Hensoldt AG · XETR:HAG
Hensoldt — FY2020 Earnings Presentation
34 slides from Hensoldt's earnings presentation, Feb 24, 2021
Slide 1: FY 2020 Preliminary Results – Analyst & Investor Presentation
HENSOLDT – FY 2020 preliminary results HENSOLDT FY 2020 Preliminary Results – Analyst & Investor Presentation Taufkirchen, 24th of February 2021 Thomas Müller, CEO Axel Salzmann, CFO This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without
Slide 2: Disclaimer
HENSOLDT – FY 2020 preliminary results Disclaimer This presentation and the information contained herein are for information purposes only and should not be treated as investment advice or recommendation. It is not, and nothing in it should be construed as an offer for sale, or as a solicitation of
Slide 3: Business Update
HENSOLDT – FY 2020 preliminary results HENSOLDT Business Update This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 4: HENSOLDT: Strong momentum
HENSOLDT – FY 2020 preliminary results HENSOLDT: Strong momentum Record order backlog €10+ billion order pipeline Strong cash generation, German government of €3.4bn(1) deleveraging to 2.6x intends to become key shareholder with 25.1% stake (1) Order backlog is defined as the value of the order book
Slide 5: We fully delivered on our 2020 guidance
HENSOLDT – FY 2020 preliminary results We fully delivered on our 2020 guidance IPO guidance Delivered on guidance Order backlog(1) on record level at €3.4bn, reflecting a book-to-bill ratio(2) of 2.1x Revenues increased by 8.3% from 2019 to €1,207m Adjusted EBITDA margin(3) at 18.2% Excellent operat
Slide 6: We continue to invest in…
HENSOLDT – FY 2020 preliminary results We continue to invest in… …our people …our technology …our portfolio and footprint …sustainability > 500 new jobs created €87m applied R&D spend(1) in 2020A Tellumat Green electricity High employee satisfaction Increase of 75% since 2017 (Radar, Sou
Slide 7: Financials
HENSOLDT – FY 2020 preliminary results HENSOLDT Financials This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 8: FY 2020 preliminary – step change in top line
HENSOLDT – FY 2020 preliminary results FY 2020 preliminary – step change in top line in €m Biggest order intake in HENSOLDT´s history Sustainable growth Order backlog at record level 3,424 2,541 1,207 1,114 2,202 1,040 FY 2019 FY 2020 preliminary FY 2019 FY 2020 preliminary FY 2019 FY 2020 prelimina
Slide 9: FY 2020 preliminary – further growth in bottom line
HENSOLDT – FY 2020 preliminary results FY 2020 preliminary – further growth in bottom line in €m Sustained profitability Improved cash flow generation 216 219 196 167 161 75 FY 2019 FY 2020 preliminary FY 2019 FY 2020 preliminary FY 2019 FY 2020 preliminary Adj. EBITDA(1) Sustained profitability Adj
Slide 10: Further deleveraging
HENSOLDT – FY 2020 preliminary results Further deleveraging in €m Net debt Net leverage(1) 4.3x 3.1x 2.6x Q4 provided evidence for strong operating cash-flow Net leverage develops positively 923 Successful re-financing after IPO 676 571 Capital costs reduced by 100 bps FY 2019 9M 2020 FY 2020 prelim
Slide 11: Dividend proposal 2020
HENSOLDT – FY 2020 preliminary results Dividend proposal 2020 Guidance outlined Due to the excellent business development, a dividend pro-rata (25%) the management board will propose to the of up to 20% supervisory board and the AGM a dividend per of adjusted net income 2020 share of €0.13 This corr
Slide 12: Guidance 2021 and medium term targets confirmed
HENSOLDT – FY 2020 preliminary results Guidance 2021 and medium term targets confirmed 2021 target 2022 target Medium term target Book-to-bill ratio(1) ~2x >1x >1x Revenue / revenue growth €1.4-1.6bn Mid teens growth Mid to high single digit Excl. pass-through revenues recovery to approx. 2019 level
Slide 13: We walk the talk
HENSOLDT – FY 2020 preliminary results We walk the talk HENSOLDT is on track HENSOLDT fully confirms mid-term guidance for all KPIs and has delivered Further growth in top and bottom line or even exceeded guidance Profitability remains on high level due to efficient project execution in all KPIs
Slide 14: What is next: We execute our business plan
HENSOLDT – FY 2020 preliminary results What is next: We execute our business plan This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 15: Soft order backlog continues to mature
HENSOLDT – FY 2020 preliminary results Soft order backlog continues to mature EF MK 1 Spain Quadriga MKS180 PEGASUS Halcon ~€0.1bn ~€0.4bn, ~€0.2bn, contract ~€1.0bn, ~€0.2bn, contract expected contract booked booked by OEM, flow proposal submitted, contract not yet for 2021 by OEM, flow down down a
Slide 16: European key programs evolving
HENSOLDT – FY 2020 preliminary results European key programs evolving FCAS MAWS MGCS Various contracts in negotiation Continuation of HENSOLDT selected for German share and close to conclusion bi-national feasibility in the Sensor Demonstrator MTD 12, (Demonstrator Phase 1b, study in negotiation sec
Slide 17: Increasing defence electronics content is driving future growth
HENSOLDT – FY 2020 preliminary results Increasing defence electronics content is driving future growth Previous generation Current generation Leopard 2A4 Leopard 2A7+ Indicative systems Acoustics EW Optronics c. 25% c. 45% Radar Comms C2/BM / Avionics Tornado Eurofighter c. 25% c. 40% F122 class F12
