Rheinmetall Ag · XETR:RHM
Rheinmetall — H1 2012 Earnings Presentation
34 slides from Rheinmetall's earnings presentation, Aug 10, 2012
Slide 1: International Technology Group for Defence and Automotive
H1 2012 I Düsseldorf, 10 August 2012 International Technology Group for Defence and Automotive © Rheinmetall 2012
Slide 2: Rheinmetall Group Key messages
Rheinmetall Group Rheinmetall Group Key messages Sales increased by 9% Solid earnings: EBIT on previous year’s level, EBT and EPS above Operating cash flow € 65 million higher than in H1 2011 Confirming outlook as of March 2012, assuming a stable economic environment in the Eurozone and unchanged gl
Slide 3: Rheinmetall Defence
RHEINMETALL DEFENCE © Rheinmetall 2012
Slide 4: Rheinmetall Defence Key messages
Rheinmetall Defence Rheinmetall Defence Key messages Order intake remarkably improved by 33%, mainly caused by four medium- sized orders indicated in the Q1 call Sales grew by 12%, as logistic vehicles are consolidated now EBIT of € 56 million below previous year’s H1 (€ 62 million) Operating free c
Slide 5: Defence sales and earnings
Rheinmetall Defence Defence sales and earnings Strong order intake Defence H1 H1 Δ H1 € million 2011 2012 (2012/2011) Order intake 853 1,138 + 285 + 33 % Order backlog 4,740 4,589 - 151 -3% Sales 904 1,010 + 106 + 12 % EBITDA 100 99 -1 -1% EBIT 62 56 -6 - 10 % EBIT margin (%) 6.9 5.5 - 1.4 pp - 20 %
Slide 6: Defence cash flow
Rheinmetall Defence Defence cash flow Operating cash flow reflects success of working capital program Defence H1 H1 Δ H1 € million 2011 2012 (2012/2011) Net income 44 45 +1 Amortization / depreciation 38 43 +5 Change in pension accruals -3 -5 -2 Cash flow 79 83 +4 Changes in working capital and othe
Slide 7: Increasing order intake
Rheinmetall Defence Increasing order intake Considerable improvement compared to previous year Order intake H1 2011 vs. H1 2012 € million Significant orders Q2 2012 +33% Two Air Defence orders from an Asian and from a 1,138 Middle East country (total volume: € 133 million) Prolongation of the Heron
Slide 8: Changes of the Puma order volume
Rheinmetall Defence Rheinmetall Defence Changes of the Puma order volume Order volume* € million 1,261 1,232 +44 -148 +75 Original order Reduction Contract Additional Current total volume 2009 per 12/31/2011 amendments equipment order volume ordered * Rheinmetall share of total order volume H1 2012
Slide 9: Explanation for the development of sales and earnings (Q1)
Rheinmetall Defence Rheinmetall Defence Explanation for the development of sales and earnings (Q1) Sales bridge Q1 2011 to Q1 2012 € million -40 471 +70 0 441 0 EBIT bridge Q1 2011 to Q1 2012 € million 38 Margin: -11 33% -4 -13 -6 4 Q1 2011 One-off gain Logistic vehicles Volume effect Product/projec
Slide 10: Explanation for the development of sales and earnings (Q2)
Rheinmetall Defence Rheinmetall Defence Explanation for the development of sales and earnings (Q2) Sales bridge Q2 2011 to Q2 2012 € million 539 +10 0 +66 463 0 EBIT bridge Q2 2011 to Q2 2012 € million 52 -5 +3 -1 +31 24 Q2 2011 One-off gain Logistic vehicles Volume effect Product/project Q2 2012 Ca
Slide 11: Explanation for the development of sales and earnings (H1)
Rheinmetall Defence Rheinmetall Defence Explanation for the development of sales and earnings (H1) Sales bridge H1 2011 to H1 2012 € million -30 1,010 0 +136 904 0 EBIT bridge H1 2011 to H1 2012 € million +20 -9 62 -10 -7 56 H1 2011 One-off gains Logistic vehicles Volume effect Product/project H1 20
Slide 12: Joint Venture
Rheinmetall Defence Airborne systems Joint venture with Cassidian closed Rheinmetall EADS Cassidian 49% Joint 51% Venture Closing of the joint venture per 30 June 2012 Expected figures for H2 2012 that will be deconsolidated: sales € 34 million, EBIT € 4 million H1 2012 © Rheinmetall 2012 12
Slide 13: Outlook 2012: Slightly below previous year
Rheinmetall Defence Outlook 2012: “Slightly below previous year” Although under pressure, guidance is achievable Defence 2011 2012 € million Sales 2,141 Guidance: 2,500e Logistic vehicles - - 400e Sales net 2,141 2,100e Sales H1 net 904 (1,010 – 136 =) 874 Sales H2 net 1,237 1,226e EBIT H1 (before o
Slide 14: Rheinmetall Automotive
RHEINMETALL AUTOMOTIVE © Rheinmetall 2012
Slide 15: Rheinmetall Automotive Key messages
Rheinmetall Automotive Rheinmetall Automotive Key messages Again increasing results in H1 2012: • Sales raised by 6% • EBIT grew by 12% Counting on the right trends: sales continued to grow even though European markets are shrinking Continuing growth in China and India H1 2012 © Rheinmetall 2012 15
Slide 16: Automotive sales and earnings
Rheinmetall Automotive Automotive sales and earnings Sales, earnings and profitability at another record level Automotive H1 H1 Δ H1 € million 2011 2012 (2012/2011) Sales 1,171 1,243 + 72 +6% EBITDA 127 138 + 11 +9% EBIT 76 85 +9 + 12 % EBIT margin (%) 6.5 6.8 + 0.3 pp +5% EBT 68 77 +9 + 13 % Capex
Slide 17: Automotive cash flow
