Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Presentation (November 2021)

78 slides from Rheinmetall's investor presentation, November 2021

Slide 1: Rheinmetall Investor Presentation November 2021
PASSION FOR TECHNOLOGY Rheinmetall Investor Presentation November 2021
Slide 2: Agenda
Rheinmetall - Investor Presentation Agenda Rheinmetall at a glance Market & Drivers Five divisions under one roof Financials Outlook 2021 Responsibility @ Rheinmetall Appendix © Rheinmetall AG I November 2021 2
Slide 3: Rheinmetall at a glance: Selected key business highlights
Rheinmetall - Investor Presentation Rheinmetall at a glance Selected key business highlights Sales by division Result by division In €m In €m 10% -6% 22% 7% -10% Weapon and Ammunition Weapon and Ammunition 8% 41% Electronic Solutions Electronic Solutions 22% 5,406 Vehicle Systems 452 Vehicle Systems
Slide 4: Historic financial development
Rheinmetall - Investor Presentation Rheinmetall at a glance Historic financial development Sales, operating result and operating margin Operating FCF and operating FCF to Sales In €m Op. Margin Sales Op. Result In €m / in % oFCF oFCF/Sales 6.148 6.255 5.896 5.875 4,7 5,0 5.602 3,7 Historic 5.183 2,9
Slide 5: Management sets clear strategic objectives
Rheinmetall - Investor Presentation Rheinmetall at a glance Management sets clear strategic objectives 1 Reduce Automotive exposure 2 Minimum profitability level requirement 3 Continuous portfolio management © Rheinmetall AG I November 2021 5
Slide 6: The new corporate structure - Five divisions under one roof
Rheinmetall - Investor Presentation Rheinmetall at a glance The new corporate structure - Five divisions under one roof Rheinmetall Group Holding Weapon and Electronic Vehicle Sensors and Materials Ammunition Solutions Systems Actuators and Trade  Mid & Large  Integrated  Tactical Vehicles  Pump
Slide 7: Strategy as clear commitment to our technological leadership
Rheinmetall - Investor Presentation Rheinmetall at a glance Strategy as clear commitment to our technological leadership ONE Rheinmetall Passion for technology Re-organization to Leverage our core Focus on growth better fit our needs technological strengths business areas  Divest non-core business
Slide 8: Sustainability is a central component of our corporate strategy
Rheinmetall - Investor Presentation Rheinmetall at a glance Sustainability is a central component of our corporate strategy FRAME-WORKS & INITIATIVES CSR-DIA* GRI UN GC CDP SBTi TCFD SASB Since 2017 Since 2017 Joined in 2021 Applied in 2021 Commitment Q4 2021 2022 2022 ACTION ENVIRONMENT SOCIAL GOVE
Slide 9: Strong focus on defence – combustion engine share below 20%
Rheinmetall - Investor Presentation Rheinmetall at a glance Strong focus on defence – combustion engine share below 20% Sales 2020 Target sales 2025 approx. 63% approx. 37% approx. 70% approx. 30% DEFENCE COMBUSTION DEFENCE COMBUSTION approx. 63% ENGINE approx. 28% approx. 70% ENGINE approx. 15-20%
Slide 10: New strategy supports mid-term growth path
Rheinmetall - Investor Presentation Rheinmetall at a glance New strategy supports mid-term growth path Financial Targets 2025 ATTRACTIVE GROWTH PROFILE Market drivers Sales target 2025  Tightening and additional emission regulation  Proliferation of regulation to new regions ~ 8.5 € bn HIGHER PROF
Slide 12: Participating in the defence super cycle
Rheinmetall - Investor Presentation Markets & Drivers Participating in the defence super cycle Demand for next generation 1990 Upscaling of systems forces and Downscaling Inflection modernization Return to treaty of forces and point and territorial armament NATO Out of area defence missions 2% targe
Slide 13: Defence budgets demonstrate robustness despite Covid
Rheinmetall - Investor Presentation Markets & Drivers 2021 Defence budgets demonstrate robustness despite Covid 2022 2023 Germany Australia UK Hungary USA Stable Growing Growing Growing Growing Threat scenario  Russia and China defence Tender  Large vehicle programs with temporary persists spendin
Slide 14: Successful internationalization provides diverse sources of growth
