Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (November 2015)
24 slides from Rheinmetall's investor day presentation, Nov 26, 2015
Slide 1: Rheinmetall AG Capital Markets Day, Vienna
R H E I N M E TA L L A G T H E T EC H N O LO GY G RO U P FO R S EC U R I T Y A N D M O B I L I T Y Capital Markets Day | Vienna | November 26, 2015 Armin Papperger, CEO © RHEINMETALL AG 2015
Slide 2: Strategy program Rheinmetall 2015: Highlights Automotive
Rheinmetall Group Strategy program “Rheinmetall 2015” Highlights Automotive — Set up of a global alliance for piston systems with Riken (piston rings) supplemented by production JV in China Internationalization — Accelerated formation of Mexican footprint from EUR 59 (2012) to 137 million (2015e) —
Slide 3: Strategy program Rheinmetall 2015: Highlights Defence
Rheinmetall Group Strategy program “Rheinmetall 2015” Highlights Defence — New cooperation with selected partners signed or in negotiations (Poland, Turkey, Kazakhstan) Internationalization — Accelerated expansion of hub strategy (Saudi Arabia, Algeria, Indonesia, Brazil) — Strong order intake, orde
Slide 4: 9M 2015 Successful development of Group key figures
Rheinmetall Group 9M 2015 Successful development of Group key figures Order intake in EUR million Order backlog in EUR million Sales in EUR million +405 +367 +311 4,360 6,690 6,583 6,988 3,582 3,756 3,215 Australia 3,445 2,956 ~3,260 9M 2013 9M 2014 9M 2015 9M 2013 9M 2014 9M 2015 9M 2013 9M 2014 9M
Slide 5: © RH E I N M ETAL L A G 2 0 1 5
© RH E I N M ETAL L A G 2 0 1 5 | C A P I TAL M A RK E TS D A Y | A RM I N P A P PERGER | N OV E M BER 2 6 , 2 0 1 5 5
Slide 6: Key messages of the Defence segment
Rheinmetall Defence Key messages of the Defence segment – Defence markets are at a turning point 1 – International conflicts trigger increasing budgets – Rheinmetall‘s presence on international markets significantly extended: 2 – High order intake from customers outside Europe – New and innovative p
Slide 7: Global security (1)
Rheinmetall Defence Global security (1) Substantial change in global security situation RUSSIA/UKRAINE CRISIS is challenging NATO − Armed military conflict at the Eastern border of NATO − Cold War scenarios moving back into focus “ISLAMIC STATE” − Asymmetric conflict at the South-Eastern NATO border
Slide 8: Global security (2)
Rheinmetall Defence Global security (2) Substantial change in global security situation NEW TROUBLE SPOTS on the horizon − Higher engagement of German troops in Mali in discussion − New instabilities caused by failure of Arab Spring ENDING MISSIONS in Iraq and Afghanistan − Vacuum of power after tro
Slide 9: Defence market: Swing in defence budgets triggered by conflicts
Rheinmetall Defence Defence market Swing in defence budgets triggered by conflicts CAGR CAGR CAGR CAGR CAGR CAGR 2010-2015 2015-2019e 2010-2015 2015-2019e 2010-2015 2015-2019e +0.2% +3.7% -0.4% +2.3% +1.0% +1.6% Eastern EU Scandinavia & Baltic States Turkey CAGR CAGR CAGR CAGR CAGR CAGR 2010-2015 20
Slide 10: Domestic market: revised security and arms policy
Rheinmetall Defence Domestic market Changed security situation requires a revised security and arms policy Consequences for German forces Increasing threats ― Germany accepting more responsibility in global politics worldwide ― Fulfilling NATO target of defence budget amounting to 2% of GDP until 20
Slide 11: Definition of key defence technologies in Germany
Rheinmetall Defence Definition of key defence technologies in Germany Rheinmetall currently provides a broad product range for key technologies Network Protected and Sensor centric armored Protectio n Subma ri nes technolo gy operations vehicles – Soldier systems – Optical und – Wheeled: Boxer, – So
Slide 12: Definition of German demand for security products
Rheinmetall Defence Definition of German demand for security products Moving towards full equipment of ground forces by a number of projects Fox Leopard 2 Demand for upgrade, order Upgrade of 103 tanks expected for 2016, delivery projected, order expected starting 2017, in addition new for 2017 Fox
