Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Presentation (April 2019)
77 slides from Rheinmetall's investor presentation, April 2019
Slide 1: Rheinmetall Group Corporate Presentation April 2019
Rheinmetall Group Corporate Presentation April 2019
Slide 2: Rheinmetall Group structure
Rheinmetall Group Rheinmetall Group structure Group performance indicator Strategy roadmap ~€6bn sales ~8% op. RHEINMETALL Organic International margin growth expansion ~2-4% Cash 30-35% GROUP 2018 Leading by Targeted on sales payout ratio innovations acquisitions AUTOMOTIVE DEFENCE Our heart beats
Slide 3: FY 2018 Highlights: Group
Rheinmetall Group FY 2018 Highlights: Group 2018 finished with new record levels Order intake Sales Operating Result EPS Dividend* +36% +24% €8.5bn +44 vs PY % €6.1bn +4% vs PY €492m +23 vs PY % €7.10 vs PY €2.10 vs PY Order intake jumped 44% to a record €8.5bn Solid sales development to €6.1bn on t
Slide 4: Strong FX-adjusted sales growth of 6.1%
Rheinmetall Group FY 2018 Highlights: Group Strong FX-adjusted sales growth of 6.1% Sales in €m 4.3% 239 6,148 5,896 120 -107 Strong vehicle deliveries Defence: Improved ES sales, AUD 3,221 3,036 CHF especially in Q4 Suspended export licenses South Africa incident Automotive: Strong non-LV sales BRL
Slide 5: Strong profitability gains, Defence closing in on Automotive
Rheinmetall Group FY 2018 Highlights: Group Strong profitability gains, Defence closing in on Automotive Operating result in €m +23.0% 33 518 492 -7 82 -5 400 Property 15 sales 247 254 Optimized international High utilization and 174 footprint increased value added Early reaction to market Phase-out
Slide 6: Sturdier equity ratio and return to investment grade in 2018
Rheinmetall Group Rheinmetall Group Sturdier equity ratio and return to investment grade in 2018 Key financials in €m FY 2017* FY 2018 ∆ Equity ratio improved to 32.1% Total assets 6,330 6,759 429 Equity 1,860 2,172 312 Equity ratio 29.4% 32.1% 270bp Upgrade to investment grade in April 2018 Net deb
Slide 7: Strong value generation
Rheinmetall Group Rheinmetall Group Strong value generation In €m FY 2017 FY 2018 ∆ EBITDA included €41m exceptional D&A EBITDA 626 836 33.5% EBIT benefited from €27m special effects EBIT 385 518 34.5% Interest result -39 -33 -15.4% Interest result improved also due to divestment of EBT 346 485 40.2
Slide 8: Q4 catch-up effect strongly underpinned by working capital
Rheinmetall Group Rheinmetall Group Q4 catch-up effect strongly underpinned by working capital Operating free cash flow per quarter Operating Free Cash Flow components in €m changes y/y in €m 508 77 -62 102 -421 -287 276 -140 -7 -35 -116 OFCF Net D&A Changes Changes Capex OFCF Q1 Q2 Q3 Q4 31/12/2017
Slide 9: Net-debt remained on a satisfactory level
Rheinmetall Group Rheinmetall Group Net-debt remained on a satisfactory level Net financial debt / net cash Debt composition and maturity profile in €m at quarter-end in €m 230 ∑ 855 Net IFRS16 cash adjusted Other & 181 Leasing 56 2019 2020 2021 2022 2023 2024 2025ff. 124 Bank loans 31 28 25 219 53
Slide 10: FY 2018 Highlights: Automotive
Rheinmetall Automotive FY 2018 Highlights: Automotive Concluding a challenging year with resilient profitability 2018 Difficult market environment particularly in H2 Sales growth of €69m to €2,930m (4.2% FX-adjusted) in a contracting market Operating margin of 8.9% on record level Operating FCF of €
Slide 11: Q4 2018 Highlights: Automotive
Rheinmetall Automotive Q4 2018 Highlights: Automotive Q4 with market outperformance and record margin Quarterly sales and margin development Comments on quarterly performance 751 Sales growth of 2.7% (FX-adjusted 4.2%) with strong outperformance 712 740 708 731 Operating result increased to €69m, ra
Slide 12: Automotive still strong in a weakening market
Rheinmetall Automotive Q4 2018 Highlights: Automotive Automotive still strong in a weakening market Mechatronics Sales Automotive Operating result Automotive Positive leverage, especially in the pump in €m in €m business Margin Margin Ramp-up cost for new products and +2.7% Q4 2017 9.5% Q4 2018 capa
Slide 13: Non-LV business overcompensated lagging LV sales
Rheinmetall Automotive FY 2018 Highlights: Automotive Non-LV business overcompensated lagging LV sales Global LV production Sales Automotive LV / Non-LV in million units in €m +2.4% -1.1% 2,930 2,861 95.2 94.1 +11.8% 18.9 18.6 Non-LV business 977 1,092 17.1 17.0 Without China: stagnant 26.9 27.3 -2.
