Kongsberg Gruppen ASA Aktie

[Presentation]

Good morning, everyone, and welcome to Kongsberg's Capital Markets Day.

We are pleased to see that so many investors, analysts and other stakeholders have decided to spend the day with us today, both here in Kongsberg and via webcast. This year, we decided to host our Capital Markets Day in the city of Kongsberg during Kongsberg Agenda. We consider Kongsberg Agenda as Norway's leading technology festival, where technology and people come together to drive change, share knowledge and build networks. We hope that you have the chance to also attend some of the other events taking place at Kongsberg Agenda. Some of our systems and solutions are exhibited outside in the streets of Kongsberg during Agenda. So we also hope that you have a chance to inspect these in greater detail and to learn more about these through discussing with some of our colleagues.

Before we begin, I'd like to point out some practical information. We have no planned emergency exercises today. So in case of an alarm, please exit the building through your nearest available emergency exit. The exits are clearly marked. There are emergency exits on each side of the hall, one behind the curtains towards Grand Hotel, one through the storage area as well as the main entrance where you entered. In the event of a fire alarm, the assembly point is outside the street outside Magazinet.

The Norway Civil Defense plans to test the public warning sirens at noon. This is part of their biannual testing of the sirens, and there is no reason to be alarmed. Restrooms are located in the basement and on the second floor. Accessible restrooms are available on the second floor. There will be a 20-minute break during the sessions where you can fill up on coffee and other refreshments. After the presentation and the Q&A at noon, there will be a standing buffet lunch served in Eplehagen located to the right as you exit the hall with the opportunity to mingle and discuss.

Today, you will receive presentations from our CEO, Eirik Lie; and our CFO, Martin Wien Fjell, followed by the President of the 3 divisions, Defense Systems, Missiles and Aerostructures and Discovery. The presentations will be followed by a Q&A session. Participants joining online may submit questions through the webcast platform at any time during the event. The presentation has been made available on our website. Throughout the day, the management team will present on our strategic priorities, financial performance and financial ambitions, followed by selected deep dives into our technologies and solutions.

Please note that today's presentations include forward-looking statements that involve known and unknown risks and uncertainties, and actual results may differ materially. Also, Kongsberg's strategic plans will place increased emphasis on joint ventures and other partnerships going forward. It has therefore been decided that division follow-up and reporting will include proportional figures from joint ventures in the reporting of revenues, EBITDA, EBIT, order intake and order backlog.

Companies in which the group holds an ownership interest of 50% and has a significant operational influence are included in these metrics. These restated figures are defined as alternative performance measures, and most of the financial figures in today's presentations are APMs. With that, it is my pleasure to introduce our President and CEO, Eirik Lie, who will begin with an overview of the group's recent developments, strategy and financial ambitions. Eirik, the floor is yours.

Thank you, Jan Erik, and good morning, everyone, and welcome to Kongsberg's Capital Markets Day 2026. And for those of you in the room, a warm welcome to the city of Kongsberg. It has been 2 years since our last Capital Markets Day. The world and Kongsberg has changed a lot since 2024. But the format for this day remains the same. We will provide you with a deep dive into our business and share some of our thoughts about our markets and strategy as well as our financial ambitions, of course.

Two years ago, we said geopolitics had put defense and security on top of the world agenda, together with sustainability. This is still true today. The world remains uncertain and unpredictable. Wars, armed conflicts and political tension dominate the headlines globally. In this environment, our purpose to protect people and planet is more critical than ever. The war in Ukraine is now in its fifth year. Kongsberg plays an important role supporting Ukraine with air defense, anti-drone solutions and more. And we are learning from the Ukrainians every day.

The biggest change in the last 2 years has been the role of Europe. As the U.S. increasingly focus on priorities outside Europe, European countries must take more responsibility for their own security, their own capabilities and for continued support to Ukraine. This is recognized as a principle and long-term direction since Europe needs to expand capacity. Kongsberg has also undergone major changes. We split from Kongsberg Maritime and created a focused technology company, serving defense, security and surveillance markets. Given the market growth and industrial opportunities we see ahead of us, I am confident that this was the right decision. With an executive leadership team and the Board of Directors fully dedicated to defense and security. Kongsberg is well positioned to take advantage of the investment and technology trends that are shaping the industry in the coming years.

What we see is that the market continues to grow. This is fundamental and long-term shift. Defense spending is increasing across all relevant and addressable markets. From 2025 until 2030, we are looking at a 44% increase in procurement in our key markets. Over the next decade, European spending is estimated to increase significantly. 70% of our order backlog comes from Europe. Of this, approximately 10% to 15% is in Norway. And Norway has established a 10-years long-term plan as a response to the changed security landscape.

The plan is adjusted at regular intervals to new needs. The triangle cooperation between the Norwegian government, the Norwegian Defense Research Establishment and industry is unique in the world. The combination of this and flexibility in the long-term plan is crucial for developing and enhancing defense solutions and capacity. So the collaboration with the Norwegian government gives Kongsberg a good foundation going forward. The U.S. remains the biggest defense market. The market growth was expected to be fairly flat until recently, but we now see this changing. We are also strengthening our position in the U.S. with both new production and strategic acquisitions. I will come back to this later in the presentation.

Increasingly, more orders for our core products continue to demonstrate the strong position Kongsberg has built in the U.S. We also see other markets with increased potential for our products outside of Europe and the U.S. Examples include Canada, Australia and Japan. They are increasing defense spending and building broader security partnerships with multiple countries. And we will continue to position ourselves in these markets. Across these markets, demand for our key products, including strike missiles, air defense and weapon stations solutions remains strong. Today, we will show how Kongsberg is positioned to meet this.

The war in Ukraine has transformed the battlefield, and it has changed how countries think about building up their own capabilities. The need for effective air defense was demonstrated from the very first day of the war in Ukraine. NASAMS had proved its value as the most effective medium-range air defense system with an impressive success rate of around 95%. The threat from low-cost drones poses new challenges in the air. Anti-drone or counter unmanned aerial systems have become essential. Not a single vehicle can enter the battlefield in Ukraine without an anti-drone system protection in place. Without it, the risk being taken out almost immediately.

Both the Ukraine war and the conflicts in the Middle East have shown that the combination of low-cost drones in high volume together with advanced cruise missiles and tactical ballistic missiles poses a new threat scenario that needs to be countered. And this has challenged air defense systems to adapt quickly to be able to take out several hundred low-cost drones with similar affordable missiles and at the same time, use high-end missile solutions to take down the advanced threats.

As the volume of simultaneous threats increases dramatically, another lesson from Ukraine and Middle East is that the defense cannot only be about responding to attacks after they have started. Countries also need the ability to disrupt and prevent threats before they reach critical infrastructure, military forces or civilian populations. To do this, long-range precision strike capabilities are an important part of a modern defense.

And what we have seen in the air, we believe also see on and below the surface of the years ahead. These are areas where Kongsberg has strong technology and deep domain knowledge. With the changes we are seeing on the battlefield, our portfolio is perfectly positioned to meet future needs. We have market-leading positions in core segments such as air defense, missiles, remote weapon stations and counter UAS, which you can see in the middle of the picture here. These positions have been built up over many years. They represent technology leadership and proven solutions, but also strong customer relations, partnerships and trust.

We are also technology leaders in what we call the 2 new frontiers of modern Defense, underwater operations and space for defense. Our established market standing customer relationships and industrial partners put us in a great position to drive innovation and adoption of these segments in the future. You will see this slide again from Kjetil, Øyvind and Camilla later today.

Our 3 divisions have some clear differences, but also a lot in common. Our entire product portfolio is supported by our technology backbone, which is built around a few key themes: integrated systems, autonomous systems and artificial intelligence. These technologies improve efficiency of systems, protects people and removing the soldier from the most high-risk areas and is critical to meet similar developments in threats. You will hear more about these topics later today.

The first and perhaps most natural growth driver is that the total investment plans in our key markets will continue to drive demand in our core portfolio. The growth will come from 3 sources. Number one, we will see existing customers return to buy more NASAMS, more NSM and JSM and more remote weapon stations solutions. Number two, new countries will acquire these solutions. So our total customer base will grow. And number three, we will adapt and develop our existing products to new platforms like aircraft, vessels, vehicle, drones and more.

The second big driver of growth is the accelerated speed of innovation in the defense industry. We are seeing this in Ukraine, where new solutions are adopted and tried out daily. On this -- on the slide, you can see a remote station with a drone radar onboard an unmanned vessel. This is a typical example how we can adopt counter UAS solutions from land to sea.

The third growth driver is deployment of dual-use technology, solutions that are developed in the civilian market that have a concrete and immediate impact on the battlefield. Space for defense and underwater autonomous systems such as HUGIN are great examples of dual-use tech that will shape the defense industry of the future.

The fourth and final major growth driver we are seeing in the defense industry is the need to produce much higher volumes on missiles artillery faster and at the right cost. Deploying advanced high-end missiles to counter cheap drones is not sustainable, either from an industrial and economical point of view. The need to match threats with countermeasures at the right cost and volume has become critical.

This is not new thinking for Kongsberg. We have worked with this logic for many years, including in our remote weapon systems, where scalability has been important from the beginning. What has changed is the scale and urgency of the need. This is why we decided to acquire Zone 5.

Zone 5 is the most established maker of high-volume and affordable missiles. I'm therefore very pleased to announce today that we have closed the transaction that we first announced in December last year. The California-based company has already developed proven strike and air defense missiles. Zone 5 missiles are designed to be delivered in thousands, even tens of thousands per year. At the cost level is in the 1 in 10 range compared with established high-end alternatives. This makes it ideal to combat low-cost drone attacks or to provide volume for preventive strike.

Kongsberg aims to bring scalable volume to Europe and seeks to establish manufacturing of Zone 5 missiles here. We are looking to enter dialogue with countries that wish to take the leading position and create a European hub for high-volume production. The Zone 5 portfolio will complement our current offerings and position Kongsberg as one of very few companies in the defense industry to offer both high-end and high-volume missiles.

Our order backlog at the end of first quarter was NOK 152 billion. So delivering on our order backlog is always our #1 priority. We have built up our production capacity over the last few years. The Nexus missile factory in Norway is producing at high rate. The same is true to produce NASAMs and remote weapon stations. However, we still have the flexibility to increase production even further in response to rising demand.

In Australia, as you can see on the picture to the right, the construction of the missile factory is progressing well. We are on track to move in, in 2027. And our new factory in the U.S. is also progressing with missiles being scheduled for production in 2028. We will continue to invest in our ability to deliver to our customers on time and budget. New projects will include investments in Europe, and we are currently preparing to set up assembly and manufacturing facilities in Poland, supporting our major contract to deliver counter UAS systems in the country and potentially others.

Now if you allow me to take a few steps back. 2 years ago, Kongsberg launched its 10-years target for revenue and margin development. At the time, these targets apply to the whole group, including Kongsberg Maritime. In June 2024, our ambition was to reach NOK 120 billion in revenue and margin above 15% in 2033. At the time, Kongsberg Maritime and the rest of Kongsberg were roughly equal in terms of revenue. And today, we are ready to launch a new set of ambitions for the new and focused Kongsberg. And there are 3 key market trends driving future growth. Geopolitical uncertainty, learnings from ongoing conflicts and technology development.

These trends all point to strong demand and higher volumes for defense technology. And there are several reasons why we are in a position to raise our ambitions compared with 2024. The overall demand is higher and expected to increase more. We have gained greater market share in key segments. We have scaled up successfully from building more robust supply chains to recruiting the right talent. We have also added production lines and opened new factories. Our portfolio fits the market needs even better. We have strengthened our presence in international markets. For example, we are one of the few companies that are positioned to grow in the U.S. as well as in Europe.

With that in mind, we have set ourselves an ambition to increase revenues to NOK 100 billion in 2029 and NOK 150 billion in 2033. In the same period, we aim to generate earnings before interest and tax above 16%. This is ambitious. We aim to triple revenue from 2025 until 2029 and increase it 5x from '25 till 2033.

So let me end where I started. The world has changed significantly since our last Capital Markets Day. And Kongsberg has changed with it. We are now a focused company with a clear role in markets that are becoming even more important for our customers, for Norway, for Europe and for our allies. Our task is to grow with discipline. Our task is to improve our margins. And our task is to continue to invest in the people, technology and capacity needed for the years ahead.

Thank you to everyone joining us here today and to those following us online. I hope today will give you a clear understanding of the company we are now and the opportunities we see ahead. So with that, I will hand over to our CFO, Martin, who will take you through our financial performance and ambitions in more details. Thank you.

Yes. Thank you, Erik, and a big good morning to everyone. It is great to see so many here today and also a big welcome to those of you that are following us online. In my part of the presentation, I will take you through the financial perspective on Kongsberg Development, our ambitions and the principles that guide how we allocate capital.

As you have heard already, Kongsberg has changed significantly over the past few years. Our current business is becoming more international, and we have narrowed our focus. The foundation remains the same: technology leadership, strong domain knowledge, strong customer relationships, disciplined execution and a clear focus on profitable growth. We are a defense-focused technology company. I will start with a look at our financial development over the past decade, then I will go through our divisions, our financial ambitions and some of the market dynamics supporting these ambitions. Finally, I will spend time on capital allocation, how we think about the balance sheet, investments, shareholder remuneration, portfolio management and also partnerships.

This slide gives a good overview of the journey that we've had over the past 10 years. When we look back, revenues have increased significantly from NOK 10.5 billion in 2016 to NOK 34.7 billion in the last 12 months. EBIT has grown strongly from NOK 0.8 billion in 2016 to NOK 5.5 billion in the last year. Revenues have more than tripled and operating margin has doubled as we have moved from an EBIT margin of 8% in 2016 to 15.8% for the last 12 months. Just as important, we have built a much larger order backlog, and it now stands at NOK 152 billion compared to NOK 14 billion 10 years ago.

The backlog gives us significant stronger platform for future growth that we have ever had before. And as Erik says, delivering on our customer commitments is our #1 priority. And I think one number that illustrates the change very clearly is the order intake. In 2016, Kongsberg had an order intake of NOK 8 billion. In the last 12 months, that number is now NOK 73 billion. And that really summarize the scale in which the entire company has grown. And importantly, this growth has not come from one single event or one single contract. It is the result of long-term positioning across attractive markets, consistent technology development, strong execution over many years.

We have continuously been investing strategically in product development and building technology positions. We have been ahead of the curve in making well-planned investments in capacity for the demand that we have anticipated. We have expanded our defense activities and examples include how we have strengthened our missile business and developed new capabilities such as Counter UAS. We have built leading positions in maritime and ocean-related technologies, and we have continued to win the trust among customers globally. And the point I want to make with this slide is quite simple. Kongsberg has a long history of profitable growth, and the company enters the coming years from a position of strength. At the same time, we are very conscious that strong historical performance does not automatically translate into future performance. And that is the context for the rest of my presentation.

Kongsberg today consists of 3 strong divisions. We have Defense Systems, Missiles and Aerostructures and Discovery. And what is important to highlight is that all of these divisions, they contribute meaningfully to the group on all parameters. They operate in different markets. They have different business models and different order profiles, but they are all strong, they are growing and they are not least profitable. Defense Systems has seen a very strong demand, and this has been driven by the growing need for air defense solutions command and control systems and broader security needs among nations.

In the last 12 months, they delivered revenues of NOK 15.4 billion, up from NOK 9.4 billion in 2023. The order backlog in this division ended at NOK 80 billion last quarter. And it gives you good visibility for the coming years. And Kjetil, the Head of the division, he will come here later and talk about what we are seeing today and what we should expect for tomorrow. Missiles and Aerostructures has also a very strong position. Last 12 months revenues has been NOK 10.3 billion, and this compares to NOK 6 billion in 2023. The missile business is supported by increasing demand for advanced strike capabilities, including both naval and air launch systems.

Aerostructures adds important industrial capability and long-term customer relationships. And together, this division has a significant backlog of NOK 60 billion and strong growth opportunities across the portfolio. And Øyvind, he will add more color to this. Discovery operates in somewhat different markets with a strong offering in both deep sea and space activities. And this is what we refer to as the 2 new frontiers. Last 12 months revenues were NOK 8.1 billion compared to NOK 5.9 billion in 2023. In this business, the time from order to delivery is shorter, leading to a natural smaller order backlog than what you have for Defense Systems and you have for missiles. And it currently stands at NOK 11.3 billion. But Discovery has strong technology positions, leading products and attractive long-term opportunities, and Camilla, she will go through that in further details later.

To summarize, we see 3 strong divisions, each with distinct positions and growth drivers. But at the same time, they are all strengthening each other, 4 current product areas and the 2 new frontiers. The slide also shows the backlog and how it's distributed by year. This is important because it gives us visibility. Both Europe and the U.S. are extremely important to us, and we also continue to see opportunities in selected markets in the rest of the world.

Norway as a technology partner and developer is typically a first adopter of our products and remain a key partner. The size of the order backlog gives us confidence, but it also comes with great expectations, and we really need to deliver. We need to succeed with our expansion of capacity. We need to secure supply chains, and we need to do this while we are protecting quality, profitability and also customer confidence. And that is the financial and operational balancing act that we are currently managing.

As Erik presented earlier, we have a set of clear ambitions for both revenue and EBIT margin, both for the medium term, and we have defined as 2029 and for the longer term, and we have defined that as 2033. Kongsberg will aim for NOK 100 billion in 2029, rising to NOK 150 billion in 2033. And for both mid and long term, we are aiming for an EBIT margin that is above 16%. We believe these numbers are ambitious, but they are grounded in the order backlog that we have secured. It's grounded in the pipeline of opportunities that we see and also in the strategic ambitions that we have put forward.

If we look at the revenue development from 2021 to 2025, the growth has already been very strong. Kongsberg has become a much larger company in a relatively short period of time, effectively tripling our revenue. But the ambition that we are presenting contains an even higher growth rate, implying tripled revenues from 2025 to 2029 and fivefold increase to 2033. This is based on a structured assessment of demand, capacity, technology, execution risk and also capital needs. Put differently, it is a bottom-up assessment of what we believe is ambitious but still achievable ambitions.

To deliver on these ambitions, we need to execute on 3 things in particular. First, we need to deliver on the existing backlog. That means delivering to the customers on time at the right quality and with the right profitability. Second, we need to continue winning new orders. The market opportunity is significant, but competition is also strong. We need to continue to invest in technology in order to maintain our relevance. Third, we need to scale the company in a disciplined way. Growth of this magnitude requires investment, investments in facilities, equipment, people, supply chain and also working capital. We need to invest ahead of demand, but we must also remain financially disciplined.

The EBIT margin that we have put forward reflect this balance. We will improve efficiency and benefit from scale. At the same time, we will ensure relevant product offering with growth over the decades to come. That means investing in R&D and also taking on long-term development projects. While some of these projects will not contribute profit for several years, they may deliver significant growth a decade from now. And it should be noted that we are also exposed to varying FX rates over time, but we are taking active measures to minimize the risk, and we are risking the entire backlog.

So the message on this slide is that Kongsberg has clear financial ambitions, and we believe they are supported by strong market fundamentals, a robust backlog and also leading technology positions. Patria is owned 49.9% by Kongsberg and the remainder is owned by the Finnish state. As such, Patria is not consolidated into Kongsberg's revenue or EBIT. It is accounted for as an associated company, and it is not included in our alternative performance measures due to the owner stake being below the 50% threshold. Hence, I would like to spend just some minutes also talking about Patria.

