Slides
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July 2025 YOUR MARITIME POWERHOUSE Meet the Management
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Disclaimer This presentation has been prepared solely for the use at this meeting. By attending the meeting where this presentation is made or accessing this presentation, you agree to be bound by the following limitations. This material is given in conjunction with an oral presentation and should not be taken out of context. This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, any securities of the business segment Marine Systems of the thyssenkrupp AG group, to be spun-off as the separate legal entity TKMS AG & Co. 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3 Steering from the bridge – highly experienced management team with strong execution track record and clear long-term vision Paul Glaser CFO Angelika Kambeck CHRO Oliver Burkhard CEO Dr. Dirk Steinbrink CTO
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TKMS ready for multi-decade growth journey We fixed our basics … … and are scaling our business … … to expand & grow our potential! Realized success with our record order book across all segments as foundation for growth Increase output at attractive margins through focus on execution excellenceFixed the basics to ensure a sustainable turnaround Expand position in core, drive future of naval warfare, and get stronger through growth 4 Managed the transformation Filled the funnel Excel in delivery Win the future
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1. Since founding of predecessor firm; 2. Accounting for all supplied TKMS vessels since 1960 (submarines/surface vessels); 3. Estimated cumulative years of operation of all TKMS vessels sold (segments Submarines and Surface Vessels) ; 4. Historical figures have been restated and may differ from previously reported numbers due to changes in accounting presentati on, segment realignment and stand-alone costs allocation; 5. Conventional referring to non-nuclear submarines (i.e., typically diesel-electric and air independent propulsion (AIP) based); 6. Attainable markets are all non-sanctioned countries with realistic potential. This excludes markets with national champions in the respective segment and categories not relevant for TKMS (e.g., nuclear submarines, aircraft carriers, and amphibious ships); 7. Based on new del iveries in attainable market for TKMS within the last decade (2015-2024); 8. Surface vessels are defined as corvettes, frigates, destroyers, mine warfare/countermeasure ships, and offshore patrol vessel (OPV) TKMS – Your Maritime Powerhouse Submarines 5 #1 supplier of conventional submarines5,6,7 1 Surface Vessels 3 Top 3 supplier of surface vessels6,7,8 A leading player for naval software & electronics Atlas Electronics ... and strong financialsEstablished player ... ... with global footprint ... >185 Years experience1 >8,500 Employees ~€18bn Order backlog as of May-25 ~€2.0bn Revenue FY23/24A4 ~€86mn Adj. EBIT FY23/24A4 >50 Usercountries >330 Supplied vessels2 >10,000 Total years of operation3
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61. Based on latest available backlog information over 2023/24A revenues Record order book provides multi-year revenue visibility … Order backlog, in €bn High visibility on future revenues through secured order backlog Backlog at record high resulting in a cumulated revenue coverage of ~9x1 Significant pipeline provides potential for further upside Sep-20 Sep-24 May-25 ~18 6.0 11.6 >50% Backbone for future success
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7 1. Market size between 2024 and 2033 based on projected annual basis with attainable markets including all non-sanctioned countries with realistic potential. This excludes markets with national champions in the respective segment and categories not rele vant for TKMS (nuclear submarines, aircraft carriers, and amphibious ships); 2. Based on a comprehensive portfolio offering including conve ntional submarines (including diesel-electric and AIP systems), mid-size surface vessels (e.g., frigates, corvettes, destroyers), e lectronic systems (including sonar and sensor systems, torpedoes, uncrewed vehicles, naval communications systems and combat management systems ), software and services; 3. Based on new deliveries in attainable market for TKMS within the last decade (2015-2024) … and positions TKMS well for long-term profitable growth Key investment highlights 1 Strong market outlook Large and sustainably growing attainable market projected, with additional upside from European defense budget expansion Double market size by 2033 vs. 20241 2 Maritime Powerhouse Leading “maritime powerhouse” providing integrated maritime solutions in submarines, vessels, software, and electronic systems Only fully integrated naval solution provider in Europe2 3 Technology leader Technology and quality leader at the forefront of shaping software, electronics, and platforms for the future battlefield #1 in conventional submarines3 4 Primed for growth Substantial backlog and ever-increasing pipeline at attractive margins through focus on execution excellence ~€18bn order backlog as of May-25 5 Strong financials Attractive financial profile with highly visible and resilient growth, translating into strong cash generation +230bps adj. EBIT margin uplift from 21/22A to 23/24A