Rheinmetall - Investor Presentation Markets & Drivers - Home Markets Successful internationalization provides diverse sources of growth Our home markets Germany Australia United Central Kingdom Europe  Largest customer  Established „home  JV with BAE serves  Modernization to  Budget increase: m
Slide 15: NATO commitment key driver for German demand
Rheinmetall - Investor Presentation German defence NATO commitment key driver for German demand Lead role in Very High Readiness Joint Task Force ( VJTF) Bundeswehr ‘19 ‘23 ‘27 ‘31 ’32+ 2016 White paper 04/2018 VJTF´23 1x Division 3x Division 3x Division Concept VJTF´19 (1 Brigade) (3x Brigade) (8x
Slide 16: German budget expected to rise to 50€bn
Rheinmetall - Investor Presentation Markets & Drivers - German defence budget German budget expected to rise to 50€bn with increased investive share in €bn Stable Outlook! +7% +45% 50,3 45,6 46,9 47,3 47,2 46,7 Drivers for budget increase: 43,2  More equipment (100% equipment level) 38,5  More fin
Slide 17: Targeting new businesses and increasing our budget share up to 35%
Rheinmetall - Investor Presentation Markets & Drivers - German defence budget Targeting new businesses and increasing our budget share up to 35% Investive Research & Development  Ammunition yearly requirement & stockpiling  Future Combat Air System (FCAS)  Puma 2. Lot & Upgrade 1. Lot  Main Grou
Slide 18: Soldier system and Puma VJTF drive digitization of German landforces
Rheinmetall - Investor Presentation Markets & Drivers - German defence budget Soldier system and Puma VJTF drive digitization of German landforces Core of the digitization of the Minimum additional demand German land forces VJTF Contract for 41 PUMA & IdZ: Minimum of 143 First digitized Land Platfor
Slide 19: Successful establishment of a new home market: Australia
Rheinmetall - Investor Presentation Markets & Drivers - Home Markets: Australia Successful establishment of a new “home market” 2020 MilVehCoE 2018 Military Vehicle Land 17: 155mm Munition Center of Excellence Framework Contract:  EUR 60m p.a.  2017 2018-2023  Supashock 49% Rheinmetall  „Brain-T
Slide 20: Creating a new home market in the UK
Rheinmetall - Investor Presentation Markets & Drivers - Home Markets: UK - Joint Venture with BAE Creating a new “home market” in the UK LEGACY BUSINESS OFFERS POTENTIAL  BAE UK business  Armored engineering vehicles and bridge-laying tanks  AS 90 self-propelled artillery system  Force protectio
Slide 21: Competitive vehicles portfolio offers huge order potential
Rheinmetall - Investor Presentation Markets & Drivers: Vehicles Systems Competitive vehicles portfolio offers huge order potential Infantry Main Wheeled Trucks fighting vehicles battle tanks vehicles  Puma  Leopard  4x4 HU JV  HX-Family  Lynx  MGCS  6x6 New Fox  Future trucks  8x8 Boxer ~€1
Slide 22: Hungary is a catalyst for future success of our Lynx
Rheinmetall - Investor Presentation Markets & Drivers: Vehicles Systems Hungary is a catalyst for future success of our Lynx  Australia Southern Europe Combined potential: USA US Army Bradley replacement ~4000 vehicles ~ € 40 bn Czech Land 400 Phase III ~ € 10 bn Tender: 2021-2023 ~450 vehicles Pot
Slide 23: Weapon and Ammunition: Mid-term growth based on three pillars
Rheinmetall - Investor Presentation Markets & Drivers: Weapon and Ammunition Mid-term growth based on three pillars German restocking New platforms creating International Growth additional demand NATO target:  Inventory level of 30 days for ammunition 1)  Australian Boxer 2)  German inventories e
Slide 24: Electronic Solutions: Active in very dynamic markets
Rheinmetall - Investor Presentation Markets & Drivers: Electronic Solutions Active in very dynamic markets Digitization of Turret Digitization Air Defence Simulation and forces Systems Training  D-LBO  Challenger  Effector efficient  Growing demand  Helping to build the upgrade air defence in d
Slide 25: Platform sales are just the tip of the iceberg
Rheinmetall - Investor Presentation Markets & Drivers: Product life cycle potential Platform sales are just the tip of the iceberg – success creates opportunities 1X SALES OF PLATFORM 2X LIFECYCLE SPENDINGS Service sales in €m Rheinmetall creates additional business +10% opportunities over the entir
