Hensoldt AG · XETR:HAG
Hensoldt — Investor Presentation (September 2024)
43 slides from Hensoldt's investor presentation, September 2024
Slide 1: Company presentation September 2024
HENSOLDT Company presentation September 2024 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 2: Disclaimer Forward Looking Statement
HENSOLDT – Company Presentation Disclaimer Forward Looking Statement This presentation and the information contained herein are for information purposes only and should not be treated as This presentation may contain forward-looking statements about HENSOLDT and its businesses, including statements
Slide 3: About HENSOLDT
HENSOLDT – Company Presentation About HENSOLDT Pure-play and platform independent provider of sensor solutions for defence and security applications Addressing multiple attractive markets Together we make with state-of-the-art technology in the the difference for a fields of radar, electronic warfar
Slide 4: Capabilities
HENSOLDT – Company Presentation Capabilities Our core competence is to detect threats and protect what matters most • Optical communication • Air traffic control • Observation and targeting • Coastal surveillance • Border protection • Controlling the in space • Identification friend-or-foe • Situati
Slide 5: Key figures
HENSOLDT – Company Presentation Key figures Based on full year 2023 results 6,900+ Employees worldwide 150+ Years of heritage 1,847 Revenues in € m 5,530 Order backlog in € m 2,087 Order intake in € m 329 Adjusted EBITDA in € m 5 This document and its content is the property of HENSOLDT AG. It shall
Slide 6: Global footprint
HENSOLDT – Company Presentation Global footprint More than 6,900 employees across the globe Norway Germany Oslo Taufkirchen, Oberkochen, Aalen, Friedrichshafen, Ulm, Pforzheim, Netherlands Cologne, Berlin, Wetzlar, Koblenz, Rotterdam Kiel, Wilhelmshaven France Denmark Toulouse, Plaisir, Massy, Balle
Slide 7: New defence environment
New defence environment This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 8: Geopolitical tensions and operational trends driving growth
HENSOLDT – Company Presentation Geopolitical tensions and operational trends driving growth Geopolitical Tensions Operational Trends Global Topline Defence & Electronics Spending Evolution Eastern Europe Return to Conventional Warfare 8.6% Middle East Multi-Domain Operations 4.4% East Asia /South Ch
Slide 9: High growth outlook across all regions
HENSOLDT – Company Presentation High growth outlook across all regions Germany Europe excluding Germany International(1) 12.5% 2023 2023 2023 €2.2B €4.5B €16.0B 8.6% 7.5% 6.3% 4.6% 4.3% Defence Spending CAGR 2023E – 2028F Accessible Defence Electronics CAGR 2023E – 2028F 2023 Accessible Market Size
Slide 10: Growth consistent across sensor capabilities
HENSOLDT – Company Presentation Growth consistent across sensor capabilities Global Accessible Defence Electronics Growth 8.6% Recent policy and spending shifts solidified by ongoing Ukraine War and conflicts in MENA and APAC 10.7% Requirement for high capability sensors consistent across all major
Slide 11: Sensor demand growth is structural
HENSOLDT – Company Presentation Sensor demand growth is structural Current generation Future Generation Leopard 2A7+ (ca. 45%) crewed – uncrewed teaming volume growth (ca. 55%) Electronics Eurofighter (ca. 40%) density constantly increasing, (ca. 45%) greater volumes from uncrewed system uptake F125
Slide 12: SIGINT sensor development example: portfolio development leveraging synergies
HENSOLDT – Company Presentation SIGINT sensor development example: portfolio development leveraging synergies of a common architecture EuroHawk Pegasus is a result of product evolution FCAS ▪ Reconnaissance Electronics ▪ Antenna Equipment ▪ Simulation Source: HENSOLDT AG 12 This document and its con
Slide 13: HENSOLDT will continue to prioritise R&D investment
HENSOLDT – Company Presentation HENSOLDT will continue to prioritise R&D investment Around 15% of revenue to be invested sustainably Self-funded at average ~5% of revenue Customer-funded at average ~10% of revenue (1) In % of revenue 13 This document and its content is the property of HENSOLDT AG. I
Slide 14: HENSOLDT invests prioritized in technology and capabilities
HENSOLDT – Company Presentation HENSOLDT invests prioritized in technology and capabilities Based on decades of experience in Sensor Data Fusion we invest into AI and MDO-enabling tech and capabilities Strong focused R&D Further invest into Sensor Data Fusion Multi Domain Operations matching Multi D
Slide 15: Financials
Financials This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 16: Growth in top line sustains
HENSOLDT – Company Presentation Growth in top line sustains in €m Order intake in line with guidance Smooth conversion into revenues Order backlog further increased Baseline PEGASUS 1,250 5,530 5,366 1,707 1,847 1,921 1,993 2,087 1,474 5,092 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY
Slide 17: Bottom line follows top line development
HENSOLDT – Company Presentation Bottom line follows top line development in €m Sustained profitability Excellent cash flow generation 246 252 259 329 292 224 219 261 199 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Adj. EBITDA(1) Adj. EBIT(2) Adj. pre-tax unl. FCF(3) Adj.