Patria is a leading defense and technology company headquartered in Finland with strong positions in areas such as armored vehicles, defense systems, sustainment, aviation and also life cycle support. Patria is strategically important to Kongsberg. It gives us exposure to attractive defense markets. It strengthen our Nordic defense industrial footprint, and it provides complementary capabilities to our own portfolio. As an example, we are realizing strong synergies in areas such as remote weapon stations that we install on the Patria armored vehicles and also within aviation maintenance.

Across the business, we continue to see solid growth with armored vehicle segment standing out as the key driver. This is supported by a strong momentum and several major contracts that we have secured over the past year. The backlog remains at record high levels, providing good visibility going forward, but also for Patria, we need to expand capacity in order to deliver on the growth. Improving profitability remains a clear priority for Patria, and this is driven by a dedicated program and also increasing operational leverage.

I will now turn to capital allocation. For a company in Kongsberg position, disciplined capital allocation is absolutely critical. We see significant growth opportunities, but we need to remain selective and focused. We need to preserve flexibility, maintain customer trust and deliver attractive shareholder returns. As we execute on our ambitions, we will generate substantial cash and how we deploy it will be a key driver for long-term value. Our capital allocation framework is built around 4 principles. The first is to maintain a solid balance sheet. The second is to invest in organic growth. The third is to provide competitive shareholder remuneration and the fourth is strategic portfolio management and also partnerships. These principles work together and guide our financial decision-making.

And let me now go through each of these 4 principles. The first principle is a solid balance sheet. And for Kongsberg, we define this as having an investment-grade rating. Kongsberg today is -- has an A- rating with a stable outlook by Nordic credit rating. And this is important for 3 main reasons. First, it is about customer confidence. Many of our customers, they enter into large and complex long-term contracts with us. They need to know that Kongsberg has the financial strength to deliver to support and sustain critical systems over many years.

Second is about financial flexibility. The markets that we are operating in can move quickly, and we need the ability to invest in capacity, technology, supply chains and people when the opportunities arise. A strong balance sheet gives us that flexibility. Third is about access to capital markets. As Kongsberg grows, our capital needs may also increase, meaning an investment-grade profile supports access to financing on attractive terms, but also across market cycles. The graph shows our net interest-bearing debt-to-EBITDA development since 2018. It illustrates that Kongsberg has maintained a strong financial position while at the same time, growing significantly.

Going forward, we will continue to prioritize financial robustness, but that does not mean that we will avoid using the balance sheet. It means we will use it carefully with a clear link to value creation and also strategic priorities. The second capital allocation priority is to invest in organic growth. And this slide focuses on investments in property, in plant and equipment. The growth that we are seeking to realize requires capacity. It requires facilities, machinery, production equipment, test capacity, logistics, digital infrastructure and also a broader industrial footprint.

As this slide shows, our PP&E investments have increased significantly from 2018. Particularly, you see the step-up from 2023 onwards. And that was when we built the Missile factory here in Kongsberg and then subsequently started building in both Australia and the U.S. This reflects the growth of the company and the need to expand capacity across several parts of the group. So far, we've been able to build capacity ahead of the curve based on the demand that we've seen, and our aim is to continue to do so going forward.

We expect to continue investing at a high level. And as an indication, we expect PP&E investments to remain around the 7% to 9% of revenues in 2026 and also 2027 before we expect to return to more normalized levels. And normalized levels for us is more in the 3 to 5 percentage range. Our responsibility is to make sure that Kongsberg has the capacity to deliver both on the current and on the future demand. At the same time, we will remain disciplined. We are investing to support profitable growth and long-term competitiveness. The second part of organic growth is investment into research and development. And this slide shows our capitalized and expensed R&D development over time.

R&D is a central pillar of Kongsberg's competitiveness. We operate in markets where technology is decisive and it's evolving rapidly and customers expect systems that are reliable, advanced but also continuously improved. That means we must not only deliver on existing programs, but also continuously upgrade and develop for what comes next. This requires sustained investment across our key technologies. Over time, we have increased our R&D, reflecting our ambition to remain on the forefront of technology and support the next phase of the growth.

At the same time, it is important to note that a significant share of our R&D is customer funded. And we have programs such as the Supersonic Strike Missile continuing to play a key role in our business model. We also see that the speed of innovation is increasing, which is likely to drive relatively more internally funded R&D going forward. The industry is moving towards increased speed of innovation with more dual-use components. R&D investments will ensure that we maintain our relevance. Overall, this is at the core of the Kongsberg model. Close cooperation with demanding customers, deep technology expertise and continuous product development. Our R&D investments are therefore not only about technology leadership, but it's a key driver of future revenues, margins and long-term strategic relevance.

The third element of organic growth is net working capital. As this slide shows, development from 2018 to 2026 has been very strong, and it has largely been driven by advance and progress payments on major contracts. This reflects the nature of our business. Advanced and progress payments are a feature of the industry, but it has been further supported by the current geopolitical environment. The recent development in net working capital has been unusually favorable and should not be seen as the new normal. Working capital in our business will fluctuate both due to seasonality, but also project timing effects will impact the levels from one period to another.

As we increase activity, invest in capacity and execute on our backlog, working capital requirements will increase. As a result, both working capital and free cash flow should be expected to fluctuate. Our focus, therefore, is to manage working capital tightly while ensuring that we still have the inventory, the supply chain capacity and project funding needed to deliver on the customer commitments. The third capital allocation principle is Cell C shareholder remuneration.

Kongsberg dividends is based on the long-term value creation. It's based on profitability, cash flow and balance sheet strength. Our ambition is to pay a stable and increasing ordinary dividend over time. The left-hand side of this slide shows the development in ordinary and special dividends from 2019 to 2025. And as you see, we have paid ordinary dividends consistently with special dividends on top of that. The priority is to maintain a sustainable dividend profile while preserving the ability to invest in growth. The right-hand side shows the total shareholder return, including share price development and dividends.

The development has been very strong, reflecting both the operational performance of the company and also the market's recognition of the opportunities that we have ahead. Included in the graph, we also see the Oslo Stock Exchange and also the Europe Defense Index. And both really illustrates the extraordinary shareholder return that Kongsberg has delivered. Our focus is long term. Shareholder remuneration must be balanced against the need to invest, maintain financial flexibility and preserve a solid balance sheet. So the principle is clear. We aim for stable or increasing ordinary dividend over time with additional distributions assessed when appropriate based on capital needs, financial position and investment opportunities.

The fourth capital allocation principle is strategic portfolio management, and we will continue to evaluate opportunities that can strengthen the group strategically, technologically and also commercially. M&A is an important tool for us to be used to realize our key targeted strategic positions. And I would like to use affordable missiles and Zone 5 as an example. Two years ago, we identified the need to complement our high-end missile portfolio with lower cost but high-volume missiles. We started planning for the internal development. But at the same time, we started a targeted M&A search to see if we could find similar capacities. We both identified and secured Zone 5, and this has allowed us to improve the time to market for both strike missiles, but also for air defense missiles. Also, this allowed us to focus our own internal development resources to focus on delivering on the backlog, delivering on new orders and also the 3SM development.

We will continue to evaluate M&A as a strategic tool, and we are open to opportunities that are a natural extension of our existing positions, adjacent areas where Kongsberg has relevant competence customer relationships, but also industrial logic. This includes technologies, capabilities or market positions that complement what we already do. We are not dependent on major acquisitions in order to deliver on our ambitions. The organic opportunity is already significant, but we are actively seeking bolt-on M&A targets. And in addition, we are, of course, monitoring and evaluating more transformational M&A opportunities. Portfolio management also means continuously assessing where Kongsberg is the best owner, where partnerships make sense and where capital can be deployed most efficiently.

Finally, I want to highlight the increasing importance of joint ventures and also partnerships. And as Kongsberg grows, partnerships become even more important. They allow us to combine capabilities, share technology, access markets, increase capacity and also strengthen our customer offerings. And we already have several important examples. These partnerships are part of how we innovate, how we scale and how we deliver. In many of our markets, no single company can do everything alone. Customers need integrated solutions, industrial cooperation, local presence and also long-term support. And partnerships, they are critical in meeting those needs.

Going forward, we expect joint ventures and partnerships to remain an important part of Kongsberg's growth model. They support innovation, they support capacity and they support access to markets and customers. So our 4 capital allocation principles are all key in order to secure long-term growth in order to realize our ambition of NOK 100 billion in 2029 and NOK 150 billion in 2033, and this will provide strong long-term shareholder return. Thank you.

Thank you, Martin. The next speaker is Kjetil Reiten Myhra, President of the Defense Systems division. Some of you may recall his presentation on our Air Defense Systems, NASAMS, during our last Capital Markets Day in 2024. And we're excited to provide you with an update of the development of NASAMS, the NASAM solutions since then, along with an overview of some of the other systems and solutions offered by our Defense Systems division. Kjetil, the floor is yours.

Thank you, Jan Erik. And it's very nice to be here today, and I'm going to talk you through some of the main aspects of Defense Systems division here in Kongsberg. It is a large division. We have a very wide and varied portfolio. So today, I will have to focus on some of our main areas, growth areas, namely ground-based air defense systems, remotely controlled weapon systems and robotics and counter UAS or anti-drone solutions. But before I dive into that, let's just have a little look at the division as a whole.

The division comprises 5 business units, all responsible for running their own profit and loss. The business units are Advanced Solutions, doing a lot of very different things, but mainly Air Surveillance, we do fire support systems and, of course, Digital Towers. Air and Coastal Defense Systems that do ground-based air defense and coastal defense. We have Naval Systems running our combat systems for our submarines and surface vessels and also our unmanned surface vessel initiatives. And then we have Land Systems with remote weapon stations, medium-caliber turrets, anti-drone or counter UAS systems and robotics. And then lastly, we have Emerging Business where our Vanguard, our standardized vessels, our uncrewed surface vessels and so on and all those initiatives are located.

So 5 separate business units and pushing forward into the market together. As I said, the division has a large portfolio. And even though it might seem quite diverse, the underlying technology is the same. A common thread across the business units is systems engineering for advanced systems for demanding environments. So we share a lot of the technology shared across the business units, even though some of the application areas seem diverse. Also, we employ artificial intelligence quite heavily, both in our development systems to increase efficiency in development, but also into our products to help the users of our systems to easily -- more easily operate the systems. But now let's dive a bit deeper into the specific areas, as I mentioned earlier.

Kongsberg is the #1 provider of remote control weapon stations or RWS, with more than 30,000 units delivered worldwide. The common remotely operated weapon station or CROWS has been in active production and use with the United States Armed Forces since the early 2000s. The station supports a wide range of guns and effectors ranging from small caliber machine guns to 40-millimeter grenade launchers and anti-tank missiles. The station is integrated on an ever-growing number of vehicles and platforms, both tracked and wheeled providing unrivaled flexibility. And you see some examples on the pictures on the slides here today.

The system fully supports integration and employment on uncrewed and unmanned robotic platforms. The weapon station is constantly evolving and expanding its capabilities, ensuring the system adapts to new and emerging threats and needs. The medium-caliber turret or MCT is a rapidly growing product line now entering full rate production in our Johnstown, Pennsylvania facility in the United States. The U.S. government have contracted more than 250 turrets to date. The 3 main programs is the U.S. Marine Corps Amphibious Combat Vehicle or ACV program, the U.S. Marine Corps Advanced Reconnaissance Vehicle or ARV program and then the U.S. Army Stryker vehicles to Bulgaria through foreign military sales.

The MCT or the medium caliber turret is a modular lightweight upgradable uncrewed turret. It has an unrivaled precision. It is a dual roll capable turret, meaning it can simultaneously engage ground and air targets. The U.S. Marine Corps ACV program has also added the turrets and Amphibious capabilities, allowing it to be fully submerged in water. The turret is also a natural counter UAS or anti-drone effector. It is a core capability of the recently announced Polish drone wall program, dubbed SAN. The extremely versatile lightweight and high-precision turret is highly sought after in the market, and we expect significant growth for this product line in the coming years.

Over time, we have evolved our RWS and MCT systems into very capable, cost-effective anti-drone solutions. This started long before the war in Ukraine, and we have years of experience built into the solutions already. We have been a partner to the United States Marine Corps and their Marine Air Defense Integrated System or MADIS program since the beginning. The system is based on a heavier version of the weapon station with a lightweight 30-millimeter cannon that supports airburst ammunition. The heavier weapon station also incorporates very short-range air defense missiles like the Stinger missile.

The system has been deployed with active troops in the Pacific since late 2024 and is in full rate production in our Johnstown, Pennsylvania facility. The Typhoon system based on standard RWS systems modified to support the anti-drone mission has been operational in Ukraine for some time. We work 24/7 with Ukraine's Armed Forces and industry to continuously evolve and adapt the system to optimize effectiveness. It has proven to be very effective against drones and have even successfully engaged cruise missiles.

Earlier this year, Together with Polish industry partners, PGZ and APS, Kongsberg was contracted for the first tranche of the Polish drone wall program. The program has a very aggressive schedule to ensure capability is provided to the Polish Armed Forces quickly. The program is also part of the European Union's SAFE program, enabling other nations to join easily. The drone threat is evolving at a high pace, and the defense systems must be versatile and flexible to evolve with the threats. This is at the core of our RWS and MCT solutions as they are designed for continuous evolution.

The number of sensors and effectors that have been integrated is long and varied and is a testament to its adaptability and open architecture. This includes new and emerging effectors such as interceptor drones, electronic warfare systems, lasers and so on. NOMADs is a new air defense system designed to operate integrated with maneuver forces, such as Army cavalry formations, providing air cover. The system is a short-range air defense or SHORAD system capable of autonomous operation and fully integrated in a layer air defense architecture. The SHORAD fire unit is a platform-agnostic and can be mounted on any capable vehicle, be it tracked or wheeled.

In Norway and the Netherlands, the SHORAD fire unit is mounted on the ACSV tracked vehicle providing extreme mobility, again, as you can see on some of the pictures on the side there. The Norwegian configuration uses the Iris-T air defense missile, while the Dutch configuration uses the AIM-9X air defense missile. Each vehicle constitute a complete fire unit with sensors, command and control, communications, launchers and effectors, but fire units can also be controlled from other units on the network. The system integrates seamlessly into integrated air and missile defense architecture, both higher echelon systems such as NASAMS and peer or subordinate units such as anti-drone or counter UAS systems and very short-range air defense systems.

NASAMS is the selected medium-range air defense system of 18 nations. It is the most sold air defense system of its class, and we experienced significant and growing interest worldwide. We are also seeing existing NASAMS users coming back for upgrades and additional equipment. NASAMS is combat proven. In Ukraine, the system has a significant number of successful combat intercepts with unrivaled effectiveness. It is proven to be highly effective. The AMRAAM and AIM-9X effectors are widely used in Western armed forces. The flexibility of the NASAMS effectors ensures that any stockpile any nation might have can be used on their fighter aircraft and on NASAMS simultaneously. So any stockpile you have, you can actually make use of directly.

NASAMS is an open and flexible system and has already integrated other effectors such as air defense guns, low-cost interceptors, lasers, high-power microwave and interceptor drones. There are decades of knowledge, lessons learned and optimizations built into the system that cannot be copied or emulated. And NASAMS is always evolving through continuous engineering. Now as you have seen in recent conflicts, the threats nations must handle are numerous, ranging from advanced ballistic and cruise missiles through traditional air breathing targets to mass-produced cheap drones.

Full spectrum Air Defense offers the potential to address multiple threats through an integrated system architecture, thereby streamlining operations and increasing the ability to efficiently handle complex scenarios. Solving this problem with different systems for each task is not only expensive to purchase, but also to use and maintain as the personnel, training, maintenance and sustainment requirements increase manyfold. NASAMS has been designed from the start to require very low manning and operational costs. Developing the capability into the ATBM or anti-tactical ballistic missile domain is a natural next step.

Throughout the history of NASAMS, Kongsberg has successfully integrated a wide range of sensors and effectors and ATBM components can be integrated with little effort due to the system's open, modular and highly flexible architecture. AI is actively used to provide improved decision support in areas such as the evaluation and weapon allocation, significantly reducing reaction times and operator workloads.

The Full Spectrum Air Defense solution, although an integrated air and missile defense solution by itself carries forward the openness of the system to integrate closely and in real time with other systems into larger integrated air and missile defense networks. The Vanguard system is centered around how crewed vessels can operate and support uncrewed vessels or uncrewed systems, augmenting the capability of the host vessels. A key goal of the design is to break the cost curve and increase affordability by being as civilian as possible and only as military as necessary. Modern weapons have ranges and capabilities forcing crewed platforms to operate at distance.

Vanguard vessels can be equipped with long-range strike modules when required, bringing significant firepower to the theater. This provides the -- this drives the accelerating trend towards a reality where combat is primarily executed by uncrewed systems, either remote controlled or autonomous in all domains, be it air, surface or subsurface. At the heart of the design is the understanding that the system will consist of a range of platforms, both crewed and uncrewed requiring manned, unmanned teaming or MUM-T to be a core capability.

The Norwegian standardized vessel program consists of up to 28 vessels, 10 larger ocean-going vessels and 18 smaller coastal vessels. Kongsberg together with SALT Ship Design has been awarded the design contract for this vessel program. And we will develop the design of these vessels in close cooperation with the Royal Norwegian Navy. Further, together with Adaptive Marine Solutions in Canada, Kongsberg and SALT Ship Design has also been awarded a design contract for the Canadian Coast Guard for their mid-shore multi-mission vessels, of which they intend to procure up to 6 vessels. We see a growing interest in standardized vessels and cheaper and military combat vessels and the list of interested nations and navies are growing day by day.

So with that, I would like to conclude my walk-through of the highlights from the Defense Systems division. Thank you.

Thank you, Kjetil. We will now have a short break and reconvene and continue at 10:40 sharp. The webcast will be on break during that part of the program. Thank you.

[Break]

The next speaker is Øyvind Kolset, President of the Missiles and Aerostructures division. He has been with Kongsberg for 28 years and has been the President for the Missiles and Aerostructures division for the last 9 years. We are excited to have him present more about what the Missiles Aerostructures division is doing and how the division has expanded capacity during the recent years and continue to do so. Øyvind, the stage is yours.

Thank you, everyone. Today, I'll walk you through our missile portfolio and also the market position within Strike missiles. But first, let me briefly introduce the division. We consist of 4 business units, each with profit and loss responsibility and a distinct product portfolio. Beyond missiles, we are a key supplier of advanced aerostructures, delivering panels and components for the F-35 as well as building a growing maintenance, repair and overhaul business, now expanding beyond Norway into international markets.

Today, however, I will talk exclusively on the missile portfolio. We believe we offer the most advanced and modern range of maritime strike missiles available. We are already firmly established with a broad and growing set of Tier 1 customers in America, Europe and in the Pacific. So far, 15 nations has selected our strike missiles. We are in a significant replacement cycle. Thousands of legacy maritime strike missiles approaches end of life. This creates a substantial and sustained demand where the naval strike missile has clearly established its leading solution for capturing those opportunities.

The NSM is the most advanced maritime strike missile currently available. Its combination of stealth design, precision guidance, autonomous target recognition and high survivability delivers a real level of capability that sets it apart in the market. That is what positions the NSM as a fifth generation strike missile, a capability that cannot be replicated in short term. We see a strong momentum across multiple key markets with active sales campaigns. At the same time, our existing customer base represents a significant source of repeat business as nation continue to build out their inventory, driving follow-on orders and long-term revenue.

