Kongsberg Gruppen

Earnings Release • Oct 26, 2018

INVESTOR PRESENTATION 3rd quarter 2018

26/10/2018

Geir Håøy, President & CEO Gyrid Skalleberg Ingerø, CFO

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Highlights Q3

Unanimous support on rights issue from Norwegian Parliament

Solid order intake in KM, book/bill 1.68

Continued solid operations in KDA, CROWS-deliveries secured for another five years

YTD 2018

Solid order intake, both in KM and KDA

Increased profitability

Somewhat lower revenues

REVENUES Q3

Q3 revenues down 3.8 %

• KM revenues down 0.9 % YoY
• KDA revenues down 7.9 % YoY

EBITDA Q3

• Improved underlying margin
• ‐ MNOK 25 integration costs in Q3 2018
  • ‐ MNOK 90 restructuring costs in Q3 2017
• High utilization in KM's lifecycle business
• Continued solid margin in KDA

NEW ORDERS Q3

• KM book/bill 1.68
• Three major orders, totaling approx. MNOK 650 in addition to continued good ordering from the traditional merchant segments, and within marine robotics and fishery
• KDA book/bill 1.08
• First order, valued at MUSD 74, signed under new CROWS framework agreement

4477

New orders by division

YTD 2018 – Kongsberg Defence & Aerospace

*Other includes Defence Communications, Integrated Defence Systems and Space & Surveillance

New orders by Division

2018 – Kongsberg Maritime

*Global Customer Support does not include Subsea aftermarket

** Subsea also includes Subsea aftermarket

Strong balance sheet

	Q3 2018	Q2 2018	2017
Gross interest bearing debt	3 326	3 337	3 340
Cash and short-term deposits	2 990	2 630	2 956
Net interest bearing debt	336	707	384
Equity ratio	35.5 %	35.1 %	35.6 %
ROACE	10.8 %	9.4 %	9.1 %

Debt position Healthy maturity profile

BONDS - MATURITY PROFILE

Kongsberg Maritime

KM

Good order intake, stable revenues and improved margins

• Several orders on larger integrated solutions
• Awilco
• Grimaldi
• Offshore Heavy Transport
• Continued good order intake from traditional merchant such as bulk, container and LNG-vessels
• Subsea segments such as fishery and marine robotics continue to deliver
• Continued high utilization within global customer support

Kongsberg Defence & Aerospace

KDA

Solid margins and next five years of CROWS deliveries secured

• Next five years of deliveries to the CROWS-program secured
• MUSD 498 Framework agreement
  • First contracted signed, valued at MUSD 74
• Delivered 12.500 RWS under CROWS so far
  • More than 15.000 RWS when including Stryker
• Negotiations on Qatar programs progressing as expected

Kongsberg Digital & Patria

KDI

• High development activity in initiatives such as Kognifai and digital twin
• Improved order intake in Q3
• MSGD 21 contract within Maritime Simulation to deliver Tactical Boat Handling and Firing Simlulator to Singapore Police Coast Guard

Patria

• MEUR 93 revenues
• 6.9 % increase from Q3 2017
• Continued low activity and declining backlog for Land business (vehicles)
• Good development within systems and maintenance areas
• MEUR 10 EBITDA, down from MEUR 11 in Q3 2017
• Relates to volume decline in Land business

Questions?

www.kongsberg.com

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