Slide 26: System house for land based operations
Rheinmetall - Investor Presentation Markets & Drivers: Product life cycle potential System house for land based operations and integrating components to systems VJTF System-of-Systems Systems System house Armored Infantryman Puma Gladius Platforms Laser Key Components Lance turret Lance turret Prote
Slide 27: Growth in all divisions with Vehicle Systems as main driver
Rheinmetall - Investor Presentation Markets & Drivers: Mid-term growth development Growth in all divisions with Vehicle Systems as main driver 2020 Sales 2025 Targeted Sales ~€ 5.5 bn 27 % ~€ 3.7 bn Weapon & Ammunition 30 % 22 % Electronic Solutions 23 % Vehicle Systems 51 % 47 % % share based on un
Slide 28: Strong underlying growth drivers create opportunities
Rheinmetall - Investor Presentation Markets & Drivers: Market trends Strong underlying growth drivers create opportunities New Applications E 3+ Efficiency (CO2 Reduction) Emission (Reduction) Electrification Outside powertrain The innovation pipeline is packed! © Rheinmetall AG I November 2021 28
Slide 29: Green ambitions as a clear global trend for cleaner mobility
Rheinmetall - Investor Presentation Markets & Drivers: Clean Mobility Green ambitions as a clear global trend for cleaner mobility g CO2/km Europe USA China 162 Q4 Q1 130 2030: NEV 40% of total Sales ‘20 ‘21 but 121 117 Until 2060: Survival of ICE 108 95 100 93 81 89 70 73 59g (-37%) Trump Admin tar
Slide 30: Declining ICE volumes and accelerated growth for alternative powertrains
Rheinmetall - Investor Presentation Markets & Drivers: LV growth Declining ICE volumes and accelerated growth for alternative powertrains IHS LV production forecast* In million units +2,8% 107 107 103 103 +9% 99 99 +2% 83 17% 83 75 76 34% 44% 31% 7% 75 76 6% 14% 16% 51% 60% 5% 3% 7% 9% 9% 13% 17% BE
Slide 31: Portfolio offers solutions for all powertrain technologies
Rheinmetall - Investor Presentation Markets & Drivers: Mobility market trends Rheinmetall portfolio already offers solutions for all powertrain technologies © Rheinmetall AG I November 2021 31
Slide 32: Sensors & Actuators: Prepared for future growth
Rheinmetall - Investor Presentation Markets & Drivers: Sensors & Actuators Prepared for future growth Outperforming the Innovative solutions Growth in alternative Diversify into market for clean mobility powertrains (AP) new applications * Estimated sales development in €m G r o w t h c a t a l y s
Slide 33: Materials and Trade: Well positioned to capture growth opportunities
Rheinmetall - Investor Presentation Markets & Drivers: Materials and Trade Well positioned to capture growth opportunities Aftermarket Bearings Castings (Joint Ventures) Sales in €m Sales in €m Sales in €m Solid profitability Shift to non-ICE applications Technology leadership 5% CAGR 7% CAGR 7% CAG
Slide 34: Diverse portfolio for truck applications
Rheinmetall - Investor Presentation Markets & Drivers: Trucks Diverse portfolio for truck applications Permaglide bearings for truck compressors and truck hydraulics Main coolant pumps Auxiliary coolant pumps Electrical oil pumps Bushings for injection pumps Main-bearings Sales in €m Connecting rod
Slide 35: Chinese operations geared towards growth
Rheinmetall - Investor Presentation Markets & Drivers: China Chinese operations geared towards growth Highlights  Sales China in €m CAGR +12%  Partner of local big players SAIC and HASCO (50/50 ~1,400 joint ventures) 1,003 1,149 1,051 WFOEs* 871  Biggest casting capacities in China – technology l
Slide 37: Division Overview: Vehicle Systems
Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Vehicle Systems 2020 Results Order intake Sales €4,389m €1,823m Operating result Operating margin €150m 8.2% Products Market profile Key Competitors Differentiators Market position TACTICAL VEHICLES  Logistic Vehic
Slide 38: Division Overview: Weapon and Ammunition
Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Weapon and Ammunition 2020 Results Order intake Sales €1,757m €1,196m Operating result Operating margin €185m 15.5% Products Market profile Key Competitors Differentiators Market position MID & LARGE CALIBER AMMO 
