Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Presentation (June 2018)
76 slides from Rheinmetall's investor presentation, June 2018
Slide 1: Rheinmetall AG Corporate Presentation Q1 2018
Rheinmetall AG Corporate Presentation Q1 2018 Düsseldorf, June 2018
Slide 2: Serving the need for mobility and security
Rheinmetall Group Serving the need for mobility and security Order backlog €6,936m Key Sales €5,896m Strategy Organic growth Performance Op. result €400m roadmap International expansion Indicators Operating FCF EPS €276m €5.24 2017 Leading by innovations Targeted acquisitions DPS €1.70 AUTOMOTIVE DE
Slide 3: More than 100 production sites and offices on all continents
Rheinmetall Group More than 100 production sites and offices on all continents Germany UK Defence Russia USA Netherlands Norway Singapore Sites Canada Switzerland Sweden South Saudi Arabia Malaysia Mexico Austria Poland Africa UAE Australia Italy USA Mexico Japan China Germany India France Spain Aut
Slide 4: Q1 2018 Group Highlights
Q1 2018 Group Highlights Steady margin in a slower quarter – guidance confirmed Order Entry Sales Operating Margin EPS +39.5% €1.6bn vs PY €1.3bn -6.6% vs PY 3.7% stable €0.55 stable Q1 with good order entry lifts order backlog to > €7bn again Decline of sales by -6.6% (FX-adjusted -3.7%) to €1.260m
Slide 5: Steady margin in a quarter dampened by FX
Steady margin in a quarter dampened by FX Sales Operating result in €m in €m Operating margin in % -6.6% -6.0% 1,349 50 -36 -2 1,260 47 -53 -1 3.7% 3.7% Q1 2017 FX Operational Q1 2018 Q1 2017 FX Operational Q1 2018 IFRS 15/16 effects on sales and operating result are negligible! © Rheinmetall AG / C
Slide 6: Defence working capital build-up impacts OFCF
Defence working capital build-up impacts OFCF Operating Free Cash Flow Earnings per share Headcount in €m in € in FTE +2.5% -44.2% 0.56 0.55 21,610 22,153 -199 -287 Q1 2017 Q1 2018 31.12.2017 31.03.2018 Q1 2017 Q1 2018 © Rheinmetall AG / Corporate Presentation June 2018 6
Slide 7: Balance sheet stands strong
Balance sheet stands strong Net debt Equity ratio in EUR million in % of total assets IFRS 16 IFRS 15/16 Restated for leasing Restated for effect effect liabilities and leasing liabilities €155 m costs to obtain contracts 230 31.6% 31.0% 30.4% 29.3% 75 unadjusted unadjusted -182 -219 31.03.2017 31.1
Slide 8: Mid-term outlook: Drivers for structural earnings improvement
Rheinmetall Group Mid-term outlook Drivers for structural earnings improvement Automotive targets Sales in Margin €bn 10% Increase content per car 3 Approx. 8.5% op. margin 8% Gain more powertrain neutrality Further develop product portfolio by entering new 2 6% markets, e.g. e-mobility 4% Increase
Slide 9: Mid-term outlook: Drivers for profitable growth intact
Rheinmetall Group Mid-term outlook Drivers for profitable growth intact Defence targets Sales in Sales 2017-2020: Margin €bn ~10% CAGR 4 8% Markets at the dawn of a long-term growth trend Increasing margins due to the lesser impact of legacy 6-7% op. margin 3 6% contracts Potential update Higher mar
Slide 10: Q2 forecast
Q2 forecast Automotive Defence Positive market environment continues Flat sales development in Q2 expected Q2 growth above Q1 But: Q2 18 growth of >10% compared to PY sales Positive margin leverage expected adjusted for ammunition trading contract Persisting FX headwinds Higher value creation in Q2
Slide 11: FY Guidance
FY Guidance High sales growth and earnings improvement targeted Sales Operating margin 2017 2018e 2017 2018e Growth y/y in % Growth y/y in % in % in % Group 5.2 8-9 6.8 ~ 7.0 Automotive 7.7 3-4 8.7 ~ 8.5 (IHS 2.1%) (IHS 1.9%) Defence 3.1 12 - 14 5.7 6.0 - 6.5 Defence with pronounced seasonality! IHS
