher than the expected long-term growth rate in the industry in which the undertaking operates.

Climate risk and opportunities

KONGSBERG assess both climate risk and opportunities in the determination of recoverable amount. At the moment we assess that the Group is not significantly affected by physical climate risk, but there is a risk that the recoverable amount can be affected by climate-driven changes in demand for the Group's products, and laws and regulations.

Market risks are expected to pose the greatest challenges for KONGSBERG. This includes declining revenues from oil and gas, increased costs for components and materials, and the possibility that sustainable products may become less competitive in markets outside Europe.

On the other hand, opportunities related to technology development have been identified, where KONGSBERG delivers cutting-edge technologies and meets the demand for increased volumes of sustainable products, especially within the maritime sector. In addition, the climate changes in the form of increased extreme weather, may lead to increased demand for some of our technologies and products of particularly high quality and robustness, such as communication and surveillance equipment adapted to extreme weather conditions.

KONGSBERG has with its existing technology and position to further develop this technology and create new technology several market opportunities related to contributing to solve the climate challenges and changes. This involves among other technology for monitoring climate changes, technology for extreme weather conditions, new technology such as offshore wind, digitalisation and solutions using alternative fuel. This can lead to increased revenues from existing technology solutions but also revenues from new solutions and products.

For further descripton of climate risks and opportunities please refer to chapter 3 Sustainability statement and Note 4 Management of capital and financial risks.

Revenues and market opportunities

KONGSBERG possess a unique positioning towards two mega trends driving our markets, namely Security and Sustainability.

The security megatrend is driven by the increased tension in geopolitical relations. This development has made security rise towards the top of the agenda at governments, businesses, and individuals. Defence budgets are rising and the Group faces increased demand for our products and core competencies.

The other megatrend is sustainablitiy and the goal towards achieving a net zero society that generates a strong demand for more energy efficient solutions and new energy sources. Both the industry itself and governing authorities are setting target and direction towards the ultimate goal net zero by 2050.

Despite uncertain macroeconomic perspective and increased interest rates, KONGSBERG observe an increasing willingness to invest in both defence and green transition initiatives which again leads to an increasing in demand that is expected to continue throughout the prognosis period.

KONGSBERG has communicated an ambition of reaching revenues of NOK 120 billion within 2033.

Kongsberg Maritime

Kongsberg Maritime covers a wide range of ocean space maritime markets, including offshore, LNG, seaborne transport, cruise and passenger, tugs, fisheries, aquaculture, and naval. Kongsberg Maritime's growth will be broadly driven by the offshore sector, predominantly oil and gas in the near-term complemented by wind in the medium to long-term, as well as tankers, leisure travel, and naval. Additionally, other factors such as environmental rules and regulations will drive fleet renewal and upgrades on sailing fleets. The markets Kongsberg Maritime is operating within will continue to see long term growth and the business area's portfolio mix is well balanced to address this growth. The underlying growth in the market is broadly driven by GDP, seaborne trade, oil price, offshore and renewable energy investment, leisure travel, defence and governmental spending, in addition to other factors such as environmental rules and regulations that drives fleet renewal. The marine markets are volatile and cyclical.

The number of vessels contracted from the world's shipyards in 2024 increased form the previous year. Several vessels segments contributed to this increase. Kongsberg Maritime has strong positions within segments that are developing positively. The offshore market is an example of this. Kongsberg Maritime's order intake from the offshore market accounted for just under 20 per cent of the total order intake from new vessels in 2024. The revenues related to the oil and gas market in 2024 represent a significant share of Kongsberg Maritime's revenues.

The average age of the world fleet has increased significantly over the past ten years. At the same time, the global shipping industry faces significant demands and expectations related to reduced emissions and increased energy efficiency. This means that the sailing fleet must be renewed and replaced by greener and more energy efficient vessels. Kongsberg Maritime has delivered solutions related to safety and streamlining of vessel operations and operations for decades. Close cooperation with both the shipyard and the owner of the vessel and the operator has given the business area an unique domain knowledge that provides an advantage in both existing and

new markets. This provides a good foundation for demand for Kongsberg Maritime's solutions in both the short and longer term.

The technologies which KONGSBERG is built on are to a large extent transferable to other industry verticals and the Group can benefit from the technology and competence it possesses to contribute to the green transition.

Kongsberg Defence & Aerospace

The activity in Kongsberg Defence & Aerospace is closely related to the geopolitical situation in the world. Disruption and increased focus on nations' security have spurred a surge in demand for defence technology and systems that protect people and critical infrastructure. As the situation is today, it is likely that NATO countries and Norway's allies will continue to invest in and strengthen their own defence capabilities. The business area's product portfolio is well positioned to meet current and future defence and security needs. Norway is the most important market for the business area. In addition, the business area has a strong position in USA and Australia. It is a strong demand for the business area's core products such as air defence, missiles and weapon stations.

In Norway, there is high activity related to the new frigates and standardised vessels. Alongside positioning for these opportunities, there is a focused effort to develop solutions that meet new and future needs. A good balance between short-term opportunities and long-term strategic plans is an important foundation for success over time.

The business area ends 2024 with a record-high order backlog of NOK 100 billion, of which 18 per cent of the order backlog is to be delivered in 2025, while 82 per cent is to be delivered in 2026 and later. The profitability varies across different product groups and geographical region and the project composition within the delivery portfolio significantly impacts the profitability of the business area. and will also vary between quarters.

In addition, Kongsberg Defence & Aerospace operates in the space technology segment and has been the largest space-industry player in the Nordics. With this technology KONGSBERG delivers solutions used for monitoring illegal fishing, deforestation and oil spill as well as deliveries of climate related data which allows for a better understanding of and fight against the climate change.

Kongsberg Discovery

Kongsberg Discovery operates within a diverse array of sectors and technologies, engaging with both commercial and defence markets. The business area's operations are influenced by macro trends such as climate change, resource dependence, security concerns, and growth opportunities in the ocean economy.

The main drivers for Kongsberg Discovery are sustainablility and security. Sustainable management of ocean resources is an important driver for several of the business area's sectors. The business area is exposed to these drivers in large market segments such as offshore energy production, commercial fishing, seabed mapping, security, and monitoring of critical infrastructure. The demand for solutions to better understand the ocean space, 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 has gained increased attention from both international and national actors.

Available markets for Kongsberg Discovery continue to grow steadily and is expected to remain in a state of growth the following years. The growth is expected to come from existing products in current market, new products and application of the technology in new markets.

Kongsberg Digital

Kongsberg Digital is a preeminent provider of digital solutions to the energy sector and the maritime industry. The digitalization plays a pivotal role enhancing efficiency and curbing greenhouse gas emissions within these sectors. The "Software as a Service" solutions stand as the primary catalysts driving growth and the demand for these solutions remains robust.

Kongsberg Digital will intensify the development of the core products, mainly focusing on digital twin technology, with aim to drive innovation, improvements and adapting to evolving customer needs. Going forward the focus is to expand the market presence within existing sectors and explore new opportunities.

A key to make operations more efficient and reduce both greenhouse gas emissions and environmental impact is to make use of our customers' vast amounts of data.

KONGSBERG's digital solutions enable reduction of greenhouse gas emissions in the customer's operations and contribute to establishing low-carbon technologies such as carbon capture and storage. Kongsberg Digital's digital twins for ships and offshore installations help optimise the operations and reduce emissions. The Digital Twin concept is transferable to renewable industries, such as offshore wind.

Sensitivity analysis

In connection with impairment tests of goodwill, sensitivity analyses are carried out for each individual cash generating unit.

The cash generating units will not be in an impairment situation before relatively large changes in the key assumptions, and these changes are considered to be outside the reasonable outcome.

Estimation uncertainty

There will always be uncertainty related to the estimate of value in use. The assessments are based on key assumptions as described above and are to a large degree influenced by market data for comparable companies, interest rates, population and economic growth, geopolitical risks, makro-economic uncertainty, technology development and other risk conditions. In a world characterised by greater uncertainty related to an unstable energy market, high inflation, the transition to a circular economy and climate risk, which can lead to increased commodity prices and reduced access to subsidies, it is even more challenging to predict/calculate future cash flows, even though KONGSBERG has initiated measures to limit the negative effects of this. The best estimate based on the latest available information and judgment has been used in relation to future earnings and operations. Significant deviations in these can affect accounting estimates such as economically useful life of assets and value in use calculation.

15 Financial income and financial expenses

Financial income consists of interest income, dividends, currency gain, gain on realisation of Assets at fair value through profit and loss and other financial income. Interest income is recognised as it accrues using effective rate, while dividends are recognised at the date of approval of the Annual General Meeting.

Financial expenses consist of interest expenses, currency losses, losses on realisation of Assets at fair value through profit and loss, interest expenses related to financing elements in customer contracts and other financial expenses. Interest expenses are recognised as they accrue using effective rate.

In addition, there are interest expenses on leasing liabilities (see Note 12 Leases).

MNOK Note	2024	2023
Interest income from assets at amortised cost	322	120
Foreign exchange gain	63	30
Discounts of non-current provisions	3	1
Other financial income	8	20
Total financial income	397	172
Interest expense from liabilities at amortised cost	341	203
Foreign exchange loss	54	50
Discounts of non-current provisions	—	—
Other financial expenses1)	218	66
Total financial expenses	613	319
Interest expenses on leasing liabilities 12	148	136
Net finance item recognised in income statement	(364)	(283)

1) The large increase in other financial expenses is mainly due to impairment of shares at fair value through profit and loss.

16 Income tax

Income tax expense

MNOK	2024	2023
Current tax on profits for the year (incl WHT)	1,503	803
Adjustment in respect of prior years - current tax	(9)	(7)
Current income tax	1,494	796
Current year change in deferred tax	(60)	175
Adjustment in respect of prior periods	4	(11)
Deferred income tax	(56)	164
Income tax	1,441	959

Change in deferred tax recognised in other comprehensive income

MNOK	2024	2023
Tax (expense)/ credit on cash flow hedges	53	(20)
Tax (expense)/ credit on pension	11	11
Change in deferred tax recognised in comprehensive income	63	(9)

Effective tax rate

The table below reconcile the reported income tax expenses to the tax expenses if the tax rate of 22 per cent in Norway was applied:

	2024		2023
	MNOK	Per cent	MNOK	Per cent
Earnings before tax	6,584		4,675
Expected tax calculated at Norwegian tax rate of 22%	1,449	22.0%	1,028	22.0%
Tax effects of:
Change in tax rate	(3)	—%	—	—%
Equity transactions	(2)	—%	(2)	—%
Adjustments in respect of prior years	(5)	(0.1)%	(19)	(0.4)%
Previously unrecognised tax losses and accruals	37	0.6%	15	0.3%
Net income from joint arrangements and associated companies	(97)	(1.5)%	(78)	(1.7)%
Different tax rates abroad	(27)	(0.4)%	8	0.2%
Withholding tax	26	0.4%	6	0.1%
Other permanent differences	63	1.0%	1	0.1%
Income tax expense and effective tax rate	1,441	21.9%	959	20.5%

Taxes paid

	2024		2023
MNOK Note	Total	Norway	Abroad	Total	Norway	Abroad
Income tax	839	312	527	1,043	600	443
Withholding tax	26	—	26	6	—	6
Total taxes paid	864	311	553	1,049	600	449

Changes in deferred tax assets and liabilities

			Tax recognised in total comprehensive
			Changes in tax rate		income
MNOK	Opening Balance	Tax recognised in income statement		Acquisitions/ Disposals	Foreign exchange and reclassifications	Closing Balance
Property, plant and equipment	218	172	3	—	— 10	403
Customer contracts	(277)	(16)	—	—	— —	(293)
Pension	74	4	—	—	11 —	89
Provisions / currency	646	26	—	—	— —	672
Losses carried forward	198	(117)	—	—	— —	81
Derivatives assets	(415)	104	—	—	53 —	(258)
Derivatives liability	424	(425)	—	—	— —	(1)
Contracts under construction	(1,916)	312	—	—	— —	(1,603)
Carried forward interest deductions	1	(6)	—	—	— —	(5)
Net deferred tax assets / (Liability)	(1,046)	53	3	—	63 10	(916)

Customer contracts/Temporary differences

For customer contracts that are recognised over time, fiscal revenue recognition will occur when the control and risk has been transferred to the customer and KONGSBERG has a substantial right to the contract consideration. This has no effect on the tax expense in the income statement, but as a consequence, tax payable will fluctuate over time. KONGSBERG has large and long-term ongoing contracts often resulting in significant temporary differences. This is because the revenues are recognised over time in accordance to the accounting principles, while for tax purposes the revenues are recognised at delivery to the customer.

