Rheinmetall Ag · XETR:RHM
Rheinmetall — Investor Day (November 2017)
48 slides from Rheinmetall's investor day presentation, Nov 21, 2017
Slide 1: Capital Markets Day 2017
Capital Markets Day 2017 Horst Binnig, CEO Automotive Rheinmetall AG, 21 November 2017
Slide 2: Review 2016/17
REVIEW2016/17 © Rheinmetall AG I 21. November 2017 2
Slide 3: Look back CMD 2016 in Düsseldorf: Rheinmetall Automotive is well prepared
Look back CMD 2016 in Düsseldorf: Last Chart: Rheinmetall Automotive is well prepared Markets and Customers: • We expect a stable market with lower growth rates • China will be the growth driver, Europe and NAFTA might weaken • Brazil seems to have touched bottom line Performance and Products: • Mec
Slide 4: Automotive in a ten year view: Passion for performance drives us
Automotive in a ten year view Achieving and maintaining the target margin level 8.3% 8.4% 8.4% ~ 8.5% 7.5% 7.0% 6.5% 5.9% 4.1% Recovery from the crisis Performance driven best-cost concept/processes Passion for performance drives us! Positive impact of restructuring measures out of 2008 Maintaining
Slide 5: Market Insights
MARKETINSIGHTS © Rheinmetall AG I 21. November 2017 5
Slide 6: Highlights Rheinmetall Automotive Q3 2017
Highlights Rheinmetall Automotive Q3 2017 Market outperformed, margin improved Q3: Sales rose by 6% to €684 m, FX adjusted 7.3% (9M: Sales rose by 8% to €2.150 m, FX adjusted 7.5%) Q3: Operating result grew by 12% to €57 m (9M: Operating result grew by 14% to €186 m) Q3: Operating margin increased b
Slide 7: Operational leverage: Mechatronics and Hardparts drive the third quarter
Operational leverage Mechatronics and Hardparts drive the third quarter Sales Automotive Operating result Automotive Reasons for result development in EUR million in EUR million +6% +12% 684 Mechatronics 57 643 Strong demand for fuel 51 optimization as main driver; emission reduction on solid level
Slide 8: Hardparts streamlined its global footprint
Hardparts streamlined its global footprint Financial impact One time cost of around €22 m: €17 m for severance payments (cash-effect in 2018) €5 m asset impairment (non-cash effect) Annual savings of around €10 m expected mid-term Hardparts site © Rheinmetall AG I 21. November 2017 8
Slide 9: Global Mega Trends… are still valid
Global Mega Trends… …are still valid © Rheinmetall AG I 21. November 2017 9
Slide 10: Engine efficiency as a driver of growth
Engine efficiency as a driver of growth Around the globe, rules on CO2 emissions are becoming more and more stringent Grams CO2 per kilometer, normalized to NEDC Liters per 100 kilometers (gasoline equivalent) © Rheinmetall AG I 10
Slide 11: Automotive Strategy
AUTOMOTIVESTRATEGY © Rheinmetall AG I 21. November 2017 11
Slide 12: Sales split Rheinmetall Automotive: Vision 2025+
Sales split Rheinmetall Automotive Vision 2025+ Emissions New & Efficiency Business E-Mobility © Rheinmetall AG I 21. November 2017 12
Slide 13: Growth of electric vehicles/hybrids
Growth of electric vehicles/hybrids Based on LV production worldwide (in m) 151 124 112 75.5 102 96 85 89.5 89 92 75.5 39 22.5 4 13 2017 2020 2025 2030 2040 E-Vehicles/Hybrids Combustion engines Source: IHS © Rheinmetall AG I 21. November 2017 13
Slide 14: Sales by segment 2017
Sales by segment 2017 Combustion Engines 75% LV 10% Truck 85% 15% Non-Combustion Business Continuous Casting MIR, LB Aftermarket Others Image source Getty Images, Data based on fiscal 2016 © Rheinmetall AG I 21. November 2017 14
Slide 15: Sales by segment 2040
Sales by segment 2040 Combustion Engines 40% LV 30% 10% Truck New Business Electric Drive (thereof just 30% Hybrid Drive 30% ICE related) … 20% 20% Non-LV Business Continuous Casting MIR, LB Aftermarket Others Image source Getty Images, Data based on fiscal 2016 © Rheinmetall AG I 21. November 2017
Slide 16: Scenario 2040 vehicle production
Scenario 2040 vehicle production The internal combustion engine isn’t dying, but it now has competition 150 120 EV Fuel Cell EV EV PHEV gasoline 90 PHEV diesel Diesel hybrid 60 Gasoline hybrid With CNG/LPG 30 combustion engine Diesel Gasoline 0 9% 2000 2010 2017 2020 2030 2040 Source: Vortrag Dr. Ro
Slide 17: Rheinmetall Automotive worldwide: more than 40 locations
