Kongsberg Gruppen : Defence & Aerospace presentation

KONGSBERG DEFENCE

& AEROSPACE

12/11/2020

Eirik Lie,

President Kongsberg Defence & Aerospace

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.

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.

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

2

KEY TAKEAWAYS

STRONG		GROWTH		STRATEGIC STEPS
POSITIONS

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

3

Two centuries of innovation, transformation and delivering results, has made Kongsberg Defence & Aerospace, a recognized global technology leader. We take pride in developing advanced technology and products of strategic importance, to nations around the world.

~3,000	8 BNOK	More than 80	World-Class
Employees	Revenues	percent export	Defence Products

4

KDA DIVISIONS AND ACUIRED COMPANIES

INTEGRATED DEFENCE SYSTEMS		AEROSTRUCTURES & MRO		LAND SYSTEMS

MISSILE SYSTEMS		SPACE AND SURVEILLANCE
WORLD CLASS - Through people, technology and dedication		KONGSBERG PROPRIETARY - See Statement of Proprietary information	5

REACHING MILESTONES - PUSHING BOUNDARIES

F-35 LIGHTNING II PROGRAM STATUS

AND FAST FACTS

F-35 PRODUCTION		PROGRAM OF RECORD

131

USA

USAF 1,763 F-35As

DoN 693 F-35B/Cs

IOC: USMC: 7/15,

USAF 8/16, USN 2/19

UK	ITALY	THE NETHERLANDS	AUSTRALIA
RAF/RN 138 F-35s	60 F-35As/30F-35Bs	46 F-35As	100 F-35As
IOC: 1/19	IOC: 12/18

							91
						66
9				45	46
	35	36
	29
2011	2012	2013	2014	2015	2016	2017	2018	2019

Foreign Military Sales:

6 nations

NORWAY	DENMARK	CANADA
52 F-35As	27 F-35As	88 F-35As
IOC: 11/19

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

7

STRONG GROWTH AND

INCREASING PROFITABILITY

Order Backlog (BNOK)

Revenues (BNOK)		EBITDA (BNOK) and margin (%)

20.1

18.8

11.8	10.9		10.7
	10.0

2015	2016	2017	2018	2019	Q3
					2020

WORLD CLASS - Through people, technology and dedication

		+8%	8.4
			7.2
5.8	6.3	6.3	6.1

2015 2016 2017 2018 2019 LTM Q3

2020

KONGSBERG PROPRIETARY - See Statement of Proprietary information

19.0%

15.5%

1.59

12.1%11.1%

9.3%1.12

6.5%

0.700.68

0.59

0.41

2015 2016 2017 2018 2019 LTM Q3

2020

Note: EBITDA% excluding income from associated companies

8

LONG-TERM DEFENCE MARKET

Protectionism?		Crisis affecting national			Investments in modernizing /
	budgets?			optimising platforms

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

9

SIGNIFICANT OPPORTUNITIES AHEAD

Identified opportunities

Framework
agreements
2022 →	8.2
	18,7
2021	8.0
Q4 2020	2.6
	Backlog

Preferred or selected supplier for

BNOK 100 + contracts

• NASAMS: 3 - 5 new contracts/awards
• QATAR vehicles programme
• NSM: GERMANY and other new users
• JSM: F-35 as marketing channel
• Submarines: Norway and Germany
• MCT: Sales to existing and new users
• MRO: New and expanded opportunities

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

10

STAYING AHEAD OF THE CURVE

NSM

NASAMS		Remote Weapon Station

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

11

KEY STRATEGIC PRIORITIES

MRO efforts -		Space - as response		US strategy -		Ramp-up -
increasingly			to market		global with strong		to deliver on major
important and			opportunity		partnerships, but		projects, with
profitable					also local		people and facilities
WORLD CLASS - Through people, technology and dedication	KONGSBERG PROPRIETARY - See Statement of Proprietary information	12

ONE KONGSBERG -

JOINT EFFORTS

REMOTE TOWER IN BODØ

5-10 mrd

VANGUARD

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information

13

POSITIONED TO WIN

PROGRAMS VALUED AT BNOK 100+ OVER NEXT 10 YEARS

WORLD CLASS - Through people, technology and dedication

KONGSBERG PROPRIETARY - See Statement of Proprietary information