Another important driver is life cycle value. NSM is not a static system. It's continuously evolving through ongoing development. New functions and enhanced capabilities are introduced over time, ensuring product remains high end while also creating opportunities for upgrades and sustained customer engagements. Finally, we are expanding the addressable market through platform integration. The NSM has been designed for ease of integration, and we are actively working with platform providers to enable deployment across a wider range of systems. This includes expansion into the underwater domain with a sublaunched version of the NSM, the NSM SL for integration on submarines and unmanned underwater vehicles, which aligns with Kongsberg's broader strategic position in advanced underwater capabilities.

One area we see strong potential is land-based maritime strike. The NSM Coastal Defense System represent a cost-efficient solution for protecting coastlines against maritime threats. From a value proposition perspective, this is important as it offers customers significantly lower cost alternative to traditional naval assets, while still delivering credible deterrence through mobility and distributed units. This value proposition has already been validated in the market. The system has been selected by U.S. Marine Corps as part of the Nemesis program, a highly mobile ground-based capability designed to engage enemy vessels from both coastal and inland position.

The Nemesis also demonstrates commercial strength, speed of deployment and ease of integration. From initial concept to full live firing demonstration of the whole system took less than 21 months. That is a strong indicator of both the missile systems maturity and our ability to rapidly convert customer requirements into operational capability. From a business model perspective, the NSM Coastal Defense is highly flexible. We can deliver a complete system integrated with command and control vehicles and sensors. Alternatively, we can provide the missile system stand-alone for integration into existing customer architecture as we have demonstrated with the U.S. Marine Corps.

This flexibility expands our addressable market and allows us to participate in both full system procurements and incremental upgrades. We believe this unique combination of high performance and affordability will drive increasing market interest.

The Joint Strike Missile, JSM, is the air-launched counterpart of the NSM, and it represents another growth platform for us. It's uniquely engineered to fit inside the internal bomb bay of the F-35, and it remains the only powered strike missile in its class with that capability. This is a key competitive advantage. It directly aligns the missile with the core operational requirements for the F-35 program, one of the largest and most long-term defense programs globally. As a result, JSM is positioned inside a structurally growing market. The combination of the missiles range with the F-35 Stealth creates a high-value capability, both for maritime strike and advanced land targets.

Importantly, the development risk is now behind us. The missile is fully developed and final integration on F-35 is expected to be completed later this year, then transitioning into full rate production and deliveries. Even though we're not integrated fully, all the test has been done yet, we do see a strong market validation. 5 F-35 nation has already selected the JSM. It's U.S., it's Germany, it's Japan, it's Australia and Norway. This creates both near-term revenue and long-term growth potential. We expect additional F-35 partner nations to select them out over time, combined with follow-on orders as existing customer build depth in their magazines.

This week's additional order from U.S. Air Force valued at USD 270 million is a clear example of that repeat business dynamic. Another example is Germany's follow-on order of NOK 3.5 billion just 3 weeks ago. The JSM is designed with scalability in mind. While it's optimized for internal carriage, it could also be carried externally, allowing customers to increase payloads when required. This enhances its operational flexibility and broadens the addressable market.

Beyond the F-35, we are actively working on integration opportunities across multiple platforms, including a growing interest for the P-8 maritime patrol aircraft as well as other fixed wing and unmanned systems. This multi-platform strategy is important as it unlocks revenue streams over time. Finally, the JSM follows the same model as the NSM, a continuously evolving product. Ongoing development ensures that the missile remains effective against emerging threats while also supporting upgrades and life cycle revenue opportunities across an expanding user base.

So in parallel with this, we are expanding our portfolio. One of the direction is within the Supersonic domain. The 3SM is the way we are doing that. It's being developed now with full funding from Norway and Germany with significantly reduced -- that significantly reduces financial risk while it's positioning us for long-term growth in another high-end segment of the market. We expect this missile to be ready for deployment in the mid-2030s, and it will for us, represent a step change in capability addressing advanced maritime and land targets at long ranges in highly contested environments.

And important, this one does not replace NSM or JSM. It complements our existing portfolio. The NSM and JSM will continue to serve the subsonic mission profiles, while the 3SM expands our offering into a new segment. From a technology perspective, 3SM will incorporate several new technologies, including a new engine technology that delivers higher speed and longer range relative to size and weight while still supporting precise time on target by variable throttle control for coordinated strike operations. In addition, the missile will feature a highly advanced sensor suite, combining multiple sensing technologies with intelligent data fusion, further strengthening its effectiveness in complex threat environments.

Another key factor for 3SM is platform comparability. It's planned for integration in the Mark 41 vertical launch system, which is already deployed on more than 200 naval vessels globally. This provides a strong foundation for future potential. Even though it's early in the development phase, we are already seeing interest from allied nations, reflecting the relevance of this capability. At the same time, we do expect competition from both U.S. and European players in this segment, and we are positioning ourselves accordingly.

Also expanding our portfolio in other direction. That is with the affordable mass. And for us, the term affordable mass does not only mean low cost. Affordable mass is more about the ability to scale production and deliver capabilities that is operationally relevant in volumes. That requires both design for manufacturing and the performance that remains effective in high-volume deployment scenarios. As Erik stated earlier, we entered this segment through the acquisition of Zone 5 Technologies. They are the recognized leader in affordable mass producible munitions with a product portfolio that includes counter UAS and cruise missiles.

This includes the Rusty Dagger that's an air launched strike missile optimized for mass production with the ground launched variant in the road map. Complementing is White Spike, it's a drone interceptor built on the same production philosophy engineered to deliver cost-efficient response with a price point that aligns with the threat it's designed to counter. The portfolio is further strengthened by the Paladin, an advanced unmanned aircraft system that serves as a multi-mission autonomous platform. This acquisition adds a distinct and complementary capability to our portfolio.

Zone 5 brings proven expertise in rapid development, scalable production and cost-effective missile design. From an investment perspective, this creates several important advantages. First, it expands our addressable market into a high-growth segment driven by evolving operational concepts and increasing demand for large volumes. Secondly, it strengthens our positions in the U.S. market and including access to programs and opportunities in U.S. that requires a domestic footprint. Zone 5 has already established a strong traction with contract awards and participation in key U.S. programs, including the U.S. Air Force family of affordable mass missile initiatives as well as related export efforts.

Going forward, we see clear opportunities to scale this business. Zone 5 will remain a hub for innovation and development of disruptive products, while Kongsberg will leverage our industrial capabilities and global market access to drive international growth. This includes establishing production capacity outside the U.S. to serve customers in Europe and in the Pacific, further supporting scalability and market reach. We also see a strong portfolio synergy. By combining Kongsberg's high-performance missile systems with Zone 5's high-volume, cost-efficient solutions in the same operations, we are positioned to offer a broader and more flexible set of capabilities across both strike and air defense.

Our #1 priority will always be delivering on our backlog. Our reputation and ultimately, our long-term value creation depends on meeting our commitments consistently every time. To support this, we began expanding our missile production facility capacity several years ago. A key milestone was the opening of the Nexus facility in June 2024. That was a greenfield factory purpose-built for efficient, high-volume series production of missiles. And we are immensely proud of the speed and the quality of our Nexus execution. Within just 3 months of opening an empty building, the first missile came out of the Nexus production line. Since then, we have achieved a highly successful ramp-up, both accelerating faster than originally planned and exceeding our initial stages.

So I'm allowed to show you the growth, not by numbers, but you see the -- compared to -- this is -- this slide shows from 1970 our missile production until the anticipated 2030. So as shown here, the scale-up is significant. For us, this is a step change compared to historical production levels. But it demonstrates our ability to scale and industrialize in line with the growing market. And for us, this ramp-up is ongoing, and our execution so far gives us confidence in our ability to support further growth.

Nexus now serves as a proven foundation for international expansion. We are in process of establishing additional missile production facilities in Australia and U.S. These will be based on the scaled version of Nexus, the same concept and expected to become operational in 2028, further increasing capacity and strengthening our proximity to key markets. In parallel, we are strengthening the resilience in our supply chain that is required to fill all this factory with parts. This includes securing flow of critical components across all production sites as well as introducing local suppliers to improve robustness and simplify logistics.

So as a summary, across Kongsberg's Strike Missile portfolio, we are building a set of complementary growth platform. The NSM combines leading position in the large replacement market with clear competitive advantages and a business model that supports both new sales and long-term recurring revenue, making it a driver for future growth. The JSM adds a unique competitive position tied to the global F-35 program. With a growing installed base of high-end platforms, it provides a strong and durable contribution to long-term value creation.

In parallel, we are expanding our portfolio. With the 3SM, we are entering into the supersonic segment, broadening our addressable market with a next-generation capability developed with strong government backing and through Zone 5 technologies and our entry into the affordable mass domain, we are adding a scalable, high-growth component that really strengthens our competitive position in an emerging market. Taken together, this portfolio positions us for sustained growth across multiple segments, but none of this matters without execution.

Our #1 priority is clear: deliver on our backlog. To support that, we have built and continue to build the industrial platform required to scale production globally. Because as I stated earlier, and I cannot emphasize this enough, our reputation and ultimately, our long-term value creation depends on meeting our commitments toward the customers and toward our shareholders consistently every single time. Thank you.

Thank you, Øyvind. The next speaker is Camilla Kiss, President of the Discovery division. Camilla heads the division that covers what we refer to as the 2 new frontiers, underwater and Space. She took on the role as President for Discovery on January 1 and holds experience from multiple roles across the company. We look forward to hear Camilla -- hear what Camilla has to present about Kongsberg's systems and solutions in the underwater and space domains.

Well, thank you, Jan Erik. And ladies and gentlemen, now last but not least, allow me to introduce you to the third division, the Discovery division, which is the Civil and Dual-use division in Kongsberg. Discovery delivers technology, product and solution from the deepest sea to the space, 2 of the most demanding frontiers within technology and environment. And in these domains, Kongsberg has over the year, built a very strong position, and we see significant opportunities for further growth going forward. One of the strongest market drivers in the space domain today is the need for sovereign constellations across Europe. We have capabilities in Kongsberg across the full space value chain from EU's largest manufacturer of small satellites to the launch access through Andøya and the world-leading global reach through the ground stations through Kongsberg Satellite Services or KSAT.

In the ocean, both on the surface and in deep sea, autonomous systems such as HUGIN is beginning to have the same transformative effect as aerial drones have had in the air. The relevance of this technology is higher than ever, and we have a broad set of products and system offerings within this domain. We have a large portfolio in Discovery far beyond what I will be able to cover here today. But the combination of Kongsberg's defense domain knowledge and market access together with our world-leading technologies is, in many ways, in fact, a perfect match. And I will share with you some of Kongsberg's key priorities and how we will secure our position within the 2 frontiers space and underwater.

As the geopolitical landscape becomes more demanding, security challenges is rising fast. This is especially visible in the Arctic and in the Indo-Pacific, where strategic competition is intensifying and increasingly playing out at sea. And these are vast remote and contested areas. They're difficult to monitor, they're difficult to control, and they're critical both from an operational and a strategic perspective. And this is why we see nations investing more in maritime domain awareness, persistent surveillance and the ability to operate effectively in contested environments.

Space for Defense is a strategic initiative. It's focused on delivering critical capabilities such as secure communication, surveillance and missile detection. And with our strong position across the space value chain, Kongsberg is well positioned to capture future growth in space market with existing dual-use technology also in this domain. The space market is currently undergoing a fundamental transition from a niche domain dominated by few large and complex satellites in geostationary orbit to distributed scalable infrastructure based on constellations of small satellites in low earth orbit. And driven by technological advances and industrialization, the market is growing towards smaller, more affordable satellites deployed in large constellations, and that enables a higher revisit rate, lower latency and more resilient services.

This shift is dramatically reducing the cost per capability, opening the market to new players and new use cases, and it is accelerating innovation. At the same time, space is becoming critical infrastructure, supporting communication, navigation, security and surveillance, increasingly essential, both for civil society and for defense purposes. So in sum, the space is transitioning from a high-cost niche market to a scaled mission-critical domain, where affordability, responsiveness and data availability drive both the demand but also the investments.

At sea, by using sound in water for precise underwater operation, Discovery has a world-leading position in the underwater segment. Our autonomous underwater system, HUGIN, will grow even more advanced, even more specialized and mission-ready, and I will come back to that a bit later in my presentation. Our strength is the combination of deep domain knowledge and rapid innovation. Built on decades of investment in dual-use development, we can adapt proven already proven technologies quickly and capture growth both in the defense and in the civilian markets. And that positions us well both for the sustainability trend and for the security trend, 2 trends that increasingly goes hand in hand.

The implication is that the same core technology can serve both the civilian and the defense markets. And let me show you a few practical examples of what that actually looks like. The first example on your left here is how we are applying the technology from our fishery sonars to develop and deliver our naval sonars. It's based on our hydroacoustic expertise, which is sound in water. As part of the Kongsberg scope, we are supplying different naval sonars to the German, Norwegian submarine program.

Moving over to HUGIN. You see that more than 30 years development illustrates how HUGIN has expanded from civilian tasks such as pipeline inspection to mine detection and more advanced defense operations today. Another example comes from dynamic positioning, where technology developed for precise vessel positioning has been adapted for defense use. Combined with defense domain knowledge, it has enabled us to develop a drone detection radar that can detect, identify and track threats from platforms such as remote weapon stations and uncrewed surface vessels.

Finally, space is evolving rapidly with growing emphasis on sovereign capability. Satellites and technology, once used mainly for weather forecasting and environmental monitoring are now increasingly supporting mission-critical data needs. And AI is embedded across all of the products that you see behind me today. This is to strengthen the navigation, identification, observation, mapping and protection. What this means for us is that demand is increasingly moving towards capabilities where we already have a strong position. One of the strongest examples of this model is the HUGIN, where long-term technology development has created a platform that is highly relevant for defense. And operating underwater is highly challenging. Highly challenging. It's difficult to see underwater. It's difficult to navigate underwater.

Over decades, we have built world-leading undersea technology in sensors, navigation, autonomy, communication and in energy systems. And that foundation has enabled us to develop HUGIN into a platform that fits the defense market very well. And it is the strong knowledge to the technology and the combination of these technologies into the platform that really makes HUGIN unique. Demand for autonomous underwater vehicle is growing strongly, and HUGIN is a key platform in our undersea warfare offering. which can combine autonomous underwater and surface vehicles with other sensors, effectors and command and control capabilities to deliver a more integrated operational concept.

We've also developed complementary capabilities such as seabed change detection, which is important for both mine hunting and protection of critical infrastructure. And we use AI-based automatic target recognition to improve detection, classification and a safer disposal of unexploded ordinance. Combined, this gives Discovery a strong position in the defense market. Civilian market will remain important for us, both as a source of continued business and as a driver of further technology development. But we still expect the defense to be the main growth driver in the undersea domain over time. And a key point is that this is not just a strong position for today. It is a scalable platform for future growth and future innovation.

The Kongsberg HUGIN family covers the full spectrum of autonomous underwater operations from rapid coastal missions to deep water and long endurance operations. The systems are in use by navies across 5 NATO countries today. And the system is recognized internationally as a leading mine hunting system in challenging waters. Our position in the undersea defense is built on deep domain knowledge, strong technology foundation and a growing demand. That enables us to innovate faster and adapt proven technologies to new defense needs and expand HUGIN into a broader mission role from payload integration and advanced mission profiles to future weapon-related concepts such as sub-launched NSM, as Øyvind mentioned earlier as well.

And you can see on the slide behind me and see 2 future HUGIN models already in concept phase and development. Undersea is a highly advanced field with significant barriers to entry, and we have a world-leading position today. So far, I've focused on the undersea. Let me now turn to the second frontier, where we see a similar attractive strategic position in space and especially within space for defense. The evolving geopolitical landscape is driving nations to prioritize sovereign capabilities in critical domains and space is becoming an increasingly important domain for defense and for intelligence.

Modern forces rely on space to communicate, observe, understand and respond while adversaries increasingly target these dependencies. Advancer into smaller satellites, standardized platforms and the growing reliability of commercial off-the-shelf technologies have lowered barriers to entry and accelerated deployment time lines, enabling government and militaries to rapidly feel and scale space-based capabilities. Space for defense is all about turning space-based data and connectivity into an operational advantage. In practice, that means secure connectivity and communication combined with ISR or intelligence surveillance and reconnaissance to improve situation awareness, decision-making and targeting.

These are the capabilities that matter most today. As more satellites are deployed and data becomes available with lower latency, these capabilities will continue to expand. The same technological backbone that supports connectivity, communication and ISR today can, over time, also enable more advanced defense applications such as missile early warning. Looking ahead, responsive space will become increasingly important. And by responsive space, I mean the ability to deploy, to adapt and restore the space capabilities quickly as needs changes. This will be critical for making space systems more agile and resilient. And the global space economy is growing.

It was estimated at around $630 billion in 2023, and estimates indicate that it can grow to $1.8 trillion in 2035. At the same time, government and institutions across key markets are increasing investments in sovereign and defense-related space capabilities. One example is Germany's Defense Minister, Pistorius, who has announced a spending of EUR 35 billion in space-related defense capabilities by 2030. Kongsberg has already partnered with OHB, Helsing and Hensoldt and are positioning for the German program. So the market opportunities are attractive, no doubt about that. And Kongsberg has built a strong position across the full space value chain. We are world leading in small satellites production in Europe with more than 300 satellites in our backlog. We produce and integrate highly advanced sensors combined with core space technologies. And we have advanced manufacturing capabilities here in Kongsberg, in Horten and in Vilnius.

Kongsberg has launched access through our ownership in Andøya Spaceport and real-time data reception through KSAT's global ground system -- ground station system. Finally, the combination of fusion of multi-sensor streams capabilities and domain knowledge enable us to deliver actionable intelligence to the user interface. And as with the undersea domain, we see continued promising opportunities in the civilian market, although the major growth is expected to come from the defense market.

So in space, this combination of technology, industrial capability and operational infrastructure is our strong competitive advantage. It gives us a strong foundation to support defense customers with low latency, sovereignty and mission relevant space capabilities. In Kongsberg, our defense domain knowledge is strong. And with decades of experience in the space industry, we have also built a strong ecosystem of partners and expertise. By bringing together satellite production, data reception, launch access and domain knowledge, we're well positioned to become a leading European partner within space for defense. And that rounds off the 2 strategic frontiers under sea and space. Thank you.

Thank you, Camilla. We're now about to start the Q&A session of today's program. So -- and I would like to welcome all of the speakers back on to the stage.

To kick off the Q&A session, I will begin with an opening question. We will then turn to questions from the audience present here today, followed by questions submitted by participants joining us through the webcast. So thank you. And let's begin. Eirik, how ambitious would you consider these ambitions to be?

Well, I think I consider it to be a high ambition. But also I would like to mention that it's achievable and realistic in the way we have established this ambition. If we look at how we have come to these numbers, well, we have the order backlog. And then we also have different sources how we can look at what the revenue will look like, and we look at budgets in different countries. We are in direct contact with customers, governments to see what the future looks like.

So putting this together, that's where we have the NOK 100 billion and NOK 150 billion numbers as ambition. If I could have a couple of comments on the margin. I think we mentioned above 16%. I think we look at this as a not a ceiling, it's more a floor. This will vary over quarters. That is what we have experienced earlier as well. But I think when we do scaling of our production, for instance, we can take out cost and be more efficient. So scaling and producing more of the same is good when it comes to margins. So that's clear.

At the same time, we heard several times today mentioning that deliver on our commitments is the most important thing we can do. If you have a happy customer, they will order more. So we have to be successful in investing and do the ramp-up. At the same time, to stay relevant in the future, we have to do investments. We have to do -- develop new features or new things. So this is a balancing act we are doing. And that's why we have put up this ambition level when it comes to the margin level.

