Kongsberg Gruppen

Investor Presentation • Sep 24, 2019

KONGSBERG MARITIME

24/09/2019

Egil Haugsdal President Kongsberg Maritime

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this legend. © 2019 KONGSBERG – All rights reserved.

DISCLAIMER

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

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

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

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

KEY TAKEAWAYS

We are a frontrunner on sustainable technology development

KONGSBERG MARITIME

Systems on 30,000+ vessels

BNOK 17+ Revenues

	=(27)

117 offices in 34 countries

	I
FININGLE

Experience 80+ years

KONGSBERG MARITIME

Business units

INTEGRATED SOLUTIONS GLOBAL CUSTOMER SUPPORT

PROPULSION & ENGINES SYSTEMS & DECK MACHINERY SENSORS & ROBOTICS

THE AUTONOMY OF DEPTH GLOBAL NO. 1

FURTHER GROWTH OPPORTUNITIES

▪ US NAVY UNDERWATER ▪ EUROPE UNDERWATER ‐ CIVIL AND DEFENCE

WE ARE USED TO NAVIGATING IN CYCLICAL MARKETS

AGENDA

MY GARAGE!

OUR TECHNOLOGY DEVELOPEMENT DRIVES GROWTH

KM IS A TECHNOLOGY COMPANY

THE OCEAN INDUSTRY IS CHANGING

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

THE DRIVE FOR SUSTAINABLE DEVELOPMENT

LIFE CYCLE EMISSIONS

Well to wake – GHG emissions

CO2eq emissions [g/MJ]

WELL TO TANK TANK TO WAKE Source: EU Joint research centre

MARINE FUELS

Today and in a near future

WORLD CLASS WORLD CLASS ––Through Through people people, technology and dedication , technology and dedication KONGSBERG PROPRIETARY KONGSBERG PROPRIETARY -- See Statement of Proprietary information See Statement of Proprietary information 15

WORKING WITH KONGSBERG

Market leader within automation and control systems

Extensive industry experience delivering Information Management Solutions

Open digital ecosystem with a broad range of 3rd party services

24/7 support and a global service network of maritime experts

AGENDA

THE MARKET: GROWTH 2005-2014, DROP 2015-2019

15-19

Combined installed base of over 30 000 vessels across relevant market segments COMBINED INSTALLED BASE OF OVER 30 000 VESSELS ACROSS RELEVANT MARKET SEGMENTS

MERCHANT

IMO 2020

OFFSHORE MARKET

AFTER MARKET

AGENDA

KM ROADMAP GOING FORWARD

Best long term strategy is to secure short term profitability

AGENDA

KM + RRCM = A GLOBAL LEADER – FROM BRIDGE TO PROPELLER

▪ Allowing for seamlessly integrated solutions throughout the vessel ▪ A strategic partner for improving efficiency and operational capabilities of the vessels ▪ A strong global sales- and service network across 34 countries AUTOMATION DYNAMIC POSITIONING Propulsion/Thruster /Steering Controls CM «CAF/ACON» KM «PCK/700» KM «C20/600» CM ICON KM K-POS CM MCON CM Helicon CM Aquapilot SW PLATFORMS CM CAF KM PCK/AIM KM C20/600 INTEGRATION ON TRACK!

▪ A broad range of complementary World Class maritime products

▪ Global reach, local presence – wherever the customers are ▪ Servicing a combined installed base of approximately 30,000 vessels COMPACT DP CM Canman - Lots of potential

NAVIGATION

CM 3rd party KM K-BRIDGE

CM Unified Bridge KM K-MASTER

• Combining the best of the maritime industry's leading engineering capabilities CM Poscon KM C-POS KM C-Joy/C-Wing KM Autochief KM K-Thrust 720 KM K-Thrust 600 CM CCP KM PCK/AIM KM C20/600 - No large surprises after closing
• Industry leadership in today's as well as future technologies such as digitalization, remote operations and autonomy INTEGRATED BRIDGE SYSTEMS KM K-Steering KM K-Thrust RCS ADVANCED MANEUVERING CM HANDLING CONTROLS CM CAF CM SIEMENS KM 700/600 - Several areas with extra attention

CM ROCCS

CM Steering cntrl

▪ Complementarity enables scale ▪ Scale allows for more efficient operations KM - Effects starting to materialize

▪ An even more robust and competitive organization

HW PLATFORMS

VALUE CAPTURE

Broad range of measures initiated since Closing

	Footprint & delivery streamlining	SG&A savings and synergies	Product portfolio optimization
Activities:	• Restructuring of the loss-making Deck Machinery and Ship Design units • Co-location of overlapping global footprint, ~20 sites • Move non-core production activities to supply chain • Consolidation of delivery organizations • Direct procurement scale savings	• Leverage scale within sales, support and administrative functions • Cost-efficient set-up of group support functions • Harmonize terms and benefits • Indirect procurement scale savings • IT infrastructure synergies	• Joint plan for digital marine development: Streamlining of overlapping efforts and prioritization of activities to market needs • Consolidation of overlapping product portfolios - especially within automation • Optimize product portfolio to meet future market needs
Planned annual run-rate savings:	~225 MNOK	~225 MNOK	~50 MNOK

VALUE CAPTURE

Program progressing according to plan, additional measures identified

Status on program execution

• Realized savings YTD August of ~130 MNOK, well on track for ~200 MNOK effect realization for 2019 FY
• Process concluded for ~180 FTEs out of the announced reduction of 260
  • Joint plan for digital marine development implemented
• Restructuring of Deck Machinery and Ship Design progressing well
• 12 sites co-located to date
• Significant realized savings through more cost efficient set-up of group support functions

Additional measures

• Continuous work to identify and initiate additional measures
• Close-down of Gdansk site: Non-core production activity to be moved to supply chain
• Further headcount reduction of 180-200 FTEs, due to additional identified synergies and streamlining potential
  • Deck Machinery and Ship Design restructuring
  • Gdansk close-down
  • Optimization of global service network
• Strong comfort for realization of 2022 costsaving target

INTEGRATION ON PLAN

• Strong order intake despite challenging markets
• CM delivered in Q2 EBITDA MNOK 22, excl. integration and restructuring
• Synergy and cost programs on plan
• Deck Machinery and Ship Design challenging, restructuring program initiated
• Product portfolio harmonization
• Creating shareholder value

MARITIME INDUSTRY IS CHANGING, WE ARE GOING TO LEAD THE CHANGE

WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 29