Hensoldt Ag · XETR:HAG
Hensoldt — Investor Day (December 2024)
60 slides from Hensoldt's investor day presentation, Dec 12, 2024
Slide 1: Focusing on Execution, Growth and Innovation
HENSOLDT Focusing on Execution, Growth and Innovation Capital Markets Day 2024 12th December 2024 This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 2: Content & Agenda
HENSOLDT CMD 2024 Content & Agenda 1 2 3 Executing and growing North Star: our strategy Financial performance in a dynamic market to capture future growth and outlook Coffee Welcome Q&A Break This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third pa
Slide 3: Executing and growing in a dynamic market
HENSOLDT CMD 2024 1 Executing and growing in a dynamic market This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 4: Key enablers for growth
HENSOLDT CMD 2024 Key enablers for growth Market Portfolio Political support Change plan Strong YTD, outlook 2024 Right technologies Strong support Clear plan to improve and momentum for growth and solutions capabilities in place by political stakeholders and deliver Growth Strategy North Star to ta
Slide 5: Navigating our path towards HENSOLDT 2.0
HENSOLDT CMD 2024 Navigating our path towards HENSOLDT 2.0 Mid-term priorities New divisional setup North Star Operational Excellence Radar & EW Optronics Internationalization HENSOLDT Services & Training 2.0 Digitalization Multi-Domain Solutions ESG PMI Source: HENSOLDT AG. 5 This document a nd its
Slide 6: Strong drivers to increase defence spending
HENSOLDT CMD 2024 Strong drivers to increase defence spending German Parliamentary European Sovereignty NATO Elections Capabilities Review New elections will be held in February 2025 US administration progressively pushing NATO Continuous review of conventional capabilities members to increase defen
Slide 7: High visibility from order backlog and pipeline
HENSOLDT CMD 2024 High visibility from order backlog and pipeline Order backlog (€bn) Unweighted pipeline(1) (€bn) ~46 ~37 3.0x 6.5 10 2.2 2019 9M 2024 At IPO Today Identified pipeline 2021 - 2023E 2025E - 2027E for 2025E - 2030E Source: HENSOLDT AG. (1) Pipeline is defined as total identified op po
Slide 8: Important orders received during first 9 months
HENSOLDT CMD 2024 Important orders received during first 9 months Air Defence Radars LEOPARD 2 ZEBEL Final Focus Metrology F126 NNbS, Ukraine, ESSI Commander periscope, Operation of the central Next generation of high TRS-4D radars for additional gunner thermal sight, German Armed Forces spare preci
Slide 9: Technological leadership in a rapidly changing operational environment
HENSOLDT CMD 2024 Technological leadership in a rapidly changing operational environment Ceretron TwinSens Kalaetron Integral OctoEye360 Fuses sensor data, evaluates, Combines Twinvis passive radar Airborne Electronic Support 360° situational awareness system processes and provides with TRML-4D acti
Slide 10: HENSOLDT strongly positioned in key defence programs in Germany and Europe
HENSOLDT CMD 2024 HENSOLDT strongly positioned in key defence programs in Germany and Europe across all domains Eurofighter Typhoon F35 FCAS HTH P8 / MAWS ECRS Mk1 radar and PRAETORIAN eVolution Stealth Fighter Jet Future combat air system Heavy Transport Helicopter Maritime Patrol Aircraft LEOPARD
Slide 11: HENSOLDT has gained trust and support of political stakeholders
HENSOLDT CMD 2024 HENSOLDT has gained trust and support of political stakeholders HENSOLDT the national German sensor champion - further strengthened with the acquisition of ESG Key supplier to German armed forces - products support German government’s strategy Pure-play and platform independence -
Slide 12: North Star: our strategy to capture future growth
HENSOLDT CMD 2024 2 North Star: our strategy to capture future growth This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 13: North Star is our clear vision to guide the next stage of growth
HENSOLDT CMD 2024 North Star is our clear vision to guide the next stage of growth Mid-term priorities New divisional setup North Star Operational Excellence Radar & EW Optronics Internationalization HENSOLDT Services & Training 2.0 Digitalization Multi-Domain Solutions ESG PMI Source: HENSOLDT AG.
