Marine Systems

Order intake and sales

Marine Systems reported significantly higher order intake in the reporting year than in the prior year. The main reason for this was the addition of four submarines in a substantial extension of the order for the German-Norwegian 212CD program and the addition of two submarines to the existing order from Singapore. We were also awarded the contract to build the Polarstern II ice-breaking research vessel for the Alfred Wegener Institute. Moreover, we concluded a large service order to provide modernization and support services for the German Navy’s six submarines.

Sales in the reporting period were above the prior-year level. This was primarily due to project progress in the new construction business and in the marine electronics and software businesses. Thanks to extensive order intake in recent years and the major orders received in the past fiscal year, the order backlog as of the reporting date was at a record level of €18.2 billion (prior year: €11.7 billion).

Adjusted EBIT

In the reporting period, adjusted EBIT was slightly above the prior-year level. Despite various one-time effects (e.g., the costs of clarifying the allocation of contractual obligations for long-term orders and for arbitration proceedings) and higher general and administrative expenses in the context of establishing a stand-alone solution for Marine Systems, which impact EBIT, positive progress was achieved in the service and marine electronics businesses.

Special items

The special items were mainly expenses in the context of a stand-alone solution for Marine Systems.

Investments

The modernization of the shipyard at the Kiel site, which received the most investment in recent years, is now in the final phase. The basis for a sustainable improvement in efficiency has been established, enabling the shipyard to produce the larger vessels demanded by the market. In light of the order intake in the current fiscal year, it is now a matter of also modifying the site in Wismar to meet the needs of the Marine Systems product portfolio, which has resulted in higher investment.