And I think maybe, Martin, you could explain a little bit how this contributes to the margin, the way we look at it.

Yes. So I think you said it well. If we were to compare it with an EBITDA level, our depreciation and amortization is at least for the last 12 months, around the 4 percentage level.

Very good. Thank you. And so Renate Tegdal will walk around with a microphone and please introduce who you are and who you represent before asking the question. So we have a question on the first row here.

Fabian Jørgensen from Pareto Securities. On the margin again, I think for the last 3 quarters, the EBITDA margins have been above 20%. And you talked about scale a lot on the Q1 report. And now basically, the low end at least target implies no scale. And if you would then assume that you have now roughly NOK 8 billion, NOK 8.5 billion, something like that in personnel costs, this would imply that you would either hire 30,000 more people by 2033, alternatively that your contribution margin, which is roughly 60% now is coming significantly down. So what do you base the low end on? It seems very low to me.

Well, I think Martin could go. We are not planning to have 30,000...

New employees...

Immediately.

Yes. So if you look at our historical margin levels, as I showed in one of the slides, it has close to doubled over the last 10 years. And it is now very high if you also compare it with the industry in general. So I think the -- what we have delivered, so 15.8% is what we have on the last 12 months basis is a good improvement, and it has increased a lot. When it comes to the future, I think Eirik covered it quite well. It is very much dependent on what type of contracts we have, the production level, are we producing what we have produced before? Are we doing newer things? How much are we investing? What type of investments are we doing in R&D and also customer financed projects.

All right. Just one more. On the full spectrum air defense, there's a significant undersupply of antiballistic missiles in the market. We know that Norway now has moved up their investment decision on the long-range air defense to 2027, which opens up for the full-spectrum air defense.

And we also know that Ukraine and you guys and some others are jointly developing a new potential product on antiballistic capabilities. With the bottleneck mainly being on the missile side, to my understanding in interceptor production, how will you get around that issue even when you can produce the system?

So I think to -- you're absolutely correct that the pressure point on long-range ATBM, air defense and full-spectrum air defense is actually on the interceptor side on the missile side. So we are working actively with the current suppliers. Of course, we are partnering with some of the key suppliers on this. They are working very actively to increase their production levels and production rates. But of course, we're also then working alternatively with others to also develop new capabilities and new missiles that can come quickly into the market. So this is a development process that we are putting forward, and we're working with multiples. So we're not just single on one path forward. We actually have multiple paths already underway.

Hans Erik Jacobsen, Arctic Securities. You announced the acquisition of Zone 5 today, although it has been planned for a long time. I just wonder, have you included that in your revenue guidance going forward? And regardless of that, could you give us some guidance on what kind of revenues you are looking for in '29 and '33, respectively? Also on Vanguard, is that project included in the revenue guidance?

Maybe.

I can start. So first of all, on the Zone 5 acquisition, we have -- I mean, I think Øyvind covered it very well, a strong belief in the company and what it can add our capabilities for Kongsberg. We -- when we also talk about our ambition levels of 2029 and 2033, we said that this includes type of bolt-on acquisitions that fits very well with what we are doing. So the Zone 5 as an example, is another way of realizing our strategic ambition. I mean, we could do it ourselves or we could buy that capacity. So as such, yes, Zone 5 is included in 2029 and 2033 ambition. When it comes to Vanguard, maybe you want to. Yes, comment on that.

I think -- well, let's take a few steps back on Vanguard with the standardized vessel program in Norway, we start there. First of all, I think it's very good that Norway has started the program and it is part of the long-term plan. How it's phased into the operational settings, we still are awaiting how that will be laid out. So -- but we, as Kongsberg together with SALT, we won the design contract, which is very good. That puts us in a very good position for developing the design that can be utilized.

And also just mentioned that we see a very good interest from international customers as well related to this standardized vessel program. At the same time, as we do the design, the customer or the Norwegian government, they are in the planning phase how to procure the system or systems. Our expectations or what we think is that this will be done in batches. So that, yes, we do have numbers in our '29 and '33 forecast or ambitions.

Lorenzo from Bank of America. So I have 3 questions. First, on Air Defense. So how do you think NASAMS compete against the SAMP/T and the Patriots? How replaceable do you think are Patriots in Europe at the moment? And Also, this concept of full spectrum air defense. This has been something also that the likes of Leonardo and Thales are trying to do, for example, Thales' SkyView, how does it compare to their offering?

Then on missiles, you mentioned some critical components in the supply chain. What would those be exactly? Finally, could you give a bit more color on the orders or growth opportunity for HUGINS?

Sure. So let's start with the air defense. I'm going to try to remember all your questions. Initially, your first question is about whether or how NASAMS compare to SAMP/T or Patriot. So NASAMS is what we typically call today is a medium-range air defense system. So it operates in between a short-range air defense systems and a long-range air defense system. So Patriot and SAMP/T are long-range air defense systems and or ATBM systems. So it's when NASAMS grows into the full spectrum air defense that it will actually then also be a system on the level of Patriot and SAMP/T against the ATBM threats.

If you look at the other way, so if you look at the lesser targets, so like drones or something like that, of course, using or NASAMS compares very well because it's a much, much cheaper effector than what you have in the bigger systems. And I will also say the advantage with NASAMS compared to most other systems is its capability to take down cruise missiles. It's a very, very different scenario, and it's something that NASAMS is really, really optimized to handle where we typically get a missile with very, very short reaction times, flying close to the ground, which is a very specialized defense capability. Next question was -- I'm trying to remember all the questions.

But maybe I could just add that what Kjetil described earlier today is that NASAMS is adaptable to different effectors and radars. So we have already integrated the lower end with the counter UAS. and SHORAD systems with different missiles. That is -- so everything is then controlled from NASAMS, both for medium, short range and counter UAS. So the last step is to add the anti-TBM capacity. And that's where we think we have a proven system that has done similar things before and that we can easily in these terms, add that type of capability into the NASAMS system.

I think maybe...

So on the full spectrum air defense comparison against Thales SkyView, for example, or Leonardo Michelangelo?

Yes. So on full spectrum actually more compared to the actual systems like SAMP/T, which is a full -- or that's the high-end piece of it. And then I think from the SkyView of what they're doing, where they're also working to collaborate the same. I think we believe that, again, NASAMS is very, very good and it's the best in its class. And I think we have an ability to do a very, very good long-range ATBM solution with NASAMS.

And I think part of our benefits are combat proven, effectiveness is proven, low manning, low operational cost, all this we will also then bring into this full spectrum of defense that some of the other systems might be more struggling with.

And maybe add that we have a customer base of 18 countries. They all want that type of capacity.

Okay. Then I had asked about some raw material -- critical materials for -- in the missile supply chain that you had mentioned.

Yes. So I think in general, I mean, I want to be careful to go into the detailed supply chain issues of missile vendors. But I think in general, it is a mismatch with the current capacity to produce new missiles. So it takes some time to scale that up. There's a lot of scale-up efforts ongoing, both in Europe, the U.S. and other countries. But in general, there -- the need that we have seen for interceptors is outpacing the current production capacity.

But did you relate -- the question was related to what I said about critical components? Yes. Okay. Yes. Well, in principle, all the components in the missile is critical as you don't carry more than you need to do. Anyway, the thing we see as critical is where we have single source suppliers. We try to build as much resilience as we can with multiple sources. But of course, there will always be some critical components where we have sole source.

Typically, it's engines, it's explosives and also, it might be some electronic components. However, I think we have a really good dialogue with our suppliers. We are sharing our forecast with them. So they are also able to build ahead and plan for their investments to meet our required volumes so we can fill the factories with parts. So this is a kind of continuous dialogue we have with our single-source suppliers.

Would it be possible to have more color on the opportunity, some numbers maybe?

Well, I think we -- the HUGIN has been sold both in the civilian market and in defense market for many, many years. We have seen a growth over recent years to a larger portion of that being within defense. And as mentioned, I think we will continue to grow our sale of HUGIN, both in the civilian market and in the defense market, but we do expect a significant growth in the defense market.

And we have, as I showed, a broad range of vehicles covering the full spectrum of the HUGIN family, as we call it today, from the smaller more shallow water purpose-built as well to the more long-range deep water vehicles. And as mentioned, we are also developing new vehicles with new functionality. So we see a significant growth going forward in that domain.

Magnus Rasmussen, SEB. Just one question on long-range air defense or including that in full range. Can you elaborate a bit on sort of where are you in terms of how soon can you deliver an order or have something ready for customers that could potentially be a contract?

Are we talking in a couple of years or in 5 years? And also to what extent are you dependent on what the Norwegian government decides to do? Is this a project that we can see also if they decide to not procure it or procure it from someone else?

Yes, I think I can start. But I think in general, of course, we are always seeking to work together with Norway as one of our prime partners. But in general, the solution as such doesn't entirely depend on that. It can still be very viable with other partners and close customers that we have. I think from a time line perspective, it is basically driven by at the point where orders come in. And in general, I think we have very, very good control of supply chains and so on on this. We know what we need to do. There is no development as such needed. It's integration only so we can do that in parallel while systems are actually being produced.

So it shouldn't be any different time line from ordering one of the other systems mentioned here today or getting it based on our NASAMS and Full Spectrum Air Defense solutions, which should be the same time line. So we will be able to deliver just as quickly as we can procure any similar or competing system.

Okay. We have a question from the web. And the first one is from Christophe Menard in Deutsche Bank. What is the pipeline of opportunity that you have based these targets on?

It's what we have based our ambition is what I referred to that we have what we -- what's visible today is what we have in the order backlog. But we also have a pipeline of opportunities that we are creating constantly. But this is a dialogue where we talk to other customers and countries how they look into the future in order for us to complement to see what potentially could be put into order backlog going forward. So I think that's kind of the way we work to put up the ambition for revenue in 2029 and also in 2033.

And then for investment grade, what is the maximum net debt to EBITDA needed for Kongsberg to remain investment grade?

Yes. So today, it's the Nordic credit rating that has an A- rating for us. And they have stated that the net debt to EBITDA in the range of 2.5 to 3x over the longer term should be a viable criteria. But of course, this is also dependent on the use of proceeds and why you need that type of leverage.

Thank you. And what is the share of revenue from Ukraine? And how does this -- how do you see this changing to 2029 and 2030?

Say that around 3% to 5% of our revenue is for Ukraine. So it's important to note that what we are delivering if it's air defense systems, these are batteries, so to say, that you put out in Ukraine and you're using, of course, interceptors, et cetera. Those interceptors are not coming from us. So we are not as vulnerable or dependent on what ammunition, et cetera, like some of the other defense players.

It's more driven by the area that you protect more than the consumption. The last question from Christophe Menard in Deutsche Bank is, can you provide an indication of what percentage points you aim to gain through efficiency and scale impact by 2029? Any color on how much these factors can contribute to margin improvement is helpful.

Yes. No, I think we'll go back to what we said earlier when it comes to how our margins will develop. It is a combination of scale effects and project mix, et cetera. So we will not communicate any specific targets when it comes to each of those components.

One more from...

Okay. Sindre Soerbye from Arctic Asset Management. Just on the space side, if you look beyond KSAT, which has grown tremendously for a number of years, how should we think about growth? Will it be kind of growing from a small revenue base in a very defined niche related to, let's say, based on sovereign security and small sets covering the northern areas?

Or are you going, let's say, more head on to the established players? Because I mean, you got a lot of companies based in France, Italy, Spain, kind of merging their activities and surely, the Germans want their own industry to get a lot of their spending and you're teaming up with Germans. So would it be more of an alliance joint venture model? Or would it be kind of a Kongsberg-based model?

No, it's a good question. And we see in the sort of new space or the LEO space domain, space for defense, the market is huge, and there's a lot of capabilities that are required. And we see that partnering with other large players as well and positioning for that is a very good way forward.

So as we announced last year, we are planning on establishing a joint venture in Germany and building up capacity in Germany. And we can both supply on a stand-alone basis, but also partnering wherever that is fit for purpose. It will often the whole value chain is large, and we have capabilities in all parts of that value chain. But together, we're much stronger and better positioned for many of these large programs.

Yes. Just a follow-up. Would you have kind of -- I guess you're not going head on to compete with Starlink, but would you have some kind of total addressable market for Kongsberg?

Well, it's -- the market is developing significantly, both in small sats and the smaller satellites are becoming bigger because the payload is also becoming bigger. And as mentioned, although it's highly uncertain how this market is developing and how the budgets are put forward, there are still many countries that has announced significant spending, both in Canada, in Japan, in Germany, in EU, ESA as well. So I think we're well positioned for those programs. As I said, we can deliver on a stand-alone basis, but very often also partnering will be very reasonable in this setting.

To give you some more flavor, as I see it is that Europe needs sovereign capabilities, and that is based on -- especially on the constellation level. And we definitely, as Kongsberg will contribute on the platform side and also downloading data in addition to a lot of other things we can do. But I think what we see in general in Europe is that we -- harmonization of and consolidation will take place in the shape of more joint ventures or more alliances.

So this is a good match for Kongsberg. We are used to work with, and you saw the list that I think Martin presented. We are used to work with tens of companies around the world. So this is what we like to do. We like to establish, call it, partnerships that really delivers in a good manner to the different countries, these sovereign capacities.

My final question is, would it make sense conceptually to think about growth percentage-wise more or less equal across the 3 different business areas?

Yes. So I can comment on that. So when we have -- as we've been through, we will kind of look at the backlog, the pipeline and also the strategic ambitions. And when we look at all the 3 divisions, actually, there is a very strong connection between them. So for us, it doesn't really make sense to say that one division will grow more than the other because we don't know exactly where these orders will be placed. So that is the main reason why we are not commenting on divisional specific targets.

Fabian Jørgensen from Pareto again. On the standardized vessels, can you give some flavor on what could be the content of the vessels and how many holes you see as the base case now? I would assume NSM, 3SM combat systems, remote weapon stations and HUGIN. And Norway has commented, of course, Norway, Canada, U.K. maybe, Latvia and Lithuania. Anything beyond that you see as a potential?

I can maybe talk a little bit about the content of the vessel. So the whole sort of core of the system is that you have a very modular flexible design. So you have a base vessel with certain capabilities designed to host other crewed or uncrewed systems. And then you have toolboxes on top of that. So if you look at one thing, one is, as I said, HUGIN in multiple roles, but one of the key one is mine countermeasures to use HUGIN to find mines and you have other tools on board to actually pacify or take out the mines.

You have naval strike missiles. We have air defense capabilities. We have a lot of communication, space communications. Manned-unmanned teaming, but the list of toolboxes is actually almost endless. So there is a lot of capability, and it will continue to evolve. That's the whole point that you can keep the main platform, but you can evolve with new capabilities as the threats and the needs change over time.

Yes. But I think you're right that NSM could be part of Vanguard as an example because it depends on -- we call them support vessels. And it depends on what role they want to take. So this will vary depending on how Norway decides to kind of implement their functions.

So a large vessel for the Norwegian Navy might be more heavily armed than the same for the Norwegian Coast Guard, for example. in normal operations.

And it's difficult to comment on the countries you are mentioning. You know about Norway and Canada, obviously, what has been public is that U.K. is looking at the same thing. And also Lithuania has been out publicly and stated that they are looking into standardized vessel programs.

Can you say if -- you said that the pipeline or people looking at this is expanding almost every day now, which then would imply that there's more countries on your list that you're engaging with.

Yes. So I think this is a platform that will contribute to the harmonizing of a type of platform in the world actually. So I think this thinking of having a quite civilian type of platform, adding military equipment that is tailored is quite unique and find a good place in the way we look at the market potential.

Then we have a question from Andreas Nygard in Nordea. In your 2033 target, have you included products that are currently not communicated to the market? Or is it based on the portfolio you present today?

I think we -- well, we base it on -- a lot is based on what we saw on the -- was it 7--6 of this portfolio bubbles. And so I think majority is based on that.

And then one final quick question. Can you please provide an update where you...

Maybe I could we also have what we didn't state there, there's a lot of other things. We have seen the divisions, and they are quite diversified in the sense that Get has submarine combat systems for submarine. So that is one example that also are part of that. So we could add on this, which is not part of this map we showed. So -- but that's not.

And the list of technologies is long. So the ability to combine them is also there. One final short question is, can you please provide an update on where we stand on Sonatech and also the Thales JV integration?

I think we -- what we can say about Sonatech is that we are awaiting a response from the government in U.S. So that's about what we can state about that. So hopefully, we get a message quite soon, but we don't know yet. And when it comes to the joint venture between Thales and our communication business is now in -- going to be confirmed by EU going forward.

Very good. Thank you. That concludes today's Q&A, and I will hand it over to Eirik for some final remarks.

So just a few closing remarks. So I'd like to summarize what we have covered today, and I'm not going to repeat everything because I think it's been a thorough walk-through here. But as we started with, the world has changed significantly since our last Capital Markets Day in 2024, and Kongsberg has changed with it.

So throughout the day, we have shown how our divisions are positioned in markets with strong demand and how our technology is relevant for the challenges our customers are facing. We have also shown how we are building industrial capacity and strengthening our position in important markets. And also, our financial ambitions reflect the opportunities we see ahead. But they also reflect the confidence we have in our people, our technology and our ability to deliver.

So I'd like to thank my team for their presentations today. And I'd also like to thank everyone who has asked questions in this Q&A session. I also like to thank everybody taking part in this program. So to everyone here in Kongsberg and to those following us online, thank you for joining Kongsberg's Capital Markets Day.

And for those of you here in Kongsberg, Lunch will be served just outside. And before you leave, I encourage you to visit our stand. It's around the corner outside there, where you can look at a lot of equipment we have asked questions to learn more about what we have stated today about some of the equipment. So I hope you get a good time there. So thank you, and let's talk more in the break and lunch and take it from there. Thank you.

Good morning, and welcome to the presentation of Kongsberg's first quarter results. This presentation is done as a webcast only, and you will be able to send in questions through the chat function. This is the first quarter that we present our results after the spin-off of Kongsberg Maritime. Kongsberg Maritime has already presented their figures earlier this morning and are presented in Kongsberg's financial statements as discontinued business. Therefore, Kongsberg Maritime is not included in this presentation.

I will also take the opportunity to invite all of you to follow our upcoming Capital Markets Day that will take place on the 10th of June in the city of Kongsberg. It will also be possible to follow the event online. Please note that this presentation contains forward-looking statements that, by their nature, involve known and unknown risks, uncertainties and other important factors that could cause the actual results to differ. Today's presentation will be delivered to you by our CEO, Eirik Lie; and our CFO, Martin Wien Fjell. With that, I will hand it over to our CEO, Eirik.

Good morning, everyone, and welcome. I'm very pleased to present the first quarter results for Kongsberg. Before I dive into the details of the first quarter, I would like to share a few comments about Kongsberg and the markets we operate in. Over the past few years, rising geopolitical uncertainty has transformed the global landscape, redefining how countries think about globalization and security. Defense, security and resilience are now top national priorities together with sustainability.

Countries are increasing investments and accelerating decisions. In this market, Kongsberg has established market-leading positions in key segments, such as in air defense, missiles, weapon stations and autonomous systems. We continue to scale up our capacity to deliver on our order backlog and future demand. Therefore, we are in a unique position to take advantage of the big trends that are driving demand in our industry.

In the first quarter, revenues increased by 26% to NOK 9.2 billion from the same period last year. Earnings before interest and tax were NOK 1.5 billion, resulting in an EBIT margin of 16.6%. The results were driven by high volumes across the company with strong growth in air defense and missiles projects specifically. Order intake in the quarter was very strong at NOK 27 billion, taking the total order backlog to NOK 152 billion, a record level. And Martin will provide further details about the financials in his presentation.

