Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (June 2012)
54 slides from Rheinmetall's investor day presentation, Jun 13, 2012
Slide 1: International Technology Group for Defence and Automotive
Capital Markets Day I 13-14 June 2012 International Technology Group for Defence and Automotive
Slide 2: Rheinmetall Group Consolidated income statement
Rheinmetall Group Consolidated income statement € million 2007 2008 2009 2010 2011 Sales 4,005 3,869 3,420 3,989 4,454 EBITDA 438 411 180 464 538 EBIT 270 245 15 297 354 EBIT margin (%) 6.7 6.3 0.4 7.4 7.9 Group net income 150 142 - 52 174 225 Earnings per share (€) 4.15 4.09 - 1.60 4.23 5.55 Divide
Slide 3: Agenda
Agenda Wednesday, 13 June 2012 Innside Hotel 16.30 Individual arrival and hotel check-in Derendorfer Allee 8 40476 Düsseldorf Management presentation 17.00 Klaus Eberhardt, CEO, Rheinmetall AG Rheinmetall AG Management presentation Röchling Auditorium, Helmut P. Merch, CFO, Rheinmetall Defence Rhein
Slide 4: People
People Attending members of the Boards Klaus Eberhardt Dr. Herbert Müller CEO CFO Rheinmetall AG Rheinmetall AG Armin Papperger Member of the Executive Board Helmut P. Merch Rheinmetall AG CFO CEO Rheinmetall Defence Rheinmetall Defence Investor Relations Team Peter Rücker Franz-Bernd Reich Head of
Slide 5: Leading supplier for land systems
Leading supplier for land systems Capital Markets Day 2012 I Düsseldorf, 13 June 2012 Klaus Eberhardt, CEO, Rheinmetall AG © Rheinmetall 2012 Rheinmetall Group Agenda 1. Streamlining Rheinmetall Group A review of the performance 2000-2011 IPO of Rheinmetall Automotive 2. Rheinmetall Defence Innovati
Slide 6: Streamlining Rheinmetall
Rheinmetall Group Streamlining Rheinmetall Focusing on core competences and divesting non-core business units Sales 1999: Sales 2004: Sales 2011: € 4.5 billion € 3.4 billion € 4.5 billion Sales 1999 Automotive € 1.5 billion Sales 1999 Defence € 1.3 billion Electronics Engineering Office Systems Othe
Slide 7: Streamlining Rheinmetall: Considerable value generation
Rheinmetall Group Streamlining Rheinmetall Results: Considerable value generation EBIT € million 392* 354 297 270 245 217 225 215 197 204 119 103 15 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 * Including extraordinary earnings from divesting Heimann Systems Capital Markets Day 13-14
Slide 8: Improving financial stability; preparing the IPO of Rheinmetall Automotive
Rheinmetall Group Streamlining Rheinmetall Improving the financial stability Equity % of total assets Cash credit facilities € million 32.0 ∼1,500 30.4 ∼400 Bilateral bank facilities (up to 1 year) Syndicated loan 500 15.4 (due December 2016) Promissory notes 86 (due 2013/14) Bond 500 (4% coupon, du
Slide 9: Advantages of an Automotive IPO; Rheinmetall as a pure defence player
Rheinmetall Defence The advantages of an Automotive IPO for Rheinmetall Rheinmetall would be the only pure-play listed defence company in Continental Europe As a “pure player” in defence, Rheinmetall could benefit from the discontinuation of the conglomerate discount and attractive Defence multiples
Slide 10: Innovative products with excellent market positions
Rheinmetall Defence Innovative products with excellent market positions Basis of future organic growth Infantry fighting vehicle (IFV) Multi-role armoured vehicle Multi-role armoured vehicle Puma Boxer Fox Latest technology in IFV segment First vehicles delivered to “Experiencing its second life“ wo
Slide 11: Innovative products; new markets penetration
Rheinmetall Defence Innovative products with excellent market positions Basis of future organic growth Electro-optical components Turret system Lance Ammunition Strengthened by the acquisition Medium-calibre turret available in Traditional core competence of Simrad a two-man configuration and as a w
