Hensoldt AG · XETR:HAG
Hensoldt — FY2023 Earnings Presentation
44 slides from Hensoldt's earnings presentation, Feb 23, 2024
Slide 1: FY 2023 Preliminary Results – Analyst & Investor Presentation
HENSOLDT FY 2023 Preliminary Results – Analyst & Investor Presentation Taufkirchen, 23rd of February 2024 Thomas Müller, CEO Oliver Dörre, designated CEO Christian Ladurner, CFO This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the
Slide 2: Disclaimer Forward Looking Statement
HENSOLDT – FY 2023 preliminary results 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 stat
Slide 3: We have fully delivered on our FY 2023 guidance
HENSOLDT – FY 2023 preliminary results We have fully delivered on our FY 2023 guidance 2023 preliminary Change vs 2022 vs guidance Book-to-bill ratio(1) 1.1x -0.1x €1,847m +16% in core Revenue revenue Adjusted EBITDA(2) €329m +€37m Adjusted EBITDA margin(3) 19.9% -0.5%-point Adjusted pre-tax unlever
Slide 4: Key Strategic Achievements 2023
HENSOLDT – FY 2023 preliminary results Key Strategic Achievements 2023 Visit of chancellor Scholz Admission to MDAX Oliver Dörre nominated Signing of ESG acquisition to our Ulm site in January in March to succeed Thomas Müller in December 2023 as CEO 4 This document and its content is the property o
Slide 5: Key orders received in 2023 – Sensors segment
HENSOLDT – FY 2023 preliminary results Key orders received in 2023 – Sensors segment TRML-4D radars NNbS EF MK1 re-baselining FCAS TRS-4D radars TRML-4D radars for Ukraine, Radars for short and very short Additional features Demonstrator Phase 1B and TRS-4D radars for Germany and Baltic states range
Slide 6: Key orders received in 2023 – Optronics segment
HENSOLDT – FY 2023 preliminary results Key orders received in 2023 – Optronics segment Puma IFV Leopard 2 MBT Final Focus Metrology Ula class submarine Sights and self-protection Leopard 2 Optronics Next generation of high Periscopes and for Puma 2nd batch for Norway, Sweden and precision measuremen
Slide 7: German defence spending consists of three components
HENSOLDT – FY 2023 preliminary results German defence spending consists of three components Regular Defence Budget Special Fund Military support for Ukraine ~52 ~20 ~8 EUR billion EUR billion EUR billion in 2024 in 2024 in 2024 German defence spending at historic high with more than 2% of GDP in 202
Slide 8: Domestic German position strong and broad
HENSOLDT – FY 2023 preliminary results Domestic German position strong and broad Service Programs 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 EF Mk1 + Re-baselining Rebaselining Ph 1 Rebaselining Ph 2 To 2035 -> Twinvis Batch 2 2028+ -> LuWES SOJ Development Procurement 2030+ -> F-351 (TO
Slide 9: International program landscape
HENSOLDT – FY 2023 preliminary results International program landscape Service Programs 2019 2020 2021 2022 2023 2024 2025 2026 2027 Eurofighter Halcon Spain Airborne Helicopter Self-Protection India Airborne Self-Protection Ukraine Airborne Self-Protection APAC Air Air Defense European Sky Shield
Slide 10: Top orders expected in 2024
HENSOLDT – FY 2023 preliminary results Top orders expected in 2024 Air defence radars Eurofighter Armoured vehicles Airborne self-protection TRML-4D and Spexer radars Radars and self-protection Optronics and self-protection Self-protection systems for within ESSI and beyond systems for Eurofighter s
Slide 11: Financials
HENSOLDT Financials This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. 2022. All rights reserved.
Slide 12: FY 2023 – excellent performance in top line
HENSOLDT – FY 2023 preliminary results FY 2023 – excellent performance in top line in €m Order intake in line with guidance Significant increase of core revenue Order backlog further increased Core Pass-through 1,847 1,707 191 275 2,087 5,530 1,993 +16% 5,366 1,655 1,432 FY 2022 FY 2023 prelim FY 20
Slide 13: FY 2023 – strong growth in bottom line
HENSOLDT – FY 2023 preliminary results FY 2023 – strong growth in bottom line in €m Profitability outperforms guidance Cash conversion exceeds guidance Core margin excluding Reported margin pass-through revenue +13% +18% +10% 329 246 19.9% 14.8% 292 224 259 17.8% 15.7% 13.3% 20.4% 219 17.1% 13.1% FY
Slide 14: FY 2023 – Sensors segment
HENSOLDT – FY 2023 preliminary results FY 2023 – Sensors segment in €m Strong order intake Significant increase of core revenue Excellent margin performance Core margin excluding Reported margin pass-through revenue Core Pass-through 1,546 1,404 191 275 1,675 1,587 306 +20% 233 1,355 22.6% 1,129 20.