In April, the demerger of Kongsberg Maritime was completed and the formation of the new Kongsberg became official. The combination of our Defense and Aerospace business with the sensors and robotics expertise in our Discovery division creates a company that combines market-leading defense positions with the rapid innovation of the civilian tech sector. The first quarter was characterized by high market activity with several important new contract awards. However, our #1 priority remains to deliver on our promises to our customers, and I'm pleased to report good progress in our project portfolio.

And we will continue to increase our capacity to meet current order backlog as well as future demand. The order intake in the first 3 months of the year was very strong at NOK 27 billion. In January, we signed a contract with Poland for the delivery of Counter Unmanned Aerial Systems or Counter-UAS. to protect the country against evolving threats from drones. The contract is worth about NOK 16 billion to Kongsberg, one of the biggest contracts we have ever signed. The deliveries will take place over the next 2.5 years.

Other notable awards included a NOK 2 billion contract order for deliveries to the F-35 Joint Strike Fighters. The agreement extends our production of F-35 components through 2030. In February, we signed a contract with Patria worth EUR 140 million for the delivery of PROTECTOR Remote Weapon Stations for the German and Swedish CAVS vehicle program. And we will deliver several hundred remote weapon stations, and the contract has the potential for substantial follow-on orders. The first quarter of the year also marked not one but two major milestones for our standardized vessel concept. Kongsberg and Salt Ship Design were awarded the contract to design standardized vessels for both Norway and Canada.

In Norway, we will work closely with the Navy and the Norwegian Defence Materiel Agency to define the final design for up to 28 new vessels. In Canada, Kongsberg and Salt will work with local partner, Adaptive Marine Solutions on standardized vessels for the Coast Guard. While the nominal value of these contracts is modest, the agreements represent a breakthrough for standardized vessel concepts. There is also a significant interest from other countries.

In the Discovery division, we signed 2 new contracts to deliver the HUGIN Autonomous Underwater Vehicle or AUV. We also signed 2 contracts for upgrades to existing HUGINs. The defense market is the fastest-growing segment for HUGIN, but all these customers were in the civilian market. This shows the true dual-use potential of this technology. We also signed a contract to deliver hydroacoustic sensors to the Polarmax 2, an icebreaker and a research vessel with the Canadian Coast Guard as the end customer.

The contract underlines our ability to deliver hydroacoustic solutions for advanced research platforms. One of the key learnings from Ukraine and the Middle East has been the impact of drones and the importance of being able to counter them. Counter-UAS typically combine radars, sensors, cameras and acoustics to detect, identify the threat. Then the system will use effectors like jamming or a weapon station to mitigate or eliminate the drone.

The need for an European drone wall to the East has been raised, and we consider the contract with Poland to be the first step in this direction. Kongsberg has developed and delivered Counter-UAS solutions since 2018 to the United States as well as to Ukraine. We have delivered more than 25,000 remote weapon stations and turrets to 30 countries over the years. Remote weapon stations can be Counter-UAS enabled. So we are able to offer customers a reliable solution that can be implemented fast.

This is not only about retrofitting on existing systems, but also adding new capacities to the armed forces. As I mentioned, delivering on our order backlog is our #1 priority. In March, we delivered -- we completed the delivery of Joint Strike Missile to Japan. Japan was the first international customer to select the JSM. Since then, several allied nations have chosen the system, including the U.S., Australia and Germany in addition to Norway.

We have been building up our production capacity over the last few years. The Nexus missile factory in Norway is producing at a high rate. The same is true for the production of NASAMS and weapon stations. Although we are at high level, we still have the flexibility to increase production further in response to rising demand. In Australia, as you can see on the picture, the construction of the missile factory is progressing well. We are on track to start occupying the missile factory in 2027. Our new factory in the U.S. is also progressing with missiles being produced in 2028.

With that, I will hand it over to Martin, who will guide you through the numbers in greater detail.

Thank you, Eirik, and good morning to all of you following us through the webcast. I'm happy to present what is yet another solid quarter for Kongsberg. New this quarter is the inclusion of figures from 50-50 owned joint ventures. This is done in order to align the external reporting with internal governance and highlights the significant value that these represent.

For the time being, this means that Kongsberg Satellite Services is included in the figures of Discovery and Kta Naval Systems in Defense Systems. To start off, let's take a closer look at the quarterly order intake and also the order backlog. Total order intake for the quarter came in at NOK 27 billion, resulting in a record high order backlog of NOK 152 billion for the group. As mentioned, the main contributor was the NOK 16 billion Counter-UAS contract with Poland. This contract has a relatively short lead time with the majority of the value expected to be realized in 2027 and 2028.

On the right-hand side, you will find the divisional split of the current backlog. Defense Systems accounts for NOK 80 billion, roughly 53% of the total backlog. Missiles and Aerostructure stands at NOK 60 billion, approximately 40%, while Discovery accounts for 8% or just above NOK 11 billion. It is important to note that the nature of Discovery's business is more short term with faster deliveries. The backlog spans out in time with 54% scheduled to be delivered in 2028 and beyond. This underlines the long-term horizon of several of our important contracts. 28% is for delivery in 2027 and 18% in 2026, and this is providing us with solid visibility for the period.

Next, let's look at the revenue. Kongsberg delivered a strong quarter with revenue coming in at NOK 9.2 billion. This is an increase of 26% compared to first quarter 2025. All 3 divisions contributed with growth ranging from 8% to 45%. Activity is high across all areas, and we are working continuously on scaling operations and ramping up production capacity. And this is done in order to deliver on our backlog and the future demand that we see.

Defense Systems grew revenues by 45% in the quarter from NOK 2.9 billion to NOK 4.1 billion. The strong performance makes the division the biggest contributor in the quarter. The main driver was improved project execution on air defense projects, and we are currently delivering on several large projects with a long-term horizon.

Moving on to Missiles and Aerostructures. They delivered a top line growth of 22%, resulting in a revenue of NOK 2.8 billion, up from NOK 2.3 billion last year. We continue to ramp up our missile production and the pace of deliveries is going according to plan. Similarly to Defense Systems, the division is delivering on multiple large contracts that span several years into the future. Discovery grew revenues by 8% in the quarter. Deliveries within the small satellite segments were particularly strong together with drone detection and inertial solutions. We continue to see increased demand related to security and surveillance, both below sea level and also in space. Kongsberg Satellite Services is now part of the divisional figures on a proportionate level. And the Discovery's share of this is about NOK 273 million.

With successful execution on the order backlog, we expect the full year top line growth to be above what we achieved in 2025. However, there will, of course, be normal quarterly fluctuations. Turning our attention to profitability. EBIT came in at NOK 1.5 billion with a corresponding margin of 16.6%. This compares to just below NOK 1 billion and a margin of 13.5% last year, meaning that we have an increase in EBIT of 55% and a margin improvement of 3.1 percentage points. And this demonstrates our ability to exploit benefits of scale, although, of course, profitability will vary between quarters.

Looking at the divisions, Defense Systems drove performance with a growth in operating results of 62% in the quarter. This results in an EBIT of NOK 796 million. The margin came in at 19.2%, up from 17.2% in first quarter 2025. Missiles and Aerostructures delivered an EBIT of NOK 480 million at a margin of 17.4%. This yields a growth rate of roughly 12% due to higher missile production volume. The margin decreased by 1.6 percentage points due to the particularly strong deliveries that we had in the first quarter of 2025.

Discovery increased EBIT from NOK 295 million last year to NOK 362 million this quarter. This represents an increase of 23%. The improvement was driven by both volume and favorable project mix, particularly from the Space segment. The margin came in at 17%, up from 15% in the first quarter of 2025. Discovery will move into new facilities, and we expect short-term fluctuations on margins during the implementation phase. As we now include numbers from 50-50 owned joint ventures in our overall reporting, Kongsberg Satellite Services is included in Discovery and Kta Naval Systems is included in Defense Systems. This leaves Patria, of which we own 49.9%.

As always, the first quarter numbers only include January and February due to a reporting lag. Q4 instead will include 4 months. Patria reported revenues of EUR 163 million and an EBIT of EUR 1 million. Kongsberg's share of net income for the quarter was negative with NOK 14 million. The revenue growth of 51% was primarily driven by the armored vehicle business and certain one-off items. Therefore, the growth is not fully representative of what to be expected for the full year.

We expect both the revenue and profitability to increase for the rest of the year. A milestone in the quarter was the delivery of the first 6x6 vehicles to Germany. This was part of the CAVS program. Patria has over time grown their backlog and secured several significant contracts. The backlog stands at EUR 3.5 billion as of February, up from EUR 2.4 billion last year. Note that this is not included in Kongsberg's reported backlog.

Similar to Kongsberg, Patria has been and continues to invest in increased production capacity to meet significant demand. We continue to have joint business opportunities through our remote weapon stations and the CAVS program. With that, I will leave the floor to you, Eirik, for some final remarks.

Thank you, Martin. At the end of the first quarter, the order backlog was NOK 152 billion. About NOK 27 billion of this will be delivered during the rest of 2026. Call-offs from framework agreements and aftermarket services will come in addition to this. As a result, we expect revenue growth in 2026 above the 2025 level. Deliveries of missiles and air defense systems continue to be the key revenue drivers. Demand remains high, and we expect to win new contracts for our core products from new and existing customers during 2026.

The NSM is one of our biggest successes. The missile has been selected by 14 countries so far. JSM was launched later than NSM and has so far been sold to 5 nations. In today's market, we see strong demand for the Joint Strike Missile. And we continue to invest in our capacity to deliver. We see synergies between our defense and civilian technology portfolio across defense, security and surveillance.

Kongsberg has a strong market position, a significant order backlog and a solid financial position. This provides a good basis for continued growth in 2026 and beyond. Today, we are focused on the first quarter performance. On June 10, in just 5 weeks, I look forward to welcome you to Kongsberg for our Capital Markets Day, where we will be more -- share more details about Kongsberg and our ambitions. Thank you. I will now open up for questions.

Thank you, Eirik. We have some questions from the audience on the webcast. Can you comment on the momentum within AUVs and sonars for commercial and defense markets and whether you have seen increased interest for these products in Q2?

I would say if we take a step back, I think Kongsberg has a very unique position in this segment. We have developed kind of use dual-use technology for decades. So we have the technology needed in this context. And with the growing demand for underwater vehicles and also other sensors in water, we see an increased demand when we look at the challenges around the world. So yes, we see an increased demand for this.

Thank you. From Magnus Rasmussen in SEB is what we can expect from the new missile factories in 2028 already in the backlog? Or will there be additional missile sales with delivery already in 2028?

We will -- as we have already stated is that we have built up capacity to secure our current order backlog, but also for future demands. So we're not going into specific details, but the outlook and how we can produce is very much aligned with our customer expectations.

And we have an additional question from Magnus Rasmussen. Is the increase in Discovery figures versus previously stated figures just due to the inclusion of KSAT to APMs? Or have you shifted any business from the old KDA into Discovery?

Yes. So when we set up the new organization, we took the space business that was previously in Kongsberg Defence & Aerospace, and we merged that together with the old Kongsberg Discovery business. So what you see now as Discovery is the combination of the old Kongsberg Discovery and the Space business of Kongsberg Defence & Aerospace.

And then from Hans-Erik Jacobsen in Arctic. Can you please give us an update on Zone 5?

Yes. Zone 5, we announced that last year -- end of last year, that we have agreed to procure Zone 5, a U.S.-based company, producing and developing low-cost missile but being able to be produced in high numbers. And we are currently awaiting formal response from U.S. government related to the transaction. And we expect this to happen within this half year.

And from Fabian Jorgensen in Pareto. Can you elaborate a bit on the margin development and what we should expect from the remainder of the year?

Yes. So I think that we had a really good start of the year in first quarter with 16.6% EBIT margin. And throughout the rest of the quarters, you should expect the margin to vary based on the project and product mix.

And then from Trygve Bruland, just to be specific, you expect revenue growth in percent in Norwegian kroner to exceed the 2025 growth also when considering how much stronger the Norwegian kroner is versus euros and dollars this year?

Yes, that is correct.

Good. And then from Ole-Petter Sjovold in Sparebank, again, could you quantify the contribution of Kta Naval Systems in Defense System in the quarter?

Yes. So you will see more of the numbers in the notes of the report, but the Kta Naval Systems is -- has limited effect on the inclusion in the APMs.

Thank you. That concludes the questions from the webcast. Thank you all for attending the webcast this morning, and see you soon.

[Audio Gap] incoming CEO of Kongsberg from April this year as well as incoming Chief Financial Officer, Martin Wien Fjell.

We will start by giving you a short summary of the presentation that I guess many of you have already seen from this morning before we open for Q&A. You will find a Q&A button on your screen. So please type in your questions there, and I will read them out for all the viewers.

So with that, Eirik.

Thank you, and it's good to have a meeting with you all. I will give a short overview of some of the elements we discussed earlier today, if you haven't seen it. So I just want to highlight that as Kongsberg as in the future, we -- I would like to start with that Kongsberg has a strong home base, and we are growing very much internationally. So about 80% of what we are doing today is outside of Norway. And you can see on this slide that we have organized ourselves with 3 strong divisions.

The first one on the left side is Defense Systems, where you can see NASAMS is part of that air defense system. And underneath that, that's the remote weapon stations. So that is part of that division. And then missiles and aerostructures with the JSM, Joint Strike Missile and the Naval Strike Missile as the strike missile we are selling to approximately 15 nations at the moment. And also, we are producing parts and composites, titanium parts for F-35.

And then we have the third division, Discovery, mainly producing HUGIN, the Autonomous Underwater Vehicle and other sensors and robotics, especially operating in the commercial and also defense markets, while the 2 first divisions are operating in the defense market. I will also highlight that Discovery also includes the space business. In addition to these 3 divisions, we -- our business model is constructed so that we establish joint ventures, partnerships and co-ownerships. That is a really important part of our strategy. So that brings us closer to key partners and providing access to a broader customer base.

On the right-hand side, you will see our financials and that they are strong. These numbers, they include the 50-50 JVs as well. So in 2025, we had NOK 33 billion in revenue, approximately NOK 5 billion in EBIT and the order backlog is NOK 138 billion. I just also want to highlight for those knowing us in details, we don't include Patria where we have an ownership of 49.9% in these numbers.

Next. So this is some of the historic numbers for Kongsberg, which tells quite a lot of the growth path we are on. And we expect this growth to continue. But if you look at the left side here, when it comes to revenue and EBIT margin, I would say that we have a solid margin level throughout the growth period. At the same time, you can see that the growth started back in 2018 before the war in Ukraine. So we experienced a demand for our system already at that time, and we were able to do investments based on that. So we actually were ready when the war broke out in Ukraine.

And if you so, we have tripled our revenues in a decade. And on the right side, you can see that this is an order backlog. And compared to -- if you look at the global defense procurement and compare it to our order intake, we outpaced the -- outgrow the global defense procurement by 3. So we are increasing more rapidly compared to that. This is a kind of quick look at our portfolio, ranging from underwater from undersea to space. And you see in the middle there, you can see NASAMS, you see NSM missile and you see remote weapon systems. Those are the main global positions we have taken.

And I'd also like to highlight that when going forward, we see that the new frontiers in the battlefield are the deep sea and space, and we are very much focused on these segments as well as growing areas for us. And if you look at, I would say, the new Kongsberg, where we combined Kongsberg Defence & Aerospace and Kongsberg Discovery, this is a good match since Discovery has very much deep knowledge and systems and solutions for underwater systems and now also including the space. So to add those 2 elements together fits very much into the defense portfolio and makes us more focused on the defense market. But we also like to highlight that technology is very much important for us going forward.

If we take the next one. Kongsberg has always been a high-tech supplier with what I would say is the best and most advanced solutions. And we see that technology and speed of innovations are really important elements also for the defense sector. But this innovation and the speed of innovation is taking place in the civilian part of what we are doing and also worldwide. So those are really important elements. You see on the left side there, what we call rapid innovation. I would say that we during the Ukraine war, there was a lack of counter-UAS systems. We were able to deliver what we call a platform counter-drone solution to Ukraine within 3 months after the ID was created to delivery, only 3 months. And now we do the same for unmanned surface vessels. So these are examples of how we can do rapid innovation and feel it quite quickly.

We also experienced in Ukraine the need for high-volume production of cost-effective missiles and interceptors. So we did an acquisition of Zone 5, a U.S. company that gives us access to a fast-growing developer and producer of cost-effective missiles and that can be produced and manufactured at high volumes. And this will complement our -- both the strike missile portfolio and also the air defense missile portfolio with, I would say, high volume but to lower cost solutions.

On the right-hand side, you see a typical dual-use technology. This is the HUGIN Autonomous Underwater Vehicle developed and produced by Discovery, which has a civilian and civilian use, but now will have also an applications usage towards the defense side.

If I go on to the next one. And also, our products, as we have today, we need further development in these areas. So for instance, for the full spectrum air defense, which is important for us, we see that we have to plug in long-range capabilities towards anti-TBM systems at the same time, also counter-UAS anti-drone solutions. And with the strike missile portfolio, we continue our development. We have one high-end solution that we are currently developing together with Germany and Norway, which is a Supersonic Strike Missile, 3SM. And also this acquiring of Zone 5 for high-volume manufacturing is a very important part of that strike missile portfolio.

And also underwater capabilities, which I said was one of the new important areas going forward, where we have Autonomous Underwater Vehicles. And also this area is also important for our critical infrastructure solutions. And on the right side, with the space capabilities, we call the space for Defense, typical during use area. And Kongsberg covers the whole value chain, everything from taking down data to being a producer of small satellites and also to handle the data.

And that was a very short brief on some of the highlights earlier today and probably answer questions.

We have quite a few questions from the viewers. I'll start with a few questions from Magnus Rasmussen, SEB on -- around the contract you announced with Poland on counter-UAS recently. The first one is regarding today's comment from the Kongsberg CFO during the presentation. When the CFO guided for KDA growth for 2026 in line with 2025, meaning around 32%, had she then taken into account the effect of the Polish order last week?

Yes. The simple answer is yes. Just a few comments on the Poland contract. This is, how should I put it, an important contract because it's position ourselves in an important area where protection against drones in the air is a critical defense activity that needs to be highlighted. We see that in Ukraine. And I think this -- the magnitude of the contract in Poland establishes one solution that can be utilized in other countries going forward. But for now, for us, it's important to deliver on this contract and secure that we have a good solution in place.

Is it fair to assume, as we read in Polish media that the full NOK 16 billion worth of contract will be delivered within the end of 2027 or at least the main part of it?

Yes. What we say is that there is a quick delivery schedule here. We have initial deliveries this year in '26, and the main deliveries will be in '27. So -- and then a little bit into 2028 as well.

Thank you. On the anti-drone system, again, how should we think about capacity constraints on these type of products? And how much of the order will be covered from the Polish plant? And how can you -- can your supply chain keep up with this rapid delivery?

First of all, we -- initial deliveries will be done from facilities we have in Norway to secure that we are able to deliver within quite a short time frame. At the same time, we will establish an assembly line in Poland to secure that the next deliveries will be done from -- out from Poland facilities. And this is -- we have a good situation with the suppliers in this area. And so I think we have a good setting to be able to deliver on the promises in this case.

And one more on the Poland contract. How should we think about margins on such a delivery? Our understanding is that these products generally have higher margins at both segment level? Or should we expect some kind of first buy discount for Poland in this case?

I think we should look at this as a normal project with -- there are some integration that needs to take place. We have established a consortium between a Polish company, PGZ and ourselves. That is very important as part of being a strategic partner in Poland. And there's a lot of equipment to be delivered. So I would say that this is a typical normal program for us.

