Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2024)

46 slides from Rheinmetall's investor day presentation, Nov 19, 2024

  1. Slide 1: Strengthening Horizons: Growth in a disruptive world

    STRENGTHENING HORIZONS Growth in a disruptive world Armin Papperger, CEO CAPITAL MARKETS DAY – 19. November 2024

  2. Slide 2: NATO's response to the changed security situation is strong and decisive

    STRENGTHENING HORIZONS NATO’s response to the changed security situation is strong and decisive 2022  NATO considers Russia to be the most significant and immediate threat NATO Strategic Concept 2022  NATO must be ready, willing and able to defend allied territory  Commitment to achieve at least

  3. Slide 3: EU NATO countries increase spending by an additional €100bn until 2028

    STRENGTHENING HORIZONS EU NATO countries increase spending by an additional €100bn until 2028 Europe crosses 2% in 2024 … … and further growth until 2028 CAGR 2022-2028 4% 2% - 5% 5% - 10% Trump’s 3% 10% - 15% 3% >15% 2% NATO target 1% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 NATO Europe NATO

  4. Slide 4: International Ukraine support continues with help of G7

    STRENGTHENING HORIZONS International Ukraine support continues with help of G7  G7 decision to finance a €50bn credit for Ukraine  Interests are being covered by windfall profits from frozen Russian assets  Ukraine has full autonomy over use of funds  Use of funds:  Rebuilding infrastructure 

  5. Slide 5: German election roadmap and outlook

    STRENGTHENING HORIZONS German election roadmap and outlook  Vote of confidence expected for 16 December 2024  Federal elections then expected for 23 February 2025  Most likely outcome is a CDU-led government If the parliamentary elections were held next Sunday… (compared to 2021 election results)

  6. Slide 6: Great strides into a promising future!

    STRENGTHENING HORIZONS Great strides into a promising future! Q4 2024 Q3 2024 Signing Q2 2024 Leonardo JV Signing Loc >60 Performance Q1 2024 Eurosatory Q4 2023 Ground- UTF 2.0 breaking Q3 2023 Signing Unterlüss 51.9 Piston Expal closing Disposal Boxer HWC RhUDI 48.6 First ESSI approval contracts 40

  7. Slide 7: Rheinmetall booked over €39 billion over the last 30 months with Germany

    STRENGTHENING HORIZONS Rheinmetall booked 39 billion over the last 30 months with Germany Outstanding hit rate! >€39bn booked German Special Expected RHM Expected Fund total Potential in 2022 Q4 orders €80bn (net) >€35bn (net) Frame Nomination Order Intake In €bn 2022 2023 30 Sep 2024 2024e 8 © Rhei

  8. Slide 8: Our potential for 2027

    STRENGTHENING HORIZONS Our potential for 2027 ~€20bn SALES potential ~18% OPERATING MARGIN potential >40% CASH CONVERSION RATE 9 © Rheinmetall AG I CMD 2024

  9. Slide 9: Low EV/EBITDA valuation leaves room for more despite great performance

    STRENGTHENING HORIZONS Low EV/EBITDA valuation leaves room for more despite great performance Share price EV/EBITDA 200 increase YTD FY2026 +85% 8.85x 180 160 140 +35% 9.00x 120 +24% 13.42x +16% 6.84x 100 Rheinmetall Stoxx Aerospace Defence DAX Lockheed Martin 80 10 © Rheinmetall AG I CMD 2024 Sourc

  10. Slide 10: Vehicle Systems

    Segment VEHICLE SYSTEMS 2027 Sales potential €8-9bn 11 © Rheinmetall AG I CMD 2024

  11. Slide 11: Multiple programs enter ramp-up phase and create leverage

    VEHICLE SYSTEMS Multiple programs enter ramp-up phase and create leverage RHM NOMINATION SALES OPERATING MARGIN 8-9 13-15% In €bn 10-12 In €bn ~2pp ~11% ~35% ~10 12-13% 7.1 +45-50% 12% 2.6 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e 12 © Rheinmetall AG I CMD 2024 Note: Growth in CAGR