Slide 18: Deleveraging from FY 2021 to FY 2023
HENSOLDT – Company Presentation Deleveraging from FY 2021 to FY 2023 in €m Net debt development 1.6x 1.2x 0.2x Net leverage(1) Net leverage w/o 0.9x capital raise Deleveraging on track Net debt w/o 302 capital raise Continuous improvement of net leverage Strong cash flow generation in Q4/2023 425 23
Slide 19: Guidance 2024
HENSOLDT – Company Presentation Guidance 2024 Organic ESG(5) Combined Orders to grow faster Book-to-bill ratio 1.1 - 1.2x than revenues 1.1 - 1.2x ~2 bn€ ~2.3 bn€ Revenue growth(1) with stronger growth in core revenue ~300 m€ with stronger growth in core revenue excl. excl. pass-through pass-through
Slide 20: Guidance 2025
HENSOLDT – Company Presentation Guidance 2025 Organic ESG Combined Orders to grow significantly faster Orders to grow faster Orders to grow significantly Book-to-bill ratio than revenues than revenues faster than revenues Revenue growth(1) 10% ~400 m€ low double-digit growth average annual growth av
Slide 21: Medium term guidance
HENSOLDT – Company Presentation Medium term guidance Organic medium term target Combined medium term target Orders to grow significantly Orders to grow significantly Order intake faster than revenue faster than revenue Revenue growth(1) 10% 10% average annual growth average annual growth Adjusted EB
Slide 22: Key messages
HENSOLDT – Company Presentation Key messages Excellent visibility Sustainable, consistent Highly profitable & long term growth cash generating growth 22 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent.
Slide 23: Acquisition of ESG Elektroniksystem- und Logistik-GmbH
Acquisition of ESG Elektroniksystem- und Logistik-GmbH This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 24: Acquisition of ESG successfully closed, economic terms unchanged
HENSOLDT – Company Presentation Acquisition of ESG successfully closed Economic terms unchanged Transaction terms − 100% of ESG for an enterprise value (“EV”) of €675m(1) confirmed plus an earn-out of up to €55m(2) − Significant increase of defence multiples between signing and closing − Full year 2
Slide 25: ESG snapshot
HENSOLDT – Company Presentation ESG snapshot Strong growth and cash flow profile (IFRS, €m 2023E) Trusted partner Selected customers Selected industrial partners Pipeline ~€5bn(1) Significant growth opportunity Revenue ~€330m Low double-digit annual growth NATO EBITDA ~14% margin <1.5% maintenance c
Slide 26: ESG provides complete solutions and deepens our lifecycle services offering
HENSOLDT – Company Presentation ESG provides complete solutions and deepens our lifecycle services offering Selected platforms Fixed Wing Aircraft Aviation Systems Helicopter Land Sea Cyber F-35 P-8 NEOS – Multi FCAS MAWS STH SuZ IAD / Counter-UAS F123 CESMO Main ESG offering Lightning II Poseidon D
Slide 27: ESG transforms our sensor capabilities into integrated solutions
HENSOLDT – Company Presentation ESG transforms our sensor capabilities into integrated solutions for Multi-Domain Operations and battlefield digitalisation ▪ Concept Development / R&D Battle Management Systems e.g., ADLER Intelligent ▪ Software Engineering / ESG Data System Integration Networks MDO
Slide 28: Compelling strategic rationale for combination
HENSOLDT – Company Presentation Compelling strategic rationale for combination Attractive business… …Even stronger together State-of-the-art innovation, software engineering • Highly complementary expansion of integrated sensor solutions offering and system integration capabilities Trusted partner t
Slide 29: Environmental Social Governance
Environmental Social Governance This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 30: HENSOLDT is an ESG leader in the sector and beyond
HENSOLDT – Company Presentation HENSOLDT is an ESG leader in the sector and beyond… Sustainalytics: HENSOLDT is an ESG leader in the A&D sector… …and also performs very well beyond the sector peers Key rating agencies see HENSOLDT as sector outperformer HENSOLDT 16.1 “Low Risk” 1 Best 14% Only “low
Slide 31: HENSOLDT keeps focus on ESG to maintain leadership
