Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Presentation (August 2021)

80 slides from Rheinmetall's investor presentation, August 2021

1. Slide 1: Rheinmetall Investor Presentation August 2021

   PASSION FOR TECHNOLOGY Rheinmetall Investor Presentation August 2021

2. Slide 2: Agenda

   Rheinmetall - Investor Presentation Agenda Rheinmetall at a glance Market & Drivers Five divisions under one roof Financials Outlook 2021 Responsibility @ Rheinmetall Appendix © Rheinmetall AG I August 2021 2

3. Slide 3: Rheinmetall at a glance: Selected key business highlights

   Rheinmetall - Investor Presentation Rheinmetall at a glance Selected key business highlights Sales by division Result by division In €m In €m 10% -6% 22% 7% -10% Weapon and Ammunition Weapon and Ammunition 8% 41% Electronic Solutions Electronic Solutions 22% 5,406 Vehicle Systems 452 Vehicle Systems

4. Slide 4: Historic financial development

   Rheinmetall - Investor Presentation Rheinmetall at a glance Historic financial development Sales, operating result and operating margin Operating FCF and operating FCF to Sales In €m Op. Margin Sales Op. Result In €m / in % oFCF oFCF/Sales 6.148 6.255 5.896 5.875 4,7 5,0 5.602 3,7 5.183 2,9 2-4% 8,0

5. Slide 5: Management sets clear strategic objectives

   Rheinmetall - Investor Presentation Rheinmetall at a glance Management sets clear strategic objectives 1 Reduce Automotive exposure 2 Minimum profitability level requirement 3 Continuous portfolio management © Rheinmetall AG I August 2021 5

6. Slide 6: The new corporate structure - Five divisions under one roof

   Rheinmetall - Investor Presentation Rheinmetall at a glance The new corporate structure - Five divisions under one roof Rheinmetall Group Holding Discontinued Weapon & Electronic Vehicle Sensors & Materials Operations Ammunition Solutions Systems Actuators & Trade (Pistons)  Mid & Large Caliber  I

7. Slide 7: Strategy as clear commitment to our technological leadership

   Rheinmetall - Investor Presentation Rheinmetall at a glance Strategy as clear commitment to our technological leadership ONE Rheinmetall Passion for technology Re-organization to Leverage our core Focus on growth better fit our needs technological strengths business areas  Divest non-core business

8. Slide 8: ESG is part of our corporate strategy

   Rheinmetall - Investor Presentation Rheinmetall at a glance ESG is part of our corporate strategy ENVIRONMENT SOCIAL GOVERNANCE LABOR AND STRICT 2035: COMPLIANCE HEALTH CO² NEUTRAL* PROTECTION PROTOCOL  Over next 2 years reduction of water  Transparency in the supply chain  Robust governance with

9. Slide 9: Strong focus on defence – combustion engine share below 20%

   Rheinmetall - Investor Presentation Rheinmetall at a glance Strong focus on defence – combustion engine share below 20% Sales 2020 Target sales 2025 approx. 63% approx. 37% approx. 70% approx. 30% DEFENCE COMBUSTION DEFENCE COMBUSTION approx. 63% ENGINE approx. 28% approx. 70% ENGINE approx. 15-20%

10. Slide 10: New strategy supports mid-term growth path

    Rheinmetall - Investor Presentation Rheinmetall at a glance New strategy supports mid-term growth path Financial Targets 2025 ATTRACTIVE GROWTH PROFILE Market drivers Sales target 2025  Tightening and additional emission regulation  Proliferation of regulation to new regions ~ 8.5 € bn HIGHER PROF

11. Slide 11: Markets & Drivers

    Rheinmetall - Investor Presentation Markets & Drivers © Rheinmetall AG I August 2021 11

12. Slide 12: Participating in the defence super cycle

    Rheinmetall - Investor Presentation Markets & Drivers Participating in the defence super cycle Demand for next generation 1990 Upscaling of systems forces and Downscaling Inflection modernization Return to treaty of forces and point and territorial armament NATO Out of area defence missions 2% targe

