Rheinmetall Ag · XETR:RHM
Rheinmetall — H1 2013 Earnings Presentation
34 slides from Rheinmetall's earnings presentation, Aug 9, 2013
Slide 1: International Partner for Security and Mobility
H1 2013 I Düsseldorf, 9 August 2013 International Partner for Security and Mobility © Rheinmetall 2013
Slide 2: Financial highlights
Rheinmetall Group Financial highlights Sales down by 8% (€ - 191 million) to € 2,062 million Operational earnings* positive at € 29 million, but below previous year’s level of € 92 million Free cash flow from operations at € - 174 million, i.e. better by € 123 million (+ 42%) Net financial debt impr
Slide 3: Operational highlights
Rheinmetall Group Operational highlights Defence Automotive Again strong order intake, e.g. Leopard 2 Stable sales despite a shrinking European and tank howitzer components for Qatar market Australian order for military trucks recently Regarding sales and operational earnings, received with a volume
Slide 4: Rheinmetall 2015: Implementation of the strategic key points in progress
Rheinmetall Group “Rheinmetall 2015” Implementation of the strategic key points in progress • New Defence sales offices in Russia and Saudi Arabia Internationalization • New activities in China: production facility for large-bore pistons (100% ownership), JV for pumps, production facility for EGR va
Slide 5: Cost efficiency: Status quo of restructuring
Rheinmetall Group Cost efficiency Status quo of restructuring Costs Costs 2013 Total reduction Full annual 2012 of employees savings H1 H2e until 2015 from 2015 Combat Systems (esp. Tracked Vehicles) 17 1 150 - 170 Electronic Solutions (esp. Air Defence Zurich) 3 0 100 - 130 Wheeled Vehicles (esp. L
Slide 6: Looking at the markets: Reduced defence spending determines market environment
Rheinmetall Defence Looking at the markets Reduced defence spending determines market environment Defence spending by region in US$ billion Still a challenging market environment -2% 1,592 1,568 Global defence spending is expected to Rest of the World 109 109 decrease in 2013 +5% Asia 392 Lower proc
Slide 7: Looking at the markets: Recovery of global markets still expected for H2 2013
Rheinmetall Automotive Looking at the markets Recovery of global markets still expected for H2 2013 Global and European production of light vehicles in thousand units Global LV production still on growth path +1% +2% 40,783 41,237 81,456 Light vehicle (LV) production globally 79,718 increasing by 2%
Slide 8: H1 2013 in detail
Rheinmetall Group H1 2013 in detail Sales decreased, EBIT down, free cash flow from operations improved Rheinmetall Group H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Sales 2,253 2,062 - 191 Operational earnings (EBIT before special items) 92 29 - 63 Special items (one-offs, restructuring costs)
Slide 9: Rheinmetall Defence
RHEINMETALL DEFENCE © Rheinmetall 2013
Slide 10: Defence in a transition year
Rheinmetall Defence Defence in a transition year Encouraging order situation, but earnings squeezed Rheinmetall Defence H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Order intake 1,138 1,282 + 144 Order backlog 4,589 5,383 + 794 Sales 1,010 834 - 176 Operational earnings (EBIT before special item
Slide 11: Order intake by region
Rheinmetall Defence Order intake by region Stronger business especially in the growth markets Order intake by region in € million resp. % +13% 1,282 1,138 Germany 22% 34% Germany Europe* 31% 12% 54% Asia/Middle East Europe* 57% 23% Asia/Middle East thereof: Qatar 66% 31% 46% 37% Rest of the World Re
Slide 12: Weak operational performance
Rheinmetall Defence Weak operational performance Decline in earnings mainly caused by lower sales Sales Defence in € million Operational earnings Defence in € million -176 -73 Combat Systems 1.010 25 Electronic Solutions 22* 2* Wheeled Vehicles Consolidation/Others 834 22 477 Reasons for weaker earn
Slide 13: Big success in Australia
Rheinmetall Defence Big success in Australia Wheeled Vehicles receives truck order worth € 1.1 billion, booked in Q3 Australia as a new international customer for Wheeled Vehicles Delivery of 2,500 protected and unprotected logistic vehicles with different configurations Roughly 1,000 vehicles will
Slide 14: Rheinmetall Automotive
RHEINMETALL AUTOMOTIVE © Rheinmetall 2013
Slide 15: Stable sales
Rheinmetall Automotive Stable sales EBIT mainly affected by lower sales in Hardparts and restructuring costs Rheinmetall Automotive H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Sales 1,243 1,228 - 15 Operational earnings (EBIT before special items) 81 77 -4 Special items (one-offs, restructuring
Slide 16: Sales by region
Rheinmetall Automotive Sales by region Slight decrease of sales in Europe partially compensated by other markets Sales by region in € million -1% 1,243 1,228 Germany Germany 284 285 73% 72% Europe* Europe* 618 597 Asia (w/o China JVs) Americas Americas Rest of 222 27% 229 28% the world 106 105 13 12
Slide 17: Stable operational performance
