Renk Group Ag · XETR:R3NK
Renk — Q1 2025 Earnings Presentation
34 slides from Renk's earnings presentation, May 14, 2025
Slide 1: Q1 2025 Analyst Presentation
TRUSTED PARTNER. Q1 2025 Analyst Presentation Dr. Alexander Sagel, CEO Anja Mänz-Siebje, CFO May 14, 2025
Slide 2: Q1 2025 Summary – very promising start into the year
Q1 2025 CONFERENCE CALL Q1 2025 Summary – very promising start into the year Key order intakes Q1 2025 Highlights THOR III / transmissions ~ €140m • Strong order intake of €549m (Q1 2024: €208m) International customer / transmissions with book-to-bill at 2.0x (Q1 2024: 0.9x) ~ €35m • Defense busines
Slide 3: Very strong order intake, Group on track
Q1 2025 CONFERENCE CALL Very strong order intake, Group on track ORDER INTAKE REVENUES ADJ. EBIT ADJ. EBIT #1 MARGIN in mission-critical drive technologies €549m €273m €38m 14.1% +164% YoY +15% YoY +38% YoY +2.4pp YoY • Order intake – Record level for a Q1 Civil 27% • Revenues – Growth in line with
Slide 4: Overall business clearly driven by defense business
Q1 2025 CONFERENCE CALL Overall business clearly driven by defense business Order Intake (Defense, €m) Revenue (Defense, €m) +196% +29% 390 203 158 132 Q1 2024 Q1 2025 Q1 2024 Q1 2025 3 Trusted Partner
Slide 5: Vehicle Mobility Solutions
Q1 2025 CONFERENCE CALL Vehicle Mobility Solutions • Strong order intake, e.g. THOR III • VTA and RAM on track and as planned • Increased aftermarket activities by various European customers Revenue, €m yoy +28.1% 235 169 172 Order Intake 160 134 397 €m Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 4 Trus
Slide 6: Marine & Industry
Q1 2025 CONFERENCE CALL Marine & Industry • Strong Order Intake • Shift of revenue into Q2/Q3 due to customer related postponements Revenue, €m YoY -6.9% 98 83 Order Intake 79 70 73 122 €m Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 5 Trusted Partner
Slide 7: Slide Bearings
Q1 2025 CONFERENCE CALL Slide Bearings • Continuation of good performance in line with FY2024 • Favourable demand for E- and marine bearings Revenue, €m YoY +6.8% 33 32 Order Intake 31 31 29 37 €m Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 6 Trusted Partner
Slide 8: Total order backlog at €5.5bn – further increase of fixed order backlog
Q1 2025 CONFERENCE CALL Total order backlog at €5.5bn – high order intake leads to further increase of fixed order backlog Total order backlog (Q1-25), €bn LTM revenue 2.0x 0.5x 2.2x 4.7x coverage(1) 2.5 0.6 5.5 2.3 Additional recurring aftermarket business outside of framework contracts Fixed Order
Slide 9: Financial Summary
TRUSTED PARTNER. Financial Summary Anja Mänz-Siebje, CFO
Slide 10: Group: Outstanding order intake and revenue in line with growth strategy
Q1 2025 CONFERENCE CALL Group: Outstanding order intake and revenue in line with growth strategy Order intake, €m Revenue, €m Fixed order backlog(2), €m 0.9x 2.0x 12.1% 2,331 163.5% 2,080 549 14.7% 273 238 208 Q1-24 Q1-25 Q1-24 Q1-25 Dec-24 Mar-25 YoY growth Book-to-bill ratio(1) 9 Trusted Partner
Slide 11: Group: significant increase in adj. EBIT due to production efficiency
Q1 2025 CONFERENCE CALL Group: significant increase in adj. EBIT due to production efficiency Adj. gross profit(1), €m Adj. EBIT(2), €mNet debt(3), €m Net debt(3), €m 25.7% 28.7% 11.7% 14.1% 1.7x 1.8x 9.5% 411 375 30.2% 79 61 38.1% 38 28 Q1-24 Q1-25 Q1-24 Q1-25 Dec-24 Mar-25 YoY growth Adj. gross pr
