Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Presentation (December 2017)
83 slides from Rheinmetall's investor presentation, Dec 4, 2017
Slide 1: Corporate Presentation
Corporate Presentation Rheinmetall AG, 4 December 2017
Slide 2: Rheinmetall Group: Serving the need for mobility and security
Rheinmetall Group Rheinmetall Group: Serving the need for mobility and security Sales €5,602m Organic growth Key EBIT €353m Strategy Performance Internationality expansion Operating FCF €161m roadmap Indicators EPS Headcount €4.69 20,993 (FTE) 2016 Leading by innovations Targeted acquisitions €2,656
Slide 3: Rheinmetall Group: Products and divisions
Rheinmetall Group Rheinmetall Group: Products and divisions Automotive Defence Focus: Engine efficiency, Risk balanced structure based on Established long term supplier of NOx- and CO2 - reduction >125 years of enterprise history ground force equipment Mechatronics: Provider of cleaning Clear manage
Slide 4: Rheinmetall Group: Business Model
Rheinmetall Group Rheinmetall Group: Business Model Rising individual mobility Market Increased number of conflicts and threats Regulatory push for cleaner cars drivers Higher defence spending Tier 1 supplier of OEMs Leading provider of innovative products Expansion in global markets based on high-
Slide 5: More than 100 production sites and offices on all continents
Rheinmetall Group Rheinmetall Group: More than 100 production sites and offices on all continents Germany UK Defence Russia USA Netherlands Norway Singapore Sites Canada Switzerland Sweden South Saudi Arabia Malaysia Mexico Austria Poland Africa UAE Australia Italy USA Mexico Japan China Germany Ind
Slide 6: ESG with high importance for Rheinmetall
Rheinmetall Group ESG with high importance for Rheinmetall Environment Social Governance • Reduction of the ecological footprint • Clear statement against cluster munition • Transparency towards customer, • Decrease of energy needed investors and other stakeholder • Selective use of raw materials •
Slide 7: Rheinmetall Group Q3 2017
Rheinmetall Group Corporate Presentation: Rheinmetall Group Q3 2017 © Rheinmetall AG / Corporate Presentation December 2017 7
Slide 8: Highlights Rheinmetall Group Q3 2017
Rheinmetall Group Highlights Rheinmetall Group Q3 2017 Solid quarter with strong result contribution from Defence Sales increased by 4.7% to €1.366 bn or 5.4% currency adjusted Operating result improved by 23% to €97 m Group margin gained 100bp advancing from 6.1% to 7.1% Automotive optimized global
Slide 9: Operational margin improvement continues in Q3
Rheinmetall Group Operational margin improvement continues in Q3 Sales Operational result in EUR million in EUR million Operational margin in % 7% 27% 5% 4,174 231 3,904 23% 1,366 97 182 1,305 79 7.1 6.1 Q3 Q3 9m 9m Q3 Q3 9m 9m 2016 2017 2017 2017 2016 2017 2016 2017 © Rheinmetall AG / Corporate Pre
Slide 10: Cash flow affected by working capital buildup in Defence
Rheinmetall Group Cash flow affected by working capital buildup in Defence Operating Free Cash Flow Earnings per share Headcount in EUR million in EUR in capacities 8% 3% -86% 36 1.18 2.40 20,982 21,552 2.22 +42% 0.97 0.35 0.83 -175 5 -302 Q3 Q3 9m 9m Q3 Q3 9m 9m 30.09.2016 30.09.2017 2016 2017 2016
Slide 11: Solid financial status further improved
Rheinmetall Group Solid financial status further improved Net debt Equity ratio in EUR million in % of total assets -46% +5pp 445 31% 26% 242 30.09.2016 30.09.2017 30.09.2016 30.09.2017 © Rheinmetall AG / Corporate Presentation December 2017 11
Slide 12: Highlights Rheinmetall Automotive Q3 2017
Rheinmetall Automotive Highlights Rheinmetall Automotive Q3 2017 Market outperformed, margin improved Sales rose by 6% to €684 m, FX adjusted 7.3% Operating result grew by 12% to €57 m Operating margin increased by 40bp to 8.3% Quarterly free cash flow improved by €34m to €81 m Restructuring impact
Slide 13: Rheinmetall Automotive: Good operational performance on profitability and cash level