Slide 39: Division Overview: Electronic Solutions
Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Electronic Solutions 2020 Results Order intake Sales €1,069m €931m Operating result Operating margin €93m 10.0% Products Market profile Key Competitors Differentiators Market position  Integrated Electronic Systems
Slide 40: Division Overview: Sensors and Actuators
Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Sensors and Actuators 2020 Results Booked Business* Sales €1,665m €1,202m Operating result Operating margin €36m 3,0% Products Market profile Key Competitors Differentiators Market position  Actuators  Wide techno
Slide 41: Division Overview: Materials and Trade
Rheinmetall - Investor Presentation Five divisions under one roof Division Overview: Materials and Trade 2020 Results Booked Business* Sales €573m €1,202m Operating result Operating margin €36m 3,0% Products Market profile AFTERMARKET Key Competitors Differentiators Market position  Daido  Broad m
Slide 43: Q3 2021 Group Highlights
Rheinmetall - Investor Presentation Q3 2021 Group Highlights  Political environment de-risked Macro  Continued issues with semi-conductor availability and raw material price increases  Increased call-off volatility  All divisions with favorable book to bill ratios  Global LV markets outperforme
Slide 44: Stable Q3 with solid operational performance
Rheinmetall - Investor Presentation Q3 2021 Group Highlights: Key financial data Stable Q3 with solid operational performance Sales* Profitability* Earnings per share* in €m in €m and % margin in €  Q3 -0.2% -2.8% -5.7% 1,261 1,258 109 106 112 1.76 1.66 8 -10 -2 -1 6 Special items 0.23 0.15 0.6% -0
Slide 45: Cost inflation is taken care of
Rheinmetall - Investor Presentation Q3 2021 Group Highlights Cost inflation is taken care of  Semi conductor shortage caused OEMs to cancel higher than expected volumes  Rheinmetall has not caused production stops at any customer, but suffered from the call off cancelations Topline  Supply situat
Slide 46: Headwinds from higher working capital and restructuring cash out
Rheinmetall - Investor Presentation Q3 2021 Group Highlights: Key financial data Headwinds from higher working capital and restructuring cash out  Q3 Operating free cash flow bridge* in €m -83 -5 4 -9 49 -42  Working capital increases on prices and volumes  Restructuring effects including severan
Slide 47: Very resilient balance sheet and financial position
Rheinmetall - Investor Presentation Q3 2021 Group Highlights: Key financial data Very resilient balance sheet and financial position Gross debt and maturity profile Equity and Equity ratio GrossNet debt and maturity financial profile position in €m and % in €m Equity ratio Total equity Ʃ 953 2,233 2
Slide 48: Rheinmetall enhances ESG participation in initiatives and confirms solid ratings
Rheinmetall - Investor Presentation Q3 2021 Group Highlights Rheinmetall enhances ESG participation in initiatives and confirms solid ratings MSCI UN Global Compact AA only 22% of 36 score AA or better member since Q2 2021 ISS ESG CDP application Q3 2021 Frameworks C 15% of 65 companies in A&D score
Slide 49: Successful start for new business line with first Bundeswehr orders
Rheinmetall - Investor Presentation Q3 2021 Group Highlights Successful start for new business line with first Bundeswehr orders Rheinmetall enters new business of deployed operations support  Outsourcing of non-core military functions is trending with global market value expected to be around 350
Slide 50: Q3 2021 Division Highlights: Strong quarter in order intake and cash flow
Rheinmetall - Investor Presentation Q3 2021 Division Highlights Strong quarter with highlights in order intake and cash flow Q3 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 180 483 +168.3% 728 2,456 +237.4% Order backlog 6,155 10,481 +70.3% Sales 436 434 -0.5% 1,339 1,304 -2.6% Operating result 38
Slide 51: Strong margin expansion in a favorable environment
Rheinmetall - Investor Presentation Q3 2021 Division Highlights Strong margin expansion in a favorable environment Q3 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 242 324 +33.9% 867 752 -13.3% Order backlog 2,404 2,742 +14.1% Sales 225 228 +1.5% 670 700 +4.4% Operating result 15 26 +72.4% 30 73 +1