  12. Slide 12: Gigantic demand for vehicles of all kinds

    VEHICLE SYSTEMS Gigantic demand for vehicles of all kinds Heavy Weight Medium Medium Artillery Logistic 4x4 Tracked Weight Weight Systems Vehicles Vehicles Tracked Wheeled 2030 2027 2025 Total potential of 13 © Rheinmetall AG I CMD 2024 €0-2bn €2-5bn €5-10bn €10-20bn >€20bn Market potentials until 2

  13. Slide 13: Rheinmetall to create one of the biggest military vehicle fleets

    VEHICLE SYSTEMS Rheinmetall to create one of the biggest military vehicle fleets >4,000x Challenger WLS >60,000x Panther 3 Leopard 2 MBT Trucks UTF Leopard 1 Air Lynx IFV Defence Skyranger Puma >700x Boxer >10,000x Marder 14 © Rheinmetall AG I CMD 2024 Note: Number of vehicles and fleets need servic

  14. Slide 14: Weapon and Ammunition

    Segment WEAPON AND AMMUNITION 2027 Sales potential €6-7bn 15 © Rheinmetall AG I CMD 2024

  15. Slide 15: Transforming backlog into profitable sales

    WEAPON AND AMMUNITION Transforming backlog into profitable sales RHM NOMINATION SALES OPERATING MARGIN ~2% 6-7 >26% In €bn In €bn ~12 >3pp ~40% 8-10 8.2 25-26% +55-65% 23% 1.8 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e 16 © Rheinmetall AG I CMD 2024 Note: Growth in CAGR

  16. Slide 16: Long-term growth through capacity increases in the existing portfolio

    WEAPON AND AMMUNITION Long-term growth through capacity increases in the existing portfolio €6-7bn ~€2.8bn €1.8bn €1.2bn 2021 PY Guidance 2027 2030 2023 2024 Market potentials until 2030. 17 © Rheinmetall AG I CMD 2024

  17. Slide 17: Establishing Rheinmetall as a power house for rocket motors

    WEAPON AND AMMUNITION Establishing Rheinmetall as a power house for rocket motors  Two main suppliers – Lockheed Martin (HIMARS) and Elbit (PULS)  EXPAL acquisition opened rocket 500km artillery market in Europe to 300km Rheinmetall  New German capacity in Unterlüss 70-150km Total production capa

  18. Slide 18: Strengthening Europe's full shot capacity for 155mm artillery

    WEAPON AND AMMUNITION Strengthening Europe's full shot capacity for 155mm artillery Scaling footprint Artillery Ammunition Systems with 30 to 75km+ in range Fuzing Energetic material Propulsion systems Igniting Existing capacities MoU signed Existing facility with Explosives filling Shell forging Bo

  19. Slide 19: On our way to mass production!

    WEAPON AND AMMUNITION On our way to mass production! 2022 2027 ARTILLERY 70,000 ~1.1 m 155MM TANK 60,000 >150,000 120MM MEDCAL 100,000 >3.4 m 20-35MM PROPELLANT 5,000 t ~12,000 t 20 © Rheinmetall AG I CMD 2024 Note: Capacity p.a.

  20. Slide 20: Electronic Solutions

    Segment ELECTRONIC SOLUTIONS 2027 Sales potential €4-5bn 21 © Rheinmetall AG I CMD 2024

  21. Slide 21: Air Defence and Digitalization drive sales to new heights

    ELECTRONIC SOLUTIONS Air Defence and Digitalization drive sales to new heights RHM NOMINATION SALES OPERATING MARGIN 4-5 >18% In €bn ~36% In €bn 7-8 >7 ~7pp >35% +30-35% ~12-13% 2.2 1.3 11% 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e 22 © Rheinmetall AG I CMD 2024 Note: Growth in CAGR

  22. Slide 22: New challenges on the battlefield create huge opportunities

    ELECTRONIC SOLUTIONS New challenges on the battlefield create huge opportunities Air Defence Military Mission UxS Digitalization Aviation Systems >€15bn ~€2bn ~€6bn ~€2bn ~€15bn Market potentials until 2030. 23 © Rheinmetall AG I CMD 2024