Slide 14: Four axes define our strategy
HENSOLDT CMD 2024 Four axes define our strategy Grow Deliver Pioneer Lead our team with focus at scale Software Defined into the future Defence Deliver sustainable and Achieve step change in operational Digitize and enhance Act as #OneHENSOLDT team profitable growth excellence to meet volume and pla
Slide 15: Our formula to reach €5bn revenues by 2030
HENSOLDT CMD 2024 Our formula to reach €5bn revenues by 2030 5 terms to boost our growth and ensure long-term resilience Focused growth Smart and Diversified Multi-Domain Connected Sensors Scaled and enhanced products Services High value-added services Solutions Higher value chain positioning Target
Slide 16: Deliver at scale
HENSOLDT Deliver at scale Christian Ladurner, CFO This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 17: Key enablers to deliver at scale
HENSOLDT CMD 2024 Key enablers to deliver at scale Operational Excellence Infrastructure Improvement Processes and IT 1. Industrial 2. Agile 3. Resilient Significant investments Roll-out on track to expand production to full implementation Industrialize Key Engineering Supply Chain capacities by 202
Slide 18: GO! delivers
HENSOLDT CMD 2024 HENSOLDT GO! delivers Industrial, agile & resilient We have set the foundation We have achieved key targets We continue to scale up 11 out of 32 1. Industrial Key products (TRML-4D, Spexer, Sights) key products identified as relevant E2E Integrated Ramp-Up of integrated Industriali
Slide 19: Significantly increased production capacity at the Ulm site
HENSOLDT CMD 2024 Significantly increased production capacity at the Ulm site Project Highlights Key facts TRML-4D Production Capacity Spexer Production Capacity(1) Headcount increase of 140+ FTEs (units per annum) (units per annum) Ramp-up of new machinery, including +800% +385% • new assembly line
Slide 20: Increased production capacity at the Oberkochen and Wetzlar sites
HENSOLDT CMD 2024 Increased production capacity at the Oberkochen and Wetzlar sites Project Highlights Key facts Headcount increase of 50 FTEs, Sights(1) SETAS especially in the area (units per annum) (units per annum) of ground-based systems Start of production for new products, 83% including new W
Slide 21: New logistic center at the Laichingen site
HENSOLDT CMD 2024 New logistic center at the Laichingen site Project Highlights Centralised logistics operations for sites in southern Germany 29.600m2 centre with 10k+ pallets and ~40k RackBot containers Go-live successfully performed end of October 2024 First SAP S4 HANA module (EWM) launched to e
Slide 22: #oneSAPnow as key enabler for North Star
HENSOLDT CMD 2024 #oneSAPnow as key enabler for North Star Integration on track for our global end-to-end business and IT transformation … 2024 2025 2026 2027 … … Realize Pilot Roll-out Roll-out wave 1 Roll-out wave 2 … Early 2025 Mid 2025 End of 2025 End of 2027 Global CRM roll-out Global HCM roll-
Slide 23: ESG integration on track, synergy potential confirmed
HENSOLDT CMD 2024 ESG integration on track, synergy potential confirmed Synergies confirmed and on track Significant short-term OI captures Strong mid-/long-term OI synergy potential • Airborne platform sensor integration & • German frigate F127 in partnership Order intake synergies data analysis: Z
Slide 24: Grow with focus
HENSOLDT Grow with focus Oliver Dörre, CEO This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 25: The world is facing ongoing conflicts and instability
HENSOLDT CMD 2024 The world is facing ongoing conflicts and instability Macro Trends Key Threats European permacrisis New conflict zones US pressure on NATO Pacific instability Energy and resource scarcity Regional destabilizers Economic power shifts Pervasive cyber threat Geopolitical hotspots Sour
Slide 26: Our customers invest into defence