Rheinmetall Automotive Rheinmetall Automotive Good operational performance on profitability and cash level Quarterly sales and margins development Comments on quarterly performance 737 Sales increased by 6.4% compared to global LV growth of 2.2% 728 684 643 664 8.4 9.2 8.3 Operating result rose to €
Slide 14: Operational leverage in Mechatronics and Hardparts drive the quarter
Rheinmetall Automotive Operational leverage in Mechatronics and Hardparts drive the quarter Sales Automotive Operating result Automotive Reasons for result development in EUR million in EUR million 6% 684 12% Mechatronics 643 57 Strong demand for fuel 51 optimization as main driver; emission reducti
Slide 15: Markets in better shape than anticipated, outperformance intact
Rheinmetall Automotive Markets in better shape than anticipated, outperformance intact Regional sales development Automotive Regional sales growth Q3 2017 in EUR million in % (IHS October 2017) 6% 684 Global 6.4 643 2.2 27 4 Row 3 21 South America 95 84 RoW 21 Asia -10 105 113 North America Asia 13
Slide 16: Chinese entities stronger than the market
Rheinmetall Automotive Chinese entities stronger than the market China LV production Sales in million Operating result in million / in % in million units +7% +8% 1,845 146 Strong growth and operating 1,717 134 -0.4% earnings 1,514 1,610 CNY 119 6.3 6.3 116 JVs: Hardparts sales up; 0 204 -2 236 18 27
Slide 17: Hardparts streamlined its global footprint
Rheinmetall Automotive Hardparts streamlined its global footprint Closure of pistons plant in Thionville (Lorraine/France) Financial impact Strategic step to improve the One time cost of around €22 m, cost basis of Hardparts thereof: Concentration of European €17 m for severance payments LV pistons
Slide 18: Highlights Rheinmetall Defence Q3 2017
Rheinmetall Defence Highlights Rheinmetall Defence Q3 2017 Strong momentum in earnings and order intake Order intake rose by €296 m to €870 m Sales gained 3% to €682 m Operating result increased by 53% from €30 m to €46 m Operating margin went up from 4.5% to 6.7% Boxer „UK edition“ for DSEI fair 20
Slide 19: Rheinmetall Defence: Margin and order intake trend positively towards FY guidance
Rheinmetall Defence Rheinmetall Defence Margin and order intake trend positively towards FY guidance Quarterly sales and margins development Comments on quarterly performance Strong increase of German orders (i.e. vehicles and ammunition) 1,034 661 731 682 Moderate sales growth of 3% as anticipated
Slide 20: Operational strength in Vehicle Systems as well as Weapon and Ammunition
Rheinmetall Defence Operational strength in Vehicle Systems as well as Weapon and Ammunition Sales Defence Operating results Defence Reasons for result development in EUR million in EUR million +3% +53% Weapon and Ammunition 662 682 46 Good sales development leads to higher earnings 227 248 +9% 30 2
Slide 21: German contracts essential for high order intake in Q3
Rheinmetall Defence German contracts essential for high order intake in Q3 Order intake by division Order backlog profile in EUR million in EUR billion 6.9 +52% 6.7 2.5 870 284 1.8 574 1.5 173 Major German 197 orders with total 185 value > €460 m 0.9 included 434 288 -72 -45 30.09. 30.09. 2017e 2018
Slide 22: Rheinmetall will modernize German logistical fleet
Rheinmetall Defence Rheinmetall will modernize German logistical fleet 2017 2018 2021 First lot Second lot Bundeswehr Truck Order 558 trucks ~1.600 trucks Framework agreement signed Framework agreement HX2 family replaces the existing fleet of military trucks Net value: €760 m for ~2.200 vehicles Fi
Slide 23: Guidance 2017 and mid-term
Rheinmetall Group Corporate Presentation: Guidance 2017 and mid-term © Rheinmetall AG / Corporate Presentation December 2017 23
Slide 24: Automotive: Drivers for structural earnings improvement
Rheinmetall Group Automotive: Drivers for structural earnings improvement Automotive EUR In Continuing growth of 100-200 bp above LV production rate billion 4 % 10% Increasing share of higher margin Mechatronics business 9% Optimization of the cost structure in Hardparts, e.g. by closing the pistons
Slide 25: Defence: Drivers for structural earnings improvement
