Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Presentation (January 2025)

64 slides from Rheinmetall's investor presentation, January 2025

  1. Slide 1: Strengthening Horizons Investor Presentation

    STRENGHTENING HORIZONS INVESTOR PRESENTATION January 2025

  2. Slide 2: Content

    Content 1 Rheinmetall at a glance 2 Markets & Drivers 3 Four segments 4 Financials 5 Outlook 6 Appendix 2 © Rheinmetall AG I January 2025

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

    Rheinmetall at a glance Selected key business highlights Sales by segment Result by segment In €m, FY 2023 In €m, FY2023 -8% -10% 24% 15% 29% 44% 7,176 918 18% 35% 36% 16% Weapon and Ammunition Electronic Solutions Vehicle Systems Power Systems Consolidation Business Model Market Driver  Defence sy

  4. Slide 4: Four segments under one roof

    Rheinmetall at a glance Four segments under one roof Weapon and Electronic Vehicles Power Ammunition Solutions Systems Systems Defence Defence Defence Civil Mid & large caliber ammo Integrated Electronic Systems Tactical Vehicles Air management Mid & large caliber weapons Air Defence & Radar Systems

  5. Slide 5: Rheinmetall portfolio perfectly matches need for land warfare

    Rheinmetall at a glance Rheinmetall portfolio perfectly matches need for land warfare ES ES Sensors are a deciding ES WA ES factor Air defence Stock levels has a new VS matter WA relevance Logistics Capacity VS are critical WA matters VS Tactical WA Long range vehicles are makes the essential WA dif

  6. Slide 6: Rheinmetall's global production capacities

    Rheinmetall at a glance Rheinmetall’s global production capacities Germany • Kassel: Vehicles • Unterlüss: Vehicles, Ammunition UK Vehicles • Kiel: Vehicles, Electronics Canada Electronics, Vehicles • Bremen: Soldier Systems, Electronics, Air defence • Munich: Vehicles Spain Ammunition Hungary Ammun

  7. Slide 7: Defence projects with short-term implementation potential

    Rheinmetall at a glance Defence projects with short-term implementation potential Lead time Ammunition 6-12 months Logistic vehicles ~12 months Medium 12-18 months weight wheeled Medium 24 months weight tracked Soldier systems 12 months 7 © Rheinmetall AG I January 2025

  8. Slide 8: ESG: Taking responsibility in a changing world

    Rheinmetall at a glance ESG: Taking responsibility in a changing world ESG Factbook FRAME-WORKS & INITIATIVES CSR-DIA1 GRI UN GC CDP LkSG CSRD Since 2017 Since 2017 Joined in 2021 Applied in 2021 2023 Pending ACTION ENVIRONMENT SOCIAL GOVERNANCE  Carbon neutral in 20352  Employee well-being  Rigo

  9. Slide 9: New reality is prompting Europe to increase their defence budgets

    Markets & Drivers New reality is prompting Europe to increase their defence budgets USA Europe Asia Ukraine invasion Conflicts in Middle East Pushes for higher NATO target EU pushing for higher South China Sea Conflict Shift to pacific theater consolidation Redefinition of supply chains Budget react

  10. Slide 10: EU NATO countries increase spending by an additional €100bn until 2028

    Markets & Drivers EU NATO countries increase spending by an additional €100bn until 2028 Europe crosses 2% in 2024 … … and further growth until 2028 CAGR 2022-2028 5% Trump’s 5% 2% - 5% 5% - 10% 4% 10% - 15% >15% 3% 2% NATO target 1% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 NATO Europe N

  11. Slide 11: Significant reduction in export risk due to high NATO order backlog

    Markets & Drivers Significant reduction in export risk due to high NATO order backlog  NATO and related countries* FY 2023  Rest of World FY 2022 FY 2018 11% FY 2015 12% 27% 35% 89% 88% 73% 65% 5.8 €bn 8.6 €bn 15.1 €bn 38.3 €bn 11 © Rheinmetall AG I January 2025 * includes 32 NATO member states, g

  12. Slide 12: New Italian JV increased market potential tenfold

    Markets & Drivers: Italy New Italian JV increased market potential tenfold MBT program AICS* program in total ~€8bn in total ~€15bn SUPPORT VEHICLES LYNX ~140 vehicles ~1,050 vehicles ITALY PANTHER + EXPORT ~132 vehicles + AMMUNITION In total €50bn over next 10 years 12 © Rheinmetall AG I January 20

  13. Slide 13: New Anglo-German defence cooperation creates new opportunities

    Markets & Drivers: United Kingdom New Anglo-German defence cooperation creates new opportunities GUNS POWDER in total ~0.5bn in total >€2bn 155mm Artillery 120mm Tank AMMUNITIONS & VEHICLES in total ~€5bn Medium Calibre 13 © Rheinmetall AG I January 2025

  14. Slide 14: U.S. market entry is a major strategic shift

    Markets & Drivers: USA U.S. market entry is a major strategic shift  U.S. market entry diversifies Rheinmetalls global portfolio  ARD1 introduces technology that aligns with key U.S. needs  New element of competition in the U.S. market  Gigantic order potential Strong U.S. revenue growth traject

  15. Slide 15: Numerous promising potentials

    Markets & Drivers: USA Numerous promising potentials XM30 CV Artillery Air Defence/ Down selected Ecosystem C-UAS ~$45bn ~$30bn Propulsion New potentials ~$1bn+ ~$2bn HX3 CTT S-MET II Soldier Combat Lethality vehicle ~$16bn $800m+ mission systems ~$2-3bn ~$1bn+ 15 © Rheinmetall AG I January 2025

  16. Slide 16: Ambition is to quadruple sales over the coming years

    Markets & Drivers: USA Ambition is to quadruple sales over the coming years Continue organic and inorganic investment to catalyze growth Effectively integrate Loc Performance and realize growth synergies Execute key captures Aggressively pursue opportunities to achieve growth across wider portfolio

  17. Slide 17: Rheinmetall is the leading industrial defence partner of Ukraine

    Markets & Drivers: Ukraine Rheinmetall is the leading industrial defence partner of Ukraine Total orders since 2022 +3 service hubs ~€6bn + 1 JV RhuDI +1.4m rounds +250 armored of ammunition vehicles delivered delivered +110 systems +300 of air defence, SatCom and UAVs trucks delivered delivered 17

  18. Slide 18: Lessons learned from the war in Ukraine

    Markets & Drivers: Ukraine Lessons learned from the war in Ukraine  Return to high intensity conventional  Passive and active protection (top attack warfare protection) is a decisive combat advantage  Enormous demand for munitions  Local maintenance hub important to reduce repair times  Air for

  19. Slide 19: First industry partner with local footprint in Ukraine

    Markets & Drivers: Ukraine First industry partner with local footprint in Ukraine RhUDI established 1st vehicle service JV Rheinmetall included in the list of special strategic partners for Ukraine 2022 2023 October 2024 February June July August 2025 Order to deliver Heavy armor MoU for artillery J

  20. Slide 20: Forging new and strengthening existing alliances

    Markets & Drivers: Cooperations Forging new and strengthening existing alliances Air defence, missiles, aeronautic systems, simulation & training F-35 Various technology areas, e.g. new visual systems for tactical vehicles Laser weapons Drone technology SAR satellites Counter small Unmanned Aerial S

  21. Slide 21: Successful cooperation with Lockheed Martin enters next phase

    Markets & Drivers: Cooperations Successful cooperation with Lockheed Martin enters next phase & Expansion of existing collaboration to new technological areas Estimated market potential over the next ten years ~€5bn ~€7bn ~€0.5bn ~€0.5-1bn ~€4bn ~€1bn Simulation & Aeronautic F-35 GMARS Laser weapons

  22. Slide 22: Vehicle Systems

    Segment VEHICLE SYSTEMS 2027 Sales potential €8-9bn 22 © Rheinmetall AG I January 2025

  23. Slide 23: Vehicle Systems: Multiple programs enter ramp-up phase

    Four segments: Vehicle Systems Multiple programs enter ramp-up phase and create leverage RHM NOMINATION SALES OPERATING MARGIN In €bn In €bn ~11% 10-12 8-9 ~2pp 13-15% ~35% ~10 7.1 +45-50% 12-13% 12% 2.6 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e TOP PROJECTS MARKET PROFILE  Panther KF51 Hu

  24. Slide 24: Vehicle Systems: Selected product overview

    Four segments: Vehicle Systems Selected product overview Heavy weight Medium weight Medium weight Artillery Logistic 4x4 tracked tracked wheeled systems vehicles vehicles TG-MIL Lynx Panzerhaubitze 2000* Panther KF51 Boxer* Survivor R HX81 with Load Handling System Puma* Wheeled Howitzer HX 8x8 Exca

  25. Slide 25: Gigantic demand for vehicles of all kinds

    Four segments: Vehicle Systems Gigantic demand for vehicles of all kinds Heavy weight Medium Medium Artillery Logistic 4x4 tracked weight weight systems vehicles vehicles tracked wheeled 2030 2027 2025 Total potential of 25 © Rheinmetall AG I January 2025 €0-2bn €2-5bn €5-10bn €10-20bn >€20bn Market

