TKMS (TKMS) German Select VII Conference summary

Business overview and market position

• Leading supplier of conventional submarines, with 70% of NATO's fleet sourced from the company.

• Three main segments: Submarines, Surface Vessels (frigates), and Atlas Elektronik (sonar, combat systems, underwater drones).

• 185 years of experience, 9,000 employees, and €2.2 billion in annual sales, split 50% submarines, 25% surface vessels, 25% Atlas Elektronik.

• Defense budgets and industry markets are growing globally, with expected 8% market growth.

Product portfolio and innovation

• Submarine segment includes export-focused 209, advanced 214, and most advanced 212CD class, with Stargazer unmanned submarine in development.

• Surface vessels range from large MEKO A-400 air defense frigates to smaller A-100 ships, with contracts in Germany, Egypt, and Brazil.

• Atlas Elektronik segment offers sonar, combat systems, underwater drones, mine hunting systems, and torpedoes, with highest growth and margins.

• Unmanned vehicles like SeaCat and unmanned speedboats are already deployed, with others under development.

Order backlog and pipeline

• Current order backlog exceeds €20 billion, nearly 10x annual revenues, driven by submarine and icebreaker contracts.

• Major pipeline projects include final negotiations for six submarines with India (sole bidder), up to 12 submarines for Canada (one competitor), and eight F127 frigates for Germany (sole bidder).

• Potential pipeline could double backlog to €40 billion if all campaigns succeed.