Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Presentation (March 2025)

65 slides from Rheinmetall's investor presentation, March 2025

  1. Slide 1: Strengthening Horizons - Investor Presentation March 2025

    STRENGTHENING HORIZONS INVESTOR PRESENTATION March 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 March 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 2024 In €m, FY2024 -6% 6% 21% 29% -3% 29% 9,751 1,478 53% 18% 39% 15% 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 Canada Electronics, Vehicles UK Vehicles • Unterlüss: Vehicles, Ammunition • Kiel: Vehicles, Electronics • Bremen: Soldier Systems, Electronics, Air defence Netherlands Vehicles • Munich: Vehicles Spain Amm

  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 March 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: Europe must emancipate itself and find its role in a global game of powers

    Markets & Drivers Europe must emancipate itself and find its role in a global game of powers U.S. North Korea China / Taiwan Russia / Ukraine Middle East US temporarily stops Ukraine support „Whatever it takes!“ = Special Fund 2.0 „ReArm Europe“ = €800bn for Europe‘s security 9 © Rheinmetall AG I Ma

  10. Slide 10: European NATO defence spend expected to grow to around 1,000 billion Euros

    Markets & Drivers European NATO defence spent expected to grow to around 1,000 billion Euros 2024 2025 2026 2027 2028 2029 2030 969 931 898 867 836 831 806 798 743 770 690 717 692 642 666 597 619 575 440 31%1,2 50%2 40%2 2.0% 2.5% 3.0% 3.5% 2.5% 3.0% 3.5% 2.5% 3.0% 3.5% 2.5% 3.0% 3.5% 2.5% 3.0% 3.5%

  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 2024  Rest of World FY 2023 FY 2022 8% FY 2018 11% 12% 27% 92% 89% 88% 73% 8.6 €bn 15.1 €bn 29.9 €bn 47.3 €bn 11 © Rheinmetall AG I March 2025 * includes 32 NATO member states, glo

  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 ITALY in total ~€15bn SUPPORT VEHICLES ~140 vehicles + EXPORT LYNX ~1,050 vehicles + AMMUNITION In total €50bn over next 10 years Number of vehicles p.a. 200 PANTHER ~132 vehicles 150

  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 March 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 in the USA

    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 March 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 +1.5m rounds +250 armored of ammunition vehicles delivered delivered +120 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 March 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% 8.3 7.1 3.8 11% 12% 2.6 2023 2024 2027e 2023 2024 2027e 2023 2024 2027e TOP PROJECTS MARKET PROFILE  Panther KF51 Hungary Key

  24. Slide 24: Vehicle Systems: Sales more than double over the next three years

    Four segments: Vehicle Systems Sales more than double over the next three years €8-9bn +30-35% €3.8bn Tactical Vehicles > €10bn €2.6bn Logistical Vehicles 2023 2024 2025e 2026e 2027e Vision 2030 24 © Rheinmetall AG I March 2025

  25. Slide 25: 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

  26. Slide 26: 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 26 © Rheinmetall AG I March 2025 €0-2bn €2-5bn €5-10bn €10-20bn >€20bn Market p

  27. Slide 27: 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

  28. Slide 28: 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 28 © Rheinmetall AG I March 2025 Note: Number of vehicles and f

  29. Slide 29: Weapon and Ammunition

    Segment WEAPON AND AMMUNITION 2027 Sales potential €6-7bn 29 © Rheinmetall AG I March 2025

  30. Slide 30: 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% 12.3 ~40% 6-7 >3pp >26% 8.2 8-10 28% 2.8 1.8 23% 2023 2024 2027e 2023 2024 2027e 2023 2024 2027e TOP PROJECTS MARKET PROFILE  Large-scale 155mm artillery ammunitio

  31. Slide 31: We are growing into our new capacities

    Four segments: Weapon and Ammunition We are growing into our new capacities €6-7bn +30-35% €2.8bn Direct Fire > €10bn €1.8bn Indirect Fire Protection Systems Propulsion Systems Others 2023 2024 2025e 2026e 2027e Vision 2030 31 © Rheinmetall AG I March 2025

  32. Slide 32: 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 32 © Rheinmetall AG I March 2025

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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 60,000 240,000 120MM MEDCAL >1.0 m >3.4 m 20-35MM PROPELLANT 5,000 t ~12,000 t 35 © Rheinmetall AG I March 2025 Note: Capacity p.a.