  26. Slide 26: Re-scoped Boxer business opens new possibilities

    Four segments: Vehicle Systems Re-scoped Boxer business opens new possibilities  Growing demand for wheeled tactical vehicles  Boxer well positioned to participate in this growth  Boxer orders will be handled by ARTEC* Total order potential of up to ~€15bn over the next 10 years Heavy Weapon Carr

  27. Slide 27: Rheinmetall to create one of the biggest military vehicle fleets

    Four segments: Vehicle Systems Rheinmetall to create one of the biggest military vehicle fleets >4,000x Challenger 3 WLS >60,000x Panther Leopard 2 MBT Trucks UTF Leopard 1 Air Lynx IFV defence Skyranger Puma >700x Boxer >10,000x Marder 27 © Rheinmetall AG I January 2025 Note: Number of vehicles and

  28. Slide 28: Weapon and Ammunition

    Segment WEAPON AND AMMUNITION 2027 Sales potential €6-7bn 28 © Rheinmetall AG I January 2025

  29. Slide 29: Weapon and Ammunition: Transforming backlog into profitable sales

    Four segments: Weapon and Ammunition Transforming backlog into profitable sales RHM NOMINATION SALES OPERATING MARGIN In €bn In €bn ~2% ~12 ~40% 6-7 >3pp >26% 8.2 8-10 +55-65% 25-26% 1.8 23% 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e TOP PROJECTS MARKET PROFILE  Large-scale 155mm artillery

  30. Slide 30: Weapon and Ammunition: Selected product overview

    Four segments: Weapon and Ammunition Selected product overview Med & large Med & large Explosives & Protection Loitering caliber ammo caliber weapons propulsion systems munition 155mm Passive 120mm 40mm 35mm 20-30mm In cooperation with UVision Active Mortar 30 © Rheinmetall AG I January 2025

  31. Slide 31: Long-term growth through capacity increases in the existing portfolio

    Four segments: Weapon and Ammunition Long-term growth through capacity increases in the existing portfolio €6-7bn ~€2.8bn €1.8bn €1.2bn 2021 PY Guidance 2027 2030 2023 2024 Market potentials until 2030. 31 © Rheinmetall AG I January 2025

  32. Slide 32: Establishing Rheinmetall as a power house for rocket motors

    Four segments: Weapon and Ammunition Establishing Rheinmetall as a power house for rocket motors  Two main suppliers – Lockheed Martin (HIMARS) and Elbit (PULS)  EXPAL acquisition opened rocket 500km artillery market in Europe to 300km Rheinmetall  New German capacity in Unterlüss 70-150km Total

  33. Slide 33: Strengthening Europe's full shot capacity for 155mm artillery

    Four segments: Weapon and Ammunition Strengthening Europe's full shot capacity for 155mm artillery Scaling footprint Artillery Ammunition Systems with 30 to 75km+ in range Fuzing Energetic material Propulsion systems Igniting Existing capacities MoU signed Existing facility with Explosives filling S

  34. Slide 34: On our way to mass production!

    Four segments: Weapon and Ammunition On our way to mass production! 2022 2027 ARTILLERY 70,000 ~1.1 m 155MM TANK 60,000 >150,000 120MM MEDCAL 100,000 >3.4 m 20-35MM PROPELLANT 5,000 t ~12,000 t 34 © Rheinmetall AG I January 2025 Note: Capacity p.a.

  35. Slide 35: Electronic Solutions

    Segment ELECTRONIC SOLUTIONS 2027 Sales potential €4-5bn 35 © Rheinmetall AG I January 2025

  36. Slide 36: Air defence and digitalization drive sales to new heights

    Four segments: Electronic Solutions Air defence and digitalization drive sales to new heights RHM NOMINATION SALES OPERATING MARGIN In €bn In €bn ~36% >7 7-8 >35% 4-5 ~7pp >18% 2.2 1.3 +30-35% ~12-13% 11% 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e TOP PROJECTS MARKET PROFILE  European Sky S

  37. Slide 37: Electronic Solutions: Selected product overview

    Four segments: Electronic Solutions Selected product overview Air defence Digitalization Mission systems Aeronautical systems Next generation soldier systems Mobile air defence IdZ / Gladius X Stabilized sighting system Skyranger SEOSS IT system integration D-LBO (GER), further programs in HUN and A