13. Slide 13: Defence budgets demonstrate robustness despite Covid

    Rheinmetall - Investor Presentation Markets & Drivers 2021 Defence budgets demonstrate robustness despite Covid 2022 2023 Germany Australia UK Hungary USA Stable Growing Growing Growing Growing Threat scenario  Russia and China defence Tender  Large vehicle programs with temporary persists spendin

14. Slide 14: Successful internationalization provides diverse sources of growth

    Rheinmetall - Investor Presentation Markets & Drivers - Home Markets Successful internationalization provides diverse sources of growth Our home markets Germany Australia United Central Kingdom Europe  Largest customer  Established „home  JV with BAE serves  Modernization to  Budget increase: m

15. Slide 15: NATO commitment key driver for German demand

    Rheinmetall - Investor Presentation German defence NATO commitment key driver for German demand Lead role in Very High Readiness Joint Task Force ( VJTF) Bundeswehr ‘19 ‘23 ‘27 ‘31 ’32+ 2016 White paper 04/2018 VJTF´23 1x Division 3x Division 3x Division Concept VJTF´19 (1 Brigade) (3x Brigade) (8x

16. Slide 16: German budget expected to rise to 50€bn

    Rheinmetall - Investor Presentation Markets & Drivers - German defence budget German budget expected to rise to 50€bn with increased investive share in €bn Stable Outlook! +7% +45% 50,3 45,6 46,9 47,3 47,2 46,7 Drivers for budget increase: 43,2  More equipment (100% equipment level) 38,5  More fin

17. Slide 17: Targeting new businesses and increasing our budget share up to 35%

    Rheinmetall - Investor Presentation Markets & Drivers - German defence budget Targeting new businesses and increasing our budget share up to 35% Investive Research & Development  Ammunition yearly requirement & stockpiling  Future Combat Air System (FCAS)  Puma 2. Lot & Upgrade 1. Lot  Main Grou

18. Slide 18: Soldier system and Puma VJTF drive digitization

    Rheinmetall - Investor Presentation Markets & Drivers - German defence budget Soldier system and Puma VJTF drive digitization of German landforces Core of the digitization of the Minimum additional demand German land forces VJTF Contract for 41 PUMA & IdZ: Minimum of 143 First digitized Land Platfor

19. Slide 19: Successful establishment of a new Australian home market

    Rheinmetall - Investor Presentation Markets & Drivers - Home Markets: Australia Successful establishment of a new “home market” 2020 MilVehCoE 2018 Military Vehicle Land 17: 155mm Munition Center of Excellence Framework Contract:  EUR 60m p.a.  2017 2018-2023  Supashock 49% Rheinmetall  „Brain-T

20. Slide 20: Creating a new home market in the UK

    Rheinmetall - Investor Presentation Markets & Drivers - Home Markets: UK - Joint Venture with BAE Creating a new “home market” in the UK LEGACY BUSINESS OFFERS POTENTIAL  BAE UK business  Armored engineering vehicles and bridge-laying tanks  AS 90 self-propelled artillery system  Force protectio

21. Slide 21: Competitive vehicles portfolio offers huge order potential

    Rheinmetall - Investor Presentation Markets & Drivers: Vehicles Systems Competitive vehicles portfolio offers huge order potential Infantry Main Wheeled Trucks fighting vehicles battle tanks vehicles  Puma  Leopard  4x4 HU JV  HX-Family  Lynx  MGCS  6x6 New Fox  Future trucks  8x8 Boxer ~€1

22. Slide 22: Hungary is a catalyst for future success of our Lynx

    Rheinmetall - Investor Presentation Markets & Drivers: Vehicles Systems Hungary is a catalyst for future success of our Lynx  Australia Southern Europe Combined potential: USA US Army Bradley replacement ~4000 vehicles ~ € 40 bn Czech Land 400 Phase III ~ € 10 bn Tender: 2021-2023 ~450 vehicles Pot

