Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2019)

69 slides from Rheinmetall's investor day presentation, Nov 20, 2019

  1. Slide 1: Mobility I Security I Passion

    Mobility I Security I Passion Mobility technologies to drive. Security technologies to protect. Passion for both. CMD 2019 Armin Papperger Unterlüß | 20 November 2019

  2. Slide 2: We live in a disruptive world

    We live in a disruptive world 2

  3. Slide 3: Increasing complexity with diminishing transparency

    Increasing complexity with diminishing transparency Mobility Rapid transition and increasing interconnectedness Greater uncertainty and a rise in the need for security Security Increasing environmental risks and new conflict scenarios 3

  4. Slide 4: What kind of needs do people have? What threatens people?

    What kind of needs do people have? What threatens people? 4

  5. Slide 5: Old threats undergo a renaissance, new threats emerge

    Old threats… New threats… undergo a renaissance emerge 5

  6. Slide 6: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  7. Slide 7: Rheinmetall technologies as an answer to current threats and challenges

    Rheinmetall technologies as an answer to current threats and challenges 7

  8. Slide 8: New products

    AUTOMATION ONE NEXT SENSORS NEW RHEINMETALL DIGITIZATION E-MOBILITY PRODUCTS ARTIFICIAL INTELLIGENCE 8

  9. Slide 9: Fields of technology, platforms and projects

    FIELDS OF TECHNOLOGY POTENTIAL TECHNOLOGY PLATFORMS POTENTIAL TECHNOLOGY PROJECTS … and many more! 9

  10. Slide 10: Fields of technology

    Fields of technology TECHNOLOGY PROJECTS (SELECTION) Dual-Band , Ye Swarm Control / Uncooled Cooperative IR Sensors Control Digital Product Twin rN a Hyperspectral Advanced Sensors Vehicle Dynamics = _ Products and Sensor Cleaning ‘ Systems for Fuel Cells

  11. Slide 11: Rheinmetall Technology Center

    RHEINMETALL New Business TECHNOLOGY CENTER CTO UBD Rheinmetall Technology CTO UBA Management Engineering / Operations Vehicle Weapon & Electronic New Business Hardparts Mechatronics Aftermarket Systems Ammunition Solutions Project 1 New Business Counterpart Counterpart Counterpart Counterpart Counte

  12. Slide 12: Rheinmetall products as an answer to current threats and challenges

    Rheinmetall Products as an answer to current threats and challenges 12

  13. Slide 13: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  14. Slide 14: Critical infrastructure

    CRITICAL INFRASTRUCTURE 14 14

  15. Slide 15: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  16. Slide 16: Drone defence

    DRONE DEFENCE 16

  17. Slide 17: Rheinmetall Drone Defence System as an effective solution

       Top European airports Rheinmetall Drone Defence System as an effective solution (Radar, EO-Sensor, Sykmaster, Tracking Software, Jammer, Drone) 17

  18. Slide 18: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  19. Slide 19: Weaponized unmanned ground vehicle

    WEAPONIZED UNMANNED GROUND VEHICLE 19

  20. Slide 20: Weaponized unmanned ground vehicle: modular mission scenarios

    CARGO PROTECTION Winner of ELROB* – Award 2018 RESCUE SURVEILLANCE Extremely versatile Fully modular COMM RELAY Adaptable to various mission scenarios FIREFIGHTING Easily installable mission modules CBRN DETECTION *European Land Robot Trail 20

  21. Slide 21: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  22. Slide 22: Main Ground Combat System

    RHEINMETALL GROUP MAIN GROUND COMBAT SYSTEM i

  23. Slide 23: Main Ground Combat System

    MAIN GROUND COMBAT SYSTEM Digital turret 130mm cannon 23

  24. Slide 24: Cannon and ammunition

    130mm Cannon and ammunition 24 24

  25. Slide 25: RHEINMETALL

    RHEINMETALL GROUP eines a PLUS POTENTIALS _.