HENSOLDT CMD 2024 Our customers invest into defence Growth drivers Implications for alliance, industry and HENSOLDT • Significant pressure on Europe to become more independent Increasing demand for conventional • 23 of 32 NATO members will reach or exceed 2% GDP for defence in 2024 and beyond capabi
Slide 27: Market growth strong across major market segments
HENSOLDT CMD 2024 Market growth strong across major market segments Global Accessible Defence Electronics Growth by Major Segment Operational imperative for interconnected sensors 7.4% 10.0% Strong electronics density growth 7.3% 5.7% Speed and scale of major procurement programs Radar Electronic Wa
Slide 28: Accessible market continues to outperform topline spending trend
HENSOLDT CMD 2024 Accessible market continues to outperform topline spending trend Germany Europe excluding Germany International(1) 2024 €3.3B 2024 €7.9B 2024 €16.6B 10.6% 7.4% 7.2% 6.6% 5.5% 4.5% Defence Spending Defence SpendingCAGR CAGR2024E – 2030F 2024E – 2030F Accessible Defence Accessible De
Slide 29: ESG adds significant new market presence and capabilities
HENSOLDT CMD 2024 ESG adds significant new market presence and capabilities ESG Global Accessible Market Scale 20% Provides MDO integration Key software and system Expands services offering capabilities engineering capabilities ESG Global Accessible Market Size and Key Growth Regions 8.6% 80% 6.6% 2
Slide 30: HENSOLDT growth fuelled by strong German customer demand
HENSOLDT CMD 2024 HENSOLDT growth fuelled by strong German customer demand Facets of German defence spending… …with HENSOLDT positioned across all 1 Increasing Scale of Existing Capabilities EF Quadriga F126 Leopard 2A8 Order Expansion Order Expansion 2 Upgrades to Existing Capabilities EF EW EF Mk1
Slide 31: Grow with focus: Achieve sustainable and profitable growth
HENSOLDT CMD 2024 Grow with focus Achieve sustainable and profitable growth Growth ambitions 2024-2030 Organic growth ~10% CAGR p.a. Organic growth levers Impacted scope M&A driven growth ~3% CAGR p.a. Volume increase of key products CAGR Advanced solutions development bn € ~13% p.a. 5.0 0.6 M&A Ser
Slide 32: Focused international growth ambition and smart go-to-market approach
HENSOLDT CMD 2024 Focused international growth ambition and smart go-to-market approach Strategic actions Targeted split of HENSOLDT revenue by region Prioritized strategy for focus countries ~50% Key account strategy Germany Europe Strategic Countries Solution-oriented portfolio Portfolio of market
Slide 33: New partnerships reinforce our strategy
HENSOLDT CMD 2024 New partnerships reinforce our strategy Source: HENSOLDT AG. 33 This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 34: Pioneer software defined defence
HENSOLDT Pioneer software defined defence Oliver Dörre, CEO This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 35: Customer push towards software-centricity means a paradigm shift in defence
HENSOLDT CMD 2024 Our customer’s push towards increased software-centricity means a paradigm shift in defence Software Defined Defence (SDD) Key levers Customer paradigm shift Software as the core of modular Open, modular architecture weapon and network design Sensor data fusion Data-centric archite
Slide 36: HENSOLDT is at the core of the smart and connected battlefield
HENSOLDT CMD 2024 HENSOLDT is at the core of the smart and connected battlefield Presence of electronics over time HENSOLDT Sensors pre-requisite for Multi-Domain Operations Leopard 2A7+ ca. 45% MGCS ca. 55% Eurofighter ca. 40% FCAS ca. 45% F125 class ca. 35% F127 class ca. 40% Acoustics EW Optronic
Slide 37: SDD will enhance our solution offerings and add new revenue streams
HENSOLDT CMD 2024 Based on our core portfolio, SDD will enhance our solution offerings and add new revenue streams Smart and connected sensor specialist Data driven service provider Multi-domain solutions integrator Services Reinforce product core positioning Diversify services offer Develop from “I
