kongsberg maritime · 24-09-2019 · cm icon km k-pos cm poscon km c -pos joy/c wing cm mcon cm...

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.

© 2019 KONGSBERG – All rights reserved.

Egil Haugsdal

President Kongsberg Maritime

24/09/2019

KONGSBERG MARITIME

KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication

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.

2

KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 3

KEY TAKEAWAYS

We are a frontrunner onsustainable technology

development

We adapt to changingmarkets

We will generateshareholder value

through the Commercial Marine acquisition

KONGSBERG

MARITIME

Systems on30,000+ vessels

Employees7,300+ people

117 offices in34 countries

Experience80+ years

BNOK 17+Revenues

4


KONGSBERG MARITIMEBusiness units

INTEGRATED SOLUTIONS GLOBAL CUSTOMER SUPPORT

PROPULSION & ENGINES SYSTEMS & DECK MACHINERY SENSORS & ROBOTICS


FURTHER GROWTH OPPORTUNITIES

▪ US NAVY UNDERWATER

▪ EUROPE UNDERWATER

‐ CIVIL AND DEFENCE

THE AUTONOMY OF DEPTHGLOBAL NO. 1


WE ARE USED TO NAVIGATING IN CYCLICAL MARKETS

6,5 %

8,2 %

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000M

NO

K

LTM Order Intake

LTM Revenues

LTM EBITDA %

LTM Underlying EBITDA %


AGENDA

1. A FRONTRUNNER ON SUSTAINABLE TECHNOLOGY DEVELOPMENT

2. A BRIEF OVERVIEW OF OUR MARKETS

3. ROADMAP

4. KM + CM ➔ A PERFECT FIT

8


MY GARAGE!

9


OUR TECHNOLOGY DEVELOPEMENT DRIVES GROWTH


KM IS A TECHNOLOGY COMPANY

11


THE OCEAN INDUSTRY IS CHANGING


DIGITALIZATIONSUSTAINABILITY

12


THE DRIVE FOR SUSTAINABLE DEVELOPMENT

13

ENVIRONMENTAL AWARENES

ENERGY USAGE AND INTELLIGENCE

IMO 2020


LIFE CYCLE EMISSIONSWell to wake – GHG emissions

14

-60, -50, -40, -30, -20, -10, 0, 10, 20, 30, 40, 50, 60, 70, 80, 90, 100,110,120,130,140,150,160,170,180,190,200,210,220,230,240,250,260,

HFO

MGO

LSFO

LNG (imported)

LNG (local)

LPG

MeOH (from CH4)

MeOH (from black liquor)

NH3 (from CH4)

Biodiesel

Bio-LNG (from waste)

Bio-LNG (from digestate storage)

H2 (CH4 steam reforming, EU)

H2 (CH4 steam reforming from waste)

H2 (electrolysis from EU grid)

H2 (electrolysis from wind energy)

Electricity [EU grid]

Electricity (Wind energy)

CO2eq emissions [g/MJ]

WELL TO TANK TANK TO WAKESource: EU Joint research centre

For zero emission TTW solutions it is crucial to

choose the correct source of electricity

KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 15

MARINE FUELSToday and in a near future


WORKING WITH KONGSBERG

Market leader within automation and control systems

Extensive industry experience delivering Information Management Solutions

Open digital ecosystem with a broad range of 3rd party services

24/7 support and a global service network of maritime experts


AGENDA



3. ROADMAP


17


THE MARKET: GROWTH 2005-2014, DROP 2015-2019

0

5 000

10 000

15 000

20 000

25 000

-19

40

45

-49

55

-59

65

-69

75

-79

85

-89

95

-99

05

-09

15

-19

Cargo Carrier

Tugs and Workboats

Cruise and Passenger

Supply and Service

Exploration and Production

Construction and Subsea

Fish

Special Purpose

Scrapped

0

20 000

40 000

60 000

80 000

100 000

120 000

-19

40

45

-49

55

-59

65

-69

75

-79

85

-89

95

-99

05

-09

15

-19

Cargo Carrier

Tugs and Workboats

Cruise and Passenger

Supply and Service

Exploration and Production

Construction and Subsea

Fish

Special Purpose

# of vessels by contract yearTOTAL FLEET DEVELOPMENT

by delivery year


Combined installed base of over 30 000 vessels across relevant market segments

19

KM installed base

> 20 000Shared installed base

~ 10 000CM installed base

> 20 000

Total combined installed base1)

> 30 000Shared base market segments2)

16%

32%

18%

17%

9%

8%

Tanker

Tug

Container

Bulk

Offshore

Other

1) Based on available IMO-numbers2) Market segment split based on reported categories,

which somewhat differ between CM and KM

Combined installed base age distribution

0

500

1.000

1.500

2.500

2.000

COMBINED INSTALLED BASE OF OVER 30 000 VESSELS ACROSS RELEVANT MARKET SEGMENTS

5 10 15 20 25 30 35 40 45

Service support and upgrades

Legacy product support and upgrades

Age (Years)


MERCHANT MARKET SCRAPPING

IMO 2020

45 000

EstimatedTOTAL MARKET

MARKET DRIVERS

Seaborn Trade

Dry Bulk Index

IMO 2020

NEWBUILD MARKET

AFTERMARKET


COLD/WARM STACKED

21

OFFSHORE MARKET

10 000

EstimatedTOTAL NO. VESSELS

MARKET DRIVERS

Oil Price

Expl. Activity

Day Rates

SCRAPPING

REACTIVATION

NEWBUILD MARKET

AFTER MARKET


AGENDA



3. ROADMAP


22


KM ROADMAP GOING FORWARDBest long term strategy is to secure short term profitability

Deliver on target, turn around Commercial Marine

Exploit benefits of joining forces, customer value through total product portfolio and technologies

The Leading Global Supplier of Maritime Technology, shaping the maritime future.