  26. Slide 26: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  27. Slide 27: Tendered business

    TENDERED BUSINESS  4.000 Trucks Germany,  Military trucks eg. UK, Australia and Scandinavia thereof 2.000 protected  Exploration of civil market applications ongoing  German market accounts for approx. 60.000 civil hooklift loaders 27

  28. Slide 28: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  29. Slide 29: Electrification, emission, efficiency

    ELECTRIFICATION EMISSION EFFICIENCY NEW PRODUCTS, CLUSTER TECHNOLOGIES, SERVICES,... 29

  30. Slide 30: Electrification at Rheinmetall Automotive

    ELECTRIFICATION at Rheinmetall Automotive 30

  31. Slide 31: Market success: Rheinmetall products for NEV

    MARKET SUCCESS Rheinmetall products for NEV German premium E-Tron E-Golf OEM (Fuel Cell) ELECTRIC FUEL CELL BATTERY E-ENGINE CATHODE CONTROL BOXES HOUSING VALVE VALVE31 Illustrative examples

  32. Slide 32: Micro E-Drive System

    RHEINMETALL GROUP Micro E-Drive System 32

  33. Slide 33: European e-Bike sales forecast

    CAGR 2018-30: +10% 9,0 Start of 8,5 8,0 Production 7,4 6,9 6,4 5,9 5,4 4,9 4,4 3,8 3,3 2,9 Development cost of € ~30m until 2022 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 European e-Bike sales forecast [mUnits] 33

  34. Slide 34: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  35. Slide 35: 5G-Data safety: Major contract for Rheinmetall in China

    5G-Data safety Major contract for Rheinmetall in China 35

  36. Slide 36: Old threats undergo a renaissance, new threats emerge

    Attack on Piracy trade roots Non- cooperative Drones Accelerated Scarcity of Regional Hybrid Russian Globalization raw materials Conflicts Warfare Aggression Old threats… New threats… undergo a renaissance emerge Failure of Transmission Critical Expansionism Terrorism Impairments in Infrastructure C

  37. Slide 37: Strategic approach: establishing attractive home markets

    F ueinmerau Strategic approach Establishing attractive “HOME MARKETS” SALTED: KINGDOM germany To CANADA Le s- _ ay sour a AFRICA . , AUSTRALIA =e :

  38. Slide 38: Joint venture – Strengthening the position in UK

    Home Market UK Joint venture – Strengthening the position in UK Rheinmetall Defence / Mechadyne Automotive Rheinmetall MAN Military Vehicles WASHINGTON  Advanced valve train technology  Rheinmetall Defence UK Rheinmetall Technical Publications  Technical documentation for major OEMs BICESTER TELD

  39. Slide 39: Joint Venture with BAE Land Systems

    Home Market UK Joint Venture with BAE Land Systems EXPANSION OF PRODUCT PORTFOLIO Current Future  BAE UK business  Boxer Mechanized Infantry Vehicle (MIV)  Armoured engineering vehicles and bridge-laying tanks  Challenger 2 Life Extension Program  AS 90 self-propelled artillery system (CR2 LEP)

  40. Slide 40: Rheinmetall employs 130 people in the UK

    Rheinmetall currently employs 130 people in the UK across 3 locations • Bristol Defence • Rheinmetall Defence UK Automotive • Rheinmetall MAN Military Vehicles • Rheinmetall Technical Publications • Isle of Wight • RFEL • Bicester • Mechadyne BOXER MECHANISED INFANTRY VEHICLE (MIV) BICESTER  Demand

  41. Slide 41: Challenger 2 Life Extension Program

    CHALLENGER 2 LIFE EXTENSION PROGRAM (CR2 LEP)  Order volume of approx. € 800 – 1,200m  Lifetime extension offered by British-German Team (with Pearson Engineering, Thales UK and others) 41 41

  42. Slide 42: Logistic vehicles services

    LOGISTIC VEHICLES SERVICES  Integrated Logistic Support for 7.500 trucks (together with MAN Truck & Bus UK)  Post-design service activities 42