Slide 52: Solid quarter comparing to a favorable previous year
Rheinmetall - Investor Presentation Q3 2021 Division Highlights Solid quarter comparing to a favorable previous year Q3 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Order intake 142 251 +76.8% 569 695 +22.1% Order backlog 2,115 2,437 +15.2% Sales 206 195 -5.3% 604 558 -7.8% Operating result 24 19 -21.0% 53 48
Slide 53: Clear market outperformance with continued margin recovery
Rheinmetall - Investor Presentation Q3 2021 Division Highlights Clear market outperformance with continued margin recovery Q3 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Booked Business 327 528 +61.7% 1,309 1,480 +13.1% Sales 318 310 -2.5% 838 1,007 +20.1% Operating result 21 23 +9.4% 6 74 >100% Operating mar
Slide 54: Lower at-equity contributions consumed sales driven recovery
Rheinmetall - Investor Presentation Q3 2021 Division Highlights Lower at-equity contributions consumed sales driven recovery Q3 YTD In €m 2020 2021 ∆ 2020 2021 ∆ Booked Business 135 188 +39.0% 412 515 +24.8% Sales 144 165 +14.6% 387 485 +25.4% Operating result 15 11 -27.7% 18 38 +111.5% Operating ma
Slide 55: Q3 2021 China: Market outperformance in a contracting environment
Rheinmetall - Investor Presentation Q3 2021 China Market outperformance in a contracting environment Sales* EBIT* in €m in €m -1.6% Wholly owned foreign 248 244 enterprise Joint Venture -18 -69.8% 14 31 21 42 2 -15 218 19 6 1 3 202 4 Q3 Operational FX Q3 Q3 Operational FX Q3 2020 2021 2020 2021 • St
Slide 56: Sales growth acceleration in 2022 becomes tangible
Rheinmetall - Investor Presentation Q3 2021 Markets & Drivers Sales growth acceleration in 2022 becomes tangible Order Backlog Profile 1 in €bn +40% 33% higher ~3,500 order coverage 14,023 for 2022! 7.9 ~4,300 3.1 9,728 10,481 2.3 6,155 1.9 2,437 1.1 1.2 2,115 2,404 2,742 -945 -1,637 2020 2021 Repor
Slide 57: Alternative propulsion booked business almost doubles
Rheinmetall - Investor Presentation Q3 2021 Markets & Drivers Alternative propulsion booked business almost doubles in €m 2.000 4 3.000 2 1,4 1,4 3 1 1,8 2.500 2 +16% 1.500 1,0 0 1 1.994 2.000 -1 0 1.721 12% 23% €468m 1.000 -1 1.500 -2 +55% 716 -2 -3 22% 1.000 462 -3 500 88% 77% -4 4% -4 500 78% -5
Slide 59: Semi-conductor shortage with higher than expected H2 impact
Rheinmetall - Investor Presentation Outlook Semi-conductor shortage with higher than expected H2 impact 7% - 9% No impact Expected: ~up to €30m Q1 Reported: ~€40m Expected: ~€15 - 20m Reported: ~€40m Order slippage into Q4 Q2 Q3 Expected: up to €40m ~6% Sales Q4 Sales FY Semi-conductors shortage eff
Slide 60: FY 2021 Guidance updated
Rheinmetall - Investor Presentation Outlook FY 2021 Guidance updated Original Guidance Updated Guidance Operational 7-9% ~6% Q3 ‘19 level Q3 ‘19 level sales growth (2020 IFRS 5 adjusted: €5,406m) Operating margin 9-10% ~10% (2020 IFRS 5 adjusted: 8.4%) Based on the present supply scenario © Rheinmet
Slide 61: Major programs start contributing from 2022 onwards
Rheinmetall - Investor Presentation Outlook 2021 Major programs start contributing from 2022 onwards 1. Lot Puma (Ger) Challenger (UK) MIV (UK) Lynx (HU) Ammunition (HU) Puma S1 upgrade (Ger) L400 Ph2 (AU) 2019 2020 2021 2022 2023 2024 2025 Under contract Order potential © Rheinmetall AG I November
Slide 62: Application of IFRS 5 as of Q2 2021
Rheinmetall - Investor Presentation Realignment Application of IFRS 5 as of Q2 2021  The status of the disposal process for the piston business has progressed sufficiently in order to qualify the business in accordance with IFRS 5 as discontinued operations  Application as of Q2 2021  Presentatio
Slide 63: Responsibility @ Rheinmetall
Rheinmetall - Investor Presentation Environment Responsibility @ Rheinmetall © Rheinmetall AG I November 2021 63
Slide 64: Mainstays of States: sovereignty, national security and stability of society
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Mainstays of States: sovereignty, national security and stability of society Force protection is our mission • We serve governments enabling them to fulfil security policy and military mission obligations We operate in a strictly regul