Rheinmetall Group Defence: Drivers for structural earnings improvement Defence EUR In Improving market environment billion CAGR 2017-2020: ~10% % Increasing margins due to the lower influence of 3 legacy contracts 7% 6-7% Higher margin order book Revision 2 of mid- Development of new technology term
Slide 26: Outlook: Guidance affirmed for 2017
Rheinmetall Group Outlook Guidance affirmed for 2017 AU TO M OT I V E DEFENCE M a c ro v i ew Global LV production growth ~2%* Further demand increase in key markets Chinese LV production growth ~1% Germany and other allies have stepped up investment budgets R h e i n m eta l l Automotive expected t
Slide 27: Rheinmetall Automotive
Rheinmetall Automotive Corporate Presentation: Rheinmetall Automotive © Rheinmetall AG / Corporate Presentation December 2017 27
Slide 28: Automotive with leading technology and market positions
Rheinmetall Automotive Automotive with leading technology and market positions Key Figures Structure Sales by region Sales by division Sales: €2.7 bn RoW Aftermarket Hardparts ASIA 3% EBIT: €223 m 13% 11% Pistons Large-bore Pistons Europe 33% Hardparts EBIT margin: 8.4% 17% 47% w/o Bearings Castings
Slide 29: Strategic goals of Rheinmetall Automotive
Rheinmetall Automotive Strategic goals of Rheinmetall Automotive STRATEGIC GOALS Increasing content per car Gaining powertrain neutrality More products at higher value as Minimize dependence on certain emission reduction, hybridization types of drives and electrification will require Increase “elect
Slide 30: Rising global light vehicle production
Rheinmetall Automotive Rising global light vehicle production Light vehicle production 2016-2020 CAGR in % / in million units Europa Germany NAFTA Asia* +1.3% +1.2% -0.6% +4.5% Japan +2.2% China Global -0.5% 101 93 +2.7% NAFTA 19 18 Europe 16 17 6 6 Germany Asia 50 55 * without China und Japan ROW *
Slide 31: Governments will continue to demand reduction of CO2 emissions
Rheinmetall Automotive Governments will continue to demand reduction of CO2 emissions CO2 emission in g/km India 113 122 117 Europe 95 97 *Note that Japan has already exceeded its 2020 statutory target, as of 2013 Source: ICCT © Rheinmetall AG / Corporate Presentation December 2017 31
Slide 32: Growth of electric vehicles/hybrids
Rheinmetall Automotive Growth of electric vehicles/hybrids Based on LV production worldwide (in m) 151 124 112 75.5 102 96 85 89.5 89 92 75.5 39 22.5 4 13 2017 2020 2025 2030 2040 E-Vehicles/Hybrids Combustion engines Source: IHS © Rheinmetall AG / Corporate Presentation December 2017 32
Slide 33: CO2 Reduction with Automotive Products – Gasoline Engine Vehicle
Rheinmetall Automotive Efficiency CO2 Reduction with Automotive Products – Gasoline Engine Vehicle 130 g 95 g CO2/km CO2/km 2015 2021 -2 g CO2/km -2 g CO2/km Reference model -7 g CO2/km Lightweight design parts Electr. 1.4L 4-cylinder -3 g CO2/km Variable valve train EGR system TC DI gasoline engine
Slide 34: LV Diesel exposure limited; powertrain independence is the strategic target
Rheinmetall Automotive LV Diesel exposure limited; powertrain independence is the strategic target Combined global engine production forecast* Automotive sales distribution by engine type** 100 30 LV Non Diesel units 25 Core Diesel 80 20 Others 60 LV Diesel share in % 7% 15 17% 40 Fuel 10 25% indepe
Slide 35: Broad product range for alternative drive systems
Rheinmetall Automotive Broad product range for alternative drive systems Enlarging the traditional product portfolio for combustion engines … + … by products for hybrid and electric engines Solenoid valves Actuators Structural components Electric throttle bodies Engine bearings Battery boxes (as fro
Slide 36: E-mobility competence underlined by contracts and by initiatives for new solutions
Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions New products for the International Motor Show (IAA) E-Mobility @ Rheinmetall Automotive: in Frankfurt, September 2017: E-Mobility Demonstrator E-traction motor High voltage motor Designed for sm