Slide 14: FX-adjusted sales growth of 4.2% in a regionally mixed market
Rheinmetall Automotive FY 2018 Highlights: Automotive FX-adjusted sales growth of 4.2% in a regionally very mixed market Regional Automotive sales development Regional Automotive sales growth FY 2018 in €m in % (IHS February 2019) +2.4% 2,861 2,930 Automotive vs LV-production: 0.7% 0.8% -9.6 outperf
Slide 15: China in 2018 reported a positive development
Rheinmetall Automotive FY 2018 Highlights: Automotive China in 2018 reported a positive development Sales in €m +3.2% 55 1,003 972 -24 872 Operational sales growth of 5.7% in a contracting market of -4.0% 845 127 131 Margin slightly improved from 7.8% to 7.9% 2017 operational FX 2018 Burdening start
Slide 16: Diesel saw further decline in 2018, overcompensated by Non-LV
Rheinmetall Automotive FY 2018 Highlights: Automotive Diesel saw further decline in 2018, but overcompensated by Non-LV growth EU registrations by fuel type Sales by fuel type in % of total registrations in €m 2.4% 2,861 2,930 100% 75 other 1.5% 1.4% 1.4% 1.5% 73 24 42 1.9% 2.7% 1.5% 2.0% Hybrids 3.
Slide 17: FY 2018 Key Events: Defence
FY 2018 Key Events: Defence 2018 marked the beginning of the “super cycle” Impressive order intake of €5.6bn Sales growth of €185m to €3,221m (7.9% FX-adjusted) Operating margin increased to 7.9% Q4 OFCF of €479m raised FY to -€29m OFCF Tragic incident at South Africa plant © Rheinmetall AG / Corpor
Slide 18: Q4 2018 Highlights: Defence
Rheinmetall Defence Q4 2018 Highlights: Defence Record fourth quarter in relevant KPIs Quarterly sales and margin development Comments on quarterly performance 1,255 High order intake of €1bn drove FY to €5.6bn 1,011 754 14.3 Strong year-end sales rally of plus 24% 703 11.3 509 5.8 6.3 High utilizat
Slide 19: Strong finish by all divisions as expected
Rheinmetall Defence Q4 2018 Highlights: Defence Strong finish by all divisions as expected Sales Defence Operating result Defence in €m in €m Weapon and Ammunition Margin Margin Strong demand and larger share of Q4 2017 Q4 2018 24.1% 57.0% high profit ammunition business 1,255 11.3% 179 14.3% 1,011
Slide 20: Huge Australian orders boost order intake and backlog
Rheinmetall Defence FY 2018: Defence Huge Australian orders boost order intake and backlog Order intake by region Sales by region Order backlog by region in % in % in % +88% 5,565 8% +6% +34% 2% 3,221 8,577 15% 3,036 6% 8% 4% 1% 14% 5% 20% 6,416 25% 2,963 2% 4% 21% +63% 4% 4% 15% 28% 52% 15% 1,094 6
Slide 21: 2018 laid the foundation for further growth
Rheinmetall Defence FY 2018: Defence 2018 laid the foundation for further growth Order backlog by division Order backlog profile in €m in €m per 31/12/2018 +34% 8,577 ~2,900 ~1,800 ~3,900 2,122 6,416 2,117 1,692 1,914 5,030 Weapon and Ammunition 3,021 Electronic Solutions Vehicle Systems -211 Consol
Slide 22: The risk map for Automotive has gained complexity
Rheinmetall Automotive Outlook Automotive: 2019 The risk map for Automotive has gained complexity Indirect exposure Hard Brexit? Brexit Car tariffs US/EU Lower disposable unsolved Trade & Tariffs China income Incentive schemes? Raw materials hedged Share of new LV Raw material Increased safety stock
Slide 23: Automotive anticipates a contracting market
Rheinmetall Automotive Outlook Automotive: 2019 Automotive anticipates a contracting market LV-production scenarios 3 IHS 2018 forecast IHS reported declining growth figures IHS 2019 forecast throughout 2018 continuing into 2019 2 Rheinmetall Automotive anticipates a more 1 negative market developme
Slide 24: Various instruments available to limit impact of negative markets
Rheinmetall Automotive Outlook Automotive: 2019 and mid-term Various instruments available to limit impact of negative markets Sales scenarios Impact on operating result Possible measures Short-term Reduction of leased work force Flexibility of working hours Prioritization of projects (internal) Gen