Global Anti-Base Erosion Rules (Pillar 2)

KONGSBERG has performed an assessment of its potential exposure to Pillar Two taxes based on 2024 financial information for the Group's entities operating in low-tax jurisdictions. KONGSBERG does not anticipate any significant increase in tax in Norway and/or other countries where the group operates. KONGSBERG does however not rule out some increase in small- size operations in countries with very low taxes. However, this should not have a significant impact on the profit after tax, effective tax or tax payable for KONGSBERG.

The Group continues to follow Pillar Two legislative developments to evaluate the potential future impact on its consolidated result of operations, financial position and cash flows.

Deferred tax

MNOK	31 Dec 24	31 Dec 23
Deferred tax asset	509	331
Deferred tax liability	(1,425)	(1,377)
Net deferred tax	(916)	(1,046)

Tax loss carry-forward (gross amounts)

MNOK	Norge	Europa	Andre	Sum
Less than five years	—	—	130	130
5-10 years	—	—	3	3
10-20 years	—	—	16	16
Without time limit	1,476	159	11	1,646
Total	1,476	159	159	1,794

Unrecognised Deferred Tax Assets

MNOK	31 Dec 24	31 Dec 23
Unrecognised tax loss carry-forward	98	80
Unrecognised other tax assets	—	—
Total not recognised	98	80

Estimation uncertainty

KONGSBERG is subject to income taxes in numerous jurisdictions, and expose us to multiple tax regimes and their interaction. Management judgement may be involved when determining the taxable amount. Tax authorities in different jurisdictions may challenge KONGSBERGS' calculation of taxes payable from prior period, and as required the management has made provisions for such risk. Management judgement is required when assessing the valuation of unused tax losses, interests, and tax credits. The recoverability is assessed by estimating future profits, foreign revenue and the entities tax positions.

17 Earnings per share

Annual earnings per share are calculated as the ratio of net profit/(loss) attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding. The diluted earnings per share is the profit attributable to the ordinary shareholders, and the weighted number of shares outstanding, adjusted for all diluting effects related to share options. There are no dilution effects.

MNOK	2024	2023
Earnings attributable to the ordinary shareholders
Earnings after tax	5,144	3,715
Non-controlling interests' share of the result	-18	-4
Earnings for the year/diluted earnings attributable to the ordinary shareholders	5,126	3,712

MNOK Note	31 Dec 24	31 Dec 23
Shares at fair value through profit and loss 20	101	225
Loans to employees	8	7
Prepaid land rental	1	—
Long-term loans, associated companies	2	11
Other non-current assets	266	298
Total other non-current assets	378	541

Number of shares	Note	2024	2023
Number of shares outstanding as of 1 January		175.90	177.31
Number of shares as of 31 December		175.91	175.90
Average number of shares	22	175.91	176.08
NOK		2024	2023
Earnings per share		29.14	21.08
Earnings per share for the year, diluted		29.14	21.08

18 Other non-current assets

19 Receivables and credit risk

Trade receivables and other receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such financial assets are measured at amortised cost using the effective interest method, but due to the brief term to maturity, accounts receivable and other receivables will in practice be recognised at their nominal values less impairment. Trade receivables in foreign currencies are recognised at the exchange rates at the balance sheet date.

Credit risk

Exposure to credit risk

For an explanation of KONGSBERG's credit risk and the handling of this, see Note 4 Management of capital and financial risks. Carrying amount of financial assets represents the maximum credit exposure:

MNOK	Note	31 Dec 24	31 Dec 23
Trade receivable1)		11,058	9,060
Other short-term receivables		1,154	951
Customer contracts in progress	6	6,555	2,286
Other non-current assets	18	277	316
Cash and cash equivalents	21	14,293	5,975
Forward contracts and interest rate swaps that are used as currency hedging	20A	2,356	1,887
Total exposure to credit risk		35,694	20,476

MNOK Note	31 Dec 24	31 Dec 23
Trade receivables	11,058	9,060
Provision for bad debts	(396)	(338)
Net trade receivables	10,662	8,722

1) Trade receivables have increased significantly since last year due to increases in deliveries and natural fluctuations in business with larger milestone payments.

Trade receivables distributed by region

MNOK	31 Dec 24	31 Dec 23
Norway	1,678	1,126
Europe	5,110	3,572
North America	1,702	2,171
South America	263	209
Asia	1,684	1,623
Other countries	621	360
Total	11,058	9,060

Trade receivables distributed by customer type

MNOK	31 Dec 24	31 Dec 23
Public	4,845	3,547
Private	6,213	5,513
Total	11,058	9,060

KONGSBERG makes provision for expected credit losses on financial assets not classified as fair value through profit and loss. Expected credit loss is calculated based on the present value of all cash flows over the remaining expected useful life, i.e. the difference between the contractual cash flows and the cash flows the Group expects to receive, discounted by the effective interest rate applicable to the instrument. The expected cash flows shall include cash flows from the sale of collateral or other credit enhancements integrated into the contract terms.

The Group uses the simplified method to calculate loss provisions for accounts receivable and contract assets. Accounts receivables are subject to individual assessments. The Group measures loss provision based on expected credit loss over the lifetime of each reporting period. The expected credit loss provision is based on historical credit losses, adjusted for future customer specific factors and the general economic situation.

Credit exposure on the Group trade receivables

	31 Dec 24		31 Dec 23
		Provisions for bad debts		Provisions for bad debts
MNOK	Gross		Gross
Not due	7,604	(16)	5,720	(1)
Past due 1–30 days	1,684	(1)	1,303	(3)
Past due 31-90 days	617	(8)	623	(10)
Past due 91-180 days	303	(50)	428	(28)
Past due more than 180 days	850	(321)	986	(296)
Total	11,058	(396)	9,060	(338)

Change in provision for bad debts

MNOK	31 Dec 24	31 Dec 23
Provisions as of 1 January	(338)	(445)
Adjustment to opening balance	—	(7)
Actual losses	21	51
Additions	(116)	(9)
Dissolved	38	72
Provision as of 31 December	(396)	(338)

20 Financial instruments

Financial assets and liabilities

Financial assets and liabilities consist of derivatives, investments in shares, accounts receivable and other receivables, customer contracts in progress, cash and cash equivalents, interest-bearing debt, accounts payable and other liabilities.

Classification

The Group classifies assets and liabilities upon initial recognition based on the type of instrument and the intended purpose of the instrument. These are classified in the following categories:

• i. Fair value with changes in value through profit and loss
• ii. Financial assets measured at amortised cost
• iii. Derivatives earmarked as hedging instruments measured at fair value
• iv. Financial liabilities measured at amortised cost

A) Fair value hedges

Derivatives

Derivatives in KONGSBERG are comprised mainly of forward exchange contracts and currency swaps. Currency options and cross-currency swaps are used to some extent. Upon initial recognition, derivatives are measured at fair value, and identifiable transaction costs are recognised through profit and loss as incurred. KONGSBERG applies the rules for hedge accounting to the extent that the requirements of IFRS 9 are fulfilled. Changes in the fair value of derivatives are recognised through profit and loss should they not qualify for hedge accounting.

MNOK Note	31 Dec 24	31 Dec 23
Current assets
Forward exchange contracts, cash flow hedges (a)	822	238
Forward exchange contracts, fair value hedges (b)	1,534	1,617
Cross-currency swaps and/or interest rate swap	—	32
Total derivatives, current assets	2,356	1,887
Current liabilities
Forward exchange contracts, cash flow hedges (c)	1,069	524
Forward exchange contracts, fair value hedges (d)	2,962	1,301
Cross-currency swaps and/or interest rate swap	68	105
Total derivatives, current liabilities	4,100	1,929
Net forward exchange contracts, cash flow hedges (a) - (c) 20C	(247)	(286)
Net forward exchange contracts, fair value hedges (b) - (d) 20B	(1,428)	316
Total net forward exchange contracts	(1,675)	30

Fair value hedges

Fair value hedges are intended to secure contracted currency flows. This means that the fair value hedge secures trade receivables as well as remaining contractual amount on contractual transactions in a currency other than the entity's functional currency. Using fair value hedges the change in fair value of the hedge instrument is recognised against the hedged object. For currency hedges of future contractual transactions, this implies that the change in value of the future transaction due to changes in the exchange rate are recognised in the balance sheet. Since the hedging instrument is also recognised at fair value, this entails symmetrical recognition of the hedged object and the hedging instrument. For customer contracts, this implies that revenue is recognised at the hedged exchange rate.

KONGSBERG is exposed to multiple currencies, but these are less significant compared to the exposure in USD, EUR and partially GBP versus NOK.

B) Currency risk and currency hedging

Derivatives earmarked as hedging instruments measured at fair value

Derivatives are recognised in the balance sheet at fair value. Changes in the value of cash flow hedges are recognised through other comprehensive income, while changes in the value of fair value hedges are recognised against both the hedged item and the hedging instrument with the opposite effect, resulting in a net effect of zero in the profit and loss statement.

Hedging

The Group's financial policy states that contracts above a certain threshold shall be subject to currency hedging upon establishment, and these are primarily hedged using forward exchange contracts (fair value hedges). KONGSBERG's currency risk and management of this risk are explained in Note 4 Management of capital and financial risks. In special cases, the Group uses forward exchange contracts or to some degree currency options as cash flow hedges, e.g. in large tenders where contract award is considered highly probable.

Before hedge accounting can be applied, KONGSBERG documents all qualification criteria for the use of hedge accounting. These include the identification of hedging instruments and objects, the risk to be hedged, and how the Group will assess whether the hedge relationship meets the requirements for hedge effectiveness.

KONGSBERG determines whether a derivative (or another financial instrument) should be used to:

• i. Hedging of a firm commitment (fair value hedges)
• ii. Hedging of a future cash flow from a recognised asset or liability, or an identified highly probable future transaction (cash flow hedges)

	Average exchange rate		Spot rate as of 31 Dec
MNOK	2024	2023	2024	2023
USD	10.79	10.57	11.37	10.14
EUR	11.63	11.43	11.77	11.19
GBP	13.78	13.18	14.22	12.90

As of 31 December, the group had the following hedges of net sales in foreign currencies, listed by hedge category:

Currency hedging, fair value hedges

	2024										2023
	Due in 2025 Due in 2026 and later				Total					Due in 2024 Due in 2025 and later			Total
Amounts in millions	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Total hedged amount	Average hedged rate	Fair value 31 Dec 23	Change in fair value from 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Total hedged amount	Average hedged rate	Fair value 31 Dec 22	Change in fair value from 31 Dec 22
USD	5,360	(440)	6,732	(589)	12,092	(1,029)	1,167	10.36	212	(1,241)	8,444	180	2,820	32	11,264	212	1,080	10.30	69	142
EUR	6,097	(91)	5,021	(214)	11,118	(304)	950	11.70	107	(411)	6,428	97	5,648	9	12,076	107	965	11.45	109	(2)
GBP	463	(73)	(1,318)	63	(855)	(11)	(61)	14.08	4	(15)	697	24	239	(20)	936	4	72	12.92	36	(33)
Others	312	(39)	(96)	(45)	216	(84)	—	—	(6)	(78)	362	6	290	(12)	652	(6)	—	—	(31)	24
Sum	12,232	(643)	10,338	(785)	22,570	(1,428)			316	(1,744)	15,931	307	8,997	9	24,928	316			184	132

Cash flow hedges

Cash flow hedges are hedges of highly probable future cash flows. Given hedge effectiveness, changes in fair value are recognised through other comprehensive income, and are categorized at Level 2 in note 20G Assessment of fair value. Any currency options and cross- currency swaps are classified as cash flow hedges and thus apply the same accounting principles as described in this section.

When a hedged transaction occurs, accumulated changes in fair value of the hedging instrument is transferred from other comprehensive income to profit for the year. If the hedged transaction leads to recognition of an asset or liability, the hedging instrument is accrued concurrently with the hedged transaction.

Hedges of future customer contracts are allocated to the specific contract upon signing and are rolled forward from cash flow hedges to fair value hedges. Gains and losses previously included in other comprehensive income are recognised in the income statement concurrently with the contract progress. This means that customer contracts that are hedged before signing are recognised at the originally hedged exchange rate. If a hedging instrument expires without having been rolled forward or if the hedge relationship is discontinued, the accumulated gains and losses are recognised directly through profit and loss when the hedged transaction takes place. In the event that the hedged transaction is no longer expected to occur, the accumulated unrealised gains or losses on the hedging instrument previously recognised in other comprehensive income will be transferred to profit and loss.

In some cases, hedging of investments outside of Norway is applicable (net investment hedge). Net investment hedges are recognised equivalent to cash flow hedges. Profit or loss on the hedging instrument related to the effective share of the hedging that has been recognised through other comprehensive income as a part of the translation difference, shall be included in profit and loss by realisation of the foreign entity.

