Rheinmetall Ag · XETR:RHM

Rheinmetall — 9M 2016 Earnings Presentation

33 slides from Rheinmetall's earnings presentation, Nov 3, 2016

  1. Slide 1: The Technology Group for Security and Mobility

    THE TECHNOLOGY GROUP FOR SECURITY AND MOBILITY Conference Call 9M 2016 Düsseldorf | November 3, 2016

  2. Slide 2: Highlights 9M 2016

    Rheinmetall Group Highlights 9M 2016 Strong top line growth, earnings improved, guidance adjusted Sales Sales increased by 9% or FX-adjusted by 10% to EUR 3,904 million Earnings Operational earnings strongly advanced from EUR 140 million to EUR 182 million EPS Earnings per share up by 17% to EUR 2.2

  3. Slide 3: Key figures 9M 2016

    Rheinmetall Group Key figures 9M 2016 in EUR million 9M 2015 9M 2016 ∆ 9M 2016 / 9M 2015 Order intake 3,756 4,340 + 584 + 16% Sales 3,582 3,904 + 322 + 9% EBITDA 288 343 + 55 + 19% EBIT 140 182 + 42 + 30% EBIT margin in % 3.9 4.7 + 0.8 pp EBT 96 140 + 44 + 46% Group net income 64 99 35 + 55% Earning

  4. Slide 4: Key figures Q3 2016 Group

    Rheinmetall Group Key figures Q3 2016 Group Rheinmetall Group in EUR million Q3 2015 Q3 2016 ∆ Q3 2016 /2015 Sales 1,188 1,305 + 117 + 10% EBITDA 110 131 + 21 + 19% EBIT (reported) 61 79 + 18 + 30% EBIT margin in % 5.1 6.1 + 1.0 pp Free Cash Flow from Operations 9 36 + 27 + 300% © Rheinmetall AG I N

  5. Slide 5: Key figures Q3 2016 per segment

    Rheinmetall Group Key figures Q3 2016 per segment Automotive Q3 2015 Q3 2016 ∆ Q3 2016 /2015 Sales 617 643 + 26 + 4% EBITDA 78 80 +2 + 3% EBIT (reported) 50 51 +1 + 2% EBIT margin in % 8.1 7.9 - 0.2pp Free Cash Flow from Operations 55 47 -8 - 15% Defence Q3 2015 Q3 2016 ∆ Q3 2016 /2015 Order intake

  6. Slide 6: Automotive

    © Rheinmetall AG I November 3, 2016 6

  7. Slide 7: Automotive Highlights 9M 2016

    Rheinmetall Automotive Highlights 9M 2016 Accelerated growth of quarterly sales, earnings remain on high level Sales increased in total by 2%, thereof Q3 alone plus 4%, Sales FX effects negligible Earnings Stable EBIT of EUR 163 million, driven by Mechatronics EBIT margin EBIT margin of 8.2% almost

  8. Slide 8: Automotive Key figures 9M 2016

    Rheinmetall Automotive Key figures 9M 2016 in EUR million 9M 2015 9M 2016 ∆ 9M 2016 / 9M 2015 Order intake 1,982 2,015 + 33 + 2% Order backlog (September 30) 441 468 + 27 + 6% Sales 1,957 1,992 + 35 + 2% EBITDA 248 253 +5 + 2% EBIT 164 163 -1 - 1% EBIT margin in % 8.4 8.2 - 0.2pp Free cash flow from

  9. Slide 9: Mechatronics and Aftermarket continue growth path

    Rheinmetall Automotive Mechatronics and Aftermarket continue growth path Earnings level stable Sales Automotive Operational earnings Automotive Reasons for earnings development in EUR million in EUR million +2% -1% Mechatronics 1.957 1.992 164 163 Strong sales drive earnings Hardparts 1.084 1.141 92

  10. Slide 10: Mechatronics with further increasing sales share

    Rheinmetall Automotive Mechatronics with further increasing sales share Automotive with expanding sales in growth regions Sales by division Sales by region Market growth* in % in EUR million +2% +2% +3% 1.957 1.992 1,957 1,992 RoW -11% 83 -19% 67 239 Asia 227 +5% +6% (w/o China JVs) 55% 312 323 57%

  11. Slide 11: Automotive LV sales development

    Rheinmetall Automotive Automotive LV sales development 9M LV-sales above global LV production Global LV production Sales Automotive LV/Non-LV in million units in EUR million Global: +3.4% 1,957 1,992 67,6 65,5 -5.4% 15,7 16,1 637 602 Non LV business Without China: 13,2 13,5 +0.9% 16,8 16,8 1,320 +5.