Slide 12: Outstanding order situation
Rheinmetall Defence Outstanding order situation Medium-sized orders recently received or presently expected Air Defence systems and Future soldier system for Service provider contract for services for Asian countries German forces unmanned aerial vehicles Two orders received in Q2, Order of 300 futu
Slide 13: Continuation of the acquisition and joint venture policy
Rheinmetall Defence Continuation of the acquisition and the joint venture policy Success by both national and international acquisitions MaK System Mauser-Werke Nitrochemie Oerlikon Contraves Zaugg, Denel Simrad (100%) (100%) Wimmis (55%) (100%) Switzerland Munition, Optronics AS, (100%) South Afric
Slide 14: Joint ventures with Cassidian and General Dynamics
Rheinmetall Defence Strengthening the business with a strong partner Contract on joint venture with Cassidian signed Rheinmetall EADS Cassidian 49% Joint 51% Venture Consolidation of national capabilities Formation of a supplier offering the full spectrum of unmanned aereal vehicles Strengthening of
Slide 15: Partnership in Asia; defence industry environment
Rheinmetall Defence Creating a strong partnership with a domestic company in Asia Competence for manufacturing and assembling electronic systems Rheinmetall Bousted Corp. Contraves 49% Advanced 51% Devices (Malaysia) One of Malaysia’s leading electronic systems manufacturing and service company Sale
Slide 16: Budget cuts in US and Europe, growth elsewhere
Rheinmetall Defence Budget cuts in the US and in many European countries… …but strong growth in other strategically important regions Change in expected defence spending 2016 vs. 2012 Canada - 6% Russia + 19% Turkey + 23% South Korea + 14% USA - 12% Algeria + 26% UAE + 15% Saudi Arabia + 21% India S
Slide 17: International ranking
Rheinmetall Defence International ranking Rheinmetall is no. 4 worldwide in the land systems industry Sales 2011 US$ million 8,827 5,441 4,365 2,772 2,000 1,806 1,480 1,212 1,102 861 567 567 General BAE Oshkosh Rheinmetall Navistar ATK ST Kinetics KMW Nexter Patria Nammo Oto Dynamics Systems Melara*
Slide 18: Almost three quarters of order intake from abroad
Rheinmetall Defence Almost three quarters of order intake from abroad Non-domestic sales will grow further Sales 2011 by region in % Order intake 2011 by region in % Rest of the world Rest of the world 3% Germany 3% Germany North and North and South America South America 12% 14% 28% 63% 37% 72% 19%
Slide 19: Consequent expansion of non-domestic business
Rheinmetall Defence Consequent expansion of non-domestic business Strategy of internationalization will provide further growth opportunities Sales total Sales Germany Sales abroad € 0.5 billion € 0.6 billion € 1.6 billion € 2.0 billion ≈ € 3.0 billion 12 % 18 % 48 % 66 % 80 % Large-scale internation
Slide 20: Defence shows a strong financial performance
Rheinmetall Defence Defence shows a strong financial performance Double-digit EBIT margin for the fourth time in a row Sales in € million EBIT margin in % 2,141 2,007 1,898 1,814 1,757 1,642 1,677 11.3 11.7 1,614 1,605 10.7 10.4 1,445 9.1 10% 1,384 1,401 7.7 6.9 5.6 4.3 4.3 3.8 2.1 2000 2001 2002 20
Slide 21: Mid-term targets
Rheinmetall Defence Mid-term targets Further growth and double-digit profitability Sales in € million Mid-term targets EBIT margin in % Sales (CAGR): 12% 10% EBIT margin: ≥ 10% ~ 3,000 ~ 2,500 2,141 223 2011 2012e 2013e 2014e Capital Markets Day 13-14 June 2012 © Rheinmetall 2012 33 Rheinmetall Defe
Slide 22: Slide 22
Slide 23: Focusing forces for the future
a Focusing forces for the future Capital Markets Day 2012 I Düsseldorf, 13 June 2012 Helmut P. Merch, CFO, Rheinmetall Defence © Rheinmetall 2012 Rheinmetall Defence New structure since January 2012 Leading European Defence Company Sales: € 2,1 billion Rheinmetall Defence Employees: 9,800 Combat Sys
Slide 24: Reorganization of Rheinmetall Defence; Combat Systems
Rheinmetall Defence Advantages for the reorganization of Rheinmetall Defence Improved customer and market orientation with clearly defined business units in order to strengthen the competitiveness of the Defence group Maintaining the principle “Entrepeneur within the company” Modular structure of th
Slide 25: Combat Systems Competitive Landscape
Rheinmetall Defence - Combat Systems Combat Systems Competitive Landscape (1) Sales in USD billion 3.0 Combat Systems (CS) GD* Leading and one of the most profitable suppliers of combat 2.0 systems in Europe Leading European supplier of propellants CS Most diversified (Softkill, BAE* Hardkill, Passi
Slide 26: Combat International; Combat Platforms
Rheinmetall Defence - Combat Systems Combat International Targets and tasks More effective coordination of the international business activities of Combat Systems Managing production sites in Italy, Canada, USA, South Africa Target: link the international plants and create synergies Steering sales o
Slide 27: Infantry; Propulsion Systems
Rheinmetall Defence - Combat Systems Infantry Targets and tasks Grenade launcher Hydra (40mm) HV ABM (40mm) upgrade kit Mortar systems (60mm) Mithras rocket handfired family Creating a one-stop-shop for state of the art - soldier equipment Extending global systems leadership for 40mm weapons and amm
Slide 28: Protection Systems; Combat Systems financial targets
Rheinmetall Defence - Combat Systems Protection Systems Targets and tasks IAC MAN HX ROSY ADS Passive protection Securing the unique market position as a full range supplier of highly innovative and profitable products for softkill-solutions (flares, fogs) and for passive protection (Chempro, Versei
Slide 29: Division Electronic Solutions
Rheinmetall Defence - Electronic Solutions Division Electronic Solutions 2011 Sales: Air Defence Defence Electronics € 0.8 billion Order intake: Sales € 0.6 billion 2011 Simulation and Training Employees: 3,100 Technical Publications Electro-Optical Equipment Capital Markets Day 13-14 June 2012 © Rh
Slide 30: Electronic Solutions Competitive Landscape; Air Defence
Rheinmetall Defence - Electronic Solutions Electronic Solutions Competitive Landscape (2) Sales Air Defence Simulation and Defence Electro-optical Training Electronics Components Raytheon Finmeccanica Thales Defence & Security Cassidian MBDA IAI Saab Elbit Flir Electronic Solutions CAE Defence Asels
Slide 31: Simulation and Training; Defence Electronics
Rheinmetall Defence - Electronic Solutions Simulation and Training Targets and tasks Combat Training Center Virtual Simulation Rear Aircrew Training Aids AGUS – Navy Simulator Implementing the Combat Training Center for Russia (order > € 100 million) and gaining further orders for live-training Incr
Slide 32: Electro-optical Equipment; financial targets
Rheinmetall Defence - Electronic Solutions Electro-optical Equipment Targets and tasks Vingmate advanced sight and fire control system Laser-Light Modules Vario Ray Thermal imager SAPHIR 9.6 Night Vision Goggles Combining excellent product know-how for electro-optical sensor components in Germany wi
Slide 33: Division Wheeled Vehicles
Rheinmetall Defence - Wheeled Vehicles Division Wheeled Vehicles 2011 Sales*: Logistic € 0.6 billion Vehicles Tactical Vehicles Order intake*: Sales € 0.4 billion 2011* Employees: 1,200 * Figures 2011 pro forma; logistic vehicles were not consolidated in 2011. Reported figures: Sales € 255 million,
Slide 34: Logistic vehicles
Rheinmetall Defence - Wheeled Vehicles Logistic vehicles New and different business model Fundamental structure: Business model characterized by assembly production with low working capital and low capex requirements; value-added lower than in the tactical vehicle business ROCE satisfactory; focus l
Slide 35: Tactical Vehicles targets and tasks
Rheinmetall Defence - Wheeled Vehicles Tactical Vehicles Targets and tasks Fox (Fuchs) 1A8 Boxer AMPV Boxer ambulance vehicle Securing basic capacity utilization in the coming ten years by the ongoing Algerian project Smoothly ramping up the serial production of the Boxer tank for the Netherlands (2
Slide 36: Wheeled Vehicles financial targets 2012-2014
Rheinmetall Defence - Wheeled Vehicles Wheeled Vehicles Financial targets 2012-2014 Sales/EBIT in € million EBIT margin in % Mid-term targets: Sales : ≥ € 700 m EBIT margin: ≥ 5% 333 (MAN sales) * Figures 2011 pro forma; logistic vehicles were not consolidated in 2011. Reported figures: Sales € 255
Slide 37: High order backlog and strong book-to-bill ratio
Rheinmetall Defence - Financial figures Rheinmetall Defence High order backlog and strong book-to-bill ratio Order backlog on a high level Book-to-bill ratio levels out around 1.0 4,772 4,590 4,541 4,527 3,649 3,462 3,307 3,061 2,748 2,819 2,868 2,565 1,0 2,418 ~1,800 Puma/Boxer/Fox 2000 2001 2002 2
Slide 38: Rheinmetall Defence financial targets; quarterly development
Rheinmetall Defence - Financial figures Rheinmetall Defence Financial targets 2012-2014 Sales/EBIT in € million EBIT margin in % Mid-term targets: Sales (CAGR): 12% EBIT margin: ≥ 10% Capital Markets Day 13-14 June 2012 © Rheinmetall 2012 31 Rheinmetall Defence - Financial figures Rheinmetall Defenc
Slide 39: Q1 2012 sales and earnings bridge
Rheinmetall Defence - Financial figures Rheinmetall Defence Quarterly development Q1 2012 - sales and earnings bridge Sales bridge Q1 2011 to Q1 2012 € million 40 471 70 0 441 0 EBIT bridge Q1 2011 to Q1 2012 € million 38 11 Margin: 33% 4 13 6 4 Q1 2011 PPA ADS Logistic vehicles Volume effect Produc
Slide 40: Improving operating free cash flow in 2012
Rheinmetall Defence - Financial figures Rheinmetall Defence Improving operating free cash flow in 2012 EBIT and net profit slightly below the 2011 figures Capex on the same level as in the previous years (3.5 - 4 %) Depreciation without major changes Significant working capital reduction will be ach
Slide 41: Visit to the largest Defence exhibition worldwide
Visit to the largest Defence exhibition worldwide Eurosatory Capital Markets Day 2012 I Paris, 14 June 2012 Armin Papperger, CEO, Rheinmetall Defence © Rheinmetall 2012 Eurosatory Your Text2012 – Rheinmetall Defence Eurosatory: Facts and Figures Largest Defence-Exhibition worldwide, taking place eve
Slide 42: Eurosatory importance; present situation
Eurosatory Your Text2012 – Rheinmetall Defence Eurosatory: Importance for Rheinmetall Defence Meet our customers from all over the world Show our products, most of them are new and innovative! Prove our high standard of performance and unique engineering skills See our competitors and observe their
Slide 43: Clear targets for 2014
Eurosatory Your Text2012 – Rheinmetall Defence Rheinmetall Defence: Clear targets for 2014 Growth: Faster than the global economy Sales 2014: € 3 billion Targets 2014 Profitability: EBIT-ROS ≥ 10% Operating Free Cash-Flow: Increasing, > 5% of sales Capital Markets Day 13-14 June 2012 © Rheinmetall 2