23. Slide 23: Weapon and Ammunition: Mid-term growth based on three pillars

    Rheinmetall - Investor Presentation Markets & Drivers: Weapon and Ammunition Mid-term growth based on three pillars German restocking New platforms creating International Growth additional demand NATO target:  Inventory level of 30 days for ammunition 1)  Australian Boxer 2)  German inventories e

24. Slide 24: Electronic Solutions: Active in very dynamic markets

    Rheinmetall - Investor Presentation Markets & Drivers: Electronic Solutions Active in very dynamic markets Digitization of Turret Digitization Air Defence Simulation and forces Systems Training  D-LBO  Challenger  Effector efficient  Growing demand  Helping to build the upgrade air defence in d

25. Slide 25: Platform sales are just the tip of the iceberg

    Rheinmetall - Investor Presentation Markets & Drivers: Product life cycle potential Platform sales are just the tip of the iceberg – success creates opportunities 1X SALES OF PLATFORM 2X LIFECYCLE SPENDINGS Service sales in €m Rheinmetall creates additional business +10% opportunities over the entir

26. Slide 26: System house for land based operations

    Rheinmetall - Investor Presentation Markets & Drivers: Product life cycle potential System house for land based operations and integrating components to systems VJTF System-of-Systems Systems System house Armored Infantryman Puma Gladius Platforms Laser Key Components Lance turret Lance turret Prote

27. Slide 27: Growth in all divisions with Vehicle Systems as main driver

    Rheinmetall - Investor Presentation Markets & Drivers: Mid-term growth development Growth in all divisions with Vehicle Systems as main driver 2020 Sales 2025 Targeted Sales ~€ 5.5 bn 27 % ~€ 3.7 bn Weapon & Ammunition 30 % 22 % Electronic Solutions 23 % Vehicle Systems 51 % 47 % % share based on un

28. Slide 28: Strong underlying growth drivers create opportunities

    Rheinmetall - Investor Presentation Markets & Drivers: Market trends Strong underlying growth drivers create opportunities New Applications E 3+ Efficiency (CO2 Reduction) Emission (Reduction) Electrification Outside powertrain The innovation pipeline is packed! © Rheinmetall AG I August 2021 28

29. Slide 29: Green ambitions as a clear global trend for cleaner mobility

    Rheinmetall - Investor Presentation Markets & Drivers: Clean Mobility Green ambitions as a clear global trend for cleaner mobility g CO2/km Europe USA China 162 Q4 Q1 130 2030: NEV 40% of total Sales ‘20 ‘21 but 121 117 Until 2060: Survival of ICE 108 95 100 93 81 89 70 73 59g (-37%) Trump Admin tar

30. Slide 30: Declining ICE volumes and accelerated growth for alternative powertrains

    Rheinmetall - Investor Presentation Markets & Drivers: LV growth Declining ICE volumes and accelerated growth for alternative powertrains IHS LV production forecast* In million units EV Hybrid ICE 108 103 +10% 96 82 15% 30% 38% 75 5% 3% 7% 13% 5% 17% 16% 91% 88% 72% 53% 45% 2020 2021 2025 2030 2033

31. Slide 31: Portfolio offers solutions for all powertrain technologies

    Rheinmetall - Investor Presentation Markets & Drivers: Mobility market trends Rheinmetall portfolio already offers solutions for all powertrain technologies © Rheinmetall AG I August 2021 31

32. Slide 32: Sensors & Actuators: Prepared for future growth

    Rheinmetall - Investor Presentation Markets & Drivers: Sensors & Actuators Prepared for future growth Outperforming the Innovative solutions Growth in alternative Diversify into market for clean mobility powertrains (AP) new applications * Estimated sales development in €m G r o w t h c a t a l y s