Slide 15: FY 2023 – Optronics segment
HENSOLDT – FY 2023 preliminary results FY 2023 – Optronics segment in €m Significant increase of order intake Revenue follows OI development Investments in digitalization and growth 510 310 309 333 59 24 FY 2022 FY 2023 prelim FY 2022 FY 2023 prelim FY 2022 FY 2023 prelim Order intake(1) Revenue Adj
Slide 16: Deleveraging from FY 2021 to FY 2023
HENSOLDT – FY 2023 preliminary results Deleveraging from FY 2021 to FY 2023 in €m Net debt development 1.6x 1.2x 0.2x Net leverage(1) Net leverage w/o 0.9x capital raise Deleveraging on track Net debt w/o 302 capital raise Continuous improvement of net leverage Strong cash flow generation in Q4/2023
Slide 17: Dividend proposal 2023
HENSOLDT – FY 2023 preliminary results Dividend proposal 2023 €0.40 Guidance outlines Due to the excellent business a dividend Adjusted net income of development, the management board of up to 30% - 40% €119m preliminary intends to propose to the supervisory of adjusted net income 2023 board and the
Slide 18: 2024 preliminary guidance specified – before ESG acquisition
HENSOLDT – FY 2023 preliminary results 2024 preliminary guidance specified – before ESG acquisition Switch of guidance KPI from Adjusted pre-tax unlevered FCF to Adjusted FCF but financial performance unchanged (1) Average share of pass-through revenue of total revenue was ~9% between 2020A and 2023
Slide 19: Updated preliminary medium term guidance – before ESG acquisition
HENSOLDT – FY 2023 preliminary results Updated preliminary medium term guidance – before ESG acquisition Previous medium term target New medium term target Orders to grow significantly faster than Orders to grow significantly faster Order intake revenue than revenue Revenue growth(1) 10% 10%(5) aver
Slide 20: Re-cap ESG
HENSOLDT – FY 2023 preliminary results Re-cap ESG Strong growth and cash flow profile (IFRS, €m 2023E) Revenue ~€330m Low double-digit annual growth EBITDA ~14% margin <1.5% maintenance capex(3) More balanced revenue profile than HENSOLDT organic Seasonal profile 2024 Cash profile heavily Q1 wei
Slide 21: ESG acquisition - Compelling strategic rationale for combination
HENSOLDT – FY 2023 preliminary results ESG acquisition - Compelling strategic rationale for combination Attractive business… …Even stronger together State-of-the-art innovation, software engineering • Highly complementary expansion of integrated sensor solutions offering and system integration capab
Slide 22: Next steps
HENSOLDT – FY 2023 preliminary results Next steps Signing ESG Closing ESG acquisition & acquisition update guidance incl. ESG Dec 5th 2023 Closing likely to happen by end of Q1 2024(1) Regulatory approvals / waiting periods Preparation PMI Start PMI (1) All closing conditions under the ESG share pur
Slide 23: Capital allocation
HENSOLDT – FY 2023 preliminary results Capital allocation Fund our growth Dividends M&A While preserving a conservative financial debt profile 23 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyr
Slide 24: Key financial takeaways
HENSOLDT – FY 2023 preliminary results Key financial takeaways • Strong order intake in all divisions 2024 revenue backed by Visibility • High revenue coverage from firm order backlog 85% order backlog (1) Core revenue growth Top-line growth • Again, excellent conversion into revenue 2022 – 2023 pre
Slide 25: Introducing Oliver Dörre
HENSOLDT – FY 2023 preliminary results Introducing Oliver Dörre 25 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 26: What we will focus on in 2024 to secure the growth and go beyond
HENSOLDT – FY 2023 preliminary results What we will focus on in 2024 to secure the growth and go beyond Execution Internationalization Digitalization and Delivery 26 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s writ
Slide 27: Thank you!
HENSOLDT – FY 2023 preliminary results Thank you! 27 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. All rights reserved.
Slide 28: Q&A session
HENSOLDT Q&A session This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. 2022. All rights reserved.
Slide 29: Financial Section
HENSOLDT Financial Section This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. 2022. All rights reserved.