  38. Slide 38: New challenges on the battlefield create huge opportunities

    Four segments: Electronic Solutions New challenges on the battlefield create huge opportunities Air defence Military Mission UxS Digitalization aviation systems >€15bn ~€2bn ~€6bn ~€2bn ~€15bn Market potentials until 2030. 38 © Rheinmetall AG I January 2025

  39. Slide 39: F-35 center fuselage as nucleus to grow domain air

    Four segments: Electronic Solutions F-35 center fuselage as nucleus to grow domain air Center fuselage is the entry gate for additional F-35 parts Other avionic parts Qualified to become 25mm ammunition supplier for F-35 Ammo RHM in the pole to take over sustainment services Sustainment Center fusel

  40. Slide 40: Market leading gun technology is set for VSHORAD

    Four segments: Electronic Solutions Rheinmetall’s market leading gun technology is set for VSHORAD Strong interest in ESSI and beyond! Protection radius 4km Platform agnostic turret design. Total market Skyranger on Boxer potential: >€15bn 40 © Rheinmetall AG I January 2025 Note: Graphic shows combi

  41. Slide 41: Evolution of warfare will drive growth in digitalization

    Four segments: Electronic Solutions Evolution of warfare will drive growth in the digitalization business Potential until 2030 “We sense the “We connect the “We automate & battlefield” battlefield” dominate the battlefield” D-LBO ~€1bn Reconnaissance TAWAN ~€7.5bn & Target Classification IdZ >€2.5bn

  42. Slide 42: Power Systems

    Segment POWER SYSTEMS 2027 Sales potential €2-2.5bn 42 © Rheinmetall AG I January 2025

  43. Slide 43: Power Systems: Defying a challenging macro environment

    Four segments: Power Systems Defying a challenging macro environment RHM NOMINATION SALES OPERATING MARGIN In €bn In €bn 2% flat ~4 2% ~2-2.5 6% ~6% 3.5 ~4% 2.1 ~3 0-5% 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e TOP PROJECTS MARKET PROFILE  One face to the customer Key Competitors Different

  44. Slide 44: Power Systems: Selected product overview

    Four segments: Power Systems Selected product overview ICE applications BEV applications Aftermarket Urban products Bearings Electric coolant pump Power core Castings Electric climate compressor High voltage contractors Exhaust control valve Curbstone charger Spare parts for cars, vans, buses and of

  45. Slide 45: Continuous transformation of our civil business

    Four segments: Power Systems Continuous transformation of our civil business Optimization continues New divisional set-up Portfolio management Potential reassignment Materials & Trade and of civil capacities Disposal of the piston business Sensor & Actuators merged into Power Addressing new markets

  46. Slide 46: Maintaining a balanced capital allocation

    Financials Maintaining a balanced capital allocation Capex M&A Debt Dividend Buyback Leverage  Supporting rapid  Building M&A  Low leverage  Attractive payout  Authorized capital growth with track record leaves room to be ratio between 35- renewed at the increased capex in  Defining key opport

  47. Slide 47: Growth enabling Capex

    Financials Growth enabling Capex Vehicle Weapon and Electronic Top 2025 projects Power Systems Systems Ammunition Solutions  HX3  Unterlüss  F-35 Weeze  LORICA (H2)  Panther  Romania  Panther  Product  Boxer  Lithuania  Air defence development  Lynx  Ukraine  Expal ~9% ~7% ~5% ~5% 4.9%

  48. Slide 48: Four key criteria for strategic M&A

    Financials Four key criteria for strategic M&A REEQ Resonant Piston Expal disposal Loc Performance Portfolio Technology optimization Geography Expal Capacity Expal Loc Performance Loc Performance Automecanica Automecanica 48 © Rheinmetall AG I January 2025

  49. Slide 49: Low leverage ratio allows us to stay opportunistic

    Financials Low leverage ratio allows us to stay opportunistic 2024 2025 2026 2027 2028 2029ff Equity ratio Net debt / EBITDA 57 0 80 21 73 150 137 >30% <3 500 (29.6%) (0.88) 500 45 5 40 4  We want to maintain our investment grade rating 35 3 comfort zone comfort zone Baa2 stable outlook 30 2  Our

  50. Slide 50: Strong dividend growth rate over the last decade

    Financials Strong dividend growth rate over the last decade  35-40% of net income before PPA paid out to investors  Dividend expected to grow 5.7 4.3 39% 3.3 2.4 2.1 2.0 1.7 1.5 1.1 0.3 DPS in € 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 © Rheinmetall AG I January 2025

  51. Slide 51: Solid growth and profitability 2027

    Outlook Solid growth and profitability 2027 2027e 2024e 2023 Sales ~€20bn ~€10bn €7.2bn Operating margin ~18% ~15% 12.8% Cash conversion rate* (OFCF to operating result) >40% ≥40% ~39% 51 © Rheinmetall AG I January 2025 * since 2023 defined as a two years rolling cash conversion rate