Rheinmetall Automotive Automotive cash flow Slight increase of working capital due to growth Automotive H1 H1 Δ H1 € million 2011 2012 (2012/2011) Net income 50 57 +7 Amortization / depreciation 51 53 +2 Change in pension accruals -2 -2 +0 Cash flow 99 108 +9 Changes in working capital and other ite
Slide 18: Product portfolio corresponding to global market trends
Rheinmetall Automotive Product portfolio corresponding to global market trends Main reason for outperforming the Western European market Growth rate (quarter compared to previous year’s quarter) in % 60 World LV production Triad LV production Western Europe LV production 40 20 Sales Automotive 0 -20
Slide 19: Outperformance of the European market since the mid of 2010
Rheinmetall Automotive Outperformance of the European market since the mid of 2010 Confirming the strategic focus of the product portfolio Difference in quarterly growth rate of LV production Western Europe and Sales Automotive +26.1pp +24.8pp +20.5pp +21.1pp +15.5pp +13.5pp +11.9pp +10.9pp +10.2pp
Slide 20: Headcount
Rheinmetall Automotive Headcount Cost-conscious build-up of capacities particularly in emerging countries Employees Germany Employees abroad by high cost and low cost countries (capacities; per end of period) (capacities; per end of period; excluding China JVs) % of total employees % of total employ
Slide 21: Dynamic markets: China
Rheinmetall Automotive Dynamic markets: China Continuing growth in sales and earnings Sales Joint Ventures* € million EBIT Joint Ventures* € million +37% 196 143 +51% 15 10 H1 2011 H1 2012 H1 2011 H1 2012 Sales WFOEs** € million LV production China million units +8% +41% 5 4 7.693 8.301 H1 2011 H1 2
Slide 22: Dynamic markets: India
Rheinmetall Automotive Dynamic markets: India Increasing business by strong organic growth and strategic acquisition Sales KSPG India € million Key facts KSPG India Integration of Kirloskar Bearings – included in +172% the figures since Q4 2011 – completed 19 Employees: 615 (as of 06/30/2012) Kirlos
Slide 23: Group
GROUP © Rheinmetall 2012
Slide 24: Group sales and earnings (1)
Rheinmetall Group Group sales and earnings (1) Strong top-line growth, slight improvement of EBT Group H1 H1 Δ H1 € million 2011 2012 (2012/2011) Sales 2,075 2,253 + 178 +9% EBITDA 216 223 +7 +3% EBITDA margin (%) 10.4 9.9 - 0.5 pp -5% Amortization / depreciation - 89 - 96 -7 +8% EBIT 127 127 +0 +0%
Slide 25: Group sales and earnings (2)
Rheinmetall Group Group sales and earnings (2) Considerable increase of net income and EPS Group H1 H1 Δ H1 € million 2011 2012 (2012/2011) EBT 98 100 +2 +2% Taxes - 23 - 18 +5 + 22 % Tax rate (%) 23 18 - 5 pp - 22 % Group net income 75 82 +7 +9% Minority interests -2 +2 +4 > 100 % Group earnings (a
Slide 26: Group cash flow
Rheinmetall Group Group cash flow Benefitting from strongly improved working capital in Defence Group H1 H1 Δ H1 € million 2011 2012 (2012/2011) Group net income 75 82 +7 Amortization / depreciation 89 96 +7 Change in pension accruals -4 -6 -2 Cash flow 160 172 + 12 Changes in working capital and ot
Slide 27: Rheinmetall Group Outlook 2012
Rheinmetall Group Rheinmetall Group Outlook 2012 Sales EBIT € billion € million 2012e 2011 2012e 2011 on previous Group approximately 4.9 4.5 year’s level 354 slightly below Defence approximately 2.5 2.1 previous year 223 slightly above Automotive slightly above 2.4 2.3 previous year 151 We confirm
Slide 28: Appendix
APPENDIX © Rheinmetall 2012
Slide 29: New divisional structure in Defence
New divisional structure in Defence Sales (FY 2011)*: € 2.2 billion Combat Systems Electronic Solutions Wheeled Vehicles € 1.1 billion* € 0.8 billion* € 0.3 billion* Combat Platforms Air Defence Systems Logistic Vehicles** Infantry Defence Electronics Tactical Vehicles Protection Systems Electro-opt
Slide 30: Key figures Defence by divisions
Key figures Defence by divisions Combat Systems Electronic Solutions Wheeled Vehicles +12% +1% -13% 1,010 +143% Sales 904 471 477 372 324 265 109 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 -10% -49% +14% 62 56 EBIT 43 41 +53% 22 36 -17 -8 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011
Slide 31: New divisional structure in Automotive
New divisional structure in Automotive Sales (FY 2011)*: € 2.4 billion Hardparts Mechatronics Motor Service € 1.1 billion* € 1.0 billion* € 0.3 billion* Pistons Pierburg International Aluminum Technology Pierburg Pump Technology Domestic Plain Bearings Large Bore Pistons * Inter-company sales not el
Slide 32: Key figures Automotive by divisions
Key figures Automotive by divisions Hardparts Mechatronics Motor Service +6% +7% +7% 1,171 1,243 +3% Sales 541 578 530 565 133 137 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 +12% +30% +4% 85 -14% EBIT 76 39 37 39 30 14 12 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H
Slide 33: Quarterly development of the divisions
Quarterly development of the divisions Sales EBIT EBIT margin Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2011 2011 2011 2011 2012 2012 2011 2011 2011 2011 2012 2012 2011 2011 2011 2011 2012 2012 Combat Systems 221 250 247 479 205 272 21* 22 16 87 0 22 9.5 8.8 6.5 18.2 0.0 8.1 Electronic S
Slide 34: 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