Thank you. Why have the margins in the Defense Systems division been slightly weaker recently? And can we expect them to recover back to the 20%, 21% area shown in the previous couple of years?

I think the simple answer here is that it's based on the product mix that will vary. And I will not comment going forward, but this will very much depend on when the different programs and projects are run and executed because this will be different, how this is played out. And if you have, let's say, development contracts, they will have not so high margin level compared to pure delivery contracts. So this is a mix that we -- a product mix that is relevant for why we are a little bit, I would say, up and down when it comes to margin level for Defense Systems.

And then on the Missiles and Discovery divisions, can those 2 divisions reach a sort of [ 22% ] level when it comes to margins eventually? Why or why not?

Well, I will not comment the level of margin level because it's -- as I said again, it depends on the project mix. And obviously, we are driving for a good margin level. I think we will continue the stable margin level we have already stated, which is where we want to be. And we need to secure also that we do necessary investments in what we are doing to secure that we stay relevant towards our customers and also stay ahead of the competition. So this is always a mix in how we want to position ourselves going forward.

Thank you. Over to satellites. Can you expand on your LEO satellite business? It seems like -- it seems you are the largest producer in the EU. And how do you compete in the cost curve against companies such as SpaceX?

Well, maybe a little bit in different categories there, but I think this is a pure commercial production of small satellites that we are in a commercial civilian setting with, but we will utilize these satellites we are producing also for defense applications, and we are using that. And so we keep the cost level at the same level. And then we can add on applications for the defense setting.

Can we expect the order momentum to continue expanding beyond 2025? Is the NOK 61 billion order intake sustainable into the next couple of years?

What I can say is that we see the growth in defense spending, for instance, in Europe to be on -- is continue. And all countries in NATO are trajectory towards the 3.5% and finally, 5% in 2035. So we see a growing demand for defense systems in general. And we expect to continue our growth path going forward as well.

Thank you. Then a question on standardized vessels or Vanguard more specifically. What do you see as potential when it comes to this project and both in the short term and in the longer term?

I think the standardized vessel program with Vanguard, we are now -- I can't say too much about it. It's a competition ongoing in Norway right now. What we are proposing is a very much solution based on standard chip platform, a standard design where we put different military equipment on. And we see that this could be a potential for harmonizing this kind of platform, especially in some parts of Europe going forward.

Your revenues have tripled over the past 5 years, yet your margins have stayed relatively stable at 15%. Why is that? And why are you not seeing more operating leverage in the business?

Well, I think we have been able throughout the growth period that we are in to secure that we stay with a stable margin level that is good. We continue to invest in what we are doing. And this is -- and also a different project mix. And we are able to do the scaling and delivery of our production capacity. So I think without decreasing the margin level. So I think that is also an important factor to bring into this equation.

And a few questions from Martin Granviken, Kepler. Does the delayed software rollout within the F-35 program affect the short-term Joint Strike Missile potential?

No, we don't see that. It's important that we do the final integration, but the missile itself has been accepted and approved. So it's the last step where it's integrated into F-35 that needs to be completed. But we don't see that as negatively affect our potential with JSM.

And with regards to counter-UAS and remote weapon stations again, how is the potential related to existing RWS PROTECTOR Systems without counter-UAS? What would be a typical contract value for an add-on to this functionality?

I think what we see generally in the market is that when you have vehicle programs in the different countries, they normally also want at least for a portion of the vehicles to have the remote weapon stations part of that vehicle. And we just today, as an example, announced that we -- and Patria sold a 6x6 vehicle to, for instance, Germany, we also will get the contract for our weapon stations as part of that contract. So we got EUR 140 million contract today because of that. And we see that in different vehicle programs that the need for -- a continued need for our Remote Weapon Systems are still there.

Since 2023, you have achieved an impressive annual book-to-bill above 2. How do you view the potential over the next years? For example, is the identified pipeline front-loaded? Or is it reasonable to expect the same trajectory?

It's -- I cannot go into all details there, but we expect to continue the growth we are seeing. So I cannot comment on how this will play out. But since we see the defense spending is increasing in the different countries we are very much involved in, that is also an indication that we will continue to grow.

Then a question from [indiscernible]. The 3SM Supersonic Strike Missile is planned to be fully developed around 2035. This appears to be a very long development time line, especially given the rapid pace at which other advanced weapon systems and technologies are being developed today by you. Please elaborate around this.

Yes. First of all, I would say that 3SM is a very different category compared to more of the rapid development cycles we have seen. So it's extremely sophisticated and -- but we are also trying to narrow down the development time to have it a little bit earlier. But I think the development is between Norway and Germany. It's a bilateral program with creating a unique capacity and to be the best in the market in 2035. So that's kind of the situation for 3SM.

But I will also highlight that when acquiring Zone 5, we are not getting the same capacity at 3SM, but more equivalent to JSM, for instance, will be more of in this low-cost segment that can be produced in high volume. That will be very complementary to our current JSM and NSM.

Then a question from [indiscernible]. How are you using AI in your business today? And how important will this be in the future? Do your 3,000 software engineers already use AI coding tools like, for example, Quadcode? And what will these new AI coding tools mean for speed, efficiency and time to market?

Yes. We are using AI in certain applications today and also part of the solutions we are delivering. And going forward, this will be more and more important for the defense applications. And just imagine the amount of information you are receiving on how to deal with that. And also looking into the underwater applications, how to deal with that. What we foresee is that what you see in the drone setting in Ukraine in the air, the same will take place undersea. And this is an area where we see an advantage of using AI because of the automation between the different autonomous system there, just as an example. So this is and will be more and more important for us.

And then another question from Magnus Rasmussen, SEB. How much deliveries have you had to Ukraine in 2025? And how does that compare to 2024?

Well, I don't have the exact numbers there. But I would say that, well, Ukraine is really important for us. But if you compare it to the total revenue, it's about between, I think, 3% to 5% of our total revenue. So it's important, but not so significant when it comes to compare it to the total revenue of what we are doing.

And just to confirm, the recent counter-UAS contract with Poland signed last week is not in the backlog that you presented today?

Correct. That will -- that came in, in January. So that will be added on for Q1 '26.

And then you have been the President of Kongsberg Defence & Aerospace for close to 10 years now. How would you say this area has changed under your management?

Well, it's -- I would say it's -- when I started back in the 1990s, Kongsberg and the defense side was very much focused on Norway, on domestic applications and working with the Norwegian customer. And throughout 2000 and after 2010, very much was focused to secure that what we are doing in Norway will be also on the export market. So we can see that we have expanded from maybe 10% export back in the '90s. And now we have between 80% and 90% export on the international market. And that is a huge transformation of the company.

And today, we are in a position. We used to be a niche defense supplier with certain extremely good products to what we are today, we are a what we could call a prime contractor being a strategic partner to governments and have a much larger impact on the decisions made in different countries when it comes to the defense side. So this is a huge transformation I've been part of. It's been really interesting to see how this has developed. And we can also see that because of the situation in the world with the Ukraine war, we can see that the world needs a company like Kongsberg.

And when it comes -- or do you have any constraints when it comes to capacity? And with regards to the supply chain, how do you work with the supply chain to kind of prepare them for the ramp-up that we are in and that most likely will continue for a while?

This is a very important question. And I would say that the supply chain is really critical for us, and we are constantly working together with the suppliers to secure that they do everything that is necessary to deliver what we need for our assembly or everything. And we can give all our suppliers a good visibility so that they can do the necessary investments and are able to ramp up their production so that we can meet expectations to our customers. So I think that is one side of it.

The other side is that to have a resilient supply chain, that means you need more suppliers to deliver the same items, for instance. And that's why we are building up a -- well, first of all, production sites in Europe, in North America and also in Australia. And at the same time, build up local supply chains around these hubs. And that has -- and we are doing that now, and that is very important for us to secure that we are not having, for instance, one supplier that is not able to deliver, then we have multiple sources.

Thank you. It seems like that was the last question from the viewers tonight. So I would like to thank you all for attending and wish you all a good weekend.

[Audio Gap] As well as Executive Vice President and Chief Financial Officer, Mette Toft Bjorgen. Later today, you will also have the opportunity to follow company presentations of Kongsberg Maritime and Kongsberg following the demerger -- the announced demerger. At 09:30 Central European Time, incoming CEO, Lisa Edvardsen Haugan, will present Kongsberg Maritime; and at 10:15, incoming CEO, Eirik Lie, will present Kongsberg going forward. But before that, let's dive into the Q4 figures. Geir, the floor is yours.

Good morning, everyone. Thank you for joining us here today. It's a real pleasure to welcome you all to this presentation for the Q4 and 2025 results. This is the last quarter we will present Kongsberg as we know it and also the last time I will have the pleasure of presenting the quarterly highlights of the group.

We find ourselves in extraordinary time, packed with both challenges and exciting opportunities. The current geopolitical and economic landscape is undergoing profound transformation with shifting alliances and rebalancing of power, shaping a new world order. As the global tension rise and competition intensifies between the major economic and military powers, the necessity for the adaptability and foresight has never been greater.

In this environment, where tariffs and trade are constantly on the agenda, the interplay between national and regional interest, technological advancement and international cooperation is redefined the rules of engagement and presenting both new risk, opportunities for growth and innovation for a company like Kongsberg. The new security situation in Europe marked by the ongoing war in Ukraine has brought significant challenges and increased uncertainty across our continent.

This conflict has underscored the importance of resilience, preparedness and technological innovation within defense and the maritime sector. As European nations reassess their security strategies and strengthen cooperation, our company remains committed to support Ukraine and our allies, ensuring that we are well positioned to respond and act.

Over the past few years, Kongsberg has made considerable strategic decisions through acquisition, technological development and capacity investment. These decisions have given us new muscles, leading international positions and better conditions to perform and navigate in a demanding and unpredictable landscape. Now we stand on the brink of another major and important strategic transformation of the company's history.

At the Extraordinary General Assembly meeting in January, it was decided with broad support that Kongsberg Maritime will be listed as a separate maritime technology company. And that Kongsberg Defence & Aerospace and Kongsberg Discovery will be consolidated into a technology and defense-focused company. My main priorities over the coming months is to ensure that the strategic changes and the leadership transition provide continuity, stability and security for all our stakeholders.

And I would like to take this opportunity to thank everyone for your support and encouragement throughout the process, providing a solid foundation for the soon-to-be 2 independent listed companies. In our quarterly report that was published this morning, you might have seen that Kongsberg Maritime is presented as discontinued business. In this presentation, however, we will present Kongsberg, including Kongsberg Maritime, so that the numbers are comparable to previous quarters.

2025 was yet another strong year with solid growth and profitability and also a strong influx of new orders. Kongsberg Maritime delivered growth and strong order intake despite a slowdown in the number of vessels contracted at the shipyards. The business area really demonstrated innovativeness through the delivery of REACH REMOTE 1. This is a 24-meter unmanned surface vessel designed by Kongsberg and filled with our technology. The remotely controlled vessel marks a real step change in the offshore operation, offering safer, more efficient and lower emission solutions. The technologies that required for such operation is also, of course, applicable for other segments.

And I can assure you that you will hear -- we see more of this going forward. In Kongsberg Defence & Aerospace, demand remained very strong throughout the year. We saw solid growth, signed new major contracts and the business area made solid contribution to the record high order backlog for the group at the year-end. Our defense area continued to expand, and we are now underway to constructing new missile facilities, both in Australia and also in the U.S.

And this new capacity comes on top of the recent expansion in Norway. In Kongsberg Discovery, we continue to grow our ocean technology business. There was a strong demand for our sensors, positioning systems and subsea solutions. We have seen and are continuing to see increased demand for our technologies that both survey and explore underwater. And I'm confident that combining our underwater technology portfolio even closer with our defense business in 2026, we could broaden the exposure even further.

So overall, 2025 was a year of strong performance, strong demand and important technological milestones. As we now move into 2026, both companies, Kongsberg Maritime as a separate company and the continued Kongsberg entered the year with solid foundations, clear strategic direction and also a strong momentum.

So turning into our attention to the quarter. Q4 was another good quarter with solid progress and results, and Mette will come back to the financial details shortly. When it comes to the order intake, we signed orders for NOK 31.8 billion in the quarter. The largest one was the NASAMS contract with Denmark worth NOK 6 billion. This contract will provide Denmark with the latest and most modern and advanced air defense capability in the world. With this procurement, Denmark becomes also the 14th NASAMS user.

Kongsberg Maritime continued to deliver a solid order intake, especially deliveries for new builds. And despite the number of vessels contracted in the market that was down compared to previous year, we experienced a favorable mix for our offerings. Also in Q4, orders from offshore newbuild segment were a strong contributor to the overall order intake.

In Kongsberg Discovery, we continue to see strong demand for HUGIN AUVs and also drone detection radars. In addition, technology deliveries to research vessels contributes well to the overall order intake. So all 3 business areas end 2025 with a significantly higher order backlog compared to 2024. And with that, I leave the floor to Mette to take us through the financial status.

Thank you, Geir. Good morning, everyone. It's a pleasure to once again report solid financial performance for Kongsberg. And before we dive into the fourth quarter and the 2025 figures, let me briefly touch on what figures we are presenting for you today.

The Extraordinary General Meeting in January approved that Kongsberg Maritime will be listed as a separate maritime technology company. The demerger was announced in the fourth quarter, and the proposal triggers the requirement to present Kongsberg Maritime as operations held for distribution in our financial statements, both for Q4 and the full year 2025.

For today's presentation, however, we focus on the legacy company, meaning Kongsberg, including Kongsberg Maritime, to give a known comparison, as Geir said, of underlying performance and year-on-year development as this reflects how the business has operated throughout the year. Operations held for distribution will differ somewhat from the business area, Kongsberg Maritime since the new listed Kongsberg Maritime includes additional activities as described in the demerger plan.

With that, let's move on with the 2025 figures. 2025 has been another solid financial year for Kongsberg. Revenues reached NOK 58.6 billion in 2025 with underlying revenue growth at 17%. This excludes the gain from the divestment of the steering gear and rudder business, which added NOK 1.2 billion to both revenues and operating profit. All business areas delivered solid growth. Kongsberg Defence & Aerospace was the main driver with 32%. Kongsberg Discovery delivered 16% and Kongsberg Maritime ended the year with 10% year-on-year growth.

Looking ahead to 2026, with successful execution on the backlog, we expect the full year top line growth to be broadly in line with what we achieved in 2025. There will be normal quarterly fluctuations, but overall, we see a growth trajectory this year that is consistent with last year for both Kongsberg Maritime and Kongsberg. EBIT for the year came in at NOK 9.3 billion. Excluding gain from sale, EBIT was NOK 8.1 billion, corresponding to an operating margin at 14.1%, an improvement of 0.8 percentage points from 2024.

Both Kongsberg Defence & Aerospace and Kongsberg Discovery improved margins, supported by solid project executions and cost control. Kongsberg Maritime recorded a margin decline of 0.8 percentage points. This was driven by portfolio changes, including the divestment of the steering gear and rudder business and the integration of Kongsberg Digital's Maritime portfolio.

Adjusted for these effects, the margin is broadly in line with 2024. Order intake remained high at the high level we saw in 2024 and increased the order backlog by a further 23%, reaching NOK 157.4 billion. The strong order backlog gives us good visibility and higher revenue coverage in the next 2 years than what we have previously seen.

Let's go into the fourth quarter. Revenues for the group came in at NOK 16.8 billion, up close to NOK 3 billion or 21% from Q4 last year. Kongsberg Maritime delivered revenues of NOK 7.6 billion, a year-on-year growth of 10%. The growth is led by the new sales division, supported by solid backlog coverage. The aftermarket came in somewhat stronger than expected, and we saw increased service activity in Q4, although the overall aftermarket share is down from 57% in 2024 to 53% of revenue in Q4.

Kongsberg Defence & Aerospace delivered revenues of NOK 7.9 billion, up 44% from Q4 last year. A significant share of the growth in this quarter was driven by higher delivery volumes across missile, air defense and counter-UAS. Around NOK 600 million of the increase are effects from timing and accelerated deliveries originally planned for 2026.

Kongsberg Discovery grew revenues by 16%, coming in at NOK 1.4 billion. The main drivers for the increased revenues were deliveries of drone detection radars as well as high activity related to strong AUV sales. The group delivered operating results of NOK 2.5 billion at a margin of 14.7%. This is a strong improvement versus Q4 2024, increasing EBIT by NOK 730 million and the margin by 2.2 percentage points.

Profitability improved due to a favorable project mix and scaling driven by Kongsberg Defence & Aerospace. Kongsberg Maritime delivered NOK 0.84 billion and a margin of 11%. This is an improvement from NOK 0.76 billion in the corresponding quarter last year. The margin was in line with last year, but adjusting for the portfolio changes, the margin improved by approximately 1 percentage point.

Kongsberg Defence & Aerospace came in at NOK 1.48 billion with a margin of 18.7% compared to NOK 0.81 billion and 14.7% last year. The increase in the EBIT margin was driven by a favorable project mix and strong volumes in the quarter. Kongsberg Discovery reported NOK 0.25 billion and a margin of 17.5%. This is up from NOK 0.23 billion at an 18.4% margin in Q4 last year. The margin reduction compared with the fourth quarter last year is mainly due to the project mix and more in line with the expected deliveries going forward.

Total contribution from associated companies was NOK 380 million in Q4 compared to NOK 276 million in Q4 last year. Our 2 largest associated companies are Kongsberg Satellite Services and Patria. Kongsberg Satellite Services delivered revenues of NOK 667 million in Q4, which is 16% above last year. For the full year, KSAT delivered NOK 2.4 billion in revenues, representing a year-on-year growth of 6%. The EBIT for the quarter is NOK 127 million and NOK 482 million for the full year, and we're pleased to see the improved profitability for KSAT.

Patria reported a very strong Q4 with EUR 518 million in revenues and an EBIT margin at 15.2%. Both the revenue growth at 49% and the solid EBIT benefited from ramp-up of vehicle production. The EBIT also includes strong contribution from Patria's subsidiaries. I would like to remind you that we report 4 months in the fourth quarter from Patria. For the full year, Patria delivered revenues of EUR 1.1 billion with operating results of EUR 116 million.

Both KSAT and Patria reported significant increase in the order backlog this quarter, driven by large order intake related to the European defense market. Patria signed in December 2 serial contracts with Germany on Patria 6x6 vehicles and the NEMO mortar systems, which represent the largest single deal in Patria's history, and the current order backlog is at EUR 3.5 billion.

The backlog from our associated companies are currently not recognized in Kongsberg's reported backlog. The improved performance from associated companies contributed to solid net earnings at NOK 2.3 billion, an increase of 58% from the same quarter last year. 2025 has been a year of exceptional cash conversion for Kongsberg. Cash position at year-end was NOK 21 billion for the group compared to NOK 14 billion when entering the year.

This is driven by strong operating results and supported by the improved working capital in all business areas. In terms of outflows, capacity investments continue at a high level and the dividend at NOK 3.9 billion was paid out last year. Tax amounted to NOK 1.4 billion for the full year 2025. On several defense contracts, we received prepayments to secure supplier deliveries and long lead items.

Our capital allocation principles are key to operating responsibly and securing continuous profitable growth. #1 priority is a solid balance sheet, and we aim to remain investment grade. Secondly, we invest for organic growth and to deliver on our order backlog.