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8Source: TeleGeography Increasing need for naval capabilities in defending peace and security Maritime infrastructure is interconnected internationally Defend national sovereignty & coastlines Protect shipping routes & global trade Safeguard critical infrastructure ILLUSTRATIVE Shipping pointShipping route Interconnection point Subsea cable 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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9 1. Employing a fixed exchange rate from 28th March 2025 for conversion into €, while historical exchange rates are employed for Türkiye to account for substantial depreciation; 2. For the maximum potential uplift, where maximum is defined as defense budgets reaching 3.5% of GDP; 3. Including half of the maximum potential European uplift (i.e., €995bn + €610bn + half maximum potential uplift (1/2*€355bn) in 2030); 4. European NATO; 5. Attainable markets are provided in revenues and are non-sanctioned countries with realistic potential. This excludes markets with national champions in the respective segment and categories not relevant for TKMS (nuclear submarines, aircraft carriers, and amphibious ships). Partially attainable markets are included for electronics. For electronics, all categories are relevant (incl. aircraft carriers etc.); 6. Incl. electronics for non-TKMS platforms in all categories; 7. Electronics for surface vessel; 8. Electronics for submarines Source: McKinsey (“Drei Kernfragen zu Verteidigungsausgaben” – June 2025); NATO; National defense budgets; U.S. Department of Defense; Canada Department of National Defense; TKMS analysis TKMS attainable market to nearly double Growing defense budgets … … gradually translate into increasing equipment spend Annual defense budgets, nominal in €bn1 Attainable market by TKMS segments5, nominal in €bn 620 925 995 210 435 610 970 2014 2024E 2030E Potential European uplift from NATO developments in 20252 830 1,360 Up to 3555%3 4 10 2 14 5 2024 17 5 20 7 2030E 22 7 23 9 2033E 31 49 61+8%8% 9%6 6% 8% CAGR 12%6 8 7 ∑ ~€1,750bn Expected cumulative increase 25E to 30E2 CAGR Surface vessels Submarines Electronics 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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10 Resilient market with product longevity and long-term purchasing decisions Attractive governmental customers, bringing recurring services and OE business Trust as a key factor in supplier selection given public profile of contracts Deep customer partnerships Long-term purchasing strategy due to +40 years of average operational usage High versatility for deployment across range of peer-to-peer and hybrid mission profiles Strategic assets, not “consumables” Consistent baseload demand with potential of situational uplifts Substantial share of future revenue already backed by orders today Peace-resilient demand 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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11 Maritime Powerhouse – three synergetic segments “One-stop shop” End-to-end maritime offer from platforms, naval systems to effectors Full integration of platforms and technologies Intra-company synergies Improved lead times through direct OEM-supplier setup Reduced intra-company contractual friction (e.g., no claims) Established foundation for growth Diversified partnership model enabling capacity balancing Active role in consolidation of European defense, including partnerships Surface Vessels Atlas Electronics Submarines 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Our USP as maritime solution provider
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# of vessels EDC Volume for TKMS8 212CD 1st batch 69 2021 ~€5.6bn 212CD 2nd batch 4 2024 ~€4.7bn Classified 3 2022 ~€3.0bn 12 1. Conventional refers to non-nuclear submarines (i.e., typically diesel-electric and AIP based); 2. In TKMS attainable markets. Attainable markets are all non-sanctioned countries with realistic potential, i.e., excluding markets with national champions for submarines and categories not relevant for TKMS (i.e., nuclear submarines); 3. Air-independent propulsion; 4. Including 218SG variant; 5. Comprises platform 212A to 212CD; 6. Including Dolphin predecessor; 7. Comprises for instance continuation of development of exist ing platform 209 to 209NG; 8. Indicated price reflects base price, excluding further escalations for the full program including options; 9. 4 sub marines of Norway and 2 submarines of Germany Submarines: Market leader with decades of experience and cutting-edge technology Submarine familiesKey highlights #1 supplier of conventional submarines1,2 Strong innovation portfolio including leading AIP3 High added value from full value chain coverage Multi-decade visibility and growing order backlog Decade-long customer relationships Commercial offering and customers Two shipyards in Kiel and Wismar with proprietary pressure hull production line Flexibility with possibilities of contracting “Material packages” and partner shipyards for local capacity In-house submarine crews and training team In development Class 209 Class 2144 Dakar6Class 2125 Next generation7 Stargazer Key programs Live portfolio 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials AIP3 fuel cellDiesel-electric Unmanned