3

2

1

Long-termMid-termShort-term


AGENDA



3. ROADMAP


24


KM + RRCM = A GLOBAL LEADER – FROM BRIDGE TO PROPELLER

Shaping the maritime technologies

Two highly complementary companies

A world class combined global network covering all

continents

Synergies strengthening our competitiveness

▪ Complementarity enables scale

▪ Scale allows for more efficient operations

▪ An even more robust and competitive organization

▪ Combining the best of the maritime industry’s leading engineering capabilities

▪ Industry leadership in today’s as well as future technologies such as digitalization, remote operations and autonomy

▪ A broad range of complementary World Class maritime products

▪ Allowing for seamlessly integrated solutions throughout the vessel

▪ A strategic partner for improving efficiency and operational capabilities of the vessels

▪ A strong global sales- and service network across 34 countries

▪ Global reach, local presence – wherever the customers are

▪ Servicing a combined installed base of approximately 30,000 vessels

AUTOMATION

NAVIGATION

INTEGRATED BRIDGE SYSTEMS

DYNAMIC POSITIONING

COMPACT DP

Propulsion/Thruster /Steering Controls

KM «PCK/700» KM «C20/600»CM «CAF/ACON»

KM K-BRIDGECM 3rd party

CM Unified Bridge KM K-MASTER

KM K-POSCM ICON

KM C-POS KM C-Joy/C-WingCM Poscon

CM MCON

CM ROCCS

KM Autochief

CM Helicon

CM Steering cntrl

KM K-Thrust 720

CM Aquapilot

KM K-Steering

KM K-Thrust 600

CM Canman

KM K-Thrust RCS

ADVANCED MANEUVERING

CM

KM

SW PLATFORMS

CM CAF KM PCK/AIM KM C20/600

HW PLATFORMS

CM CCP KM PCK/AIM KM C20/600

HANDLING CONTROLS

CM CAF CM SIEMENS KM 700/600

INTEGRATION ON TRACK!- Lots of potential- No large surprises after closing- Several areas with extra attention- Effects starting to materialize


Footprint & delivery streamlining SG&A savings and synergies Product portfolio optimization

• Restructuring of the loss-making Deck Machinery and Ship Design units

• Co-location of overlapping global footprint, ~20 sites

• Move non-core production activities to supply chain

• Consolidation of delivery organizations

• Direct procurement scale savings

• Leverage scale within sales, support and administrative functions

• Cost-efficient set-up of group support functions

• Harmonize terms and benefits

• Indirect procurement scale savings

• IT infrastructure synergies

• Joint plan for digital marine development: Streamlining of overlapping efforts and prioritization of activities to market needs

• Consolidation of overlapping product portfolios - especially within automation

• Optimize product portfolio to meet future market needs

~225 MNOK ~225 MNOK ~50 MNOK

Activities:

Planned annual run-rate savings:

VALUE CAPTUREBroad range of measures initiated since Closing


VALUE CAPTUREProgram progressing according to plan, additional measures identified

27

Status on program execution

Realized savings YTD August of ~130 MNOK, well on trackfor ~200 MNOK effect realization for 2019 FY

Process concluded for ~180 FTEs out of the announced reduction of 260

Joint plan for digital marine development implemented

Restructuring of Deck Machinery and Ship Design progressing well

12 sites co-located to date

Significant realized savings through more cost efficient set-up of group support functions

Additional measures

• Continuous work to identify and initiate additionalmeasures

• Close-down of Gdansk site: Non-core production activityto be moved to supply chain

• Further headcount reduction of 180-200 FTEs, due to additional identified synergies and streamliningpotential

- Deck Machinery and Ship Design restructuring

- Gdansk close-down

- Optimization of global service network

• Strong comfort for realization of 2022 cost saving target


▪ Strong order intake despite challenging markets

▪ CM delivered in Q2 EBITDA MNOK 22, excl. integration and

restructuring

▪ Synergy and cost programs on plan

▪ Deck Machinery and Ship Design challenging, restructuring

program initiated

▪ Product portfolio harmonization

▪ Creating shareholder value

INTEGRATION ON PLAN

KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication 29KONGSBERG PROPRIETARY - See Statement of Proprietary informationWORLD CLASS – Through people, technology and dedication

MARITIME INDUSTRY IS CHANGING,WE ARE GOING TO LEAD THE CHANGE

KONGSBERG PROPRIETARY - See Statement of Proprietary information

kongsberg maritime · 24-09-2019 · cm icon km k-pos cm poscon km c -pos joy/c wing cm mcon cm...

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