At the Capital Markets Day in June 2024, we said we would invest up to 15% in R&D and property plant and equipment investments. NOK 3.1 billion or 5.5% of revenues were spent on Kongsberg-funded R&D in 2025. The majority of these initiatives are in Kongsberg Maritime, which accounts for NOK 1.8 billion or 6.7% of revenue. In Kongsberg Defence & Aerospace, a larger share of the R&D is customer financed. NOK 2.4 billion or 4.3% of revenue was spent on property, plant and equipment investments, the majority of which is related to capacity increases in Kongsberg Defence & Aerospace.

We aim to deliver healthy shareholder remuneration. Kongsberg's dividend policy is to pay a stable or growing ordinary dividend. For 2025, the Board will propose to return NOK 5 billion to shareholders. I will come back to the details on the next slide. Going forward, Kongsberg Maritime will aim for a relative dividend policy, where the payout ratio will be suggested at 40% to 60% of net earnings after tax, and we believe this is more suitable for Kongsberg Maritime's nature of business.

And we perform active portfolio management to develop our business and the ability to create value going forward. In 2025, the largest initiative is, of course, the ongoing demerger and listing of Kongsberg Maritime. In addition to that, we have closed the following transactions: sale of steering gear and rudder, acquisition of Naxys Technologies and the transfer of the Digital Marine business from Kongsberg Digital to Kongsberg Maritime.

We have announced a joint venture with Thales Norway on the crypto and defense communication business as well as the U.S. acquisitions of Sonatech and Zone 5 Technologies amounting to approximately NOK 6 billion. As mentioned on the previous slide, the Board of Directors has decided to propose to return NOK 5 billion in dividends, representing 63% of net earnings. This corresponds to NOK 5.7 per share, NOK 3.5 per share will be in excess of the company's ordinary dividend policy.

When considering our performance, outlook and solid foundation, the Board proposes to raise the floor on ordinary dividends with another 10% to NOK 2.2 per share. The dividend is to be paid out on the 22nd of April 2026. And with that, I will leave the floor to Geir for the last time for some final remarks.

Thank you, Mette. You should have a glass of water. Yes. I think we have already touched on our solid position and also some of our outlooks. Kongsberg Maritime will start its journey as a stand-alone company from a very solid foundation with an order backlog worth NOK 28 billion on top of healthy and innovative operation, delivering into a market where the company continues to confirm its position as an enabler for the ongoing transition.

Kongsberg Defence & Aerospace and Kongsberg Discovery that together will form Kongsberg going forward, have close to NOK 130 billion order backlog. And we also continue to see strong demand for the advanced solutions from both the military and the commercial market. In June 2024, at our Capital Market Day, we set out an ambitious plan to triple Kongsberg's revenues over the next 10 years. The results for 2025 shows that we have started on the fast track and already have made solid steps to deliver on this ambition.

We have built a strong foundation to continue this development as 2 separate companies. And as Jan Erik started with later today, the future CEO of Kongsberg Maritime, Lisa Haugan; and Eirik Lie, who will take the role as CEO in Kongsberg from mid-April, will give you a more detailed overview of the 2 businesses. And the purpose of these presentations is to give you a broader overview of the 2 companies setup, the markets as well as some of the prospects going forward.

The 2 companies has already started to work on and paving out their strategies going forward. And the result of this, including the future ambitions for the 2 companies will be presented on the respective Capital Market Days planned for June this year.

And with that, I will open up for some Q&A, and Mette will join me.

We have a question from Hans-Erik Jacobsen, Arctic.

You just received a significant order in Poland for C-UAS system. Can you explain a little bit about the potential for more orders? I guess it's not only Poland that wants protection.

This is, of course, I would say, let's say, a start of the counter UAS setup in Europe. Poland is a very important customer for us, and this is a major, let's say, start-up. I would believe that with all the attention that we see around both counter UAS protection that there will be other nations interesting to follow this project. This is a rather fast-track project.

And Kongsberg Defence & Aerospace and Kongsberg Discovery have, I would say, a very good position in that race. So it's going to be -- this will give us new opportunities. I'm quite sure about that.

We'll take a question from one of the viewers from Martin Granviken, Kepler. It goes to the CFO. With a full year EBITDA margin uplift of approximately 1.5% for KDA, what does the current backlog mix suggest for fiscal year '26 when it comes to margins and EBITDA outlook?

Well, we have, of course, delivered above expectations on the margin and especially in Q4 due to accelerated deliveries on some of the missile projects and also air defense. Of course, we are still in a ramp-up phase. So we're still working on scaling the business. So our margins will be more in line with what we have seen over the cycle, over the quarters for the next year as well.

It's one more question from Mr. Granviken with regards to the expanded missile factory capacity. What is the time line ramp-up plans for the new missile capacities in Australia and in the U.S. And when does that start to translate into incremental deliveries?

For the Australian facility, we will start -- the plan is that we will be up and running, I would say, end of 2027. And then obviously, it will be a ramp-up period throughout '28. So hopefully, I think we will see that we are full rate production within '28. That is the intention. U.S. is a little bit slower, but I believe also that we will see that we are ready to produce in U.S. end of '27, beginning of '28 and then the follow ramp-up will be the same. So it's really a good plan for -- make sure that we are able to deliver on our backlogs.

We have a question from Lukas Daul, Arctic Securities. With regards to the 2026 guidance you gave on revenues. Can you confirm the divisional split of that?

Yes. I confirm that the -- when we're looking at the legacy Kongsberg and the current divisional split that we are looking at a growth in 2026 broadly in line with what has been delivered in 2025.

And a question from [ Martin ]. What is the time line for adding new and lower-cost missiles to eventually NASAMs or others?

I think I will leave that question to Eirik Lie, who will present the plans later this morning. But definitely, there are plans there. But Eirik will come on shortly, so he can probably elaborate on that.

And with regards to the upcoming demerger, can you elaborate and repeat a little bit around the rationale behind spinning off Kongsberg Maritime?

Yes. As we have said many times, Kongsberg has changed, I would say, the last 5 to 10 years. And definitely, the world around us has changed. And I think the business and the portfolio in Kongsberg has changed. Obviously, we are addressing different markets. There are, I would say, different requirements when it comes to how we set up and make decisions and do strategic prioritization.

So the rationale here is actually to become -- have a more, I would say, focused management Board of Directors that make us more agile that we can navigate faster in a changing world. It's very unpredictable out there. Things are moving fast, and we have to be really agile to be able to address that market. Something you would add? No?

Thank you. And while we wait to see if there are any final questions, I would also like to inform that after this presentation, it will be a break until 09:30 before we continue with the company presentations. So any final questions from the audience? If not, I'll leave the word to you again, Geir.

Yes. So as I started with, this will be my last quarter presenting Kongsberg. It has been a pleasure, and thank you for joining us here today, and I look forward to see you later. Thank you.

Good morning, and welcome to the presentation of Kongsberg's Third Quarter 2025 results. This is a webcast-only presentation, but questions submitted through the webcast will be answered towards the end of the presentation. Today's presentation will be given to you by President and CEO, Geir Haoy, as well as Executive Vice President and Chief Financial Officer, Mette Toft Bjorgen. Questions regarding the proposed demerger will not be answered in this webcast, but will be addressed at the press conference later today.

And with that, I'll give the floor to Geir Haoy.

Thank you. Good morning, everyone. Welcome to the third quarter presentation 2025. It is a pleasure for Mette and myself to present another strong quarter for Kongsberg.

Before I go into the third quarter results, let me start with the comments on another important announcement this morning, which I guess many of you have already seen. The Board of Directors has proposed to demerge Kongsberg Maritime. In recent years, increased geopolitical tension and trade wars have characterized the global landscape. This affects our business areas differently and underscores the importance of positioning our areas as effectively as possible.

Kongsberg Maritime holds a leading technology position and offers products and integrated solutions for a wide range of segments from offshore vessels to merchant fleet and the naval segment. Kongsberg Defence & Aerospace and Kongsberg Discovery address critical needs within defense, security and surveillance, delivering solutions for both civilian and defense applications. The Board of Kongsberg has then proposed to demerge Kongsberg Maritime and list it as a separate maritime technology company on the Oslo Stock Exchange. Kongsberg Defence & Aerospace and Kongsberg Discovery will continue as a technology and defense company, Kongsberg. Separately, the companies will have better navigation opportunities and execution capabilities within their respective markets. This will provide additional competitive strength in the effort to create value in a world where security and sustainability will be dominant for decades.

We will come back to more details during a press conference that is scheduled to start at 9:30 a.m. Norwegian time. The Q&A session following this Q3 presentation will focus on the third quarter performance, and we would like you to address questions regarding the proposed demerger to the press conference later today.

And with that, it's time to dive into the third quarter. We have delivered another quarter with growing revenues and solid profitability. Book-to-bill is well above 1 in all business areas and is a good indication of continued growth going forward as well. We are experiencing strong demand for our energy-efficient solutions from the vessel market. And despite shipyards receiving fewer orders for new vessels compared to last year, the vessels being ordered are more advanced. There have also been a positive developments in markets where Kongsberg has strong positions, such as the offshore market.

Drones and counter-drone defense have been a topic of high attention over the past year. We deliver systems related to this both from Kongsberg Defence & Aerospace and Kongsberg Discovery. In August 2023, Kongsberg signed a contract for the delivery of CORTEX Typhon counter-drone systems. The first system was delivered and operational within 1 year after signing, and the contract has since been expanded. Over the past year, we have also launched our own drone radar. This was developed in Kongsberg Discovery with the purpose of detecting small commercial available drones and has quickly become a product that has attracted significant interest from both civilian and defense customer.

Kongsberg is well equipped to meet existing and new needs in a world characterized by rapid change. With global presence, close cooperation with authorities, customers and suppliers and an organization driven by high competence and innovation, we continue to create value by delivering solutions that make a difference for our customers and partners.

So over to the business areas. We continue to see a strong order intake from newbuilds in Kongsberg Maritime. So far in 2025, newbuild order intake is up 46% compared to the same period last year. Despite the number of vessels contracted from the yards being down compared to last year, we emphasize that the current contracting favors our exposure. During Q3, order intake was especially strong from the offshore segment. Among others, we signed a contract with Reach Subsea for the design, construction and delivery of 2 additional unmanned surface vessels, vessels number 3 and 4, expanding the pioneering Reach Remote fleet.

This contract reflects a growing industry with confidence in remote and autonomous technologies. For the past couple of years, the strong growth in Maritime has come from aftermarket sales. The sales mix this year has changed more towards newbuilds, which continues to increase our order backlog. We have also previously emphasized that yard capacity is stretched in the short term. On the positive side, the current strong contracting increased the longer-term visibility for us. The backlog for delivery next year is 40% higher than corresponding backlog coverage a year ago.

European defense investments have increased and is expected to continue to increase going forward. Over the past years, we have seen the number and size of orders coming from both Norway as well as the rest of Europe are increasing. In 2023 and 2024, the combined defense revenue from Europe, including Norway, amounted to approximately 50% of our total defense revenue. Looking at our current backlog, 72% of the orders are for deliveries to European customers, including Norway. Our European exposure is expected to stay strong, and we continue to see increased demand, both when it comes to missiles and air defense, including counter-drone capabilities. We have already delivered counter-UAS systems that are deployed in Ukraine, and we are actively working on several leads around the subject. The order backlog coverage for Defence & Aerospace continues to strengthen both in short, medium and long term. And with the strong position we have towards the defense priorities in NATO, we expect the trend to continue to pave the road for further strong growth in the coming years.

In Kongsberg Discovery, order intake year-to-date is up 27% compared to last year. We continue experiencing strong demand for our sensors and underwater technologies and the pipeline continues to be solid, both in the civilian and the defense market, making me very confident of a positive development going forward. An important take when looking at Kongsberg Discovery's order intake year-to-date is the increased exposure towards defense. At Q3 last year, defense contract accounted for approximately 90% of the total, while corresponding figures now is 27% of a NOK 900 million higher total. For the remaining year, Kongsberg have already secured NOK 14 billion worth of orders for deliveries. This is more than NOK 2.6 billion above corresponding number a year ago and indicating growth also in the last quarter of 2025. The main driver will be defense-related revenues.

And with that, I leave the floor to Mette to take us through the financial status.

Thank you, Geir, and good morning to all of you joining us for this Q3 presentation. I'm happy to once again present a quarter which demonstrates solid and profitable growth for Kongsberg. I will now take you through the financial highlights.

For the third quarter, Kongsberg delivered a total of NOK 13.3 billion in revenues with a year-on-year increase of 12%. The growth this quarter comes from Kongsberg Defence & Aerospace, which achieved an impressive 38% growth compared to Q3 last year. The largest revenue contributors were missile projects in air defense with the coastal defense system to Poland being the largest project this quarter. Capacity ramp-up is progressing according to plan, which is key to deliver on the growing order backlog for this business area.

Kongsberg Maritime delivered revenues of NOK 6.39 billion, a year-on-year decline of 1%. In 2025, 2 changes have been made to the business areas portfolio, impacting operating revenues and results. These changes include the divestment of the steering gear and rudder business and the integration of Kongsberg Digital's maritime portfolio. In addition, Q3 2024 was impacted by approximately NOK 100 million in one-offs related to reduced risk in specific projects. Adjusted for these effects, Kongsberg Maritime has an underlying growth of about 2% in the quarter.

The growth was driven by increased delivery volumes to new vessels in several different vessel segments. Currently, the newbuilding market is growing more than the aftermarket, which in the third quarter accounted for 52% of the revenues compared to 56% last year. Newbuilding order intake typically has a longer conversion time to revenue. We expect this shift to lead to a temporarily slower growth rate in the second half of 2025. Going into 2026, we expect growth from Maritime to pick up as we capitalize on the strong order backlog and convert newbuildings orders to revenues.

Kongsberg Discovery delivered NOK 1.1 billion in revenues, 2% below Q3 last year. As previously stated, the contribution from autonomous underwater vehicles will fluctuate between quarters due to the timing of project milestones and deliveries. With a 27% increase in the order intake year-to-date compared to last year, we are confident in the growth for Kongsberg Discovery going forward. The group achieved a quarterly EBIT of NOK 2 billion, representing an EBIT margin of 15.2%. The third quarter typically delivers higher margins due to holiday effects. Compared to last year, EBIT is improved by NOK 155 million and adjusting for the NOK 100 million one-off in Kongsberg Maritime in Q3 last year, the EBIT margin has improved by 0.3 percentage points. Kongsberg Maritime delivered an EBIT of NOK 0.99 billion with a corresponding margin of 15.4%. In Q3 last year, the EBIT was NOK 1.11 billion. Adjusting for the portfolio changes and the one-off in Q3 last year, the EBIT margin in Q3 2025 is at the same level as the underlying EBIT margin in Q3 2024.

Kongsberg Defence & Aerospace delivered NOK 0.87 billion in EBIT with a margin of 14.8%. This compares to NOK 0.69 billion and a margin of 16.2% in Q3 2024. As previously stated, defense margins will fluctuate between quarters depending on project mix and delivery milestones. Kongsberg Discovery reported NOK 0.21 billion and a margin of 19%. This is up from NOK 0.17 billion and 14.9% margin in Q3 last year. Favorable project mix and strong project execution contributed to the increased margins.

We ended Q3 with a solid cash position of NOK 15.76 billion, an increase of NOK 1.38 billion compared to Q2. As working capital remained stable quarter-on-quarter, the increase in cash was primarily driven by EBITDA, which came in at NOK 2.45 billion. Our investment level increased slightly this quarter as we continue to invest in capacity expansion. As mentioned at the Capital Markets Day last year, we expect this level to be maintained for the next years.

Total contribution from associated companies was NOK 124 million in Q3. Our 2 largest associated companies are Kongsberg Satellite Services and Patria. Kongsberg Satellite Services delivered revenues of NOK 562 million in Q3, which is in line with last year. EBIT in the quarter is NOK 140 million with a corresponding EBIT margin of 24.9%. This is an improvement from last year and a result of favorable project mix and execution. The order backlog is NOK 5.2 billion.

Patria reported 39% revenue growth in the third quarter compared to the same quarter last year. The growth was primarily driven by deliveries of armored vehicles. So far, 7 members have joined the CAVS 6x6 vehicle program as Norway and U.K. signed up this quarter. EBIT improved from last year due to scaling effects and increased positive contribution from Nammo. Going forward, we expect Patria to continue to grow with the same seasonality effects that we have seen in previous years and with most of the profits towards the end of the year. Patria's order backlog has increased to EUR 2.6 billion. The improved performance from associated companies contributed to a solid increase in net earnings from NOK 1.4 billion to NOK 1.7 billion, up 24% from the same quarter last year.

And with that, I will leave the floor to Geir for some final remarks.

Thank you, Mette. As we approach the end of this presentation, I would like to summarize the outlook going forward. We continue to be exposed to major global trends across all our business areas. Our products and services, which are based on advanced technology, system integration and years of experience are highly valued in their respective markets. For Kongsberg Maritime, despite the general slowdown in contracted vessels at the yards, our win rate is strong, and we continue to build order backlog. Kongsberg Maritime has a unique combination of product and solutions that are integrated into systems based on our deep domain knowledge.

The maritime industry is at the start of a major energy transition, and we believe Kongsberg Maritime will play an important role in driving this change. The transition towards renewable energy is not only about fuel. It's about making the operations safer, more efficient and reducing costs, which have been on Kongsberg Maritime's agenda for decades.

Kongsberg Defence & Aerospace has a record high order backlog that stretches well into the next decade. We have made significant investment in increased production capacity to meet this demand. And these facilities are progressing as planned. Tendering and marketing activities remain very high and our defense solutions, particularly within missiles and air defense, but also remotely operated turrets and naval are experiencing significant demand globally. Defense spending will increase in the years to come, and Kongsberg Defense and Aerospace will continue to contribute to strengthening of the defense capabilities in Norway and for our allies.

Kongsberg Discovery operates in segments that are increasingly high on the global agenda. Securing critical infrastructure above and below sea level is of utmost importance and the business area delivering cutting-edge solutions to help solve these challenges. In total, at the end of Q3, we have an order backlog of NOK 142 billion and more than NOK 14 billion for delivery in the last quarter of 2025.

As I have mentioned, we have also announced a proposed major strategic move on the path of realizing our long-term growth ambition, that is to demerge Kongsberg Maritime and list it as a maritime technology company on the Oslo Stock Exchange. Kongsberg Defence & Aerospace and Kongsberg Discovery will continue as a technology and defense company, Kongsberg. And we invite you to a press conference today at 9:30 local time to give further information on this proposal. The press conference will be held in Norwegian with English translation and a transcript will be made available in English. Again, we ask that questions regarding the proposed demerger are directed to the press conference.

And with that, I'd like to open for Q&A from our viewers. Thank you.

Thank you. I would also like to remind that we host a conference call for investors and analysts at 11:15 today. So you will find information about that in today's press release. We have a question from Fabian Jørgensen, Pareto. You stated that the Kongsberg Maritime growth will pick up in 2026. Do you mean revenues or orders? And can you elaborate a little bit around that?

Sure. Well, as I mentioned, we are now shifting towards a higher share of newbuilding. And just to also emphasize what Geir said, Kongsberg Maritime has an all-time record high order backlog at the moment, and it's a very good market for newbuilding vessels. So we see that revenue growth will start to pick up in 2026, when we're also done with the portfolio effects that actually took place in the beginning of this year.

Thank you. And then a question from Martin Granviken, Kepler. Last quarter, Kongsberg Defence & Aerospace order intake was NOK 9.8 billion, including a missile contract of NOK 6.5 billion. This quarter, order intake is NOK 7.3 billion with one contract announced of USD 118 million. What is the remaining order intake residual?