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# of vessels EDC Volume for TKMS1 F1272 5+13 2026 tbd New Polarstern 1 2024 ~€1.2bn Tamandare 4 2020 ~€2.1bn 13 Surface Vessels: Cutting-edge, modular vessels with flexible production capacity Vessel familiesKey highlights Modular MEKO® design to serve attractive segment Cutting-edge innovation incl. uncrewed systems Sophisticated design with proven product quality Strong growth outlook with clear view on pipeline Strategic international construction partnerships Two shipyards in Wismar and Itajai for vessel construction High inhouse design capabilities as large system integrator Various construction partnerships to increase capacity and fulfill local production requirements In development MEKO® A-400 (F127) Key programs 1. Indicated price reflects base price, excluding further escalations; 2. In a partnership model with NVL; 3. Expected order of 5 surface vessels with 1 additional optional vessel to materialize in 2025/26; 4. Meko A-200® general purpose frigate supplied to several navies (South Africa, Algeria, Egypt, and prospectively Australia) MEKO® A-2004 Commercial offering and customersLive portfolio 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Frigates Uncrewed Special purpose vessel Ongoing sales campaign F125 K130 SA’Ar 6 New Polarstern MEKO® S-X MEKO® A-100
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# of projects EDC Volume for TKMS1 MCM 33 2024 ~€300mn SeaSpider Europe and NA2 73 20264 tbd 212CD 1st and 2nd batch 105 2021 ~€700mn5 14 Atlas Electronics: Fully integrated sensor-to-shooter software & electronics offering Product offeringKey highlights A market leader of naval software & electronics Platform agnostic across the product portfolio Innovation leader for software & electronics Double-digit EBIT margins with clear potential for growth Global presence, serving 40+ navies Five production sites in Germany and the UK Leading engineering capabilities for system integration across platforms Portfolio focused on electronics with an increasing share of software solutions Hardware-focused Software-focused Services Live portfolio Sonar & acoustic sensors Uncrewed naval assets Specialized naval software Naval weapons Service Key programs 1. Indicated price reflects base price, excluding further escalations; 2. Project within mature pipeline, no contract yet; 3. Number of projects, covering multiple assets per project; 4. 2026 represents the first expected EDC, further EDC coming in the following years to cumulate in the total volume of ~€650mn; 5. 2 optional submarines without order intake yet; 5. Volume represent a subpart of the total order volume of the 212CD order of TKMS as a whole Commercial offering and customers 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Ongoing sales campaign
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15 Clear strategy to ensure technological advantage today and in the future Control hub Uncrewed communication point ILLUSTRATIVE VIEW ON KEY FEATURES OF THE FUTURE NAVAL ECOSYSTEM Expertise in data analytics, with proprietary data access to deliver on increasing complexity autonomy and AI use cases AI-based orchestration and multi-domain operation Technology transfer from existing platforms to autonomous uncrewed platforms In-house electronics capabilities to facilitate development of existing platforms Evolvement and automation of crewed platforms Autonomous uncrewed sensors and platforms 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials TKMS success factors Availability enhancement through prescriptive maintenance
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16Source: Deutsche Marine 2035+; Jahresbericht des Marinekommandos; Annual reporting of Royal Norwegian Navy, Royal Navy, Indian Navy, and Royal Australian Navy TKMS well positioned to deliver on changing naval doctrines 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Changing navy doctrines around the globe … Reinforced mission profiles … developing an evolved capability profile Undersea warfare and coastal defense Maritime strike Territorial defense In existing portfolio of TKMS In development by TKMS Modular platforms High durability Enhanced sensorics Effectors for all domains Enhanced stealth Increasing speed and mobility AI-based operations Today Tomorrow Multi-domain operations Autonomous platforms
