Kongsberg Gruppen

Investor Presentation • Oct 26, 2018

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

Hege Skryseth President Kongsberg Digital

KONGSBERG DIGITAL

26/10/2018

Dynamic Digital Twins

Renewables & Utilities Maritime Simulations Maritime Eco-system

Kongsberg Digital

Digital transformation with deep domain- and digital competencies

Digital Twin Definition

Our dynamic Digital Twin solution is defined by its three intertwined dimensions…

…powering feature packs that are easily available through any web browser or app on your preferred device

Overview	Enable operators to perform What-If analysis before performing an operation. Answers the questions: What happens if I do this? What are the outcomes of various combinations of set points and parameters? Utilizes the power of the "predicted state" dimension in the Digital Twin, giving operators an easy way to dynamically spin up one or multiple instances of On Demand models to perform What-If analysis. Drive safe operations, reduce risk by letting the operator evaluate outcomes before taking actions in an operations and maintenance context, and it is valuable when working with production optimization.
Functionality	. Easy access through your Web browser or App on your preferred device • Utilize the Predicted State dimension of the Digital Twin, and the model engine with auto-launching of On Demand models . Spin up one or multiple instances of On Demand models to perform What-If
Value	• Safe Operations: Reduce risk by letting the operator evaluate outcomes before taking actions • Production Optimization: Let operators analyze various scenarios before taking production optimization measures • O&M Cost Reduction: • Carbon Footprint:

Feature Pack examples

Example 1

Example 3

Example 2

Example 4

Digital Twin Transforming workflows

What	When
Installation	2015
Regular maintanance	2016
Emergency maintanance	2017

Digital Twin

Transforming workflows

DIGITAL TWINS UNLOCK SIGNIFICANT VALUE FOR OPERATORS ACROSS THE VALUE CHAIN - EXAMPLES

Upstream value chain

Digital Twins and remote operations of unmanned facilities

Digital Twin-film

Thank you

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

President & Group EVP Eirik Lie

26/10/2018

Kongsberg Defence & Aerospace

KONGSBERG DEFENCE & AEROSPACE

KEY FIGURES

33 offices in 17 countries 2,600 employees Revenues LTM 6.5 BNOK Order backlog 10.5 BNOK International success in selected niches

INTEGRATED AEROSTRUCTURES DEFENCE SYSTEMS System: Land, Sea, Air

MISSILE SYSTEMS DEFENCE

COMMUNICATIONS

SPACE & SURVEILLANCE

PROTECH SYSTEMS PATRIA

INCREASE MARKET PENETRATION WITH A MODERN PRODUCT PORTFOLIO

STEADY GROWING BASE

Strong Base Large programs

SECURED POSITIONS FOR FUTURE GROWTH

PARTNERING WITK tkMS TO PROVIDE SUBMARINE COMBAT SYSTEM

• Exclusive supplier of Submarine Combat Systems for all future tkMS

• Joint Venture Company established between KDA, tkMS and Atlas Elektronik; kta naval systems

• Providing Next Generation Combat Systems technology for the next

NSM SELECTED BY BOTH US NAVY AND GERMAN NAVY

US NAVY has contracted NSM for Littoral Combat Ships and Future Frigates

German NAVY has selected NSM for its Harpoon replacement

Major vehicle program in Qatar

• Program announced 13 March 2018
• KONGSBERG selected to supply medium calibre turrets, remote weapon stations and other essential parts of the program
• Ongoing negotiations
• Total scope still to be defined, BNOK 15 estimated potential
• Upside of up to BNOK 5 announced on Q2 2018 depending on ongoing scope- and price negotiations

Air defence program – NASAMS to Qatar

• Raytheon has announced MoU for a major NASAMS system
• KONGSBERG is exclusive partner on the NASAMS system
• Potential of USD 2 Billions on total program according to Raytheon
• Typical KONGSBERG scope 30-40%

QATAR MAJOR OPORTUNITIES WITHIN SEVERAL FIELDS

• Offered and Supported as standard F-35 weapon
• The only long range precision strike missile being integrated
• On track with missile development and flight testing
• Significant market potential with an increasing base of F-35

JSM – THE ONLY LONG RANGE PRECISION STRIKE MISSILE BEING INTEGRATED ON F-35

• 20 years Teaming Agreement with Raytheon

• NASAMS is the most sold Air Defence system in NATO

• NASAMS deployed in Washington DC since 2005

• NASAMS is unique with its network architecture, high firepower and

• Increased demand for this fundamental defence capability

• Selected as Mobile Ground Based Air Defence System for

TEAMING AGREEMENT WITH RAYTHEON AIR DEFENCE HAS GENERATED SOLID REVENUES OVER DECADES

Strong Base Large programs

SECURED POSITIONS FOR FUTURE GROWTH

Thank you

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

EGIL HAUGSDAL PRESIDENT, KONGSBERG MARITIME

KONGSBERG MARITIME

26/10/2018

Shaping the maritime future

An ocean of opportunities KONGSBERG MARITIME

World-wide operations

More than 3,700 employees

Revenues LTM 7.4 BNOK

Order backlog 6.0 BNOK

Installed base more than 18,000 vessels

Offshore, Merchant Marine, Subsea and Emerging Business

Dynamic positioning, navigation, automation, engineering, subsea and seismic instrumentation, marine robotics, sustainable fisheries, handling and energy solutions

We are navigating through extreme conditions…

…margins gradually more influenced by single-contract-impact

Adapting, Delivering & Positioning

Positioning for future markets

Delivering operational excellence

Adapting to changing markets

Geographical – Norway & China

Young fleet the forcast is down 42% in 2017 - 2021 Geographical –Asia TANKERS RESEARCH New-build activity expanded to incl. global market South Africa, USA, Taiwan, China Fishery Largely localized market and traditional in technology development; Geographical – Europe FISHERY Driven with leased FPSO and Oil major production units Geographical – Europe, Brazil, West Africa & Asia OPU Research Bulk Crude Tankers OPU Offshore LNGC Aquaculture New market segment for offshore fishfarms AQUACULTURE Seaborne trade of general cargo is expected to pick up in the years ahead. Geographical –Asia CONTAINER Dry bulk seaborne trade forecast to 3.4% annually in the next 10 years. Geographical –Asia BULK bunkers) OFFSHORE & SPECIAL VESSELS FLNG FSRU The container vessels are going from big vessels to ultra-big vessels combined with smaller container feeders Geographical –Asia CONTAINER Container Product Tankers Chem Tankers MARO Global market for marine robotics has grown steadily over the past years, both in the naval, as well as in the commercial survey segment Geographical – Global MARO NAVAL Extended COTS and MODS offering will open up new potential in growing market segment Geographical – Norway, Europe, USA NAVAL

stream (LNGC) & down stream (FSRU – LNG Small Scale Geographical – Asia & Middle East

The oil price has picked up which gradually gets improved business conditions. Market is in general affected by the over-contracting which took place the last 5-10 years for OSV (AHTS and PSV's) and Jack-Up and Floating Drilling Units; De-commissioning and heavy lifts are currently active; Geographical – Asia

Targeting opportunities in cyclic industries

A perfect fit

KONGSBERG + Rolls-Royce Commercial Marine

Thank you