  12. Slide 12: Markets in focus: China

    Rheinmetall Automotive Markets in focus: China China operations with strong growth China LV production Sales* in CNY million EBIT* in CNY million in million units Sales growth in local currency in +11% +34% line with growth of LV production +11% 18.3 4,559 5,073 365 Strong and profitable growth in J

  13. Slide 13: Defence

    Rheinmetall Defence © Rheinmetall AG I November 3, 2016 13

  14. Slide 14: Defence Highlights 9M 2016

    Rheinmetall Defence Highlights 9M 2016 Strong top line growth, rising earnings, improved cash flow Order intake Continued strong order intake with + 31%; book-to-bill ratio of 1.2 Order backlog Order backlog at a high level of EUR 6.9 billion Sales Sales increased by 18% to EUR 1,912 million; FX-adj

  15. Slide 15: Defence Key figures 9M 2016

    Rheinmetall Defence Key figures 9M 2016 in EUR million 9M 2015 9M 2016 ∆ 9M 2016 / 9M 2015 Order intake 1,774 2,325 + 551 + 31% Order backlog (September 30) 6,547 6,891 + 344 + 5% Sales 1,625 1,912 + 287 + 18% EBITDA 52 98 46 + 88% EBIT - 11 32 43 + 402% EBIT margin in % - 0.7 1.7 + 2.4pp Free cash

  16. Slide 16: Top-line rose due to ramp-up of large-scale projects

    Rheinmetall Defence Top-line rose due to ramp-up of large-scale projects Turn-around in earnings Sales Defence Operational earnings Defence Reasons for earnings development in EUR million in EUR million +18% +43 Weapon and Ammunition 1,912 32 Significantly higher sales +48 1,625 720 +51% Electronic

  17. Slide 17: Growing share of Asian customers

    Rheinmetall Defence Growing share of Asian customers Regional split of order intake and order backlog Order intake by region Order backlog by region in EUR million in EUR million +31% +5% 2,325 6,891 5% 6,547 6% 18% 1,774 19% 48% 56% 44% 37% 29% America and rest of world 22% 15% 19% Asia/Middle East

  18. Slide 18: Order backlog and sales split per year

    Rheinmetall Defence Order backlog and sales split per year High order book coverage of mid-term future sales Order backlog (as of September 30) … … turning into sales in EUR million in EUR million +5% 6,891 6,547 ~3,800 ~2,100 ~950 30 Sept. 2015 30 Sept. 2016 Q4 2016e 2017e 2018e ff. © Rheinmetall A

  19. Slide 19: © Rheinmetall AG I November 3, 2016

    © Rheinmetall AG I November 3, 2016 19

  20. Slide 20: Looking ahead at Q4

    Rheinmetall Group Looking ahead at Q4 AU TO M OT I V E DEFENCE Q4 sales should grow 4-5%, slightly above global FY Q4 order intake is expected to grow, based on a high growth expectation number of small sized orders China: Continuation of the quarterly sales growth in Q4 LV production in Q4 expected

  21. Slide 21: Outlook FY 2016

    Rheinmetall Group Outlook FY 2016 Sales guidance adjusted on expected Defence performance Outlook 2016 Sales in EUR billion Operational margin in % 2015 2016e 2015 2016e August November August November Group 5.2 ~ 5.5 ~ 5.6 5.5 ~6 ~6 Automotive 2.6 ~ 2.7 ~ 2.7 8.3 ~8 ~8 Defence 2.6 ~ 2.8 ~ 2.9 3.5 ~

  22. Slide 22: Appendix

    © Rheinmetall AG I November 3, 2016 22

  23. Slide 23: Quarterly development

    Rheinmetall Group Quarterly development Sales Operational earnings in EUR million in EUR million +10% +30% 1,601 147 1,419 1,305 1,188 1,180 966 99 724 79 662 72 571 526 61 19 30 16 31 50 52 52 60 51 617 635 654 695 643 -5 -4 -7 -2 -17 -4 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015 Q1 20