Slide 12: Financial Details
Rheinmetall Group FINANCIAL DETAILS © Rheinmetall AG / Corporate Presentation June 2018 12
Slide 13: Automotive Highlights
Automotive Highlights Maintaining high level of profitable growth Quarterly sales and margin development Comments on quarterly performance 737 728 684 712 751 Sales grew by 1.9% (FX-adjusted +4.8%) to €751m 9.2 Operating result improved to €65m lifting margin to 8.6% 8.8 8.4 8.3 8.6 OFCF improved on
Slide 14: Margin expansion in all Divisions
Margin expansion in all Divisions Sales Automotive Operating result Automotive Mechatronics in €m in €m growth in % (FX adjusted) Margin Slow LV-Diesel business and adverse FX overcompensated by good +1.9% (+4.8%) +4.8% demand for emission reduction and 737 751 65 8.6% 62 fuel efficiency products Co
Slide 15: Growth impacted by FX headwinds
Growth impacted by FX headwinds Regional sales development Automotive Regional Automotive sales growth Q2 2018 in €m in % (IHS April 2018) 1.9% 36.7 737 751 LV production 0.6% 25.8 0.5% 5.1% Automotive sales 5.6% 7.2% 9.4% Automotive sales 3.1% 3.2% FX adjusted 9.9 9.5 16.5% 15.1% 2.0 1.2 3.9 2.2 1.
Slide 16: China: Start up cost and FX headwinds
China Start up cost and FX headwinds Sales in €m -1.4% Total sales of our Chinese activities grew 4.5% FX 252 12 249 adjusted while Chinese LV production contracted by - 15 3.3% in Q1 Serie 218 218 JV Sales grew organically 5.6% to €218, completely off-set by adverse FX effects 34 31 Q1 2017 FX oper
Slide 17: FY 2017 Highlights: Automotive
Rheinmetall Automotive FY 2017 Highlights: Automotive Successful launch of innovative products Electronic vacuum pump Vapor pump Market introduction of new ICE products Electric throttle and control valve In plastic Variable valve train Catering to the demand for lightweight parts Structural part -
Slide 18: Q1 2018 Highlights: Defence
Q1 2018 Highlights: Defence Slower start to the year with comforting high order entry Quarterly sales and margin development Comments on quarterly performance Promising news flow on Boxer, especially Land 400 (Australia) 1,011 731 Order entry more than doubled to €857m 612 682 11.3 6.7 509 Lower sal
Slide 19: Catch-up of low Q1 during the course of the year anticipated
Catch-up of low Q1 during the course of the year anticipated Sales Defence Operating result Defence in €m Weapon and Ammunition in €m PY included two high margin orders -16.8% -3.0 Customer-induced delivery shifts 612 Missing export approvals Electronic Solutions 191 509 11.0 +10.0 Different time pa
Slide 20: Good order entry and further increase of order backlog
Good order entry and further increase of order backlog Order intake by division Order backlog profile in €m in €m per 31/03/2018 857 +5.3% +119% 6.740 ~2,500 ~2,200 ~2,000 6.402 617 391 207 Weapon and Ammunition 120 Electronic Solutions 116 Vehicle Systems 137 Consolidation 83 -15 -17 31/03/2017 31/
Slide 21: The Boxer - crystallizing a success story
Q1 2018 Highlights: Defence The Boxer - crystallizing a success story In execution In preparation 403 vehicles 200 vehicles 88 vehicles 211 vehicles 48 vehicles ~500 vehicles (negotiations) (intention) (intention) D NL LT AUS SLO GB 2021 2020 2023 2019 2026 2018 2021 2013 2018 2011 2020 © Rheinmetal
Slide 22: FY 2017 Highlights: Defence
Rheinmetall Defence FY 2017 Highlights: Defence 2017 laid the foundation for the next growth phase International tender pipeline with excellent prospects Positioning as systems provider becomes more important New strategic co-operations developed © Rheinmetall AG / Corporate Presentation June 2018 2
Slide 23: Automotive Appendix
Rheinmetall Automotive AUTOMOTIVE APPENDIX © Rheinmetall AG / Corporate Presentation June 2018 23
Slide 24: Automotive with leading technology and market positions
Appendix: Rheinmetall Automotive Automotive with leading technology and market positions Key Figures Structure Sales by region Sales by division Sales: €2.9bn RoW Aftermarket Hardparts ASIA 4% Op. result: €247m 15% 12%-3% Pistons Large-bore Pistons Europe 32% Hardparts 45% w/o Op. margin: 8.7% 16% B
Slide 25: Drivers for growth
Appendix: Rheinmetall Automotive Drivers for growth Rising global fleet and regulatory restrictions are supporting our growth Light vehicle production grows Emission thresholds decrease Stricter emission testing million vehicles per year WLTP CO2 NOx 151 in g/km in mg/km +2% 124 -24% -56% 112 102 76
Slide 26: Our portfolio addresses the three basic drivers
Appendix: Rheinmetall Automotive Our portfolio addresses the three basic drivers Mechatronics Hardparts Aftermarket Coolant pumps Emission Bearings Pistons Exhaust gas recirculation Leverage platform Coolant pumps Increase regional presence Efficiency Lightweight products Variable Valve train Coolan
Slide 27: Strategic goal to reduce ICE exposure
Appendix: Rheinmetall Automotive Strategic goal to reduce ICE exposure Actual sales split Strategic sales split Combustion Engines Combustion Engines 67% LV 50% 13% Truck 40% LV 10% Truck E-Mobility ICE related: Electric Drive pistons Hybrid Drive 2017 engine blocks 2040 e.g.: EGRs E-engine housing
Slide 28: Summary Rheinmetall Automotive
Summary Rheinmetall Automotive Executive Summary Legislation is driving the business Gain bigger share in NEV market 1 International market offer great Growth strategy outperforming 2 growth potentials Chinese market development E-Mob and Diesel impacts Build up strong local engineering / Preserve t
Slide 29: Rising global light vehicle production
Appendix: Rheinmetall Automotive Rising global light vehicle production Light vehicle production 2017-2021 CAGR in % / in million units Europa** Germany NAFTA Asia* +1.1% +0.5% +0.8% +4.0% Japan +2.1% China Global -1.5% 104 NAFTA 95 +3.1% 17 Europe 17 17 Germany 16 6 6 17 Asia 14 Japan 28 31 * witho
Slide 30: Governments will continue to demand reduction of CO2 emissions
Appendix: Rheinmetall Automotive Governments will continue to demand reduction of CO2 emissions CO2 emission in g/km India 113 122 117 Europe 95 97 2020 *Note that Japan has already exceeded its 2020 statutory target, as of 2013 Source: ICCT © Rheinmetall AG / Corporate Presentation June 2018 30
Slide 31: CO2 Reduction with Automotive Products – Gasoline Engine Vehicle
Appendix: Rheinmetall Automotive Efficiency CO2 Reduction with Automotive Products – Gasoline Engine Vehicle 130 g 95 g CO2/km CO2/km 2015 2020 -2 g CO2/km -2 g CO2/km Reference model -7 g CO2/km Lightweight design parts Electr. 1.4L 4-cylinder -3 g CO2/km Variable valve train EGR system TC DI gasol
Slide 32: LV Diesel exposure limited; powertrain neutrality is the strategic target
Appendix: Rheinmetall Automotive LV Diesel exposure limited; powertrain neutrality is the strategic target Combined global engine production forecast* Automotive sales distribution by engine type** 100 30 LV Non Diesel units 80 25 Core Diesel 20 60 LV Diesel share in % Others 15 7% 40 18% 10 Fuel 20
Slide 33: Broad product range for alternative drive systems
Appendix: Rheinmetall Automotive Broad product range for alternative drive systems Enlarging the traditional product portfolio for combustion engines … + … by products for hybrid and electric engines Solenoid valves Actuators Structural components Electric throttle bodies Engine bearings Battery box
Slide 34: E-mobility competence underlined by contracts and initiatives
Appendix: Rheinmetall Automotive E-mobility competence underlined by contracts and by initiatives for new solutions Contract volume for electric vehicles (EV)* Product Volume Contract duration (Ø) E-Taxi London Battery EV ~€300m 6 – 8 years Pump technology for pure electric taxis (Plugin) Hybrid EV
Slide 35: Electrification and downsizing require more sophisticated products
Appendix: Rheinmetall Automotive Electrification and downsizing require more sophisticated products Coolant pump Exhaust gas recirculation Valve, cooler, bypass and Mechanical >6x Electrical Valve >3x bypass actuator Oil pump Piston Mechanical >3x Variable Aluminum >3x Steel © Rheinmetall AG / Corpo
Slide 36: Automotive in China
Appendix: Rheinmetall Automotive Automotive in China 50/50 joint ventures Wholly Foreign-Owned Enterprises JV subsidiary with HASCO (SAIC group) (100% Rheinmetall Automotive) Castings (ATAG) Pistons (KSSP) Castings (KPSNC) Pumps (PHP) Aftermarket Pierburg Large-bore pistons Pumps (PMP Ch.) 2014 1997
Slide 37: More than 40 locations with high focus on local needs
Appendix: Rheinmetall Automotive Markets with different growth focus: More than 40 locations with high focus on local needs Germany USA Tamm Auburn Hills Berlin Greensburg Dormagen Greenville (Fountain Inn) Hartha Marinette Langenhagen Neckarsulm (Headquarter) Mexico Neuss Celaya Neuenstadt Papenbur
Slide 38: Summary: Markets and Customers, Performance and Products
Appendix: Rheinmetall Automotive Summary Markets and Customers: Markets in better shape than anticipated, global LV production will grow by >2% Our global production and technology footprint will follow local needs Rheinmetall Automotive intends to outperform markets in future, too Performance and P
Slide 39: Defence Appendix
DEFENCE APPENDIX © Rheinmetall AG / Corporate Presentation June 2018 39
Slide 40: Defence is a leading supplier with an increasing international presence
Appendix: Rheinmetall Defence Defence is a leading supplier with an increasing international presence Key Figures Structure Sales by region Sales by division Sales: €3.0bn Weapon and Ammunition RoW Vehicle Germany Systems Weapon and Weapon and Protection -8% Ammunition Op. result: €174m 26% Ammuniti
Slide 41: Strategic goals of Rheinmetall Defence
Appendix: Rheinmetall Defence Strategic goals of Rheinmetall Defence Strategic goals Entering new markets Enlarging internationalization Strategic partnerships to gain Form partnerships with local access to new markets suppliers to provide local content Target markets close to traditional markets, e
Slide 42: Defence is at the beginning of long-lasting market growth
Appendix: Rheinmetall Defence Defence is at the beginning of long-lasting market growth Defence budgets development 2017 – 2021 in % p.a. Europe Germany North America +3.5% +3.8% +1.0% MENA Asia +3.4% +4.9% Latin America Global Australia +3.8% +2.1% Global military expenditures +4.4% in USD bn 2017:
Slide 43: Demand for defence products has entered a long-term growth cycle
Appendix: Rheinmetall Defence Demand for defence products has entered into a long-term growth cycle Change in macro Investment Islamist Crimea Geopolitical environment backlog Terror Annexation tensions Rising budgets and growing project portfolios Germany announced Franco-German NATO returns to Aus
Slide 44: Drivers behind German budget increase
Appendix: Rheinmetall Defence Drivers behind German’s budget increase “Turnarounds” in Germany Framework nation concept triggers standardization of Personnel: equipment Mid-term return to 220,000 soldiers Material: 100% equipment level and additional division Finance: Increase of defence budget 24%
Slide 45: German defence policy: Additional structural demand under discussion
Appendix: Rheinmetall Defence German defence policy: Additional structural demand of German army under discussion Vehicles – mid-to-long term potential Fox (400 vehicles) Boxer (300-400 vehicles) Trucks (> 10.000 vehicles) Puma (~250 vehicles) Equipment and ammunition – multi billion programs NNBS (
Slide 46: Trend reversal en route with few NATO members complying with targets
Appendix: Rheinmetall Defence Trend reversal en route with few NATO members complying with targets German defence expenditure* NATO expenditure as % share of GDP vs in €m equipment share in defence expenditure in % 35 CAGR +2.9% Slovak Republic Montenegro Luxembourg United Kingdom Bulgaria * +4.0% 3
Slide 47: Vehicle portfolio is highly competitive and state-of-the-art
Appendix: Rheinmetall Defence Vehicle portfolio is highly competitive and state-of-the-art technology Successful participation in domestic and international vehicle tenders Land 121 - AUS Puma - D Boxer – NL/D Trucks - D Large potential from multiple tenders (top projects only) Land 121 5b & Challen
Slide 48: 2017 marked by important strategic partnerships
Appendix: Rheinmetall Defence 2017 marked by important strategic partnerships Joint bid for MoTaKo /MoTIV Focus on cooperation regarding Complete solution consisting of the CH-53K project the successor system for the helicopters as well as further services in Scope German tactical air defence mainte
Slide 49: Army 4.0: D-LBO will propel the German Army into the digital future
Appendix: Rheinmetall Defence Army 4.0: D-LBO will propel the German Army into the digital future JV-share and core capabilities Rheinmetall (74.9%): Rohde & Schwarz (25.1%): Command systems Communication system Cross-functional operator architecture, IP based solution interface for voice and data t
Slide 50: Army 4.0: MoTaKo/MoTIV: What supports our ambition?
Appendix: Rheinmetall Defence Army 4.0: MoTaKo/MoTIV: What supports our ambition? Exclusive Rohde &Schwarz is the key partner partnership for all communication equipment Top competency: Long-term partnership for all kind of Vehicle upgrades system upgrades Integrated Our infantry fighting vehicles c
Slide 51: Lockheed Martin partners with Rheinmetall
Appendix: Rheinmetall Defence Lockheed /Rheinmetall: Lockheed Martin partners with Rheinmetall to offer the “full package” Strategic teaming agreement Rheinmetall teams up with Lockheed Sikorsky to introduce the CH-53K as the heavy lift helicopter for the Bundeswehr Rheinmetall contributes enhanced
Slide 52: Raytheon/Rheinmetall: System house approach for air defence
Appendix: Rheinmetall Defence Raytheon/Rheinmetall*: System house approach for ground based air defence Rheinmetall is a system provider for NNBS and Raytheon‘s national partner for the modernization of Patriot Rheinmetall is the only provider of supplier independent effector integration Rheinmetall
Slide 53: Defence industry in Europe
Appendix: Rheinmetall Defence Defence industry in Europe Governmental shareholding restricts room for cross-border consolidation 49.9% Kongsberg Big common armament programs could be 50% Nammo Patria catalysts for further consolidation Saab Cobham BAE Systems Chemring Rheinmetall CH PL TUR RO Rheinm
Slide 54: Growing at improved performance
Growing at improved performance GROWTH Long-term growth trend fully intact Defence business growth returns to double digit %-rate PERFORMANCE Profitability improved on product mix and higher leverage Lagging business in Electronic Solutions is stabilizing OUTLOOK Well on track to enter target corrid
Slide 55: Appendix
APPENDIX © Rheinmetall AG / Corporate Presentation June 2018 55
Slide 56: Select key data: outlook 2018
Appendix: Rheinmetall Group Select key data: outlook 2018 Rheinmetall Group In % of sales Automotive Defence Holding cost ~€30m (PY: €23m) Capex ~5.5 - 6.0% ~3.5 - 4.5% Tax rate <30% (PY: 27%) D&A ~5.5% ~3 - 3.5% Interest expense On previous year level R&D ~5 - 5.5% ~2 - 2.5% CTA funding €40m in Q1
Slide 57: ESG with high importance for Rheinmetall
Appendix: Rheinmetall Group ESG with high importance for Rheinmetall Environment Social Governance • Reduction of the ecological footprint • Clear statement against cluster munition • Transparency towards customer, • Decrease of energy needed • Promoting education and training investors and other st
Slide 58: Management Structure
Appendix: Rheinmetall Group Management Structure Board of Directors (Group) Peter S. Krause Horst Binnig Armin Papperger Helmut P. Merch Human Resources Board Member CEO CFO Management Board Management Board (Automotive) (Defence) Armin Papperger CEO Horst Binnig Olaf Hedden Peter S. Krause Dr. Alex
Slide 59: Continuing ROCE improvement
Appendix: Rheinmetall Group Continuing ROCE improvement ROCE in % Pre-tax WACC 20% (2017): 19.0% 18.8% 18.7% 15% 16.7% 13.4% 12.3% 10.6% 10.5% Group 11.8% 10% 10.7% 9.8% 4.7% 5% 3.9% 6.1% 0.3% 0% -4.6% -5% 2013 2014 2015 2016 2017 Group Defence Automotive © Rheinmetall AG / Corporate Presentation Ju
Slide 60: Stronger net cash position
Appendix: Rheinmetall Group Stronger net cash position Debt composition and maturity profile Moody’s Coverage and Leverage in €m ∑ 828 70% 20% Other & Leasing 2018 2019 2020 2021 2022 2023 2024ff. 167 50% 10% 131 Bank loans 35 30% 58 66 0% 10% 122 280 Promissory notes -10% -10% 2013 2014 2015 2016 2
Slide 61: Financial solidity materially improved
Appendix: Rheinmetall Group Financial solidity materially improved Drivers Equity and Equity ratio EUR m % 2,000 40% 1,500 30% Confidence increased by delivery on our targets 28% 27% 29% 32% 31% 1,000 20% 23% Capitalizing on our restructuring efforts 500 10% 0 0% Equity ratio further improved 2013 2
Slide 62: Group 2013 – 2017: Key figures
Appendix: Rheinmetall Group Group 2013 – 2017: Key figures In €m 2013 2014 2015 2016 2017 Balance sheet Total assets 4,866 5,271 5,730 6,150 6.186 Shareholder‘s equity 1,339 1,197 1,562 1,781 1,955 Equity ratio (in %) 27.5 22.7 27.3 29.0 31.6 Pension liabilities 891 1,121 1,128 1,186 1,080 Net finan
Slide 63: Segments 2012 – 2017 Key figures
Appendix: Rheinmetall Group Segments 2012 – 2017 Key figures AUTOMOTIVE DEFENCE 2013 2014 2015 2016 2017 in EUR million 2013 2014 2015 2016 2017 2,270 2,466 2,621 2,670 2,922 Order intake 3,339 2,812 2,693 3,050 2,963 392 416 445 459 520 Order backlog (Dec. 31) 6,050 6,516 6,422 6,656 6,416 2,262 2,
Slide 64: Quarterly development Group
Appendix: Rheinmetall Group Quarterly development Group Sales Operational results in €m in €m 1,722 169 1,459 1,349 1,366 1,260 1,011 114 731 97 612 682 509 84 24 46 50 47 737 728 684 712 751 62 67 63 65 57 -1 -10 -7 -6 -8 -13 -2 -5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4