  23. Slide 23: Market leading gun technology is set for VSHORAD

    ELECTRONIC SOLUTIONS Rheinmetall’s market leading gun technology is set for VSHORAD Strong interest in ESSI and beyond! Protection radius 4km Platform agnostic turret design. Total market Skyranger on Boxer potential: >€15bn 24 © Rheinmetall AG I CMD 2024 Note: Graphic shows combination of orders an

  24. Slide 24: Evolution of warfare will drive growth in the digitalization business

    ELECTRONIC SOLUTIONS Evolution of warfare will drive growth in the digitalization business Potential until 2030 “We sense the “We connect the “We automate & battlefield” battlefield” dominate the battlefield” D-LBO ~€1bn Reconnaissance TAWAN ~€7.5bn & Target Classification IdZ >€2.5bn OTHERS ~€4bn W

  25. Slide 25: Power Systems

    Segment POWER SYSTEMS 2027 Sales potential €2-2.5bn 26 © Rheinmetall AG I CMD 2024

  26. Slide 26: Defying a challenging macro environment

    POWER SYSTEMS Defying a challenging macro environment RHM NOMINATION SALES OPERATING MARGIN flat ~2-2.5 6% ~6% In €bn In €bn 2% 2% ~4 3.5 ~4% 2.1 ~3 0-5% 2023 2024e 2027e 2023 2024e 2027e 2023 2024e 2027e 27 © Rheinmetall AG I CMD 2024 Note: Growth in CAGR

  27. Slide 27: Continuous transformation of our civil business

    POWER SYSTEMS Continuous transformation of our civil business Optimization continues New divisional set-up Portfolio management Potential reassignment Materials & Trade and of civil capacities Disposal of the piston business Sensor & Actuators Merged into Power Addressing new markets Large-bore pist

  28. Slide 28: Markets

    MARKETS 29 © Rheinmetall AG I CMD 2024

  29. Slide 29: New Italian JV increased market potential tenfold

    MARKETS New Italian JV increased market potential tenfold MBT program AICS* program in total ~€8bn in total ~€15bn SUPPORT VEHICLES LYNX ~140 vehicles ~1,050 vehicles ITALY PANTHER + EXPORT ~132 vehicles + AMMUNITION In total €50bn over next 10 years 30 © Rheinmetall AG I CMD 2024 Note: * Armoured I

  30. Slide 30: New Anglo-German defence cooperation creates new opportunities

    MARKETS New Anglo-German defence cooperation creates new opportunities GUNS POWDER in total ~0.5bn in total >€2bn 155mm Artillery 120mm Tank AMMUNITIONS & VEHICLES in total ~€5bn Medium Calibre 31 © Rheinmetall AG I CMD 2024

  31. Slide 31: U.S. market entry is a major strategic shift

    MARKETS U.S. market entry is a major strategic shift  U.S. market entry diversifies Rheinmetalls global portfolio  ARD1 introduces technology that aligns with key U.S. needs  New element of competition in the U.S. market  Gigantic order potential Strong U.S. revenue growth trajectory Target ~$2b

  32. Slide 32: Numerous promising potentials

    MARKETS Numerous promising potentials XM30 CV Artillery Air Defence/ Down selected Ecosystem C-UAS ~$45bn ~$30bn Propulsion New potentials ~$1bn+ ~$2bn HX3 CTT S-MET II Soldier Combat Lethality vehicle ~$16bn $800m+ mission systems ~$2-3bn ~$1bn+ 33 © Rheinmetall AG I CMD 2024

  33. Slide 33: Ambition is to quadruple sales over the coming years

    MARKETS Ambition is to quadruple sales over the coming years Continue organic and inorganic investment to catalyze growth Effectively integrate Loc Performance and realize growth synergies Execute key captures Aggressively pursue opportunities to achieve growth across wider portfolio 34 © Rheinmetal