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171. Use cases include, i.e., anti submarine warfare Fully integrated, end-to-end offering of crewed and uncrewed platforms Evolution of crewed naval platforms ... ... and complementary uncrewed systems ILLUSTRATIVE VIEW ON KEY TKMS’ PRODUCTS End-to-end systems with full integration 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials General purpose frigate Advanced stealth submarine Semi- submersible Defensive anti-torpedo- torpedo Minesweeping system Autonomous underwater vehicle1 Heavy combat frigate 212CD MEKO® A-200 MEKO® A-400 AMD MEKO® S-X SeaSpider Stargazer ARCIMS Software-based orchestration for interconnected operations Interconnecting
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18 TKMS think-tank “OceanX” crystalizes trends to action … catering to customers’ and management’s need for value-driven business development … accelerating innovations and time-to-market in lean and data-driven approach Scouting emerging technologies Artificial intelligence excellence center (TCCT) Central R&D alignment Long-term direction of the company Strategic intelligence collection M&A target screening Product portfolio/ lifecycle management Demonstrator/ MVP development Operational conceptualization … leveraging complementary, strategic, technological and market trends OceanX Technology Operating Units Strategy 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Mission: Defend technology leadership through …
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Campaign Customer Segments 212CD Options2 Canadian Patrol Submarine F127 191. Non-exhaustive selection of TKMS campaign pipeline; 2. Two optional units additional to the already contracted 4 submarines for Norway Additional material upside from pipeline Key sales campaigns1 Order backlog, in €bn Atlas ElectronicsSurface Vessels Submarines 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Sep-20 Sep-24 May-25 Going forward ~18 6.0 11.6 20.0 Already secured record order backlog … … with further potential beyond
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20 1. Three shipyards and four main Atlas Electronics production sites – Atlas with further small-scale sites with <50 FTEs in production not considered, also not accounting for sites conducting only engineering services; 2. Supplier location in Germany and European NATO; 3. Organic growth; 4. Comparing the order intake GM from all build submarine projects between 2010 and 2020 to all submarine projects after 2020, excl. one program with classified financial information; 5. Based on reduction in contractually guaranteed delivery times comparing legacy contracts to latest available contracts. ETC reduction and contractually agreed delivery time is contract specific and can differ if TKMS needs to account for special construction requirements prohibiting faster delivery times. Clear focus on profitable growth through operational excellence Operational excellence – efficiency gains along the product life cycle 7 own key production sites1 State-of-the-art facilities and tools -17 months reduction in expected time to completion (ETC)5+7pp. improved gross margin at order intake from pre 2020 order intakes to post 2020 order intakes4 >25% employee growth over L5Y3 Skilled people and efficient processes >90% of materials nearshored2 Resilient and scalable supply chain >20 global (production) partners Network of global partners to scale capacities 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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21 1. Not exhaustive list of facilities, Wedel also additional site in Germany with >100FTE ; 2. The Wismar site has facilities for the construction of submarines and surface vessels; 3. Engineering office spaces not requiring Capex investments; 4. Capex figures do not include financial investments, leases based on IFRS, and activation of R&D Well invested production footprint to deliver on record order backlog TKMS key facilities1 Dorset Software & Elect. Wismar1 Shipyard Kiel Shipyard Wismar2 Shipyard Hamburg + Emden3 Engineering Itajai Shipyard Flintbek Software & Elect. Bremen Software & Elect. Submarines Surface Vessels Atlas Electronics 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Cumulated capex L3Y4 >€300mn locations globally >25 Munich3 AI Development
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22 1. Can vary depending on chosen tendering procedure; 2. Includes definition, basic and detailed design activities; 3. Include s setting-to-work activities on system level and a comprehensive test and verification program of the vessel; 4. Designated duratio ns to be understood as execution time for first vessel of the program Significantly increased margin stability throughout project life Bidding Design2 Implemented improvement measures for operational efficiency along the program life cycle ~2y4 Leveraging of established & proven technologies Strong engineering processes Well-invested production sites and new processes Capping final payments to 5% of total program value Streamlining testing & training through standardized design Continuous monetization of change requests Construction3 Commissioning ~5y ~3y Clear contractual set- ups High hurdle