Slide 37: Opportunities for all Types of Electrification (Hybrid – BEV – FCEV)
Rheinmetall Automotive Electrification Opportunities for all Types of Electrification (Hybrid – BEV – FCEV) Technology Fields > Thermal Management > Heating / Conditioning > Comfort and Safety > Lightweight Design > Propulsion System > Energy Storage Serial production development © Rheinmetall AG /
Slide 38: E-mobility competence underlined by contracts and by initiatives for new solutions
Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions Contract volume for electric vehicles (EV)* Product Volume Contract duration (Ø) E-Taxi London Battery EV €~300 m 6 – 8 years Pump technology for pure electric taxis (Plugin) Hybrid EV €~200 m 4
Slide 39: More than 40 locations with high focus on local needs
Rheinmetall Automotive Markets with different growth focus: More than 40 locations with high focus on local needs Germany USA Tamm Auburn Hills Berlin Greensburg Dormagen Greenville (Fountain Inn) Hartha Marinette Langenhagen Neckarsulm (Headquarters) Mexico Neuss Celaya Neuenstadt Papenburg Brazil
Slide 40: Summary
Rheinmetall Automotive Summary Markets and Customers: Markets in better shape than anticipated, global LV production will grow by >2% Our global production and technology footprint will follow local needs Rheinmetall Automotive intends to outperform markets in future, too Performance and Products: S
Slide 41: Rheinmetall Defence
Rheinmetall Defence Corporate presentation: Rheinmetall Defence © Rheinmetall AG / Corporate Presentation December 2017 41
Slide 42: Defence is a leading supplier with an increasing international presence
Rheinmetall Defence Defence is a leading supplier with an increasing international presence Key Figures Structure Sales by region Sales by division Sales: €2.9 bn Weapon and Ammunition RoW Vehicle Germany Systems Weapon and Weapon and Protection Ammunition EBIT: €147 m 16% Ammunition Systems NAFTA 2
Slide 43: Strategic goals of Rheinmetall Defence
Rheinmetall Defence Strategic goals of Rheinmetall Defence Strategic goals Entering new markets Enlarging internationalization Strategic partnerships to gain Form partnerships with local access to new markets suppliers to provide local content Target markets close to traditional markets, e.g. public
Slide 44: Defence is at the beginning of long lasting market growth
Rheinmetall Defence GLOBAL +1,3% Defence is at the beginning of long lasting market growth Defence budgets development 2016 – 2020 in % p.a. Europe North America +1.2% + MENA Asia/Pacific +3.0% +4.0% Latin America Global +2.7% +1.3% Global military expenditures in bn USD 2016: 1,563 2020: 1,649 Sour
Slide 45: Market growth based on several drivers
Rheinmetall Defence Market growth based on several drivers NATO and international demand: Generally increasing defence budgets EU defence policy European defence union; European defence fund German domestic demand From hollow structures to full equipment Army 4.0: Digitization of army equipment and
Slide 46: EU member states en route to comply with NATO 2% target
Rheinmetall Defence EU member states en route to comply with NATO 2% target Europe: Defence budget development in % 2017e* NATO equipment expenditure in % of total expenditure * 30% 60.00% NATO Goal Germany NATO Europe NATO North America 50.00% 40.00% 30.00% 20% 20.00% 10.00% 0.00% -10.00% 10% Denma
Slide 47: NATO and international demand: Framework nation concept triggers standardization of equipment
Rheinmetall Defence NATO and international demand: Framework nation concept triggers standardization of equipment Framework nation concept Joint concept + + EU NATO states Partner Joint training Standardized equipment German initiative Framework nation provides basic military structures (incl. logis
Slide 48: NATO and international demand (current tender): UK and Australian vehicle programmes
Rheinmetall Defence NATO and international demand (current tender): UK and Australian vehicle programmes UK Mechanised Infantry Challenger Upgrade LAND 121 Phase 3b LAND 400 Phase 2 Vehicle 227 vehicles with total value Around 2,500 vehicles and 3,000 of GBP685 m 225 vehicles 500 8x8 Boxer Utility V