33. Slide 33: Materials and Trade: Well positioned to capture growth opportunities

    Rheinmetall - Investor Presentation Markets & Drivers: Materials and Trade Well positioned to capture growth opportunities Aftermarket Bearings Castings (Joint Ventures) Sales in €m Sales in €m Sales in €m Solid profitability Shift to non-ICE applications Technology leadership 5% CAGR 7% CAGR 7% CAG

34. Slide 34: Trucks: Diverse portfolio for truck applications

    Rheinmetall - Investor Presentation Markets & Drivers: Trucks Diverse portfolio for truck applications Permaglide bearings for truck compressors and truck hydraulics Main coolant pumps Auxiliary coolant pumps Electrical oil pumps Bushings for injection pumps Main-bearings Sales in €m Connecting rod

35. Slide 35: Chinese operations geared towards growth

    Rheinmetall - Investor Presentation Markets & Drivers: China Chinese operations geared towards growth Highlights  Sales China in €m CAGR +12%  Partner of local big players SAIC and HASCO (50/50 ~1,400 joint ventures) 1,003 1,149 1,051 WFOEs* 871  Biggest casting capacities in China – technology l

36. Slide 36: Five Divisions under one roof

    Five Divisions under one roof © Rheinmetall AG I August 2021 36

37. Slide 37: Division Overview: Vehicle Systems

    Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Vehicle Systems 2020 Results Order intake Sales €4,389m €1,823m Operating result Operating margin €150m 8.2% Products Market profile Key Competitors Differentiators Market position TACTICAL VEHICLES  Logistic Vehic

38. Slide 38: Division Overview: Weapon and Ammunition

    Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Weapon and Ammunition 2020 Results Order intake Sales €1,757m €1,196m Operating result Operating margin €185m 15.5% Products Market profile Key Competitors Differentiators Market position MID & LARGE CALIBER AMMO 

39. Slide 39: Division Overview: Electronic Solutions

    Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Electronic Solutions 2020 Results Order intake Sales €1,069m €931m Operating result Operating margin €93m 10.0% Products Market profile Key Competitors Differentiators Market position  Integrated Electronic Systems

40. Slide 40: Division Overview: Sensors and Actuators

    Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Sensors and Actuators 2020 Results Booked Business* Sales €1,665m €1,202m Operating result Operating margin €36m 3,0% Products Market profile Key Competitors Differentiators Market position  Actuators  Wide techno

41. Slide 41: Division Overview: Materials and Trade

    Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Materials and Trade 2020 Results Booked Business* Sales €573m €1,202m Operating result Operating margin €36m 3,0% Products Market profile AFTERMARKET Key Competitors Differentiators Market position  Daido  Broad m

42. Slide 42: Financials

    Financials © Rheinmetall AG I August 2021 42

43. Slide 43: Q2 2021 Group Highlights

    Rheinmetall - Investor Presentation Q2 2021 Group Highlights  Higher 2022 defence budget proposals in all home markets Macro  Semi-conductor shortage slowed LV-production recovery  Sales increased to €1.315m  Recovery mode and cost discipline helped to almost double results to €106m Performance*

44. Slide 44: Q2 2021 Pistons process update

    Rheinmetall - Investor Presentation Q2 2021 Pistons process update: Accelerated decline of ICE puts asset valuation under stress Further €110m Start of piston deterioration of Impairment of disposal market discontinued environment piston business  EU announces end of  No cash impact combustion eng

45. Slide 45: Positive news flow for heavy armor!

    Rheinmetall - Investor Presentation Q2 2021 Group Highlights Positive news flow for heavy armor! Puma  Germany Challenger 3  UK  USA OMFV Retrofitting contract – Upgrade to new Modernizing the UK´s main battle Team LYNX down-selected design tank Challenger 2 Developmental contract for the Phase 