  24. Slide 24: Balance sheet

    Rheinmetall Group Balance sheet in EUR million 30.09. 31.12. 30.09. ∆ 30.09.16/ 2015 2015 2016 30.09.15 Total Assets 5,230 5,730 5,857 + 627 Non-current assets 2,577 2,648 2,737 + 160 Current assets 2,653 3,082 3,120 + 467 Equity 1,256 1,562 1,527 + 271 Pension liabilities 1,106 1,128 1,309 + 203 Ot

  25. Slide 25: Cash flow statement

    Rheinmetall Group Cash flow statement in EUR million Q3 Q4 Q1 Q2 Q3 ∆ Q3 2015 2015 2016 2016 2016 2016/2015 Group net income 30 96 12 41 46 + 16 Amortization / depreciation 49 55 55 54 52 +3 Change in pension accruals 0 2 -16 2 0 0 Cash flow 79 153 51 97 98 + 19 Changes in working capital and other

  26. Slide 26: Key figures Automotive by division (9M 2015/2016)

    Rheinmetall Automotive Key figures Automotive by division (9M 2015/2016) Mechatronics Hardparts Aftermarket +2% +5% -4% +4% Sales 1,957 1,992 1,084 1,141 727 699 217 225 -1% +15% Opera- -25% -5% tional 164 163 92 106 53 40 21 20 earnings -0.8pp -0.2pp +0.8pp -1.9pp Opera- tional 8.4% 8.2% 9.3% 9.7%

  27. Slide 27: Quarterly development Automotive

    Rheinmetall Automotive Quarterly development Sales Automotive Operational earnings Automotive in EUR million in EUR million +1% +3% 695 60 635 654 643 51 617 52 52 46 397 36 333 366 380 364 26 36 27 34 237 225 231 243 225 20 16 14 11 13 74 68 69 78 78 7 6 7 8 5 1 -27 -26 -23 -24 -2 0 0 -24 -4 Q3 201

  28. Slide 28: Automotive Cash flow statement

    Rheinmetall Automotive Cash flow statement in EUR million Q3 Q4 Q1 Q2 Q3 ∆ Q3 2015 2015 2016 2016 2016 2016/2015 Net income 35 43 38 42 36 +1 Amortization / depreciation 28 32 33 31 29 +1 Change in pension accruals -2 0 0 0 -1 +1 Cash flow 61 75 71 73 64 +3 Changes in working capital and other 40 23

  29. Slide 29: Key figures Defence by division (9M 2015/2016)

    Rheinmetall Defence Key figures Defence by division (9M 2015/2016) Weapon a. Munition Electronic Solutions Vehicle Systems +18% +51% +16% +3% Sales 1,625 1,912 720 787 909 477 488 501 >100% >100% Opera- -110% +94% 32 45 tional 10 -3 -1 -1 earnings -11 -16 +2.4pp +6.9pp Opera- -2.2pp +1.9pp tional 1.

  30. Slide 30: Quarterly development Defence

    Rheinmetall Defence Quarterly development Sales Defence Operational earnings Defence in EUR million in EUR million +17% +4% 965 101 77 404 724 662 30 570 19 528 227 16 315 158 270 178 16 25 172 174 150 179 8 25 19 408 361 9 4 296 263 287 4 -58 -63 -57 -2 1 -5 1 -1 -3 -117 -98 -11 -6 -4 -6 -2 -17 Q3

  31. Slide 31: Defence Cash flow statement

    Rheinmetall Defence Cash flow statement in EUR million Q3 Q4 Q1 Q2 Q3 ∆ Q3 2015 2015 2016 2016 2016 2016/2015 Net income 3 67 - 20 3 13 + 10 Amortization / depreciation 21 22 22 22 22 +1 Change in pension accruals 2 3 1 2 1 -1 Cash flow 26 92 3 27 36 + 10 Changes in working capital and other - 25 21

  32. Slide 32: 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

  33. Slide 33: © Rheinmetall AG I November 3, 2016

    © Rheinmetall AG I November 3, 2016 33

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