Slide 25: Strong German commitment to 1.5% with increased demand from 2019
Rheinmetall Defence Outlook Defence: 2019 Strong German commitment to 1.5% with increased demand starting in 2019 German defence expenditure Pent-up demand of €25m proposals in €bn number of proposals +54% Expected commitment authorizations With relevance 14 2 ~ 20 for Rheinmetall 60 60 39 43 43 44
Slide 26: Solid pipeline of projects in our home markets
Rheinmetall Defence Outlook Defence: 2019 Solid pipeline of projects in our home markets Key projects and potentials VJTF-related orders (€1 – 1.5bn) Czech Republic: Lynx European vehicle (H2 2019; €1 – 1.5bn) Participation in budget increase Germany programs Hungary: Boxer/Lynx ( €~2bn) Hungary: Le
Slide 27: Further big-ticket orders in sight
Rheinmetall Defence Outlook Defence: Mid-term Further big-ticket orders in sight Order intake, sales in €bn 5.6 Targeted range of Average order intake 2013 – 2017: 3.0 €4 – 6bn order intake 3.3 3.2 3.1 2.9 3.0 3.0 2.8 2.7 2.6 2.2 2.2 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e Order intake Sales
Slide 28: Focused R&D and capex within guided parameters
Rheinmetall Group FY 2018 Highlights: Innovation Focused R&D and capex within guided parameters R&D Capex in €m and in % of sales in €m and in % of sales 157 161 154 139 101 4.9% 5.4% 5.4% 5.5% 89 73 75 2.4% 2.3% 2.9% 3.1% Automotive Defence 2017 2018 2017 2018 © Rheinmetall AG / Corporate Presentat
Slide 29: FY 2019 Guidance: High sales growth and earnings improvement targeted
Rheinmetall Group No hard Brexit; no escalation of trade FY 2019 Guidance wars High sales growth and earnings improvement targeted Sales Operating margin 2018 2019e 2018 2019e Mid-term Growth y/y in % at Growth y/y in % at in % in % in % constant FX constant FX Minus Group 6.1 4–6 8.0 around 8 €25 –
Slide 30: Select key data: outlook 2019
Rheinmetall Group Select key data: outlook 2019 Rheinmetall Group In %(PY) Automotive Defence Holding cost ~€25-30m (PY: €24m) Capex 5.5-6% (5.5%) 3.5-4.5%(3.1%) (w/o IFRS 16) 3-3.5% (4.8% ~5.5% (5.3% Comparable level reported, Tax rate D&A reported, (PY: 27%) scheduled D&A scheduled 5.2%) 3.7%) Int
Slide 31: Leading and shaping change – Focus on technology
Leading and shaping change – Focus on technology 31
Slide 32: Markets have acknowledged operational development
Rheinmetall Group Rheinmetall Group Markets have acknowledged operational development Schlusskurs 2013-to date Share price RHM Margin Sales Margin: 8.0 5.5 6.3 6.8 +10.6pp 3.4 Sales: 4,500 4,688 5,183 5,602 5,896 6,148 ~40% -2.6 2013 2014 2015 2016 2017 2018 2019c 2020c 2021p Share price: Restructur
Slide 33: Rheinmetall Technology Cluster
Rheinmetall Group Rheinmetall Technology Cluster Top five technology cluster identified Automation Digitalization Next Sensors E-Mobility Artificial Intelligence Advanced assistant New, digitalized vehicle New LIDAR* / Hybrid drive AI supported technologies systems for driving, architectures Radar s
Slide 34: Meet the current challenges of the business
Rheinmetall Automotive Automotive Meet the current challenges of the business 1 China 3 Legislation 2 Diesel 4 E-Mobility © Rheinmetall AG / Corporate Presentation April 2019 34
Slide 35: The growth drivers of Rheinmetall Automotive
Rheinmetall Automotive Market trends The growth drivers of Rheinmetall Automotive Efficiency Emission Electrification (CO2 Reduction) (Reduction) © Rheinmetall AG / Corporate Presentation April 2019 35
Slide 36: The innovation pipeline for all three trends is packed
Rheinmetall Automotive Innovations The innovation pipeline for all three trends is packed Efficiency Emission Electrification (CO2 Reduction) (Reduction) 2021 2018 © Rheinmetall AG / Corporate Presentation April 2019 36
Slide 37: Increasing portfolio for non-LV applications