Slide 49: EU defence policy: EU brought defense matters back on the agenda
Rheinmetall Defence EU defence policy: EU brought defense matters back on the agenda Drivers for European defense politics Gain strategic autonomy Improve efficiency and interoperability Increase EU industry competitiveness European Council decision Permanent structured cooperation (PESCO) European
Slide 50: EU defence policy: Franco-German initiative with a project basket of approx. €175 bn
Rheinmetall Defence EU defence policy: Franco-German initiative with a project basket of approx. €175 bn Franco-German lighthouse projects Main Focus for Rheinmetall Defence Rheinmetall participates as component supplier © Rheinmetall AG / Corporate Presentation December 2017 50
Slide 51: German domestic demand: German MoD initiated three trend reversals
Rheinmetall Defence German domestic demand: German MoD initiated three trend reversals Personnel Mid-term return to 220,000 soldiers Equipment Full equipment level Long-term structural reinforcement (new division) Budget Increase of defence budgets €130 billion investment until 2030 © Rheinmetall AG
Slide 52: Germany is one of 22 NATO states increasing defence budgets
Rheinmetall Defence Germany is one of 22 NATO states increasing defence budgets Enhanced future profile of German Bundeswehr German defence budget 2016-2021 in EUR billion* “Anchor army” for smaller neighbors Leading role in the “enhanced Forward 62 23% 2% Presence” in Lithuania 40 41 42 34 37 39 Fr
Slide 53: German army with new role as lead nation for VJTF
Rheinmetall Defence German domestic demand: German army with new role as lead nation for VJTF Very High Readiness Joint Task Force (VJTF) VJTF „the spearhead“ as part of the NATO Response Force Multinational brigade with 5 battalions (5.000 troops) Rotating lead nations Start of operation in 2017 Ge
Slide 54: German domestic demand (mid and long-term): Additional structural demand
Rheinmetall Defence German domestic demand (mid and long-term): Additional structural demand of German army under discussion Vehicles – mid-term potential Fox Boxer Trucks Puma Equipment and ammunition – multi billion programs NNBS (Short air defence) TLVS (Tactical air defence) MoTaKo Ammunition ©
Slide 55: 2017 marked by important strategic partnerships
Rheinmetall Defence 2017 marked by important strategic partnerships Joint bid for MoTaKo /MoTIV Various areas of cooperation Cooperation agreement for drive by Partnering agreement for the project under analysis wire technology in military and dual Bundeswehr assault rifle RS 522 Scope use applicati
Slide 56: Army 4.0: Rheinmetall integrates components to systems
Rheinmetall Defence Army 4.0: Rheinmetall integrates components to systems MoTaKo Battle Management Network Network-capability Air Defence Combined Systems System house Armored Infantryman Digitization HX truck Gladius Lynx Systems / Platforms Integration Key Components Lance turret Innovation & Amm
Slide 57: Army 4.0: Soldier systems build the foundation of all digitization
Rheinmetall Defence Army 4.0: Soldier systems build the foundation of all digitization System Infantry Armored Infantrymen Battle Management System + Simulation and Training © Rheinmetall AG / Corporate Presentation December 2017 57
Slide 58: Army 4.0: SENECA – Latest development to enhance effectiveness of combatants
Rheinmetall Defence Army 4.0: SENECA – Latest development to enhance effectiveness of combatants Sensor Effector Network for Enhanced Combat Applications © Rheinmetall AG / Corporate Presentation December 2017 58
Slide 59: Army 4.0: MoTaKo / MoTIV will propel the German Army into the digital future
Rheinmetall Defence Army 4.0: MoTaKo / MoTIV will propel the German Army into the digital future JV-share and core capabilities Rheinmetall (74.9%): Rohde & Schwarz (25.1%): Command systems Communication system Cross-functional operator architecture, IP based solution interface for voice and data tr
Slide 60: Army 4.0: MoTaKo/MoTIV: What supports our ambition?
