Kongsberg Digital

KONGSBERG STIAN ELIASSEN, Senior Vice President Finance Kongsberg Digital

• Well positioned to become a key player in digital transformation across our industries • 25% investment of annual turnover in R&D 2017/18 • Taking important positions with our digital platform Kognifai and key application areas

11 Locations

Maritime Simulations Oil&Gas Renewables Digital Platform & Utilities

Market leading simulator Real-time data aggregation, Products and services to the Kognifai – KONGSBERGS digital solutions, supporting everything visualization and advisory renewable energy sector in co- ecosystem. The ecosystem from mandatory STCW training to solutions for all phases of well operation with eSmart Systems AS. supports collaboration and advanced integrated crew training construction. Kongsberg EmPower - open knowledge-sharing between all for maritime, naval and offshore Multiphase flow simulation platform with full integration of companies that are part of it; industries. solutions for engineering studies, sensors and systems providing customers, partners, operator training, and real-time smart data and decision support. KONGSBERG applications and production and flow assurance. 3rd party applications.

NOK ~ 400 mill NOK ~ 300 mill NOK ~ 20 mill NOK ~ 30 mill

Note: Total FTE inc. 11 admin

MERCHANT OFFSHORE NAVY & COAST GUARD

10 % 30 %

800 MNOK 100 MNOK 50 % 1.000 MNOK

Kongsberg Others

DRILLING & WELLS PRODUCTION ASSURANCE

Top 20 operators by E&P spending 2017 Top 20 operators by E&P spending 2017

Saudi Aramco Saudi Aramco PetroChina PetroChina Petrobras Petrobras Shell Shell ExxonMobil ExxonMobil Gazprom Gazprom Rosneft Rosneft BP BP Chevron Chevron Statoil Statoil Total Total Pemex Pemex Eni Eni Sinopec Sinopec ConocoPhillips ConocoPhillips Sonatrach Sonatrach SiteCom customers K-spice and Ledaflow customers CNOOC CNOOC PDVSA PDVSA Lukoil Lukoil Pars Oil & Gas Pars Oil & Gas

. 11 out of the top 20 E&P companies by spending are SiteCom customers . 8 out of the top 20 E&P companies by spending are K-Spice and/or LedaFlow customers . Over 10.000 drilling operations . Over 400 installations . 40-50 large customers and 10.000 users . Stronghold in the North Sea and the GoM

descriptive diagnostic predictive prescriptive reporting discover & explore forecast anticipate

question what happened? why is it happening? what is likely to what should I do? what is happening? where is the problem? happen next? what is the next best what are the trends? action?

predictive modeling artificial intelligence technique business reporting agile dashboards scorecard cause and effects regression analysis machine learning simulation

example financial results risk analysis strategy & growth analytical applications staff performance workforce analytics analysis with simulated scorecard customer analytics outcome

the increasing value of analytics

AppStore Digital Platform 1st party PARTNERS & RESEARCH Partner Ecosystem CONSUMERS & ACADEMIA ISV Approach

Digital Twin INDUSTRY INDUSTRY DIGITAL TWIN Fabric APPS SOLUTIONS INNOVATION ARENA

IT INDUSTRY PAAS CYBER SECURITY API’S OPEN SOURCE FRAMEWORK IMS Digital DATA CATALOG TECHNICAL CAPABILITIES ADVANCED ANALYTICS INTEGRATION FRAMEWORK Platform DATA | SEMANTIC | HISTORIAN

IOT GATEWAY

IMS SAS Industry OT cluster

Oil & Gas Offshore Maritime Sea Farming Utilities Renewables

Condition Monitoring & Platform as a Service (PaaS) Production Optimization Asset Lifecycle Optimization

Drones & Cyber Security & Data Digital Twins Advanced Analytics Management

FIELD WIDE Includes all aspects of DIGITAL TWIN all assets across a field

Includes all aspects of one specific assets, fx an ASSET WIDE unmanned production DIGITAL TWIN platform

Includes one specific system Completeness scope of Completeness end to end, from input to SYSTEM WIDE output and everything in DIGITAL TWIN

between Required organizational maturity organizational Required Includes a part of a system, a SUB-SYSTEM sub-system, fx a compressor DIGITAL TWIN train

Includes one isolated component and all its COMPONENT functions, for example a DIGITAL TWIN pump

Maritime The full 3D Documentation of all Operations representation of equipments, design structure and piping parameters and executed jobs on the asset

Overview of 3D representation, procurement, logistics, exact location and meta supplier and cost items information about – enabling planning individual equipment / and budgeting features

A dynamic view of Overview of the process interdependencies and facility, its linkages and linkages between all tags on key performance the asset - enabling parameters simulation and optimization of key processes

Signed contracts and partnerships Digital Twin & Production Maritime Operations eSmart launched ThunderCloud ~100 MNOK Optimalization Projects Offshore Wind Farms

SimWave Contract Awarded Fred. Olsen SCADA Project Organization Build Up (KM/KDI) 87 MNOK

WORLD CLASS THROUGH PEOPLE, TECHNOLOGY AND DEDICATION