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 part, must include this legend. © 2016 KONGSBERG – All rights reserved.

KONGSBERG GRUPPEN ASA AUSTRALIA UPDATE AUGUST, 26 2016

Kongsberg has a unique history and a strong culture. An industrial pioneer

since 1814

• High focus on R&D • Continuous stream of innovations • Diversity delivers

ESTABLISHED IN 1814

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INTERNATIONAL HIGH-TECHNOLOGY SOLUTIONS, FROM DEEP SEA TO OUTER SPACE

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Advanced solutions and applications for the maritime, oil & gas, defence and space industry

- EXTREME PERFORMANCE FOR EXTREME CONDITIONS -

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GLOBAL REACH WITH MORE THAN 100 OFFICES AND A LARGE NUMBER OF GLOBAL ALLIANCE PARTNERS

FOCUS ON TECHNOLOGY LEADERSHIP FORMS THE BASIS FOR OUR INTERNATIONAL GROWTH

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0

2

4

6

8

10

12

14

16

18

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

REVENUES NORWAY (MNOK) REVENUES INTL. (MNOK) EBITDA %

REVENUES AND EBITDA

MARGIN 1990-2015

7 688 EMPLOYEES

38 % EMPLOYED OUTSIDE NORWAY

OFFICES IN MORE THAN 30 COUNTRIES

EMPLOYEES 31.12.2015

THE KONGSBERG ORGANISATION - Business areas

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KONGSBERG DIGITAL KONGSBERG MARITIME KONGSBERG DEFENCE SYSTEMS

KONGSBERG PROTECH SYSTEMS

Global market leader within both offshore, merchant marine and subsea applications

Developing the next generation of digitalized products and services

Modern product portfolio in growing defence and aerospace niches

Unrivalled global market leader in remote weapon stations

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OUR KEY DEFENCE SOLUTIONS

1. Remote Controlled Turrets- and Weapons Stations 2. Long Range Anti-Ship Cruise Missiles 3. Ground Based Air Defence 4. Combat Systems 5. Tactical communications

NASAMS Ground Based Air Defence JSM Joint Strike Missile

NSM Naval Strike Missile

Combat Systems

Tactical Communications

Remote Weapon Stations «Ocean Space»

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DISTINCT DEFENCE INDUSTRY CHARACTERISTICS

• Not a level playing field – national / political interests

• Defence purchases are exempted from ordinary competition laws, due to national security – Buy from national industry – closed markets

• Few customers

– Major defence companies grow through a large range of advanced products to some very few customers

SUCCESS CRITERIA : FOCUS ON INDUSTRIAL AND POLITICAL SOLUTIONS BEYOND BEST PRICE/PRODUCT

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AUSTRALIA : INDUSTRIAL COOPERATION «OFFSET»

• Until today – Australia does not have a standard offset or industry participation policy,

Government seeks to leverage buying power to create opportunities for Australian industries

– 70% of defence investments through local 8 largest – focus on sustainment and integration

• From 2017

– A clearer and simpler framework to be put in place – A new Centre for Defence Industry Capability (CDIC) will be established – Industry Development; facilitating innovation and business competitiveness; and

exports

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KONGSBERG IN AUSTRALIA

• Office in Perth (Kongsberg Maritime and Kongsberg Digital)

• Establishing office for defence activities in Canberra (opening 2017)

• Supplier to Navy, Army and Air Force since1990`s • Australian Government expects an increase in

budget and focus on defence • Australia Defence Forces (ADF) investment

plan fits KONGSBERGs product portfolio

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WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION