TKMS AG & Co. KGaA

Investor Presentation • Dec 8, 2025

Earnings presentation FY 24/25

December 08, 2025

Your Maritime Powerhouse

Agenda & speakers

CEO

Key highlights Financial update & outlook

Paul Glaser CFO

Latest developments in the German defense landscape

Federal budget (Bundeshaushalt) Off-budget fund (Sondervermögen) Bundeswehr x% Growth

Defense budget, Germany¹ in €bn

Recent defense news, Germany

"Germany's new €377B military wish list – a new procurement blueprint […] shows Germany's plan to become the backbone of the continent's defense revival"

November 12, 2025

"Kiel shipyards explore a spectacular merger – GNYK on the verge of being taken over by TKMS"

"€7.8bn for a possible F-126 alternative – according to coalition proposals, an initial €724.7mn from the special fund could be allocated in 2026 [e.g., MEKO A200]"

Improvement across all major financial metrics

Order backlog

€18.2bn

+55% YoY

Adj. EBIT

€131mn

+53% YoY

Free cash flow

€784mn

+€429mn YoY

Revenue

€2.2bn

+9% YoY

Adj. EBIT margin

6.0%

+40% YoY

Key milestones reached by TKMS in FY 24/25

Operations

• Successful sea trials of first Tamandaré-class vessel in Itajaí, Brazil
• Preparations for takeover of Wismar site after delivery of cruise ship Disney Adventure; orders for long-lead items placed
• 2nd of 6 214TN submarines delivered to Turkey¹

Technology

• Launch of OceanX and integration of TCCT to accelerate AI- and autonomy-enabled systems
• Successful tests of network operations for ASW² applications in classified sea trials
• Successful hull design validation during initial trials with MEKO S-X model

Customers

• Record order intake of €8.8bn, led by order of 4 212CD submarines from Germany and 2 submarines from a South-east Asian customer
• TKMS shortlisted as one of two final bidders for CPSP and sole remaining bidder for the F127 frigate (8 units planned)

Order intake driven by submarine program extensions and modernization efforts

Ramp-up of Wismar hybrid shipyard well on track

Wismar hybrid shipyard ramp-up

Ramp-up status

• Production facility and workforce ramp-up on track
• Continuous infrastructure developments taking place without major challenges

Recent achievements

• Prepared assumption of full responsibility for entire site after delivery of cruise ship "Disney Adventure"
• Placed orders for long-lead items (incl. pressure-hull production line)
• Finalized groundwork for submarine hall

Outlook

Start of production expected in 2026

TKMS Group financial results

Order intake

in €mn

Gross margin

in €mn

Revenue

in €mn

Adj. EBIT

Submarines financial results

x% Margin x% Growth

Order intake

in €mn

• Major orders include sale of 6 submarines to Germany and a Southeast Asian customer, as well as German fleet modernization (212A)
• Drop to negative Q4 figures due to adoption of order book driven by lowering of costs

Revenue in €mn

FY 23/24 FY 24/25 Q4 23/24 Q4 24/25

• Revenue growth reflecting construction progress on three major projects
• Q4 in line with full year results; lower than Q4 23/24, which included a large one-time booking under cost-to-cost accounting

Gross margin

• Gross margin uplift of 4.8pp attributable to greater share of higher margin programs
• Q4 jump driven by strong high-margin service business

Surface Vessels financial results

x% Margin x% Growth

Order intake

in €mn

Major orders include research and icebreaking vessel "New Polarstern"

Revenue in €mn

• Revenue contraction reflecting controlled project intake and multi-year projects reaching the end of their manufacturing cycle
• Strong growth, supported by a comparatively soft Q4 23/24

Gross margin

• Stable relative gross margin (~17%) attributable to prudent project selection and disciplined operational execution
• Q4 jump driven by revenue growth and successful warranty claim management

Atlas Electronics financial results

x% ) Margin

x%

Growth

Order intake

in €mn

• Major orders include supplier business for modernization of German submarine fleet and sale of 3 ACTAS systems to Danish navy
• Slight decrease in FY due to shift of system orders of new builds into FY 25/26

Revenue in €mn

• Revenue growth reflecting strong project pipeline and the successful execution of both internal and third-party contracts
• Growth supported by business lines Services, Submarine Systems and Vessel Systems

Gross margin

in €mn

(24.59

• High segment margin driven by growing business and increased standardization and related cost efficiencies
• Gross margin decrease in Q4 24/25 attributable to trailing performance in a Naval Weapons order

Segment contribution bridge to FY24/25 gross margin

Submarines

+xpp

Gross margin uplift of 4.8pp driven by greater share of higher margin programs

Change from FY 23/24

Surface Vessels

Gross margin stable at ~17% based on prudent project selection with disciplined operational execution

Atlas Electronics

Gross margin drop in Q4
24/25 attributable to cost
center Naval weapons, with
other cost centers meeting
or exceeding targets

TKMS Group NWC, CAPEX development, and capital structure

^1. Defined as contract assets + advance payments to suppliers (which form part of other financial assets) – contracts liabilities; 2. Sum of total capex for tangible and intangible assets, purchases of investments accounted for using the equity method, less proceeds from disposals (corresponds to "Cash flows from investing activities (adjusted)"); 3. Unaudited; 4. Comprises of Cash and cash equivalents and Receivables from cash pooling arrangements with tk Group; 5. Comprises of current and non-current lease liabilities and current bank borrowings. No drawdown has been made from the €300mn revolving credit facility provided by thyssenkrupp AG; accordingly, it is not reflected in total financial indebtedness; 6. Comprises of provisions for pension and similar obligations and provisions for other non-current employee

TKMS Group free cash flow development

TKMS cash flow statement

	FY 22/23	FY 23/24	FY 24/25
Operating cash flows	304	458	948 1
Net CAPEX1,2	(125)	(102)	(164) 2
Free cash flow2 3	180	355	784

• 1 Exceptionally high cash flow from decrease in NWC driven by substantial down payments from newly contracted orders, securing liquidity across whole production life cycle
• 2 Rise in Net CAPEX in line with strategic priorities, driven by Wismar ramp-up, and digitalization and modernization investments; largely customer prefunded
• 3 Strong free cash flow profile supports efficient long-term capital deployment

Guidance & mid-term financial targets

Revenue growth

Adj. EBIT

Adj. EBIT margin Further increase

CAPEX

Dividend payout1,² 30% to 50%

-1% to +2% YoY

€100 to 150mn

FY 25/26 Guidance Strategic mid-term targets

~10% revenue CAGR from FY 24/25E with back-end growth acceleration

EBIT margin >7.0%

~€200mn in FY 25/26E, including for expansion of Wismar Gradual decline to mid-term target of ~4% of revenue

D&A Expected at ~3.5% to 4.0% of revenue ¹

Rolling 3-year cum. FCF¹ >€400mn, over three years starting FY 25/26

If you have further questions, please reach out to our Investor Relations team

Jacques R. Esser

Head of Investor Relations, Senior Vice President

jacques.esser@tkmsgroup.com

Ariane Jonas

Annual General Meeting, Executive Assistance

ariane.jonas@tkmsgroup.com

Johannes Braun

Institutional & Retail Investors, Analysts

johannes.braun@tkmsgroup.com

Gabriel Freudenthaler

Institutional & Retail Investors, Analysts

gabriel.freudenthaler@tkmsgroup.com

Investor telephone: +49 431 700 3361

Disclaimer

This presentation has been prepared by TKMS AG & Co. KGaA ("TKMS") and comprises the written materials/slides for a presentation concerning TKMS. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This presentation is for information purposes only and the information contained herein (unless otherwise indicated) has been provided by TKMS. It does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in TKMS or any other securities. Further, it does not constitute a recommendation by TKMS or any other party to sell or buy shares in TKMS or any other securities and should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice. This presentation has been prepared without reference to any particular investment objectives, financial situation, taxation position and particular needs. In case of any doubt in relation to these matters, you should consult your stockbroker, bank manager, legal adviser, accountant, taxation adviser or other independent financial adviser. The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. To the extent permitted by applicable law, none of TKMS or any of its affiliates, advisers, connected persons or any other person accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contain herein. This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. When we use words such as "plan," "believe," "expect," "anticipate," "intend," "estimate," "may" or similar expressions, we are making forward-looking statements. You should not rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from those indicated. Any assumptions, views or opinions (including statements, projections, forecasts or other forward-looking statements) contained in this presentation represent the assumptions, views or opinions of TKMS as of the date indicated and are subject to change without notice. TKMS neither intends, nor assumes any obligation, unless required by law, to update or revise these assumptions, views or opinions in light of developments which differ from those anticipated. All information not separately sourced is from internal company data and estimates. Any data relating to past performance contained herein is no indication as to future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto. This presentation contains certain supplemental financial or operative measures that are not calculated in accordance with IFRS and are therefore considered as non-IFRS measures. We believe that such non-IFRS measures used, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance the understanding of our business, results of operations, financial position or cash flow. There are, however, material limitations associated with the use of non-IFRS measures including (without limitation) the limitations inherent in the determination of relevant adjustments. The non-IFRS measures used by us may differ from, and not be comparable to, similarly titled measures used by other companies. All numbers shown are as reported, unless otherwise stated. All numbers shown are as reported, unless otherwise stated. All amounts are stated in million euros (€mn) unless otherwise indicated. Amounts between €0.5mn and €0 are rounded and reported as €0. Rounding differences may occur.

21

Appendix

FY 24/25 combined statement of income

	Year ended	Year ended
In €k	Sept. 30, 2024	Sept. 30, 2025
Sales	1,986,551	2,171,369
Cost of sales	(1,673,492)	(1,788,260)
Gross margin	313,059	383,109
Research and development cost	(47,716)	(54,713)
Selling expenses	(71,481)	(78,623)
General and administrative expenses	(114,718)	(139,780)
Other income	29,604	56,136
Other expenses	(30,303)	(53,647)
Income from operations	78,445	112,482
Income (loss) from companies accounted for using the equity-method	2,343	1,306
Finance income	70,296	69,526
Finance expenses	(22,303)	(29,918)
Financial income/(expense), net	50,336	40,914
Income before tax	128,781	153,396
Income tax (expense)/income	(41,182)	(45,351)
Net income	87,599	108,045
Thereof:
attributable to tk Group	82,946	105,013
attributable to non-controlling interests	4,653	3,031
Earnings per share (in EUR) for profit for the period attributable to shareholders based on the capital structure of TKMS AG & Co. KGaA
Basic	1,31	1,65
Diluted	1,31	1,65

FY 24/25 combined statement of cash flows

	Year ended	Year ended		Year ended	Year ended
In €k	Sept. 30, 2024	Sept. 30, 2025	In €k	Sept. 30, 2024	Sept. 30, 2025
Net income/(loss)	87,599	108,044	Purchase of investments accounted for using the equity method and non-current financial assets	(15)	-
Adjustments to reconcile net income/(loss) to operating cash flows:	87,599	108,044	Capital expenditures regarding property, plant and equipment (inclusive of advance payments) Capital expenditures regarding intangible assets (inclusive of advance	(83,673)	(121,015)
Deferred income taxes, net	69,379	32,725		(20,024)	(43,921)
Depreciation, amortization and impairment of non-current assets	72,426	76,582	payments)
Reversals of impairment losses of non-current assets	(165)	48	Proceeds from disposals of property, plant and equipment, intangible assets, investments accounted for using the equity method and other non-current assets	1,461	1,046
Income (loss) from companies accounted for using the equity-method	(2,343)	(1,306)	Cash pool withdrawals (deposits)	272,490	1,106,587
(Gain)/loss on disposal of non-current assets	155	123	Cash flows from investing activities	170,239	942,697
Changes in assets and liabilities, net of non-cash effects:			Proceeds from / repayments of liabilities to financial institutions	192	14,491
– Inventories	(35,349)	(78,871)	Cash flows from redemption of lease liabilities	(9,999)	(7,042)
		Profit loss transfers received (paid)	51,733	147,240
– Trade accounts receivable	(74,092)	(6,368)	Transactions with tk Group	(683,097)	(440,550)
– Contract assets	49,299	96,771	Cash flows from financing activities	(641,171)	(285,861)
– Provisions for pension and similar obligations	(4,479)	(4,103)	Net increase/(decrease) in cash and cash equivalents	(13,418)	1,604,918
– Other provisions	28,721	(20,128)	Effect of exchange rate changes on cash and cash equivalents	(15,459)	(5,101)
			Cash and cash equivalents at beginning of year	150,914	122,037
– Trade accounts payable	47,353	16,570	Cash and cash equivalents at end of year	122,037	1,721,854
– Contract liabilities	334,457	813,269	Additional information regarding interest and income tax amounts included in operating cash flows:
– Other assets/liabilities not related to investing or financing activities	(115,447)	(85,274)	Income tax paid	(24,994)	(822)
Operating cash flows	457,514	948,082	Interest received	66,867	60,704
			Interest paid	(4,743)	(6,198)

FY 24/25 combined statement of financial position

	Year ended	Year ended		Year ended	Year ended
In €k	Sept. 30, 2024	Sept. 30, 2025	In €k	Sept. 30, 2024	Sept. 30, 2025
Goodwill	1,043,676	1,043,676	Provisions for pension and similar obligations	366,502	343,604
Intangible assets other than goodwill	270,780	284,288	Provisions for other non-current employee benefits	12,182	15,317
Property, plant and equipment	487,946	531,906	Other provisions, non-current	5,609	305
Investments in equity-accounted investees	6,249	7,555	Deferred tax liabilities	202,712	237,034
Other financial assets	14,441	10,285	Lease liabilities, non-current	26,990	26,338
Other non-financial assets	93,765	119,218	Other financial liabilities, non-current	14,556	7,067
Deferred tax assets	17,645	12,807	Total non-current liabilities	628,551	629,665
Total non-current assets	1,934,502	2,009,735	Provisions for current employee benefits	36,658	39,550
Inventories	244,629	322,650
Trade accounts receivable	281,019	284,935	Other provisions, current	354,082	332,528
Contract assets	401,349	300,396	Current income tax liabilities	13,676	13,509
Other financial assets	1,346,202	151,064	Lease liabilities, current	5,750	6,360
Other non-financial assets	594,999	600,678	Trade accounts payable	411,395	423,170
Current income tax assets	5,664	4,715	Other financial liabilities, current	122,829	348,964
Cash and cash equivalents	122,037	1,721,853	Contract liabilities	1,543,282	2,349,242
Total current assets	2,995,899	3,386,291	Other non-financial liabilities	216,161	167,522
Total assets	4,930,401	5,396,026	Total current liabilities	2,703,833	3,680,845
Equity and liabilities			Total liabilities	3,332,384	4,310,510
Invested equity attributable to tk Group	1,676,319	1,166,304	Total equity and liabilities	4,930,401	5,396,026
Cumulative other comprehensive income	(89,500)	(94,622)
Equity attributable to tk Group	1,586,819	1,071,682
Invested Equity attributable to non-controlling interests	11,198	13,834
Total equity	1,598,017	1,085,516

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Order intake, revenue and gross margin by segment

	Submarines				Surface Vessels				Atlas Electronics
In €k	FY 23/24	FY 24/25	Q4 23/24	Q4 24/25	FY 23/24	FY 24/25	Q4 23/24	Q4 24/25	FY 23/24	FY 24/25	Q4 23/24	Q4 24/25
Order intake	429,000	7,115,1 87	158,559	(75,386)	56,534	1,226,05 0	47,349	66,046	892,616	685,377	443,744	456,639
Revenue	975,651	1,141,9 94	351,094	288,079	570,850	503,449	73,634	135,100	589,815	700,913	185,800	224,214
Gross margin	72,646	138,938	20,470	48,258	95,463	84,292	8,249	24,918	143,616	158,573	45,457	43,913
Gross margin, in %	7.4	12.2	5.8	16.8	16.7	16.7	11.2	18.4	24.3	22.6	24.5	19.6

TKMS

FY 24/25 adj. EBIT reconciliation

	Year ended	Year ended
In €k	Sept. 30, 2024	Sept. 30, 2025
Profit/(loss) from operations	78,445	112,481
tk Group trademark fee	4,325	4,127
Income / (expense) from at-equity valuation	2,343	1,306
Other special items	471	4,369
Transaction costs	-	8,558
Adjusted EBIT	85,585	130,841