Slide 18: European defence electronics demand 2020 to 2025
HENSOLDT – FY 2020 preliminary results European defence electronics demand 2020 to 2025 in €m Finland: CAGR(1) +8.1% 353 239 Denmark: CAGR(1) +12.5% 324 179 UK: CAGR(1) +1.1% 2020 2025 1,856 1,761 2020 2025 Germany: CAGR(1) +2.1% 1,509 1,357 2020 2025 France: CAGR(1) +2.4% 1,816 2020 2025 1,614 2020
Slide 19: HENSOLDT is well positioned to benefit from sustainable growth momentum
HENSOLDT – FY 2020 preliminary results HENSOLDT is well positioned to benefit from sustainable growth momentum in defence industry Focused M&A Continue to push Benefit from the supercycle Further expand strategy targeting leading edge technologies, with tailwind ESG activities bolt-on acquisitions e
Slide 20: Q&A session
HENSOLDT – FY 2020 preliminary results HENSOLDT Q&A session 20 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 21: Financial Section
HENSOLDT – FY 2020 preliminary results HENSOLDT Financial Section 21 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 22: Reconciliation of reported to adjusted pre-tax unlevered FCF
HENSOLDT – FY 2020 preliminary results Reconciliation of reported to adjusted pre-tax unlevered FCF Fiscal Year €m 2020 2019 Cash flows from operating activities 196.9 83.2 Cash flows from investing activities (95.0) (165.6) Free cash flow 102.0 (82.4) (+) Transaction costs 1.1 0.0 (+) Separation co
Slide 23: Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures
HENSOLDT – FY 2020 preliminary results Reconciliation of order intake, segment revenue and adjusted EBITDA to group figures Fiscal Year €m 2020 2019 Order intake 2,541.3 1,040.0 Sensors 2,238.1 657.5 Optronics 308.3 383.3 Elimination/Transversal/Others (5.0) (0.8) €m Revenue 1,206.9 1,114.2 Sensors
Slide 24: Overview of EBITDA and EBIT adjustments
HENSOLDT – FY 2020 preliminary results Overview of EBITDA and EBIT adjustments EBITDA adjustments (€m) EBIT adjustments (€m) 2020 2019 2020 2019 EBIT 68.5 62.1 EBIT 68.5 62.1 (+) Effect on earnings from purchase price allocations 68.6 78.8 (+) Depreciation 41.2 38.1 thereof intangible assets 67.9 78
Slide 25: Key KPIs HENSOLDT Group
HENSOLDT – FY 2020 preliminary results Key KPIs HENSOLDT Group €m 2020 2019 Guidance Q4 2020 Q4 2019 Order backlog(1) 3,424.0 2,202.3 n/a n/a Order intake 2,541.3 1,040.0 - 537.9 378.7 Book-to-bill ratio(2) 2.1 0.9 - 1.1 0.9 Revenue 1,206.9 1,114.2 494.8 439.0 Adjusted EBIT(3) 167.2 160.8 - 100.
Slide 26: Back-up
HENSOLDT – FY 2020 preliminary results HENSOLDT Back-up 26 This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.
Slide 27: A unique high growth defence and security investment proposition
HENSOLDT – FY 2020 preliminary results A unique high growth defence and security investment proposition Focused capability Leadership Strong technology European pure-play €87m 100% Champion(2) Applied R&D sensor solutions leader Pure-play Status with spend(3) in 2020A Sensor 150 yeas of +75% since 2
Slide 28: Acquisition of SAIL LABS – Creating a virtual sensor
HENSOLDT – FY 2020 preliminary results Acquisition of SAIL LABS – Creating a virtual sensor The acquisition Combining OSINT This sensor can detect SAIL LABS forms the HENSOLDT now offers of SAILLABS adds with existing HENSOLDT fake news and nucleus of HENSOLDT both Cyber Intelligence KI-based Open S
Slide 29: HENSOLDT is a “true defence” company with a strong focus on ESG
HENSOLDT – FY 2020 preliminary results HENSOLDT is a “true defence” company with a strong focus on ESG OUR PURPOSE Protect With Our Products We at HENSOLDT exist to pioneer We strive to protect the nations with our sensor solutions technologies and human potential that and electronics portfolio to f
Slide 30: HENSOLDT takes action to foster sustainability
HENSOLDT – FY 2020 preliminary results HENSOLDT takes action to foster sustainability Support of local communities, education and development of our society Diversity and equal opportunities at all levels of the organization (Elevate, Initiative Chefsache) People Personal and career developmen
Slide 31: ESG parameters account for 30% of management’s LTIP
HENSOLDT – FY 2020 preliminary results ESG parameters account for 30% of management’s LTIP Achievements Environmental Targets 2024 Materiality Assessment 2020 according to GRI and SASB • Increase of Renewable Energies up to 70% Holistic sustainability program following multinational frameworks •
Slide 32: IR Contacts
HENSOLDT – FY 2020 preliminary results IR Contacts Contact HENSOLDT share Reports Contact: Type of share: Financial Reports: Veronika Zimmermann Bearer shares https://investors.hensoldt.net Julia Szeszat Stock Exchange: Annual Report: Phone: Frankfurt Stock Exchange https://annualreport.
Slide 33: Upcoming IR events
HENSOLDT – FY 2020 preliminary results Upcoming IR events* FY 2020 Virtual Q1 2021 H1 2021 9M 2021 preliminary AGM Feb 24th May 7th May 18th Aug 4th Nov 10th 2021 2021 2021 2021 2021 * Dates might be subjected to changes 33 This document and its content is the property of HENSOLDT AG. It shall not b
Slide 34: HENSOLDT – FY 2020 preliminary results
HENSOLDT – FY 2020 preliminary results This document and its content is the property of HENSOLDT AG. It shall not be communicated to any third party without the owner’s written consent. © Copyright HENSOLDT 2021. All rights reserved.