Rheinmetall Automotive worldwide: 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 (Headquarters) Mexico Neuss Celaya Neuenstadt Papenburg Brazil St. Leon-Rot Walldürn Nova
Slide 18: E-mobility@Rheinmetall Automotive: orders close to €500 million
E-mobility@Rheinmetall Automotive Electric vehicle orders close to €500 million E-Taxis in London Battery cell boxes Electric engine housing Electric engine housing for Pump technology for Aluminum battery boxes for German premium OEM to pure electric taxis German premium OEM serve the Chinese marke
Slide 19: Sales split Rheinmetall Automotive: Vision 2025+
Sales split Rheinmetall Automotive Vision 2025+ Emissions New & Efficiency Business E-Mobility © Rheinmetall AG I 21. November 2017 19
Slide 20: New Business: AMPRIO
AMPRIO New Business: © Rheinmetall AG I 21. November 2017 20
Slide 21: E-bikes becoming increasingly popular
AMPRIO E-bikes becoming increasingly popular 2016 605,000 Development of e-bike sales (volume) in Germany and their share of sold bicycles 2010 200.000 5% 15% 2010 2016 Sources: ZIV, Allianz (Germany) and Cycling News Industry (ww) © Rheinmetall AG I 21. November 2017 21
Slide 22: Market Potential of Bicycles and Pedelecs (units)
AMPRIO Market Potential of Bicycles and Pedelecs (units) Germany EU 28 WW n.a. 133 Mio. n.a. ~ 20 Mio. ~ 4.5 Mio. Bicycles 4.1 Mio. 52.5 Mio. 1.8 Mio. Pedelecs 5.8 Mio. 32 Mio. 0.6 Mio. 1.7 Mio. 2016 2023 2016 2023 2016 2023 Update 10/2017, Sources: ZIV, Allianz (Germany) and Cycling News Industry (
Slide 23: Summary: Markets and Customers, Performance and Products
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 Products: Sales growth at Mechatro
Slide 24: Just right!
Not too early … Not too late … Just right! © Rheinmetall AG I 24
Slide 25: Emissions & Efficiency
EMISSIONS&EFFICIENCY Capital Markets Day 2017 Heinrich Dismon, CTO Automotive © Rheinmetall AG I 21. November 2017 25
Slide 26: Stricter Emission and Fuel Consumption Standards
Stricter Emission and Fuel Consumption Standards Emissions and Efficiency Euro 6 c,d WLTP RDE Soruce: Auto Service Praxis New regulation of PM emissions Increased duration, speed and Real driver behavior for gasoline engines acceleration compared to NEDC Real ambient conditions including Introductio
Slide 27: Stricter Emission and Fuel Consumption Standards
Stricter Emission and Fuel Consumption Standards Emissions and Efficiency Emission Compliance – A Basic Requirement of the Market! More or Better Fuel Efficiency – Leads to Differentiation in the Market! © Rheinmetall AG I 21. November 2017 PM: Particulate Matter, WLTP: Worldwide harmonized light ve
Slide 28: The ICE – Challenges & Potentials to Close the CO2 Gap
A Simulation Approach based on CO2 Emission Legislation (EU) The ICE – Challenges & Potentials to Close the CO2 Gap Actions to Assumptions: 130 close CO2 Gap • Cycle NEDC • Steady state ICE operation Conventional 95 Actions @ bsfc, opt. 108 • Recuperation, 85% 68- 92 72 Portfolio • Vehicle mass: 81
Slide 29: CO2 Reduction with Automotive Products – Gasoline Engine Vehicle
Efficiency CO2 Reduction with Automotive Products – Gasoline Engine Vehicle 130 g 95 g CO2/km CO2/km 2015 2021 -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 gasoline engine (115kW) -3 g CO2/km El
Slide 30: Variable Valve Train – UpValve
Efficiency Variable Valve Train – UpValve Function and Application Fully variable mechatronic valve system (CVVL) Applicable to engine intake and exhaust especially for future-oriented gasoline engines Robust to high engine speeds Fuel savings by de-throttling and combustion process optimization of
Slide 31: Variable Valve Train – UpValve
Efficiency Variable Valve Train – UpValve Booked business for series production Asian customer – SOP 2020 4-cyl.-4V-turbo gasoline engine UpValve System Integrated in Gasoline Cylinder Head © Rheinmetall AG I 21. November 2017 31
Slide 32: Lightweight Design Parts – Valuable for all Vehicle and Powertrain Concepts
Efficiency Lightweight Design Parts – Valuable for all Vehicle and Powertrain Concepts Rear Axle Subframe LP Process Function and Application Structural parts and chassis assemblies for conventional and new vehicle concepts (passenger cars) Components for new energy vehicles (NEV) Weight: 18kg SOP:
Slide 33: Lightweight Design Parts – Valuable for all Vehicle and Powertrain Concepts
Efficiency Lightweight Design Parts – Valuable for all Vehicle and Powertrain Concepts Battery Box Battery Box Weight: 17kg Weight: 8kg SOP: 2018 Function and Application SOP: 2018 Structural parts and chassis assemblies for conventional and new vehicle concepts (passenger cars) Housing for e-Engine
Slide 34: Additional New Products at a Glance
Emissions and Efficiency Additional New Products at a Glance Electrical Vacuum Pump EVP 40 Electrical Vapor Pump Booked business for series production Booked business for series production SOP 2017! SOP 2018! New Side-Channel Secondary Air Pump Wastegate Actuators Gasoline Engine Customer presentati
Slide 35: E-Mobility
E-MOBILITY © Rheinmetall AG I 21. November 2017 35
Slide 36: Opportunities for all Types of Electrification
Electrification Opportunities for all Types of Electrification (Hybrid – BEV – FCEV) Technology Fields > Thermal Management > Heating / Conditioning > Comfort and Safety > Energy Storage > Propulsion System > Lightweight Design © Rheinmetall AG I 21. November 2017 36
Slide 37: Energy Efficiency: Automotive Heat-Pump Installed in EVEX 910e
Example: Automotive Heat-Pump Installed in EVEX 910e Energy Efficiency Source: WIRED; 07.04.2017 © Rheinmetall AG I 21. November 2017 37
Slide 38: Energy Efficiency: Automotive Heat-Pump
Automotive Heat-Pump Energy Efficiency Automotive heat-pump unit results Driving range comparison PTC-Heater – Automotive heat-pump 93.3 Temp. WT 2-2 range HP Temp. WT 2-1 Evaporator 79 Evaporator in out [km] 66.1 ambient- Proven range on a commercially temperature available BEV increased by +38%! T
Slide 39: E-Mobility @ Rheinmetall Automotive
E-Mobility @ Rheinmetall Automotive Established Product Portfolio Electrical Coolant Pumps Electrical Vacuum Pumps E-Mobility Competence Demonstrator Electrical Oil Pumps Electrical A/C Compressor Heat-Pump Module Electrical Coolant Valves/Systems Castings for E-motor-housings Battery Boxes (Casting
Slide 40: E-Mobility @ Rheinmetall Automotive
E-Mobility @ Rheinmetall Automotive Battery Pack Various electr. Auxiliaries Electr. Coolant Pumps & Valves Electr. Oil Pumps Electr. A/C Compressor Electr. Vacuum Pumps Electr. Air Blower for Batt.-TM … Thermal Management E-Traction Motor Components & Systems © Rheinmetall AG I 21. November 2017 40
Slide 41: E-Traction Motor
E-Traction Motor High degree of efficiency Single-tooth winding Minimized structural length Wide speed range by small winding head Reduced power losses by Scalable performance and optimized tooth geometry torque characteristics © Rheinmetall AG I 21. November 2017 41
Slide 42: Battery Pack
Battery Pack Lightweight Design 1: Protection System 1: Battery cover made of Integrated flame fiber composite material retardants Lightweight Design 2: Protection System 2: Weight optimized Load optimized lightweight aluminum cast tray with design as underfloor integrated floor cooling protection ©
Slide 43: Battery Pack
Battery Pack Safety: Thermal Conditioning: 3P12S cell configuration Optimization of the Module voltage < 60 V total pack Power: High specific energy – Flexibility: optimized ratio between Modular design for package, weight and optimal customizing capacity © Rheinmetall AG I 21. November 2017 43
Slide 44: New Business
NEWBUSINESS Capital Markets Day 2017 Heinrich Dismon, CTO Automotive © Rheinmetall AG I 21. November 2017 44
Slide 45: Open Modular System
Remote Control Unit + AMPRIO SYSTEM OVERVIEW Smartphone App Optional Display Battery Pack Open (incl. Recharger) On Tube Battery or Modular System In Tube Battery Complete system (e-motor, battery, display) or Single drive unit Drive Unit © Rheinmetall AG /I CMD 2017 45
Slide 46: Product Features Drive Unit
PRODUCT FEATURES* DRIVE UNIT Trendsetting 48V operating voltage Very high power density (W/kg) - Performance scaling - Cost efficient electronics - 250W/650W at 2,8kg Specific characteristic curve - Bike-Segment characteristic Efficient drive - Parameterizable - Efficiency-optimized - Gliding operat
Slide 47: © Rheinmetall AG I 21. November 2017
© Rheinmetall AG I 21. November 2017 47
Slide 48: 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