46. Slide 46: High volumes and strict cost discipline triggered the EPS recovery

    Rheinmetall - Investor Presentation Q2 2021 Group Highlights: Key financial data High volumes and strict cost discipline triggered the EPS recovery Sales* Operating result and margin* Earnings per share* in €m in €m in € +13.3% +92.7% 1,315 106 +1.54 1 -1 1,160 153 +13.2% +0.1% 52 55 8.1% 1.45 4.8%

47. Slide 47: Earnings and working capital improvements accelerated OFCF generation

    Rheinmetall - Investor Presentation Q2 2021 Group Highlights: Key financial data Earnings and working capital improvements accelerated OFCF generation Operating Free Cash flow* in €m +225 -43 3  Excellent earnings recovery with 15 significantly improved group margins 196  Strict working capital di

48. Slide 48: Sound balance sheet provides financial flexibility

    Rheinmetall - Investor Presentation Q2 2021 Group Highlights: Key financial data Sound balance sheet provides financial flexibility Gross debt and maturity profile Equity and Equity ratio GrossNet debt and maturity financial profile position in €m and % in €m Equity ratio Total equity Ʃ 976 2,052 2,

49. Slide 49: Strong order intake propelled backlog to new record level

    Rheinmetall - Investor Presentation Q2 2021 Division Highlights Strong order intake propelled backlog to new record level Q2 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 411 1.795 337% 548 1.973 260% Order backlog 6.416 10.542 +64% Sales 457 461 +1% 903 870 -4% Operating result 49 40 -18% 84 65 -2

50. Slide 50: High quality sales and cost discipline supported margin improvement

    Rheinmetall - Investor Presentation Q2 2021 Division Highlights High quality sales and cost discipline supported margin improvement Q2 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 296 201 -32% 624 429 -31% Order backlog 2.409 2.682 +11% Sales 278 251 -10% 445 471 +6% Operating result 30 29 -5% 15

51. Slide 51: Margin expansion driven by favorable sales mix and strict cost management

    Rheinmetall - Investor Presentation Q2 2021 Division Highlights Margin expansion driven by favorable sales mix and strict cost management Q2 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 102 226 +122% 426 444 4% Order backlog 2.191 2.376 +8% Sales 224 195 -13% 398 362 -9% Operating result 18 18 0%

52. Slide 52: Market recovery held back by chip-shortage

    Rheinmetall - Investor Presentation Q2 2021 Division Highlights Market recovery held back by chip-shortage Q2 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Booked Business 511 295 -42% 982 951 -3% Sales 173 325 88% 521 697 +34% Operating result -25 23 +48 -16 51 +67 Operating margin -14.6% 7.1% +21.7%p -3.0% 7.

53. Slide 53: Further normalization of the business environment

    Rheinmetall - Investor Presentation Q2 2021 Division Highlights Further normalization of the business environment Q2 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Booked Business 140 154 +10% 277 327 +18% Sales 103 161 +56% 243 320 +32% Operating result -4 13 +17 3 27 +24 Operating margin -3.8% 8.3% +12.0%p 1.2

54. Slide 54: Diesel sales with strongest growth momentum

    Rheinmetall - Investor Presentation Q2 2021 Key end market developments Diesel sales with strongest growth momentum LV / Non-LV* sales split Sales by key end markets in €m in €m Delta +79.4% +63.7% Absolut in % 466 184 Diesel +61 >100% Gasoline +58 +71.6% 109 Other LV +15 +81.6% 59 LV: LV Business +

55. Slide 55: China Casting business caught between lower sales and cost inflation

    Rheinmetall - Investor Presentation Q2 2021 China Casting business caught between lower sales and cost inflation Rheinmetall JV core customers sales declined over Volume decline and extreme proportionately by -19.6% vs -5% market decline aluminum price hikes impacted EBIT Sales in €m EBIT in €m -13.