Slide 38: HENSOLDT will play a pivotal role in the SDD ecosystem
HENSOLDT CMD 2024 HENSOLDT will play a pivotal role in the SDD ecosystem SDD ecosystem HENSOLDT Network and fuse data from smart and connected multi-spectral sensors Smart and connected sensors 3rd party sensors Leverage Edge AI and containerise software for cloud environment Sensor data fusion & AI
Slide 39: Sensor data fusion and AI building blocks are in our portfolio today
HENSOLDT CMD 2024 Sensor data fusion and AI building blocks are in our portfolio today Existing sensor data fusion capabilities Existing artificial intelligence capabilities PEGASUS FCAS Kalaetron Integral Spexer 2000 Ceretron Elysion SETAS TRS-4D/TRML-4D Source: HENSOLDT AG. 39 This document a nd i
Slide 40: TwinSens case study
HENSOLDT CMD 2024 Sensor data fusion and AI building blocks are in our portfolio today TwinSens case study Increase survivability and accuracy Connectivity between remote sensors Fusion of dual-band surveillance data Automation through Machine Learning and AI Cyber-hardened and jamming resistant Sou
Slide 41: Our roadmap to software-centricity
HENSOLDT CMD 2024 Our roadmap to software-centricity Focused self-funded R&D Customer-funded R&D Portfolio digitalisation Smart partnering Targeted M&A #oneSAPnow Source: HENSOLDT AG. 41 This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party w
Slide 42: Exponential future growth, based on a strong foundation
HENSOLDT CMD 2024 Exponential future growth, based on a strong foundation HENSOLDT 2030+ HENSOLDT Multi-Domain Solutions today Higher value chain positioning Diversified Services High value-added Service Provider Smart & Connected Sensors Leading Sensor specialist Scaled & enhanced Source: HENSOLDT
Slide 43: Lead our team into the future
HENSOLDT Lead our team into the future Lars Immisch, CHRO This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 44: Leading our teams into the future, based on six guiding principles
HENSOLDT CMD 2024 Leading our teams into the future, based on six guiding principles Meaningful mission 2024 North Star 2021 ~67% ~64% Intrapreneurial spirit “Driving business success by positioning our people at the center of all we do.” Benchmark employee shareholdership Continuous skills and comp
Slide 45: HENSOLDT is one of the most attractive employers in the defence industry
HENSOLDT CMD 2024 HENSOLDT is one of the most attractive employers in the defence industry Continuous skills & competences development For a productive, innovative diverse workforce 10% 2024 2023 112k 65% 25% 4.3/90% 2022 79 114 142 Training hours(1) Kununu score(3) Mand atory Cross-Functional Funct
Slide 46: Case study: from individual to collective hiring
HENSOLDT CMD 2024 Case study: from individual to collective hiring Greater agility Create a recruitment platform Offer contracts to engage with relevant to get maximum Identify industrial Check if transfer teams/employees collective move targets/partners of skilled teams avoiding TUPE employing the
Slide 47: Our sustainability strategy: a holistic approach
HENSOLDT CMD 2024 Our sustainability strategy: a holistic approach Reduce our Societal Compliance Innovation Diversity climate impact responsibility 2035: carbon neutrality1 Actively contributes Strict anti-corruption Promote green 2023: 23% women in to the protection policy and Code technologies1 w
Slide 48: Use-case: sustainability links to executive pay
HENSOLDT CMD 2024 Use-case: sustainability links to executive pay PMI ESG 15% Diversity 15% 30% Relative TSR LTI (2024-27) Climate Impact 15% Renewable Energies CO2 Emissions Reduction 25% Order Intake Source: HENSOLDT AG 48 This document a nd its content is the property of HENSOLDT AG. It shall not
Slide 49: Industry leading sustainability ratings across providers