Rheinmetall Automotive Diversification Increasing portfolio for non-LV applications Trucks Large bore pistons Bearings & Aftermarket continuous casting Diverse portfolio for E.g. ship and locomotive truck applications pistons Sanitary application Global supply of spare parts © Rheinmetall AG / Corpo
Slide 38: Summary Automotive
Rheinmetall Automotive Summary Automotive 1 On track to close 2018 on record levels 2 Markets are challenging, but outperformance realistic 3 Innovative portfolio accommodates growth trends 4 Margin resilience confirmed © Rheinmetall AG / Corporate Presentation April 2019 38
Slide 39: Declining budgets globally rising budgets
1990 2035 DECLINING BUDGETS GLOBALLY RISING Upscaling of “Peace dividend” (ESPECIALLY IN THE WEST) BUDGETS forces and modernization Return to Downscaling alliance and of forces and territorial armament defence Out of area INFLECTION NATO 2% missions POINT target 2014 Annexation of the Crimean penins
Slide 40: Well positioned to participate in home markets growth
Rheinmetall Defence Drivers Defence Well positioned to participate in “home markets” growth German German Budget increase NATO commitment European Australian Vehicle Land Programs Programs © Rheinmetall AG / Corporate Presentation April 2019 40
Slide 41: Timeline for German 100% equipment level
German Defence Timeline for German 100% equipment level 2023 1 BRIGADE 2027 3 BRIGADES 2031 + 8 BRIGADES UTF SaZgMa 70 t UTF / GTF WLS Puma-VJTF Fuchs LPP PiMachine Puma S1 Puma 2. batch Boxer 3.batch Weapon Station MGCS studies Fox GBF IdZ NNbS TLVS / Patriot NG BPz 3 Leopard 2Ax MaKaBo Puma 90 Fz
Slide 42: Creation of new hubs in 2018
Defence International Creation of new hubs in 2018 CANADA SKANDINAVIA EASTERN EUROPE New GREAT BRITAIN POLAND NETHERLANDS USA New MIDDLE EAST NORTH AFRICA ASIA SOUTH AFRICA AUSTRALIA © Rheinmetall AG / Corporate Presentation April 2019 42
Slide 43: Strong sales growth supported by existing backlog
Rheinmetall Defence Sales development Strong sales growth supported by existing backlog Defence sales plan 2018-2021 *Cagr: ~10% Top 10 booked projects Land 400 Boxer Land 121 5b Puma VJTF Trucks Bundeswehr Gladius Fox Kits Air Defence Systems 3x Ammunition 2017 2018e 2019p 2020p 2021p contracts © R
Slide 44: Demand-driven product development and targeted cooperations
Rheinmetall Defence Innovations Demand-driven product development and targeted cooperations New logistical platforms New tactical platforms New business models Groundbreaking sub-systems Innovative weapon and ammunition New cooperations with Sikorsky, Raytheon Digitized command and reconnaissance ©
Slide 45: Future Main Battle Tank system MGCS
European Defence Future Main Battle Tank system MGCS will be a milestone for the industry Germany to take the industrial and military lead in Main Ground Combat System (MGCS) Technical focus Development (€ 1 billion) Prototyping Start of production Project kick-off as working group 2018 2019 2020 20
Slide 46: Summary Defence
Rheinmetall Defence Summary Defence 1 On track to close 2018 on record levels 2 Start of “super cycle” provides for long-lasting profitable growth 3 Continued internationalization taps into additional regional potentials 4 Sharpening profile of ES division as a system provider creates opportunities
Slide 47: Automotive – Focus on innovation
Automotive – Focus on innovation 47
Slide 48: 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: €2.9bn RoW Hardparts Asia 1% 17% Aftermarket 12% Op. result: €262m Pistons Large-bore Pistons 33% Hardparts 45% Europe Op. margin: 8.9% USMCA 16% w/o Bearing
Slide 49: Rising global fleet and regulatory restrictions support growth
Rheinmetall Automotive Drivers for growth Rising global fleet and regulatory restrictions are supporting our growth Light vehicle production grows Emission thresholds decrease Stricter emission testing million vehicles per year ICE HEV +2% WLTP 151 CO2 NOx 112 124 Mainly EU! 95 102 76 in g/km in mg/
Slide 50: Overview Rheinmetall Automotive
