March KONGSBERG a technology corporation. Kongsberg Gruppen ASA. Highlights: Market Cap approx NOK 8,1 billion as of 24.

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1 March 29 Kongsberg Gruppen ASA March 29 WORLD CLASS through people, technology and dedication KONGSBERG a technology corporation Highlights: Market Cap approx NOK 8,1 billion as of 24. March Sales 28 growth-rate: 33 % 27 growth-rate: 24 % Sales 28: NOK 11 billion Employees Operations in 25 countries International sales: apprx. 71 % Market positions: Among 1-3 in maritime applications World-class niche product supplier in defence applications 2 1

2 March 29 KONGSBERG's organisation as from 1 January 29 *Kongsberg Oil & Gas reports its financial figures through Kongsberg Maritime 3 The Group's business model Common technology base segmented approach to the market SEGMENT CHARACTERISATION Research & Development Product development Operations in all four business areas are based on engineers, systems development and a strong technology culture Range of products based on the same core technologies Production & project implementation All BAs are engaged in technologically challenging projects for demanding applications The business areas differ in terms of customers' requirements and commercial conditions Marketing Sales The business areas engage in a combination of product and project sales to commercial customers in a global market Systems and products tailormade for the main industrial segments Offshore & Merchant product line Defence & Aerospace product line 4 2

3 March 29 Relatively independent market drivers and a strong order backlog provide some robustness Merchant shipping transportation at sea Oil serviceglobal energy demand Drivers/parameters: Drivers/parameters: World trade Development in Asia USA/Europe versus Asia Field depletion rate Special vessels versus dry bulk Deepwater/EOR developments Vessel age Oil price levels Building capacity and costs Technological developments Orderbacklog Norwegian defense investments Drivers/parameters: International defense investments Drivers/parameters Budgeted investments for Norwegian defence modernisation National plans and budgets F35 - JSF fighter aircraft Financial constraints versus geopolitical and security, protectionism Naval Strike Missile Naval upgrading programs Niche products: RWS, NSM/JSM, Air Defence Systems Development projects (JSM) Long-term contracts + service 5 Offshore and merchant product line Dynamic Positioning Automation & Control Hydroacoustics Navigation Simulation 6 3

4 March 29 Offshore Oil & Gas The value chain Field Development Exploration Operation Transportation Simulation/Engineering 7 Defence & Aerospace product line Dynamic systems Missiles Naval systems Air defence systems Surveillance Defence communication 8 4

5 March 29 Remote Weapon Stations CROWS (Common remotely operated weapon station) PROTECTOR Remote Weapon Station (RWS) The weapon station is mounted on the top of a vehicle, allowing the soldier to sit fully protected inside the vehicle KONGSBERG s weapon station has been sold to 16 countries More than 4 systems delivered so far CROWS In August 27 KONGSBERG signed a framework agreement with US Army worth up to 8 billion NOK The timeline of the agreement is from 28 to 212 More than 4,2 billion of the frame is booked so far 9 The world of KONGSBERG Svalbard (Spitsbergen) Norway 1 Sweden Scotland Newfoundland (Canada) British Columbia (Canada) Poland Ireland Germany Washington (USA) Ontario (Canada) England The Netherlands Nova Scotia (Canada) France Hungary Italy Pennsylvania (USA) Connecticut (USA) Spain Greece Texas (USA) Louisiana (USA) The United Arab Emirates India Japan Dalian, China South Korea Shanghai, China Singapore Brazil The world of KONGSBERG South Africa Antarctica 1 5

6 March 29 Kongsberg Gruppen ASA Annual accounts for 28 WORLD CLASS through people, technology and dedication 28 Considerable growth and improved results Further growth in order backlog Further strengthening of market positions Build up in Asia and the USA Introduction and qualification of new technologies and products Strategic contracts Major investments in future growth Production facilities in the US and Norway Commencement of major, multi-year contracts for delivery Organisational growth Exchange rate fluctuations Larger hedged volume as the year progresses Large exchange rate fluctuations fluctuations in the accounts Organising for continued growth Large-scale marketing campaigns Corporate restructuring Focus on improved efficiency and operations 12 6