Rheinmetall Defence Army 4.0: MoTaKo/MoTIV: What supports our ambition? Exclusive Rohde &Schwarz is the key partner partnership for all communication equipment Top competency: Long-term partnership for all kind of Vehicle upgrades system upgrades Integrated Our infantry fighting vehicles come battle
Slide 61: Appendix
Appendix Rheinmetall Group Corporate Presentation: Appendix © Rheinmetall AG / Corporate Presentation December 2017 61
Slide 62: Selected key data: outlook 2017
Appendix Rheinmetall Group Selected key data: outlook 2017 Rheinmetall Group Automotive Defence Holding cost ~€20 – 25 m Capex* ~5.5 - 6.5% ~3 - 4% Tax rate ~30% D & A* ~4.5 - 5.5% ~3 - 3.5% R & D* ~4 - 6% ~2 - 3% Financing: Bond €500 m (5.25% coupon) redeemed in September 2017 EIB loan €250 m (0.96
Slide 63: Group 2012 – 2016: Key figures
Appendix Rheinmetall Group Group 2012 – 2016: Key figures in EUR million 2012 2013 2014 2015 2016 Balance sheet Total assets 4,899 4,866 5,271 5,730 6,124 Shareholder‘s equity 1,465 1,339 1,197 1,562 1,781 Equity ratio (in %) 29.9 27.5 22.7 27.3 29.0 Pension liabilities 919 891 1,121 1,128 1,186 Net
Slide 64: Segments 2012 – 2016 Key figures
Appendix Rheinmetall Group Segments 2012 – 2016 Key figures AUTOMOTIVE DEFENCE 2012 2013 2014 2015 2016 in EUR million 2012 2013 2014 2015 2016 2,378 2,270 2,466 2,621 2,670 Order intake 2,933 3,339 2,812 2,693 3,050 418 392 416 445 459 Order backlog (Dec. 31) 4,987 6,050 6,516 6,422 6,656 2,369 2,2
Slide 65: Income statement Group
Appendix Rheinmetall Group Income statement Group In EUR million Income Statement Q3 '16 Q3 '17 Δ Q3 '16 Q3 '17 Δ Total operating performance 1,385 1,407 22 Net operating income (EBIT) 79 75 -4 Net interest income 1 3 2 Interest expenses - 15 - 13 2 Other operating income 26 19 -7 Earnings before ta
Slide 66: Cash flow statement Group
Appendix Rheinmetall Group Cash flow statement Group In EUR million Cash Flow Statement 9m 2016 9m 2017 Δ 9m 2016 9m 2017 Δ Net Income 99 122 23 Capital payment to/ capital contribution by non-controlling interests-8 -10 -2 Amortization, depreciation and impairment 161 171 10 Increase in shares in c
Slide 67: Balance Sheet Group
Appendix Rheinmetall Group Balance Sheet Group In EUR million Balance Sheet 31.12.'16 30.09.'17 Δ 31.12.'16 30.09.'17 Δ Non-current assets 2,762 2,715 -47 Equity 1,781 1,811 30 Intangible assets 819 798 -21 Share capital 112 112 0 Property, plant and equipment 1,378 1,340 -38 Additional paid-in capi
Slide 68: Quarterly development Group
Appendix Rheinmetall Group Quarterly development Group Sales Operational results in EUR million in EUR million 1,698 171 1,459 1,349 1,366 1,305 1,034 115 612 731 95 97 682 662 79 45 46 30 50 664 737 728 684 643 60 62 57 51 56 -2 -4 -10 -6 -6 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 -2 Q3 2016 Q4 201
Slide 69: Cash Flow Statement Group
Appendix Rheinmetall Group Cash Flow Statement Group Q3 9m Q4 Q1 Q2 Q3 9m Δ Q3 Δ 9m in EUR million 2016 2016 2016 2017 2017 2017 2017 2016/2017 2016/2017 Group Net Income 46 99 116 28 51 43 122 -3 23 Amortization / depreciation 52 161 67 57 55 59 171 7 10 Change in pension accruals - -14 - -34 -3 1
Slide 70: Equity and pension liabilities
Appendix Rheinmetall Group Equity and pension liabilities Financial solidity materially improved Drivers Equity and Equity ratio EUR m % 1,500 40% 29% 31% 28% 27% 29% 30% 1,000 23% Confidence increased by delivery on our targets 20% 500 Capitalizing on our restructuring efforts 10% 0 0% Achievement
Slide 71: Net-financial debt considerably improved on positive cash development