HENSOLDT CMD 2024 Industry leading sustainability ratings across providers We continuously strive to demonstrate our excellence and improve our performance In 2024, HENSOLDT AG ranked: 1st in Aerospace & Defence industry "AA" (leader) rating in 2024 Among top 15% globally across all sectors NEGLIGIB
Slide 50: Financials
HENSOLDT Financials Christian Ladurner, CFO This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the own er’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 51: 9M 2024 results on track to deliver on our 2024 guidance
HENSOLDT CMD 2024 9M 2024 results on track to deliver on our 2024 guidance Order intake in line with expectations Robust order backlog Strong book-to-bill ratio € 1,856m € 6,513m 1.3x Excellent revenue performance Strong adjusted EBITDA(1) result Solid adjusted EBITDA(1) margin (before p ass-through
Slide 52: Short term guidance confirmed – medium term margin target raised
HENSOLDT CMD 2024 Short term guidance confirmed – medium term margin target raised 2024 guidance 2025 guidance Medium term target ~1.2x Orders to grow significantly faster Orders to grow significantly faster Book-to-bill ratio than revenue than revenue ~€2.3bn Low double-digit growth 10% Revenue gro
Slide 53: Order backlog 2024E provides excellent visibility
HENSOLDT CMD 2024 Order backlog 2024E provides excellent visibility Revenue coverage 2025E – 2027E Firm order backlog Recurring short cycle and aftermarket business (1) New orders to be executed in the respective year(2) 2025E 2026E 2027E ~86% revenue for 2025E covered(3) Source: HENSOLDT AG. (1) E.
Slide 54: ESG revenue and cost synergies ensure strong value creation
HENSOLDT CMD 2024 ESG revenue and cost synergies ensure strong value creation On track and realized by 2028 Confirmed Significant potential Identified ~ €4m(1) to be achieved by FY24 Realization starting 2025 Cost synergies Revenue synergies EBITDA impact of €19m materializing EBITDA impact of €19m
Slide 55: Clear trend towards a more international business profile
HENSOLDT CMD 2024 Clear trend towards a more international business profile Revenue exposure from Germany will be reduced from ~60% 2024E to ~55% 2027E 2024E order backlog Order intake 2027E order backlog Rest of World Rest of Europe Germany 2025E 14% 29% 56% 2026E 22% 27% 51% 8% 2027E 26% 21% 53% 1
Slide 56: Structural growth in both segments
HENSOLDT CMD 2024 Structural growth in both segments Doubling revenues from 2022A to 2027E Revenue development 2022A – 2027E Sensors segment - pass-through Sensors segment - ESG Sensors segment - Core Optronics segment 2022A 2023A 2024E 2025E 2026E 2027E • Both, Sensors and Optronics segments contri
Slide 57: R&D investment constantly growing
HENSOLDT CMD 2024 R&D investment constantly growing Self-funded R&D constant while customer-funded R&D increases from 2020A ~8% to 2025E ~15% in m€ in % 700 Self-funded 600 at average ~5% of revenue 500 400 300 Customer-funded at average ~15% of revenue 200 ~15% 100 ~8% 0 2020A 2021A 2022A 2023A 202
Slide 58: Capital allocation framework
HENSOLDT CMD 2024 Capital allocation framework Fund our transformation Dividends M&A and growth Supporting growth profile by preserving a conservative financial debt profile 58 This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny third party without the
Slide 59: Key take aways
HENSOLDT CMD 2024 Key take aways Excellent visibility Sustainable, multi-vector Highly profitable and Sustained technological long-term growth cash generating growth leadership through innovation 59 This document a nd its content is the property of HENSOLDT AG. It shall not be communicated to a ny t
Slide 60: Disclaimer Forward Looking Statement
HENSOLDT CMD 2024 Disclaimer Forward Looking Statement This presentation and the information contained herein are for information purposes only and should not be treated as This presentation may contain forward-looking statements about HENSOLDT and its businesses, including statements investment adv