Slide 12: VMS: Impressive order intake growth translated into solid revenues
Q1 2025 CONFERENCE CALL VMS: Impressive order intake growth translated into solid revenues Segment financials, €m Order intake Revenue Adj. EBIT(1) 20.2% 14.5% 16.6% 404.2% 397 46.6% 29 28.1% 20 172 134 79 Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 YoY growth Adj. EBIT margin 11 Trusted Partner
Slide 13: M&I: Operational progress more than offsetting the revenue dip
Q1 2025 CONFERENCE CALL M&I: Operational progress more than offsetting the revenue dip Segment financials, €m Order intake Revenue Adj. EBIT(1) 6.1% 10.2% 54.7% 24.9% 7 122 -6.9% 98 79 5 73 BER300 - EBIT Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 YoY growth Adj. EBIT margin 12 Trusted Partner
Slide 14: Slide Bearings: Consistent revenue growth and improved margins
Q1 2025 CONFERENCE CALL Slide Bearings: Consistent revenue growth and improved margins Segment financials, €m Order intake Revenue Adj. EBIT(1) 16.9% 17.3% 9.3% -5.2% 5 6.8% 5 39 37 31 29 Q1-24 Q1-25 Q1-24 Q1-25 Q1-24 Q1-25 YoY growth Adj. EBIT margin 13 Trusted Partner
Slide 15: Adjustments largely driven by Purchase Price Allocation
Q1 2025 CONFERENCE CALL Adjustments largely driven by Purchase Price Allocation For the period, €m Q1-24 Q1-25 Operating profit 11.9 24.4 PPA depreciation and amortization as well as income / 1losses from PPA asset disposals 11.0 11.0 Operating profit before PPA depreciation and amortization as well
Slide 16: Increase of net working capital due to scheduled build up of inventories
Q1 2025 CONFERENCE CALL Increase of net working capital due to scheduled build up of inventories Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) % of LTM revenue 26.8% 24.9% 28.4% 334 284 248 307 268 249 391 437 326 (124) (117) (125) (204) (258) (28
Slide 17: Free cash flow reduction mainly due to increase of NWC
Q1 2025 CONFERENCE CALL Free cash flow reduction mainly due to increase of NWC Key cash flow items Q1-25, €m Change in NWC, €m Commentary (49.5) (3.0) (39.7) Customer receivables (46.1) Inventories 46.3 +7.7 Trade payables (49.5) +28.5 Prepayments received Comments (5.0) (17.9) 1 Inventory levels r
Slide 18: OUTLOOK
TRUSTED PARTNER. OUTLOOK Dr. Alexander Sagel, CEO
Slide 19: 2025 guidance confirmed based on Q1
Q1 2025 CONFERENCE CALL 2025 guidance confirmed based on Q1 2025 Guidance Medium-term target Next steps Revenue / • Follow defense growth >€1.3bn ~15% CAGR budget allocation decisions 2025 • Further quantification of additional business potentials Adj. EBIT(1) • Review mid-term targets €210m-235m ~€
Slide 20: Selection of key order intake targets 2025
Q1 2025 CONFERENCE CALL Selection of key order intake targets 2025 THOR IV frame AVDS Engines Patria contract 3+2 years International FAMOUS APC K2 Poland Various IFV programs Various frigates 19 Trusted Partner
Slide 21: Clear focus on 2025 priorities
Q1 2025 CONFERENCE CALL Clear focus on 2025 priorities Operational • Continue with excellence programs along entire value chain 1 Excellence • Enforce efficiency improvements in lead plants (e.g. RAM & VTA) Key Order Intake • Securing 2025 OI programs & proceed on future key OI projects 2 and R&D Pr
Slide 22: Initial estimate of upside potential beyond our current project pipeline