Appendix Rheinmetall Group Net-financial debt considerably improved on positive cash development Net-financial debt Debt composition and maturity profile of instruments in EUR million at quarter end in EUR million 652 -19 20 Other & Leasing 2017 2018 2019 2020 2021 2022 2023ff 139 29 Bank loan 35 81
Slide 72: Moderate headcount increase to accompany growth
Appendix Rheinmetall Group Moderate headcount increase to accompany growth Headcount per segment Headcount per region in capacities at year end in capacities at year end 1.5% 20,676 20,993 20,166 RoW Mexico 7% 4% 10,934 10,820 15% 10,830 Brazil 5% Americas 5% Asia 48% Germany Europe 9,184 9,581 10,0
Slide 73: Quarterly development Automotive
Appendix Rheinmetall Automotive Quarterly development Automotive Sales by division Operational results by division in EUR million in EUR million 737 728 67 684 664 62 643 60 57 51 425 407 380 382 47 355 35 43 40 35 249 251 232 22 225 222 16 11 17 13 82 85 83 93 95 9 8 7 9 9 -19 -23 -20 -23 -25 -4 -5
Slide 74: Cash flow statement Automotive
Appendix Rheinmetall Automotive Cash flow statement Automotive Q3 9m Q4 Q1 Q2 Q3 9m Δ Q3 Δ 9m in EUR million 2016 2016 2016 2017 2017 2017 2017 '16/'17 '16/'17 Net income 36 116 49 46 50 25 121 -11 5 Amortization / depreciation 29 93 40 32 32 37 101 8 8 Change in pension accruals -1 -1 -1 - - - - 1
Slide 75: Automotive in China
Appendix Rheinmetall Automotive Automotive in China 50/50 joint ventures Wholly Foreign-Owned Enterprises JV subsidiary with HASCO (SAIC group) (100% Rheinmetall Automotive) Castings (ATAG) Pistons (KSSP) Castings (KPSNC) Pumps (PHP) Aftermarket Pierburg Large-bore pistons Pumps (PMP Ch.) 2014 1997
Slide 76: Electrification and downsizing require more sophisticated products
Appendix Rheinmetall Automotive Electrification and downsizing require more sophisticated products Coolant pump Exhaust gas recirculation Valve, cooler, bypass and Mechanical >6x Electrical Valve >3x bypass actuator Oil pump Piston Mechanical >3x Variable Aluminum >3x Steel © Rheinmetall AG / Corpor
Slide 77: Quarterly development Defence
Appendix Rheinmetall Defence Quarterly development Defence Sales by division Operational earnings by division in EUR million in EUR million 115 1,034 63 391 46 662 731 682 613 25 227 305 248 30 244 191 28 24 172 138 165 141 25 12 483 30 6 361 351 337 370 5 14 13 4 0 1 -98 -84 -67 -52 -101 -4 -3 -4 -
Slide 78: Cash flow statement Defence
Appendix Rheinmetall Defence Cash flow statement Defence Q3 9m Q4 Q1 Q2 Q3 9m Δ Q3 Δ 9m in EUR million 2016 2016 2016 2017 2017 2017 2017 '16/'17 '16/'17 Net income 13 -4 78 -16 8 32 24 19 28 Amortization / depreciation 22 66 26 24 22 21 67 -1 1 Change in pension accruals 1 4 1 -3 -6 2 -7 1 -11 Cash
Slide 79: Defence industry in Europe
Appendix Rheinmetall Defence Defence industry in Europe Governmental shareholding restricts room for cross-border consolidation Kongsberg Big common armament programs as Nammo Patria catalyst for further consolidation are not Saab at European mid-term horizon Cobham BAE Systems Chemring Rheinmetall
Slide 80: Management Structure
Appendix Rheinmetall Group Management Structure © Rheinmetall AG / Corporate Presentation December 2017 80
Slide 81: Next events and IR contacts
Appendix Rheinmetall Group Next events and IR contacts Events 2017 IR Contacts Q3 Earnings call 7 Nov Franz-Bernd Reich Capital Markets Day 2017 Bremen 21 – 22 Nov Head of IR Berenberg Conference Pennyhill 4 – 5 Dec Tel: +49-211 473-4718 Email: franz-bernd.reich@rheinmetall.com Dirk Winkels Senior I
Slide 82: Disclaimer
Appendix Rheinmetall Group 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 o
Slide 83: © Rheinmetall AG / Corporate Presentation December 2017
© Rheinmetall AG / Corporate Presentation December 2017 83