Rheinmetall Automotive Overview Rheinmetall Automotive Legislation is driving the business Gain bigger share in NEV market 1 International market offer great Growth strategy outperforming 2 growth potentials Chinese market development E-Mob and Diesel impacts Build up strong local engineering / Pres
Slide 51: 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 52: E-mobility competence underlined by contracts and initiatives
Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions Contract volume for electric vehicles (EV)* E-Taxi London Pump technology for pure electric taxis € ~800 m Battery cell boxes Lifetime order value Aluminum battery boxes for German € ~250m BEV,
Slide 53: LV Diesel exposure limited; powertrain neutrality is the target
Rheinmetall Automotive LV Diesel exposure limited; powertrain neutrality is the strategic target Combined global engine production forecast* Automotive sales distribution by engine type** 100 30 LV Non Diesel units 80 25 Core Diesel 20 60 LV Diesel share in % Others 15 7% 40 10 23% Fuel 18% 20 LV Di
Slide 54: 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 2020 -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 engi
Slide 55: Automotive in China
Rheinmetall Automotive Automotive in China 50/50 joint ventures Wholly Foreign-Owned Enterprises JV subsidiary with HASCO (SAIC group) (100% Rheinmetall Automotive) Castings (KSHA) Pistons (KSSP) Castings (KPSNC) Pumps (PHP) Aftermarket Pierburg Large-bore pistons Pumps (PMP Ch.) 2014 1997 2001 2012
Slide 56: Truck: Our current product portfolio
Rheinmetall Automotive Truck Our current product portfolio Coolant Variable valve Main coolant valves control pumps Aluminum pistons Auxiliary coolant pumps Steel pistons Electrical oil pumps Piston rings Cooperation with Cylinder Riken bore coating Bearings for seat Main-bearings adjustments and do
Slide 57: Defence – at the beginning of a super cycle
Defence – at the beginning of a “super cycle” 57
Slide 58: 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: €3.2bn Weapon and Ammunition RoW Vehicle Systems Weapon and Protection Germany Op. result: €254m Aus/NZ 8% Ammunition Systems 15% Weapon and 34%
Slide 59: Defence at the beginning of long-lasting market growth
Rheinmetall Defence Defence at the beginning of long-lasting market growth Rising awareness of military threats Changes in macro Investment Islamist Crimea Geopolitical environment… backlog Terror Annexation tensions Growing project portfolios and rising budgets Germany announced Franco-German NATO
Slide 60: Germany: Drivers behind budget increase
Rheinmetall Defence Germany Drivers behind budget increase “Turnarounds” in Germany Framework nation concept triggers standardization of Personnel: equipment Mid-term return to 220,000 soldiers Material: 100% equipment level and additional division Finance: Increase of defence budget 24% from 2016 t
Slide 61: Additional structural demand of German army under discussion
Rheinmetall Defence German defence policy Additional structural demand of German army under discussion Vehicles – mid-to-long term potential Fox (400 vehicles) Boxer (300-400 vehicles) Trucks (> 10.000 vehicles) Puma (~250 vehicles) Equipment and ammunition – multi billion programs NNBS (Short range
Slide 62: Strong German project pipeline – upcoming tenders by 2021
German Defence Strong German project pipeline line up – upcoming tenders by 2021 Major mid-term potentials Germany NNBS TLVS STH D-LBO ~€ 4 billion € 1 billion ~€ 1 billion ~€ 2 billion until 2021 INCL. BUSINESS PLAN MaKaBo PiPz3 Logistic vehicle Puma upgrades 2018 2019 2020 2021 © Rheinmetall AG /
Slide 63: Defence industry in Europe
Rheinmetall Defence Defence industry in Europe Governmental shareholding restricts room for cross-border consolidation 49.9% Kongsberg Big common armament programs could be 50% Nammo Patria catalysts for further consolidation Saab Cobham BAE Systems Chemring Rheinmetall PL RO HUN CZ Rheinmetall’s ap