  43. Slide 43: Domestic programs to load the JV

    Home Market UK Domestic programs to load the JV 500 in €m 400 CHALLENGER LEP 300 200 BOXER MIV 100 RBSL LEGACY BUSINESS 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 43

  44. Slide 44: Strategic approach: establishing attractive home markets

    Sew EINMETALL GROUP Strategic approach Establishing attractive “HOME MARKETS” UNITED KINGDOM GERMANY CANAD. ——e. — — A x _ \ tin”, SWITZERLAND S45 7 =~ “Ye SOUTH AFRICA * “ AUSTRALIA ee rn

  45. Slide 45: Australia: sales 2020e €~330m

    Darwin  RDA office SALES 2020e: € ~330m Townsville Maryborough  RDA office  JV Rheinmetall NIOA  Ammunition factory Adelaide  JV Supashock Brisbane  Rheinmetall Electronics  RDA office  RDA office  Military vehicle center of excellence Canberra  RDA office Melbourne Wellington  RDA headqu

  46. Slide 46: Military trucks, JV Rheinmetall NIOA, munition, simulation

    Military Trucks JV Rheinmetall NIOA Munition Simulation  Land 121 35 / 5B (2013/2018)  51% Rheinmetall (2017)  Simulation / Training for M1A1  EUR 2bn  Land 17: 155mm Munition: EUR 350m Fighting Vehicles Technology  Major Munition Framework Contract: EUR 60m  NEW Facility in Queensland Boxer

  47. Slide 47: The new Brain-Trust in Australia

    The new Brain-Trust in Australia Multi-Body Programming Artificial Engineering Dynamics Electronics Robotics + Coding Intelligence Simulation  Vehicle  Virtual  Quick  Human  Advanced Driver-  Target System Prototyping Prototyping Machine Assistance Systems Localization Engineering  Performan

  48. Slide 48: Active suspension and light weight running gear

    ACTIVE SUSPENSION (CIVIL/MILITARY) LIGHT WEIGHT RUNNING GEAR OEM SUSPENSION ACTIVE RIDE LEVELING SUPPORT ROLLER ROAD WHEEL ARM SYSTEM & ASSEMBLY STREET 4x4 DAMPERS PERFORMANCE IDLER WHEEL ARM TRACK TENSIONER 48

  49. Slide 49: Supashock products

    Ff evenmerau GROUP SUPASHOCK PRODUCTS ALHS: AUTOMATED LOAD HANDLING SYSTEM DEFENCE LOGISTICS: CRANE HANDLING SYSTEM - (Lynx crane) jj es 49

  50. Slide 50: Autonomous driving concept: motion stabilised gangway

    AUTONOMEOUS OEM DRIVING  3D Camera System  Natural Frequency Control  Active Damping Capability CONCEPT: MOTION STABILISED GANGWAY 50 50

  51. Slide 51: For the near Future

    For the near Future i Si

  52. Slide 52: 52

    52

  53. Slide 53: Increase of global defence budgets

    MGCS International Eastern USA Indirect fire Europe MENA system Europe (UK) Lynx South-East MIV Boxer Asia Challenger Germany Australia Algeria Simulation VJTF Trucks Ammunition Puma Boxer … Lynx Boxer Leopard Ammunition Trucks … Load Handling System Ammunition … Increase of global defence budgets A

  54. Slide 54: Major programs: Boxer, MIV, trucks, VJTF Puma

    Australian Boxer EUR 2.1bn MIV EUR 1.3bn Trucks Germany & Australia EUR 2.6bn + + VJTF PUMA & IdZ EUR 0.4bn + + 54

  55. Slide 55: German defence budget investive expenses and Rheinmetall-share

    German defence budget investive expenses and Rheinmetall-share in €m 8.263 6.011 6.063 5.327 5.419 5.025 Rheinmetall avg. 20%-25% share Rheinmetall avg. 10%-15% share 2014 2015 2016 2017 2018 2019 2020* 2021* 2022* 55

