Rheinmetall Ag · XETR:RHM

Rheinmetall — Investor Day (November 2015)

22 slides from Rheinmetall's investor day presentation, Nov 26, 2015

  1. Slide 1: Rheinmetall AG Capital Markets Day, Horst Binnig, CEO Automotive

    R H E I N M E TA L L AG T H E T EC H N O LO GY G RO U P FO R S EC U R I T Y A N D M O B I L I T Y Capital Markets Day | Vienna | November 26, 2015 Horst Binnig, CEO Automotive © RHEINMETALL AG 2015

  2. Slide 2: What we achieved since the CMD 2014

    What we achieved since the CMD 2014 2016 - 2020, a strategic outlook The challenge Mobility 2020PLUS © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 2

  3. Slide 3: What we achieved since the CMD 2014

    What we achieved since the CMD 2014 2016 - 2020, a strategic outlook The challenge Mobility 2020PLUS © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 3

  4. Slide 4: Key messages

    Rheinmetall Automotive Key messages Last CMD November 2014 Markets will not limit our growth, Global LCV-production growth: + 1,3% we will outperform the market. Our growth: 7% (4% w/o FxR), 11% incl. JV. Sales for TecParts increased up to > 60 %. New and innovative products are in the pipeline. Goo

  5. Slide 5: Performance Highlights 9M 2015

    Rheinmetall Automotive Performance Highlights 9M 2015 Robust sales growth, enhanced profitability, positive free cash flow Sales increased by EUR 126 million, Sales + 7%* outperforming global markets (+ 1%) EBIT + 18% Strong increase of EBIT to EUR 164 million Margin + 0.8pp EBIT margin above target

  6. Slide 6: The challenge

    What we achieved since the CMD 2014 2016 – 2020, a strategic outlook The challenge Mobility 2020PLUS © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 6

  7. Slide 7: China's economy slows down, but…

    » Chinas economy slows down, but… © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 7

  8. Slide 8: Market development China

    Rheinmetall Automotive Market development China Sold LCV in million units 2,06 2,04 1,87 1,85 1,78 1,78 1,75 1,73 1,71 1,71 1,70 1,70 1,67 1,61 1,61 1,61 1,59 1,59 1,59 1,56 1,51 1,47 1,44 1,42 1,40 1,40 1,40 1,36 1,35 1,31 1,27 1,24 1,11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 201

  9. Slide 9: KSPG China sales and LCV market

    Rheinmetall Automotive 84 82 80 76 75 70 67 75 75 62 72 55 69 68  Sales KSPG in EUR million* 62 61 55 50  Sales JVs in EUR million 9  Sales 100% subsidiaries 7 8 8 7 6 7 6 6 in EUR million 2,04 1,87 1,75 1,67 1,61 1,51 1,42 1,40 1,27  Sold LCVs in million units Jan Feb Mar Apr May Jun Jul Aug Se

  10. Slide 10: Diesel might get under pressure

    » Diesel might get under pressure © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 10

  11. Slide 11: Market consequences of diesel emission manipulations

    Rheinmetall Automotive Market consequences of diesel emission manipulations Diesel sales share of total Rheinmetall Automotive sales 2014 Sales in 2014 by engine type in % of total sales Sales in 2014 by customers in % of total sales Diesel (cars) VW Others 17% 18% 12% Non-car Ford (incl. commercial

  12. Slide 12: Market trends for future drive systems

    Rheinmetall Automotive Drive systems: Market trends for future drive systems Car sales in million units Phase 1: until 2020 Pure combustion Hybrid and E-Drive 250 Gasoline-Hybrid Gasoline-Plugin-Hybrid 200 Car Sales p.a. (million) Diesel-Hybrid 150 Diesel-Plugin-Hybrid 100 E-Drive Gasoline 50 Gasoli

  13. Slide 13: Hybridization at KSPG: Combustion products

    Rheinmetall Automotive Hybridization at KSPG Combustion products © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 13

  14. Slide 14: Hybridization at KSPG: Hybrid products

    Rheinmetall Automotive Hybridization at KSPG Hybrid products Product: Electrical vacuum pumps Product: Plain bearings Sales 2014: 80 MioEUR Sales 2014: 63MioEUR Product: Solenoid valves Product: Electrical coolant pumps Sales 2014: 193 MioEUR Sales 2014: 106 MioEUR Total sales 2014: 442 MioEUR © RH

  15. Slide 15: Additional potential for KSPG: From standard to high-tech

    Rheinmetall Automotive Additional potential for KSPG From standard to high-tech Mechanical Electrical coolant pump >6x coolant pump Mechanical Variable oil pump >3x oil pump EGR valve with EGR valve >4x double cooler Aluminum Steel piston >6x piston Factors refer to sales price per unit © RH E I NME

  16. Slide 16: Strategic outlook: Mobility 2020PLUS

    What we achieved since the CMD 2014 Strategic outlook The challenge Mobility 2020PLUS © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G | NOV E MBER 2 6 , 2 0 1 5 16

  17. Slide 17: KSPG's Future Technology Fields

    Rheinmetall Automotive Technologies KSPG’s Future Technology Fields SHORT TERM Base Engine Evolutionary Flexibility and Diversification Downsizing/Boosting Portfolio Expansion Emission Control Convenience MEDIUM TERM Ecological Thermal Management Conformity and Energy Efficiency Energy Energy Recupe

  18. Slide 18: E-Cars: Additional potential for KSPG components

    Rheinmetall Automotive E-Cars Additional potential for KSPG components Bearings Solenoid valves Structural components Electrical vacuum pumps Electrical oil pumps Actuators Electrical coolant Thermal management pumps module © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NN

  19. Slide 19: Innovative Products: VW e-UP thermal management module

    Rheinmetall Automotive Innovative Products VW e-UP with KSPG thermal management module (Prototype) • Heating and air-conditioning of passenger compartment • Control temperature of components • Range extension up to 40% © RH E I NMETAL L A G 2 0 1 5 | C A P I TAL MA RK E TS D A Y | H ORS T BI NNI G |

  20. Slide 20: Innovative Products: market introductions driven by us

    Rheinmetall Automotive Innovative Products Examples for a market introduction driven by us Sales today: Sample 1: Electrical water pump 100 ~ EUR mn Development Market First customer Initiation Introduction order Sales today: Sample 2: Bearings for fuel injection pumps 20 ~ EUR mn Development Market

  21. Slide 21: Automotive: Key investment highlights

    Rheinmetall Automotive Automotive Key investment highlights – Rising global demand for light vehicles M a r ke t s – High need for efficient engines and lower emissions – Focus: Emission & CO2-reduction by Mechatronics, Products CO2-reduction by Hardparts – More complex products leading to higher pr

  22. Slide 22: We confirm 8% EBIT margin

    2015 We confirm 8% EBIT margin 2016 Our growth drivers are still valid – VW-Diesel impact risk is limited to a sales share of 9% – “China growth story” will continue on a broader product base – Ramp up to a strong position in “hybridization” of powertrains – Guidance will be announced in March 2016

Rheinmetall — Investor Day (November 2015) on 6ix