Currency hedging, cash flow hedges

	2024									2023
	Due in 2025 Due in 2026 and later			Total					Due in 2024 Due in 2025 and later			Total
Amounts in millions	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 24	Total hedged rate	Average hedged rate 1)	Fair value 31 Dec 23	Change in fair value from 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Value in MNOK on agreed rates	Fair value in MNOK at 31 Dec 23	Total hedged amount	Average hedged rate	Fair value 31 Dec 22	Change in fair value from 31 Dec 22
USD	(1,623)	(19)	1,670	(233)	47	(253)	28	1.69	(328)	75	(1,495)	(238)	2,248	(90)	753	(328)	111	6.79	(89)	(239)
EUR	(134)	3	(47)	—	(181)	3	(15)	11.72	30	(27)	470	30	(59)	—	411	30	34	12.33	—	30
GBP	(43)	—	(64)	—	(107)	1	(8)	14	12	(11)	13	12	—	—	13	12	—	—	—	12
Others	(30)	1	(11)	—	(42)	1	—	—	—	1	(8)	—	(23)	—	(31)	—	—		(2)	2
Sum	(1,830)	(15)	1,549	(233)	(281)	(247)			(286)	38	(1,021)	(196)	2,165	(90)	1,145	(286)			(92)	(194)

1) Average hedged rate in USD is influences by the presentation of net figures. Average hedged rate for gross outflow and gross income is 9,67 (10,31) and 9,94 (9,98), respectively.

Fair value is referring to the net present value of the variance between the forward rate at 31 December and the forward rate at the time of entering the forward exchange contract, and are categorized at Level 2 in note 20G Assessment of fair value. Values in the table related to value in NOK on agreed rates and fair value in NOK also include other currencies.

Due date profile, hedges

As of 31 December, the group had the following hedges of net sales in foreign currencies, listed by hedge category:

Amount in million	Nominal currency ampunt	Due in 2025	Due in 2026 and later
Hedge category
Forward exchange contracts, fair value hedges
USD	1,167	511	657
EUR	950	521	429
GBP	(61)	38	(99)

MNOK	Nominal currency amount	Due in 2025	Due in 2026 and later
Hedge category
Forward exchange contracts, cash flow hedges
USD	28	(141)	169
EUR	(15)	(12)	(4)
GBP	(8)	(3)	(5)

Follow-up of hedging effectiveness and hedge ineffectiveness

Ineffective fair value hedges may occur due to changes in timing of currency inflow or outflow. In order to maintain the hedge effectiveness currency swaps are used to balance cash inflow and outflow. At shorter time differences between the maturity of the forward contracts and the receipts/payments, KONGSBERG uses bank accounts in foreign currency to maintain the hedge effectiveness. As a result, the exchange of foreign currency from the foreign currency bank account takes place in the same period as the final maturity of the forward contract or the receipts/ payments. Hedge effectiveness will therefore be very high throughout the entire contractual period. Ineffective cash flow hedges may occur if the highly probable transaction hedged as a cash flow hedge no longer is considered highly probable and therefore terminated.

Changes in fair value for hedge effective cash flow hedges are recognised in other comprehensive income. Any hedge ineffectiveness will be recognised through profit and loss.

The total change in value of hedged projects is MNOK -1,744 during 2024 (MNOK 132 in 2023). Derivatives used for hedging projects do at 100 per cent hedge effectiveness carry the equivalent negative value through the year. Changes in fair value is recognised in accounts receivable and as construction contracts in progress (assets and liabilities).

The Group had no ineffective hedges during 2024.

Currency options

As of 31 December 2024, KONGSBERG had no currency options.

Cross-currency swaps

Subsequent to the acquisition of shares in Patria Oyj in 2016, cross-currency swaps were entered in order to partially hedge net investment in foreign entity. The net investment in Patria is now hedged with cross-currency swaps of MEUR 164. Per 31 December 2024 the cross-currency swaps had a fair value of MNOK -68 (MNOK -105 per 31 December 2023).

Sensitivity analysis

A weakening of the NOK against USD and EUR as of 31 December of 10 per cent would have changed other comprehensive income by the amount listed in the table below.

Estimated effect on other comprehensive income (after tax):

MNOK	2024	2023
Forward exchange contracts in USD	25	88
Forward exchange contracts in EUR	(14)	30
Cross-currency swaps in EUR	(151)	(86)
Total	(140)	31

Given hedge effective cash flow hedges, the full effect of any currency rate fluctuations will be recognised in other comprehensive income. For fair value hedges, neither other comprehensive income nor the profit and loss will be affected as long as the hedges are effective. The currency hedging strategy of KONGSBERG, that generally hedges all contractual currency flows and receivables in foreign currencies, results in only minor effects on the profitability of existing contracts subsequent to any currency rate fluctuations.

Translation differences currency

MNOK	2024	2023
Translation differences Patria	100	211
Translation differences subsidiaries	276	215
Total	376	426

C) Cash flow hedges and hedging of net investment in foreign entity

List of the periods in which the cash flows related to derivatives that are cash flow hedges are expected to occur:

	31 Dec 24				31 Dec 23
MNOK	Carrying amount	Expected cash flow	2025	2026 and later	Carrying amount	Expected cash flow	2024	2025 and later
Currency forward exchange contracts
Assets	822	862	386	862	238	252	165	87
Liabilities	(1,069)	(1,125)	(401)	(1,125)	(524)	(547)	(365)	(182)
Total	(247)	(264)	(15)	(264)	(286)	(295)	(200)	(95)

List of the periods in which the cash flows related to derivatives that are cash flow hedges are expected to affect results:

	31 Dec 24			31 Dec 23
MNOK	Carrying amount	Expected cash flow	2025	2026 and later	Carrying amount	Expected cash flow	2024	2025 and later
Currency forward exchange contracts
Assets	822	862	241	620	238	252	88	164
Liabilities	(1,069)	(1,125)	(315)	(810)	(524)	(547)	(192)	(356)
Total	(247)	(264)	(74)	(190)	(286)	(295)	(103)	(192)

Cash flow hedges and net investment in foreign entity - hedge reserve

Hedging reserve includes total accumulated net changes in fair value for financial instruments used as cash flow hedges which are recognised in other comprehensive income.

MNOK	2024	2023
Opening balance 1.1	(143)	(215)
Changes in fair value during the period	(134)	170
- Forward exchange contracts and roll-over effects 1)	(105)	(77)
- Cross-currency swaps	—	—
- Currency options	—	—
Adaptations in connection with hedge accounting in acquired companies
Tax on items recognised directly in other comprehensive income	53	(20)
Closing balance 31.12	(330)	(143)
Recognised gains/losses in the period
Amount reclassified from the cash flow hedges to fair value hedges1)	379	254

1) Accrual occurs when cash flow hedges are realised and new forward exchange contracts, fair value hedges, are entered into for the projects (roll-over). The capitalized currency roll-over effects for cash flow hedges were MNOK -172 during the year, while the change in fair value was MNOK 38 since 2023.

If an expected project is contracted and a fair value hedge is established, the hedge reserve is recognised as transferred from other comprehensive income to the capitalised value of the hedged project. If an expected cash flow occurs and does not result in a fair value hedge, the hedge reserve is recognised in the income statement at the same time as the hedged transactions.

No ineffective cash flow hedges were recognised in the ordinary result in 2024 (MNOK 0 in 2023).

D) Interest rate risk on loans

	2024			2023
MNOK	Due date	Nominal interest rate	Carrying amount 1)	Nominal interest rate	Carrying amount 1)
Long-term loans
Bond issue KOG09 - fixed interest rate	02.06.26	3.20%	1,000	3.20%	1,000
Bond issue KOG14 - floating interest rate	26.02.26	5.56%	500	5.61%	500
Bond issue KOG15 - fixed interest rate	31.05.30	4.85%	1,000	4.85%	1,000
Total long-term loans			2,500		2,500
Short-term loans:
Bond issue KOG13 - floating interest rate2)	06.06.24	5.90%	—	5.85%	500
Total short-term loans			—		500
Total interest-bearing loans			2,500		3,000

	2024		2023
MNOK	Due date	Nominal amount	Nominal amount
Syndicated credit facility (unutilised borrowing limit)3)	22.03.29	2,500	2,500
Overdraft facility (unutilised)		1,500	1,500

1) Value is equal to nominal amount. For long-term bond loans, the carrying amount is equal to the nominal amount. 2) The bond issue KOG13 was repaid during the year. 3) The credit facility was extended with one year during the quarter.

MNOK	2024	2023
Carrying amount as of 1 January	3,000	2,453
Debt in acquired companies	—	10
Issuance of new bond	—	1,000
Repayment of debt	(500)	(463)
Carrying amount as of 31 December	2,500	3,000

Sensitivity analysis interest rate risk

Simulated annual effect on net income of an interest rate increase of 50 bp in NIBOR:

MNOK	2024	2023
Investments with floating interest rates	71	30
Variable interest rate loans	(22)	(16)
Cash flow sensitivity (net)	49	14

Kongsberg Gruppen ASA held three bond loans at the end of 2024. The bond loans were issued in Norwegian kroner and listed on the Oslo Stock Exchange. The interest rate terms on the loan with floating rates are 3M NIBOR with a margin of + 0.86 per cent for KOG14. The fixed interest rates are 3.20 per cent for KOG09 and 4.85 per cent for KOG15. The group holds an overdraft facility of MNOK 1,500. As of 31 December 2024, this remains unutilised.

Kongsberg Gruppen ASA has a syndicated credit facility with Danske Bank, DNB, JP Morgan, Nordea and SEB. The credit facility is for general corporate purposes, and has an applicable Termination Date 22 March 2029. The interest rate is 3M NIBOR + a margin that depends on the ratio of net interest-bearing debt/EBITDA and can vary from 0.5 per cent to 2 per cent. The credit facility requires that net interest- bearing debt does not exceed 4.75 times EBITDA, but can be up to 5.25 times EBITDA for a maximum of four quarters, of which three quarters may be consecutive. The covenants in the loan agreements have been met. The facility was unutilised as of 31 December 2024.

		2024	2023
MNOK	Due date	Interest Rate	Nominal amount 2024	Fair value 31 Dec 24	Nominal amount 2023	Fair Value 31 Dec 23
Interest rate swap agreements, fixed to floating rate1)	31.05.30	4.85%	1,000	(4)	1,000	32
Total interest rate swap agreements			1,000	(4)	1,000	32

1) KONGSBERG has entered into two interest rate swaps from fixed to floating interest rates for a nominal amount each of MNOK 500. The agreements were entered into in connection with the bond loan KOG15, which is a fixed rate loan. The value change for these interest rate swap agreements is adjusted in the same period as the change in value of the loans as a fair value hedge. The floating rate coupon is 3M NIBOR + 1.36 per cent p.a. Fair value of the interest rate swap agreements is categorized at Level 2 in note 20G Assessment of fair value.

E) Liquidity risk

The table shows due dates in accordance with the contract for financial liabilities, including interest payments. Liabilities such as government fees and taxes are not financial liabilities and are therefore not included. The same applies to prepayments by customers and project accruals.

	31 Dec 24					31 Dec 23
MNOK	Carrying amount	Contractual cash flows	2025	2026	2027	2028	2029 and later	Carrying amount	Contractual cash flows	2024	2025	2026	2027	2028 and later
Financial liabilities that are not derivatives
Unhedged bond issues	2,500	(2,840)	(109)	(1,566)	(49)	(49)	(1,068)	3,000	(3,461)	(621)	(109)	(1,566)	(49)	(1,117)
Leasing liabilities	2,189	(2,659)	(560)	(487)	(362)	(303)	(947)	1,890	(2,244)	(545)	(424)	(344)	(242)	(689)
Other loans and long-term liabilities	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Accounts payable	3,292	(3,292)	(3,292)	—	—	—	—	2,868	(2,868)	(2,868)	—	—	—	—
Financial liabilities that are derivatives
Currency derivatives	4,032	(4,314)	(1,728)	(1,368)	(472)	(383)	(362)	1,824	(1,935)	(1,119)	(464)	(208)	(108)	(35)
Basis swaps	68	(68)	(68)	—	—	—	—	105	(105)	(105)	—	—	—	—
Total	12,082	(13,173)	(5,756)	(3,421)	(883)	(735)	(2,378)	9,687	(10,613)	(5,259)	(996)	(2,119)	(399)	(1,841)

F) Summary financial assets and liabilities

Financial assets at fair value with changes in value in the profit and loss statement Except for investments in subsidiaries, joint ventures or associated companies in the balance sheet, all shares are defined as fair value with changes in value through profit and loss.

Financial assets measured at amortised cost

The Group measures financial assets at amortised cost provided the following conditions have been met:

• The financial asset is part of a business model where the intention is to receive contractual cash flows, and
• The contractual terms for the financial asset give rise to cash flows solely consisting of the payment of principal and interest on given dates.