56. Slide 56: Germany increased procurement budget more than 20% for 2022

    Rheinmetall - Investor Presentation Q2 2021 Markets & Drivers Germany increased procurement budget more than 20% for 2022 Highlights Military procurement R&D +23,3%  German military procurement In €m CAGR +18,6% 12.182 budget exceeds €10bn for the first time in 2022 9.883  Military procurement in

57. Slide 57: High NATO order backlog reduces export risk significantly

    Rheinmetall - Investor Presentation Q2 2021 Markets & Drivers High NATO order backlog reduces export risk significantly Military order backlog NATO and associates* Rest of World H1 2021 FY 2020 FY 2018 FY 2015 14% 12% 28% 35% 86% 88% 65% 72% €5.8bn €8.6bn €12.9bn €14.1bn © Rheinmetall AG I August 20

58. Slide 58: Build up of military backlog continues

    Rheinmetall - Investor Presentation Q2 2021 Markets & Drivers Build up of military backlog continues Order Backlog Profile 1 in €bn Backlog Shadow backlog2 +40% ~3,500 ~3,100 8.0 14,135 10,105 2.7 1.9 1.6 30.06. 2020 30.06. 2021 2021e 2022e 2023e 2024ff. 1 Order backlog for divisions Vehicle Systems

59. Slide 59: Electrification trend well reflected in S+A booked business growth

    Rheinmetall - Investor Presentation Q2 2021 Markets & Drivers Electrification trend well reflected in S+A booked business growth S+A Booked Business IHS LV production In €m In million units 982 951 39.339 12% 11% +96% 25% +92% 30.486 8% 88% 89% 75% 92% H1 2020 H1 2021 H1 2020 H1 2021 Source: IHS, St

60. Slide 60: Outlook 2021

    Rheinmetall - Investor Presentation Outlook 2021 © Rheinmetall AG I August 2021 60

61. Slide 61: FY Guidance confirmed

    Rheinmetall - Investor Presentation Outlook FY Guidance confirmed  Strong order intake expected Q3 trading  Sales growth of around 5% update  Operating margin expected between 7 to 8% FY 2021 Guidance 9.4% Operational Q3 ‘19 level sales growth 7-9% (2020 IFRS 5 adjusted: €5,406m) (target level 50

62. Slide 62: Major programs start contributing from 2022 onwards

    Rheinmetall - Investor Presentation Outlook 2021 Major programs start contributing from 2022 onwards 1. Lot Puma (Ger) Challenger (UK) MIV (UK) Lynx (HU) Ammunition (HU) Puma S1 upgrade (Ger) L400 Ph2 (AU) 2019 2020 2021 2022 2023 2024 2025 Under contract Order potential © Rheinmetall AG I August 20

63. Slide 63: Application of IFRS 5 as of Q2 2021

    Rheinmetall - Investor Presentation Realignment Application of IFRS 5 as of Q2 2021  The status of the disposal process for the piston business has progressed sufficiently in order to qualify the business in accordance with IFRS 5 as discontinued operations  Application as of Q2 2021  Presentatio

64. Slide 64: Guidance by division in the new reporting structure

    Rheinmetall - Investor Presentation Outlook 2021 Rheinmetall Guidance by division in the new reporting structure 2020 Outlook 2021e 1,2 Proforma Vehicles Systems Sales €1,846m Slightly improved sales Margin 8.1% On previous year margin level Weapon and Sales €1,199m Notably improved sales Ammunition

65. Slide 65: Responsibility @ Rheinmetall

    Rheinmetall - Investor Presentation Environment Responsibility @ Rheinmetall © Rheinmetall AG I August 2021 65

66. Slide 66: Mainstays of States: sovereignty, national security and stability of society

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Mainstays of States: sovereignty, national security and stability of society Force protection is our mission • We serve governments enabling them to fulfil security policy and military mission obligations We operate in a strictly regul

67. Slide 67: Environmental goals: 2035 CO2 neutral

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Environmental goals 2035: CO² neutral * In thousand tCO2  Consistent energy management system well established; energy saving Total Emissions Scope 1 Emissions goals and use of renewable sources Scope 2 Emissions  Reduction of CO2 in