  36. Slide 36: Electronic Solutions

    Segment ELECTRONIC SOLUTIONS 2027 Sales potential €4-5bn 36 © Rheinmetall AG I March 2025

  37. Slide 37: Electronic Solutions: Air defence and digitalization drive sales

    Four segments: Electronic Solutions Air defence and digitalization drive sales to new heights RHM NOMINATION SALES OPERATING MARGIN In €bn In €bn ~36% 7-8 >35% 4-5 ~7pp >18% 5.1 2.2 1.3 1.7 13% 11% 2023 2024 2027e 2023 2024 2027e 2023 2024 2027e TOP PROJECTS MARKET PROFILE  European Sky Shield Init

  38. Slide 38: German digitalization and air defence are the key growth drivers

    Four segments: Electronic Solutions German digitalization and air defence are the key growth drivers ~€4-5bn +35-40% Integrated Electronic Systems > €6bn €1.7bn Air Defence & Radar Systems €1.3bn Global Business Product & Airborne Solutions Aeronautical Systems 2023 2024 2025e 2026e 2027e Vision 203

  39. Slide 39: 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

  40. Slide 40: 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. 40 © Rheinmetall AG I March 2025

  41. Slide 41: 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

  42. Slide 42: 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 42 © Rheinmetall AG I March 2025 Note: Graphic shows combina

  43. Slide 43: Evolution of warfare will drive growth in digitalization business

    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  Reconnaissance &  Target TaWAN Classification IdZ  Weapon Assignme

  44. Slide 44: Power Systems

    Segment POWER SYSTEMS 2027 Sales potential €2-2.5bn 44 © Rheinmetall AG I March 2025

  45. Slide 45: 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 2.5 2.0 2023 2024 2027e 2023 2024 2027e 2023 2024 2027e TOP PROJECTS MARKET PROFILE  One face to the customer Key Competitors Differentiato

  46. Slide 46: 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

  47. Slide 47: 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

  48. Slide 48: 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

  49. Slide 49: Growth enabling Capex: Top 2025 projects

    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% 7.9% ~5% ~5% 4.9

  50. Slide 50: 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 50 © Rheinmetall AG I March 2025

  51. Slide 51: Low leverage ratio allows us to stay opportunistic

    Financials Low leverage ratio allows us to stay opportunistic Equity ratio Net debt / EBITDA Net financial position in €m >30% <3 -166 -322 Other (31.1%) (0.71) -897 -917 Convertible1 45 5 -1,063 40 4 -1,239 12/31/2023 12/31/2024 35 3 comfort zone comfort zone  We want to maintain our 30 2 investme

  52. Slide 52: 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 8.1 5.7 39% 4.3 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 52 © Rheinmetall AG I March 2025

  53. Slide 53: Solid growth and profitability 2027

    Outlook Solid growth and profitability 2027 2027e* 2025e* 2024 +35-40% defence growth Sales ~€20bn flat civil business €9.8bn Operating margin ~18% ~15.5% 15.2% Cash conversion rate1 (OFCF to operating result) >40% >40% 71% 53 © Rheinmetall AG I March 2025 * Guidance upgrade expected in the short-te

  54. Slide 54: 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

  55. Slide 55: 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% 29%  Power Systems declining to less than 10% 39% 20% 18% 21% 9% 2024

  56. Slide 56: 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

  57. Slide 57: 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

  58. Slide 58: Key figures

    Key figures 2024 2023 2022 2021 2020¹ SALES/EARNINGS Sales € million 9,751 7,176 6,410 5,658 5,405 Of which generated abroad % 69,6 76.0 70.5 65.9 64.4 Operating result 2,4 € million 1,478 918 769 594 446 Operating margin 4 % 15.2 12.8 12.0 10.5 8.3 EBIT pre PPA € million 1,469 968 747 - - EBIT4 € m

  59. Slide 59: Balance sheet

    Balance sheet Statement of financial position of Rheinmetall Group as of December 31, 2024 Equity and liabilities €million 12/ 31/ 2024 12/31/2023 Share capital 112 112 Assets Capital reserves 696 676 Goodwill 1.426 1.125 Retained earnings 3.247 2.533 Other intangible assets 1.376 952 Treasury share

  60. Slide 60: Income statement

    Income statement Income statement of the Rheinmetall Group for fiscal 2024 €millio n 2024 2023 Sales 9.751 7.176 Changes in inventories and work performed by the enterprise and capitalized 167 696 Total operating performance 9.918 7.872 Other operating income 228 153 Cost of materials 4.859 3.935 Pe

  61. Slide 61: Cashflow statement

    Cashflow statement Statement of cash flows of Rheinmetall Group for fiscal 2024 €millio n 2024 2023 Earnings after taxes 808 586 (1.172) (1.175) Ca sh flow from inve sting a c tivitie s Amortization/depreciation/impairment of property, plant and equipment, intangible assets and investment property 4

  62. Slide 62: 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:

  63. Slide 63: Derivation of diluted earnings per share

    Derivation of diluted earnings per share 63 © Rheinmetall AG I March 2025

  64. Slide 64: 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

  65. Slide 65: Taking responsibility in a changing world

    TAKING RESPONSIBILITY IN A CHANGING WORLD 65 © Rheinmetall AG I March 2025

Rheinmetall — Investor Presentation (March 2025) on 6ix