Subsequent measurement of financial assets measured at amortised cost is performed using the effective interest rate method and is subject to loss provisions. Profits and losses are recognised when the asset has been derecognised, modified or written down. Receivables related to operations are measured at amortised cost, which in practice implies their nominal value and provision for expected losses.

Financial liabilities measured at amortised cost

The company's financial liabilities are recognised at amortised cost, except for financial derivatives, which are recognised at fair value through other comprehensive income.

Fair value of interest-bearing debt is calculated by using market values of the bond loans, and are categorized at Level 1 in note 20G Assessment of fair value. Estimated cash flows are discounted by the interest rate KONGSBERG would expect to pay for equivalent funding at the balance sheet date. The reference market interest rate before credit margin is 3M NIBOR. The credit margin is then estimated for KONGSBERG for remaining tenors.

Financial assets and liabilities divided into different categories for accounting purposes as of 31 December:

		2024		2023
			Fair value with change in value through profit or loss					Fair value with change in value through profit or loss
MNOK Note	Amortised cost	Hedge derivatives		Total	Fair value	Amortised cost	Hedge derivatives		Total	Fair value
Assets - non-current assets
Other non-current assets 18	277	—	101	378	378	316	—	225	540	540
Assets- current assets
Derivatives 20A	—	2,356	—	2,356	2,356	—	1,887	—	1,887	1,887
Receivables 19	11,816	—	—	11,816	11,816	9,673	—	—	9,673	9,673
Customer contracts in progress 6	6,555		—	6,555	6,555	2,286		—	2,286	2,286
Cash and cash equivalents 21	14,293	—	—	14,293	14,293	5,975	—	—	5,975	5,975
Financial liabilities - non-current
Interest-bearing loans 20D	2,500	—	—	2,500	2,476	2,500	—	—	2,500	2,486
Leasing liabilities 12	—	—	—	1,762	1,762	1,457	—	—	1,457	1,457
Other non-current liabilities	52	—	—	52	52	51	—	—	51	51
Financial liabilities - current
Interest-bearing loans 20D	—	—	—	—	—	500	—	—	500	502
Leasing liabilities 12	—	—	—	427	427	433	—	—	433	433
Derivatives 20A	—	4,100	—	4,100	4,100	—	1,929	—	1,929	1,929
Accounts payable 24	3,292	—	—	3,292	3,292	2,868	—	—	2,868	2,868

G) Assessment of fair value

The following table lists the Group's assets and liabilities measured at fair value

		2024
MNOK	Note	Level 1	Level 2	Level 3	Note	Level 1	Level 2	Level 3
Assets
Shares at fair value through profit and loss	18	—	—	101		—	—	225
Derivatives	20A	—	2,356	—		—	1,887	—
Total assets at fair value		—	2,356	101	—	—	1,887	225
Liabilities
Derivatives	20A	—	4,100	—		—	1,929	—
Interest-bearing liabilities (intended for note purposes)1)	20F	2,476	—	—		2,987	—	—
Total liabilities at fair value		2,476	4,100	—	—	2,987	1,929	—

1) Fair value of interest-bearing liabilities are reclassified to Level 1 because the value is based on the market value of the bond loans.

The calculation of fair value on forward currency contracts is based on observable market data. KONGSBERG uses market prices from Refinitiv for each individual forward currency. Market prices are based on supply and demand in the foreign exchange market. The fair value for each individual forward currency is calculated using the present value of the difference between the agreed rate on the forward contract and the forward rate on the balance sheet date for the same maturity date. Fair value of the interest rate swaps, interest rate and currency swaps and currency options is based on market prices from Refinitiv or updated valuations from the transaction counterparty.

H) Estimation uncertainty

KONGSBERG has a range of financial instruments that are recognised at fair value. When market prices cannot be observed directly through traded prices, fair value is estimated by using different models that either build on internal estimates or information from professional counterparties or market players. The assumptions for such assessments may include spot prices, forward prices or interest rate curves.

The assessments are always based on KONGSBERG's best estimates, but it is still likely that the observable market information and assumptions will change over time. Such changes can affect the calculated values of financial instruments considerably, and thereby result in gains and losses that will affect future periods' income statements. How such changes affect the income statement depends on the type of instrument and whether it is included in a hedge relation.

The levels are defined as described below:

Level 1: Fair value is measured by using quoted prices from active markets for identical financial instruments. No adjustment is made with respect to these prices.

Level 2: Fair value is measured based on data other than the list prices covered by the level 1, but which is based on observable market data either directly or indirectly. These methods have some uncertainty in the determination of fair value.

Level 3: Fair value is measured using models that substantially employ non-observable market data. This involves more uncertainty connected to the determination of fair value.

21 Cash and cash equivalents

Cash and cash equivalents comprise bank deposits and short- term liquid funds, that can be immediately converted into a given sum of money and with immaterial risk of changes in value and is held to satisfy short-term cash commitments. Overdraft on cash pool is included in cash and cash equivalents in the statement of cash flow.

MNOK	31 Dec 24	31 Dec 23
Bank deposits	9,225	5,975
Liquidity fund	5,068	—
Total	14,293	5,975

In addition, the Group has an overdraft credit facility of MNOK 1,500 which is unused as of 31 December 2024. Bank guarantees have been furnished for funds related to withholding tax for employees of MNOK 584 (MNOK 511 in 2023). The Group's liquidity management is handled by the Group's corporate treasury unit.

22 Share capital

As of 31 December 2024, share capital consists of 175,921,849 shares, each with a nominal value of NOK 1.25.

Share capital trends

	Date	Number of shares	Nominal NOK	Amount, NOK	Corr. Factor	Share capital MNOK
Expansion type
Stock exchange introduction	13/12/1993	5,850,000	20	117		117
Private placement for employees	1996	6,000,000	20	3		120
Share split	1997	24,000,000	5		01:04	120
Issue	1999	30,000,000	5	30		150
Share split	2009	120,000,000	1		01:04	150
Preferential share issue	2018	179,990,065	1	75		225
Capital reduction, cancellation of own shares	2021	178,833,446	1	(2)		223.5
Capital reduction, cancellation of own shares	2022	177,313,072	1	(2)		221.6
Capital reduction, cancellation of own shares	2023	175,921,849	1	(2)		219.9

List of major shareholders as of 31 December 2024

Shareholders	Number of Shares	%-holding
Ministry of Trade, Industry and Fisheries	87,968,126	50.004%
National Insurance Fund	9,858,949	5.60%
BlackRock	5,655,462	3.21%
Must Invest AS	4,550,000	2.59%
Vanguard	2,938,641	1.67%
Alfred Berg Kapitalforvaltning	2,167,276	1.23%
DNB Asset Management AS	1,802,841	1.02%
Storebrand Asset Management	1,769,837	1.01%
KLP Kapitalforvaltning AS	1,650,823	0.94%
Øyvin A. Brøymer With Companies	1,388,213	0.79%
Fidelity Investments (FMR)	1,356,953	0.77%
MP Pensjon PK	914,572	0.52%
Danske Invest	897,786	0.51%
Eika Kapitalforvaltning	832,569	0.47%
State Street Global Advisors	766,099	0.44%
ODIN Fonder	725,661	0.41%
DWS Investments	654,336	0.37%
Premier Miton Investors	566,245	0.32%
Nordnet Bank AB	531,538	0.30%
Goldman Sachs Asset Management	522,750	0.30%
Total	127,518,677	72.47%
Other	48,403,172	27.53%
Total number of shares	175,921,849	100.00%

Shareholdes listed according to share holding size

Shareholding interval	Number of owners	Number of shares	%-holding
1–1 000	44,202	4,171,318	2.37%
1 001–10 000	2,946	8,114,994	4.61%
10 001–100 000	420	14,641,624	8.32%
100 001–1 000 000	111	32,885,207	18.69%
1 000 001–10 000 000	10	28,140,580	16.00%
Over 10 000 000	1	87,968,126	50.00%
Total	47,690	175,921,849	100.00%

Of the 47,690 shareholders as of 31 December 2024, 2,512 were foreign, with a total holding of 24.85 per cent.

Treasury shares

When treasury shares are reacquired, the cost including direct attributable costs is recognised as changes in equity. Treasury shares are presented as a reduction in equity. Any gain or loss on treasury share transactions is not recognised in profit and loss. As of 31 December 2024, KONGSBERG had a holding of 14,654 treasury shares.

MNOK	Quantity
Holding of treasury shares as of 31 December 2023	17,250
Purchase of treasury shares in connection with employees share programme and long-term incentive scheme1)	421,882
Treasury shares sold to employees in connection with the share programme2)	(408,517)
Treasury shares sold to employees in connection with the long-term incentive scheme	(15,961)
Holding of treasury shares as of 31 December 2024	14,654

1) Purchases of own shares for share programmes and the long-term incentive scheme are measured at the price at the time of acquisition. 2) The price is measured at the average price of all acquisitions made in connection with the share programme.

Dividends

	2024	2023
Dividends paid in NOK per share	14.00	12.00
Dividends paid in MNOK	2,463	2,128
Of which, dividends treasury shares in MNOK	—	13

The Board has proposed a dividend for the 2024 accounting year of MNOK 3,870 equivalent to NOK 22.00 per share, of which NOK 12.00 per share is on top of the ordinary dividend. The dividend will be split into two tranches of NOK 10.00 and NOK 12 (before split of shares). Approval date is on 7 May 2025 with the following ex. dividend dates: 8 May 2025 and 9 October 2025. The first tranch will be paid out on 27 May 2025 and the second on 23 October 2025.

On 6 February 2025, the Board of Directors of Kongsberg Gruppen ASA decided to propose to the Annual General Meeting a split of the company's shares, where one old share becomes five. The proposal will be presented for approval at the company's annual general meeting on 7 May 2025.

23 Provisions

Provisions are recognised when the Group has an obligation as a result of a past event, and when it is probable that there will be a financial settlement as a result of this obligation and the amount can be reliably measured. Estimates should be based on the basis of historical data and a weighting of results against their probability.

When historical information is not available, other sources are used to estimate the provisions. If the time value is material, provisions are determined at the net present value of the liability.

Non-current provision

KONGSBERG has in the period from 2005 to 2014 sold properties in the Kongsberg Technology Park. The properties have been leased back on long-term lease and expire from 2025 to 2030. In connection with the sale and leaseback it was agreed that KONGSBERG guarantees for entry costs and for the maintenance of the buildings in the leaseback period. The current value of future warranty liability is allocated in the accounts. In addition, provision has been made for lack of rental. The remaining provision requirement will need to be assessed each quarter. The effects of discounting cost are transferred as financial expenses.

MNOK	Sale and leaseback
Carrying amount as of 1 January 2024	106
Allocation	1
Provisions used	(5)
Dissolved	(29)
Carrying amount as of 31 December 2024	73

Current provisions

Warranty provisions

Warranty provisions are provisions for warranty costs on completed deliveries. Unused warranty provisions are dissolved upon the expiration of the warranty period.

Warranty provisions are estimated based on a combination of experience figures, specific calculations and judgement. The warranty periods normally last from one to five years, but some defence contracts may in special cases have a significantly extended warranty period. Warranty costs are expensed concurrently with the percentage of completion of the customer contracts and are reclassified as provisions for warranty upon delivery.

Other provisions

Other provisions apply to conditions where there is disagreement between contractual parties, uncertainty related to product liability or products that are in an early life-cycle phase. In addition, onerous contracts are classified as other provision. The estimated amount shall cover the lower of the cost of fulfilling the customer contract and any compensation or penalties arising to fulfil it. There must be an actual loss rather than just a reduced profit. When a customer contract is expected to result in a loss, the loss is recognised in its entirety immediately.

Included in other provisions are also provisions for restructuring.

MNOK	Warranty	Other	Total
Carrying amount as of 1 January 2024	775	675	1,449
Reclassified from other accounting lines	(2)	21	19
Allocation	503	458	961
Provisions used	(189)	(479)	(668)
Dissolved	(176)	-106	(282)
Currency	10	2	12
Carrying amount as of 31 December 2024	921	569	1,490

Estimation uncertainty

Assessments are based on a combination of experience figures, technical evaluations and judgement. Evaluations of the estimates are made each quarter. There is significant uncertainty related to these provisions with respect to amounts and time.

24 Other current liabilities

MNOK Note	31 Dec 24	31 Dec 23
Accounts payable	3,292	2,868
Public charges owing	489	429
Calculated income tax payable	1,064	440
Accrued holiday pay	1,127	994
Withholding tax owed for employees	461	434
Other accruals1)	2,088	1,387
Total	8,521	6,552

1) Other accruals relate to costs incurred for which invoices have not yet been received, salaries owed to employees and other non-interest-bearing liabilities.

Supplier financing arrangements

KONGSBERG has established a supplier financing arrangement for some of its suppliers. Participation rates are at the Supplier's sole discretion. Suppliers participating in the supplier financing arrangement will be able to receive early payment from the financing company on invoices sent to KONGSBERG. If the supplier chooses to receive early payment, they pay a fee directly to the financing company. In order to receive payment from the financing company in advance of the due date, the goods must have been received and the invoice is approved by KONGSBERG. KONGSBERG will then pay the financing company in accordance with the terms of the original invoice from the supplier within the payment deadline agreed with the financing company. The scheme currently covers only a few of Kongsberg Maritime's suppliers.

25 Assets pledged as collateral and guarantees

Assets pledged as collateral

The Group's loan agreements, both bond loan agreements and the agreement on the syndicated credit facilities, are based on the negative collateral.

Prepayment and completion guarantees

Group companies have provided guarantees for prepayments and completion related to customer contracts. The guarantees are issued by Norwegian and foreign banks and insurance companies and by Kongsberg Gruppen ASA (parent company guarantees). Kongsberg Gruppen ASA is responsible for all guarantees.

MNOK	31 Dec 24	31 Dec 23
Guarantees issued by banks and insurance companies	10,758	8,217
Guarantees issued by Kongsberg Gruppen ASA (parent company)	26,181	13,332
Prepayments from and completion guarantees to customers	36,939	21,549

Kongsberg Gruppen ASA has non-committed framework agreements for guarantees with banks and insurance companies.

26 Auditor's fees

	2024				2023¹
TNOK	Parent company	Subsidiaries in Norway	Subsidiaries outside Norway	Total	Parent company	Subsidiaries in Norway	Subsidiaries outside Norway	Total
Group auditor EY
Statutory audit	2,479	13,873	13,689	30,041	2,059	12,484	12,332	26,875
Other assurance services	3,641	3,040	222	6,902	349	626	0	975
Tax consultancy	2,929	82	905	3,916	1,264	0	1,123	2,387
Other non-audit services		2,776	0	2,776	461	46	0	507
Total fees, EY	9,049	19,770	14,815	43,634	4,133	13,156	13,455	30,744
Other auditors
Estimated audit fees			2,406	2,406			2,189	2,189

1) Statutory audit fee for 2023 is adjusted to reflect the actual statutory audit fee for the 2023 financial statement and not the statutory audit fee that was invoiced in 2023.

27 List of Group companies

The Group had 103 companies that operates in total in more than 40 different countries at year-end 2024. The following companies have been consolidated:

Kongsberg Gruppen ASA Norway Mor Kongsberg Defence & Aerospace AS Norway 100 Kongsberg Maritime AS Norway 100 Kongsberg Discovery AS Norway 100 Kongsberg Digital AS Norway 83 Kongsberg Digital Holding ASA Norway 83 FutureOn AS Norway 90 Kongsberg Eiendom Holding AS Norway 100 Kongsberg Teknologipark AS Norway 100 Kongsberg Næringseiendom AS Norway 100 Kongsberg Næringsparkutvikling AS Norway 100 Kongsberg Næringsbygg 2 AS Norway 100 Kongsberg Næringsbygg 5 AS Norway 100 Kongsberg Næringsbygg 17 AS (tidl. Kongsberg Real Estate AS) Norway 100 Kongsberg Næringsbygg 11 AS Norway 100 Kongsberg Næringsbygg 15 AS Norway 100 Kongsberg Næringsbygg 16 AS Norway 100 KNB12 Ulsteinvik AS Norway 100 KNB13 Brattvåg AS Norway 100	Mor 100 100 100 83 83 83 100 100 100
	100
	100
	100
	100
	100
	100
	100
	100
	100
Kongsberg Norcontrol AS Norway 100	100
KNB13 Brattvåg AS Norway 100	100
Simrad AS Norway 100	100
Kongsberg Aviation Maintenance Services AS Norway 50	50
Rygge 2 AS Norway 50	50
Rygge Eiendom AS Norway 50	50
Kongsberg Renewables Technologies AS Norway 100	100
Kongsberg Naval Services AS Norway 100	100

Name of company	Country of origin	Ownership stake 31 Dec 24	Ownership stake 31 Dec 23
Kongsberg Maritime Italy S.R.L	Italy	100	100
Kongsberg Maritime Netherlands B.V	Nederland	100	100
Kongsberg Maritime CM Sp. z o.o.	Poland	100	100
Kongsberg Maritime Polen Sp. z.o.o.	Poland	100	100
Kongsberg Defence Sp. z o.o.	Poland	100	100
Kongsberg Discovery Spain S.L.U. (tidl. Kongsberg Maritime Spain S.L.)	Spain	100	100
Kongsberg Maritime GCS S.L.U	Spain	100	100
Kongsberg Defence Oy	Finland	100	100
Kongsberg Maritime Finland OY	Finland	100	100
Kongsberg Maritime Germany GmbH	Germany	100	100
Kongsberg Maritime France SARL	France	100	100
Kongsberg Defence Switzerland AG	Switzerland	100	100
Kongsberg Norcontrol Ltd.	Great Britain	100	100
Kongsberg Maritime Ltd.	Great Britain	100	100
NanoAvionics UK Ltd	Great Britain	99	79
Kongsberg Discovery UK Limited	Great Britain	100	100
FutureOn Ltd.	Great Britain	90	83
Kongsberg Hungaria Kft.	Hungary	100	100
Navis Consult d.o.o.	Croatia	100	100
Kongsberg Maritime Hellas SA	Greece	100	100
Kongsberg Maritime Denmark A/S	Denmark	100	100
Coach Solutions A/S	Denmark	100	100
Kongsberg Maritime Sweden AB	Sweden	100	100
Kongsberg Maritime RUS LLC	Russia	Phased out	Phasing out
Kongsberg NanoAvionics UAB (tidl. NanoAvionics)	Lithuania	99	79
Kongsberg Maritime Turkey Denizcilik Sanayi Ve Ticaret Limited Şirketi	Turkey	100	100
Interconsult Bulgaria Ltd	Bulgaria	100	65

Name of company	Country of origin	Ownership stake 31 Dec 24	Ownership stake 31 Dec 23
Kongsberg Geospatial Ltd.	Canada	100	100
Kongsberg Digital Simulation Ltd.	Canada	100	100
Kongsberg Maritime Canada Ltd.	Canada	100	100
Kongsberg Discovery Canada Ltd.	Canada	100	100
Ulstein Maritime Ltd.	Canada	Phased out	100
Kongsberg Digital Simulation Inc.	USA	100	100
Kongsberg Maritime Inc.	USA	100	100
Kongsberg Discovery LLC (tidl. Kongsberg Underwater Technology LLC)	USA	100	100
Kongsberg Defence & Aerospace Inc. (tidl. Kongsberg Protech Systems USA Inc.)	USA	100	100
Kongsberg Digital Inc.	USA	100	100
Kongsberg Defence & Aerospace Inc.	USA	100	100
Kongsberg Defense Systems Inc.	USA	100	100
Kongsberg Geospatial Corperation	USA	100	100
Kongsberg Integrated Tactical Systems Inc.	USA	100	100
NanoAvionics US LLC	USA	99	79
FutureOn LLC	USA	90	83
Kongsberg Maritime do Brazil Ltda	Brazil	100	100
FutureOn Ltda	Brazil	90	83
Kongsberg Maritime Mexico SA DE CV	Mexico	100	100
Kongsberg Defence Chile SpA	Chile	100	100
Kongsberg Maritime Chile SpA	Chile	100	100
Kongsberg Maritime Panama Corporation	Panama	100	100
Kongsberg Maritime Holdings Hong Kong Ltd	Hong Kong	100	100
Kongsberg Maritime Hong Kong Ltd.	Hong Kong	100	100
Kongsberg Maritime China Shanghai Ltd.	China	100	100
Kongsberg Maritime China Jiangsu Ltd.	China	100	100
Kongsberg Maritime China Ltd.	China	100	100

Name of company	Country of origin	Ownership stake 31 Dec 24	Ownership stake 31 Dec 23
Kongsberg Digital Technology Services Co. Ltd	China	100	100
Kongsberg Maritime Korea Ltd.	South-Korea	100	100
Kongsberg Norcontrol Pte. Ltd.	Singapore	100	100
Kongsberg Discovery Pte. Ltd. (tidl. Kongsberg Maritime Pte. Ltd.)	Singapore	100	100
Kongsberg Digital Pte. Ltd	Singapore	100	100
Kongsberg Maritime Japan Co Ltd.	Japan	100	100
Kongsberg Maritime India Private Ltd.	India	91	91
Kongsberg Digital Private Limited	India	100	100
Kongsberg Digital Software & Services Private Ltd.	India	100	100
Kongsberg Norcontrol Surveillance Private Ltd.	India	100	100
Kongsberg Maritime CM India PVT Ltd.	India	100	100
Kongsberg Maritime Arabia for Maintenance	Saudi Arabia	100	100
Kongsberg Defence Malaysia Sdn. Bhd.	Malaysia	100	100
Kongsberg Discovery Malaysia Sdn. Bhd. (tidl. Kongsberg Maritime Malaysia Sdn. Bhd.)	Malaysia	100	100
Kongsberg Maritime Services LCC	Qatar	100	100
Kongsberg Maritime Middle East DMCCO	UAE	100	100
Kongsberg Defence Australia Pty Ltd.	Australia	100	100
Kongsberg Defence Australia Mawson Lakes Property Pty Ltd.	Australia	100	100
Kongsberg Maritime Pty Ltd.	Australia	100	100
FutureOn Pty Ltd	Australia	90	83
Kongsberg Maritime South Africa Pty. Ltd.	South-Africa	100	100
Kongsberg Maritime Namibia Pty Ltd.	Namibia	100	100

28 Transactions with related parties

The Norwegian State as the largest owner

The Norwegian State as represented by the Ministry of Trade, Industry and Fisheries is KONGSBERG's largest owner (50.004 per cent of the shares in Kongsberg Gruppen ASA). The State represented by the Ministry of Defence is an important customer for the Group. Sales to the Armed Forces are regulated by the EEA agreement and the Procurement Regulations for the Armed Forces, which guarantee equal treatment for all vendors.

As of 31 December 2024, KONGSBERG had an outstanding balance from state-owned customers of MNOK 388, while other liability items in respect of state suppliers amounted to MNOK 10 as of 31 December 2024.

In 2024, KONGSBERG issued invoices to state customers for a total of MNOK 2,510. Goods and services purchased from state suppliers in 2024 , amounted to MNOK 303.

Please refer also to the Board's report related to the "Norwegian Code of Practice for Corporate Governance" item 4 "Equal treatment to shareholders and related party transactions" in the separate report on "Corporate Governance", where the State as a customer and shareholder is described in more detail.

Transactions with the associated companies

Trade receivables from associated companies amounted to MNOK 273 as of 31 December 2024,while trade payables amounted to MNOK 0 as of 31 December 2024.

In addition, KONGSBERG has a long-term receivable from associated companies of MNOK 2.

In 2024,KONGSBERG issued invoices to associated companies for a total of MNOK 1,164. Goods and services purchased from associated companies in 2024 amounted to MNOK 14.

29 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 EBIT 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". In KONGSBERG the term comprise earning before interest, taxes, depreciation, amortisation and impairment of property, plant and equipment and intangibles. 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 2024 financial statements. The same applies to EBIT.

Restructuring costs consist of salaries and social security tax upon termination of employment (such as severance pay 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 interest- bearing liabilities".

Net interest-bearing debt/EBITDA is net interest-bearing debt divided by 12-months rolling EBITDA.

Return On Average Capital Employed (ROACE) is defined as the 12-months 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.

Working capital is defined as 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.

Working capital is calculated as follow:

MNOK	31 Dec 24	31 Dec 23
Current assets	49,174	34,884
Current liabilities and provisions	(43,696)	(30,689)
Adjusted for:		—
Cash and cash equivalents	(14,293)	(5,975)
Short-term interest-bearing loans	—	500
Short-term leasing liabilities	427	433
Net tax payable	1,009	393
Financial instruments classified as cash flow hedges	138	9
Working capital	(7,241)	(445)

30 Events after the balance sheet date

The sale of the steering gear and rudder business is executed in March 2025

KONGSBERG signed in September 2024 an agreement to sell its steering gear and rudder business, which has been a part of the Propulsion and Handling division in Kongsberg Maritime to a fund managed by the Nordic private equity firm Norvestor. The transaction was executed in March 2025.

This is in line with Kongsberg Maritime's strategy towards decarbonisation of shipping with its integrated systems and increased focus on electrification and digitalisation of the entire product portfolio. The transaction includes a global operation with end-toend capabilities in both new-sale and aftermarket for steering gears and rudders.

In 2023, the business generated revenues of approximately NOK 950 million.

Naxys Technologies AS - completed acquisition

Kongsberg Discovery signed 20 December 2024 an agreement to acquire Naxys Technologies and the acquisition was completed 20 January 2025. The company has 30 employees in Bergen and had NOK 100 million in revenues in 2024. The company is included in the division Ocen Technologies. Naxys Technologies is among the foremost in the world with its technology for underwater environmental monitoring and specializes in recognizing the sound of oil and gas leaks through use of passive hydroacoustic. The company has departments for production, research and development, and sales and service.

Transfer of the maritime business in Kongsberg Digital to Kongsberg Maritime

In January 2025 KONGSBERG announced that the maritime business in Kongsberg Digital will be transferred to Kongsberg Maritime. The business to be transferred involves 500 employees and represented revenues in excess of NOK 600 million. This brings together the Group's commitment to decarbonisation and digitalisation of the maritime sector in one business area.

Statement of Income

KONGSBERG Gruppen ASA

MNOK	Note	2024	2023
Operating revenues from subsidiaries	9	242	236
Other operating revenues		1	2
Total revenues		243	238
Personnel expenses	4,5	(161)	(151)
Depreciation		(3)	(3)
Other operating expenses	4	(175)	(174)
Total operating expenses		(339)	(328)
Earning before interest and taxes (EBIT)		(96)	(90)
Interests from group companies		1,652	105
Net currency gains		13	(6)
Interests to Group companies		(1,805)	(4)
Interest income, bank and investment		283	5
Interest expenses, external loans		(161)	(158)
Impairment group companies		(119)	—
Other financial expenses		(9)	(10)
Group contribution		1,919	1,777
Dividend		2,950	—
Net finance items		4,723	1,709
Earning before tax		4,627	1,619
Income tax expense	6	(399)	(29)
Earnings after tax		4,228	1,590
Allocations and equity transfers
Proposed dividend		3,870	2,463
Transfer to other equity		358	(873)

Statement of Financial Position as of 31 December

KONGSBERG Gruppen ASA

MNOK Note	2024	2023
Assets
Non-current assets
Deferred tax assets 6	50	37
Fixed assets	11	9
Shares in subsidiaries 3	9,228	9,146
Shares in associated companies	11	11
Interest-bearing loans to Group companies 9	2,276	2,216
Other long-term receivables	4	16
Total non-current assets	11,580	11,435
Current assets	—	—
Receivables from Group companies 9,11	4,947	3,911
Other short-term receivables	416	290
Cash and cash equivalents 11	13,340	4,514
Total current assets	18,703	8,715
Total assets	30,283	20,150

KONGSBERG Gruppen ASA

MNOK Note	2024	2023
Equity and liabilities
Equity
Shares capital	220	220
Share premiums	4,876	4,876
Total paid-in capital	5,096	5,096
Other equity	1,231	883
Total retained earnings	1,231	883
Total equity 2	6,327	5,979
Non-current liabilities
Pension liabilities 5	223	207
Long-term interest-bearing loans 7	2,500	2,500
Total non-current liabilities	2,723	2,707
Current liabilities
Dividend	3,870	2,463
Short-term interest-bearing loans 7	—	500
Liabilities to group companies 9,11	16,718	8,319
Other current liabilities	645	182
Total current liabilities	21,233	11,464
Total equity and liabilities	30,283	20,150

Kongsberg, 19 March 2025

Eivind Reiten	Per A. Sørlie	Merete Hverven	Morten Henriksen	Kristin Færøvik	Rune Fanøy	Oda Ellingsen	Kjersti Rød	Geir Håøy
Chairman of the Board	Deputy of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	Members of the Board	President and CEO

Statement of the Cash Flow

KONGSBERG Gruppen ASA

MNOK Note	2024	2023
Earnings before tax	4,627	1,619
Depreciation	3	3
Income taxes paid 6	(11)	(67)
Net finance items	(4,724)	(1,709)
Changes in accruals, etc.	12	(62)
Net cash flows from operating activities	(93)	(216)
Cash flow from investing activities
Purchase of equipment	(5)	—
Purchase of shares	(98)	(34)
Interests received	1,876	73
Settlement of cross-currency swaps	(109)	(59)
Dividends received	639	—
Group contribution received	1,777	413
Net cash flow used in investing activities	4,080	393

Repayment of loans to associated companies	12	—
Payments of loans to associated companies	—	(3)
Proceeds from interest-bearing loans	—	1,000
Repayment of interest-bearing loans	(500)	(450)
Interests paid	(1,956)	(123)
Other financial items paid	(8)	(9)
Dividends paid	(2,463)	(2,128)
– of which dividends from treasury shares	—	13
Net disbursements for purchase/disposal of treasury shares	(5)	(6)
Share buy-back related to share buy-back programme	—	(267)
Changes in intercompany balances	9,759	3,846
Net cash flow from financing activities	4,839	1,873
Total cash flow	8,826	2,050
Cash and cash equivalents as of 1 January	4,514	2,464
Cash and cash equivalents as of 31 December	13,340	4,514

MNOK Note 2024 2023

Cash flow from financing activities

Table continued on next column.

1 Accounting policies

The financial statements for Kongsberg Gruppen ASA have been prepared in accordance with the Norwegian Accounting Act and generally-accepted accounting practices in Norway.

Subsidiaries and associated companies

Subsidiaries and associated companies are measured at cost in the statutory accounts. The investment is evaluated at acquisition cost less any impairment.

Impairment of such assets to fair value is done when a decrease in value cannot be considered to be temporary and is required pursuant to generally accepted accounting principles. Impairments are reversed when the basis for the impairment no longer applies.

Classification and valuation of statement of financial position items

Current assets and current liabilities include items due for payment within one year after the date of acquisition. Other items are classified as non current assets/noncurrent liabilities. Current assets are measured at the lower of cost and fair value. Current liabilities are recorded at their nominal values on the date of acquisition. Fixed assets are measured at acquisition cost less depreciation, but are written down when a decrease in value is not expected to be of temporary nature. Non-current liabilities are measured at nominal value at the date they are incurred.

Revenues

Revenues are recognised in the period when the services are rendered.

Hedges

Kongsberg Gruppen ASA enters into hedging contracts on behalf of subsidiaries and undertakes back-to-back agreements with external banks. See also note 10 Currency hedging, og note 20B Currency risk and currency hedging of the consolidated financial statement.

Receivables

Trade receivables and other receivables are capitalised at nominal values less provisions for expected loss. Provisions for bad debt are made on the basis of individual assessments of each receivable.

Foreign currency

Monetary items in a foreign currency are assessed using the exchange rate applicable at year-end. Gains and losses related to items in a foreign currency and that are part of the goods circulation are included in the operating profit/loss. Other gains and losses related to items in foreign currency are classified as financial income or costs.

Short-term investment

Short-term investments (shares and other items considered to be current assets) are measured at the lower of the acquisition cost and fair value at the date of the balance sheet. Dividends and other distributions from the companies are recognised as other financial income.

Pensions

The defined contribution scheme

Kongsberg Gruppen ASA has a defined contribution pension scheme for all the employees in the company. In addition, the company has a closed collective, unfunded contribution plan for salaries exceeding 12G. The contributions are expensed as incurred.

The defined benefit plan

Kongsberg Gruppen ASA has a closed defined pension plan for salaries exceeding 12G for a few employees. The calculation is based on a number of assumptions including discount rates, future salary adjustments and actuarial assumptions on mortality and voluntary retirement. See also Note 5 "Pensions" for further information.

Income tax

Income tax expense in the financial statements includes tax payable and the change in deferred tax for the period. Deferred tax/tax assets are calculated at 22 per cent on all temporary differences between the book value and tax value of assets and liabilities, and loss carried forward at the end of the reporting period. Taxable and deductible temporary differences that reverse or may reverse in the same period are offset. Deferred tax assets are recognised when it is probable that the company will have adequate profit for tax purposes in subsequent periods to utilise the tax asset.

Statement of cash flow

The cash flow statement was prepared using the indirect method. Cash and cash equivalents comprise bank deposits and other short-term liquid cash equivalents.

2 Equity reconciliation

MNOK	Shares capital	Premiums	Other equity	Total equity
Equity as of 31 December 2022	222	4,876	1,979	7,077
Earnings after tax	—	—	1,590	1,590
Capital decrease	(2)	—	(498)	(500)
Transactions with treasury shares	—	—	251	251
Dividend	—	—	(2,463)	(2,463)
Actuarial gain/loss pensions	—	—	24	24
Equity as of 31 December 2023	220	4,876	883	5,979
Earnings after tax	—	—	4,228	4,228
Capital decrease	—	—	—	—
Transactions with treasury shares	—	—	(2)	(2)
Dividend	—	—	(3,870)	(3,870)
Actuarial gain/loss pensions	—	—	(8)	(8)
Equity as of 31 December 2024	220	4,876	1,231	6,327

Other information about the company's share capital is provided in Note 22 Share capital of the consolidated financial statements.

The total number of treasury shares as of 31 December 2024 is 14,654.

3 Shares in subsidiaries

MNOK	Date of acquisition	Business office	Owner/voting share %	Carrying amount as of 31 Dec
Kongsberg Defence & Aerospace AS	1997	Kongsberg	100	1,206
Kongsberg Maritime AS	1992	Kongsberg	100	4,206
Kongsberg Eiendom Holding AS	2015	Kongsberg	100	497
Kongsberg Hungaria Kft1)	2003	Budapest	10	—
Kongsberg Digital Holding ASA	2021	Lysaker	83	699
Kongsberg Renewables Technologies AS	2022	Lysaker	100	57
Kongsberg Discovery AS 1)	2023	Horten	100	2,563
KMBM AS	2024	Kongsberg	100	—
Total				9,228

1) The remaining shares in Kongsberg Hungaria Kft. are owned by Kongsberg Defence & Aerospace AS.

4 Personnel expenses and auditor's fees

For information on salary and remuneration to the Executive Management and Board members please refer to Note 9 Personell expenses, remuneration to Executive Management and the Board in the consolidated financial statements and the "Remuneration report for Executive Management in KONGSBERG".

Personnel expenses

MNOK	2024	2023
Salaries	79	70
Social security expenses	14	11
Pension	12	14
Performance-based part of salary	29	30
Other benefits	28	26
Total personnel expenses	162	151

Auditor's fees

TNOK	2024	2023
Group auditor EY
Statutory audit	2,479	2,059
Other assurance services	3,641	349
Tax consultancy	2,929	1,264
Other non-audit services	—	461
Total fees, EY	9,049	4,133

1) Statutory audit fee for 2023 is adjusted to reflect the actual statutory audit fee for the 2023 financial statement and not the statutory audit fee that was invoiced in 2023.

5 Pensions

KONGSBERG has a service pension plan that consists of a defined contribution scheme and a closed defined benefit plan that is in compliance with laws and regulations. The service pension plans include all employees of the Group in Norway.

The defined contribution pension scheme

Kongsberg Gruppen ASA has a defined contribution pension scheme for all employees. The contribution rates are five per cent up to 7.1G and 11 per cent of salary between 7.1G and 12G. The company also has a collective, unfunded contribution plan for salaries exceeding 12G. This means that the money required for the pension payments are not paid to a pension fund, but the company is obliged to cover the pension payments from own funds when the payments are executed. The Group's deposits in this plan are 18 per cent of the portion of the base salary that exceeds 12G. The return reference is a savings profile with 50 per cent shares. KONGSBERG keeps track of the pension additions to the employees and the return together with our pension provider. Special terms and conditions apply for executives. This is described in the "Remuneration report for Executive Management in KONGSBERG". The contributions are expensed as incurred.

The defined benefit plan

The Group has a collective defined benefit pension plan for salaries exceeding 12G for a few employees. The defined pension plan is collective for all the members and they receive pension payments based on a common setup. The collective defined benefit plan corresponds to about 60 per cent of the share of the final salary that exceeds 12G until the age of 77, and then the benefit is reduced by 50 per cent for the remaining lifetime. Special terms and conditions apply for Executive Management and are described in the 'Remuneration report for Executive Management in KONGSBERG'.

Risk coverage

Disability pension from the Group will provide an addition to the estimated disability benefits from national insurance. National insurance will cover 66 per cent of the pension basis up to 6G, while the Group plan covers 66 per cent of the pension basis between 6G and 12G. The Group plan also provides an additional three per cent of the pension basis from 0G to 12G, a pay increase of 25 per cent of G and any child supplement of four per cent per child (maximum three children). The disability pension is a one-year risk cover and the premiums will be expensed as they accrue. The risk pensions are unfunded for the share of salary that exceeds 12G. In practice this implies that KONGSBERG is self-insurer for the risk pension for future periods.

