Kongsberg Gruppen

Investor Presentation • Oct 30, 2020

INVESTOR PRESENTATION

Q3 2020

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

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

Highlights third quarter 2020

• Strong EBITDA and margin
  • Solid project execution and cost focus
  • Value capture program continue to deliver ahead of plan
• BNOK 5.8 in revenue
• New strategic agreement with Shell Global Solutions International
• Additional dividend and share buy-back

Important contracts signed in third quarter

Framework agreement with NICFI for global deforestation surveillance

Framework agreement for Kognitwin® with Shell Global Solutions International

Zero-emission autonomous vessels to ASKO

Innovative krill vessel to Rimfrost

Hugin AUV Survey Systems to Garden Reach

NATO Tactical Radio Link to Norway

Financial status

Gyrid Skalleberg Ingerø, CFO

Strong EBITDA and margins

• NASAMS Qatar BNOK 5.6 last year

investments

• COVID-19 effects offset by reduced cost and

• Growth in all KDA divisions

• MNOK 669 depreciations YTD • MNOK 307 amortisation YTD

Cashflow

		Positive cashflow from operations offset by tax related to Hydroid transaction	Comments
(BNOK)						Positive cashflow from operations, albeit with ▪ increased working capital
0.92 8.61	0.58	0.18 0.45	0.09 0.12	0.02	8.10	Increase in working capital driven by; ▪ - Project ramp-up - Payment of employee taxes & liabilities "Hydroid" related to tax from Hydroid ▪ transaction
Cash EBITDA 01.07.2020	Change in working capital and other	Investing Hydroid activities	Net fin. item Interests & & repayment payments on debt on leasing obligations	Translation differences cash	Cash 30.09.2020
	Cash from operating activities	Cash from investing Cash from financing activities activities

Net Working Capital

Net Working Capital by Business Area

WORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary information 8 KONGSBERG PROPRIETARY - See Statement of Proprietary information

Kongsberg Maritime

Q3 2020

KM order intake Q3 2020 in line with Q3 2019

Increased profit and margins in KM due to improved operations and lower cost

Value Capture program approaching completion

	P&L effect from cost savings relative to 2018		Status per Q3
(MNOK)			Realized savings of MNOK 150 in Q3 2020 •
	Quarterly effects 160 150	Annual effects 500	445 MNOK realized YTD •
72 15 Q1 '19 Q2 '19	135 90 83 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20	55 Remaining 260 445 Realized Q1-Q3 '20 Realized Target 2019 2020	Deck Machinery restructuring and Propulsion • & Engines optimization programs progressing well Total headcount reductions of 485 FTEs • completed

KDA

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

Backlog in KDA supports growth

Continued revenue growth and strong EBITDA in KDA

• Growth in all major programs areas

• Efficient project execution results in ~MNOK 150 additional contribution
• Favourable project mix

• MNOK 307 depreciation YTD
• MNOK 66 amortisation YTD

Associated Companies

• Joint venture (50/50) with Space Norway
• Kongsberg's share of net profit reported in income from associates
• ~3.4 BNOK in backlog
• CAPEX/Sales 20 25%

KSAT PATRIA revenue and EBIT development (EURm)

EBIT % Revenue (EURm) EBIT (EURm) KOG's share of net profit (MNOK) KOG's share of net profit (MNOK)

• Minority share 49.9% (50.1% owned by State of Finland)
• Kongsberg's share of net profit reported in income from associates
• ~650 EURm in backlog
• Important part of KONGSBERG's MRO strategy

Additional dividend and share buyback

"KONGSBERG seeks to pay an ordinary dividend per share that is stable or growing year over year. Special dividends and/or share buybacks may serve as a supplement to ordinary dividends. All shareholder distributions are subject to the company's assessment of future capital requirements."

1) Paid out in May 2020

OUTLOOK

Current backlog secure growth in 2020 and 2021

Efficient operations and increased scale founds confidence to EBITDA target

Confidence in solid order intake going forward

Healthy order backlog coverage and stable lifecycle business

KONGSBERG

MARITIME

New build market expected to remain challenging

Reduced cost will continue to support improved EBITDA margins

KONGSBERG DIGITAL

Increased interest and demand for KONGSBERG's digital solutions

Continued roll-out of KogniTwin® and Vessel Insight

Focus on growth both organic through SaaS revenues and inorganic

Capital Markets Day 12 November 11am CET

INVESTOR PRESENTATION

Q&A

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in pa rt, must include this legend. © 2020 KONGSBERG – All rights reserved.

INVESTOR PRESENTATION

Appendix

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. © 2020 KONGSBERG – All rights reserved.

150 MNOK savings realized in Q3 2020

Realized cost savings

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

Area	Q1 '19	Q2 '19	Q3 '19	Q4 '19	Q1 '20	Q2 '20	Q3 '20	Comments to realized savings
Footprint & delivery streamlining	3	11	12	15	34	45	45	Effects of co-locations, production facility shutdowns and restructuring of delivery organizations
SG&A savings and synergies	9	52	58	60	81	93	86	Cost efficient set-up of support and sales functions, as well as harmonization of terms and benefits
Product portfolio optimization	4	8	13	15	20	22	19	Mainly related to streamlining of digital marine spending (Ship Intelligence)
Total	15	72	83	90	135	160	150	2020 Q1-3 realized savings of 445 MNOK versus FY target of 500 MNOK