7 March 29 Financial status 28 / margin % 8 % 6 % 4 % 2 % % margin Financial status 28 Quarterly trends in operating revenues and Q1 Q2 Q3 Q Change Year (%) 33 % Q % Year % Q % margin Year 9.6 % 1.1 % Q4 9.9 % 9.4 % Q1 Q2 Q3 Q

8 March 29 Financial status 28 and the backlog of orders Change (%) Year % Q3 28 Q % Year % Q % Financial status 28 Equity and liabilities KONGSBERG has MNOK in net interest-bearing debt The Group also has an undrawn credit facility of MNOK 8 The value of currency futures contracts dropped by MNOK in related to Q4 The drop is ascribable to the strong rise in the EUR and USD relative to the NOK in Q4 28; changes are recognised directly to equity When contracts are signed, we allocate the hedges to the contracts, and the contracts are taken to income at the original hedging rates Foreign exchange rates at 24 March 29 have almost reversed the drop in equity value compared to year end figures Structure for the maturity of loan agreements Amount Maturity MNOK 4 Jun 29 MNOK 8* Dec 21 MNOK MNOK * Credit facility undrawn at 31 Dec

9 March 29 Financial status 28 Cash flow 28 Investments in growth: Investments in tangible fixed assets The construction of a new composite plant MNOK 371 New factory for weapon control systems in the USA MNOK 56 Acquisition of subsidiaries GlobalSim MNOK 83 Hydroid MNOK 42 GeoAcoustics MNOK 42 KONGSBERG had net interest-bearing debt of MNOK at year end Net cash flow 28 (MNOK) EBITDA Change in other items related to operations (1 345) Cash flow from operating activities (26) Purchase of fixed assets Acquisition of subsidiaries (816) (544) Disbursement of lending and the purchase/sale of shares (74) Other investment activities Cash flow from investment activities Cash flow from financing activities (5) (1 484) 813 Effects from F/X in bank deposits and cash equivalents 33 Net change, bank deposits and cash equivalents (664) Net Interest-bearing debt at 31 Dec Key figures Change, operating revenues % 24 % EBITDA EBITDA/employee * (NOK 1 ) margin 1.1 % 9.6 % EBT Equity % 15 % 3 % Book/bill EPS *Average number of employees 18 9

10 March 29 Kongsberg Maritime Status 19 Kongsberg Maritime General review 28 / margin % 8 % 6 % 4 % 2 % % margin

11 March 29 Kongsberg Maritime Quarterly trends in operating revenues and Q1 Q2 Q3 Q Change Year (%) 32 % Q % Year % Q % margin Year 1.4 % 1.8 % Q4 9.8 % 8.2 % 5 Q1 Q2 Q3 Q Kongsberg Maritime and the backlog of orders Backlog Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Change (%) Year % Q3 28 Q % Year % Q %

12 March 29 Kongsberg Maritime By division Operating revenues Offshore & Marine 24 % 21 % Subsea 64 % 67 % Oil & Gas 9 % 2 % 22 % 71 % 66 % 23 Kongsberg Defence & Aerospace Status 24 12

13 March 29 Kongsberg Defence & Aerospace General review of 28 / margin % 8 % 6 % 4 % 2 % % margin Kongsberg Defence & Aerospace Quarterly trends in operating revenues and Q1 Q2 Q3 Q Change Year (%) 33 % Q % Year % Q % margin Year 8.2 % 9.3 % Q4 9.1 % 1.4 % Q1 Q2 Q3 Q

14 March 29 Kongsberg Defence & Aerospace and the backlog of orders Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Change (%) Year % Q3 28 Q % Year % Q % Kongsberg Defence & Aerospace By division Operating revenues 15 % 23 % 16 % Missile Systems & Aerostructures 16 % Dynamic Systems 14 % 57 % 18 % 8 % 43 % Naval Systems & Surveillance Integrated Defence Systems 15 % 38 % 59 % 42 % 28 14

15 March 29 Q&A Session 29 15