Pension expenses for the year are calculated on the basis of the financial and actuarial assumptions that apply at the beginning of the year. Gross pension liabilities are based on the financial and actuarial assumptions made at year-end.

The year's pension expenses were calculated as follows:

MNOK	2024	2023
Expenses, defined benefit plans	5	7
Expenses, defined contribution scheme	7	7

Net pension liability appears as follows:

MNOK	2024	2023
Gross pension liabilities	197	182
Gross value of pension assets	—	—
Net pension liabilities	197	182
Social security expenses	26	25
Net carrying amount pension liabilities	223	207

6 Income tax

Income tax expense

MNOK	2024	2023
Tax payable (incl. witholding tax)	386	12
Change in deferred tax	13	17
Tax expense	399	29

Deferred tax and deferred tax asset

MNOK	2024	2023
Pensions	49	46
Tax losses carried forward	—	—
Other	1	(9)
Net carrying amount deferred tax asset	50	37
Tax rate in Norway	22%	22%

Change in deferred tax recognised directly in equity is as follows:

MNOK	2024	2023
Pensions	2	(7)
Other	24	13
Total	26	6

MNOK	2024	2023
Earnings before tax	4,627	1,620
Expected tax calculated at 22% of earnings before tax	1,018	356
Adjustment in respect of prior years	—	—
Group contribution without tax effect	(508)	(331)
Dividend	(141)	—
Withholding tax	—	1
Net permanent differences	30	3
Tax income-/expense	399	29

7 Long-term interest-bearing loans and credit facilities

As of 31 December 2024, Kongsberg Gruppen ASA had the following loans and credit facilities:

	31 Dec 24		31 Dec 23
MNOK	Due date	Nominal interest rate	Carrying amount 1)	Nominal interest rate	Carrying amount 1)
Long-term loans
Bond issue KOG09 - fixed interest rate	02.06.26	3.20%	1,000	3.20%	1,000
Bond issue KOG14 - floating interest rate	26.02.26	—	500	—	500
Bond issue KOG15 - fixed interest rate	31.05.30	—	1,000	—	1,000
Total long-term loans			2,500		2,500
Short-term loans:
Bond issue KOG13 - floating interest rate2)	06.06.24	—	—	—	500
Total short-term loans			—		500
Total interest-bearing loans			2,500		3,000

	2024		2023
MNOK	Due date	Nominal amount	Nominal amount
Syndicated credit facility (unutilised borrowing limit)3)	22.03.29	2,500	2,500
Overdraft facility (unutilised)		1,500	1,500

1) Value is equal to nominal amount. For long-term bond loans, the carrying amount is equal to the nominal amount. 2) The bond issue KOG13 was repaid during the year. 3) The credit facility was extended with one year during the year.

Kongsberg Gruppen ASA had three bond loans at the end of 2024. The bond loans were issued in Norwegian kroner and listed on the Oslo Stock Exhange. The interest rate terms on the loan with floating rates are 3M NIBOR with a margin of + 0.86 per cent for KOG14. The interest conditions for the loans with fixed interest are 3.2 per cent for KOG09 and 4.85 per cent for KOG15.

Kongberg Gruppen ASA has a syndicated credit facility with Danske Bank, DNB, JP Morgan, Nordea and SEB. The credit facility is for general corporate purposes, and has an applicable Termination Date 22 March 2029. The interest rate is 3M NIBOR + a margin that depends on the ratio between net interest-bearing loans/EBITDA and can vary from 0.5 per cent to 2 per cent. The credit facilities require that net net interest-bearing debt shall not exceed 4.75 times the EBITDA, but can be up to 5.25 times the figure for four quarters, of which three consecutive quarters at the most. The convenants in the loan agreement have been met. There were no borrowings on the facility as of 31 December 2024.

The Group holds an overdraft facility of MNOK 1,500. As of 31 December 2024, this remains unutilised.

All loans in the Group are primarily centralised to Kongsberg Gruppen ASA and handled by the Group's treasury unit.

8 Guarantees

Kongsberg Gruppen ASA has, in the period from 2005 to 2014, sold properties in the Kongsberg Teknologipark Park. The properties have been leased back on long-term lease and expire from 2024 to 2030. The leaseback contracts have been entered into by Kongsberg Næringsparkutvikling AS, which is a wholly-owned subsidiary of Kongsberg Eiendom Holding AS, which in its turn is owned 100 per cent by Kongsberg Gruppen ASA. The leaseback contracts are classified as operating leasing agreements.

In addition to lease payments, Kongsberg Gruppen ASA is responsible for certain expenses related to taxes and maintenance of the properties. With the exception of the properties sold in 2007 and 2014, the properties are mainly leased to external tenants. The leases have durations ranging from three months to 15 years. Kongsberg Næringsparkutvikling AS is responsible for these obligations, but Kongsberg Gruppen ASA guarantees that the obligations are observed. Further information on provisions related to these leases is given in Note 23 Provisions of the consolidated financial statements.

Prepayment and completion guarantees

Group companies have provided guarantees for prepayments and completion related to customer contracts. The guarantees are issued by Norwegian and foreign banks and insurance companies and Kongsberg Gruppen ASA (parent company guarantees). Kongsberg Gruppen ASA is responsible for all guarantees.

MNOK	31 Dec 24	31 Dec 23
Guarantees issued by banks and insurance companies	10,758	8,217
Guarantees issued by Kongsberg Gruppen ASA (parent company)	26,181	13,332
Prepayments from and completion guarantees to customers	36,939	21,549

Kongsberg Gruppen ASA has non-committed framework agreements for guarantees with banks and insurance companies.

9 Related parties

Operating revenues

MNOK	2024	2023
Kongsberg Maritime AS	107	129
Kongsberg Defence & Aerospace AS	107	102
Kongsberg Digital AS	3	4
Kongsberg Eiendom Holding AS	3	—
Kongsberg Discovery AS	20	—
Other Group companies	1	1
Total operating revenues - related parties	242	236

Operating revenues from related parties mainly comprises corporate charge and guarantees.

Interest-bearing loans to group companies

MNOK	31 Dec 24	31 Dec 23
Kongsberg Teknologipark AS	50	50
Kongsberg Næringseiendom AS	144	100
Kongsberg Næringsparkutvikling AS	97	—
Kongsberg Næringsbygg 2 AS	54	54
Kongsberg Næringsbygg 5 AS	253	96
Kongsberg Næringsbygg 6 AS	—	62
Kongsberg Næringsbygg 11 AS	153	153
Kongsberg Næringsbygg 12 AS	102	102
Kongsberg Næringsbygg 13 AS	7	19
Kongsberg Næringsbygg 15 AS	53	81
Kongsberg Næringsbygg 16 AS	280	280
Kongsberg Norcontrol Pte. Ltd.	8	8
Kongsberg Maritime do Brasil LTDA	26	24
Kongsberg Maritime India Private Ltd.	—	3
Navis Consult d.o.o	—	27
Kongsberg Maritime Finland OY	824	783
Kongsberg Maritime Inc.	55	105
Kongsberg Maritime Germany GmbH	29	28
Kongsberg Maritime Sweden AB	88	86
Kongsberg Maritime Turkey	—	2
Kongsberg Maritime France SARL	2	2
Kongsberg NanoAvionics UAB	—	151
Kongsberg Digital Holding ASA	50	—
Other companies	1	—
Total	2,276	2,216

Current receivables from group companies

MNOK	2024	2023
Kongsberg Maritime AS	1,522	34
Kongsberg Defence & Aerospace AS	820	1,784
Kongsberg Discovery Canada Ltd	1	—
Kongsberg Maritime Ltd (Canada)	1	—
Kongsberg Maritime Sweden AB	1	1
Kongsberg Digital AS	5	1
Kongsberg Defence Systems AS	1,919	—
Kongsberg Discovery AS	16	1
Kongsberg Renewables Technologies AS	17	—
Kongsberg Maritime Finland OY	9	10
Kongsberg Næringsbygg 11 AS	3	3
Kongsberg Næringsbygg 12 AS	2	2
Kongsberg Næringsbygg 15 AS	1	1
Kongsberg Næringsbygg 16 AS	5	5
Kongsberg Næringsbygg 2 AS	1	—
Kongsberg Næringsbygg 5 AS	3	2
Kongsberg Næringseiendom AS	2	2
Kongsberg Teknologipark AS	1	—
Kongsberg Næringsparkutvikling AS	2	—
Kongsberg Maritime Inc.	2	3
Kongsberg NanoAvionics UAB	3	3
Other companies	10	39
Subsidiaries draft cash pool	602	2,020
Total	4,947	3,911

Current liabilities to group companies

MNOK	2024	2023
Kongsberg Defence & Aerospace AS	40	8
Kongsberg Maritime AS	34	6
Kongsberg Discovery AS	21	—
Kongsberg Teknologipark AS	2	2
Other companies	2	—
Subsidiaries deposits cash pool	16,619	8,303
Total	16,718	8,319

10 Currency hedging

As of 31 December, the company had the following net sale of foreign currency hedges, divided by hedge category:

	2024					2023
Amounts in millions	Value in NOK based on agreed rates 31 Dec 24	Fair value in NOK 31 Dec 24	Total hedged amount i USD 31 Dec 24	Average hedged rate in USD 31 Dec 24	Total hedged amount in EUR 31 Dec 24	Average hedged rate in EUR 31 Dec 24	Total hedged amount in GBP 31 Dec 24	Average hedged rate in GBP 31 Dec 24	Value in NOK based on agreed rates 31 Dec 23	Fair value in NOK 31 Dec 23	Total hedged amount i USD 31 Dec 23	Average hedged rate in USD 31 Dec 23	Total hedged amount in EUR 31 Dec 23	Average hedged rate in EUR 31 Dec 23	Total hedged amount in GBP 31 Dec 23	Average hedged rate in GBP 31 Dec 23
Hedge Category
Forward exchange contracts, cash flow hedges	(234)	(250)	32	2.9	(15)	11.7	(8)	—	1,145	(286)	111	6.8	34	12.1	—	—
Forward exchange contracts, fair value hedges	22,381	(1,397)	1,241	10.4	873	11.7	(64)	14.1	24,928	316	1,093	10.3	1,054	11.5	72	12.9
Total	22,147	(1,647)	1,274		858		(71)		26,073	30	1,204		1,088		72

Fair value is referring to the net present value of the variance between the forward rate at 31 December 2024 and the forward rate at the time of entering the forward exchange contract. Values in the table related to value in NOK on agreed rates and fair value in NOK also include other currencies.

Currency options

As of 31 December 2024, Kongsberg Gruppen ASA had no currency options.

Cross-currency swaps

Subsequent to the acquisition of shares in Patria Oyj in 2016 (MEUR 284.9), crosscurrency swaps were entered in order to partially hedge net investment in foreign entity. The net investment in Patria is hedged with a cross-currency swap of MEUR 164. As of 31 December 2024 the cross-currency swaps had a fair value of MNOK -68 (MNOK -105 per 31 December 2023). Fair value changes have not been included in Kongsberg Gruppen ASA's statement in accordance with Norwegian GAAP, but the roll forward effect is recognised in the statement of financial position.

Currency transactions, related parties

Subsidiary

		2023
Amounts in millions	Value in NOK based on agreed rates 31 Dec 24	Fair value in NOK 31 Dec 24	Total hedged amount i USD 31 Dec 24	Total hedged amount in EUR 31 Dec 24	Total hedged amount in GBP 31 Dec 24	Value in NOK based on agreed rates 31 Dec 23	Fair value in NOK 31 Dec 23	Total hedged amount in USD 31 Dec 23	Total hedged amount in EUR 31 Dec 23	Total hedged amount in GBP 31 Dec 23
Forward exchange contracts, cash flow hedges
Kongsberg Defence & Aerospace	(234)	(250)	32	(15)	(8)	1,145	(286)	111	34	—
Total cash flow hedges	(234)	(250)	32	(15)	(8)	1,145	(286)	111	34	—
Forward exchange contracts, fair value hedges
Kongsberg Maritime AS	6,249	(290)	384	202	1	5,907	112	339	231	2
Kongsberg Digital AS	766	(41)	44	15	3	897	11	58	15	4
Kongsberg Defence & Aerospace AS	12,345	(1,004)	620	582	(67)	13,961	88	543	607	58
Kongsberg Discovery AS	2,102	(80)	108	77	2	2,400	54	140	71	9
(No internal counterparty)	919	17	86	(4)	(3)	1,762	51	13	131	1
Total fair value hedges	22,381	(1,397)	1,241	873	(64)	24,928	316	1,093	1,054	72
Total	22,147	(1,647)	1,274	858	(71)	26,073	30	1,204	1,088	72

Associated company

		2024			2023
MNOK	Value in NOK based on agreed rates 31 Dec 24	Fair value in NOK 31 Dec 24	Total hedged amount i USD 31 Dec 24	Total hedged amount in EUR 31 Dec 24	Value in NOK based on agreed rates 31 Dec 23	Fair value in NOK 31 Dec 23	Total hedged amount in USD 31 Dec 23	Total hedged amount in EUR 31 Dec 23
Forward exchange contracts, fair value hedges
Kongsberg Satellite Services	2,043	(150)	159	29	2,698	11	212	47

11 Cash and cash equivalents

MNOK	Note	31 Dec 24	31 Dec 23
Net deposit cash pool		2,559	2,406
Deposits outside cash pool		5,713	2,108
Liquidity fund		5,068	—
Total		13,340	4,514
Specifications on net deposit cash pool
Subsidiaries deposit cash pool	9	16,619	8,303
Parent's deposit cash pool		—	—
Subsidiaries draft cash pool	9	(602)	(2,020)
Parent's draft cash pool		(13,458)	(3,877)
Net deposit cash pool		2,559	2,406

Bank guarantees amounting to MNOK 15 have been furnished for funds related to withholding tax for employees.