Slide 65: Environmental goals
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Environmental goals 2035: CO² neutral * In thousand tCO2  Consistent energy management system well established; energy saving Total Emissions Scope 1 Emissions goals and use of renewable sources Scope 2 Emissions  Reduction of CO2 in
Slide 66: Efficient use of resources
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Efficient use of resources Water Energy consumption Waste  Two-year-goal: Reduce water consumption  Reduce energy consumption and increase  Waste is to be avoided, reduced, recycled by a further 10% (base line 2020) energy efficienc
Slide 67: Biodiversity activities
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Biodiversity acitivities  Fojana – Rheinmetall‘s 5,500 Hectares Natural Paradise near Unterlüss  137t of CO₂ capture/ha 3,300 ha forest bind 452,272t CO₂  1,500 m³ of groundwater formation/ha  30t of O₂/ha One hectare of deciduous
Slide 68: Being a responsible corporate citizen
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Being a responsible corporate citizen Social responsibility Rheinmetall Worldwide  Awarded a special price by the German Corporate Health  Automotive product portfolio actively reduces CO² emission Award for extra strong commitment i
Slide 69: Compliance & Governance System
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Compliance & Governance System Culture  " ESG" and "transparency" as pillars of the strategy  Zero tolerance policy  Top Tier ranking in Transparency International Defence Communication Companies Anti-corruption Index 2020  Target
Slide 70: Implementing transparency in the supply chain
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall Implementing transparency in the supply chain Frequent Supplier Monitoring process started  Complex multi-tiered sourcing activities  Environmental and human rights due diligence are a significant responsibility and a major challenge
Slide 71: New Executive Board remuneration policy with 20% share ESG targets
Rheinmetall - Investor Presentation Responsibility @ Rheinmetall New Executive Board remuneration policy with 20% share ESG targets Short Term Incentive Long Term Incentive Overall payout cap: 250% Overall payout cap: 250% Target achievement per target (0% - 250%) Performance period (4 years forward
Slide 73: Our capital allocation policy is geared towards business growth
Rheinmetall - Investor Presentation Our capital allocation policy is geared towards business growth Funding of growth (organic and M&A) Dividend to shareholders (mid-term payout ratio 35-40%) 9.4% Q3 ‘19 level Further funding of pensions via CTA (Germany) (target level 50-60%) Share buyback © Rheinm
Slide 74: External growth remains a valid option
Rheinmetall - Investor Presentation External growth remains a valid option M&A approach Business Model and Financial Critera  Permanent screening of the market  Technology Fit  Opportunities:  Growth potential  Potential transformation of European defence  Regional Fit industry might offer som
Slide 75: ROCE development
Rheinmetall - Investor Presentation ROCE development  ROCE in % 18 17,1 16 15,4 14 13,4 12,3 12 Average 12.2% 10 8 6 4 2,7 2 0 2016 2017 2018 2019 2020 © Rheinmetall AG I November 2021 75
Slide 76: 2016-2020: Key figures (as reported)
Rheinmetall - Investor Presentation Rheinmetall 2016-2020: Key figures (as reported) in €m 2016 2017 2018 2019 2020 Balance Sheet Total assets 6.150 6.101 6.759 7.415 7.267 Shareholder's equity 1.781 1.870 2.173 2.272 2.053 Equity ratio (in %) 29,0 30,7 32,1 30,6 28 Pension liabilities 1.186 1.080 9
Slide 77: Next events and IR contacts
Rheinmetall - Investor Presentation Next events and IR contacts Next Events IR Contacts Metzler Dialog, virtual 09 Nov 2021 Dirk Winkels UBS, European Conference 2021, virtual 10 Nov 2021 Head of Investor Relations Deutsches Eigenkapitalforum, virtual 23 Nov 2021 Tel: +49-211 473-4749 Goldman Sachs,
Slide 78: Disclaimer
Rheinmetall - Investor Presentation 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 pl