Rheinmetall Automotive Stable operational performance Earnings impacted by lower Hardparts sales Sales Automotive in € million Operational earnings Automotive in € million -15 -4 1.243 1.228 81* 77 Reasons for weaker earnings 578 535 35 23 Hardparts: Sales down by € 43 million Mechatronics: Higher s
Slide 18: China still a booming market for mobility
Rheinmetall Automotive China still a booming market for mobility Joint ventures and subsidiaries with sustainable growth Mechatronics: New facility for the production of EGR valves opened in Kunshan in 2013 New joint venture with Chinese SAIC (50%/50%) for Yantai pumps recently founded, start of pro
Slide 19: Outlook
OUTLOOK © Rheinmetall 2013
Slide 20: Outlook 2013 updated
Rheinmetall Group Outlook 2013 updated Defence reduced, Automotive confirmed Sales EBIT in € billion in € million Original Updated Original Updated Defence 2.4 2.3 130** 60 - 70** Restructuring costs 40 - 50 40 - 50 Automotive 2.4 - 2.5 2.4 - 2.5 140** 140** Restructuring costs 20 - 30 35 * Includin
Slide 21: Appendix
APPENDIX © Rheinmetall 2013
Slide 22: Income statement
Appendix: Rheinmetall Group Income statement Rheinmetall Group H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Sales 2,253 2,062 - 191 EBITDA 219 81 - 138 EBITDA margin in % 9.7 3.9 - 5.8pp EBIT (reported) 123 - 18 - 141 EBIT margin (reported) in % 5.5 - 0.9 - 6.4pp Special items (One-offs, restruc
Slide 23: Income statement
Appendix: Rheinmetall Group Income statement Rheinmetall Group H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 EBIT (reported) 123 - 18 - 141 Interest - 36 - 36 +0 EBT 87 - 54 - 141 Taxes - 15 9 + 24 Group net income 72 - 45 - 117 Minority interests +2 + 20 + 18 Group earnings (after minorities) 74
Slide 24: Cash flow statement
Appendix: Rheinmetall Group Cash flow statement Rheinmetall Group H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Group net income 72 - 45 - 117 Amortization / depreciation 96 99 +3 Change in pension accruals -6 -8 -2 Cash flow 162 46 - 116 Changes in working capital and other items - 362 - 131 + 2
Slide 25: Comparison Q2 2012 vs. Q2 2013
Appendix: Rheinmetall Group Comparison Q2 2012 vs. Q2 2013 Rheinmetall Group Q2 2012* Q2 2013 ∆ Q2 2013/ in € million Q2 2012 Sales 1,144 1,100 - 44 Operational earnings (EBIT before special items) 49 43 -6 Special items (One-offs, restructuring costs) 31 - 42 - 73 EBIT (reported) 80 1 - 79 Group ne
Slide 26: Key figures Defence by division
Appendix: Rheinmetall Defence Key figures Defence by division (operational before special items) Combat Systems Electronic Solutions Wheeled Vehicles -176 -119 -19 324 -60 Sales Drones 1,010 834 477 Drones (divested 358 (divested 302 305 265 30 June) 30 June) 205 22 22 H1 2012 H1 2013 H1 2012 H1 201
Slide 27: Comparison Q2 2012 vs. Q2 2013 Defence
Appendix: Rheinmetall Defence Comparison Q2 2012 vs. Q2 2013 Rheinmetall Defence Q2 2012* Q2 2013 ∆ Q2 2013/ in € million Q2 2012 Order intake 706 866 + 160 Order backlog 4,589 5,383 + 794 Sales 539 471 - 68 Operational earnings (EBIT before special items) 21 -5 - 26 Special items (One-offs, restruc
Slide 28: Development Q2 2013
Rheinmetall Defence Development Q2 2013 Operational earnings benefit from higher sales Sales Defence in € million Operational earnings Defence in € million +108 471 +38 7 1 363 210 -4 -9 -23 148 -5 176 -7 129 -13 98 107 0 -12 -22 -43 Q1 2013 Q2 2013 Q1 2013 Q2 2013 Combat Systems Electronic Solution
Slide 29: Cash flow Defence
Appendix: Rheinmetall Defence Cash flow Defence Rheinmetall Defence H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Net income 39 - 74 - 113 Amortization / depreciation 43 44 +1 Change in pension accruals -5 -3 +2 Cash flow 77 - 33 - 110 Changes in working capital and other items - 296 - 84 + 212 N
Slide 30: Key figures Automotive by division
Appendix: Rheinmetall Automotive Key figures Automotive by division (operational before special items) Hardparts Mechatronics Motor Service -15 -43 +25 1,243 1,228 -1 Sales 578 590 535 565 137 136 H1 2012 H1 2013 H1 2012 H1 2013 H1 2012 H1 2013 H1 2012 H1 2013 -4 EBIT -1 -12 before 81 +3 special 35
Slide 31: Comparison Q2 2012 vs. Q2 2013 Automotive
Appendix: Rheinmetall Automotive Comparison Q2 2012 vs. Q2 2013 Rheinmetall Automotive Q2 2012* Q2 2013 ∆ Q2 2013/ in € million Q2 2012 Sales 605 629 + 24 Operational earnings (EBIT before special items) 37 46 +9 Special items (One-offs, restructuring costs) 0 - 17 - 17 EBIT (reported) 37 29 -8 Empl
Slide 32: Development Q2 2013
Rheinmetall Automotive Development Q2 2013 Sales and earnings improved in the second quarter Sales Automotive in € million Operational earnings Automotive in € million +30 +15 629 46 599 13 262 273 31 10 22 288 302 16 10 66 70 5 1 -17 -16 0 Q1 2013 Q2 2013 Q1 2013 Q2 2013 Hardparts Mechatronics Moto
Slide 33: Cash flow Automotive
Appendix: Rheinmetall Automotive Cash flow Automotive Rheinmetall Automotive H1 2012* H1 2013 ∆ H1 2013/ in € million H1 2012 Net income 53 34 - 19 Amortization / depreciation 53 55 +2 Change in pension accruals -3 -4 -1 Cash flow 103 85 - 18 Changes in working capital and other items - 112 - 52 + 6
Slide 34: Disclaimer
Rheinmetall Group 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