Well, Kongsberg Defence & Aerospace had a significant order intake when it came to air defense and anti-drone systems. And also a lot of smaller orders for this business area in this quarter. But air defense and anti-drone systems was also main orders from Kongsberg Defence & Aerospace.

Thank you. And it seems like that is the final question from the viewers. Very clear.

Okay. Thank you very much. And then we look forward to see all of you in the press conference later today. Thank you so much.

Good morning, and welcome to the presentation of Kongsberg H1 '25 Results. Today's presentation will be given to you by President and Chief Executive Officer, Geir Haoy; as well as Chief Financial Officer and Executive Vice President, Mette Toft Bjorgen. This is a webcast-only presentation, but you can submit questions through the webcast frame. Please identify yourself with your name in the question.

And with that, I'll leave the floor to Geir Haoy.

Thank you, Jan Erik, and good morning, and welcome to the second quarter presentation 2025. It is a pleasure for Mette and myself to present another strong quarter for Kongsberg.

I will say that we are developing very well, both in the short and longer term. We have a solid position -- in market position and the demand for our products and solutions is on the high pace.

Let me start with some introductory reflection before I go into more details about the results. During the NATO Summit 2 weeks ago, NATO's 32 members pledged to increase defense spending to 5% of GDP. In a joint statement released during the summit, the alliance also reaffirm the importance of collective defense.

Preparedness and strong defense industry are important. Over the next years, NATO and allies will increase defense investment substantially. Norway shall invest in minimum 5 figures during the next years. The agreement with the selected partner nation for the delivery of new frigates will also include a strong partnership for the industry over the next decades. It is a high priority for Kongsberg that a good industrial package is used as 1 of the main criteria for selection.

In parallel, Norway will modernize its Navy with a new class of standardized vessels designed for flexibility, cost efficiency and rapid delivery. Our Vanguard class meet these operational needs and has already attracted strong international interest.

The ocean space domain has become increasingly important for most nations, not only due to the current security situation, but also when it comes to sustainability. For decades, Kongsberg has pioneered technologies that sold [ channels ] related to the ocean. From implementing hydroacoustics building the first autonomous ship, to use of satellites for surveillance and solutions that protect people and critical infrastructure.

Security and sustainability are increasingly linked. In October this year, the International Maritime Organization will host its Marine Environment Protection Committee meeting, focusing on ship source pollution and greenhouse gas emission. At the same time, they use new Ocean Pact and EUR 1 billion commitment underscore the urgency of innovation.

A good example of how we contribute to a more sustainable future is the vessel Sea Walker. This 90-meter commissioning service operation vessel design and equipment by Kongsberg Maritime is a part of integrated wind Solutions fleet and is built on Kongsberg design. It was named Offshore Energy Vessel of the Year 2025, recognizing its innovative design and efficient operation. I think this is a very good example on how Kongsberg makes a difference.

We have seen contracting at the shipyards come down from the levels they experienced last year. Looking into estimates from external analysts like the ones from Clarkson, show to the top left here, the 2025 level is expected to continue for a few years. When translating this into our market potential, it is important to look beyond the aggregated figures. The majority of the market decline is estimated to come from the seaborne segment. This counts a higher number of vessels, but lower when it comes to potential value and scope for us.

The illustration you see to the right, translates the number of vessels into Kongsberg value. And as we have stated before, the ordering mix continues to look favorable to us.

When looking at statistics, there are a few things to keep in mind. First, it's important to remember that there is typically a lag from a vessel is ordered to our contract is booked. Secondly, and maybe even more important our revenues are not generated at the time of signing. It is generated during the delivery period.

Even though we are starting to see some capacity increase, especially in China, the shipyards are running at nearly 100% utilization and are more or less fully booked for several years ahead. Our revenues from the new building of vessels are less exposed to shorter-term ordering cycles, but more aligned with the delivery cycles, which are seem to continue to be strong.

Ukraine has an urgent need for more cost-effective air defense missiles in large volumes to deal with the airborne threats. In late June, we marked the opening of an office in Kyiv. Together with Ukrainian partners and with support from the Norwegian authorities, we look forward to developing and deliver an effective missile that we can manufacture and deliver in large numbers, and that can be used with our NASAMS air defense system.

I have already mentioned the recent NATO Summit where the new 5% target as well as the importance of collective defense approach was confirmed. As 1 approach to this, Kongsberg Defence & Aerospace and Thales have agreed to acquire 2 of their businesses, Kongsberg's Tactical Communication Unit and Thales' Crypto and Secure Communication Business in Norway. In a joint venture to meet the growing connectivity needs of defense forces in Norway, NATO countries and other allied nations. This new company is a response to the European Armed Forces call for greater interoperability, sovereignty and urgent need for large-scale effectors. The new company will be owned 50-50 by Thales and Kongsberg Defence & Aerospace.

Our Space business is also an area experiencing increased attention. When we presented Q1 in May, we announced the first launch of our first own satellite. Just a few weeks ago, we successfully launched our next 2 satellites. And during Q3, all will be in operation, contributing as a part of the entry satellite constellation to secure better and improved maritime surveillance.

A few weeks ago, we announced the acquisition of Sonatech. Sonatech is a leading underwater acoustic engineering and manufacturing firm, supporting the U.S. Navy. For Kongsberg Discovery, the acquisition of Sonatech will enable increased market access to the major U.S. naval market and also provide a platform to leverage our technology further.

To strengthen maritime prepares, we have recently opened the -- also for critical maritime infrastructure protection test bed in Norway. This is a unique facility focused on protecting critical maritime infrastructure. And with today's more complex threat landscape, the center enhanced our ability to deliver integrated and scalable solutions. Here, partners and authorities can come and simulate scenarios, test solutions and train using live data from radars, satellites and underwater sensors. It's a concrete response to the growing need for security, resilience and readiness.

Looking more specifically at the quarter. We see the maritime order intake to continue to be strong with an increase of 23% and a book-to-bill of 1.18, especially in new build orders have been strong in the quarter. And as I mentioned on the previous slide, the mix of vessels ordered from shipyards continue to be favorable.

During Q2, orders from the offshore segment has been especially strong, and we have 1 solid contracts for deliveries to both series of deep shuttle tankers as well as a series of platform supply vessels.

European defense investments are expected to increase substantially going forward. And we have, over the past years, seen a number and size of orders coming from both Norway as well as the rest of Europe increasing. In 2023 and '24, the combined defense revenue from Europe, including Norway, amounted to approximately 50% of the total defense revenue.

Looking at our current backlog, 71% of the orders are for deliveries to European customer. This exposure was further increased in Q2 with the Joint Strike Missile order to Germany valued at NOK 6.5 billion. And with this order, Germany becomes the fifth nation ordering JSM. The majority of the backlog is focused on air defense and missiles and with a significant number of ongoing sales campaigns, there is no doubt that these 2 areas will have a major impact on our development going forward as well.

In Kongsberg Discovery, we continue to experience strong demand for our sensors underwater technologies. Few major orders were signed during second quarter, making the total slightly softer compared to previous quarter. However, the pipeline continued to be very solid, both in the civilian and also the naval market, making me very confident of a positive development also going forward.

An important take when looking at Kongsberg Discovery's orders intake during the first half year is that the increase Naval exposure. These orders -- this year's orders from naval customers have increased to 25% of the total lowering, a solid proof of that our offerings to this market are in demand. For the remaining year, Kongsberg have already secured NOK 22 billion worth of orders for delivery. This is more than NOK 3 billion above corresponding number a year ago. We are exposed to markets in demand for our technologies. We are continuously adapting. And we have a worldwide network of both our own business and partners that together have a solid foundation for continued growth.

So with that, I will leave the floor to Mette to take us through our financial status.

Thank you, Geir. Good morning, everyone. It's a pleasure to share the half year reporting of 2025 with continued solid performance for Kongsberg. At our Capital Markets Day last year, we presented how our strategy is based on the 2 mega trends, security and sustainability. We set an ambition to triple our revenue from NOK 40 billion in 2023 to NOK 120 billion in 2033 with an EBIT margin of 15%. And 1 year later, I'm pleased to see how we have strengthened our position. We are building on these 2 trends, delivering even more product solutions and services to our customers.

During the first half of the year, we've also taken significant steps to execute on our portfolio strategy. We have acquired Naxys Technologies in Norway and Sonatech in the U.S. and we have launched a joint venture with Thales focusing on secure communication solutions. We've also transferred our digital maritime business from Kongsberg Digital to create improved digital services in Kongsberg Maritime. Our structural initiatives provides important building blocks and assets complementing our organic strategy execution.

For the first 6 months of 2025, revenues came in at NOK 27 billion, which is 19% higher than last year. And as a CFO, it's great to see how the organization is able to transform strong customer demand to profitable growth, resulting in a 24% EBIT growth. This improvement comes from both scale as well as solid project execution and good cost control.

Now looking at the first -- the second quarter, Kongsberg delivered a total of NOK 13.9 billion in revenues with a year-on-year increase of 20%. All business areas contributed to the growth. Kongsberg Maritime delivered revenues of NOK 6.39 billion, a 7% year-on-year growth. The growth was driven by strong activity from automation and control products to a variety of vessel types. The aftermarket is still strong and accounts for 52% of the revenues in the second quarter.

Kongsberg Defence & Aerospace delivers an impressive 38% growth from Q2 last year and is for the first time above NOK 6 billion in quarterly revenues. The largest contributors to the growth were air defense and missile projects.

Kongsberg Discovery achieved NOK 1.23 billion revenues, an increase of 21% year-on-year. The main driver for the increased revenues were high activity related to autonomous underwater vehicles as well as deliveries of subsea mapping and positioning systems. The contribution will vary between the quarters due to the timing of project milestones and deliveries.

The group achieved a quarterly EBIT of NOK 1.92 billion, adjusted for an additional gain from the transaction last quarter, operating result is NOK 1.76 billion, representing an EBIT margin of 12.8%. This is a 0.3 percentage point higher margin compared to last year. Favorable project mix and continued cost control contributed to the margin improvement.

Kongsberg Maritime delivered NOK 0.72 billion with a corresponding margin of 11.2%. In Q2 last year, the EBIT was NOK 0.73 billion. The margin will vary between quarters due to the project mix. The portfolio change in Kongsberg Maritime also reduced margins as we have replaced a mature business with an early-stage growth business with subsequently lower margins.

Kongsberg Defence & Aerospace delivered NOK 0.88 billion in EBIT with a margin of 14.3%. This compares to NOK 0.7 billion and a margin of 15.9% in Q2 '24. As previously stated, defense margins will fluctuate between quarters depending on project mix. The project mix in our current backlog confirms the 2033 target of 15% EBIT margin.

And Kongsberg Discovery reported NOK 0.23 billion and a margin of 18.8%. This is up from NOK 0.14 billion and 14.2% margin in Q2 last year. Favorable project mix, strong project execution and increased volume contributed to the increased margin.

Free cash flow from operations is neutral in the quarter, while the cash position is down NOK 2.07 billion, mainly driven by paid dividend of NOK 1.76 billion and NOK 0.2 billion in paid taxes. The fluctuation in the working capital during the quarter comes from Kongsberg Maritime and Kongsberg Defence & Aerospace. Kongsberg Maritime increased by approximately NOK 500 million, up to 9.1% of revenues. However, we see a solid improvement over the last year. Kongsberg Defence & Aerospace increased by NOK 1 billion as we had large payments to several subsuppliers utilizing prepayments from customers received in previous quarters.

Total contribution from associated companies was NOK 111 million in Q2. Our 2 largest associated companies are Kongsberg Satellite Services and Patria. Kongsberg Satellite Services delivered revenues of NOK 575 million in Q2, which is a year-on-year increase of 2%. KSAT is investing in infrastructure to meet increased market demand. EBIT in the quarter is NOK 121 million with a corresponding EBIT margin of 21.2%. This is an improvement from last year and a result of favorable project mix. The order backlog increased in the quarter to NOK 5.3 billion.

Patria reported 10% revenue growth in the quarter compared to last year. The growth was primarily driven by deliveries of armored vehicles. EBIT improved from last year with an increased positive contribution from Nammo. Going forward, we expect Patria to continue to grow with the same seasonality effects that we have seen in previous years. and with most of the profits towards the end of the year. Patria's order backlog has increased to EUR 2.5 billion and the backlogs from our associated companies are not recognized in Kongsberg's reported backlog.

And with that, I will leave the floor to Geir for some final remarks.

Thank you, Mette. So before we open for questions, let me touch upon the most important drivers for our business going forward. The maritime fleet is aging and the ways for a more energy-efficient maritime fleet is a key driver for the maritime going forward. I touch on the current contracting from the shipyards and would like to emphasize that the mix of orders continue to look favorable. With the uncertainty in the geopolitical landscape as well as more industry-specific challenges, such as a choice of fuel and long lead time on new builds from the shipyards. We also see the demand for upgrades continue to be strong.

As mentioned, later this year, it is expected that IMO will conclude on important elements on the future pathway for the maritime industry. This is important both for the ship owners as well as for us as a supplier in this industry.

We experienced stronger than ever demand for our portfolio of defense system. Defense spending has increased and with NATO agreeing on the 5% spending target, this trend is set to continue. The order backlog in Kongsberg Defence & Aerospace is now at NOK 109 billion, whereof more than 80% is related to missiles and air defense where potential continues to be strong, both with existing customers as well as new ones.

I think it is important to also emphasize that we are enjoying strong position with our remaining defense portfolio. I have already touched on our initiatives on defense communication and space. But for close to 20 years, we have also been a major player within remotely operated turrets and weapon station. This is an area where we continuously experience solid interest, both in Europe but also in U.S.

In Kongsberg Discovery, we are actively expanding our offerings. Most recently, with the acquisition of Sonatech, we are experiencing strong and increased demand for our world-leading portfolio. The naval market and the water surveillance and monitoring as well as protection and surveillance of critical infrastructure are areas of specific interest.

In recent years, Kongsberg has experienced significant growth in Kongsberg Digital, reaching key milestones in the development of the business. In January this year, the maritime operation within Kongsberg Digital were transferred to Kongsberg Maritime. This strategic move enabled Kongsberg to streamline Kongsberg Digital's focus fully on advancing its core offerings within Digital Twin, energy simulation and wells operation.

As a result of this, Kongsberg has initiated an evaluation of strategic options for its ownership in Kongsberg Digital to further realize the value creation potential of Kongsberg envision for Kongsberg Digital. This process may ultimately lead to a transaction. To support the evaluation, Kongsberg has engaged JPMorgan as its financial adviser and further announcement regarding this will be made when appropriate.

So overall, Kongsberg's market position and the demand we are experiencing throughout our business are strong. We are a key player in our markets, and I'm confident that we will continue to deliver on our commitments and our ambition both in 2025 and forward.

With that, I would like to open for questions from our viewers.

We'll start with a question on Kongsberg Maritime. And you touched on the decreased yard ordering or ordering at the yards. Can you elaborate on how the visibility is for Kongsberg Maritime in a market like this?

As we pointed to in the presentation, I think the visibility for Kongsberg Maritime is, I would say it's stronger than it has been for many years, much due to the solid backlog that we have. And also, as I mentioned, the contracting trends is mostly seen in the seaborne segment and that there are contracting out there and these are vessels type that fits Kongsberg Maritime very well. We have historically a very strong market position in these areas. So that's why I'm saying that we are in a market where we see that vessels that are contracting is favorable for cans Maritime. And we have also seen it now with the recent signing of shuttle tankers. It's a series of shuttle tankers, where we get a bigger portion of our portfolio into these type of vessels, which means bigger orders for Kongsberg Maritime. So even though contracting is slightly going down on the -- in general, I think Kongsberg Maritime is well positioned to continue the contracting with a big portion of the portfolio.

Thank you. And a question from Magnus Rasmussen, SEB. You state that the aftermarket in Maritime remains strong. Yet it seems like the aftermarket is down some 4.4% year-on-year. Is this really somehow also related to the sales of the rudders and steering gear business? And what should we expect regarding this going forward?

Yes. Maybe just start comments on the general aftermarket. I think that the aftermarket is, I would say, stable on a high pace, actually. It will vary it within the quarter. We comment on that it's less spare parts this quarter that might also change next quarter. So it will vary somewhat. I think still it's a very strong aftermarket out there. And there will be continuously a need for upgrades. So I think we will see more projects in the aftermarket going forward. So I'm quite positive actually for the aftermarket also looking forward. And you can comment on the sales of rudder.

I can comment on the sales of the steering gear and rudder business. That contributed altogether in 2024 with approximately NOK 1 billion in revenues. And a significant part of this business was also the aftermarket business with margins along the normal Kongsberg margin. So of course, in the first quarter, we reported a quarter with 2 months, including this business. But in the second quarter, we have not reported any inclusion of the serine gear and other business. So of course, this takes away a portion of the aftermarket business that we also reported last year.

Question from [ Sindre Serbi, Arctic Asset Management ], around the same subject. You have already answered when it comes to revenue and profitability, but does it also -- how does it impact on ordering?

Again, this was, as mentioned, is a large portion of that segment was actually aftermarket. So I don't -- I will not see -- I don't see that this will actually impact a lot on the aftermarket. And again, the vessel that we see contracting out there is vessels that where Kongsberg can offering a complete integrated system. That means most of our most of our portfolio will be relevant for that type of vessel and Kongsberg Maritime had 1.18 book-to-bill this quarter. I think it's a very strong quarter for Kongsberg Maritime. And I'm quite optimistic in, let's say, medium term also for all the contracting on the vessel for Kongsberg Maritime.

Thank you. And a question from Fabian Jørgensen, Pareto. I recognize that vessel mix mitigates the effect of lower shipyard volumes. But how should we think about growth rate for Kongsberg Maritime going forward? Can you sustain a 10%-plus growth rate going forward?

If I can just comment on -- we have a long-term strategy, and we have set a long-term target to triple the company towards 2033. I think the order intake and what we've seen in the first half year for Kongsberg Maritime supports this long-term target despite the uncertainty that we see in the market at the moment. Vessel contracting for us, it takes time before we get the orders that are contracted at the shipyards. And of course, shipyards capacity is fully utilized. So in the longer term, we see a strong momentum from this part of the business. And as Geir has explained also in his presentation that the portfolio mix is very favorable to Kongsberg Maritime, and we are still standing by the long-term trend and targets.

Thank you. A question on Kongsberg Defence & Aerospace. The growth that you're delivering here is impressive. How do you plan your capacity going forward to sustain such growth as we see these days?

Yes, I think we have commented on that in earlier quarters as well. We are building now, increasing our capacity both in Norway but also outside Norway, especially within the missile area, so we are now building up capacity in Australia. And later this year, we will also build up -- start building our production facilities in the U.S. And then obviously, we have opportunities also to increase our production capacity in Norway, and we are continuously working with our supply chain. That is, of course, as important as building our own capacity. So this is a continuous process, I would say. We really work hard with our -- all our supply chain. We will continue to robustify it and building up a regional supply chain as well, both in Australia and U.S. So I'm quite comfortable that we are able to deliver on our commitments that we have so far, and we are also capacity to even increase our capacity if required.

And final question. How -- with regards to the long-term 2033 ambition, how do you feel the company is developing towards that?

As I ended my presentation, I am quite confident that we are on the right pace when it comes to that target. It will -- it's a longer period. It will fluctuate for sure. but in the long term and the start we have had on this year gives me even more confidence that we are on the right track to actually deliver on that target.

Thank you. That's the final.

Okay. Thank you. Then I would like to say thank you for joining us this morning and also wish everyone out there a great summer, and we'll see you soon in the autumn. Have a good summer.