Rheinmetall — Investor Presentation (November 2021) on 6ix

Rheinmetall — Investor Presentation (November 2021)

Slide 1: Rheinmetall Investor Presentation November 2021

Slide 2: Agenda

Slide 3: Rheinmetall at a glance: Selected key business highlights

Slide 4: Historic financial development

Slide 5: Management sets clear strategic objectives

Slide 6: The new corporate structure - Five divisions under one roof

Slide 7: Strategy as clear commitment to our technological leadership

Slide 8: Sustainability is a central component of our corporate strategy

Slide 9: Strong focus on defence – combustion engine share below 20%

Slide 10: New strategy supports mid-term growth path

Slide 11: Markets & Drivers

Slide 12: Participating in the defence super cycle

Slide 13: Defence budgets demonstrate robustness despite Covid

Slide 14: Successful internationalization provides diverse sources of growth

Slide 15: NATO commitment key driver for German demand

Slide 16: German budget expected to rise to 50€bn

Slide 17: Targeting new businesses and increasing our budget share up to 35%

Slide 18: Soldier system and Puma VJTF drive digitization of German landforces

Slide 19: Successful establishment of a new home market: Australia

Slide 20: Creating a new home market in the UK

Slide 21: Competitive vehicles portfolio offers huge order potential

Slide 22: Hungary is a catalyst for future success of our Lynx

Slide 23: Weapon and Ammunition: Mid-term growth based on three pillars

Slide 24: Electronic Solutions: Active in very dynamic markets

Slide 25: Platform sales are just the tip of the iceberg

Slide 26: System house for land based operations

Slide 27: Growth in all divisions with Vehicle Systems as main driver

Slide 28: Strong underlying growth drivers create opportunities

Slide 29: Green ambitions as a clear global trend for cleaner mobility

Slide 30: Declining ICE volumes and accelerated growth for alternative powertrains

Slide 31: Portfolio offers solutions for all powertrain technologies

Slide 32: Sensors & Actuators: Prepared for future growth

Slide 33: Materials and Trade: Well positioned to capture growth opportunities

Slide 34: Diverse portfolio for truck applications

Slide 35: Chinese operations geared towards growth

Slide 36: Five Divisions under one roof

Slide 37: Division Overview: Vehicle Systems

Slide 38: Division Overview: Weapon and Ammunition

Slide 39: Division Overview: Electronic Solutions

Slide 40: Division Overview: Sensors and Actuators

Slide 41: Division Overview: Materials and Trade

Slide 42: Financials

Slide 43: Q3 2021 Group Highlights

Slide 44: Stable Q3 with solid operational performance

Slide 45: Cost inflation is taken care of

Slide 46: Headwinds from higher working capital and restructuring cash out

Slide 47: Very resilient balance sheet and financial position

Slide 48: Rheinmetall enhances ESG participation in initiatives and confirms solid ratings

Slide 49: Successful start for new business line with first Bundeswehr orders

Slide 50: Q3 2021 Division Highlights: Strong quarter in order intake and cash flow

Slide 51: Strong margin expansion in a favorable environment

Slide 52: Solid quarter comparing to a favorable previous year

Slide 53: Clear market outperformance with continued margin recovery

Slide 54: Lower at-equity contributions consumed sales driven recovery

Slide 55: Q3 2021 China: Market outperformance in a contracting environment

Slide 56: Sales growth acceleration in 2022 becomes tangible

Slide 57: Alternative propulsion booked business almost doubles

Slide 58: Outlook 2021

Slide 59: Semi-conductor shortage with higher than expected H2 impact

Slide 60: FY 2021 Guidance updated

Slide 61: Major programs start contributing from 2022 onwards

Slide 62: Application of IFRS 5 as of Q2 2021

Slide 63: Responsibility @ Rheinmetall

Slide 64: Mainstays of States: sovereignty, national security and stability of society

Slide 65: Environmental goals

Slide 66: Efficient use of resources

Slide 67: Biodiversity activities

Slide 68: Being a responsible corporate citizen

Slide 69: Compliance & Governance System

Slide 70: Implementing transparency in the supply chain

Slide 71: New Executive Board remuneration policy with 20% share ESG targets

Slide 72: Appendix

Slide 73: Our capital allocation policy is geared towards business growth

Slide 74: External growth remains a valid option

Slide 75: ROCE development

Slide 76: 2016-2020: Key figures (as reported)

Slide 77: Next events and IR contacts

Slide 78: Disclaimer