Kongsberg Gruppen : Digital presentation

KONGSBERG DIGITAL

DIGITALIZING THE

WORLD'S INDUSTRIES

12/11/20

Hege Skryseth, President Kongsberg Digital & EVP

KONGSBERG

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

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2

Our business

DIGITAL OCEAN	DIGITAL ENERGY	DIGITAL WELLS

INDUSTRIAL AND COMMERCIAL PARTNERSHIPS

KONGSBERG

ECOSYSTEM

Built in cyber security

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3

Scalable market offering with open ecosystem

SaaS and recurring revenue business

Kongsberg Digital apps

3rd party apps

Customer owned apps

▪ 30K vessels install base

▪	11K vessels with
	KONGSBERG
	automation system
▪	Advanced simulators
VESSEL INSIGHT	and models

KOGNITWIN ENERGY

▪	100 IOC assets with	▪	20K users on
	installed simulators		Sitecom
▪	Enterprise agreement	▪	15K wells
	with Shell Global
▪	Upstream, integrated	SITECOM
	gas and downstream
	manufacturing assets

Kognifai

WORLD CLASS - Through people, technology and dedication

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4

	Kongsberg Digital highlights
2019	2020
~800 MNOK Revenue	Kongsberg Digital
26% YoY growth
~35% recurring revenue*

95% external revenue ~70% international

Maritime

~37% recurring revenue*

Energy

~35% recurring

business

*Rolling 12 months, Sep 19/20

12% growth in ARR*

revenue*

WORLD CLASS - Through people, technology and dedication

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5

Kongsberg Digital - ARR growth

KDI			ENERGY
						Target ARR	EoP ARR
		83%
								58%			78%
									61%	70%
							51%
		35%
		2020	2021	2022	2023	2024
			MARITIME
	35%					Target ARR	EoP ARR

	58%	86%
	79%
		64%
50%
37%

2020	2024	2020	2021	2022	2023	2024
* External revenue
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Key achievements 2020

Strategic milestones and focus areas

		REAL-TIME
		SOFTWARE		VESSEL INSIGHT AND
SHELL CONTRACT		CONTRACT		DIGITAL TWINS	KOGNITWIN GRID

	COACH
PARTNERSHIPS	ACQUISITION	AUTOSHIP WITH KM	K-SIM CONNECT

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7

Enterprise framework agreement

Kognitwin Energy for Shell

Our collaboration with Kongsberg Digital in developing digital twins brings in a new era of visually interacting with data and models at the asset, equipment and component level. Digital twins drive efficiency by enabling remote operations, automation and significantly improved collaboration. It supports our front-line operations to better leverage insights from big data, transforming ways of working to unlock value and increase resilience in the changing business environment.

Yuri Sebregts, Chief Technical Officer Shell

WORLD CLASS

8

Digital transformation is reshaping the

Energy industry

	Carbon		Autonomous		Digital
	Footprint		Operations		Worker

Kognitwin Energy

The working surface of the future

Decreased		Data driven		Common		Energy		Remote
		organizational
carbon footprint		decisions			management		operations
		insight

Increased safety		Operational		Production		Increased		Autonomous
	efficiency		optimization		automation		operations

10

Nyhamna

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Digital transformation is reshaping the

maritime industry

	Sustainability									Decreasing
			Autonomous			New
	and
			operations			regulations			margins
	emissions

12

Vessel Insight data infrastructure and ecosystem

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Ensuring scalability for customers and vendors

Maritime software landscape 2020

15

Ambitions for Kongsberg Digital

DIGITAL OCEAN	DIGITAL ENERGY	DIGITAL WELLS
Targeting 10% of world fleet		Market leader, upsell with applications
Targeting 15% of assets

~ 3 bn revenue and 80 % SaaS in 2024

WORLD CLASS - Through people, technology and dedication

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Thank you

WORLD CLASS - Through people, technology and dedication

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