Slide 65: Free Cash Flow summary Group
Appendix: Rheinmetall Group Free Cash Flow summary Group Q1 Q2 Q3 Q4 Q1 Δ Q1 in €m 2017 2017 2017 2017 2018 '17/'18 Group Net Income 28 51 43 130 27 -1 Amortization / depreciation 57 55 59 70 64 7 Change in pension accruals -34 -3 1 -8 -42 -8 Cash Flow 51 103 103 192 49 -2 Changes in working capital
Slide 66: Quarterly development Automotive
Appendix: Rheinmetall Group Quarterly development Automotive Sales by division Operational results by division in €m in €m 737 751 728 67 684 712 63 65 62 57 425 407 429 382 407 47 44 43 46 40 249 251 232 236 254 17 16 13 18 14 83 93 95 87 92 7 9 9 8 8 -20 -23 -25 -18 -24 -5 -5 -5 -5 -5 Q1 2017 Q2 2
Slide 67: Free Cash flow summary Automotive
Appendix: Rheinmetall Group Free Cash flow summary Automotive Q1 Q2 Q3 Q4 Q1 Δ Q1 in €m 2017 2017 2017 2017 2018 '17/'18 Net income 46 50 25 44 45 -1 Amortization / depreciation 32 32 37 39 36 4 Change in pension accruals - - - - -20 - Cash Flow 78 82 62 83 61 3 Changes in working capital and other
Slide 68: Quarterly development Defence
Appendix: Rheinmetall Group Quarterly development Defence Sales by division Operational earnings by division in €m in €m 114 1,011 46 77 431 731 682 612 28 19 248 24 305 509 191 247 12 139 138 165 6 141 25 126 14 13 11 423 0 350 337 370 1 -1 -1 -1 297 -4 -7 -7 -19 -67 -52 -101 -90 -53 -10 -1 Q1 2017
Slide 69: Free Cash flow summary Defence
Appendix: Rheinmetall Group Free Cash flow summary Defence Q1 Q2 Q3 Q4 Q1 Δ Q1 in €m 2017 2017 2017 2017 2018 '17/'18 Net income -16 8 32 76 -21 -6 Amortization / depreciation 24 22 21 29 26 2 Change in pension accruals -3 -6 2 -2 -2 1 Cash Flow 5 24 55 103 3 -3 Changes in working capital and other
Slide 70: Income statement Group
Appendix: Rheinmetall Group Income statement Group In €m In €m Income Statement Q1 2017 Q1 2018 Δ Q1 2017 Q1 2018 Δ Sales 1,349 1,260 -89 67 120 53 Total operating performance 1,416 1,380 -36 Net operating income (EBIT) 50 47 -3 Net interest income - 12 - 10 2 Other operating income 27 33 6 Earnings
Slide 71: Cash flow statement Group
Appendix: Rheinmetall Group Cash flow statement Group In €m Cash Flow Statement Q1 2017 Q1 2018 Δ Q1 2017 Q1 2018 Δ Net Income 28 27 -1 Dividends paid out by Rheinmetall AG 0 0 0 Amortization, depreciation and impairment 57 64 7 Other profit distributions -5 -2 3 Dotation of CTA -30 -40 -10 Sale of
Slide 72: Balance Sheet Group
Appendix: Rheinmetall Group Balance Sheet Group Balance Sheet In €m 31.12.'17 01.01.'18 31.03.'18 Δ 31.12.'17 01.01.'18 31.03.'18 Δ Non-current assets 2,712 2,940 2,931 -9 Equity 1,955 1,950 1,968 17 Intangible assets 729 729 770 41 Share capital 112 112 112 0 Usage rights 155 163 8 Additional paid-
Slide 73: Glossary
Appendix: Rheinmetall Group Glossary bn billions m millions bp basis points NNBS Short range air defence CAGR compounded average growth rate NWC Net working capital CTA Contractual trust agreement OEM Original Equipment Manufacturer D&A Depreciation & Amortization Operating FCF Operating free cash f
Slide 74: Next events and IR contacts
Appendix: Rheinmetall Group Next events and IR contacts Events 2018 IR Contacts Franz-Bernd Reich Conference Deutsche Bank Berlin 6-7 June Head of IR Eurosatory Investor Meeting Paris 13 June Tel: +49-211 473-4718 Email: franz-bernd.reich@rheinmetall.com Berenberg US RS Toronto/Chicago/Los 19-22 Jun
Slide 75: 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
Slide 76: © Rheinmetall AG / Corporate Presentation June 2018
© Rheinmetall AG / Corporate Presentation June 2018 76