Slide 30: Consolidated Income Statement
HENSOLDT – FY 2023 preliminary results Consolidated Income Statement Fiscal year in € million 2023 (preliminary) 2022 Revenue 1,847 1,707 Cost of sales -1,431 -1,314 Gross profit 416 393 Selling and distribution expenses -111 -107 General administrative expenses -118 -92 Research and development cos
Slide 31: Consolidated Statement of Financial Position – Assets
HENSOLDT – FY 2023 preliminary results Consolidated Statement of Financial Position – Assets 31 Dec. in € million 2023 (preliminary) 2022 Non-current assets 1,405 1,335 Goodwill 658 658 Intangible assets 380 384 Property, plant and equipment 140 121 Right-of-use assets 189 140 Investments and other
Slide 32: Consolidated Statement of Financial Position – Equity & Liabilities
HENSOLDT – FY 2023 preliminary results Consolidated Statement of Financial Position – Equity & Liabilities 31 Dec. in € million 2023 (preliminary) 2022 Share capital 116 105 Capital reserve and other reserves 730 554 Retained earnings -37 -55 Equity held by shareholders of HENSOLDT AG 808 604 Non-co
Slide 33: Consolidated Statement of Cash Flows (1/2)
HENSOLDT – FY 2023 preliminary results Consolidated Statement of Cash Flows (1/2) Fiscal year in € million 2023 (preliminary) 2022 Group result 56 80 Depreciation, amortisation and impairments of non current assets 120 103 Financial expenses (net) 41 27 Change in Provisions 45 -22 Inventories -128 -
Slide 34: Consolidated Statement of Cash Flows (2/2)
HENSOLDT – FY 2023 preliminary results Consolidated Statement of Cash Flows (2/2) Fiscal year in € million 2023 (preliminary) 2022 Cash flow from operating activities 267 244 Cash flow from investing activities -122 -101 Proceeds/repayment of financing liabilities(1) 10 -169 Payment of lease liabili
Slide 35: Reconciliation to group figures
HENSOLDT – FY 2023 preliminary results Reconciliation to group figures Fiscal year in € million 2023 (preliminary) 2022 Order intake 2,087 1,993 Sensors 1,587 1,675 Optronics 510 333 Elimination/Transversal/Others -9 -15 in € million Revenue 1,847 1,707 Sensors 1,546 1,404 Optronics 309 310 Eliminat
Slide 36: Overview of EBITDA and EBIT adjustments
HENSOLDT – FY 2023 preliminary results Overview of EBITDA and EBIT adjustments EBITDA adjustments Fiscal year EBIT adjustments Fiscal year in € million 2023 2022 in € million 2023 2022 (preliminary) (preliminary) EBIT 162 166 EBIT 162 166 (+) Depreciation 48 44 (+) Effect on earnings from purchase p
Slide 37: Reconciliation of reported to adjusted pre-tax unlevered FCF
HENSOLDT – FY 2023 preliminary results Reconciliation of reported to adjusted pre-tax unlevered FCF Fiscal year in € million 2023 (preliminary) 2022 Cash flow from operating activities 267 244 Cash flow from investing activities -122 -101 Free cash flow 145 143 (+) Transaction costs 4 19 (+) OneSAPn
Slide 38: Q4 Financial Overview HENSOLDT Group
HENSOLDT – FY 2023 preliminary results Q4 Financial Overview HENSOLDT Group Fourth quarter in € million 2023 (preliminary) 2022 Order intake 806 616 Book-to-bill ratio(1) 1.1x 1.0x Revenue 711 607 Adjusted EBIT(2) 151 149 Adjusted EBITDA(3) 178 166 Adjusted EBITDA margin 25.1 % 27.3 % Adjusted pre-t
Slide 39: Reconciliation of reported to adjusted net income
HENSOLDT – FY 2023 preliminary results Reconciliation of reported to adjusted net income Fiscal year in € million 2023 (preliminary) 2022 Group result 56 80 (+) Effect on earnings from purchase price allocations 37 36 (+) Transaction costs 10 0 (+) OneSAPnow related special items 12 1 (+) Other spec
Slide 40: Back-up
HENSOLDT Back-up This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. 2022. All rights reserved.
Slide 41: EBIT to net income bridge
HENSOLDT – FY 2023 preliminary results EBIT to net income bridge Solely valuation effect Hedging has saved almost 2 million Euro in cash interest up to now Reported EBIT Interest income Interest expense Interest on pensions Interest on Valuation interest Other effects Income tax Reported net inc
Slide 42: Upcoming IR events
HENSOLDT – FY 2023 preliminary results Upcoming IR events* FY 2023 FY 2023 3M 2024 AGM H1 2024 9M 2024 preliminary audited Feb 23rd Mar 22nd May 7th May 17th Jul 26th Nov 6th 2024 2024 2024 2024 2024 2024 42 This document and its content is the property of HENSOLDT AG. It shall not be communicated t
Slide 43: IR Contacts
HENSOLDT – FY 2023 preliminary results IR Contacts Contact HENSOLDT share Reports Contact: Type of share: Financial Reports: Veronika Endres Bearer shares https://investors.hensoldt.net Tim Schmid Stock Exchange: Annual Report: Phone: Frankfurt Stock Exchange https://annualreport.hensold
Slide 44: This document and its content is the property of HENSOLDT AG. It shall not
This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT AG 2024. 2022. All rights reserved.