  52. Slide 52: Solid growth and profitability 2027: Group targets

    Outlook Solid growth and profitability 2027 Operating result by segment Sales ~€20bn Group targets Operating margin ~18% CCR >40% ~18% Operating margin target 2027 >26% >18% 13-15% 6% W+A ES VS PS Sales €6-7bn €4-5bn €8-9bn ~€2bn Legend: Width of rectangles represents expected sales in 2027. The siz

  53. Slide 53: Accelerated defence growth continues over the next years

    Outlook Accelerated defence growth continues over the next years Sales split by segment ~€20bn CAGR >25% 30%  Business grows by >25%  Defence segments more than double  Electronic Solutions highest relative increase ~€10bn 39% 27%  Power Systems declining to less than 10% 37% 20% 17% 23% 9% 2024

  54. Slide 54: Strong pipeline with multi-billion projects ahead

    Outlook Strong pipeline with multi-billion projects ahead 24.0 RHM backlog coverage in €bn  Additional major projects in final discussions Nominated Backlog  Digitization: Frame Backlog Order Backlog  TaWAN  D-LBO  IdZ  Tactical Vehicles: 9.1 7.6 8.0  Germany  Italy  Weapon and Ammunition 

  55. Slide 55: Exciting growth story ahead

    Outlook Exciting growth story ahead ~20 Sales in €bn Post 2027 potential U.S.:  XM 30 ~$45bn  CTT ~$16bn Italy:  Tactical vehicle programs  MBT ~€8bn  Air defence  Digitization  AICS ~€15bn Germany: ~10  Wheeled IFV up to €2bn  155mm (full shot)  Med caliber  RCH155 up to €2bn 7.2  Truck

  56. Slide 56: Next events and IR contacts

    Next events and IR contacts Financial calendar Documents IR contacts and next events Dirk Winkels, Head of Investor Relations Tel: +49 162 2688921 Email: dirk.winkels@rheinmetall.com Anika Marker, Investor Relations Manager Tel: +49 171 4174060 Email: anika.marker@rheinmetall.com Carl-Philip Schniew

  57. Slide 57: Key figures

    Key figures 2023 2022 2021 2020¹ 2019 SALES/EARNINGS Sales € million 7,176 6,410 5,658 5,405 6,255 Of which generated abroad % 76.0 70.5 65.9 64.4 68.9 Operating result 3, 6 € million 918 769 594 446 505 Operating margin 6 % 12.8 12.0 10.5 8.3 8.1 EBIT pre PPA € million 968 747 - - - EBIT6 € million

  58. Slide 58: Balance sheet

    Balance sheet € million 12/31/2023 12/31/2022 € million 12/31/2023 12/31/2022 Assets Equity and liabilities Goodwill 1,125 483 Share capital 112 112 Other intangible assets 952 338 Capital reserves 676 566 Right-of-use assets 271 209 Retained earnings1 2,533 2,147 Property, plant and equipment 1,370

  59. Slide 59: Income statement

    Income statement Income statement of the Rheinmetall Group for fiscal 2023 € million 2023 2022 Sales 7,176 6,410 Changes in inventories and work performed by the enterprise and capitalized 696 153 Total operating performance 7,872 6,563 Other operating income 153 221 Cost of materials 3,935 3,183 Pe

  60. Slide 60: Cashflow statement

    Cashflow statement Statement of cash flows of Rheinmetall Group for fiscal 2023 € million 2023 2022 Dividends paid out by Rheinmetall AG (187) (143) Earnings after taxes1 586 540 (3) (6) Other profit distributions Amortization/depreciation/impairment of property, plant and equipment, intangible asse

  61. Slide 61: Convertible bonds

    Convertible bonds Transaction Terms Highlights Execution Date 31-Jan-23 | Effective Date 07-Feb-23  Dual-tranche structure to Total Deal Size €1.0bn (split in 2 equally sized series) spread out maturities Underlying Shares 3.2m Shares / 7.4% Share Capital  Multiple oversubscription Tenor Series A:

  62. Slide 62: Derivation of diluted earnings per share

    Derivation of diluted earnings per share 62 © Rheinmetall AG I January 2025

  63. Slide 63: Disclaimer

    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 plans and objectives. These forward-lo

  64. Slide 64: Taking responsibility in a changing world

    TAKING RESPONSIBILITY IN A CHANGING WORLD 64 © Rheinmetall AG I January 2025

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