rates and integration of price indexing clauses ~2y1 Supported through rigorous project risk management 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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23 Strong growth with another step up in order book Order backlog, in €bn Sales1, in €bn Years of strong topline growth culminated in ~€2bn of record sales in FY23/24A Sizeable order book ensures clear visibility into sustained topline growth, allowing focus on profitable execution Robust order backlog through the cycle with another substantial step up this year Strong momentum driven by strategic wins and a pipeline poised for significant additional growth 5.9× Record sales of around €2bn in FY23/24 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Sep-24 May-25 11.6 ~18 FY21/22A FY23/24A 1.7 2.0+8% Strong step up in order book CAGR 1. Historical figures have been restated and may differ from previously reported numbers due to changes in accounting present ation, segment realignment and stand-alone costs allocation ~9× Revenue cover FY23/24A
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FY21/22A FY23/24A Going forward 2.0% 4.3% +2.3pp. Increased operational efficiency and utilization of asset base Increased software & electronics share Embedded margin uplift by new orders and phase out of lower margin backlog 24 Structural step up in profitability and a clear path towards further margin progression Strong margin improvement… 34 86 Adjusted EBIT margin1, in % … with further upside potential Adjusted EBIT, in €mn 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials Stylized margin development 1. Historical figures have been restated and may differ from previously reported numbers due to changes in accounting present ation, segment realignment and stand-alone costs allocation
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251. E.g., ~5% advance payment at the beginning of a respective project; 2. Defined as contract assets + advance prepayments – contracts liabilities Highly cash generative business over entire lifecycle of projects Indicative cash profile: Net positive funding … … resulting in highly efficient working capital Highly cash generative business over entire project lifecycle Milestone-driven payments with constant overfunding until delivery1 Indicative production cycle: 5–12 years Cash out Overfunding Cash in Very efficient and fully funded working capital model Inventories and receivables significantly overcovered by trade accounts payable and net advance payments Trade accounts receivable Inventories Trade accounts payable Net advance payments2 NWC, in €mn Design1 Construction Commissioning FY21/22A FY23/24A (82) (483) 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials
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26 Well-invested business with strong underlying cash generation 1 Strong market outlook 2 Maritime Powerhouse 3 Technology leader 4 Primed for growth 5 Strong financials 130 104 FY21/22A FY23/24A FY21/22A FY23/24A 275 296 Highly cash generative businessStrong investment years to deliver on future growth Net capex1, in €mn FCF, in €mn Net capex, in % of sales 1. Sum of total gross capex for tangible and intangible assets, purchases of investments accounted for using the equity metho d, plus other related items, less proceeds from disposals; 2. Excludes cash pool withdrawals and deposits 7.7% 5.2% Highly cash generative business model providing the financial foundation for future growth Significant capex spending of >300m EUR over last three years to prepare for upcoming growth Further investments strongly supported by customer pre-funding (e.g., expansion of Wismar) Operating CF Investing CF2
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27 Summary: Key investment highlights 1 Strong market outlook Double market size by 2033 vs. 20241 2 Maritime Powerhouse Only fully integrated naval solution provider in Europe2 3 Technology leader #1 in conventional submarines3 4 Primed for growth ~€18bn order backlog as of May-25 5 Strong financials +230bps adj. EBIT margin uplift from 21/22A to 23/24A 1. Market size between 2024 and 2033 based on projected annual basis with attainable markets including all non-sanctioned countries with realistic potential. This excludes markets with national champions in the respective segment and categories not rele vant for TKMS (nuclear submarines, aircraft carriers, and amphibious ships); 2. Based on a comprehensive portfolio offering including conve ntional submarines (including diesel-electric and AIP systems), mid-size surface vessels (e.g., frigates, corvettes, destroyers), e lectronic systems (including sonar and sensor systems, torpedoes, uncrewed vehicles, naval communications systems and combat management systems ), software and services; 3. Based on new deliveries in attainable market for TKMS within the last decade (2015-2024)
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Investor Relations Contact: Jacques Esser SVP Investor Relations +49 172 1012242 jacques.esser@tkmsgroup.com YOUR MARITIME POWERHOUSE