The Group's liquidity management is centralised in Kongsberg Gruppen ASA and handled by the treasury department.

Kongsberg Gruppen ASA has cash pools with Danske Bank and JP Morgan in which several of the subsidiaries are included. Net deposits cash pool, represent total net deposits in the cash pools for all companies included in the cash pools. Total deposit on the cash pools for the parent company in 2024 is MNOK 13,458 compared to total draft 2023 MNOK 3,877.

Financial Statements / Statement from the Board and the CEO

Statement from the Board and the CEO

The Board of Directors and the CEO have today considered and approved the integrated report for Kongsberg Gruppen ASA ("Company") and KONGSBERG ("Group") for the 2024 calendar year and as of 31 December 2024.

The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards and related interpretations as adopted by EU as well as additional information requirements as per the Norwegian Accounting Act. The financial statements for the Company have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting practice in Norway.

We confirm to the best of our knowledge that:

• The financial statements for the period 1 January 2024 to 31 December 2024 for the Group and the Company have been prepared in accordance with applicable accounting standards
• The information in the financial statements gives a true and fair view of the Company's and the Group's assets, liabilities, financial position and result as a whole.
• The Directors' Report that consist of chapter 2 and 3 in the Annual Report 2024 gives a true and fair view of the development, performance and financial position of the Company and the Group, including a description of the principal risks and uncertainty factors facing the Company and the Group.
• The Directors' Report, chapter 3 in the Annual Report has been prepared in accordance with applicable standards for sustainability reporting pursuant to Section 2-3 of the Norwegian Accounting Act and Article 8 (4) in the EU Taxonomy Regulation.

Kongsberg, 19 March 2025

Eivind Reiten	Per A. Sørlie	Merete Hverven	Morten Henriksen	Kristin Færøvik	Rune Fanøy	Oda Ellingsen	Kjersti Rød	Geir Håøy
Chairman of the Board	Deputy of the Board	Member of the Board	Member of the Board	Member of the Board	Member of the Board	Member of the Board	Member of the Board	President and CEO

Financial Statements / Auditor's Report 2024

Auditor's Report 2024

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Year 2024 About KONGSBERG Sustainability Statment Financial Statements Appendix KONGSBERG • Annual Report 2024 194

Appendix ¹⁹⁵ ESRS Disclosure requirements

199 Auditor's Assurance Report Sustainability

200 Financial Calendar / Contact Details

Appendix / ESRS Disclosure Requirements

ESRS Disclosure Requirements

Standard	Disclosure requirement	Page	Standard	Disclosure requirement	Page	Standard	Disclosure requirement	Page
ESRS 2 General	BP-1	41	E5 Resource use and	E5 IRO-1	50	S2 Workers in the value	S2 SBM-2	48
disclosures	BP-2	41	circular economy	E5-1	72		S2 SBM-3	95
	GOV-1	42		E5-2	72		S2-1	96
	GOV-2	43		E5-3	72		S2-2	96
	GOV-3	43		E5-4	73		S2.3	96
	GOV-4	44		R5-5	74		S2-4	97
	GOV-5	44		E5-6	Phase-in		S2-5	97
	SBM-11	8, 45, 47, 86 and 99	S1 Own workforce	S1 SBM-2	48	S3 Affected	S3 SBM-2	48
	SBM-2	48		S1 SBM-3	85 and 92		S3 SBM-3	98
	SBM-3	48 - 49		S1-1	87 and 93	chain communities S3-1 99 S3-2 99 S3-3 99 S3-4 99 S3-5 99 G1 Business Conduct G1 GOV-1 43 G1 IRO-1 50 G1-1 101 G1-2 104 G1-3 102 G1-4 102 G1-5 103 G1-6 104 Comment: 1 Parts of the disclosure requirement refer to disclosures outside the Sustainability statement.
	IRO-1	50		S1-2	87 and 93
	IRO-21	195		S1-3	88 and 93
E1 Climate change	E1 GOV-3	43		S1-4	88 and 93
	E1-1	58		S1-6	86
	E1 SBM-3	49 and 69		S1-7	86
	E1 IRO-1	50		S1-8	90
	E1-2	57		S1-9	90
	E1-3	60		S1-10	90
	E1-4	58		S1-11	Phase-in
	E1-5	64		S1-13	90
	E1-6	64		S1-14	94
	E1-7	67		S1-15	Phase-in
	E1-8	67		S1-16	90
	E1-9	69		S1-17	93 and 102

Appendix / ESRS Disclosure Requirements

Datapoints That Derive from Other EU Legislation

Disclosure requirement	Datapoint		SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference Page
ESRS 2 GOV-1	21 (d)	Board's gender diversity	X		X		42
ESRS 2 GOV-1	21 (e)	Percentage of Board Members who are independent			X		42
ESRS 2 GOV-4	30	Statement on due diligence paragraph	X				44
ESRS 2 SBM-1	40 (d) i	Involvement in activities related to fossil fuel activities	X	X	X		Not relevant
ESRS 2 SBM-1	40 (d) ii	Involvement in activities related to fossil fuel activities	X		X		Not relevant
ESRS 2 SBM-1	40 (d) iii	Involvement in activities related to fossil fuel activities	X		X		99
ESRS 2 SBM-1	40 (d) iv	Involvement in activities related to fossil fuel activities			X		Not relevant
ESRS E1-1	14	Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II				X	58
ESRS E1-1	16 (g)	Undertakings excluded from Paris-aligned Benchmarks		X	X		58
ESRS E1-4	34	GHG emission reduction targets	X	X	X		58
ESRS E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	X				64
ESRS E1-5	37	Energy consumption and mix	X				64
ESRS E1-5	40-43	Energy intensity associated with activities in high climate impact sectors paragraphs	X				64
ESRS E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	X	X	X		64
ESRS E1-6	53-55	Gross GHG emissions intensity	X	X	X		64
ESRS E1-7	56	GHG removals and carbon credits				X	66 and 67
ESRS E1-9	66	Exposure of the benchmark portfolio to climate-related physical risks			X		69
ESRS E1-9		66 (a), 66 (c) Disaggregation of monetary amounts by acute and chronic physical risk, Location of significant assets at material physical risk		X			69
ESRS E1-9	67 (c)	Breakdown of the carrying value of its real estate assets by energy-efficiency classes		X			Phase-in
ESRS E1-9	69	Degree of exposure of the portfolio to climate- related opportunities			X		69
ESRS E2-4	28	Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil	X				Not material
ESRS E3-1	9	Water and marine resources	X				Not material
ESRS E3-1	13	Dedicated policy	X				Not material
ESRS E3-1	14	Sustainable oceans and seas	X				Not material
ESRS E3-4	28 (c)	Total water recycled and reused	X				Not material
ESRS E3-4	29	Total water consumption in m 3 per net revenue on own operations	X				Not material
ESRS 2 SBM3 - E4	16 (a)		X				Not material
ESRS 2 SBM3 - E4	16 (b)		X				Not material
ESRS 2 SBM3 - E4	16 (c)		X				Not material

Appendix / ESRS Disclosure Requirements

Disclosure requirement	Datapoint		SFDR reference	Pillar 3 reference	Benchmark regulation reference	EU Climate Law reference Page
ESRS E4-2	24 (c)	Indicator number 14 Table #2 of Annex 1	X				Not material
ESRS E4-2	24 (d)	Policies to address deforestation	X				Not material
ESRS E5-5	37 (d)	ESRS E4-2	X				75
ESRS E5-5	39	Hazardous waste and radioactive waste	X				75
ESRS 2 SBM3 - S1	14 (f)	Risk of incidents of forced labour	X				95
ESRS 2 SBM3 - S1	14 (g)	Risk of incidents of child labour	X				95
ESRS S1-1	20	Human rights policy commitments	X				Not material
ESRS S1-1	21	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8			X		Not material
ESRS S1-1	22	Processes and measures for preventing trafficking in human beings	X				Not material
ESRS S1-1	23	Workplace accident prevention policy or management system	X				93
ESRS S1-3	32 (c)	Grievance/complaints handling mechanisms	X				102
ESRS S1-14		88 (b), 88 (c) Number of fatalities and number and rate of work-related accidents	X		X		94
ESRS S1-14	88 (e)	Number of days lost to injuries, accidents, fatalities or illness	X				94
ESRS S1-16	97 (a)	Unadjusted gender pay gap	X		X		90
ESRS S1-16	97 (b)	Excessive CEO pay ratio	X				90
ESRS S1-17	103 (a)	Incidents of discrimination	X				102
ESRS S1-17	104 (a)	Non-respect of UNGPs on Business and Human Rights and OECD Guidelines	X		X		102
ESRS 2 SBM3 - S2	11 (b)	Significant risk of child labour or forced labour in the value chain	X				95
ESRS S2-1	17	Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1	X				96
ESRS S2-1	18	Policies related to value chain workers	X				96
ESRS S2-1	19	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	X		X		102
ESRS S2-1	19	Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8			X		96
ESRS S2-4	36	Human rights issues and incidents connected to its upstream and downstream value chain	X				96
ESRS S3-1	16	Human rights policy commitments	X				99
ESRS S3-1	17	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	X		X		102
ESRS S3-4	36	Human rights issues and incidents	X				102
ESRS S4-1	16	Policies related to consumers and end-users	X				Not material
ESRS S4-1	17	Non-respect of UNGPs on Business and Human Rights and OECD guidelines	X		X		Not material
ESRS S4-4	35		X				Not material
ESRS G1-1	10 (b)	United Nations Convention against Corruption	X				101
ESRS G1-1	10 (d)	Protection of whistleblowers	X				102
ESRS G1-4	24 (a)	Fines for violation of anti-corruption and anti-bribery laws	X		X		102
ESRS G1-4	24 (b)	Standards of anti- corruption and anti- bribery	X				101

Appendix / Auditor's Assurance Report Sustainability

Auditor's Assurance Report Sustainability

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Appendix / Financial Calendar / Contact Details

Financial Calendar

Contact Details

Kongsberg Gruppen ASA Street adress: Kirkegårdsveien 45, 3616 Kongsberg	Mailing adress: P.O. Box 1000, N-3601 Kongsberg Phone: +47 32 28 82 00	E-mail: office@kongsberg.com Org. nr. 943 753 709
Jan Erik Hoff	Ronny Lie
Group Vice President Investor Relations & Sustainability	Chief Communication Officer
Kongsberg Gruppen ASA	Kongsberg Gruppen ASA
Phone: +47 991 11 916	Phone: +47 916 10 798
E-mail: jan.erik.hoff@kongsberg.com	E-mail: ronny.lie@kongsberg.com

Annual general meetings

The ordinary Annual General Meeting will be held on Thursday 8 May 2025.

Presentation of quarterly results Q1: 8 May 2025

Q2: 9 July 2025

Q3: 30 October 2025

Ticker code: KOG (Oslo Stock Exchange)

Publication to stock exchange

Release date for Annual Report and Sustainability Report 2024, 25 March 2025.

Design: Mission AS

Photo: Höeg Autoliners, p. 24 Håkon Mosvold Larsen / NTB, p. 30 Kongsberg Discovery_CCOM UNH, p. 34-35 Yara, p. 39

Appendix / Financial Calendar / Contact Details

In the event of any discrepancy between the Norwegian and English versions of KONGSBERG's Annual Report 2024, the Norwegian version is the authoritative one.

Year 2024 About KONGSBERG Sustainability Statment Financial Statements Appendix KONGSBERG • Annual Report 2024 201

Year 2024 About KONGSBERG Sustainability Statment Financial Statements Appendix KONGSBERG • Annual Report 2024 202

Appendix / Financial Calendar / Contact Details