  56. Slide 56: Super cycle growth potentials

    SUPER CYCLE GROWTH POTENTIALS Sales in €bn Potential eg: Land 400 3 Top 10 booked projects 7.5 Vehicles Eastern Europe  Land 400 MGCS  Land 121 5.0  Trucks Germany Top 10 booked projects ~30%  Trucks LHS Germany  Puma 2.5 Base ~70%  Fuchs Mat Kits  Gladius  3 international progams 0 2018 201

  57. Slide 57: Automotive

    Automotive 57

  58. Slide 58: How to fill the gap

    AUTOMOTIVE HOW TO FILL THE GAP External growth Cluster Technologies Innovative Products E-Mobility Pedelec Truck 58

  59. Slide 59: Regional overview: flattish market until 2022

    Regional Overview flattish market until 2022 Europe Asia ex. China 18,6 18,2 27,3 27,0 2018 2022 USMCA 2018 2022 17,0 16,7 China 26,6 27,0 World 2018 2022 94,2 94,2 2018 2022 OTHERS 4,7 5,3 2018 2022 2018 2022 Source: IHS September 2019 59

  60. Slide 60: Booked Business Mechatronics

    Booked Business Mechatronics Booked Business by Propulsion Type 2018 + YTD 2019 Book to bill ratio 1.5 1.7 ~1.7e 4% 0% in € m 2.780 2.650 6% 2.476 7% 38% 1.621 1.664 1.166 19% 9m 26% 2017 2018 2019e Booked Business Sales Gasoline Diesel Truck Several Hybrid BEV/ Veh. Appl. Fuel Cell Electric 60

  61. Slide 61: Booked Business Hardparts

    Booked Business Hardparts Booked Business by Propulsion Type 2018 + YTD 2019 Book to 0% bill ratio 1.1 1.1 ~1.1e 0% in € m 9% 1.063 1.104 1.062 4% 968 989 32% 14% 731 6% 9m 34% 2017 2018 2019e Booked Business Sales Gasoline Diesel Truck Several Hybrid BEV/ Veh. Appl. Fuel Cell Electric 61

  62. Slide 62: 62

    62 62

  63. Slide 63: Truck product portfolio

    TRUCK product portfolio Main coolant Permaglide bearings for truck compressors and truck hydraulics pumps Aluminum pistons Auxiliary coolant pumps Steel pistons Electrical oil pumps Piston rings Cooperation with Riken Bushings for injection pumps Main-bearings Connecting rod bearings Coolant valves

  64. Slide 64: Worldwide truck production development

    Worldwide TRUCK PRODUCTION development Truck production according to IHS (in m units) Rheinmetall truck sales estimates in €m -12% >10% 3,4 424 3,2 2,9 2,9 3,0 2018 2019 2020 2021 2022 2018 2019e 2020e 2021e 2022e Source: IHS September 2019 64

  65. Slide 65: Automotive

    AUTOMOTIVE

  66. Slide 66: China LV and NEV volume evolution

    CAGR 4% CAGR 4% +1% -9% 29,6 30,7 China LV 27,1 27,7 26,6 27,0 28,4 23,7 24,2 24,4 25,5 Volume Evolution BEV (m units) PHEV Others 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR 31% China NEV 7,2 6,2 Volume Evolution CAGR 74% +46% 5,1 +21% 3,8 (m units) 2,1 2,9 0,7 1,2 1,4 0,2 0,4 2015

  67. Slide 67: China highlights

    HIGHLIGHTS CHINA Partner of local big players SAIC and HASCO Biggest casting capacities in China – technology leader Regulation (China 6) – provides substantial growth potential for mechatronics division Strong demand for NEV products China Story on track: product pipeline supports growth ambitions

  68. Slide 68: CAGR ~10% 2019e 2020e

    CAGR ~10% ~20% ~6% >10% 2018 2019e 2020e 2021e 2022e 68

  69. Slide 69: Mobility I Security I Passion

    Mobility I Security I Passion Mobility technologies to drive. Security technologies to protect. Passion for both. 69

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