Q1 2025 CONFERENCE CALL Initial estimate of upside potential beyond our current project pipeline - first revenues from increasing NATO defense budgets expected from 2027 onwards Total Order Backlog(1) in €bn Revenue development RENK Group in €m 5.5 ~2,500 – 3,000 NATO EU Upside Strategic M&A 2.5 Sof
Slide 23: Financial Calendar 2025
FINANCIAL CALENDAR 2025 May 2025: September 2025: • Kepler Cheuvreux - Virtual SMID CEO/CFO Tour (15 May) • Morgan Stanley Industrial CEOs Unplugged 2025, • BNP US Roadshow (19/20 May) London (3 September) • Berenberg European Conference, New York (21/22 May) • DESI London investor meetings (10/11 S
Slide 24: Q&A Session
TRUSTED PARTNER. Q&A Session RENK Group / Company presentation / March 2023
Slide 25: Your contact
TRUSTED PARTNER. Your contact Investor Relations: RENK Group AG Julia Brand, Senior IR Manager Maximilian König, Senior IR Manager Goegginger Straße 73 Phone: +49 821 5700 735 Phone: +49 821 5700 9302 D-86159 Augsburg E-Mail: investors@renk.com E-Mail: investors@renk.com Germany www.renk.com Christi
Slide 26: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following limitations. This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or
Slide 27: Appendix
TRUSTED PARTNER. APPENDIX
Slide 28: Income statement
Financial Appendix Income statement For the period, €m Q1-2024 Q1-2025 Revenue 237.7 272.6 Cost of sales (187.7) (206.3) Gross profit 50.0 66.3 Distribution expenses (15.2) (16.8) General and administrative expenses (23.6) (22.3) Net allowances on financial assets 0.4 0.1 Other income 4.9 3.3 Other
Slide 29: Balance sheet – Total assets
Financial Appendix Balance sheet – Total assets As of, €m Dec 31, 2024 Mar 31, 2025 Intangible assets 360.5 344.3 Property, plant and equipment 320.7 318.5 Other and financial investments 0.8 0.8 Deffered tax assets 22.4 22.7 Other non-current financial assets 0.1 0.0 Other non-current receivables 1
Slide 30: Balance sheet – Total equity and liabilities
Financial Appendix Balance sheet – Total equity and liabilities As of, €m Dec 31, 2024 Mar 31, 2025 Share capital (subscribed capital in previous year) 100.0 100.0 Capital reserves 172.7 172.9 Retained earnings 134.9 135.7 Cumulative other comprehensive income 33.3 31.3 Equity attributable to shareh
Slide 31: Cash flow statement
Financial Appendix Cash flow statement For the period, €m Q1-2024 Q1-2025 Cash and cash equivalents at beginning of period 102.2 164.3 Profit / loss before tax 3.8 4.8 Income taxes paid (4.9) (6.5) Depreciation, amortization and impairment losses on intangible assets and property, plant and equipmen
Slide 32: Adjustments
Financial Appendix Adjustments For the period, €m Q1-24 Q1-25 Operating profit 11.9 24.4 PPA depreciation and amortization as well as income / 1losses from PPA asset disposals 11.0 11.0 Operating profit before PPA depreciation and amortization as well as income / losses from 22.9 35.4 PPA asset disp
Slide 33: Endnotes (1/2)
Endnotes (1/2) p.7 (1) Defined as total order backlog as of March-25 / LTM revenue for the period ended March 31, 2025. Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog (2) Fixed order backlog represents with respect to binding customer contracts and p
Slide 34: Endnotes (2/2)
Endnotes (2/2) p.16 (1) Adj. EBITDA is defined as operating profit before depreciation, amortization and impairment losses on intangible assets and property, plant and equipment, the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items