  34. Slide 34: Rheinmetall is the leading industrial defence partner of Ukraine

    MARKETS Rheinmetall is the leading industrial defence partner of Ukraine Total orders since 2022 +3 service hubs ~€6bn + 1 JV RhuDI +1.4m rounds +250 armored of ammunition vehicles delivered delivered +110 Systems +300 of air defence, SatCom and UAVs Trucks delivered delivered 35 © Rheinmetall AG I

  35. Slide 35: Lessons learned from the war in Ukraine

    MARKETS Lessons learned from the war in Ukraine  Return to high intensity conventional  Passive and active protection (top attack warfare protection) is a decisive combat advantage  Enormous demand for munitions  Local maintenance hub important to reduce repair times  Air force alone does not w

  36. Slide 36: First industry partner with local footprint in Ukraine

    MARKETS First industry partner with local footprint in Ukraine RhUDI established 1st Vehicle service JV Rheinmetall included in the list of special strategic partners for Ukraine 2022 2023 October 2024 February June July August 2025 Order to deliver Heavy armour MoU for artillery JV production line

  37. Slide 37: Key messages: We are ready for growth!

    STRENGTHENING HORIZONS Key messages  Rheinmetall's portfolio perfectly meets the demand on the battlefield  Capacity growth and program ramp-up drive performance over the mid-term  Global macro environment expected to support higher defence spending We are ready for growth! 38 © Rheinmetall AG I

  38. Slide 38: Outlook

    OUTLOOK 39 © Rheinmetall AG I CMD 2024

  39. Slide 39: Accelerated defence growth continues over the next years

    STRENGTHENING HORIZONS Accelerated defence growth continues over the next years Sales split by segment ~€20bn CAGR >25% 30%  Business grows by >25%  Defence segments more than double  Electronic Solutions highest relative increase ~€10bn 39% 27%  Power Systems declining to less than 10% 37% 20%

  40. Slide 40: Strong pipeline with multi-billion projects ahead

    STRENGTHENING HORIZONS Strong pipeline with multi-billion projects ahead 24.0 RHM backlog coverage in €bn  Additional major projects in final discussions Nominated Backlog  Digitization: Frame Backlog Order Backlog  TaWAN  D-LBO  IdZ  Tactical Vehicles: 9.1 7.6 8.0  Germany  Italy  Weapon a

  41. Slide 41: Exciting growth story ahead

    STRENGTHENING HORIZONS Exciting growth story ahead ~20 Sales in €bn Post 2027 potential U.S.:  XM 30 ~$45bn  CTT ~$16bn Italy:  Tactical vehicle programs  MBT ~€8bn  Air Defence  Digitization  AICS ~€15bn Germany: ~10  Wheeled IFV up to €2bn  155mm (full shot)  Med Caliber  RCH155 up to €

  42. Slide 42: Becoming a global employer of choice

    STRENGTHENING HORIZONS Becoming a global employer of choice  >128,000 applications in Germany  2,120 additional FTEs hired since start of the year  Climbing in most designated employer rankings, especially for young engineering professionals (#10 in 2024 vs. #25 in 2021) 43 © Rheinmetall AG I CMD

  43. Slide 43: Prepared for the future!

    STRENGTHENING HORIZONS Prepared for the future! Armin Papperger Klaus Neumann René Gansauge Dr. Ursula Biernert CEO CFO COO CHRO Appointed until 30. Sep 2029 Appointed until 30. Sep 2027 Appointed until 30. Sep 2027 Appointed until 30. Sep 2027 Born in 1963 Born in 1970 Born in 1973 Born in 1969 Ent

  44. Slide 44: Key messages: We are the fastest growing defence company

    STRENGTHENING HORIZONS Key messages  We are the fastest growing defence company  We want to outperform over the mid-term and beyond  Clear focus on the defence business provides for further margin potential  Internationalization is an important part of the risk diversification process  M&A will

  45. Slide 45: 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

  46. Slide 46: Taking responsibility in a changing world

    TAKING RESPONSIBILITY IN A CHANGING WORLD 47 © Rheinmetall AG I CMD 2024

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