Slide 13: German export licence policy
Rheinmetall Defence German export licence policy Fairly reliable practice of case-by-case decision rule achieved — Continuing principle: Decisions are made case by case with restrictive alignment — Neither certain countries nor certain products generally ruled out (except for embargo countries like
Slide 14: Consolidation of the defence industry
Rheinmetall Defence Consolidation of the defence industry European defence industry starts to move MERGER KMW/NEXTER − Approval of German Government under structural conditions expected − No consequences on the existing business (common products, orders) of Rheinmetall in the short and medium term,
Slide 15: Innovations: High-energy laser
Rheinmetall Defence Innovations High-energy laser: Weapon technology of the 21st century ― Laser technology developed, ready for operations in 3-5 years ― Domestic R&D order of EUR 6 million received ― Next step: qualification phase for navy and air defence ― Customer interest and first inquiries fr
Slide 16: Innovations: MBT – Advanced Technology Platform
Rheinmetall Defence Innovations MBT – Advanced Technology Platform Leopard 2A7 (+) Armata Future MBT „130mm“ 2017 2030+ ― Short- and mid-term perspective: MBT – Advanced Technology Platform ready for marketing, continuing to provide components for Leopard 2 upgraded with advanced technology ― Long-t
Slide 17: Main battle tanks: Steps 1 and 2
Rheinmetall Defence Main battle tanks Modernization in the medium term, new concept in the long term Step 1: Modernization Step 2: New caliber (130mm) Rheinmetall recently developed/ — New cannon with a larger caliber is developing state-of-the-art features: — Increase of performance — New high-pres
Slide 18: Main battle tanks: Step 3, MGCS 2030+
Rheinmetall Defence Main battle tanks Modernization in the medium term, new concept in the long term Step 3: New concept (MGCS 2030+) — MGCS concept for new main battle tank started — Currently in concept phase until 2017 in cooperation with the industry — Participation of several nations expected,
Slide 19: New internationalization initiatives
Rheinmetall Defence New internationalization initiatives Recent activities expand hub system for realizing growth potential Scandinavia UK Russia (not active) Canada Netherlands Poland Kazakhstan Switzerland USA Italy Turkey Algeria Saudi Arabia India (not active) Mexico UAE Indonesia Brazil Austral
Slide 20: New internationalization initiatives: Australia
Rheinmetall Defence New internationalization initiatives: Australia Further market potential beyond the large-scale truck order LAND 400 PROGRAM ― Tender submitted in 09/2015, offering Boxer with Lance turret ― Teamed up with Northrop Grumman ― Down-selection in 2016, final decision not before 2018
Slide 21: New internationalization initiatives: Turkey
Rheinmetall Defence New internationalization initiatives: Turkey Joint ventures to strengthen local business ― Local entity “Rheinmetall Turk” in the course of formation ― Rheinmetall Turk is designated partner of joint ventures with Turkish defence companies for Medium- and large-caliber ammunition
Slide 22: Defence at a glance
Rheinmetall Defence Defence at a glance New conflicts are resulting in a massive change to the world security situation and 1 higher Defence procurements. 2 With its product portfolio, Rheinmetall covers the national key technologies and markets innovative products for new threats (vehicle systems,
Slide 23: Appendix
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Slide 24: Appendix: Export licences process
Appendix: Rheinmetall Defence Export licences A highly political, regulated and complicated process List of abbreviations — AWG = German Foreign Trade & Payments Act Decision — DoD = Department of Defence according to “Political Principles of the Federal Government regarding the export — DoE = Depar