68. Slide 68: Efficient use of resources

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Efficient use of resources Water Energy consumption Waste  Two-year-goal: Reduce water consumption  Reduce energy consumption and increase  Waste is to be avoided, reduced, recycled by a further 10% (base line 2020) energy efficienc

69. Slide 69: Biodiversity activities

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Biodiversity acitivities  Fojana – Rheinmetall‘s 5,500 Hectares Natural Paradise near Unterlüss  137t of CO₂ capture/ha 3,300 ha forest bind 452,272t CO₂  1,500 m³ of groundwater formation/ha  30t of O₂/ha One hectare of deciduous

70. Slide 70: Being a responsible corporate citizen

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Being a responsible corporate citizen Social responsibility Rheinmetall Worldwide  Awarded a special price by the German Corporate Health  Automotive product portfolio actively reduces CO² emission Award for extra strong commitment i

71. Slide 71: Compliance & Governance System

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Compliance & Governance System Culture  " ESG" and "transparency" as pillars of the strategy  Zero tolerance policy  Top Tier ranking in Transparency International Defence Communication Companies Anti-corruption Index 2020  Target

72. Slide 72: Implementing transparency in the supply chain

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Implementing transparency in the supply chain Frequent Supplier Monitoring process started  Complex multi-tiered sourcing activities  Environmental and human rights due diligence are a significant responsibility and a major challenge

73. Slide 73: New Executive Board remuneration policy with 20% share ESG targets

    Rheinmetall - Investor Presentation Responsibility @ Rheinmetall New Executive Board remuneration policy with 20% share ESG targets Short Term Incentive Long Term Incentive Overall payout cap: 250% Overall payout cap: 250% Target achievement per target (0% - 250%) Performance period (4 years forward

74. Slide 74: Appendix

    Rheinmetall - Investor Presentation Appendix © Rheinmetall AG I August 2021 74

75. Slide 75: Our capital allocation policy is geared towards business growth

    Rheinmetall - Investor Presentation Our capital allocation policy is geared towards business growth Funding of growth (organic and M&A) Dividend to shareholders (mid-term payout ratio 35-40%) 9.4% Q3 ‘19 level Further funding of pensions via CTA (Germany) (target level 50-60%) Share buyback © Rheinm

76. Slide 76: External growth remains a valid option

    Rheinmetall - Investor Presentation External growth remains a valid option M&A approach Business Model and Financial Critera  Permanent screening of the market  Technology Fit  Opportunities:  Growth potential  Potential transformation of European defence  Regional Fit industry might offer som

77. Slide 77: ROCE development

    Rheinmetall - Investor Presentation ROCE development  ROCE in % 18 17,1 16 15,4 14 13,4 12,3 12 Average 12.2% 10 8 6 4 2,7 2 0 2016 2017 2018 2019 2020 © Rheinmetall AG I August 2021 77

78. Slide 78: 2016-2020: Key figures (as reported)

    Rheinmetall - Investor Presentation Rheinmetall 2016-2020: Key figures (as reported) in €m 2016 2017 2018 2019 2020 Balance Sheet Total assets 6.150 6.101 6.759 7.415 7.267 Shareholder's equity 1.781 1.870 2.173 2.272 2.053 Equity ratio (in %) 29,0 30,7 32,1 30,6 28 Pension liabilities 1.186 1.080 9

79. Slide 79: Next events and IR contacts

    Rheinmetall - Investor Presentation Next events and IR contacts Next Events IR Contacts Commerzbank, Corporate Conference 01 Sep 2021 Dirk Winkels Morgan Stanley, Industrial CEOs Unplugged 10 Sep 2021 Head of Investor Relations Bank of America, Global Defence Forum 2021 14 Sep 2021 Tel: +49-211 473-

80. Slide 80: Disclaimer

    Rheinmetall - Investor Presentation Disclaimer This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to Rheinmetall’s financial condition, results of operations and businesses and certain of Rheinmetall’s pl

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