Status update COVID-19

Due to the outbreak of this virus, KONGSBERG has implemented a number of measures to deal with this extraordinary situation. The company's main priority is to safeguard health, jobs, safety and liquidity and to deliver on its obligations to customers, owners and other important stakeholders.

As a result of the ripple effects of COVID-19 and the extensive measures implemented by various countries' authorities, KONGSBERG is experiencing a lower level of activity than planned. Travel restrictions, quarantine provisions and other measures to prevent infection are causing difficulties in production and in the customer and supplier chains. The difficulties are especially noticeable in Kongsberg Maritime. Our defence activities are also affected, but to a more limited extent. Kongsberg Defence & Aerospace and its subsidiary Kongsberg Satellite Services are defined as essential services for society.

KONGSBERG has a sound financial position and is well equipped to deal with extraordinary situations. With offices, service systems and factories in 40 countries, we are able to maintain critical operations even in a situation with extensive travel restrictions. An international presence is especially important for Kongsberg Maritime, which has equipment installed on 30,000 ships worldwide.

KONGSBERG has almost 11,000 employees. As a result of the lower level of activity, KONGSBERG has temporarily laid off and sent temporarily lay-off notices to around 550 employees in Norway by the end of week 14. In addition, temporarily layoffs and other capacity adjustments have also been implemented internationally. These temporarily lay-offs affect all the business areas and staff functions, and most are in the maritime business area.

Kongsberg Maritime has extensive international operations and is directly affected by the downturn in trade and the global economy. The various countries' travel restrictions especially affect parts of the service and after-sales market. With offices and service systems in 34 countries, project deliveries and a lot of the service assignments are carried out locally. However, the level of activity has been reduced, and it has for instance been decided to put certain non-critical development projects on hold as a way of ensuring liquidity. At the same time, the fall in the oil and gas market may lead to less activity in the offshore market.

Kongsberg Maritime has major operations in Asia, mainly in China, South Korea and Singapore. In this region, where the coronavirus outbreak started and spread alarmingly in January, the authorities seem to have gained control of the situation and society appears to be returning to a more normal state.

Kongsberg Defence & Aerospace (KDA) has most of its operations in Norway and a high export share. So far, the defence activities have not experienced any major consequences of COVID-19 and operations are being maintained at a more or less normal level.

Kongsberg Defence & Aerospace has extensive operations in Johnstown in the USA. These operations have been defined by the US authorities as essential to society and are so far not affected by the virus situation in the USA. Arsenalet, the KONGSBERG factory that delivers critical components to F-35 fighter aircraft, has also not experienced any production delays so far.

KONGSBERG is basically well equipped to tackle extraordinary situations, but the consequences of COVID-19 are uncertain. Our goal is to maintain our financial robustness during this challenging period, and we are prepared to implement the necessary measures to adapt our level of activity to the new situation and thus create a basis for the long-term sustainable development of the company.

As a result of the extraordinary situation, KONGSBERG will issue regular updates.

KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the maritime, oil & gas, defence and aerospace industries. KONGSBERG has almost 11,000 employees in 40 countries.