Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (December 2016)
31 slides from Rheinmetall's investor day presentation, Dec 9, 2016
Slide 1: Capital Markets Day 2016 Rheinmetall Automotive
Capital Markets Day 2016 Rheinmetall Automotive Düsseldorf, 9 December 2016 Horst Binnig, CEO Rheinmetall Automotive
Slide 2: Key facts: Pick up CMD 2015, expectations for 2016
Key facts Pick up CMD 2015, expectations for 2016 Markets and Customers: • Expected stable growing market conditions • Increasing demand for efficient engines with lower emissions • Enlargement of non-LV-business with selective growth Performance and Products: • Continue to implement best cost proce
Slide 3: Megatrends: The world is changing
Megatrends The world is changing Mobility Automotive Disruption New micro- Fuel savings & Autonomous Urbanization Legislation mobility products emissions driving ALWAYS ON Sustainability and New urban mobility Interconnected E-Mobility Weight savings environmental business models wireless world prot
Slide 4: Automotive in a ten year view
Automotive in a ten year view Achieving and maintaining the target margin level Operational margin in % of sales 8.3% ~8% 7.5% 7.0% 6.5% 5.9% 4.1% Recovery from the crisis Performance driven best-cost concept/processes Positive impact of restructuring measures out of 2008 Assumption: a growing globa
Slide 5: Growing market for mobility
Growing market for mobility Aggregated LV production by region/country Global LV production in million units, change in percent Europe** +11.3% ASIA* NAFTA Germany +24.3% +7.4% 15.0 17.0 -3.3% 16.9 13.6 17.5 18.8 2015 2020 5.9 5.8 2015 2020 2015 2020 China Japan 2015 2020 +23.3% -2.3% Global 23.7 29
Slide 6: Three mainstreams for future mobility
Three mainstreams for future mobility New Technologies Electrification Efficiency © Rheinmetall Automotive AG I 9 December 2016 6
Slide 7: Three mainstreams for future mobility
Three mainstreams for future mobility New Technologies Electrification Efficiency © Rheinmetall Automotive AG I 9 December 2016 7
Slide 8: Efficiency-drivers: CO2 emission regulations
Efficiency-drivers CO2 emission regulations of important markets Liters per 100 kilometers (gasoline equivalent) Grams CO2 per kilometer, normalized to NEDC CO2 emission in grams per kilometer *Note that Japan has already exceeded its 2020 statutory target, as of 2013 Source: ICCT © Rheinmetall Auto
Slide 9: Efficiency: reduction of fuel consumption
Efficiency: reduction of fuel consumption Rheinmetall Automotive’s Road to 95 130 g 95 g CO2/km CO2/km 2015 2020 Description vehicle model (Basis) 1.4L 4-cylinder SI engine with DI and one-stage turbocharging (115kW) -2g CO2/km -2 g CO2/km -7 g CO2/km Light-weight structural El. low-press. -3 g CO2/
Slide 10: Electrification: Product life cycle Automotive (2010 to 2015)
Electrification Product live cycle Automotive (2010 to 2015) Operational margin in % of sales 8.3% 7.5% 7.0% 6.5% 5.9% 4.1% 2010 2011 2012 2013 2014 2015 © Rheinmetall Automotive AG I 9 December 2016 10
Slide 11: Efficiency: Sample sales electric coolant pump
Efficiency Sample: Sales electric coolant pump Lifetime cycle in reality: • Start development: 2005 • Start application engineering: 2007 • Market introduction 1st customer: 2010 EUR 100 million 2010 2011 2012 2013 2014 2015 © Rheinmetall Automotive AG I 9 December 2016 11
Slide 12: Looking forward: Preview 2015 to 2020
Looking forward Preview 2015 to 2020 Operational margin in % of sales 8.3% ~8% Performance driven best-cost concept/processes Assumption: a growing global LV production Expanded product portfolio for new mobility Innovation drives our business 2015 2016e 2017e 2018e 2019e 2020e © Rheinmetall Automot
Slide 13: Efficiency: Sample Variable Valve Train
Efficiency Sample: Variable Valve Train Lifetime cycle in reality: • Start development: 2012 • Customer specific development: 2017 • Market introduction 1st customer: 2019 EUR ~ 100 million 2015 2016e 2017e 2018e 2019e 2020e © Rheinmetall Automotive AG I 9 December 2016 13
Slide 14: Three mainstreams for future mobility
Three mainstreams for future mobility New Technologies Electrification Efficiency © Rheinmetall Automotive AG I 9 December 2016 14
Slide 15: Electrification: Structure of HEV, PHV, E-REV and EV
Electrification Structure of HEV, PHV, E-REV and EV Hybrid Electric Vehicle Plug-In Hybrid Vehicle Electric Range Extender Vehicle Electric Vehicle (HEV) (PHV) (E-REV) (EV) Motor Engine Motor Engine Motor Engine Motor Generator Inverter Battery Battery Battery Battery Gasoline Gasoline Gasoline Tank