Slide 44: Exhibition overview and highlights
Eurosatory Your Text2012 – Rheinmetall Defence Overview Paris Nord Villepinte Exhibition Centre Rheinmetall Defence approx. 2000 m² Capital Markets Day 13-14 June 2012 © Rheinmetall 2012 7 Eurosatory Your Text2012 – Rheinmetall Defence Rheinmetall at Eurosatory 2012: Exhibition Highlights Soldier Sy
Slide 45: HX 8x8 Hooklift UK; HX 6x6 Cargo
Eurosatory Your Text2012 – Rheinmetall Defence HX 8 x 8 Hooklift UK The HX is a versatile all-wheel-drive truck, custom-developed for tough logistics challenges in military service. HX 8 x 8 Hooklift, gross weight : 36 t; engine: 324 kW/440 HP More than 7,000 HX- and SX-vehicles worth € 1.6 billion
Slide 46: Boxer Command Vehicle; AMPV
Eurosatory Your Text2012 – Rheinmetall Defence Boxer Command Vehicle Unique concept of exchangeable mission moduls according to different requirements Highly protected 8x8 vehicle ; weight: 35 t; transport vehicle for up to 11 persons High tactical and operational mobility; air transportable in the
Slide 47: Marder Evolution Family; MBT Revolution
Eurosatory Your Text2012 – Rheinmetall Defence Marder Evolution Family New developments based on existing fleet of Marder tanks (more than 2,100 vehicles delivered to the German army since 1971); with the combat-proven Marder as platform, Rheinmetall offers an entire new vehicle family for high requ
Slide 48: Skyshield Air Defence System; AGSAS
Eurosatory Your Text2012 – Rheinmetall Defence Skyshield® Air Defence System MANTIS (Modular Automatic and Network capable Targeting and Interception System) formerly: C-RAM (Counter Rockets, Artillery, Mortars) System consists of: ground control system, 2 sensor elements (radars, electro-optic sens
Slide 49: Ammunition; Special Ammunition and Field Equipment
Eurosatory Your Text2012 – Rheinmetall Defence Large calibre, medium calibre and mortar ammunition Extensive array of tank-, artillery- and medium-calibre ammunition, high- performance propellants and fuzes Joint venture “Defense Munitions International (DMI)” with General Dynamics recently signed,
Slide 50: Gladius soldier system; electro-optical components
Eurosatory Your Text2012 – Rheinmetall Defence Infantry Systems: Gladius – the leading soldier system New development of the complete armament of an infantry soldier Modular configuration with high flexibility; real-time access to decisive information Features: e.g., network capability; real time in
Slide 51: Remote weapon station family
Eurosatory Your Text2012 – Rheinmetall Defence Product line remote weapon station - family and variants Light weight weapon station Medium weight weapon station Medium weight weapon station Medium weight weapon station Amarok Qimek Nanuk Arrows Medium weight weapon station Protector Super Light, Pro
Slide 52: Lance Turret System; Protection Systems
Eurosatory Your Text2012 – Rheinmetall Defence Lance Turret System State-of-the-art Rheinmetall medium-calibre turret system. It can be configured for manned operation or serve as a remote control turret. Easy to operate, handled almost intuitively, soldiers can train nearly any scenario imaginable
Slide 53: Automotive and Defence segment reports
Rheinmetall Group Automotive – Segment report € million 2007 2008 2009 2010 2011 Sales 2,249 2,055 1,522 1,982 2,313 EBITDA 237 184 - 70 183 254 Amortization / depreciation 117 123 117 102 103 EBIT 120 61 - 187 81 151 EBIT margin (%) 5.3 3.0 - 12.3 4.1 6.5 Capital expenditures 148 146 70 96 104 Empl
Slide 54: Financial Diary; Disclaimer
Financial Diary August 10, 2012 Q2 2012 November 9, 2012 Q3 2012 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 an