Slide 64: Key beneficiary of large European vehicle programmes
Rheinmetall Defence European Defence Rheinmetall is a key beneficiary of large European vehicle programmes Current or expected tenders tactical vehicles Drivers for European vehicle programs − Return to territorial and treaty defence UK MIV Challenger upgrade Lt − Standardization of NATO equipment −
Slide 65: Mission Australia: Establishing a new home market
Rheinmetall Defence Mission Australia Establishing a new “home market” down under Australia timing and order size of Land programs Trucks 1st & 2nd order 2016-2024 €2.0bn & €0.4bn Boxer CRV 2019-2026 €2.1bn Ammunition 2018/19 €65m* Lynx tender 2024-2031 €4-5bn Integrated tbd Training System Technica
Slide 66: Group Appendix
GROUP APPENDIX © Rheinmetall AG / Corporate Presentation April 2019 66
Slide 67: More than 100 production sites and offices on all continents
Appendix: 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 India France
Slide 68: ESG with high importance for Rheinmetall
Appendix: 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 • Promoting education and training investors and other st
Slide 69: Board remuneration based on three building blocks
Appendix: Rheinmetall Group Board remuneration based on three building blocks Annual target salary (100%) Fixum (60%) Performance-related variable remuneration (40%) Twelve equal portions of monthly Short term incentive Long-term incentive payments Fringe benefits: • KPI: EBT, ROCE (each 50%) • KPI:
Slide 70: Group 2014 – 2018: Key figures (as reported)
Appendix: Rheinmetall Group Group 2014 – 2018: Key figures (as reported) in €m 2014 2015 2016 2017 2018 Balance sheet Total assets 5,271 5,730 6,150 6,101 6,759 Shareholder‘s equity 1,197 1,562 1,781 1,870 2,172 Equity ratio (in %) 22.7 27.3 29.0 30.7 32.1 Pension liabilities 1121 1,128 1,186 1,080
Slide 71: Segments 2014 – 2018 Key figures
Appendix: Rheinmetall Group Segments 2014 – 2018 Key figures AUTOMOTIVE DEFENCE 2014 2015 2016 2017 2018 in €m 2014 2015 2016 2017 2018 2,466 2,621 2,670 2,922 2,889 Order intake 2,812 2,693 3,050 2,963 5,565 416 445 459 520 478 Order backlog (Dec. 31) 6,516 6,422 6,656 6415.8 8,577 2,448 2,592 2,65
Slide 72: Quarterly development Group
Appendix: Rheinmetall Group Quarterly development Group Sales Operational results in €m in €m 1,984 240 1,722 1,493 1,411 169 1,260 1,255 179 1,011 754 703 509 114 107 98 44 47 60 712 751 740 708 731 63 65 68 69 44 -1 -1 0 -2 -8 -5 -6 -8 -13 -5 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q4 2017 Q1 2018
Slide 73: Free Cash Flow summary Group
Appendix: Rheinmetall Group Free Cash Flow summary Group Q4 FY Q1 Q2 Q3 Q4 FY Δ Q4 Δ FY in €m 2017 2017 2018 2018 2018 2018 2018 '17/'18 '17/'18 Group Net Income 130 252 27 65 85 178 355 48 103 Amortization / depreciation 70 241 64 91 68 95 318 25 77 Change in pension accruals -8 -44 -42 1 1 -8 -48
Slide 74: Headcount details
Appendix: Rheinmetall Group Headcount details Headcount per segment Headcount per region in capacities at year end in capacities 6.0% 22,899 21,610 Asia Australia Africa 6% 1% 6% 11,710 Americas 11,166 15% North America 10% 49% Germany Europe 10,251 10,948 Automotive 72% Defence Group 193 241 2017 2
Slide 75: Continuing ROCE improvement
Appendix: Rheinmetall Group Continuing ROCE improvement ROCE in % Pre-tax WACC 25% (2017): 20% 17.1% 20.2% 19.0% 18.8% 18.7% 15% 16.7% 10.5% Group 13.4% 15.9% 12.3% 10.6% 10% 11.8% 10.7% 9.8% 4.7% 5% 3.9% 6.1% 0.3% 0% -4.6% -5% 2013 2014 2015 2016 2017 2018 Group Defence Automotive © Rheinmetall AG
Slide 76: Next events and IR contacts
Appendix: Rheinmetall Group Next events and IR contacts Next Events IR Contacts Franz-Bernd Reich Roadshow London 26/27 March Head of IR Tel: +49-211 473-4777 Roadshow Dublin 28 March Email: franz-bernd.reich@rheinmetall.com Roadshow Frankfurt 2 April Dirk Winkels Lampe Conference Baden-Baden 5 Apri
Slide 77: 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