Slide 16: Prognoses 2025
Prognoses 2025 2,2% 3,5% 4,3% 2,7% 3,9% 5,9% 8,0% 11,1% 18,4% Combustion Engine HEV PHVs EV 86,3% 76,6% 79,1% (All studies 2016) © Rheinmetall Automotive AG I 9 December 2016 16
Slide 17: Electrification: higher content per car by hybridization
Electrification: higher content per car by hybridization Trend of hybridization opens potential for more Rheinmetall products Enlarging the traditional product portfolio for combustion engines … … by products for hybrid and electric engines Structural Actuators Solenoid valves Electric throttle comp
Slide 18: Electrification: Structure of HEV, PHV, E-REV and EV
Electrification Structure of HEV, PHV, E-REV and EV Hybrid Electric Vehicle Plug-In Hybrid Vehicle Electric Range Extender Vehicle Electric Vehicle (HEV) (PHV) (E-REV) (EV) Motor Engine Motor Engine Motor Engine Motor Generator Inverter Battery Battery Battery Battery Gasoline Gasoline Gasoline Tank
Slide 19: Electrification: Battery Electric Vehicle
Electrification Battery Electric Vehicle Battery Pack E-Drive Unit © Rheinmetall Automotive AG I 9 December 2016 19
Slide 20: Battery Electric Vehicle – the system offers much more potential
Electrification Battery Electric Vehicle – the system offers much more potential! Drive Unit Circuit HVAC Circuit = Heating Ventilation Air Conditioning © Rheinmetall Automotive AG I 9 December 2016 20
Slide 21: Battery Electric Vehicle – the system offers much more options
Electrification Battery Electric Vehicle – the system offers much more options! Powertrain HVAC* A/C compressor (elect. HV) Coolant Pump (2) On/Off valve (3) Radiator (1) Expansion valve (3) Charge air cooler Condenser (2) Coolant Module Evaporator (1) Switch valve (coolant) (2) Liquid to liquid hea
Slide 22: Electrification: Housings combustion engine vs. E-engine
Electrification Housings combustion engine vs. E-engine Daimler M270 gasoline 4-cylinder E-engine housing with 3D-Core Raw casting weight: about 22.5 kg Raw casting weight: about 23.9 kg Finished part: about 19.2 kg Finished part: about 20 kg Dimensions: 430 x 339 x 285 mm Dimensions: 525 x 345 x 33
Slide 23: Strategic direction Hardparts
Strategy Strategic direction Hardparts Focused Optimization Investment Global Strategy Footprint Selective Focus on Growth generating Strategy FCF / Cash © Rheinmetall Automotive AG I 9 December 2016 23
Slide 24: Strategic direction Mechatronics
Strategy Strategic direction Mechatronics Sales 12% 40% 60% International Strengthen 88% Growth Thermal Strategy Management Competence 2010 2020* Europe RoW (incl. Germany) Load Pipeline Build up for emission System reduction and Competence fuel economy for Hybridisation and EV * Projection © Rheinm
Slide 25: Strategic direction Aftermarket
Strategy Strategic direction Aftermarket Sales 17% 23% Growth Enlarge Product 77% 83% Strategy in Portfolio and dedicated own production 2010 2020* markets Germany RoW Expand Aftermarket Adopt sales share in RHM changing Automotive customer order behavior * Projection © Rheinmetall Automotive AG I 9
Slide 26: Three mainstreams for future mobility
Three mainstreams for future mobility New Technologies Electrification Efficiency © Rheinmetall Automotive AG I 9 December 2016 26
Slide 27: Sales growth for New Technologies: Outlook 2020
Sales growth for New Technologies Outlook 2020 2010 2015 2020 Electrification Electrification Efficiency Efficiency New Technologies Electrification Efficiency © Rheinmetall Automotive AG I 9 December 2016 27
Slide 28: Sales split RHM Automotive: Vision 2025+
Sales split RHM Automotive Vision 2025+ 2025+ New Technologies Efficiency Electrification © Rheinmetall Automotive AG I 9 December 2016 28
Slide 29: Summary: Rheinmetall Automotive is well prepared
Summary: Rheinmetall Automotive is well prepared Markets and Customers: • We expect a stable market with lower growth rates • China will be the growth driver, Europe and NAFTA might weaken • Brazil seems to have left the worst behind Performance and Products: • Mechatronics will be the growth driver
Slide 30: It is not a matter of correctly predicting the future
„It is not a matter of correctly predicting the future, but of being prepared for it.” (Based on Perikles) © Rheinmetall Automotive AG I
Slide 31: © Rheinmetall AG I 9 December 2016
© Rheinmetall AG I 9 December 2016 31