HENSOLDT – Company Presentation …and HENSOLDT keeps focus on ESG to maintain leadership role Key achievements and focus going forward Reporting and reputation Strategy and initiatives Focus going forward ✓ Publication of ESG report ✓ Successful launch of ESG Strategy 2026 ✓ Further integrate ESG cri
Slide 32: Financial Section
Financial Section This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 33: Consolidated Income Statement
HENSOLDT – Company Presentation Consolidated Income Statement Fiscal year in € million 2023 2022 Revenue 1,847 1,707 Cost of sales -1,431 -1,314 Gross profit 416 393 Selling and distribution expenses -111 -107 General administrative expenses -118 -92 Research and development costs -30 -36 Other oper
Slide 34: Consolidated Statement of Financial Position – Assets
HENSOLDT – Company Presentation Consolidated Statement of Financial Position – Assets 31 Dec. in € million 2023 2022 Non-current assets 1,405 1,335 Goodwill 658 658 Intangible assets 380 384 Property, plant and equipment 140 121 Right-of-use assets 189 140 Investments and other financial assets (1)
Slide 35: Consolidated Statement of Financial Position – Equity & Liabilities
HENSOLDT – Company Presentation Consolidated Statement of Financial Position – Equity & Liabilities 31 Dec. in € million 2023 2022 Share capital 116 105 Capital reserve and other reserves 730 554 Retained earnings -37 -55 Equity held by shareholders of HENSOLDT AG 808 604 Non-controlling interests 1
Slide 36: Consolidated Statement of Cash Flows (1/2)
HENSOLDT – Company Presentation Consolidated Statement of Cash Flows (1/2) Fiscal year in € million 2023 2022 Group result 56 80 Depreciation, amortisation and impairments of non current assets 120 103 Financial expenses (net) 41 27 Change in Provisions 45 -22 Inventories -128 -75 Contract balances
Slide 37: Consolidated Statement of Cash Flows (2/2)
HENSOLDT – Company Presentation Consolidated Statement of Cash Flows (2/2) Fiscal year in € million 2023 2022 Cash flow from operating activities 267 244 Cash flow from investing activities -122 -101 Proceeds/repayment of financing liabilities(1) 10 -169 Payment of lease liabilities -19 -19 Dividend
Slide 38: Reconciliation to group figures
HENSOLDT – Company Presentation Reconciliation to group figures Fiscal year in € million 2023 2022 Order intake 2,087 1,993 Sensors 1,587 1,675 Optronics 510 333 Elimination/Transversal/Others -9 -15 in € million Revenue 1,847 1,707 Sensors 1,546 1,404 Optronics 309 310 Elimination/Transversal/Other
Slide 39: Overview of EBITDA and EBIT adjustments
HENSOLDT – Company Presentation Overview of EBITDA and EBIT adjustments EBITDA adjustments Fiscal year EBIT adjustments Fiscal year in € million 2023 2022 in € million 2023 2022 EBIT 162 166 EBIT 162 166 (+) Depreciation 48 44 (+) Effect on earnings from purchase price allocations 37 36 (+) Amortisa
Slide 40: Reconciliation of reported to adjusted pre-tax unlevered FCF
HENSOLDT – Company Presentation Reconciliation of reported to adjusted pre-tax unlevered FCF Fiscal year in € million 2023 2022 Cash flow from operating activities 267 244 Cash flow from investing activities -122 -101 Free cash flow 145 143 (+) Transaction costs 4 19 (+) OneSAPnow related special it
Slide 41: Reconciliation of reported to adjusted net income
HENSOLDT – Company Presentation Reconciliation of reported to adjusted net income Fiscal year in € million 2023 2022 Group result 56 80 (+) Effect on earnings from purchase price allocations 37 36 (+) Transaction costs 10 0 (+) OneSAPnow related special items 12 1 (+) Other special items 26 24 Adjus
Slide 42: Special items
HENSOLDT – Company Presentation Special items in € million H1 2024 2024 2025 mid-term Effect on earnings from purchase price allocations -20 ~(49) ~(45) ~(35) PPA -20 ~(49) ~(45) ~(35) in € million H1 2024 2024 2025 mid-term Special items are driven by - Move to new site Oberkochen Special items (Tr
Slide 43: HENSOLDT AG Investor Relations
HENSOLDT AG Investor Relations Willy-Messerschmitt-Straße 3 82024 Taufkirchen T: +49 89 / 51518 2057 E: investorrelations@hensoldt.net This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOL